Telecom funding decision breached accord, says Hide

Rodney Hide

The National Government has backtracked on its commitment last year to principles of "responsible" regulation which the Act Party is attempting to get enshrined in law, says Act Leader Rodney Hide.

Mr Hide last week said Communications Minister Steven Joyce's decision to fund the roll-out of high-speed broadband in rural areas by redirecting tens of millions of dollars Telecom received from its rivals under the Telecommunications Services Obligations (TSO) impaired Telecom's "de facto" property rights.

The protection of property rights is a significant strand in Act MP Sir Roger Douglas's Regulatory Responsibility members bill due to be considered by Parliament next month.

Last week Mr Hide said Act did not have National's support for the bill but was "very confident we'll get it". Critics argue it is constitutionally risky as it might serve to constrain Government from making laws that might affect property rights even if that law is deemed to be in the national interest. Mr Hide said the bill was misunderstood and only sought to ensure laws were transparently measured against a set of "regulatory responsibility" principles.

The bill would not have prevented Mr Joyce from making his call on Telecom and the TSO last week but he would have been obliged to concede that he was breaching Telecom's property rights and why that was in the national interest.

Mr Hide said Government had agreed "to bind themselves by these principles at cabinet" last year but had breached them with the TSO decision. In spite of this it was the Government's agreement to abide by these principles that gave Mr Hide confidence National would support Sir Roger's bill.