PM lays into Telecom over broadband

Prime Minister Helen Clark has warned Telecom the Government is still unhappy about the price of high-speed internet access.

Helen Clark's opening statement of the Parliamentary year lays out the Government's agenda while highlighting the good news and attacking the opposition.

This year the speech had an emphasis on the economy and the need to increase competitiveness as New Zealand faced an economic slowdown.

She said "new initiatives" were needed to get faster internet access at more competitive prices.

Current broadband services were too expensive, slow and contained restrictive caps on how much data could be downloaded.

Telecom recently announced cheaper and faster services as it once again tried to stave off regulation over its virtual monopoly on local phone services.

Helen Clark acknowledged the moves, but continued to wave a big stick at the former state-owned enterprise.

"While recent announcements of price reductions and other changes are welcome, the Government will be addressing the relevant policy, legislative and regulatory settings as a matter of urgency," Helen Clark said.

She also said the Government was "looking to boost" spending on science and research and "refocus" economic development spending.

The Government has already been signalling a wide ranging review of business tax and regulatory frameworks.

Helen Clark said the New Zealand economy had been doing well under six years of a Labour-led Government and would manage its way through the coming "dip".

National had refused to debate the economy during the election campaign last September and despite nothing changing since then had now changed track.

"They've decided to run the economy down, claim it's weak and pray for a recession," Helen Clark said.

The PM said critical decisions on Auckland infrastructural problems had to be made to ensure the city had an adequate and secure power supply.

Spending on roads for New Zealand's biggest city was also critical.

"This will be challenging given that high oil prices have reduced fuel consumption, and therefore reduced revenue from fuel tax," Miss Clark said.

"As well, the pressure on construction capacity has been escalating costs."

The Government would look at ways to reduce oil dependence and make progress on broader climate change policy.

Trade talks would continue at the international multilateral level as well as with individual countries such as China and Malaysia to open up new markets and reduce trade barriers.

Helen Clark's speech highlighted positive progress in creating more jobs, as well as New Zealand's sporting and cultural successes.

"New Zealand in 2006 is in many ways a work in progress. Our country is on a journey -- away from the old economy to a new one," Helen Clark said.

"Our government's task is to provide leadership and sound policy to support that journey."

- NZPA