WELLINGTON - Regulation of Telecom has been flagged as a high priority for the Alliance if it forms part of the new Government.
Its leader, Jim Anderton, and commerce spokeswoman, Laila Harre, yesterday targeted Telecom when they released Alliance's commerce and telecommunications, and information technology policies.
The Alliance wants to strengthen the
Commerce Act, giving the Commerce Commission more power to prevent anti-competitive behaviour.
"This legislation could be introduced immediately the Government comes back after Christmas if we get agreement on it," Mr Anderton said, indicating the Alliance would take "a very strong position" on regulation into post-election meetings with Labour. The Minister of Communications, Maurice Williamson, said heavy regulation would stifle investment and end benefits such as a 60 per cent reduction in toll call prices since 1991.
Telecom makes up 26.7 per cent of the total value of companies listed on the New Zealand Stock Exchange.
Worth $13.8 billion, it contributes about a third of the value of the NZSE40, and is highly significant to its performance.
After yesterday's announcement Telecom shares were selling at $8.17, up 12 points from Monday.
Ms Harre rejected a suggestion that the Alliance could now face an election week backlash.
"What is dangerous is for New Zealanders to keep paying a hell of a lot more for our telephones than we should be paying."
Monopoly profits equated to excess Telecom charges of $103 a year for residential customers, $10,140 annually for a medium-sized business, and $253,000 for a major corporation, Ms Harre said.
The Alliance estimated that if Telecom reduced its charges by these amounts, up to 0.6 per cent could be wiped off consumers price index inflation.
Labour policy has a more light-handed approach to ensuring competition rules are firm and fair. It would order an inquiry into the telecommunications sector if elected.
Mr Anderton said there was no need for a review.
"You don't need to think too long and hard about this, it's so obvious you just get on and do it."
- NZPA
