National’s $1.5 billion broadband plan

RADIO NEW ZEALAND: National leader John Key says the party will invest $1.5 billion in broadband services over six years if elected to government.

Mr Key told the Wellington Chamber of Commerce that investment was needed to increase economic growth and lift incomes.

Mr Key says National wants to see a fibre-optic connection to almost every home.

The initial goal would be the introduction of fibre-optic cabling to 75% of households, with priority given to business in the first six years.

Mr Key, who acknowledges that private operators have been reluctant to invest in infrastructure, says the plan does not let Telecom and its competitors off the hook. Investment commitments already made must be honoured, he says.

Mr Key says deputy leader Bill English is "highly supportive" of the plan, despite his comments last year that he did not support such a move because it risked crowding out private sector investment.

Mr English went on to say that National would regard such investment as a "last-ditch measure".

Mr Key says Mr English is now fully on board.

The Government describes the plan as "back to the future", saying it will result in Telecom once again having a monopoly.

Communications Minister David Cunliffe says it would be to the detriment of broadband consumers, but National says it would work with all market players to ensure that does not happen, and would use regulation if necessary.