Crown contribution for communications cable plan

TOM PULLAR-STRECKER
Last updated 05:00 30/05/2014

Relevant offers

Industries

First look at David Jones department store in Wellington Valleygirl and Temt administrators search for supplier solutions Check out the world first 'un-meltable' ice cream Ryman Healthcare responds to staff pay gripes and increases directors fees Underwater glass lift proposed for Napier's National Aquarium After 15 years the wait is over for new Countdown Waiheke Tesla driver speeding in fatal Autopilot crash Mortgage lending hits record levels as national house prices soar Real estate agent with terminal cancer claims he was cut loose because of illness Safety box cutter called 'health and safety gone mad'

Hawaiki Cable's bid to build a US$300 million (NZ$353m) communications cable linking New Zealand, Australia and the United States has received a further credibility boost.

Communications Minister Amy Adams told the parliamentary commerce select committee yesterday that Crown-owned company Reannz was negotiating a contract with Hawaiki that would see it chip in $15m in upfront funding from government coffers.

The money was first set aside by the Government six years ago to encourage the construction of an alternative to the Southern Cross cable. Reannz's total commitment over the life of any contract could be higher.

"We are working with Hawaiki; there is no secrecy about that," Adams said.

Although there had been disappointments before, such as the failure of Pacific Fibre, which had also been a candidate for the Reannz funding, the Government was tracking on the basis that Hawaiki's cable was proceeding, she told Fairfax Media.

"What we are working through at the moment is the negotiation of a potential contract," she said. "We certainly want to make it clear that if they can make it happen, we will be there."

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content