Brash report doubts broadband plan

The 2025 task force, headed by Don Brash, has called for the Government's $1.5 billion investment in ultrafast broadband to be put on hold until it has been fully scrutinised.

The task force said in its controversial report that while broadband would create many opportunities, the case for government involvement was "much less apparent", likening the ultrafast broadband scheme to a "Think Big" project.

"We think the public has a right to see a much more compelling case articulated and tested."

The task force said governments had a poor track record picking sectors to back and voiced concern that ministers would be directly involved in picking companies that partnered with the Crown to lay fibre-optic cable.

The ongoing involvement of ministers in big decisions made by broadband investment vehicle Crown Fibre Holdings was not consistent with best practice, it said.

Telecommunications Users Association chief executive Ernie Newman said it was sad the task force seemed to want to hold back the tide of the digital age.

"The economic and social benefits of `general purpose' technologies such as railroads, electricity and broadband are impossible to quantify precisely in advance.

"Reticulation of electricity would never have come about if society had waited until somebody first invented the microwave oven, air conditioner and electric toothbrush."

The Institution of Professional Engineers criticised the report, saying its recommendations were all "internally-focussed" and about the Government's spending.

- © Fairfax NZ News