Williamson rounds off week by cutting red tape

Maurice Williamson's sudden drive to facilitate competition in the telecommunications market continued yesterday with the announcement that he would cut red tape - and save $10,000 a year - for some companies providing international service.

Maurice Williamson's sudden drive to facilitate competition in the telecommunications market continued yesterday with the announcement that he would cut red tape - and save money - for some companies.

"We've decided to repeal regulations requiring companies providing certain international telecommunications services to be registered with the Ministry of Commerce at a cost of $10,000 a year," said Williamson.

"They were introduced in 1989 to reduce the risk of international monopoly companies taking advantage of the open New Zealand market, to the detriment of New Zealand consumers. This was because an overseas monopoly company may only accept incoming calls from the highest bidder among New Zealand companies, which would inflate the price to consumers.

"But now with the liberalisation of Australian, North American and European markets as well as the thriving competition in this country, the regulations are no longer needed."

Williamson said this competition had significantly reduced the cost of New Zealanders making international toll calls in recent years and repealing the regulations would reduce the red tape and added costs on telecommunications companies.

"Although the chances of overseas monopoly suppliers being able to harm New Zealand users is now extremely remote, the Government will retain the regulation making power under the Telecommunications Act, in the unlikely event it is needed in the future," said Williamson.

The regulations will be repealed when the necessary amendment to the Telecommunications Act 1987 has been passed. Until this has been completed, operators must continue to register, but the $10,000 re-registration fee will be removed from July 1 1999.

Join the newsletter!

Error: Please check your email address.
Show Comments

Market Place

[]