Gov't grant to help create new consumer telecoms body

Stuart Corner
Monday, 23 June 2008 10:27

IT Policy - Government Tech Policy

Section 593 of the Telecommunications Act gives the minister discretion to fund organisations that represent the telecommunications interests of consumers.

"We have to put a proposal to the minister by 31 July and hopefully he will support this and propose funding in the May 2009 Budget," Corbin said. However she said there were many hurdles to be overcome. "It will only go ahead if we get ministerial support, and Cabinet support and grass-roots support: a lot of organisations are holding back to see how the proposal pans out."

She added: "I think they will all support it if it makes things more streamlined...But it is going to take a significant amount of work to get up this new body and to make it effective. And after that it needs to be funded properly."

She said the new body had the potential to absorb CTN. "That is some of the legal advice we are seeking at the moment...However our board and our members would only agree to that happening if they end up with something better...If it does not get better resourced it is going to be pretty hard to sell it to consumer groups.

It is envisaged that the new body would take over disbursement of grants provided under Section 593 of the Telecoms Act to the current recipient organisations. Currently, about $800,000 per year is distributed among about a dozen organisations. It is in year three of a four year programme.