Call to probe regulator’s axeing
Labour communications spokeswoman Clare Curran has claimed the Government’s decision not to reappoint Ross Patterson as Telecommunications Commissioner may be illegal and has asked the auditor-general to investigate.
Communications Minister Amy Adams announced this morning that Stephen Gale had been appointed to the role for a five-year term, starting next Thursday, on her recommendation.
That was on the advice of an ‘‘independent panel’’ which had considered 43 other candidates, including Patterson, who had sought a second five-year term.
Curran said the advertisement for the position contained errors that wrongly described the regulator’s role as applying the statutory regime that existed in 2006 when the operational separation of Telecom was in force.
The 2006 regulatory regime has since been superseded by changes to the Tele- communications Act and the structural separation of Telecom.
‘‘The Government had clearly signalled it wanted to get rid of Patterson who has maintained a strong independent role as the watchdog for the important telco industry,’’ Curran said. ‘‘It is my understanding that the appointment of his successor may have breached public sector requirements, specifically around the appointment process and description of the appointment.’’
Curran said the Government had a conflict of interest with regard to the appointment as it was investing $1.35 billion in ultrafast broadband. ‘‘It is of major concern if the new direction taken by the telecommunications commissioner role is to focus on the interests of investors, rather than consumers,’’ she said.
Gale has been an associate member of the commission for two years and sat on its telecommunications division since February.
Adams said he impressed the panel with his ‘‘wide range of experience in regulated industries and his ability to articulate the role of the regulator to promote the interests of consumers through encouraging competition and ensuring that investors have the incentives to invest over the long-term’’.
‘‘He has an excellent understanding of the issues faced by the telecommunications industry and the various approaches taken by other countries in regulating their telecommunications markets.’’
Before joining the commission, Gale was a director of consultancy Castalia.
He was with the New Zealand Institute of Economic Research from 1986 to 2003 and was with the Energy Ministry before that.
He holds a doctorate in physics from Cambridge University.