Red Alert

Spectrum a treaty right – I don’t think so

Posted by Trevor Mallard on December 23rd, 2009

Back in 2000 I was acting Minister of Communication while Paul Swain was sick. I made it very clear at the time that the Crown did not accept that the radio spectrum was an asset that attracted rights for Maori from the 1840 Treaty of Waitangi. Frankly I thought, and still think, that that concept is nonsense.

We will shift sometime in the next decade from analogue to digital TV. That frees up bandwidth for mobile phone or wireless broadband use. It is worth about $300m.

The idea that we get trapped in the analogue dark ages because of a specious treaty claim has no appeal at all. Nor does the idea that the crown pays out taxpayer funds to settle the claim.


17 Responses to “Spectrum a treaty right – I don’t think so”

  1. kaine T says:

    HA~ this is bigger than a blog post Trevor. There are two things here and at the end of the day I agree generally with where you are coming from… One is that we need to understand the role of the Treaty in its perceived promise of economic, as well as social, partnership and its consequent “rise from obscurity” during a period of economic reform. (This is that whole moving to capitalism from colonialism).

    This transition was carefully managed too as the “Maori Economy” emerged and so there was a necessary shift, I think, in the general interpretation of the Treaty of Waitangi and what it held. Put simply, clever management. “Partnership” doesn’t reside in the Treaty actually, well didn’t until the 1980s (bless the Court of Appeal)… but this concept of Partnership gives rise to the issue of things such as airwaves. And… in partnership of course, the Crown must implicity accept its liability.

    Strange state of affairs though. I like the old “but for” test myself, but for the Treaty would airwaves have been scientifically explored and economically exploited… absolutely. But, that’s not very PC of me.

  2. Spud says:

    Argh Treaty issues what a mine field! I agree with Trevor and also see where you’re coming from.

  3. Kelly says:

    And so the gravy train that is the grievance industry continues. Im sure most of us are happy to right the wrongs of the past…but come one, this is beyond a joke

  4. Monty says:

    Trevor I absolutely agree with you on this one. I have no problem with iwi owning radio spectrum (such as the Hautaki Trust) and this has led to the establishment of 2degrees mobile. I understand this was reserved but Hautaki was required to pay for it. (Correct me if I am wrong)

    The benefits of companies such as 2degrees entering the market means there will be cheaper calls for everyone as real competition gets a foothold. NZ will be held back from the technological gains is one group has preference over anyone else. This is especially the case where the owner does not have the capital and knowledge of how to take advantage of the technology.

  5. Trevor Mallard says:

    From memory there was a $5m grant to get the Hautaki 2degrees lot going. It has taken a very very long time mainly because of a lack of willingness from other Maori Trust stakeholders to put up the cash – although to be fair the incumbents have played their normal tricks to slow sown competition.

  6. Chris L says:

    “The benefits of companies such as 2degrees entering the market means there will be cheaper calls for everyone as real competition gets a foothold. NZ will be held back from the technological gains is one group has preference over anyone else.”

    I’m confused. I understood that capitalists believed that competition facilitated technological innovation? Or is that not the case when the Maori are involved? Because this statement:

    “This is especially the case where the owner does not have the capital and knowledge of how to take advantage of the technology”

    Is flat out racist, and based on no empirical evidence whatsoever.

  7. Draco T Bastard says:

    The benefits of companies such as 2degrees entering the market means there will be cheaper calls for everyone as real competition gets a foothold.

    All competition can do for telecommunications in NZ is push the cost up. All that extra cabling, hardware and labour has to be paid for you know. Prices may come down but that’s only because of the profit maximisation of private business will be slightly reduced.

    Back OT:
    There are many things to day that didn’t exist or simply wasn’t in use in 1840 and so can’t be part of the Treaty as traditional rights. Radio spectrum would be one of them.

  8. Tigger says:

    To say ‘Maori’ are claiming this is specious. Business interests want this and they’re using a mask to grab it. This isn’t about anything other than money. Maori as a whole won’t benefit from this grab. They never do.

  9. Monty says:

    It has nothing to do with Maori involvement – it is NZ as a country that lacks the knowledge and resource to progress a start up company. Maybe you are the racist for thinking that – but do Maori have the technical and capital resources to build a start-up Where is you evidence to suggest they do have the resource? – and if they do then why did it take nearly 10 years to launch what eventually became 2degrees?

    Telecom and Vodafone essentially have also stone-walled and are being obstructive to prevent any additional players entering the market – proof of this is the termination rates of 9 cents per text and 15 cents per minute for phone calls. Break the termination rates and you open up the technology.

    Capitalism does indeed facilitate technology – but of course NZ is way too small to develop the technologies locally – we can only ride of the back of the technological advances developed elsewhere throughout the world.

    Draco – you demonstrate your ignorance. The mobile phone market in NZ is worth about $2.2b per annum. NZ has the highest charge rates in the worked (before 2degrees we were the second highest in the OECD is some categories.) Telecom and Vodafone have been gouging the market. The entry of 2degrees has already significantly reduced the costs of the pre-pay market down as low as 22 cents per minute instead of the 89 cents per minute charged by Telecom and Vodafone – The consumer is the winner.

  10. Kaine T says:

    OMG I agree with Monty. Apart from the fact that there is this thing about the “Partnership” that will also be obstructive and is being so.

  11. Carwyn says:

    Trevor – Could you explain why you don’t think Treaty rights are involved here and what it is about the claim that you think makes it specious?

  12. Alex says:

    What the hell is wrong with you people? The treaty gave Maori British citizenship, it is what THEY wanted for a long time! Maori leaders petitioned for it several times before the treaty was granted and were even rejected several times! In part they wanted the British to come in and protect them from EACH OTHER! Greedy money hungry activists of recent times have tried to obscure that truth but that is exactly what happened.
    Holding the treaty up as the basis for any action at all is racism, to bestow (or withhold) special privileges or ‘rights’ on the basis of what racial group one belongs to is the very definition of racism.
    There will be no end to racism so long as people think what race they belong to is in any way relevant to anything whatsoever.

  13. Potaua says:

    Maybe, but it seems the Government will auction off the digital and I assume the analogue spectrum, mostly to overseas groups like SKY TV, with little being retained locally. For me, at least if some spectrum went to Maori, some would stay local.

    Looks more like a case of nothing for Maori, hundreds of millions to National and ongoing millions to the likes of Rupert Murdoch.

    There are many examples of Maori-owned internet providers, regional tv owners and producers, owning satellite coverage, owning backhaul, so the range of expertise exists.

    And while you may think Maori have no right, well, spectrum is as natural to Aotearoa as the mountains. It was not introduced, it has always been here. The origins of spectrum are unique and natural to the lands, the air and the sky that echo back and forward all around us. The Treaty of Waitangi protected taonga and for me, spectrum is clearly a taonga.

    If the Government sees fit to make millions by selling to international businesses, that’s fine. Don’t, however, expect Maori to say nothing as a massive portion of digital real estate is sold. There are many, many opportunities to develop and innovate and after 6 months of attending meetings, can see many groups are not happy with the auctions.

    Poor regulation is being forced by poor policy, all the while trying to make a few people extremely rich. Spectrum is extremely important to our economy and for our daily lives, especially with DSO looming, so at least Maori are making the point to highlight what is happening right under the nose of the public.

    So, I totally support the case.

  14. Spud says:

    I’d like to see a certain percentage retained for ALL local stations.

  15. Potaua says:

    Same Spud. And not just wholly hocked of to SKY TV & Telecom to control our countrys digital future. Looks like that’s the way the bisbuit is crumbling tho…

  16. Spud says:

    Sigh, you’re probably right. :-(

  17. Jeremy says:

    Unenlightening blog Trevor. It seemed like you were voicing an opinion without giving reasons why you disagreed with the court of appeal (in the link).

    I happen to agree with Potaua. I guess how I look at the ‘but for’ test is this – Do we look at the resources (air) that the governments (tribes) had in 1939. ie the air was there and if ACT was in power they would have taxed us for the use of it, on a user pays basis. Therefore it is a Taonga?
    Or (without going into the rip offs that occurred), is it like sale of a block of land only to find gold or oil underneath (or new tech that makes air rights saleable) where the former owner has relinquished these rights upon sale?

    Please enlighten us as to your reasons Trevor (popular opinion I guess is one)

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