Fiscal analysis of rural connectivity approaches and long-term cost implications

Sam Brown made this Official Information request to The Treasury

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From: Sam Brown

Dear Treasury,

Under the Official Information Act 1982, I request:

1. Any fiscal analysis, cost projections, or advice to Ministers comparing long-term Crown expenditure under different rural connectivity approaches, including:
- Ongoing service subsidies (e.g., satellite internet subsidies paid annually or per-connection)
- One-time infrastructure capital investment (e.g., terrestrial network deployment)
- Net present value calculations over 10, 20, and 30-year timeframes for different connectivity models

2. Any assessment of total Crown fiscal exposure for rural connectivity, including:
- Direct subsidies or payments to connectivity providers
- Tax expenditures or indirect support mechanisms
- Contingent liabilities or ongoing commitments
- Whether current approaches create long-term fiscal dependencies versus time-limited investments

3. Any analysis of economic multiplier effects or regional economic impacts comparing:
- Infrastructure investment that creates construction employment and retains technical capability in New Zealand
- Service subsidies paid to providers with limited New Zealand employment or local economic benefit
- Impact on regional GDP, skills retention, and business capability development

4. Any advice to Ministers regarding whether current rural connectivity funding approaches represent value for money when assessed over infrastructure lifecycle timeframes rather than single budget cycles.

5. Any assessment of fiscal risks associated with policy approaches that may result in:
- Dependence on single provider for essential connectivity services
- Reduced competition, limiting Crown's negotiating position for future service arrangements
- Need for increased future expenditure if initial policy approach proves inadequate or unsustainable

I understand that some advice may be withheld under s9(2)(f)(iv) (free and frank advice), but request that factual analysis, cost projections, and comparative assessments be released as these serve clear public interest in understanding value for money in public expenditure.

Context: I am seeking to understand whether long-term fiscal implications of different rural connectivity approaches have been rigorously assessed, particularly whether ongoing service subsidies versus infrastructure investment have been compared on a lifecycle cost basis.

Yours faithfully,

Sam Brown

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