Dear Sam,

Thank you for your request under the Official Information Act 1982, which was received on 8 January 2026. A response will be provided in accordance with the Act. Please note, over the holiday period from 25 December 2025 to 15 January 2026, inclusive, there is a three-week period that doesn’t count as ‘working days’. Any OIA requests submitted on 27 November 2025 or later may take a bit longer than you expect.

The Treasury may publish the response to your Official Information Act (OIA) request. When you are provided with a response to this request, you will be informed about whether the response to your OIA request will be published. If the Treasury does publish the response to your OIA request, personal information, including your name and contact details, will be removed. This publication process does not apply to extension letters or transfers.

Ngâ mihi
Sophie
Ministerial Advisory Service | Te Tai Ôhanga The Treasury 
treasury.govt.nz | LinkedIn | Youtube 
[IN-CONFIDENCE]
                                                       
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a. please immediately delete this email and notify the Treasury by return email or telephone (64 4 472 2733);
b. any use, dissemination or copying of this email is strictly prohibited and may be unlawful.

-----Original Message-----
From: Sam Brown <[FOI #33464 email]>
Sent: Thursday, 8 January 2026 6:28 pm
To: Ministerial Services Inbox [TSY] <[The Treasury request email]>
Subject: Official Information request - Fiscal analysis of rural connectivity approaches and long-term cost implications

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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Kia ora Sam,

 

Please find attached a reply to your OIA request. Please note that this
response has been signed out via an electronic process, rather than a
physical signature.

 

Ngā mihi

Sophie

Ministerial Advisory Service | Te Tai Ōhanga The Treasury 

[1]treasury.govt.nz | [2]LinkedIn | [3]Youtube 

 

 

[IN-CONFIDENCE]

                                                       

CONFIDENTIALITY NOTICE

The information in this email is confidential to the Treasury, intended
only for the addressee(s), and may also be legally privileged. If you are
not an intended addressee:

a. please immediately delete this email and notify the Treasury by return
email or telephone (64 4 472 2733);

b. any use, dissemination or copying of this email is strictly prohibited
and may be unlawful.

 

 

References

Visible links
1. https://treasury.govt.nz/
2. https://www.linkedin.com/company/576138/
3. https://www.youtube.com/@nztreasury/vide...

Kia ora Sam Brown,
 
On behalf of the Ministry of Business, Innovation and Employment I
acknowledge your email of 08/01/2026 sent to the Treasury requesting,
under the Official Information Act 1982, the following:
 
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.
 

Your request has been transferred to the Ministry of Business, Innovation
and Employment from the Treasury on 28/01/2026 and is being processed in
accordance with the Official Information Act 1982. 

 

We will endeavour to respond to your request as soon as possible, and no
later than 26/02/2026, being 20 working days after the day your request
was received. If we are unable to respond to your request by then, we will
notify you of an extension of that timeframe. If you have any enquiries
regarding your request, feel free to contact us via email to
[1][email address].

 
Nāku noa, nā
Ministerial Services
Strategy and Assurance
Ministry of Business, Innovation & Employment
15 Stout Street, Wellington 6011 |PO Box 1473 Wellington 6140

References

Visible links
1. mailto:[email address]