Bruce Parkes was the man at the centre of anti-competitive allegations against Telecom which saw the company fined $12 million in the High Court at Auckland yesterday.
Parkes is now in charge of rolling out the ultra fast broadband network.
Labour's Clare Curran says there's a serious conflict of interest and telcos vying for the broadband contract are worried about anti-competitive behaviour once the contract is let.
Once that's done, Curran says the Commerce Commission will not be able to investigate the successful bidder for eight-and-a-half years.
The Commerce Commission brought the anti-competitive charge against Telecom.
Curran said Parkes should immediately stand aside and even the Minister who appointed him should now be thinking about whether he should continue to oversee broadband.
Communications Minister Steven Joyce refused to be interviewed but did say Cabinet will make the final broadband decision and not officials.
[Moderator edit (MF): moved to correct forum]