The New Zealand government's plan to upgrade the country's predominantly slow Internet service is facing some difficulty after accountants established the fact that the main contractor has come across some financial problems.

However, Prime Minister John Key said that the schedule for the ultra-fast broadband rollout will not be changed, despite a report saying Chorus is not delivering on its contracts.

He added, "I think the Government's given a very clear signal today that we expect ultra-fast broadband to be completed on the timeframe that we earlier indicated because we believe that the economic and social benefits for New Zealand are significant.''

Amy Adams, the Communications Minister mentioned this morning that she has received an initial report from consultants Ernst & Young Australia about, if it would be possible for Chorus to deliver on its broadband contracts.

Adams said the government remains steadfast to its plans and she wishes the agency overseeing the work can amend existing Chorus contracts without burdening the taxpayers more money or delaying the rollout.

She said that options include paying Chorus earlier and changing some technical specifications of the cable network.

"At this stage, I'm hopefully optimistic that they will find a way through, but that's for them to now work through and come back to us once they have the final and full numbers," Adams said.