Steve Gibbons (Bendigo, Australian Labor Party) Share this | Hansard source

Let there be no doubt that the political interests of the Howard government are dictating the agenda on the Telstra sale decision based on the short-term political gain for the government rather than the national interests of Australia. The Howard government’s T3 sale is already putting downward pressure on share prices, as institutions have sold existing shares to enable them to buy in at cheaper rates in the T3 offer. The government has loaded the sale with the sweetener of a full dividend even when you have only paid for part of the share. But, once that runs out and the Future Fund is allowed to sell its shares, the pressures on share prices will be enormous.

The timing of the sale could not be worse, even under the Howard government’s poor record: fibre rollout stalled and regulatory conflict went unresolved—in fact, Telstra’s Phil Burgess had the audacity to tell a meeting in Bendigo recently that the Australian telecommunications regulations are holding back the country’s economic progress. Telstra’s current American-styled national leadership have to understand that the American way of running big corporations is just not applicable to our culture. The regulations in place are there in Australia’s national interest on behalf of Australian consumers, something that Mr Trujillo and Mr Burgess do not and will not understand. And, of course, adding to the appalling timing of the T3 sale, we have the share price falling.

The Howard government would have us believe that a conflict of interest exists under the current arrangements. What absolute rubbish. The government still owns and regulates the ABC and Australia Post. It will still own one-third of Telstra, so there will still be an alleged conflict; and the Future Fund legislation, specifically sections 6 and 8, allows it to direct the fund regarding its Telstra shareholding, including to act non-commercially.

The government would also have us believe that it is Labor’s fault that we are in this situation. If all of Telstra had been sold at $7.40 in 1999, as per the Howard government’s preferred position, shareholders would have been in a far worse situation. The government cannot blame Labor for its incompetence in allowing Telstra to lose billions in Asia, chase Fairfax and Channel 9, and jack up line rentals to $30.00. This is a politically driven fire sale that hurts shareholders, taxpayers, consumers and Telstra staff. It is a shambles and it is being done to suit the Prime Minister’s political interests.

Whilst Telstra appears to be concentrating its efforts in the capital cities, it has failed to adequately provide broadband services across all metropolitan areas. Even with existing facilities attempting to provide reliable, efficient and cost-effective services from regional areas, there is an increasing push to centralise and so remove the benefits of regional employment from the bush. The move to full private ownership would effectively stop any future government with genuine concerns for the bush having any say in how services are delivered. ‘Commercial viability’ will always be available to protect all telecommunications companies from their responsibility to the Australian people.

Labor is committed to maintaining a strong influence on telecommunications to ensure the needs of country people are met and to keep Telstra connected to regional Australia’s future. Most regional Australians slammed the proposed $3.1 billion Telstra deal announced in September 2005, designed to sweeten the Nationals to guarantee the telco is fully privatised.

The decision to press on with the sale through this bill represented a ‘dirty deal done dirt cheap’, and the National Party stands condemned for agreeing to it. In fact, I stand in awe of National Party ministers especially, and backbenchers, when they defend the full sale of Telstra. It is a courageous act for them because I know just how unpopular the sale of Telstra is in their own electorates. As I have said before, the Nationals continue to remind me of a flock of frightened and bewildered sheep being kept in a small and tight bunch by the Liberal dogs running around them, barking and snapping at their heels. Every now and then, one of these frightened and bewildered sheep gets spooked and hares off in the other direction—this sheep’s name is ‘Barnaby’—only to be run down and turned around by the Liberal Party dogs, usually ‘Heffo’, the blue-blooded heeler, and of course always followed by ‘Cossie’ the cowardly cocker spaniel, who aspires to lead the pack but is always let down by his inaudible bark and the fact that he has no teeth, hence his timid and almost non-existent bite.

The Nationals have never been anything but sheep in wolves’ clothing. When they are in their electorates they growl like wolves as though they are going to bare their fangs and rip into anyone who laid a hand on the country. Then, from 1996 they signed up as the country branch of the Howard Liberal government, dropping the pretence of being wolves and now they just bleat like sheep. The Howard government has stated repeatedly that it would not sell its remaining shares in Telstra until services in rural and regional Australia were up to scratch.

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