Don Randall (Canning, Liberal Party, Shadow Parliamentary Secretary for Energy and Resources) Share this | Link to this | Hansard source

I wish to raise the issue of broadband and Telstra. Improving broadband access is high on my list of priorities, and this is an issue over which Telstra and I have had a tortured past. While there have been some successes, there still remain several black spots throughout Canning, largely because of the diversity in the geography and topography. Just to give you an idea of what an issue it is in my area, it is fair to say that it is probably the primary issue that people contact my office about. I will continue to fight for better coverage and a better deal. As I have said previously, I will support any arrangements that result in better service and better coverage in my electorate. The Rudd government must outline what they are going to deliver and when. Canning residents do not deserve to be left behind in internet technology.

Most recently I have raised with Telstra the lack of ADSL availability in Seville Grove, which by the way is in a metropolitan area. It is hard to believe in this day and age that metropolitan areas have black spots. Despite it being a highly populated and growing outer metropolitan area, it is a black spot. Canning Vale is also an area with a number of concerns that my constituents have brought to my attention. They are unable to access ADSL, while their neighbours can. This is also in the metropolitan area. Pair-gain lines remain problematic and dial-up services in metropolitan areas in this day and age seem quite ridiculous. In the more regional areas of Canning, service in parts of Mundijong, Keysbrook, Serpentine, Pinjarra and Halls Head are extremely patchy.

When I recently contacted Telstra with a range of queries about local services, I was met with the response that improvements in the area are unlikely in the near future. Telstra advised:

With respect to ADSL availability it is unlikely that any further upgrades to pair gains and or RIMS will take place in the near future. As you know the Commonwealth Government has requested responses from companies to the National Broadband Network and the RFP [Section 11.1/ includes a ‘gag’ order that prohibits bidders from making public statements about the RFP or the process.]

So it was a bit of a cop-out. While Telstra are complying with government orders, this is of no comfort to my constituents whose services, if any, are just not up to scratch. If only they would put Jeff Booth in charge I am sure we would have a more proactive approach, because he is the only one in Telstra that I have seen deliver at any time.

The recent resignation of Telstra’s public policy manager, Dr Phil Burgess, has come as no surprise to me. One of CEO Sol Trujillo’s ugly amigos has flown the coop. However, I understand that Dr Burgess will be retained as a consultant to Telstra and as a personal adviser to Mr Trujillo—no doubt at some higher price—and will take the time to write a book about his three years at Telstra. That’s it: he has trashed Telstra, grabbed his money, and run home to the good old USA.

I have spoken before about the long list of US executives imported by Trujillo. It is extensive—and expensive, I would imagine—and includes operations boss Greg Winn. Mr Trujillo came here with a five-year plan to cut costs, improve performance and introduce new technology. That is good in theory, but I remain critical of the results he has achieved in his time.

Telstra has just recently announced that it will axe some 800 jobs in Sydney, Melbourne and Brisbane as a result of a restructure. In 2005, Mr Trujillo committed to axing 12,000 jobs by 2010. Telstra has already cut more than 9,000 jobs. It may be good for Telstra’s shareholders but is certainly not for the workers. People who are losing their jobs would find it hard to take that the big boss took home in excess of $13 million last year, plus cash bonuses and share options. Even Greg Winn took home $11 million last year.

Last month the company announced a $3.6 billion annual profit. Despite profit being up by 13.5 per cent, mum and dad investors are not being rewarded. Dividends are stagnant, as are share prices. For example, today the share price of Telstra was $4.31—it had hardly shifted. Meanwhile, Telstra’s shareholders continue to foot the bill for Mr Trujillo’s overseas travel budget, including private jets, first class fares and lavish accommodation with all the extras. And don’t forget the Telstra executives road show tour, which cost more than $1.7 million plus expenses. Trujillo is a well-known supporter of and large financial donor to John McCain’s US presidential campaign. The Sydney Morning Herald suspects that a number of his amigos are also financing this campaign. (Time expired)