Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

I thank Senator Conroy for the question. Of course it is well known that the Australian government has nominated Mr Geoff Cousins to be a director of the Telstra board. In case it has escaped anyone’s attention, the Australian government is the majority shareholder. Shareholders appoint board members and, as the major shareholder, the government is entitled to do so. There is certainly nothing wrong with a majority shareholder nominating a director. In fact, it is an accepted corporate governance practice in Australia and overseas.

Telstra itself has appointed Mr Bruce Akhurst, Mr David Moffatt, Mr Greg Winn and Mr Gerry Sutton as directors of Foxtel, using its position as a 50 per cent holder of shares in the pay TV company, so to nominate one director on Telstra hardly seems out of course. It is certainly not a stack of the board as some have suggested. The government could have appointed up to five directors, as the Telstra act provides for a maximum number of board members of 13. Instead, the government has elected to appoint only one.

Mr Cousins has exemplary qualifications to undertake the job of director, and no-one could seriously suggest otherwise. He has a very strong business background, with considerable experience in marketing, advertising and telecommunications. For 20 years, he was a senior executive with what was then Australia’s most powerful advertising agency, George Pattersons. He has been a director of PBL and the Seven Network, and he is currently a director of the Insurance Australia Group and the Cure Cancer Australia Foundation. Like all other directors, Mr Cousins will have fiduciary duties to act in the interests of all shareholders. Mr Cousins will, in the judgement of the government, make a valuable, independent contribution to the board. He has duties to the company and will add to its depth through his extensive Australian telecommunications and corporate experience. Shareholders will have an opportunity to have their say on Mr Cousins at the AGM, and that is appropriate.

It is very interesting, when you look at it, if this is the best that Labor can do in trying to criticise the sale of Telstra. The government had a perfect right to nominate Mr Cousins. What is the serious complaint that Labor make about Mr Cousins? If they have one, they should put up or shut up. Mr Cousins has experience which not only qualifies him for the board but complements that of the existing board directors. His experience and background qualifications certainly do not seem to be less than other directors on the board. He has a lot to add to the process of the float of T3, to the proper functioning of Telstra and to the transformation plan announced by Mr Trujillo at the briefing on Friday. It is nothing but carping and criticism for criticism’s sake to be criticising the appointment of a director who on any view passes muster.