Michael Forshaw (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Minchin, the Minister for Finance and Administration. I ask: can the minister confirm that he has distributed a question and answer document to coalition MPs directing them to talk up T3? Can the minister confirm that this document instructs MPs to spruik the ‘particularly attractive dividend stream for T3’? Has the minister obtained legal advice on whether these claims are consistent with Australian law governing the provision of financial advice? Is the minister encouraging coalition MPs to break the law? Don’t Australians who have already been misled by the Howard government’s incompetent spruiking of T2 deserve to be protected from dodgy financial advice from ill-informed coalition MPs?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

My usually efficient office has indeed distributed a very good compendium of questions and answers on this very significant and important government policy to proceed with a further sale of Telstra shares. It covers such subjects as why we are selling; the time, price and size of the offer; sale structure; and corporate issues. It is to give background so that coalition members can inform their constituents of the reasons why the government is proceeding with this sale. It goes to the policy positions, the detail of the offer structure and the reasons why the Labor Party’s position on this issue is so negative. The sad thing about Australian politics is that the Labor Party is now such a party of opposition all they can do is oppose everything that this government puts forward. It is the party that says no to everything. It would not have mattered what we announced in relation to Telstra—they would have opposed it.

In relation to the specific question, I can inform the Senate that the document in fact says:

Legally we are not allowed to give investment advice. The decision to invest will be a matter for potential investors to make at the time of any offer based on the information in the prospectus and after consulting their financial advisers.

So I am perfectly satisfied that the appropriate safeguards are included in this very useful document for coalition members, reminding them of the legal constraints on any so-called spruiking of Telstra stock.

Michael Forshaw (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I have a supplementary question, Mr President. I ask: is the minister aware that, contrary to the irresponsible claims in this coalition briefing document, Telstra has only given T3 investors one year’s security on dividend payments? Is the minister also aware that financial experts Moody’s, Standard and Poor’s, and Citibank all agree that it would be unsustainable for Telstra to pay its current level of dividends again in the following year? Why is the minister instructing coalition MPs to again deceive potential small investors in T3 in the same way that the Prime Minister, Mr Howard, deceived the small investors in T2? Will the minister now table the briefing document?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

There is a pretty outrageous premise to that question. Indeed, I would like to draw the Senate’s attention to the outrageous remarks made by Mr Wayne Swan, the shadow Treasurer, who is giving financial advice to investors by saying they should not touch Telstra. If that is not financial advice then what is? He is the one running around saying they should not go anywhere near Telstra. What are they trying to do—talk down the sale? Is that their attitude? They have no regard for the taxpayers in this matter. They ignored taxpayers in 1999. They have already cost taxpayers $50 billion. Now they are trying to drive down the sale price, apparently, at the expense of taxpayers in T3. It is outrageous behaviour and they should tell Mr Swan to butt out of it.