Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Coonan, the Minister for Communications, Information Technology and the Arts. I refer the minister to Telstra’s decision to close its call centres in the regional centres of Launceston, Newcastle and Wollongong, causing the loss of over 500 jobs in the process. Can the minister confirm that most of the jobs that remain will be relocated to call centres in Sydney, Melbourne and Perth? What does this say about Telstra’s commitment to regional Australia and the ability of the government to ensure that full privatisation will not lead to job losses and a reduction of services in regional Australia? Does the minister have an obligation to act in response to Telstra’s action? What action has the minister taken?

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

I thank Senator Carol Brown for the question. I am aware that on Tuesday, 5 June 2007 Telstra announced the closure of 13 call centres, including centres in Launceston, Newcastle, Brisbane and Wollongong. I have to place on record that the government is certainly disappointed by Telstra’s decision to close down call centres across Australia, especially in regional areas, which will result in a net loss of around 500 jobs. While unemployment is—thankfully, under the careful management of this government—at a 33-year record low of 4.2 per cent, call centre closures can still have an impact, especially in regional areas. Senator Carol Brown asked me what I had done about it. I have asked Telstra to meet the government this week—

Opposition Senators:

Opposition senators interjecting—

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

I am sorry, Mr President, but obviously nobody is interested in what I am doing with Telstra.

Paul Calvert (President) Share this | Link to this | Hansard source

Order! Senators on my left.

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

Thank you, Mr President. I am very anxious to tell the chamber what I am doing. I have asked Telstra to meet the government this week and also to meet with the federal member for Bass, Mr Michael Ferguson MP, who is very concerned about these matters in his electorate, to discuss this decision, in particular the decision to close the call centre in Launceston.

Telstra is a commercial organisation. It began its long journey to commercialisation when it was corporatised under the Labor government. That in fact was the genesis of Telstra being able to undertake proper management decisions as it saw fit in its own commercial interests. Telstra has been an independent corporation since 1991. I wonder who was in government in 1991. Its board and management are responsible for the day-to-day running of the company’s operations. The government’s role is to establish the legislative framework, which we have done, within which all telecommunications service providers must operate. That does not include dictating to commercial operations on what jobs they must keep and what call centres they must maintain and keep open. What this government has done is to put in place sound economic management that has seen the largest growth in jobs for about 30 years and a situation where people have not only the chance of a real job but also the chance of a full-time job.

So decisions about how Telstra carries on its business, including about call centres and employment numbers, are properly a matter for Telstra. Our role is to require all telecommunications service providers, including Telstra, to comply with their regulatory obligations, including their obligations to consumers for their customer service guarantee and the universal service obligation. The focus is to ensure that consumers are the beneficiaries of new technologies, lower prices and better services. Encouraging competition is one of the very best ways to deliver these consumer benefits. Encouraging competition has benefited all Australians and the overall economy by creating jobs and reducing prices for telecommunications services. I will have conversations with Telstra because it is very important that the impact on people who may have lost their jobs in those regional areas is minimised, and that is what we will do.

George Campbell (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Senator George Campbell interjecting—

Paul Calvert (President) Share this | Link to this | Hansard source

Order! Senator George Campbell, you are repeatedly interjecting, and your colleague has the floor.

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

I ask a supplementary question, Mr President. Is the minister aware that 257 call centre employees in Launceston will lose their jobs next February as a result of Telstra’s callous decision to close their call centre? Does this not fly in the face of the promise by the federal member for Bass, Mr Michael Ferguson, who claimed on 17 August 2005 that ‘the sale of Telstra will not disadvantage Northern Tasmania’? What has the minister done to protect the jobs of the 257 employees who face the axe?

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

Thank you for the supplementary question. If I am not mistaken, the way in which jobs are being created in this economy under the Howard government means that there is in the order of 2,000 new jobs a day being created by the good management of this government. It is regrettable that some job losses are in regional areas, but it is important to understand that—

George Campbell (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Senator George Campbell interjecting—

Paul Calvert (President) Share this | Link to this | Hansard source

Senator George Campbell, you are warned!

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

the government will take whatever steps we can to minimise the impact on those rural jobs. We will be having conversations with Telstra, and I expect that I will have something further to say about that shortly.