Opposition affirms plans to reject Telstra separation
- 09 March, 2010 17:50
- Comments 12
Shadow communications minister, Tony Smith, has reaffirmed the opposition’s plans to vote against the separation of Telstra through legislative reform.
In a press statement, the minister labelled Labor’s plans a “deliberate assault on Telstra, it’s 1.4 million shareholders and 30,000 employees”. He also claimed it illustrated the commercial risks posed by the National Broadband Network (NBN).
“The Coalition has never advocated the forced break-up of Telstra,” he said. “Telstra shareholders have every reason to be outraged by Labor’s plans to force the break-up of the company.”
However, Smith flagged its support for broader telecommunications reform through Parliament.
“The Telecommunications Legislation Amendment [Competition and Consumer Safeguards] Bill 2009 also proposes a range of reforms with respect to the access regime and the competition and consumer landscape,” he stated.
“Whilst there are a number of proposals that would require careful consideration, the Coalition has repeatedly said it supports sensible telecommunications reforms and enhanced consumer safeguards.”
As previously reported in ARN, the Liberal and National parties appeared split over whether separation of Telstra was in the public’s best interests. During the parliamentary sitting into the reforms bill on November 26, Shadow treasurer and National party member, Senator Barnaby Joyce, said he and his colleague, Senator Fiona Nash, continued to hold the view that Telstra should be separated. This contradicted earlier statements by the Liberals that the party would oppose such legislation.
Last week, the Government and Telstra traded fresh blows over separation plans after draft legislation was released on the NBN. In a letter to shareholders, Telstra stated it supported the NBN and ongoing negotiation, but said any forced separation would destroy shareholder value and make any NBN partnership difficult to achieve.
In late February, communications minister, Senator Stephen Conroy, condemned the opposition’s bid to delay the telecommunications bill.
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Comments
Sreve Mount
The concept of opposing the separation of Telstra is, in a business sense in the current environment, the right thing to do. Telstra is now a private company, owned by shareholders, and that includes all properties and physical assets, and so any political interference is not, conceptually, reasonable. Unfortunately, it may be the only logical thing to do. The major blunder was that of the Howard government selling Telstra off in toto. The big item at that time was Howard Government's absolute refusal to separate, becuase they knew very well that most of Telstra's value lay in its network facilities, and hence would garner the huge prize that it did. Now, we are stuck with a situation where a private company owns most of the infrastructure which was once publicly owned, and many of those facilities are, from a common sense point of view, required to be used by other companies. Well done Howard and Co, any of your latter followers are in a no win situation because of your ideology. Remember, Rudd and Co didn't cause the mess, they can only do their best to try and find a sensible way to fix it.
lulzwut!
(1) Separate Telstra.
(2) Wholesale to government.
(3) Build National FTTH network.
(4) Open Source exchanges/ducts/international fibre routes.
Win Win for EVERYONE and not just faggy Telstra shareholders who are too dumb to understand technology and the interweb.
Syd L
Problem is optus should be seperated too, optus stops competiton on thier own network, wont allow customers to use thier isps of choice. Optus tells the customer to pick optus fullstop
Optus will remain a trouble monopoly holder in Australia if its not seperated
P Bele
Yes, Telstra was sold off by the Liberal Gov...........but only after it had been neatly packaged for sale by the previous Keating ALP Government.
Both sides must share the blame, for flogging it off & failing to point out to gullible buyers.... at least for the T1 float..... that the ACCC would be riding shotgun on each and every decision that was made by Telstras management . All in the name of "increasing competion".
With the result that Telstras share-holders have been propping-up SingTel Optus shareholders ever since.
NGO
I'm normally a liberal voter but I agree that separation of Telstra is absolutely essential and the longer that Abbott, Minchin and their cohorts delay the process the less chance they have of regaining popularity. Aussie voters are not stupid and most will agree this issue is a winner for Labor .... forget your ETS's, hospital funding and education spending diversions ...... they all mean nothing if we continue with a Telstra monopolised communications system. I just pray the eventual separation is at the neck and not at the ankles!!
tuffguy
Yes the Rudd government has been left to pick up the pieces of the massive mess created by John Howard in selling Telstra as a monopoly. In Great Britain they had a similar thing and they also split the telco with great success, with the split entity actually emerging stronger. The opposition do not want this separation for one reason - petty politics and the ingrained desire to prevent Labour from succeeding where they failed. They do not care about any ramifications to the entire country, as long as they can stop Labour success. We have seen this all along from Minchin, opposing everything Labour (read Conroy) has attempted to do, particularly with regard to the NBN. The Liberals dithered and dothered for 14 or so years and achieved nothing. Labour stepped in and we are now moving forward big time, much to the dismay and disgust of Minchin and his Liberal cronies.
For the long term good of the country Telstra needs to be split. We too can be like Great Britain and short term losses can become long term gains.
Neil Ottaway
I'm normally a liberal voter but I agree that separation of Telstra is absolutely essential and the longer that Abbott, Minchin and their cohorts delay the process the less chance they have of regaining popularity. Aussie voters are not stupid and most will agree this one issue is a winner for Labor .... forget your ETS's, hospital funding and education spending diversions ...... they all mean nothing if we continue with a Telstra monopolised communications system. I just pray the eventual separation is at the neck and not at the ankles!!
RuKrudding?
"We too can be like Great Britain and short term losses can become long term gains."
The airline is known as Bloody Awful, trains get stuck under the Chunnel when there is a bit of snow, pollies claim the clean out of a moat and horse manure as expenses ... besides, isn't Stephen Conroy from the UK originally?
... please explain what ideas from the UK actually help people, instead of the aristocracy?
Listen to Barnaby Joyce
Nick Minchin should listen to Barnaby Joyce, and the entire communications industry. Even Telstra's David Thodey realises that having rescued his company from the disastrous Mexican experiment, its profitable future lies in retailing world's best communications. Only fibre can handle the peak bandwidth demands of the future, and the only way to get fibre penetration beyond the cities is a national infrastructure project.
British Telecom's separation has been a resounding success for its shareholders, and the same will be true here. The failure to separate Telstra is one of history's great follies, for which both sides of politics must share the blame.
Failure to separate now will see a farcical duplication of trenches to premises at taxpayer expense, like the Optus/Foxtel duplications of the 1990s.
So listen to Barnaby Joyce, please, Nick and Tony, and stop embarrassing all of us rusted-on Liberal voters with paper-thin excuses for all this pettiness.
Richard
I agree that this issue is high on my voting agenda as it is long overdue. But on the other hand if I vote labor I am voting for a ridiculous internet filter and they will claim mandate if we vote them in. What to do?
Blake
This is one thing that I agree with Conjob. Telstra does need to split, it doesn't make sense to allow their tyranny.
Chris
Structural separation of Telstra = stealing billions of $$ from us Telstra shareholders without compensation.
Respect our property rights.
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