Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Hansard source

I thank the minister for referring that to ASIC—and the ASX if necessary, I am sure. I also make the point that there was a significant surge in the Telstra share price today on the basis of a one-page statement from Telstra that it has signed a non-binding financial heads of agreement on the NBN. I express the concern that, from a common perspective, it could reflect poorly on our reputation as a well-managed market, which we are. Our equities market is well managed, but I do express a concern that, on the basis of a non-binding agreement that Telstra itself says is subject to the passage of legislation and ACCC approval, there is a significant surge in the share price of Telstra.

I ask the minister whether it would be deemed appropriate for Telstra to provide more information to the market and, obviously, their shareholders about the terms of the financial heads of agreement so that there is actually something substantive that is the basis for the increase in the share price. I note that there was a reported statement, I think in the Australian Financial Review today, that suggested that this deal would add 90c to the value of Telstra shares, which is almost a third of the value. If this were a penny dreadful stock you would say, ‘That’s speculative.’ But, given that it is one of the largest companies in Australia, with, I am sure, the largest number of mum and dad shareholders, surely there should be more information provided by the company to the market than simply a one-page statement saying that there is a non-binding heads of agreement—and the share price surges?

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