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

I begin by totally rejecting the premise of the question. Investors in T2 were fully informed of the risks associated with and the benefits associated with investing in T2. The prospectus and indeed a letter by John Fahey, the then minister for finance, pointed out all the risks associated with any investment in any company, including this one. That is always the case with prospectuses—there must be a full and comprehensive statement of any risks associated with the particular investment—and that was the case in T2. We again urge investors to make sure they speak to their own financial advisers before they invest in T3. That is clear and, indeed, as I said, that is made very clear in the briefing document for coalition members—they should ensure that any constituents who express an interest in this should be informed that their first port of call should be their own financial advisers to see if an investment in T3 suits their particular investment strategy.

In response to the specific question, I make the point again that the dividend policy of the company is entirely a matter for the board. It is not a matter for the government. It is not possible for the government to have, so-called, tricked up this matter. Dividend policy is entirely a matter for the board. The board has announced that, at least for the next 12 months, the dividend will remain at 28c per share. The company further expressed its acknowledgement that investors in Telstra are keen on the dividend policy of the company—it understands that. But it declined to give a specific guidance in relation to 2008, and obviously investors would need to take account of that.

In the remarks the Prime Minister made, he was referring to the fact that the government, as owner of its shares, is of course entitled to offer them on a basis which it determines. We did then, and we will again, offer our shares on the basis of an instalment receipt process whereby investors can pay a part payment first up, but then they will be entitled to full payment of the dividend. We did that in T2 and we have announced that we will again do that in T3. To the extent that we will be offering the shares to the investing public, as the owner of the shares we will indicate the basis on which we will be seeking to make our shares attractive, and it is perfectly proper for us to inform the market that that instalment policy will prevail. We have also said that there will be an entitlement for existing Telstra shareholders, the details of which will be made clear when we define the offer structure.