Senate debates

Tuesday, 15 September 2009

Questions without Notice

Telstra

2:00 pm

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy. Given the minister’s statement as recently as May and the previous statements of the Minister for Finance and Deregulation, Lindsay Tanner, that Labor does not advocate the structural separation of Telstra and that it has never previously been Labor policy, why has the government now decided that it intends to force the breakup of Telstra?

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

I thank Senator Minchin for his question and for his 150th press release since he became shadow minister. There has not been one policy in the 150. It is an auspicious day today—150 press releases and not one single policy!

The historic reforms that the government will introduce today will fundamentally reform existing telecommunications regulations in the interests of Australian consumers and businesses. They will drive future growth, productivity and innovation across all sectors of the economy.

For years, telecommunications companies, industry experts and the regulator have been calling for fundamental reforms in telecommunications. In the past, these tough decisions have been avoided by governments of both persuasions. Regulatory reform is critical for the future of communications in Australia. It should have been done in the past, a fact acknowledged by the former Minister for Communications, Information Technology and the Arts, Senator Coonan, who on 13 May 2008 conceded that, ‘More thought could have gone into a policy that would have separated the network.’ Senator Helen Coonan said that just last year.

Today, we are delivering historic reforms in Australia’s long-term national interest that will address Telstra’s high level of integration to promote greater competition and consumer benefits; streamline and simplify the competition regime to provide more certain and quicker outcomes for telecommunications companies; strengthen consumer safeguards— (Time expired)

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | | Hansard source

Mr President, I ask a supplementary question. Why does the government consider it necessary to force the breakup of Telstra when the government itself has declared that its $43 billion National Broadband Network proposal is supposed to ‘fundamentally transform the competitive dynamics of the Australian telecommunications sector’?

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

The premise of that question fails on two fronts. We are not forcing Telstra to structurally separate; we are putting forward a series of reforms, and Telstra have a choice. They have a choice about the path they want to take: they can sit on their existing assets—the decrepit, dying, old, copper network—or they can move into the future with the new mobile spectrum and the new applications and technologies that will bring. Telstra have the choice about how they want to proceed—

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! When there is silence, we will proceed.

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

The entire premise of the question is based on a false assertion. Telstra have a choice. Telstra are currently engaged in constructive, sensible discussions with the government about the future— (Time expired)

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | | Hansard source

Mr President, I ask a further supplementary question.

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

One moment, Senator Minchin. I cannot hear your question when there is noise on both sides.

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | | Hansard source

Has the government taken into account the security and position of Telstra’s 30,000 employees, its 1.4 million shareholders—who have today lost $2 million as a result of the government’s announcement—and its nine million customers in reaching its decision to force the breakup of Telstra?

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

I am genuinely pleased that the shadow minister wants to talk about the share value of Telstra, because the share value of Telstra on the day that the former minister—now shadow minister—appointed Mr Sol Trujillo to manage Telstra was $5.30. There was $30 billion in value lost at various points due to the management and leadership of those opposite. The share price when Mr Trujillo left the country was $3.30. Two dollars per share—

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! When we have silence on both sides, we will proceed.

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | | Hansard source

The value of Telstra shares fell from $5.30 to $3.30 under the regime promoted, supported and welcomed by Senator Nick Minchin. When Mr Trujillo left the country, who was the one person in the country who said he had done a fantastic job and that we would miss him? Senator Nick Minchin! I did not hear that from Senator Coonan. (Time expired)