Minchin slams Telstra separation bill
- 11 March, 2010 13:01
- Comments 7
The Opposition has confirmed that it will oppose the passing of the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2009 which would see the break-up of Telstra into separate wholesale and retails businesses.
Speaking in the Senate, Senator Nick Minchin, who is acting as the shadow minister handling the bill and is the former shadow communications minister, said the bill was an "extraordinary attack" on Telstra.
“The opposition will be opposing the bill as it is an extraordinary attack on a substantial publicly-listed company by the Australian Government,” he said.
According to Minchin, the bill would result in “unfettered discretionary powers” given to the communications regulator — the Australian Competition and Consumer Commission (ACCC) — with no regard to procedural fairness or proper recourse for review of its decisions.
Minchin used his speech to accuse the Government of using the bill to cover up its inability to implement its first National Broadband Network (NBN) policy and to effectively cover up flaws in its current NBN, a “slow motion train wreck” of a policy “committed to on the run with no business plan and no cost benefit analysis”.
“Not a single broadband service has been delivered under the guise of the NBN since this government came to office two years ago,” he said. “The NBN has been used to reward mates… the Mike Kaiser situation is a scandal.”
Minchin said the bill, if passed in current form, could potentially result in consumers being worse off and the establishment of another government telecommunications monopoly.
Shareholders would also suffer as the cost to separate Telstra could top $1 billion and take five years, Minchin claimed.
“This extraordinary attack on Telstra is such that the Telstra share price has been so depressed that Optus is now the biggest telecommunications provider in the Australian market by market capitalisation,” he said.
Minchin said that the Opposition would stick to its position on the bill until the Government’s NBN implementation study was released.
“We maintain that major structural change in the industry should not be carried out until the taxpayer-funded $25 million implementation study into the NBN is released,” he said. “We should not be considering this legislation until we get that study and the Government’s response.”
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Comments
jon smith
couldnt run the insulation package ,what hope the nbn
Bob
Minchin and his Neo-Con cohorts are only getting panicky about their Telstra shareholdings losing value.
After all he was a member of the government that sold it of, in some countries they would all be charged with 'Insider Trading'.
KeithC
Ok jon,
The government did make real errors of judgement in the case of the diabolic home insulation scheme, that I am agreed with you!
What is so ironic with this whole (NBN) situation is here we have his high and mighty Senator Minchin championing the cause for poor little Telstra telco! What a joke this whole mess is turning into, it would not surprise me that he is secretly on Telstra payroll as a lobbyist!!
Also, he further delays and keeps moving to block senate debate. The Nationals, spineless as they are, have capitulated to toe the Libs line, where is the fair go for the long suffering Fraudband Slow connection customers in the bush hey Barnaby (Mr Joyce) & Sen Fiona Nash. Also Sen Fielding needs a wake up call before he helps preside over a stronger & increasingly monopolistic telco to the detriment of the small customers, I thought your Party was FAMILY FIRST not BIG CORPORATES FIRST Mr Fielding!!
For a multiple Term previous Lib goverment that procrastinated on connecting us up, we have fallen to be behind countries like Turkey and Asia, at least the NBN is getting on with the job with Tassie lighting up in July and the main backbone going in the ground in the outback, all Mr Alston, Sen Coonan and others got us was tied up in legal stouses and also involving the ACCC & have Telstra ploughed the needed dollars back into the blackspots of the telco region NO NO NO we have seen farmers up here connected to exchanges that have been lightning damaged and the weak Telstra refuses to re run cable, just hands them a Sat Phone, what cr@p when they rake in the billions. They have been gaming the entire system and milking the poor customer for an age, when will this abuse of market dominance stop? It can only stop with COMPETITION, proper COMPETITION not the charade that the Libs left us with.
For goodness sake lets split them and get this country decent broadband services at say 40 to 50 bucks price points per month, for an average connection, FASTER expect to pay a bit more but NOT the SCARE mongering numbers Mr Minchin and his crony mates in the Liberals have been quoting.
Let this Bill pass and get on with the job we elect all you to get done on our behalf, in other words Cut the Cr@p and get on with IT
Keith C
Qld
Mik
Has anyone explored the fact that a senior Telstra executive is the brother of Senator Fielding?
Balwan Rana
Telstra was a goverment company. It is sold to public few ears ago. So what is the point of NBN. Telstra was NBN. Why it was sold.at first place. Why this stupid government is playing with mums and dads money. The current example T3 was sold on $3.60 and now share price is $3.00. It may down drasctly if bill is passed. In other words mum and dad will loose so much money and what they will get in retunr nothing but old tesltra (governemt). This NBM is nothing but to make few friends rich. This whole thing is joke.
D Newman
To Balawan Rana,
Have you considered that Telstra has brought some of this apon itself, are you really going to sit there and in all honesty claim that Telstra is the poor woe begotton victem in all this drama.
I myself am very much torn between the 2 sides.
Side 1 Telstra well known for being very expensive while doing very little or nothing in the plowing back large profits in real long term advancement of infrastructure.
Also some very funky practises that stifle advancement in infrastructure by anyone else.
However people own shares in them, errr hang on dont share holders have some sort of say in the direction of a company.
Side 2, Government, appears to have some sort of amazing agenda for new infrastruture, that I would of only of believed, if the story came out of the USA,s mid west Bible belt or south..
There also appears to be quite alot of smoke and mirrors with the handling of the rollout government side.
As I said I,m torn between the 2 sides, I dont know who to be the most disgusted and distrustfull of, I guess I will settle on the supporting the government however purely for the reason I would actual like to try some of this new thangled internetty broadband, that Telstra has been keeping me from these last 15 years.
As for share holders, buyers beware, you heard the grumblings about the company, and yet you still invested, I myself would not invest in a company that shows a lack of long term planning in infrastruture. You can only flog a horse up to the point of death, beyond that you get no return for your beating efforts.
As for government, need a new party that actual operates in this century, there is a sliding scale on that with the Nationals still wandering around in the 1950,s somewhere being the bottom end.
Sorry for the long rant but both sides of this annoy me, if you couldnt tell, one for years of crappy service and high bills and the other err ok the same reasons actually.
TrueBlue
The government has no business interfering with an individual company in this way. In any other environment this would be seen as blackmail. The Labor government have always wanted to re nationalise the telco industry. In most other countries the type of legislation proposed would be illegal. There is plenty of competition in the market and I might add that know private company was willing to build the NBN as the business case didn't exist and this legislation is necessary so only a few billion of tax payers money is lost not 100's of billions.
I suggest that the 1.4m mums and dads who own Telstra shares vote against the ALP at the next election in disgust. That many voters is more than enough to change the government. Bring on the election on any of the double dissolution triggers the voters can't wait.
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