TRANSCRIPT
THE HON PETER COSTELLO MP
Treasurer

Doorstop
Melbourne
Tuesday, 16 July 2002
9.00 am

SUBJECTS: Telstra

JOURNALIST:

Mr Downer what is your…

TREASURER:

My name is not Downer.

JOURNALIST:

Oh, Mister…I beg your pardon, Mr Costello, debt reduction…

TREASURER:

First question of the day. What is your name?

JOURNALIST:

Sorry about that.

TREASURER:

That is all right.

JOURNALIST:

What is more important, debt reduction or improving services to the bush if

the Telstra gets the full sale?

TREASURER:

Well, we are going to improve services that Telstra provides, and after we

have done that, then we will be in a position to offer further equity. So we

will be doing the improving of services first.

JOURNALIST:

Do you think you have got a battle on your hands with the National Party, be

it you know, full sale of Telstra proceeds go to debt reduction or infrastructure?

TREASURER:

No, I think as you have seen recently, comments from senior National Party

figures that they believe that services have improved quite dramatically in

the bush and in regional Australia. We will have an assessment of that, and

after we have an assessment of that, we will be able to offer further equity

in relation to Telstra.

JOURNALIST:

Do you have a firm benchmark on how you are going to do that assessment?

TREASURER:

We haven’t announced how to do that yet. But I imagine it would be some kind

of independent review would have a look at whether services have been improved.

I think services have improved quite substantially over the last year or so.

I think that is acknowledged. We have to have a review to make sure that services

are up to the standard that we want, and then we can offer further equity. But

the point about Telstra is this, that it is half private owned, half Government

owned. It is in no-mans land. It has to have its status resolved one way or

the other. The rest of the world believes that you can have private telecommunications

companies. That is the way they do it in the United States and in Britain and

in Europe. But if you don’t believe that, if you believe that it should be nationalised

like North Korea or the Australian Labor Party, go the other way. But don’t

leave it in no-mans land. That is what I say.

JOURNALIST:

Do you think the mixed signals from the Democrats might leave some opening

there to win them over?

TREASURER:

Look, what I would say to the Democrats is this. Think about the long term

future for Australia. We know what short term political opportunism would say,

but think about the long term, think about where Australia wants to be, how

we are going to resolve all of this. And I would say to the Democrats, you know,

to open their minds to look at the future and the possibilities and don’t stifle

dissent. I think individual Democrats should feel that they have got the freedom

to speak out in the national interest on this particular issue and that would

be my message to them. Thanks.