Australia hits new Telstra privatization hurdles
{{date|September  4, 2005}}

The [[w:Government of Australia|Australian Government]]'s plan for the full privatization of [[w:Telstra|Telstra]], Australia's dominant telecommunications company, received criticism leveled at the government and company by executives. The government owns 51.8%, with the remaining 48.2% of Telstra stock held by shareholders, having been partially floated in the 1990s.

[[w:Phil Burgess|Phil Burgess]], senior executive, made comments that Telstra was "a loser" hindered by excessive regulations and that he would not recommend purchasing the shares to his mother. The government responded, with [[w:Treasurer of Australia|Treasurer]] [[w:Peter Costello|Peter Costello]] telling the Telstra management to manage the company and leave industry regulation to the government. [[w:Prime Minister of Australia|Prime Minister]] [[w:John Howard|John Howard]] repeated those sentiments, saying Telstra's problem was government ownership over government regulation.

There are plans for introducing legislation next week which will approve the sale of the remainder of the government's share. This is the first time such legislation will have gone through the Senate with the Coalition, consisting of the [[w:Liberal Party of Australia|Liberal]] and [[w:National Party of Australia|National]] parties, controlling both the Senate and the House of Representatives. This may allow the predominantly Liberal-backed proposal to be passed. However, members of the [[w:National Party of Australia|National Party]] have spoken out against full privatisation, citing concerns over the future of less profitable rural services. A major base of support for the National Party is in rural areas.

Two major financial institutions divested their Telstra stock as shares dropped to their lowest point since mid last year.

== Sources ==
*{{source|url=http://www.theaustralian.news.com.au/common/story_page/0,5744,16475274%255E2702,00.html
|title=Telstra shares dumped after bagging by boss
|author=Michael Sainsbury and Robert Clow
|pub=The Australian
|date=September 03, 2005}}

*{{source|url=http://www.theage.com.au/news/Business/Telstra-share-slump-likely-to-continue/2005/09/02/1125302735667.html
|title=Telstra share slump 'likely to continue'
|author={{w|Australian Associated Press|AAP}}
|pub=The Age
|date=September 02, 2005}}

*{{source|url=http://www.theage.com.au/news/National/Coonan-sets-time-for-Telstra-Senate-vote/2005/09/04/1125772393906.html
|title=Coonan sets time for Telstra Senate vote
|author=
|pub=The Age
|date=September 04, 2005}}

*{{source|url=http://news.ft.com/cms/s/4976841c-1b9e-11da-9342-00000e2511c8.html
|title=Telstra executive slams government share sale
|author=Gwen Robinson
|pub=Financial Times
|date=September 02, 2005}}

*{{source|url=http://www.thecouriermail.news.com.au/common/story_page/0,5936,16472540%255E953,00.html
|title=Telstra feud deepens
|author=Mathew Charles, Geraldine Mitchell and Gerard McManus
|pub=The Courier Mail
|date=September 03, 2005}}

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[[Category:Australia]]
[[Category:Politics and conflicts]]
[[Category:Economy and business]]
[[Category:John Howard]]
[[Category:Peter Costello]]
[[Category:Telstra]]
[[Category:Telstra sale]]
[[Category:Liberal Party (Australia)]]
The Australian Government's plan for the full privatization of Telstra, Australia's dominant telecommunications company, received criticism leveled at the government and company by executives. The government owns 51.8%, with the remaining 48.2% of Telstra stock held by shareholders, having been partially floated in the 1990s.

Phil Burgess, senior executive, made comments that Telstra was "a loser" hindered by excessive regulations and that he would not recommend purchasing the shares to his mother. The government responded, with Treasurer Peter Costello telling the Telstra management to manage the company and leave industry regulation to the government. Prime Minister John Howard repeated those sentiments, saying Telstra's problem was government ownership over government regulation.

There are plans for introducing legislation next week which will approve the sale of the remainder of the government's share. This is the first time such legislation will have gone through the Senate with the Coalition, consisting of the Liberal and National parties, controlling both the Senate and the House of Representatives. This may allow the predominantly Liberal-backed proposal to be passed. However, members of the National Party have spoken out against full privatisation, citing concerns over the future of less profitable rural services. A major base of support for the National Party is in rural areas.

Two major financial institutions divested their Telstra stock as shares dropped to their lowest point since mid last year.

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Australia Politics and conflicts Economy and business John Howard Peter Costello Telstra Telstra sale Liberal Party (Australia)