The Federal Government has not made out any case to support its aim to sell Telstra. It has no case and that is reflected in the opinion polls.

Over 70% of Australian people oppose the sale and over 80% of the people in country and regional areas.

The federal Government still has problems with Barnaby Joyce and the Nationals because the Nationals are terrified of the people's opposition to the sale.

The federal Government still has problems with the depressed share price and they just took decisions to split Telstra etc., which will make the share price decidedly worse.

The Government and the Nationals are trying to talk-up the so-called 3 billion dollar deal to 'future proof' telecommunications services in the bush. What nonsense and a sham this is!

In the first instance, the Universal Service Obligations (USOs), which cross subsidise the least profitable services cost hundreds of millions of dollars per year.

Secondly, the 2 billion dollar 'future fund' will generate about a $100 million per year (5% interest), to fund telecommunications in the bush. What a pathetic figure when you consider that Telstra paid the federal Government $1.6 billion in dividends last year and is likely to pay close to $2 billion this year. This would continue year in, year out, if the Government didn't sell Telstra.

Thirdly the 'package' envisages spending a little over one billion dollars to improve communications 'hot spots' as identified. This is another sick joke. To provide all Australians, including those in the bush, with high speed, date reliable mobile services etc. will take many billions of dollars over a number of years. In fact 'basic requirements' will be an ever moving target as technology and services develop and change. A 1 billion dollar spend, along with a 2 billion dollar 'future fund' to 'future proof' telecommunications in the bush is a fraud.

If the Nationals cop this they may well be finished in the bush.

The fight to stop Telstra being sold is not yet over. Even if legislation is passed, the sale won't take place most likely until late 2006. By that time the next election is getting close. Howard has already said the Government won't go into an election year selling Telstra - I'll bet.

So we must keep up the pressure. Lobbying, signatures on petitions, getting community support, running public meetings; this issue is not yet decided.

Related items
Telstra employee's account of cutbacks and penny pinching, 18 Aug 05
Proposal for a campaign to stop the sale of Telstra, 24 Aug 05