FED: Alston rejects Kelly s anti privatisation argument

AAP General News (Australia)
04-05-1999
FED: Alston rejects Kelly s anti privatisation argument

CANBERRA, April 5 AAP - Communications Minister Richard Alston today rejected National
Party MP De-Anne Kelly's argument that full privatisation of Telstra would jeopardise services
to the bush.

The north Queensland MP has written to independent senators Brian Harradine and Mal Colston
asking them to reject government legislation that would allow the sale of the final two-thirds
of Telstra.

Senator Alston's spokesman said Mrs Kelly's actions were not unexpected.

The minister did not intend to talk to Mrs Kelly about her stance, which she says is
supported by the Queensland National Party.

"The policy of the Liberal-National Party federal government remains the 100 per cent sale
of Telstra," Senator Alston's spokesman said.

A spokesman for Prime Minister John Howard also said government policy on Telstra would not
change.

"Any questions in relation to Mrs Kelly should be referred to (National Party leader) Tim
Fischer's office," the spokesman said.

Senator Alston's spokesman rejected Mrs Kelly's legal advice that a majority-private owned
Telstra might be bound by corporate law not to fund "uneconomical activities" such as rural
infrastructure.

Telstra had been run on commercial grounds since 1991 when the Labor government exposed the
then-Telecom to limited competition, he said.

The government could ensure Telstra maintained service standards in regional Australia
through community obligation legislation, he said.

AAP rmg/mfh/cfm/br

KEYWORD: TELSTRA KELLY ALSTON

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