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Nick Minchin

Leader of the Opposition in the Senate
Shadow Minister for Broadband, Communications and the Digital Economy
Liberal Senator for South Australia
Nick Minchin

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Senator the Hon Nick Minchin

PO BOX 2141
Kent Town SA 5071

36 Grenfell Street
Kent Town SA 5067

Phone: 08 8362 8600
Fax: 08 8362 8579
Toll Free: 1300 301 647
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Phone: 02 6277 3004
Fax: 02 6277 5703
MAJOR INVESTORS SLAM LABOR'S 'DRACONIAN' TELCO REFORMSEmail this pageBack

Wednesday, September 23, 2009 Printer Friendly Version

Telstra's biggest institutional shareholders have labelled the Rudd Government’s plans to force the break up of the company as "draconian" and "very detrimental" to shareholders, making a mockery of Labor's claims they would result in a "win-win" for everybody.

Shadow Minister for Broadband, Communications and the Digital Economy Senator Nick Minchin said this was deeply embarrassing for the Rudd Government and highlights the inherent risks in its heavy-handed approach.

"Here you have major institutional shareholders strongly opposing the Government’s approach because they firmly believe it will destroy shareholder value," Senator Minchin said.

"Telstra has 1.4 million shareholders many of them mum and dad investors and the Rudd Government has provided no evidence that they will be better off as a result of the forced break up of the company and forced divestiture of its key assets.

"The Rudd Government’s claims that its planned telco reforms are all about enhancing competition in the telecoms sector should not be believed.

All Labor cares about is doing all it can to prop up its dodgy $43 billion NBN project. It wants Telstra's customers and it wants to stop the company from competing against the network which will be a Government-owned monopoly.

"Labor's motivation is purely political and its approach poses huge risks not only to the Telstra shareholders, but also to Australian taxpayers and consumers, particularly those living in rural and regional areas.

"The Government’s failure to conduct any analysis on the impact of a forced break-up of Telstra and refusal to subject its NBN plan to a thorough cost-benefit analysis highlights its complete recklessness and contempt for taxpayers," Senator Minchin said.

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