JAMIE DUNN: Well isn't it amazing? I really applaud the Government for what they're doing with this Telstra split. I think it's fantastic, although I'm sure there's million of Telstra shareholders around that...
IAN CALDER: Yes, it would be the opposite...
JAMIE DUNN: …were hoping to have a monopoly. On the line I've got Lindsay Tanner, Federal Minister for Finance. Hey Lindsay.
LINDSAY TANNER: Good Morning Jamie.
JAMIE DUNN: Did you enjoy the Rudd's?
LINDSAY TANNER: That was very impressive. I could probably do with one of those voice things for my electric office.
[Laughter] Can you put me on to who makes them?
IAN CALDER: They work you know.
JAMIE DUNN: So, I don't know, the general opinion is do you feel the people are applauding the Government's decision to separate Telstra?
LINDSAY TANNER: There'll always be mixed views on these issues. I've been involved in the past as Shadow Communications Minister exploring this question and there was plenty of controversy at the time and this would be six or seven years ago now and there'll be plenty of debate now. I think what people are missing in the commentary is if we get this right, you'll see a rapidly growing telecommunications sectors - more people using broadband for a wider range of things; businesses using it for different things. So Telstra's got a tremendous opportunity to grow and I think they understand that and I hope shareholders do.
JAMIE DUNN: Yeah, oh well, look, on the face of it, if you're a shareholder at Telstra - it's a company. I mean you can't assume you're going to have a monopoly.
LINDSAY TANNER: Well I think that's an important point that these issues have been debated for some time and when the privatisations occurred there was debate about some of these risks - these possibilities - the future of regulation so I think there was no secret about these possibilities and in fact I, as Shadow Communications Minister, was leading at about - a debate about these very kinds of things prior to the final sale of Telstra. Now we ended up not getting elected so we weren't in a position to do any of those things in the - from the 2004 election, but these things have not been a secret, I'd say.
JAMIE DUNN: So the idea of new legislating if Telstra doesn't agree to split up - what's the reaction from Telstra itself?
LINDSAY TANNER: Oh look, Telstra are obviously engaged in very detailed discussion with the Government about a wide range of things including these issues, but also of course, the future of the broadband network and we hope that we'll be able to collaborate with Telstra in achieving a pretty much universal super-fast broadband network that will be of enormous benefit to Australia. And it's not just about consumers - they're very important obviously, all the entertainment and information options it will provide for people in their homes will be enormously important. But more importantly it's about productivity and businesses. People being able to do things better; people being able to locate their businesses in different places to get advantages of cheaper land options. All kinds of things will flow from getting serious high-speed broadband in Australia.
JAMIE DUNN: Well Telstra's saying that many aspects of this package are unnecessary and need never be implemented if a mutually acceptable outcome can be reached. They seem like they're scrambling, did you catch them on the hop?
LINDSAY TANNER: Look, I can't answer for how Telstra has reacted but I don't believe so because these proposals are of course based on a regulatory discussion paper that was launched at the same time as our broadband networked proposal was launched - this was back in April, so these are essentially propositions that were floated in that discussion paper. We had widespread discussion about those issues so I don't think Telstra will be particularly surprised. Obviously anybody that's got a dominant market position that’s based on certain things will be very keen to keep that dominant market position. But although that has favoured Telstra at one level I think it's held them back at others because most of their creative energy goes into gaming the regulatory system rather than dreaming up new applications, new products, taking more risks, innovating - the things we want companies in this area to do. So although it will be tough for them at one level I think it will be positive for Telstra and their shareholders in the longer term because we'll get a better market system, more activity, and more jobs.
JAMIE DUNN: And you would imagine that they would have to be involved in the roll out of the new broadband that we're getting anyway, wouldn't they? I mean they're not going to be shut out completely.
LINDSAY TANNER: Oh well, one way or another they are relevant, there's no question about that. The real issue is on what terms and whether it's in collaboration as part of the strategy or whether there's an antagonistic situation - all of these things are still yet to be resolved.
JAMIE DUNN: Well Lindsay, Lindsay Tanner, Federal Minister for Finance, thank you very much for your time this morning. I'm glad you enjoyed the Rudd's.
LINDSAY TANNER: I did. I've got to get one of those answering machines.
JAMIE DUNN: [Laughs] We'll record one for you and send it to you.
IAN CALDER: Tailor made.
JAMIE DUNN: Thanks for your time this morning.
LINDSAY TANNER: Thanks very much.
- ends -
| Media Contact: | Website: |
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