FED: National Party splits again over Telstra sale

AAP General News (Australia)
04-05-1999
FED: National Party splits again over Telstra sale

By Rod McGuirk and Maria Hawthorne

CANBERRA, April 5 AAP -Queensland National Party MPs were split today over the full sale
of Telstra, with an outspoken backbencher directly lobbying independent senators Brian
Harradine and Mal Colston to vote against the plan.

De-Anne Kelly has written to both senators outlining her concerns about the impact of full
privatisation on rural and regional Australia and urging them to support no more than a
further 16.6 per cent sale.

Mrs Kelly said while she abstained from voting on the legislation when it passed the lower
house, she was now acting in accordance with state National Party policy.

But National Party senate leader Ron Boswell vowed to vote for the legislation, saying he
would keep his word to Prime Minister John Howard in return for a $670 million infrastructure
package for the bush - and he expected fellow National Bill O'Chee to do the same.

The problem is the Queensland party has passed two resolutions on the sale - the first
endorsing it if bush services were upgraded; a second opposing selling more than 49.9 per cent
of the national telecommunications carrier.

"The party made one resolution then over-rode it with another one which has left everyone
up in the air," Senator Boswell said by phone today.

"But the general feeling is we've got to stick with what we made an agreement to do."

Mrs Kelly has written to both independent senators, asking them to approve the sale of up
to 49.9 per cent and therefore the infrastructure upgrade package - but not full
privatisation.

She said she shared Senator Harradine's concerns about Telstra service standards and did
not accept that they were anywhere near acceptable.

"Equally, I believe the Telstra board needs a far firmer government direction to ensure
that its primary role as a provider of an essential service is not lost in the ambitious
pursuit of international alliances and the like," her letter said.

Mrs Kelly said there was no contradiction in asking the senators to vote against the sale
when she had abstained.

"I am asking someone else to do what I did which is to allow the sale to 49 per cent and no
more and allow the infrastructure package," she said by phone.

"Had I voted against it, I would have been voting against the infrastructure package and
that would have done a great deal of damage to rural and regional Australia."

Opposition communications spokesman Stephen Smith said Mrs Kelly's lobbying was further
evidence of fears in the bush of declining services under a privatised Telstra.

A spokesman for Mr Howard said government policy on Telstra would not change.

A spokesman for National Party leader Tim Fischer said Mrs Kelly would not be disciplined
for her unusual tactic.

"That's not something being countenanced," the spokesman said.

AAP rmg/mfh/cfm

KEYWORD: TELSTRA KELLY NIGHTLEAD

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