Interesting developments over the weekend, with the Federal Senate blocking legislation to sell off the remaining two thirds of the Company.
theage.com.au
Telstra sale plan sunk by Colston
By TONY WRIGHT
Independent Senator Mal Colston last night torpedoed the Government's $40 billion proposal to sell the remaining two-thirds of Telstra, sending the Coalition's pre-election plans into dissarray.
At 8.20pm, he voted with the Opposition and minority parties to oppose the Telstra sale Bill, to applause from the public galleries.
His vote meant the Senate vote was tied, which is treated under standing orders as a decision in the negative.
The decision leaves the Government without a major plank of its election strategy. The proceeds of the Telstra Bill were to have been used to pay off Government debt and fund major telecommunications infrastructure, especially in rural areas.
Paying off debt would also have freed up money to be used as tax cuts to sweeten the Government's proposed goods and services tax.
Senator Colston sat mute during eight hours of debate on the Telstra Bill during yesterday's extraordinary sitting before climbing to his feet shortly before 6pm and declaring he could not support the legislation.
Despite being accused in an extraordinary personal attack earlier in the afternoon by the Senate Opposition Leader, Senator John Faulkner, of doing a ""slimy backdoor deal'' with the Prime Minister, Mr John Howard, Senator Colston said he would oppose the Government's legislation.
""On balance, I find at this stage I'm unable to support the bill and will thus be voting against it,'' Senator Colston told the silent Senate. ""Overall, there remain too many question marks over services and employment, particularly in regional Queensland.''
A clearly stunned Communications Minister, Senator Richard Alston - who earlier in the day had offered an extra $60 million for telecommunications in rural Australia, much of which would go to Queensland - said he deeply regretted that Senator Colston had not earlier expressed his concerns to the Government.
""To the extent that Senator Colston does have concerns that can be addressed, over the next couple of hours, then we would still be prepared to look at those,'' Senator Alston said.
The Prime Minister, Mr John Howard, expressed disappointment with the Senate last night.
A spokesman for Mr Howard said the Senate ""has voted for a much greater debt burden for future generations of Australians.''Some Labor Senators initially remained sceptical about Senator Colston's ultimate intentions, suggesting he could still change his mind and vote with the Government on the final vote.
However, as voting progressed after dinner on 30 packages of 50 amendments, Senator Colston consistently sided with the Opposition and minor parties.
Earlier yesterday, most observers believed the Government would win support for its controversial Telstra sale Bill after Tasmanian Independent Brian Harradine made clear he would vote for it. Senator Colston has consistently voted with Senator Harradine previously, and had lent crucial support to the original one-third sale of the telecommunications giant. However, he told the Senate last night, ""It is a quantum leap to move from one-third to 100 per cent privatisation.
""We are told that, through the Government, we as Australians could realise some $50 billion as a result of complete privatisation,'' he said.
""But what then? What could we do if we sold Telstra and then discovered that it wasn't the best course of action after all?
""There could be no remedying this situation. Our hands would be tied.''
Senator Colston met Mr Howard in Brisbane on Friday in what was seen as a last-minute chance for the Government to win his vote. It is believed he wanted Mr Howard to reverse his decision not to accept his vote, but Mr Howard would not agree.
However, Senator Colston's support for the Government was considered to be sealed when the Opposition Senate leader, Senator John Faulkner, launched an extraordinary attack on him yesterday afternoon
""I want to speak about someone who is venal; I want to speak about someone who is unscrupulous; I want to speak about someone who is mercenary,'' Senator Faulkner said.
""I want to speak about someone who is contemptible and despicable, and I want to speak about someone who is the most useless and abominable representative the federal parliament has ever seen.
""That individual is Senator Malcolm Colston.'' |
