Fed: Democrats slam Switkowski s plans

AAP General News (Australia)
02-11-2000
Fed: Democrats slam Switkowski s plans

CANBERRA, Feb 11 AAP - The federal government should remind Telstra chief Ziggy Switkowski
the telecommunications giant was not his plaything, the Australian Democrats said today.

The chief executive has refused to rule out a partial float of some key divisions in
the future, saying that restructuring of Telstra should be debated.

"Telstra is not Ziggy Switkowski's plaything," Democrats leader Meg Lees said in a statement.

"It is a majority publicly-owned utility.

"Minority shareholders have invested in its current form and are entitled to a share
in the profits."

Senator Lees has repeatedly voiced opposition to Prime Minister John Howard's wish
for a further Telstra sell-off.

Any move to partly float Telstra would dilute the ownership structure and would be
contrary to the intent of federal laws, she said.

"The coalition has repeatedly said that they do not support the breaking-up of Telstra.

"(Communications) Minister Richard Alston, who effectively holds the majority of Telstra
shares on trust for the Australian people, must make it clear to Mr Switkowski that the
majority shareholders have not approved of this plan.

"The Democrats call on minister Alston to either instruct his appointed directors or
issue a ministerial direction, as he is empowered to do by the Telecommunications Act,
that these eminently profitable services be retained as fully-owned components of the
Telstra corporation.

"The break-up of Telstra and the dilution of its level of public ownership is not a
matter for the chief executive officer to decide."

AAP lm/lw/bwl

KEYWORD: TELSTRA DEMOCRATS

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