Mr STEPHEN SMITH (2:25 PM) —My question is to the Deputy Prime Minister, Leader of the National Party and Minister for Transport and Regional Services. Is the Deputy Prime Minister aware that NDC, a fully owned subsidiary of Telstra, plans to shed at least 400 of its staff, 315 in rural and regional Australia, very many from National Party electorates? Has the government advised Telstra of the Prime Minister's Nyngan declaration that a red light would flash in the Prime Minister's office whenever cuts to the regions were being contemplated? Deputy Prime Minister, what action have you taken to enforce the Prime Minister's Nyngan declaration, to save these jobs in rural and regional Australia?

Mr ANDERSON (Deputy Prime Minister) —I thank the honourable member for his question. Of course, they always fudge a little around the words, because the Nyngan declaration clearly went to the intent of preserving services, which we have—

Opposition members interjecting—

Mr ANDERSON —And I want to make this point. You are not interested in this. The reality is that you do not want to focus on services because we have done more in the last couple of years to increase services in rural Australia that you did in 15. In relation to NDC, let me make a few points. While Telstra is partially government owned, it is an independent corporation and its board and management are responsible for the day-to-day running of that organisation. It is in the context of the board's responsibilities to ensure the company is run in a manner that is in the best interests of its shareholders—that is point one—and that includes decisions about employment matters such as staffing levels. Network Design and Construction Ltd, NDC, is a wholly owned subsidiary of Telstra. It is responsible for design and construction of the Telstra network. I note that, in terms of services out there, $500 million a year—just on the standard telephone network—is being expended at the moment to meet new residential and business demand in regional areas. As I say, it does compete on the open market for work from other carriers. I am informed by Telstra that NDC is intending to reduce its staff base from around 6,300 to 5,900 nationally over coming weeks. All but 12—seven in Perth and five in Adelaide—of the 400 staff affected are voluntary reductions. They are not forced lay-offs, and most of NDC's contracts in Telstra and other works are for work in metropolitan areas, with a lower proportion from rural and regional areas.

The other point that I want to make, which anybody genuinely interested in this whole question of rural employment and rural opportunities would acknowledge, is that when it comes to telecommunications the secret is not how many people work for any one given institution at any one time; it is about world-class telecommunications allowing rural and regional Australia to access, if you like, and participate in the emerging industries through what some people euphemistically call `the new economy'. When it really comes to grappling with that issue, it was we, not you, who put in place the Besley inquiry; it was we who through that process have not only had identified the weak links in telecommunications in rural and regional Australia but have given a commitment that we will fix them. You didn't. It is we who have addressed such things as the CSG, the customer service guarantee, that have been put in place by the Minister for Communications, Information Technology and the Arts. All the way through, the evidence is that it is we on this side who take the need for telecommunications at world-class levels in rural and regional Australia seriously, not you.