Mr RIPOLL (2:39 PM) —My question without notice is to the Prime Minister. I draw the Prime Minister’s attention to the employment contract which Sol Trujillo struck with Telstra last year, which stipulates that if he leaves within a year he will get a golden handshake worth $6 million, or an additional payment of up to $115,000 a week. As the majority shareholder, was the government told about the $6 million golden handshake before it was agreed, and did the government give its approval?

Mr HOWARD (Prime Minister) —I cannot, without reference to him, speak for the shareholder minister in the government in relation to Telstra, and that is the finance minister. I will speak to him. If there is anything more I can add to this answer following that discussion, I will.

The principle is that the engagement of a managing director or chief executive, even by a company which is majority owned by the government, is ultimately a decision of the board. The Telstra board decided on the circumstances that led to the former managing director departing the company, and the Telstra board engaged Mr Trujillo. We were informed, to the best of my knowledge. But at no stage, to my knowledge, did we seek to dictate to the board—nor should we have done so—as to who should be chosen as the chief executive; nor indeed the terms and conditions on which he was engaged.

Generically speaking, I point out to the member that Telstra is a very large company by world standards. The reality is that there is a very competitive market for the recruitment of high-quality CEOs. It is easy pickings for an opposition to start talking about a big contract for a Telstra CEO, but placed in the same position as we are at present—which I hope for the sake of the Australian people will be a long time into the future—you would not have taken any different attitude, and do not be hypocrites and suggest otherwise.