Mr SWAN (2:26 PM) —My question is directed to the Treasurer. Is the Treasurer aware that, under the Corporations Act, companies are required to put their remuneration reports, which include performance hurdles, termination payments and the salaries of the top 10 executives, to a shareholder vote at their annual meeting? Can the Treasurer confirm that the Telstra CEO, Mr Trujillo, is entitled to a termination payment of at least $6 million if he is fired before July 2006? Will the Treasurer inform the House whether the government intends to vote against this $6 million payout.

Mr COSTELLO (Treasurer) —Under the government’s Corporations Law changes in the CLERP 9 amendments that we put into the act, a company is required to put its remuneration policies to an annual general meeting. That goes to a non-binding resolution and, as I understand it, it is also done in arrears. If that is the case, at this year’s annual general meeting it would be the remuneration practices applying in 2004-05.

Having said that let me go on and say that a directors’ pool is put to an annual general meeting. The government as a shareholder would be required to vote in relation to directors. I understand that the shareholding minister, Senator Minchin, the Minister for Finance and Administration, has indicated that the government will not be voting against that resolution, so that would give an indication as to what is required in relation to the market and what the proper remuneration is. Given consideration of other corporate salaries of comparable companies, the shareholder minister takes the view that it is reasonable in the circumstances and therefore would not be voting against it.