Senator SHERRY —My question is to the Minister representing the Treasurer. I refer the minister to comments made by Mr Costello in the context of a debate on the Qantas Sale Amendment Bill. He said that a partial privatisation of a government utility was `death by a thousand cuts'. He used the example of Telecom, as it then was, and stated that it was economically necessary and inevitable that government utilities operating a commercial service be fully privatised. Who is wrong—the Treasurer and Senator Alston or the Prime Minister?

Senator SHORT —It seems to be quite obvious that Senator Sherry is not only part of the brigade opposite who has been described by his own deputy leader as increasingly irrelevant in this place—in fact, I think suffering from a relevancy depravation syndrome.

Opposition senators interjecting—

The PRESIDENT —Order!

Senator SHORT —He ought to be aware of the government's policies in relation to privatisation and particular elements of businesses in public ownership, which are crystal clear and there for all to see. We went to the election with them very clearly.

If you are referring, as you obviously are, to the situation of Telstra, the policy that was laid down in the election context is, as Senator Alston has already said today, as Senator Hill as already said today and as the Prime Minister has said on numerous occasions, crystal clear. That policy was to seek the partial—one-third—sale of Telstra. That is the policy—no more and no less.

Senator SHERRY —Madam President, I ask a supplementary question. Mr Costello clearly said, in reference to the sale of Telecom, that it was `economically necessary and inevitable' that government utilities operating a commercial service be fully privatised. He is your Treasurer. Is he right or wrong?

Senator SHORT —I said in response to his first question—he obviously did not hear me—that the policy in relation to Telstra is that we have a policy that we will privatise, sell, one-third of Telstra. That is in black and white. It is an unequivocal commitment, and I have nothing more to add to what I have already said.