Senator Schacht asked the Minister for Communications and the Arts, upon notice, on 29 January 1997:

With reference to the Minister's letter of 3 December 1996 to Senator Harradine, as reported in the Melbourne Herald Sun of 11 January 1997:

(1) Will the 1 700 jobs in Tasmania and Queensland be protected as a result of the arrangements between the Government and Senators Harradine and Colston and, as a consequence, will more than 500 jobs be lost in the Minister's home state of Victoria.

(2) If any jobs are to be lost in Victoria as a result of these arrangements, in which areas will these jobs be lost.

Senator Alston —The answer to the honourable senator's question is as follows:

(1) & (2) There were no arrangements made between the Government and Senators Harradine and Colston to protect jobs in Tasmania and Queensland at the expense of jobs in Victoria. My letter to Senator Harradine, which was supposedly the basis for the Herald Sun articles, makes no reference whatsoever to employment levels in Victoria.

During discussions with Senators Harradine and Colston I provided a table prepared by Telstra of the breakdown over three years of the effect on Tasmania and Queensland of the announced 22 000 reduction in Telstra's workforce. The 22 000 workforce reduction, which will affect each of Queensland, Tasmania and Victoria, was announced well before Parliament had agreed to the part sale of Telstra. It reflects the need to reduce costs and make Telstra more efficient as the telecommunications market becomes more competitive. Telstra's staffing requirements will be determined by the Telstra Board and management in its corporate planning processes in accordance with operational needs.