Senator EGGLESTON (3:09 PM) —There is no confusion about what the government policy is in the telecommunications area. The government support the sale of Telstra. That has been a very clear and certain policy of this government for a very long time. It is also a clear and certain policy of the opposition that they oppose the sale of Telstra, notwithstanding the fact that the sale of Telstra would have many benefits for the Australian public. We believe, as I said yesterday, that you do not need to own a telecommunications company when you can regulate it and ensure that the public receive good service.

We believe in competition: that is the big difference between the Labor Party and the government in telecommunications. We deregulated the telecommunications industry and, as a result, over 100 telecommunications companies in Australia are now providing a wide variety of services. Prices for telephone calls and other services have dropped dramatically since deregulation was introduced. The ALP, on the other hand, hold the old 1930s socialist concept of state ownership of enterprises. That policy has been discredited around the world, but here in Australia the dinosaurs on the opposite side of the chamber are hoping to preserve the concept of state ownership. Long may they do so because it is a policy that is moribund, going nowhere and it will keep them out of office for a very long time until they change their tune.

We are very proud of our record in telecommunications. The introduction of competition, as I have said, has led to lower prices. Competition from Optus, which is planning to provide satellite-delivered Internet, broadband and fast fax services to regional areas, has led to Telstra setting up Telstra Country Wide, which has produced many benefits for regional people and greatly improved the standards of regional telecommunications. We have a very clear position on telecommunications. Senator Coonan, as the new minister, is very clearly supporting government policy. We are running in a straight line from Richard Alston, through Daryl Williams to Helen Coonan. There is no confusion whatsoever. We know where we are going. Our course has been set for a long time.

But that is not quite the story with the ALP, I am afraid. Senator Bishop has been talking about government policy on structural separation of Telstra. The Senate might find it very interesting to recall the position that the shadow spokesman on communications, Lindsay Tanner, has taken on the issue of structural separation. Labor's `Reforming Telstra' paper released in 2002 proposed to structurally separate Telstra into an infrastructure and a service company. The government knew at that time that this was a very silly policy. In fact, we thought that it would lead to all sorts of complications—and the unions supported the government's view.

Unfortunately, it took Mr Tanner and the people who were concerned with the development of communications policy in the opposition—including Senator Lundy, the spokesman on IT—nine months to work out what was plain to not only the government but also the unions who, after all, are the bosses of the ALP. It took nine months for the ALP to realise that structural separation was not possible, that it was on a no-goer. In a humiliating backflip, Mr Tanner was forced to accept that any benefits of structural separation of Telstra would be outweighed by the costs. If there is confusion, it is on the ALP's side; it is certainly not on the government's side. We have very clear, firm policy directions on telecommunications. Senator Coonan is doing a good job.