Senator CONROY (3:03 PM) —My question is to Senator Coonan, representing Senator Minchin, the Minister for Finance and Administration. Can the minister confirm that the government’s decision to force Mr Geoff Cousins onto the Telstra board against the wishes of Telstra is just the latest in a series of government acts of bullying and intimidation aimed at the Telstra management? Hasn’t the government also leant on the board to try to get it to lock in dividend payments at unsustainable levels in 2007 and 2008, gagged Telstra’s executives from criticising government regulatory policy, leant on the board about the terms of the T3 prospectus on issues such as the impact of regulation and the nomination of Mr Cousins, and threatened to vote against existing Telstra directors at the upcoming Telstra AGM? Can the minister explain why the government continues to engage in an unprecedented campaign of harassment against the management?

Senator COONAN (Minister for Communications, Information Technology and the Arts) —This is an unseemly, unnecessary and unwarranted attack on the reputation of a man who is eminently qualified to be a director on the board of Telstra. It is typical Labor Party tactics to attack the man, to try and sully the reputation of anybody who this government puts forward for any position on any board. It is very clearly stated in the T3 prospectus that Telstra’s views on Mr Cousins’ nomination to the board are the views of Telstra only. The T3 prospectus states:

That is very clear. The prospectus also points out that the government believes that Mr Cousins will act independently as a director and not as a representative of the government on the Telstra board; and, indeed, that is what he is obliged to do, pursuant to his fiduciary and other legal obligations, if his appointment to the board is in fact confirmed.

Senator Chris Evans —What about independence of the other directors—bullying them?

Senator COONAN —The prospectus very clearly outlines Mr Cousins’ 26 years experience as a company director and other relevant experience for the position. As for who is bullying who, I would think in the circumstances that the Labor Party and particularly Senator Conroy talking about bullying people just about takes the cake. It is a bit rich when even his own side call him a dalek. What is the word: ‘ex-ter-min-ate’? That is what the Labor Party is all about. And the Telstra float is not a Labor Party branch stack where Senator Conroy can go around and kick doors and kick heads; this is an appropriate process where a man eminently qualified to be a director has been nominated by the government. The other matters, of course, are that the other directors are there for all to see in the Telstra prospectus. It is important that Mr Cousins’ nomination go forward. It will be supported by the government and it will be supported at the annual general meeting, and I would expect that Mr Cousins will be nominated and in fact he will be appointed.

Senator CONROY —Mr President, I ask a supplementary question. Isn’t the constant harassment and intimidation of the Telstra board by the government a clear vote of no confidence in the company’s direction at the very time the government is trying to sell its stake in the company? Why should ordinary Australians have faith in Telstra’s management when John Howard’s message to the Telstra board is: ‘You will obey or you will be exterminated’?

Senator COONAN (Minister for Communications, Information Technology and the Arts) —The prospectus very clearly states that the government has confidence in the board and that Mr Cousins will be nominated at the board meeting. I doubt very much whether Mr Cousins will be exterminated because the government supports him. We are a 51 per cent shareholder. The only dalek, the only relic of the past, is the Labor Party, which does not have the ticker to actually get on with privatising Telstra and modernising telecommunications. The Labor Party have nowhere to go but just criticise and try some populist reflex action. Mr Beazley of course did not have the ticker last time; he has not got the ticker now. This government has the ticker to get on with the job and finish it.

Mr President, I ask that further questions be placed on the Notice Paper.