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New board for AOTC



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media release WARWICK SMITH M.P. Shadow Minister for Communications

2 December 1991

New Board for AOTC

Warwick Smith, Shadow Minister for Communications, today welcomed the announcement of Mr David Hoare as chairman of Australian and Overseas Telecommunications Corporation (AOTC). .

'David Hoare is very experienced in this field. I have every confidence in him and wish him well. I also think it appropriate that those on the Interim Board be appointed to the full board. Of the new appointees I am of course surprised that a well known Victorian Labor lawyer has been appointed.'

'The major task now for the Board is the choice of the Chief Executive. I have expressed my belief, both to Mr Hoare and to the Minister, Mr Beazley, that the prime criterion for selection should be the capacity to significantly change the culture of the organisation from an engineering driven one to one that is market and

service oriented. The question of nationality of the appointee is irrelevant in the choice of the best person for the job.

'The decision on the capital structure of AOTC is a matter that had to be addressed and the conversion of debt to equity is correct in principle given the weakness of Telecom's balance sheet. (See press release attached)

The details of the proposal will be studied closely by us when we assume government in eighteen months time as we prepare AOTC for privatisation.

I point out that in the "Fightback" package we decided to bring forward Telecom's repayments of its Commonwealth debt to yield a net additional $275 million a year over the three year program.

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Contact: Warwick is in Sydney today and may be contacted on (02) 361 9000, or Vivienne Shield Launceston (003) 31 4322

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