Fed: Federal Nationals to discuss Telstra sale demands

AAP General News (Australia)
08-01-2005
Fed: Federal Nationals to discuss Telstra sale demands

CANBERRA, Aug 1 AAP - Queensland Nationals will today try to convince their interstate
colleagues to back demands they want the federal government to meet in exchange for their
support on Telstra's sale.

Federal Nationals MPs and senators will meet in the NSW town of Lismore today to discuss
the Telstra sale as well as a host of other issues as part of their annual think-tank
retreat.

The meeting comes a day after the Queensland Nationals voted to oppose the full sale
of Telstra unless the government meets five key demands, including setting up a multi-billion
trust fund to spend on services in the bush.

Newly elected president of the Queensland Nationals Bruce Scott said the demands would
be put to today's meeting to be endorsed by the federal Nationals party.

"While this is a Queensland resolution we shouldn't assume automatically that our Victorian
and NSW counterparts are automatically going to support us," he told ABC radio.

"So we've got another step to go before we take this to Canberra."

Among the Queensland Nationals' demands are three-yearly reviews of Telstra's services
and measures to ensure services in the bush are on par with those in metropolitan areas.

The Nationals also want Telstra's Country Wide division to maintain a physical presence
in the bush as part of the telecommunications company's licence conditions and the retention
of the Universal Service Obligation (USO).

Communications Minister Helen Coonan says the government has already moved to address
each of the demands, except for the trust fund which she said will be considered.

Mr Scott said the trust fund, which the Queensland Nationals believe should contain
at least $2 billion, was the key to the government winning the Nationals support for Telstra's
sale.

He said by having a separate trust fund, the government would not have to rely on setting
aside money in its budget each year to help improve Telstra's services in the bush.

"We don't want to rely on a budget process," he said.

"It is too easy with a razor gang to cut budget appropriations.

"We've got to make sure we've got it locked away so that we can give that guarantee
that the money will always be there to secure services when markets fail in the future."

Queensland Nationals senator Ron Boswell said he believed the demands laid out to the
government were reasonable and would be met by the Commonwealth.

"All we are saying is that we need to have the same communications, the same standards,
the same service and at the same cost as where we are now," he told the Nine Network.

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KEYWORD: TELSTRA NATIONALS

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