Fed coalition amends Telstra bill in response to "rash" policy
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CANBERRA, Oct 21 AAP
October 21 2009, 1:01PM
The opposition has unveiled a scathing amendment to draft laws proposing to fundamentally restructure Telstra.
It wants consideration of government legislation paving the way for the break-up of the telco giant delayed until the completion of an implementation study into Labor's national broadband network (NBN) project.
Opposition frontbencher Bruce Billson on Wednesday circulated the amendment in the lower house, which read that the government's "rash, unjustified and irrational change of policy" on Telstra was behind the coalition's decision to oppose the reforms.
Labor wants the telco's wholesale and retail businesses separated - either voluntarily or by force - to create a more level playing field before rolling out the NBN.
Under legislation introduced to parliament in September, Telstra would be required to divest itself of its cable television interests and a 50 per cent stake in Foxtel before expanding its advanced wireless broadband services.
The draft laws also give the government power to impose functional separation on Telstra if it fails to undertake structural separation.
Mr Billson said the bill was an attempt by Labor to make its "poorly-conceived" NBN viable.
"The legislation proves that the government cannot build the NBN without Telstra," he said.
If passed, Mr Billson said the legislation established a worrying precedent for government interventions in private companies.
"We are seeing a parliament assaulting a private company," he said.
"What we are seeing is a government taking a meat axe to the company ... to bludgeon it into doing what the government says it should do."
