Governing lawmakers agreed yesterday to approve Australia's biggest-ever privatization, endorsing a multibillion-dollar plan to ensure that rural customers aren't stuck with poor service when former phone monopoly Telstra Corp is sold off, the prime minister announced.
Prime Minister John Howard's Cabinet gave the A$3.1 billion (US$2.4 billion) funding package its blessing at a meeting on Tuesday night, paving the way for the sale of the government's 51.8 percent stake in Telstra, which is expected to raise about A$30 billion.
Howard said the rest of the lawmakers in his governing coalition agreed to back the plan at a meeting yesterday.
Legislation to sell the government's stake will be presented in two weeks to parliament, where it faces heavy opposition from other parties who are worried that privatizing Telstra will cause service in rural areas, where there is less competition, to suffer.
Public opposition is also strong. A poll by the respected Newspoll agency published in the Australian newspaper on Tuesday found that 70 percent of respondents oppose the sale of the government's controlling stake in Telstra.
One rural-based lawmaker, Senator Barnaby Joyce, a newly elected senator for the coalition government's junior partner, the Nationals, had threatened to block the sale, unless standards for rural phone and Internet services are improved.
But following the Cabinet's decision on the funding plan, Joyce said he had achieved everything he had sought in negotiations with government ministers.
With the backing of all lawmakers in the ruling coalition, the legislation is guaranteed to become law because Howard has majorities in both houses of Parliament.
"The decision that we've taken today will, I believe, reflect a fundamental reality and that is, that it is quite counterproductive and not in the national interest for the Australian government to own more than half of the largest company in Australia," Howard told reporters.
The funding package includes A$1.1 billion to roll out improved Internet and cell phone services in rural areas over four years.
It also includes a A$2 billion trust fund that will ensure money is available to bolster standards of services outside cities in the future.
American Sol Trujillo earlier this year took over as the company's chief executive.
Howard said the government's 6 billion shares were expected to sold next year, although the precise timing had not yet been decided.
Telstra shares have slumped since the last tranche of government-owned stock was offloaded at A$7.40 apiece in 1999. The stock dropped A$0.01 to A$4.85 yesterday afternoon shortly after Howard's announcement.
Treasurer Peter Costello, the ranking finance minister, refused to commit the government to waiting until the price rebounded to the A$5.25 a share that the government had expected earlier this year to make from the sale.
ANNOUNCEMENT: People who do not comply with the ban after a spoken warning would be reported to the police, the airport company said on Friday Taoyuan International Airport Corp on Friday announced that riding on vehicles, including scooter-suitcases (also known as “scootcases”), bicycles, scooters and skateboards, is prohibited in the airport’s terminals. Those using such vehicles should manually pull them or place them on luggage trolleys, the company said in a Facebook post. The ban intends to maintain order and protect travelers’ safety, as the airport often sees large crowds of people, it said, adding that it has stepped up publicity for the regulation, and those who do not comply after a spoken warning would be reported to the police. The company yesterday said that
NEW YEAR’S ADDRESS: ‘No matter what threats and challenges Taiwan faces, democracy is the only path,’ William Lai said, urging progress ‘without looking back’ President William Lai (賴清德) yesterday urged parties across the political divide to democratically resolve conflicts that have plagued domestic politics within Taiwan’s constitutional system. In his first New Year’s Day address since becoming president on May 20 last year, Lai touched on several issues, including economic and security challenges, but a key emphasis was on the partisan wrangling that has characterized his first seven months in office. Taiwan has transformed from authoritarianism into today’s democracy and that democracy is the future, Lai said. “No matter what threats and challenges Taiwan faces, democracy is the only path for Taiwan,” he said. “The only choice
CORRUPTION: Twelve other people were convicted on charges related to giving illegal benefits, forgery and money laundering, with sentences ranging from one to five years The Yilan District Court yesterday found Yilan County Commissioner Lin Zi-miao (林姿妙) guilty of corruption, sentencing her to 12 years and six months in prison. The Yilan District Prosecutors’ Office in 2022 indicted 10 government officials and five private individuals, including Lin, her daughter and a landowner. Lin was accused of giving illegal favors estimated to be worth NT$2.4 million (US$73,213) in exchange for using a property to conduct activities linked to the 2020 Chinese Nationalist Party (KMT) presidential and legislative election campaigns. Those favors included exempting some property and construction firms from land taxes and building code contraventions that would have required
TECH CORRIDOR: Technology centers and science parks in the south would be linked, bolstering the AI, semiconductor, biotech, drone, space and smart agriculture industries The Executive Yuan yesterday approved a “Southern Silicon Valley” project to promote the development of an artificial intelligence (AI) and semiconductor industry in Chiayi County, Tainan, Pingtung County and Kaohsiung. The plan would build an integrated “S-shaped semiconductor industry corridor” that links technology centers and science parks in the south, Executive Yuan spokesperson Michelle Lee (李慧芝) said yesterday after a Cabinet meeting. The project would bolster the AI, semiconductor, biotech, drone, space and smart agriculture industries, she said. The proposed tech corridor would be supported by government efforts to furnish computing power, workforce, supply chains and policy measures that encourage application and integration
RSS