Privatisation Of Telstra

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sale of the first third netted a total of $0.37 billion loss to the Commonwealth. By the year 2000, it is estimated that Telstra earnings will exceed $2 billion annually. The Howard Government estimats an interest saving of about $2.4 billion per year. This doesn't take into account the income that will be lost to the government every year in revenue earnings from Telstra. By 2007, the sale of Telstra is expected to create a budget black hole of $4 billion.


The government cites that the "Mums and Dads" of Australia will benefit by purchasing shares in the float, which is true. But eventually the real beneficiaries will be the multinational companies who will have the controlling majority, not the Australian public. This can have detrimental effects on society, especially to the rural regions of Australia.
The Democrats and the Labor Party also disapprove of the privatisation of Telstra for the above reasons.

Privatisation is when a Government Business Entity (Statutory ...

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of up to $1.5 billion as a result of staff/service cuts. The Board of Directors are urging for a special dividend to shareholders or a share buyback (to increase share prices). No one is suggesting the obvious, strategic investment.

Privatisation has also made an impact on the working conditions of employees. One of the first stages of structural reform that Telstra implemented was downsizing and the cutting of working conditions of over 60 000 workers (formerly) employed by Telstra, after experts claimed that there is an excessive labour load of about 27000 strong. As Telstra was previously a GBE, it's structure was "suboptimal" in a business sense ie: Telstra's activities exceed ...

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