Communications Minister Stephen Conroy has lashed out at major Telstra investors angry at the government's plan to break up the telco, saying it's "difficult" to understand the companies' negative conclusions about the government's actions.
Communications Minister Stephen Conroy has lashed out at major Telstra
investors angry at the government's plan to break up the telco,
saying it's "difficult" to understand the companies' negative
conclusions about the government's actions.
Stephen Conroy at the ATUG Awards earlier this year (Credit: Suzanne Tindal/ZDNet.com.au)
"Under the previous Telstra management, the Telstra share price
fell almost 40 per cent from when Sol Trujillo was appointed to his
departure announcement ... Did we hear anything from these large
institutional investors during that period?" Conroy said in a speech to
the CommsDay Summit in Melbourne this morning.
"These institutional investors seem to ignore the fact that
many analysts in the market see the positive opportunities that are
open to Telstra through a combination of the NBN roll-out and the
One of the institutional investors protesting the Telstra
separation plan is Investors Mutual. The group's investor director
Anton Tagliaferro intensified his ongoing attack on Conroy's plan
again this morning in a column for the Australian Financial Review.
"The proposed Bill, by enforcing separation, will lead us down
the same path of errors that has occurred overseas in countries
such as the US and Britain, and result in lower investment across
the industry and inferior services to consumers," Tagliaferro wrote.
"As I have said before, the government strongly believes it is
possible to achieve a win-win outcome in the interests of Telstra,
its shareholders and, more broadly, all Australians," said Conroy
in his speech.
Separately, Conroy rejected Opposition calls to delay the
passage of the associated telecommunications industry reform
"We remain absolutely committed to debating and passing this
legislation before the end of this year," Conroy said. "As I have said,
there is no justification for delaying these fundamental reforms.
"We have consulted broadly. The regime has failed. We are acting
now to reform communications in the interests of all Australians."