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Australian govt gets Lower House approval to sell Telstra stake
Sydney, Aug 21: The Australian government`s plan to sell its 50.1 per cent stake in telecom giant Telstra was cleared by Parliament`s Lower House today despite objections from some of the government`s own politicians.
Sydney, Aug 21: The Australian government's plan to sell its 50.1 per cent stake in telecom giant Telstra was cleared by Parliament's Lower House today despite objections from some of the government's own politicians.
The controverial privatisation, which would pour more than 35 billion dollars (22.75 billion US) into government coffers, still faces near certain defeat in the opposition- controlled Senate.
Two politicians from the ruling Liberal-National coalition abstained from the vote. Liberal Albie Schultz and Kay Hull of the rural-based National Party both represent regional areas where the privatisation is deeply unpopular because of fears it will lead to deteriorating services and price hikes.
Hull said the Australian people should be able to vote in a referendum on the sale.
"The bill should not be acted on until the Australian people have a direct opportunity to make their views known," Hull said.
The government bill sets no time frame for the sell-off and with Telstra shares languishing in a sluggish stock market there was little expectation the government would press ahead quickly even if it gained Parliamentary approval.
Prime Minister John Howard said full privatisation would make Telstra more competitive.
Bureau Report
The controverial privatisation, which would pour more than 35 billion dollars (22.75 billion US) into government coffers, still faces near certain defeat in the opposition- controlled Senate.
Two politicians from the ruling Liberal-National coalition abstained from the vote. Liberal Albie Schultz and Kay Hull of the rural-based National Party both represent regional areas where the privatisation is deeply unpopular because of fears it will lead to deteriorating services and price hikes.
Hull said the Australian people should be able to vote in a referendum on the sale.
"The bill should not be acted on until the Australian people have a direct opportunity to make their views known," Hull said.
The government bill sets no time frame for the sell-off and with Telstra shares languishing in a sluggish stock market there was little expectation the government would press ahead quickly even if it gained Parliamentary approval.
Prime Minister John Howard said full privatisation would make Telstra more competitive.
Bureau Report