Fahey Holds Telstra 2 Loot

Date: 15 May 2000

John Fahey has confirmed that, as at 24 January this year, the Government still owed 800 people money who did not receive their full share allotment from the Telstra 2 float.

"In response to a Question on Notice, John Fahey has also revealed that 100 people were owed more than $5,000, and ten were owed more than $20,000," Mr Tanner said.

"It is an outrage that the Government has been so tardy in refunding people's money and, to make matters worse, John Fahey says no interest will be paid on the money owed.

"One unsuccessful investor who contacted my office had to wait three months to have $45,000 returned to him - losing hundreds of dollars in interest and the chance to pursue other investment opportunities. He received this money only after I complained directly to Fahey's office.

"It is disgraceful that the Department of Finance has taken months to return money submitted by unsuccessful applicants to the second Telstra float.

"Whilst Telstra hits battlers struggling to pay their phone bill with a $5 late payment fee, the Government takes months to return money to prospective Telstra investors.

"John Fahey should explain why it has taken his Department and Advisors so long to process simple refunds, and apologise to those who have lost money as a result. He should offer to compensate those who have lost significant amounts of interest because of his sloppy administration."

For further information

Contact:	Lindsay Tanner
Union:	ALP Federal
Phone:	(03) 9347 5000
WWW:	http://www.alp.org.au

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