Alston's Last Resort Safety Net

Date: 24 March 2000

Shadow Minister for Communications, Stephen Smith, said today that the Government's announced changes to the Universal Service Obligation were high on rhetoric which did not stack up to detailed crutiny of the proposed changes.

"To further its push for the full privatisation of Telstra, the Government has desperately sought to create the impression that competitive tendering of the Universal Service Obligation will be the across-the-board instant solution to Telstra service level problems in rural, regional and remote Australia.

"After two years and nine months of deliberations, the Government - amid great fanfare - yesterday finally announced their intentions on the Universal Service Obligation, at a time when they are under pressure and wanting to use any device to argue for Telstra's full privatisation.

"And what do we get? Two pilot projects, in unspecified regions, and no more detail until June
this year.

"Then, last night on the ABC's 7.30 Report, Minister Alston conceded that any sensible assessment of the pilot projects would be a couple of years off.

"But by far the most significant part of the Government's announcement is the requirement that Telstra remain as the "safety net" provider of last resort in a competitive tender regime.

"Minister Alston gave it away yesterday, making the fatal admission I'm sure he didn't actually want to make: As a safety net, Telstra will be required to continue to operate in the pilot markets.... This means that no consumer will be forced to give up their Telstra service unless they choose to move to a new service provider."

"By requiring that Telstra be the provider of last resort, the Government has finally acknowledged the pivotal role that Telstra plays in respect of
the delivery of services to rural and regional Australia.

"No-one should be fooled by the Government's two pronged Telstra full privatisation smokescreen - a fatally compromised inquiry into service levels and two pilot projects with Telstra as the backstop," Mr Smith said.

For further information

Contact:	Patrick Bindon
Union:	ALP Federal
Phone:	0418 694 878

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