Sunday, October 01, 2006

Inconsistent case for fully privatising Telstra

In view of the ongoing disputes between the Coalition Government and Telstra over what is sensible commercial and social conduct – in this morning’s Age it is renewed bickering over Telstra’s plan to cut numerous non-profitable pay phones and last week it was the issue of appointing Geoff Cousins to Telstra’s Board of Directors why is the government in such a hurry to complete the privatization of Telstra? It does not make sense – a move towards buying out the private shareholders and bringing Telstra back into public ownership would make more sense. A proposal along these lines has been provided by John Quiggin and I support it though it seems to be a political impossibility at this late stage.

But still my questions about the Government’s motives for moving towards a quick sale of its remaining shareholding remain. Why does John Howard want to put himself in the position where he can no longer readily influence Telstra’s future when he has (legitimate) questions about its direction now?

3 comments:

whyisitso said...

Hadn't picked you for a socialist, Harry.

hc said...

I believe in the mixed economy. I am not a socialist but believe what we teach our students in Economics 101. Markets work well in some contexts but not in others. See also the following post on health.

derrida derider said...

"Why does John Howard want to put himself in the position where he can no longer readily influence Telstra’s future ... ?"

Because then he can't be held responsible for its actions.