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"...public opinion deserves to be respected as well as despised" G.W.F. Hegel, 'Philosophy of Right'

Welcome to executive dominance « Previous | |Next »
September 15, 2005

The Telstra legislation passed through through the Senate last night. Michelle Grattin points out that the T3 episode shows how the Government will actually treat the Senate when it wants to get important bills passed quickly: committee hearings will be minimal, debate will be gagged, and due parliamentary process will be treated with contempt. We can expect more of the same kind of guillotining with the industrial relations and work -to-welfare legislation.

This arrogance and contempt happened despite the basic flaws in the legislation about regulatory governance and competitive markets in relation to Telstra's monopoly of the basic telephone network. Because it still owns most basic phone network its competitiors have to use and to pay it for the privilege. Telstra is being allowed to write the rules for the use of this network. It sure won't establish a level playing field between it and its competitors.

What sort of governance is that, given the sale is more than a year away, and the network has been run down?

This governance is not one that would faciitate what Ross Gittins says is most needed:

....competition that would improve the quality of service, encourage innovation, hasten the introduction of the latest technology and cause the cost savings from that technology to be passed on to customers.

Telstra will now slash costs to drive profitability whilst fighting to protect its monopoly privileges. Gittens observes that this suggests that:
...as soon as Telstra has its freedom from government ownership, it will be doing all it can to obstruct the regulators and avoid its legal obligations to the bush and any other unprofitable users.

That does not bode well for the necessary upgrade of the network to enable high speed broadband across the nation.

So how is that going to be achieved?

| Posted by Gary Sauer-Thompson at 8:10 AM | | Comments (6)
Comments

Comments

For our busy bush town, [in liberal sharman stone's country seat]our IBIS inspired potential wireless broadband suppliers have just pulled out . telstra has now told us to wait utill next year "things may change " !?
At least kay hull had the guts to cross the floor .

kartiya, I used to live a couple of miles from AOL's world headquarters. Couldn't get broadband. No cable or DSL. Cable was a local monopoly, and they werent offering it back then. DSL was impossible because it was a new development, and there was no boards to flick between fibre and twisted pair. We had to use dial-up. Thank his noodly appendage for WiFi and that tiny little component of the spectrum being treated as abundant, rather than scarce.

kartiya,
I do not think that Australians have been served by the T3 legislation. Kay Hull read it right--more so than 'Backdown Barnaby.'

He could have hung out for more once it became clear that Senator Steve Fielding of Family First would not support the T3 legislation because it was not family friendly.

I reckon the Naionals ought to be seen as another faction of the Liberal Party. That is how they behaved on the Telstra issue.

Oh! Michelle you horrid :-) lady. Didn't honest"?" john PROMISE"?" that he would not use his majority in the senate in an arrogant manner?
And, come on Michelle, I bet you cannot recall this fine? upstanding? honest? decent? howard chappie ever breaking a promise. I mean to break a promise or promises would make honest"?" johnny a nasty, malignant, deceitful liar eh? numbat

Robert,

Who is the Michelle that you refer to? What did she say? Where did she say it?

Wireless is here and working well, even through the trees and at a distance - no multinationals required thanks .