PT. LINCOLN MAYOR CONTINUES
TO OPPOSE TELSTRA SALE
AND CALLS ON ALL AUSTRALIANS TO SHOULDER
THEIR RESPONSIBILITY
IN THE BATTLE TO SAVE IT.
DURING SENATOR HELEN COONAN'S VISIT TO ELLISTON
TODAY (6/7/05) MAYOR PETER DAVIS CONVEYED THE FOLLOWING REASONS FOR
OPPOSING THE FULL SALE OF TELSTRA.
1. TELSTRA HAS A COMMUNITY SERVICE RESPONSIBILITY
TO ALL AUSTRALIANS. Yet, Telstra consistently refuses to honour its
responsibilities to isolated rural Australians based on poor financial
returns to the Company. It has stated in its annual reports that
it will not invest in assets returning poor profitability.
Example: Telstra has advised Cleve District
Council no mobile phone tower will be installed at Darke's Peake
unless Council enters into a funding agreement. Cleve has a population
of 1900 people who pay a total $1.4 million in Council rates annually....
Yet new C.E.O. Trujillo's commencing salary is seven times the total
rate revenue of the Cleve Council And the dividend and tax stream
flowing to the Federal Government is $10 Million DAILY!
Federal Government must force Telstra to honour its community responsibilities.
IT CANNOT DO SO IF IT DOES NOT CONTROL TELSTRA.
2. THE PEOPLE OF AUSTRALIA OWN TELSTRA, NOT
THE FEDERAL GOVERNMENT. GOVERNMENT RECEIVES IN EXCESS OF $3.7 BILLION
ANNUALLY IN TAX AND DIVIDENDS..... or approximately $180 per person
annually in our Nation. THE TELSTRA REVENUE STREAM REPRESENTS IN
EXCESS OF ONE THIRD OF COSTELLO'S ACCLAIMED BUDGET SURPLUS OR A $360
tax increase for Australia s 10 million taxpayers if Telstra is sold.
3. GOVERNMENT HAS INDICATED IT WILL USE THE
$32 BILLION TELSTRA SALE PROCEEDS TO FEND ITS 'FUTURE GROWTH FUND.
with total funds of some $150 Billions by 2020. This Government investment
Fund is intended to meet its current unfunded superannuation liability
of $81 Billions. Government should know that Telstra is currently
returning in excess of 12% on capital Government did not contribute.
If sold. Government will receive less than 5% on the capital due to:
· Complete loss of the $1.8 billion dividend stream.
· Significant loss of the taxation stream due to private superannuation
tax at 15% and revenue flowing offshore to overseas shareholders.
· Government will lose some $700 Million in sale costs alone.
· By 2020 Telstra cash flow revenues will have generated $15
billions more than the total proposed Telstra sale proceeds.
THE PEOPLE OF AUSTRALIA MUST MOUNT A MAJOR CAMPAIGN
TO CONVINCE AT LEAST 40 SENATORS TO OPPOSE THE FULL SALE OF TELSTRA."
ARE YOU DOING YOUR PART? YOU HAVE THE RIGHT
AND THE RESPONSIBILITY TO INFORM YOUR PARLAIMENTARY REPRESENTATIVE
WHAT IS YOUR WILL. INSIST TO HIM/HER YOU WANT TO OPPOSE THE SALE
OF TELSTRA. TELSTRA IS A PUBLIC UTILITY AND IS THERE TO SERVE ALL
AUSTRALIANS. |