Editorial: Stop privatisation of Telstra
Mal Colston, the ex-ALP senator, with the words on balance ... at this stage, derailed the Coalition's first attempt to fully privatise Telstra. Prime Minister John Howard, however, has not given up on plans to sell the remaining two-thirds of Telstra for an estimated $45 billion.Howard argues that privatisation will boost efficiency, reduce the national debt and benefit small shareholders and consumers.
These arguments are wrong, and have not convinced the public. One Nation's 23% vote in the Queensland elections and its vague populist opposition to full privatisation have put pressure on the National Party â even though One Nation is not opposed to privatisation in principle.
The National Party parliamentarians voted in favour of full privatisation and against their party policy that the government should retain 51% ownership â one more indication of how little say the grassroots of the major political parties have in what the parliamentarians do.
Telstra should not be further privatised. The one-third already privatised should be renationalised. Privatisation benefits only big business, which will end up owning most of a privatised Telstra regardless of how many mums and dads are allowed to buy shares initially.
Workers lose jobs and conditions when public utilities are privatised. Over the last two years, there have been 20,000 jobs lost in Telstra. To maximise profits, service is undermined, particularly in rural and outer suburban areas. Consumers lose out through increased prices or through cost savings from new technology not being passed on.
Workers, students, the unemployed and pensioners all lose because hundreds of millions of dollars of dividends which have been used for social services and infrastructure are now shovelled into the pockets of capitalists.
There is no evidence that private is more efficient than public, and if efficiency includes universal service, lower prices, maximising job opportunities and a healthy work environment, then public utilities win hands down.
As for the argument about decreasing public debt, Australia by 2001-02, without further privatisation of Telstra, is predicted to have a public debt to GDP ratio of 7.5% â one of the lowest ratios in the world. This could be further reduced by making the rich pay what they should be paying in corporate and income taxes.
Despite the Senate vote, the fight to keep Telstra public is in a precarious state. Howard is likely to put the bill back to the Senate in a month, especially if he can strike a deal with Colston. Or, if Colston were to sick to attend, the bill would pass.
Now more than ever a campaign is needed to keep Telstra public and to reclaim the one-third that has been already privatised. This should be led by the unions that cover Telstra workers and should seek to form alliances with all groups that will be the losers from privatisation. It needs to include education of the community, public rallies and industrial action.
With determined action, Telstra can be saved. In the US colony of Puerto Rico, a strike by its workers in opposition to the privatisation of the telephone company led to a general strike. Strikes in France and Greece have been partially successful in stopping the privatisation of the phone companies.
A concerted public campaign, including industrial action, would really put Howard and Hanson on the rocks and would be a big success for working people.