SCOPE OF CHAPTER 4
PRIVATISATION – FINANCIAL AND ECONOMIC CONSIDERATIONS
Terms of reference
Clauses (c), (e), (l), (m) and (n) of the Committee's terms of reference
relate to the financial and economic implications of privatisation. The
details of these references as set out below, ask:
(c) whether the timing and the likely proceeds of a partial Telstra
float should be affected by the proposed post-1997 rules;
(e) the impact on public sector savings of the partial sale of Telstra;
(l) the impact of privatisation on employment and economic activity,
particularly in regional Australia; (Chapter 4)
(m) whether proposed foreign investment restrictions on Telstra and
other telecommunications carriers are appropriate or adequate, and take
account of regulation and monitoring of financial transactions and currency
flows; (Chapter 4) and
(n) the extent to which the bill and the post-1997 arrangements will
foster the development of the Australian telecommunications services
and equipment industry, research and development, and the development
of new services. (Chapter 7)
The Bill
The Bill proposes to amend the Telstra Corporation Act 1991 to:
- enable and facilitate the sale of up to one-third of the Commonwealth's
equity in Telstra, while requiring the Commonwealth to retain the remaining
two-thirds;
- set ownership limits in relation to the one-third equity in Telstra
which can be held by other persons than the Commonwealth;
- enable remedial action to be taken where there has been a contravention
of the foreign ownership limits.
Other aspects of the Bill, that do not relate to financial and economic
aspects, are dealt with elsewhere in the Report.