This is being written while Cabinet is
meeting – but it’s fascinating to see the movement in the last 24 hours
on the Telstra front.

Communications Minister Helen Coonan says she’s confident
that her $3 billion plan to provide for telecommunications services in
regional Australia will be accepted in Cabinet today. Meanwhile,
Queensland Nationals’ president and former minister Bruce Scott says the plan may bring the party closer to supporting the full sale of Telstra.

Coonan’s
proposal includes an immediate $1 billion upgrade to services in
regional areas, and revenue from a $2 billion fund for future needs.
Scott says this will attract significant extra money from the carriers.
“We could be having the effect of a $5 or $6 billion fund, given the
amount of money that could be leveraged from the private sector in
partnership with the Commonwealth,” he said.

The Nats have asked
for $5 billion. “The Government suggested $2 billion. Now we’re around
the three billion mark…” – but what’s a few bucks between Coalition
buddies, hey? It’s amazing how governments can pull this money out of
the hat when they need to, isn’t it?

Even Barnaby Joyce is being positive. He appeared on Radio National this morning
saying he was much encouraged by the proposed $3 billion regional
telecommunications package – although he does not fully endorse it.

However,
he’s given himself some vital and important wriggle room. One week of
Parliament and he’s already learned a lot about politics. Joyce said
the political reality was that the government could conceivably bypass
his opposition – possibly using Family First Senator Steve Fielding –
with the result that the bush would get nothing.

He pointed out
that with just his one vote, he might not might not be able to block
the sale even if he wanted to. “We have one vote and even that one vote
that holds it up can be got around,” he told Fran Kelly. “What you
might end up with is purely a moral victory with the thing being sold
and getting nothing for it.”