Crikey political correspondent Christian Kerr writes:

The sale of Telstra has been given the go-ahead early this afternoon, with John Howard announcing that a joint party room meeting has approved the sale. He said the sale legislation will be introduced when parliament resumes in two weeks time. Although the exact timing of the sale is yet to be determined, the Government will offload its 51% stake in the telco at a “propitious time,” probably late in 2006.

Mr Howard said the decision was for the “benefit of all Australians” and “reflects a fundamental reality. That is, it is quite counter-productive, and not in the country’s interest, for the Australian Government to own half of the largest company in Australia.”

Mr Howard said a $1.1 billion fund called Connect Australia would roll out additional services including improved broadband and services for indigenous Australians. There will also be a $2 billion trust fund to raise revenue to plug telecommunications shortfalls. Money from the fund will be administered independently but the Government will have final say on spending proposals.

Before this morning’s joint party room meeting, which broke up less than an hour ago, the Nats held a special party room meeting to discuss the Telstra sale. And as it was happening their country cross bench cousins were fighting a desperate rearguard action.

Tony Windsor, the Independent MP for New England, let rip this morning saying that “this indicates to me that the National Party is not only prepared to offer bribes, it’s prepared to accept them.” Windsor, along with fellow independent Peter Andrew and apostate Nat Bob Katter attempted to suspend parliamentary proceedings to force the government to debate the proposed sale of Telstra this morning.

The three, led by Andren, moved a motion in the House condemning the government for agreeing to the full sale of Telstra “in the face of overwhelming public opposition,” condemning “the totally inadequate universal service obligation funding…and the government’s continued ignoring of the Productivity Commission’s 2001 inquiry into telecommunications regulation that supported the then Australian Communications Authority’s belief that half a billion dollars per annum was needed to maintain and enhance the network.”

They also demanded that the government implement an immediate re-investment strategy from existing income streams to ensure adequate telecommunications infrastructure and affordable services for all Australians, wherever they live, and called on all country representatives to oppose the Telstra sale legislation.

The government gagged Andren and Windsor, who seconded the motion, then used its numbers to defeat the motion 79-61.

Labor, meanwhile, is focusing on the outer suburbs (yup, they never forget Gough). They claim services in city fringes are being left behind as the Government makes nice to the Nats, and are warning of the consequences for Liberal MPs like Jackie Kelly.