Can anyone see a Labor line on Telstra – other than it is rank
opportunism? Labor is riddled with contradictions on it. We want the share
price up, though competition and pro competition regulatory reform will
inevitably see the price go south. The market loves private monopolies – the
market is merely discounting the fact that Telstra may face some more
competition. And so Telstra bloody should.

The next Labor line? Telstra shouldn’t be paying special dividends –
invest in the business. Well, commercial companies – and after all that’s what
Telstra is and has been for some time now – often borrow to pay dividends to
encourage buyers of the stock. It’s common market practice, though to be fair,
it’s not a long term solution. Far better to pay extra dividends from better
profits, or maybe even rationing investment, but, hey, Labor wouldn’t like this
too much would it? How do you get better profits (and better returns to
shareholders)? You cut costs and/or cut back wasteful investment – not piss it
up against the wall with deals to unions or telco wires to nowhere. Which if I
hear it right, is exactly what Labor and especially the shadow shadow Minister
for Communications, Lindsay Tanner would want Labor to do.

And what about the Telstra management? These US imports are just
out and out private monopolists – whining that they may have to earn their keep
by turning around a basketcase. Let’s be honest – Telstra is a fat, bloated
monopoly and majority government ownership has given us this. That’s right – a
majority govt owned business. The execs get paid handsomely to run fat,
bloated monopolies and that’s why they want it to be a fat, bloated private
monopoly. Labor shouldn’t be in the corner of these characters, they should
have them face the market. If your poor basic staff has to face IR reform, then
so should these management types.

What Telstra and its pathetic management needs is a commercial whack –
and privatisation and competition together will give it to them. Labor should
stop with its rank opportunism and work this out.