Australian Government in no rush to sell Telstra stake

1.30pm

CANBERRA - The federal government's plan to fully privatise Telstra could take years to complete, Treasurer Peter Costello said today.

Mr Costello said the government was in no rush to sell its 51.05 per cent stake in Australia's biggest telecommunications company.

He also told The Sunday Telegraph that Telstra's services in the bush were still not up to the standards demanded by the Nationals.

"If you got legislation that allowed you to offer the remaining equity for sale, you wouldn't necessarily do it straight away," Mr Costello told the newspaper.

"You'd have to wait for proper market conditions.

"You'd have to satisfy yourself that services were up to scratch."

Mr Costello said the government favoured selling its remaining shareholding in Telstra in tranches, similar to the earlier offerings known as T1 and T2.

The government has had its plans to sell its stake in Telstra blocked by the Senate twice.

Now that the government looks likely to win control of the Senate it should be able to have its plan approved.

- AAP