Telstra sale on to Australian parliament agenda

CANBERRA - Draft laws to sell the remainder of Telstra will be introduced to federal parliament here this week.

And the Australian government is expecting a long debate, despite having won the crucial vote of key Nationals senator Barnaby Joyce.

Communications Minister Helen Coonan will introduce the sale legislation into the Senate this week and wants to have a vote taken by the end of the September sitting fortnight.

Senator Coonan has also warned Telstra executives concerned about the level of regulation imposed on the telco that their comments could be reported to the Australian Stock Exchange.

The government has been engaged in a war of words with Telstra since its senior managers led by its new chief executive, Solomon Trujillo, claimed recently that the telco is over-regulated and needs to become more competitive in some areas.

Mr Trujillo's right-hand man, Phil Burgess, also warned that Telstra's share price could drop to A$3 ($3.27) because of planned tougher government regulation and competition laws once the telco is fully privatised.

Senator Coonan says the stock exchange might have to be informed about their recent complaints about excessive government regulation.

But Opposition Leader Kim Beazley says she should end her "unseemly" debate with the executives and accept that now is not the time to privatise the telco.

- AAP