10 October 2006

Consumers and competition abandoned by Labor

The Labor Party today admitted that if they were in Government they would abandon the safeguards that protect telecommunications consumers to bolster Telstra’s share price, Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, said today.

“This is a black day for Australia with the Labor Party prepared to sell out Australian telecommunications consumers in an attempt to score some cheap political points with Telstra shareholders,” Senator Coonan said.

“In a motion moved in Parliament today Labor said it did not support telecommunications regulation because it “hurts the prospects of the company (Telstra)” and “threatens the company’s earning prospects”.

“So Labor has admitted it will abandon consumers and competition in the interests of the dominant and most profitable telecommunications provider in Australia.

“Labor must come clean and make clear which regulatory protections it will dump. Is it the Universal Service Obligation which ensures Australians can access a fixed line and payphone, the Customer Service Guarantee which guarantees time frames for repair of phones, the price controls on phone calls and line rentals, local call rates, capped monthly line rentals or the competition laws?” Senator Coonan said.

“Labor will wind back the consumer safeguards and competition laws in Australia. This should send alarm bells ringing for consumers, who will suffer as a result of less competition and less choice.

“This Government has been a committed supporter of a competitive marketplace because competition is the best means of delivering lower price and more choice for consumers. Telecommunications prices have fallen overall by more than 26 per cent under this Government’s competitive framework and there are now around 150 telecommunications providers in Australia offering choice of service and choice of price.

“Labor will leave Australians telecommunications consumers stranded without important regulatory protections. This is why Labor cannot be trusted in Government.

“In contrast, this Government has a policy of promoting a competitive telecommunications industry, supported by strong consumer safeguards and establishing a strong vibrant industry, not just a maintaining a monopoly at the expense of consumers.”