My 2.2 cents (GST Inc.)

It is a real prick when your opinions are taxed. Australia least powerful political blog. (Plus any other crap I want to talk about.)

Thursday, April 06, 2006

Selling Telstra and Medibank Private

Peter Costello has declared that the government will not sell Telstra unless the price is right. I have one simply message for him and the rest of cabinet: "The price is right now". Things are not going to get better for the big telco unless it is split in different sections. The biggest asset Telstra holds is the copper wire network, yet there is no scope for growth in this sector and it is going to cost a lot to maintain. It would be perhaps better if the government retained this side of the business as it is almost a lead weight on Telstra. The listed company could have the mobile, internet, media etc sides of the business which can grow and bring in the real profits.

And they are now looking to sell off Medibank Private. Considering that they are only going to get about $A1 billion for the health fund , it would be perhaps a smart move political for the Government to demutualise as the people most likely to benefit would be the government's support base of upper middle class families. And with surplus as big as it is, another billion is not going to add much to the coffers.


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