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Costello: no tax cuts from Telstra sale
The Age
By SIMON JOHANSON
Thursday 7 February 2002

Federal Treasurer Peter Costello said today the government would not use any windfall from the further sale of Telstra to build a war chest for tax cuts at the next election.
Mr Costello was responding to an article in this week's Bulletin magazine which claimed the Howard Government's secret third term agenda was to fully privatising its 50.1 stake in Telstra and using the sale's estimated $50 billion profit for tax cuts.
He told ABC radio this morning it was no secret the government was committed to the full sale of Telstra once service obligations had been met in regional areas had been met.
"It's no secret that the government policy, after fixing up services in the bush, is to proceed with private equity in relation to Telstra," he said.
"But the rest of it about tax cuts is obviously false because we've always said that if you've had the proceeds of assets sales you should use them for either retiring debt or building assets.
"I can't see that we would be interested in that for a moment."
Mr Costello said it was possible to ensure Telstra complied with its commitments in regional areas in the future by placing community service obligations on the company.

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