| THE HON DARYL WILLIAMS AM QC MP MINISTER FOR COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS |
SENATOR THE HON NICK MINCHIN MINISTER FOR FINANCE AND ADMINISTRATION |
TELSTRA TO DELIVER MORE SERVICE IMPROVEMENTS AND
SHAREHOLDER BENEFITS
21 June 2004
The Minister for Finance and Administration, Senator Nick Minchin, and the Minister for Communications, Daryl Williams, today welcomed Telstra's announcement regarding its corporate strategy and its new capital management plan.
"Telstra has been focused on improving telecommunications services, especially in regional Australia, and I welcome the recommitment to further improving customer service in its existing markets," Mr Williams said.
"This announcement confirms that Telstra is focussed on the job of continuing to provide its customers with the quality of service and range of products that they expect.
"Telstra correctly recognises that it must not only maximise the performance of existing networks, but needs to make new technologies available to consumers across Australia."
The Government also welcomes Telstra's announcement that it intends to return $1.5 billion to shareholders each year for three years through a combination of share buybacks and special dividends.
"Telstra's 1.7 million shareholders have been given greater certainty with the company's commitment to capital return over the next three years," Senator Minchin said.
"The budgetary implications for the Commonwealth will depend on the split between special dividends and share buybacks in each year.
"The question of whether the Commonwealth participates in any buyback would be determined on a case by case basis, consistent with our longstanding principle that we would only sell our Telstra shares where we can obtain an appropriate return for taxpayers."
Media contacts:
Carina Tan-Van Baren (Mr Williams) (02) 6277 7480/ 0439 425 373
Jennifer Eddy (Senator Minchin) (02) 6277 7400/ 0419 432 664