Fed: Telstra and change are inevitable, says McGauchie

AAP General News (Australia)
04-28-2000
Fed: Telstra and change are inevitable, says McGauchie

MELBOURNE, April 28 AAP - Technological change and Telstra's 100 per cent sale were
"desirable, inevitable and irresistible", Telstra director Donald McGauchie said today.

Regional communities having trouble coming to terms with changes in the types of services
being offered by Telstra and banks had to learn to cope, the former National Farmers'
Federation president said.

"There is pressure of all sorts on people to provide services ... how those services
are provided are a different issue," Mr McGauchie said.

Drawing from his own experience, he told the Rural Press Club in Melbourne he had received
the best service he had ever received from his bank over his personal computer at home.

"Years ago, you had to make arrangements with the local pub to pay the shearers," he said.

"The services that are available are different - you don't have a (branch) accountant
... you don't have a teller ... and that's what's changed, not the level of service.

"The technology has changed the nature of the service ... people are not complaining
about the level of service but that the type of service has changed and changed their
way of life.

"Life changes ... just get real ... we have to cope with those in their reality and
not go back to the dreamtime."

Mr McGauchie, who strongly urged the full "sale-down" of Telstra, said the federal
government would have stronger control over the national communicator as a regulator than
as a major shareholder.

"The government's power as shareholder ... is miniscule; its power as regulator is
overwhelming," he said.

"As shareholder its position is pretty weak. As regulator, its power is overwhelming."

However, while strongly promoting Telstra's sale as "inevitable, imminent and irresistible"

he refused to be drawn on a definite "when", preferring to talk up the "why".

"I have no idea when (it will happen)," he said.

"Telstra as a company should grow to be a flagship of this country and I have to say
... I fully support the further sell-down to allow the company to achieve the sort of
potential it has to achieve.

"The policy to sell the remainder of the government's share in Telstra will allow the
company to grow in a fast-changing and highly competitive market."

AAP ag/jd/was

KEYWORD: TELSTRA MCGAUCHIE

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