Telstra sale in doubt as key Australian government figure wavers

0 Comments | AFP, September, 2005

SYDNEY (AFP) — Fresh doubts have emerged over plans to fully privatise Australian telecom giant Telstra, when a key government figure said his support for the sale was wavering.

National Party Senator Barnaby Joyce effectively holds the balance of power in the Senate and legislation allowing the sell-off cannot pass without his support.

Although Joyce is a member of Prime Minister John Howard's Liberal-National coalition government, he said he will only back privatisation if he is convinced that unprofitable services to rural areas will be maintained.

The government thought it had secured his vote last month with a multi-billion dollar package to upgrade rural communications services but Joyce said Friday that he had new questions about the proposal.

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