Wednesday, 7th September, 2005

Many true pictures are drawn in jest and none are better at it than "The Australian's" Bill Leak. He has a magical way of getting to the nub of a matter and this morning's effort is a classic. It exposes the hypocrisy of a Government desperate to get as much as possible for selling off its Telstra asset while ensuring all and sundry that telecommunications competition will be enhanced not lessened. No wonder that Prime Minister John Howard was backtracking today from his criticism yesterday that "it is the obligation of senior executives of Telstra to talk up the company's interest, not to talk them down. That statement had left Mr Howard open to the charge made by investment fund manager Peter Morgan of being what you would expect from one of the corporate rogues of the 1980s – not the leader of Australia."

Today Mr Howard was talking about maintaining full confidence in Telstra's board. "I have been critical of certain statements and particular behaviour by some," Mr Howard said. "I continue to have confidence in the board. The board has chosen Mr Trujillo and I am perfectly happy to the extent that we need to work together, and bear in mind ... because the company operates under the Corporations Act, we don't have to work on a day-to-day basis. The board has chosen him, the board has responsibilities in relation to him. My criticism has been in relation to comments and conduct which has not promoted the interests of the company. I am not asking anybody to tell lies about the company, that's absurd, I never said that, but I think it's the obligation of senior management not to make comments that are not positive for the interests of the company."