Fed: Costello already raiding Future Fund, says Swan

AAP General News (Australia)
08-17-2005
Fed: Costello already raiding Future Fund, says Swan

CANBERRA, Aug 17 AAP - The government's $3 billion rural upgrade package to allow the
final sale of Telstra is financially irresponsible and a sell-out of the bush, Labor claims.

Opposition treasury spokesman Wayne Swan said Treasurer Peter Costello's comments on
the package showed he was more interested in the politics of selling Telstra than the
national interest.

Mr Costello forecast an early resolution to the Telstra sale dilemma after outspoken
Nationals senator Barnaby Joyce signalled his support for cabinet's plan for rural telecommunications
investment.

The plan includes $1 billion to improve broadband internet services and a $2 billion
trust fund for future upgrades.

But Mr Swan said the package would raid another fund, the Future Fund, which the Treasurer
had earlier said would not be touched.

"This morning we see that Peter Costello has gone soft on financial discipline," Mr
Swan told reporters.

"His Future Fund has been raided to the tune of $3 billion and, over the life of the
fund, this will cost $6 billion.

"Peter Costello is more interested in his own job than he is in the national interest.

"He's focusing on John Howard's job. He's not protecting the national interest, he's
not providing financial discipline, he is just supporting a National party slush fund.

"He's not out there protecting the budget."

Mr Swan said there were no guarantees that telecommunications in rural areas would be improved.

"There are no guarantees that services in rural or regional Australia will benefit
and no guarantees for the rest of the country," he said.

"That's why I say the national interest has been sold out in the political interest
of a section of the government."

AAP dep/sb/jt/sd

KEYWORD: TELSTRA SWAN

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