CANBERRA - Australia's opposition Labor Party will ask telecommunications giant Telstra Corp to sell its 50 per cent stake in the nation's biggest pay-TV firm if it wins office in the October 9 election.
Labor communications spokesman Lindsay Tanner said his party agreed with the Australian Competition and Consumer Commission's view
that Telstra, which is 51 per cent owned by the Government, should sell its Foxtel share to make the industry more competitive.
"To encourage greater competition and diversity in our communications sector, Labor will ask Telstra to divest itself of its 50 per cent stake in Foxtel," Labor said in its broadcasting policy released yesterday.
The other Foxtel shareholders are Kerry Packer's Publishing and Broadcasting and Rupert Murdoch's News Corp, each with 25 per cent.
Shares in Telstra ended down 1 per cent yesterday at A$4.64 in a flat overall market.
Labor also said it would finalise its policy on a possible fourth commercial television licence and commercial television multi-channelling after current broadcasting reviews are completed.
The party also said it supported the retention of cross-media ownership laws, but would consider easing foreign ownership restrictions as "one possible way of achieving greater diversity and choice".
Under present rules, a television licensee cannot own more than 15 per cent of a newspaper in its licence area, and vice versa. Foreign companies cannot own more than 15 per cent of a TV station or 25 per cent of a major newspaper.
John Howard's Government, polling neck-and-neck with Labor as it seeks a fourth term, tried to loosen the cross-media laws, but the move was blocked in the Senate, where it is in a minority.
- REUTERS
Herald Feature: Australian Election
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