Wed, Aug 10, 2005 - Page 5 News List

Cracks in Australian parliament show

AP , CANBERRA

Australia's parliament resumed yesterday with the government in control of both houses for the first time in 24 years -- but signs of dissent have already started to emerge within the ruling coalition as to how it should wield this newfound power.

The ruling center-right coalition intends to use its single-seat majority in the Senate to push through a raft of legislation including laws that opposition lawmakers have repeatedly blocked during Prime Minister John Howard's nine-year rule.

But lawmakers in the Nationals party, the junior coalition partner, have warned the dominant Liberal Party that it will have to make multi-billion dollar pledges to rural Australians as a trade-off for its support in the Senate.

The rural-based Nationals are concerned that telephone and Internet services in regional areas could lag further behind those in cities if the government sells its majority stake in Australia's largest telecommunications company, Telstra Corp.

Senior Liberal figures have said they might agree to establish a A$2 billion (US$1.5 billion) trust fund to ensure country services are maintained, from the expected A$30 billion (US$23 billion) proceeds from the sale.

But Nationals senator Barnaby Joyce, who was sworn in Tuesday, has threatened to vote against the government on the sale, saying as much as A$5 billion (US$3.8 billion) might be needed.

Liberal lawmaker Alex Somlyay warned that Joyce's posturing over Telstra verged on blackmail.

"There's a very thin line between horse trading and blackmail and I don't know whether he's stepped over that line or not yet," Somlyay told reporters.

Arriving at Parliament House yesterday, Joyce, a former country town accountant representing Queensland state, said he expected "a fight" with Education Minister Brendan Nelson over the government's plan to make participation in student unions voluntary at public universities.

At present, all university students have to pay union fees to cover the cost of all campus services including child care and sporting clubs.

But the Nationals fear that making the fees voluntary would harm the economies of rural campuses.

Nationals Senate leader Ron Boswell said his party wanted the government to pay grants to universities in the country to compensate for the shortfall in union fees.

A total of 14 new senators were sworn yesterday in the 76-seat Senate.

This story has been viewed 1797 times.
TOP top