The Senate has passed the legislation authorising the full sale and operational separation of Telstra after Nationals senator Barnaby Joyce voted with the Government.

ABC News quoted Greens senator, Bob Brown, saying "It's a shameful day for the Senate, it's a shameful day for democracy and it's a shameful day for communications in this country."

Democrats senator, Andrew Bartlett, also slammed the Government, saying: "They couldn't give a toss about the public, they don't care what the impact is."

ABC News quoted shadow comms minister Stephen Conroy, saying: "This Government is bordering on corrupt in its dealings with public monies."

It reported that Joyce, who went to hospital the hight prior complaining of chest pains was jeered as he entered the chamber for the vote.

The Government's announcement, a masterpiece of spin, focused not on getting the OK to flog Telstra, nor the new regulatory legislation but on the money for rural communications which has been dragged out of it in recent weeks by the Nationals as the price of securing Joyce's vote.

Communications minister, Helen Coonan's words, however suggested that the $3 billion funding for rural communications was the result of the Government's initiatives. "This is an historic day. Not only has the Government achieved legislative authority to implement its long standing and long stymied commitment to full privatise Telstra but we have secured more than $3 billion to ensure Australians have adequate telecommunications services both now and into the future," she said.

Her press release devoted its headline and six paragraphs to the $3 billion funding and just two to the controversial operational separation rules and other regulatory changes. "The Bills passed by the Senate also cement and augment (how do you augment something that is set in concrete?) significant regulatory and consumer safeguards. The Government will now introduce operational separation of Telstra's internal operations to deal with ongoing concerns about Telstra's high degree of integration; improve competition regulation."

Far from dealing with these concerns the new rules have only exacerbated them.

T3 itself rated barely a mention: "The Government will consider whether and when to sell its remaining shareholding in Telstra next year."