"As far as I am concerned, there will be no sale of Telstra out of the hands of the government," Harradine told Australian Broadcasting Corp radio.

"I have always had a position on Telstra which is, generally, that the asset should be in Australian hands. You can take it from me, there is no intention on my part, and I would not, vote for the full sale of Telstra."

The Liberal-national coalition government sold one-third of Telstra in November and plans to sell a further 16 per cent if it wins the October 3 election. The government is funding a number of election promises out of Telstra's further privatisation.

The remaining 51 per cent could be sold later pending an inquiry into whether Telstra is meeting its service standards.

Harradine said he would only consider the further16 per cent sale if he was convinced that a sell-off would be better than the Labor opposition's plan to invest 35 per cent of the annual Telstra dividend to fund infrastructure development and jobs. "I wouldn't hold your breath over 16 per cent," he said.

"The hurdles would have to be pretty high and there would have to be a substantial dividend to, particularly, states like my own (Tasmania)." However, Harradine added he did not believe the states would receive a very significant payment.

Harradine shares the balance of power in the upper house senate with independent senator, Mal Colston. The government depends on their votes to achieve the 39 seat-majority it needs to pass legislation in the 76 seat senate.

Harradine supported the legisltion when the government first introduced it in July, but it was defeated by Colston. "My vote on the last occasion was very qualified, in the sense that the legislation was not going to be proclaimed until after the matter had been taken to the people," hesaid.

Harradine also said he would want to see a full government inquiry into the "pros and cons" of the government's plan for a 10 per cent goods and services tax -- the key plank of the government's re-election campaign.

"The government must learn that I've always opposed a GST. But they are entitled to go to the people with that."

Harradine is currently up for re-election, though his term does not expire until June 30, when the new elected senators take up their position. The government, if re-elected, would push the Telstra bill through the senate before the changeover to ensure it would not be adversely affected by any change in the balance of power.