Sol Trujillo felt like 'stepping back in time' in Australia. And Victorian Premier John Brumby said the comments appeared to be nothing more than sour grapes.

"I don't know what he's talking about, frankly," he said.

Mr Trujillo, who earned millions at the helm of the one-time taxpayer-owned telecommunications giant, cited what he described as "restrictive" historical immigration policies and "events over the past five or 10 years" that the report did not specify.

"I would say that Australia definitely is different [from] the US. In many ways it was like stepping back in time," he said in the interview, which was broadcast in part by ABC Radio this morning. He said he was sure that would continue. "But my point is that [racism] does exist and it's got to change because the world is full of a lot of people and most economies have to take advantage - including Australia - of a diverse set of people. "If there is a belief that only a certain people are acceptable versus others, that is a sad state." Mr Trujillo's tenure at Telstra was characterised by controversy, including a scuffle with the Federal Government over the national broadband network and a sharp fall in the share price of the widely owned stock.



When Mr Trujillo's resignation was announced recently, Prime Minister Kevin Rudd gave this simple response: "Adios.'' Mr Trujillo has described Mr Rudd's use of the term as racist.

During his time at Telstra, American-born Mr Trujillo, who has Mexican heritage, was often portrayed as Mexican. He was referred to as one of the "three amigos" running Telstra and his battles with governments were sometimes referred to as Mexican stand-offs. Opposition communications spokesman Nick Minchin today said Mr Rudd's use of the term was inappropriate.

"The regular references, by a variety of commentators, to Mr Trujillo's Mexican background during his tenure in Australia were quite rude and uncalled for,'' Senator Minchin said.

"In particular, the Prime Minister's 'adios' remark upon Mr Trujillo's departure was contemptuous, rude, sneering and entirely inappropriate for an Australian prime minister and former diplomat.''

Mr Brumby said Mr Trujillo had been welcomed to Australia. "He's an example, he came here from overseas and he had a great job, he was awarded that job, there was no discrimination or prejudice against him ...

"I couldn't agree with his comments at all. Our country is the multicultural capital of the world. In our state we've got 44 per cent of our population born overseas, or one of their parents overseas. We are the land of opportunity."

Mr Blunt said he thought the "culture of Australian society and business is quite open and accepting of new ideas". "The whole country has a history of adopting foreign ideas from overseas readily ... The only qualification is that they have to prove themselves to be good ideas." Other business groups contacted by BusinessDay declined to comment on the controversial issue today. Jack Passaris, chairman of Ethnic Communities' Council of NSW, said racism existed everywhere "but here in Australia, it's exactly the opposite". "The majority of people have learned over the years to respect each other," he said. "We don't have any problem at all and I can say that with authority."



Stepan Kerkyasharian, president of the Anti-Discrimination Board of NSW said Mr Trujillo was wrong "because Australia has got some of the most progressive anti-discrimination laws in the world". "Racism exists somewhat in every society," he said. "One measure is by the laws and regulations a country has. In Australia we have strong anti-racist and anti-discrimination laws." Mr Kerkyasharian said he did not know what Mr Trujillo's motivations were in claiming Australia was racist. "There is a general feeling in the Australian community that he probably had some sense of superiority. I cannot find any other reason he would make the kind of allegations he has made about Australia being racist," Mr Kerkyasharian said.



Mr Trujillo left Australia this month, weeks before his expected departure date on June 30. "Many Australians have come up to me and they've apologised, because they're embarrassed by that kind of behaviour," Mr Trujillo told the BBC of some of the criticism he had received during his stay. Loading A spokeswoman for Mr Rudd told the ABC that Mr Trujillo's statements were ridiculous comments that would disappoint Australians who welcomed him to this country.

BusinessDay's Gabrielle Costa, Chris Zappone and AAP

