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Among the issues facing Anderson as National Party leader were the Liberal Party's desire to [[privatization|privatise]] the state telephone company, Telstra, which many rural Australians fear will lead to higher charges and reduced services. Anderson succeeded in delaying any action on this until an inquiry had been held, and until a guarantee would be given that there would be no reduction in services.
Nevertheless, at the [[Australian legislative election, 2001|2001 federal elections]], the National Party lost three seats, two of them to independent MPs, while the Liberals gained seats. As a result, the party had to give up a place in the coalition Cabinet formed after the elections. During [[2003]] there was speculation that Anderson would soon be quitting politics, but in September he announced that he would stay and fight the [[Australian legislative
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