Australia’s Media Reform Under Scrutiny

SYDNEY: Several Australian networks, including Ten Network and Seven, have taken issue with proposed media reforms that would allow a merger between Nine Entertainment and much of the Southern Cross Media Group.

The free-to-air Ten, Nine and Seven have welcomed parts of the changes but disagree with others. The plans include a new public-interest test for significant media company takeovers and mergers. The power to determine if media mergers could proceed would be given to the government appointed advocate; a regional-reach rule would be scrapped that would assist Channel Nine in a proposed $4 billion merger with Southern Cross.

Plans are also for a new media watchdog to oversee the industry’s self-regulation. Another part would see commercial TV license fees permanently cut by 50 percent on the condition that channels increase their commitment to Australian content by 1,490 hours by 2015.

Ten said its supports the lower license fees and changes to local content rules. It disagrees, however, with the public-interest test.

Ten Network Holdings’ incoming CEO, Hamish McLennan, said: “We are pleased the Government has moved forward with a permanent reduction in the license fees paid by commercial television broadcasters and changes to the local content regime.
 
“But the decision to send the reach rule issue to a parliamentary committee and for Senator Conroy to ask that committee to conduct an inquiry in just one day is ill-conceived and does not follow appropriate due process.
 
“We are alarmed that this inquiry is being rushed and that the Government thinks it can be done and dusted in just one day. What is the hurry? People living in regional Australia deserve better and should be asking why this is being pushed through with such haste.
 
“The fate of the reach rule is critically important in terms of media diversity and local news services in regional Australia. This is an issue of national significance. It needs to be properly debated. It cannot and should not be dismissed with a quick and dirty one-day inquiry.
 
“The only possible outcome of ditching the 75 percent reach rule—in isolation—will be a reduction in media diversity and a further reduction in news services in regional Australia.
 
“Ten Network’s view of media reform has been consistent: any changes should only be done as part of a thorough consideration of the future of all of the existing rules. Pulling one major policy lever by rushing a change through parliament without looking at the bigger picture is not good media policy. The removal of the reach rule needs to be part of a sensible, comprehensive media ownership reform package, not an ad hoc change.”

McLennan added that Ten Network did not support the Government’s proposed public interest test.
 
“A public interest test, as outlined by the Government, is unworkable and un-necessary,” he said.
 
“It would introduce a high degree of subjectivity to the media regulatory environment. It would create uncertainty. It would create confusion in relation to other regulatory regimes. It would increase the administrative burden on the media industry. The public interest tests introduced overseas, such as in the U.K., have proven to be complicated and impractical.”