Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

What I want to do in relation to the debate on the two out of three rule is, first of all, make some preliminary comments, because I think it is important; it certainly is a very important part of the structural underpinning of these diversity protections. The purpose of the amendments is to amend provisions in the bill to prohibit the control of more than two out of the three regulated media platforms of print, free-to-air television and radio. This so-called two out of three rule will prevent three-way mergers. Amendments (1) and (2) define an unacceptable control situation as being one where a person is in a position to exercise control over all three types of regulated media and provide that a breach of the rule could result in the pursuit of civil or criminal penalties by ACMA should prior approval for any breach not have been successfully obtained by the person undertaking the transaction. The legislation also contains an amendment that provides that remedial directions may be issued by ACMA for the correction of an unacceptable three-way control situation.

Amendment (8) provides for an extension of the amount of time allowed for an unacceptable three-way situation to be corrected in appropriate circumstances. Amendment (14) allows ACMA to accept written undertakings that the person undertaking a transaction will take specified action to ensure that an unacceptable three-way control situation does not exist in relation to the licence area of a commercial radio broadcasting licence. Amendment (19) will enable ACMA to apply to the Federal Court for an injunction to restrain a person from engaging in any conduct that would result in an unacceptable three-way control situation coming into existence in a commercial radio broadcasting licence area. Of course, there are further technical amendments.

This measure will prevent the establishment of potentially dominant three-way media groups. The government think that that is an important structural additional safeguard in this package of legislation, in addition to the voices test, because it provides a limit on the types of mergers as well as the number of them. In respect of Senator Conroy’s specific question, my very clear understanding is that it certainly does not change the floor of either four voices in regional areas or five voices in metropolitan areas. It is an important provision that will prevent undue concentration and protect diversity.