Dana Wortley (SA, Australian Labor Party) Share this | Hansard source

I rise to take note of answers provided by Minister Conroy in today’s question time, specifically in relation to the commercial television broadcaster licence fee rebate. The position that has been put by those opposite today makes one wonder whether they do not actually understand the pressures facing the Australian free-to-air television sector and the importance of the sector or whether, in reality, they just do not care.

The rationale for the commercial television broadcaster licence fee rebate in 2010 and 2011 is the protection of Australian content on commercial television. A rebate of 33 per cent will apply to licence fees payable on revenue earned during the period 1 January to 31 December 2010 and a rebate of 50 per cent will apply to licence fees payable on revenue earned during the period 1 January to 31 December 2011.

The government makes no apology for saying that it will protect Australian content on commercial television. This will be done by offering licence fee rebates to broadcasters in 2010 and 2011. The rebate recognises the importance of the Australian content standard in ensuring TV audiences have strong levels of Australian programming. The rebate is also a recognition of the current level of licence fees in Australia compared with those in other countries such as the US, the UK and Canada and of the new technology and commercial challenges facing the sector, including the switch to digital television. This initiative builds on the government’s increase in funding to national broadcasters ABC and SBS in the 2009-10 budget to fund more Australian content. The Australian content standard requires commercial television broadcasters to produce and screen a certain percentage of Australian content, including 55 per cent of total transmission between 6 am and midnight seven days per week. It also provides for the production of Australian drama and children’s programming.

As Australia commences the switch to digital television this year, the commercial television broadcasters will play a key role in delivering the full suite of digital services across Australia. The rebates are just one part of a package of measures designed to address the structural changes facing free-to-air television at a time when media consumption habits are changing because of the rise of the internet and we are making the switch to digital television. The government’s decision to offer a temporary rebate on licence fees recognises the pressures facing free-to-air television broadcasters. Analysts have recognised that free-to-air television is undergoing a significant structural decline. In the face of structural changes and the arrival of the converged media environment, it is important that the government protect Australian content.

As the minister said today, local production is expensive; it costs around $800,000 to produce an hour of Packed to the Rafters or Underbelly. In contrast, it costs only around $100,000 to buy an hour of Two and a Half Men. PBL Media’s chief executive noted in today’s Australian newspaper that local production is expensive and that it can be turned on and turned off. He says:

We can definitely say the licence fee relief has contributed to Nine planning more confidently for more local entertainment and drama production this year and next and in 2011-12.

It will also ensure jobs for Australian actors. It is significant that in Australia we are providing for those skilled performers who will put their faces on Australian television.

Broadcasters will be required to meet their legislated local content quotas in order to receive the rebate. (Time expired)