Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Abetz for his question. The ABC, as he would be aware, currently provides the Australian Network international television service under contract through the Department of Foreign Affairs and Trade. On 23 November 2010, the Minister for Foreign Affairs, the Hon. Kevin Rudd MP, announced the government's decision to open a public tender for a 10-year contract for the Australia Network. A competitive tender process ensures the best return on the government's investments. Moving the Australia Network service to a 10-year contract will provide greater certainty to the service provider. The tender opened on 4 February 2011 and initially closed on 25 March 2011.

The government has approved a maximum of $223.1 million for the contract, excluding GST, which represents the current contract cost of $94.2 million over five years with an adjustment for inflation. In light of changed international circumstances since the request for tender was issued, the government has decided that national interests should be addressed more broadly. Tenderers have been asked to submit amended bids to specifically address how their operation of the Australia Network service would meet Australia's national interests in light of the increasing influence of key emerging markets on the global economy. Given the significance of the tender to Australia's national interests, the government considers that the decision should be taken at a ministerial level. As I have responsibility for broadcasting and communications policy, the government decided that I was the most appropriate minister to take on the approver role. Prior to this decision, I had no role in the process. However, this process will continue to be administered— (Time expired)