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

I am continuing the remarks I commenced yesterday evening. The Australian Broadcasting Corporation Amendment Bill 2006 is intended to give effect to the abolition of the staff-elected director position as close as possible to the expiry of the term of the current staff-elected director. The abolition of the staff-elected director position has nothing to do with any particular individual—and I want to make that very clear. The fact that the restructure is taking place at the end of the current incumbent’s term and before the commencement of the next elected director’s term is a clear indication that this is not about individuals.

Senators from the other side have stated during this debate that the abolition of the staff-elected director will be likely to impact on the independence of the ABC. This assertion is incorrect. The removal of the staff-elected director will in no way impact on the independence of the ABC. In fact, the independence of the ABC is enshrined in legislation. Section 78(6) of the ABC Act states:

... the Corporation is not subject to direction by or on behalf of the Government of the Commonwealth.

Further, paragraph 8(1)(b) of the ABC Act makes it a duty of the board:

... to maintain the independence and integrity of the Corporation ...

Accordingly, it is the duty of all board members to maintain the ABC’s independence and integrity irrespective of the existence of a staff-elected director position. As I have stated previously, SBS does not have a staff-elected director and I am not aware of any substantial concerns that the SBS board has failed to maintain the independence and integrity of SBS as required by the corresponding provision in paragraph 10(1)(a) of the SBS Act.

One of the arguments raised by opposition senators in favour of retaining the staff-elected director is that previous staff-elected directors have been influential in preventing decisions that would have been damaging to the ABC, such as the sharing of ABC content with Telstra. While it may well be that these individuals played a role in those decisions, I note that the ultimate decisions were decisions of the whole board and that, without detailed knowledge of the workings of the ABC board, it is very difficult to accurately apportion credit for any particular decisions.

Senators on the other side have raised the issue of the consideration of staff issues by the ABC board. The ABC chairman has indicated publicly that the ABC board and management will continue to take staff interests into account, as they do now. Further, the managing director, who is appointed not by the government but by the board, is a full member of the ABC board and a conduit between staff, management and the board. The heads of the ABC divisions also report regularly to the board. Obviously, other than having a staff-elected director, there are ways by which the board can consult with ABC staff about issues that concern them.

During the debate, much has been made of the previous experience of directors on the ABC board. I would like to draw the attention of the Senate to the criteria set out in section 12(5) of the ABC Act regarding the process by which the government appoints ABC directors. One of the criteria is:

... experience in connection with the provision of broadcasting services or in communications or management ...

Several of the current board members have experience in connection with broadcasting. For example, the deputy chair, Mr John Gallagher, was a director of a regional television broadcaster, Mackay Television, for 16 years, from 1971 until 1987. Mr Steven Skala was a director of the Channel 10 group from 1993 to 1998. That being said, there are a number of ways the board can have regard to practical broadcasting experience in making decisions irrespective of the board membership. To say that the ABC board is deficient in broadcasting experience is a tenuous argument at best.

The government seeks to meet the criteria set out in the ABC Act and to ensure that the members of the ABC board have a mix of skills appropriate to the running of a modern corporation. There are suggestions in the submissions to the Senate committee—and this is now the subject, as I understand it, of an amendment moved by the Australian Democrats—that the ABC’s board appointments process be changed to one resembling the method used for appointing governors of the BBC, involving what in substance are called the ‘Nolan rules’. Despite the assertions from the other side, some recent appointments to the BBC have, sadly, not avoided controversy and allegations of political appointments.

The government is committed to an independent, successful ABC that delivers high-quality programming to Australian audiences. This commitment was emphatically illustrated with the government’s announcement last night of an increase to ABC funding of $88.2 million for new initiatives over the next three years. This will bring the ABC’s total government funding for the 2006-09 triennium to more than $2.5 billion.

Specifically, the ABC will receive $45.1 million to purchase new equipment, which of course recognises the march to digital. In addition, $30 million will be spent over three years to boost Australian television content through the establishment of an independent commissioning arm. Also, the very successful regional and local programming initiative, which assists with regional program production on ABC television and radio, will be provided with an additional $13.2 million over the next three years, which brings a total increase in funding for the initiative of $68.7 million over the triennium. That recognises the costs of simply being the ABC.

The increased funding announced is a clear demonstration of the government’s ongoing commitment to the ABC. The removal of the staff-elected director, which was in many respects an anomalous position, in no way compromises this government’s commitment to the organisation. The government has taken a decision to abolish the position of ABC staff-elected director for the sound reasons that I have outlined. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.