Lyn Allison (Victoria, Australian Democrats) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table the explanatory memorandum and have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

The Special Broadcasting Service (Prohibition of Disruptive Advertising) Amendment Bill 2008 will prohibit the interruption of programs by advertisements and station promotions on SBS television.

The bill puts the prohibition into effect by amending Section 45 (2) (a) of the Special Broadcasting Service Act (1991) to omit the phrase ‘or during natural program breaks’. It does not prevent SBS from generating advertising revenue nor from running advertisements and station promotions between programs.

Beginning in the 1970s under the Fraser Government, the Special Broadcasting Service was the first multicultural broadcaster in the world. From the outset SBS was a public, tax-payer-funded broadcaster to niche audiences. It did not chase ratings and advertising was not permitted.

In 1991 a Labor Government introduced the Special Broadcasting Service Act, permitting commercial advertising and SBS became a corporation with a board and a charter.

The charter of SBS as provided under the Act states: ‘the principal function of SBS is to provide multilingual and multicultural radio and television services that inform, educate and entertain all Australians and, in doing so, reflect Australia’s multicultural society’.

Advertising to a maximum of five minutes was permitted under the Act but confined by the then SBS Board to between programs.

Members of the SBS Board were initially appointed as representatives of the community that SBS was established to serve. However, over time the decline in real terms in government funding and the appointment of more board members for their business credentials has shifted SBS to a more commercial footing.

The switch to mid program advertising was approved by the SBS Board in June 2006 and was estimated to increase advertising revenue by approximately $10 million in the first full year of its operation. According to the SBS media release of 1 June 2006 the change will ‘… enable a boost to its news and current affairs programming and increase the production of Australian multicultural drama and documentaries.’

The Chair of the Board, Ms Carla Zampatti said “This decision has been under consideration for some time as part of SBS’s on-going review of its business model and reflects the significant changes in the broadcast market.”

In the current financial year SBS will supplement the $188 million it receives in Federal Government funding with around $46 million of advertising revenue, all of which, according to SBS, is spent on program content. Again quoting the media release, the Board said:

‘With additional [in-program] advertising revenue, SBS will:

• Launch an expanded one hour nightly news bulletin (6.30pm-7.30pm), with increased Australian and international news coverage, commencing in early 2007; and
• Increase its commissioning of Australian multicultural drama and documentaries and other programs in accordance with its Charter obligations.’

However, it is argued by critics that SBS Management’s recent decision to use most of this $10 million to produce a local version of the cult British motoring program Top Gear would not appear to be consistent with SBS’s charter obligations of providing multilingual and multicultural services.

The danger with expanding advertising on a public broadcaster such as SBS is that the integrity of its programs will be undermined, not just by advertising per se but because many of the programs run by SBS are produced by non-commercial entities such as the BBC that were not intended for commercial television and so do not have scheduled breaks. SBS has been criticised for inserting in-program advertising and station promotions in these programs at points where there is no real break, scheduled or ‘natural’.

Over 7,500 people have signed petitions in protest at the new SBS advertising policy. The new Communications Minister, Senator Conroy suggested when in Opposition that such changes may be illegal under the terms of the SBS Act.

It is hoped that the Rudd Labor Government will not only support this bill to prohibit in-program advertising but increase its funding to SBS to remove the need for any advertising and index the rate to ensure this remains the case well into the future.

SBS is unique but while its radio and television services are broadcast in more languages than any other network in the world its character is under threat from the shortfall in public funding. Australia already has a myriad of commercial radio and television alternatives. To ensure SBS remains a global leader in public broadcasting it must be protected from the creeping commercialisation that is now evident.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.