Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

My question is to the Minister for Broadband, Communications and the Digital Economy. I refer to the tender process for the $233 million 10-year Australia Network contract for Australia's free-to-air international tele­vision network. Is it a fact that the recommendation on the successful tenderer was originally to be made by an independent panel of public servants and that this panel favoured the proposal from Sky News over the ABC?

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

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister advise who originally had the final authority—something he studiously avoided—to decide on the successful tender for the Australia Network? I understand it was a decision of cabinet to reject the independent panel's recommendation, but can he advise the Senate what changed after 4 February?

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

The process will continue to be administered by the Foreign Affairs and Trade portfolio. The amended RFT will be released shortly and a decision on the preferred tenderer is expected to be taken by September 2011. Both tenderers will be given an equal and reasonable opportunity to respond to the additional criteria. The current contract between DFAT and the ABC expires on 8 August 2011. Accordingly, the government will exercise its option under the existing contract to extend the service operated by the ABC for six months until 8 February 2012. On the range of other issues, I addressed those questions in my earlier answer.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. The minister still has not told the Senate what changed after 4 February 2011 in relation to international circumstances requiring the change of tender. What role does the minister now have in determining the successful tenderer? Given the minister's responsibility for the ABC, doesn't he have a potential conflict of interest?

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

As I mentioned in my first answer, in light of changed international circumstances—

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

What were they?

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

There were a few changes in the Middle East, as Senator Abetz may not have noticed. I am the approver because, from a legal perspective, the cabinet is not an individual and it is required for an individual to be the approver. The cabinet believes that this is a cabinet-level decision. So that is my function. I have been appointed the approver, but the decision is a cabinet decision.