ABC Online Inquiry - Final Report: Minority Report by Labor Senators
1.1
The Senate Environment, Communications,
Information Technology and the Arts References Committee tabled its Interim
Report to the Inquiry into ABC Online on 12 April 2000. The interim report
addressed the first and second terms of reference of the inquiry, that is terms
of reference (a) and (b). This Report relates to the third term of reference of
that Inquiry into the sale of ABC Online content, specifically:
(c) Any extension to legislation which could be considered to
ensure the ABC is able to effectively provide an independent, innovative and
comprehensive service in the online delivery environment.
1.2
This term of reference calls for a consideration
of two main issues:
- Whether the ABC Act requires amendment to prohibit advertising
on online and datacasting services.
- Whether the ABC Act requires amendment to incorporate online,
datacasting and other emerging activities.
Background to Inquiry
1.3
The Australian Broadcasting Corporation’s online
activities and the commercial arrangements relating to such activities were the
stimulus for this Senate Committee inquiry. The ABC’s independence and
integrity are recognised and valued by Australians. ABC Online was initiated in
1995, and has rapidly become a significant medium for the delivery of ABC
material to audiences.[1]
1.4
For those reasons, last year’s proposed
commercial arrangement between Telstra and ABC Online gave rise to a number of
concerns that the arrangements conflicted with the ABC’s role as an independent
provider of information to Australians. Even though negotiations with Telstra
were ultimately terminated,[2]
and the deal not pursued, Mr Quentin Dempster’s submission to this Inquiry
notes that:
“ ...[the Managing Director’s] stated reasons had nothing
whatsoever to do with the risk of editorial independence through fully
commercial business plans and strategic alliances with other online and
broadband cable delivery systems.”[3]
1.5
As a consequence, the issues that were discussed
in the interim report remain problematic as no resolution or precautionary
measures have been implemented, and there is no apparent intention to resolve
those issues in the near future.
Advertising
1.6
The Australian Broadcasting Corporation Act
1983 (“ABC Act”) expressly prohibits the ABC from broadcasting
advertisements.[4]
1.7
A concern raised with the Committee is that the
ABC is not prohibited from advertising on other services which are not
‘broadcast’ such as online services[5]
and datacasting services. This is clearly an anomaly that exists simply because
the drafters of the legislation could not have even conceived of the
alternative means of delivery of ABC content now being utilised.[6]
1.8
Labor Senators believe that the prohibition on
advertising should extend to all transmission/delivery platforms of the ABC as
this is the only way to maintain the integrity, independence and freedom from
commercialisation of the organisation as a whole.
1.9
It would seem that the ABC’s Managing Director
supports us on this issue. In a recent speech,[7]
Mr Shier stated that:
“ABC management is not suggesting that we introduce advertising
onto ABC television, radio or on ABC managed internet sites. You only need to
look to countries like New Zealand and Canada to see what damage can be done to
public broadcasting as a result of undue commercialisation.”
1.10
ALP Senators welcome this acknowledgment of the
dangers of commercialisation and advertising on the ABC. Interestingly, Mr
Shier includes ABC’s online activities in this denunciation of advertising on
ABC services.
1.11
This concords with the position taken by Labor
Senators that advertising should be prohibited on ABC Online.
New and emerging ABC services
1.12
The Australian Broadcasting Corporation Act
1983 does not expressly provide for the ABC’s online services and other
services emerging in the new digital environment.
1.13
The ABC informed the Committee that its legal
advice is that it has undoubted power under subsection 25(1) of the Act to
establish and maintain its internet site.[8]
1.14
The ABC suggested that if any amendments to its
Act are deemed necessary, they should be incorporated with consequential
amendments arising from the Broadcasting Services Amendment (Digital
Television and Datacasting) Act 2000.[9]
1.15
This is precisely the course of action pursued
by the Opposition when the Broadcasting Legislation Amendment Bill 2000
[2001] came before the Senate on the 27th February 2001.[10]
1.16
The amendments moved by the Opposition would
have expanded the ABC Act to incorporate new activities and services that have
already become available and will become available in the foreseeable future.
The existing provisions of the Act do not presently cover those activities.
1.17
The amendments sought to address public concerns
that the future commercialisation or even privatisation of these ABC services
is being contemplated and is possible under the existing legislation. By
bringing these services within the core functions of the ABC, the amendments
would have gone some way to ensuring the future independence of the ABC from
commercial interests and influences and updated the ABC’s enabling Act
consistent with its expanding role in the digital world.[11]
1.18
Labor has clearly stated our position that it is
appropriate for online, datacasting and other emerging activities to be
included in the Act and Charter of the ABC. The Broadcasting Legislation
Amendment Bill 2001 will insert datacasting functions into the ABC Act if
passed by the Parliament in its present form.[12]
It is our policy position that new fields of endeavour should be regulated and
comprehended by the Act and the Charter.[13]
1.19
However the Democrats and the Government
combined to defeat Labor’s amendments in the Senate which would have included
online services in the ABC Act. Online services are a notable omission now that
datacasting functions are to be included in the Act.
1.20
Importantly, the amendments would have extended
the ban on advertising on ABC broadcasts to the ABC’s online and datacasting
services. Escalating public concern about the commercialisation of the ABC was
exacerbated by the leaking of the Bales Report late last year which advised the
ABC on establishing advertising and commercial links on its website.
1.21
It is unfortunate that this opportunity to
unequivocally pronounce that advertising on the ABC is unacceptable was passed
over by the Democrats and the Howard-Anderson Government.
1.22
Labor Senators believe the express inclusion of
datacasting and online services in the ABC Act is appropriate and the inclusion
of online and other services in the new media environment needs to be addressed
in the near future.
Recommendations
Labor Senators restate our support for:
- legislative measures to prohibit advertising on any ABC
service; and
- the inclusion of new services in the digital environment, such
as online services, within the ABC Act so that they are core functions of the
broadcaster that cannot be commercialised or privatised.
_______________________________
Senator Mark Bishop (A.L.P., W.A.)
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