Chapter One

Context of the inquiry

Conduct of the inquiry

1.1        On 17 August 2011 the Senate referred the following matter to the Senate Environment and Communications References Committee for inquiry and report by 12 October:

The decision by the television management of the Australian Broadcasting Corporation (ABC) to significantly cut the number and amount of ABC-produced programs, jobs (including through forced redundancies) and potentially affect resources, as announced on 2 August 2011, with particular reference to:

a) the implications of this decision on the ABC’s ability to create, produce and own its television content, particularly in the capital cities of Brisbane, Adelaide, Perth and Hobart;

b) the implications of this decision on Australian film and television production in general and potential impact on quality and diversity of programs;

c) whether a reduction in ABC-produced programs is contrary to the aims of the National Regional Program Initiative;

d) the implications of these cuts on content ownership and intellectual property;

e) the impact of the ABC’s decision to end internal production of Bananas in Pyjamas and to outsource the making of a ‘Bananas in Pyjamas’ animation series to Southern Star Endemol Proprietary Limited; and

f) the future potential implications of these cuts on ABC television’s capacity to broadcast state league football and rugby; and

g) any other related matters.

1.2         The inquiry stems from several recent programming decisions taken by ABC management.

1.3        The committee called for submissions by 9 September 2011. The committee received and published 335 submissions with a further 68 form letters received. Submissions are listed at Appendix 1. 

1.4        On 26 September 2011 the committee held a public hearing in Canberra at which 19 witnesses were called to give evidence. Details of the public hearing are at Appendix 2. 

1.5        The committee would like to thank all of the organisations and individuals that contributed to this inquiry. In particular the committee acknowledges the valuable contributions made by ABC staff members. The committee also acknowledges the cooperation it received from the ABC. Committee members placed over 70 questions on notice to the ABC, and, although some questions were not answered to the committee's satisfaction, the answers were generally provided in a very prompt manner under tight time constraints.[1]

1.6        The committee notes its disappointment that the Chairman of the ABC Board, Mr Maurice Newman AC, declined the committee's invitation for the ABC Board to give evidence to this inquiry. The committee acknowledges the evidence provided in the ABC's submission and also the testimony of the ABC's Managing Director, Mr Mark Scott and the Director of ABC Television, Mr Kim Dalton. However, the committee would nevertheless have appreciated the opportunity to hear from the ABC Board directly regarding its views on, and the role it played in the recent ABC programming decisions. In the committee's view this does not reflect well on the ABC Board and its preparedness to give its account on these matters.

Context of the inquiry

1.7        On 19 July 2011, Australian Broadcasting Corporation (ABC) TV Sport notified Bowls Australia that it would not renew its broadcast agreement. ABC TV also notified relevant sporting organisations that it would no longer broadcast the NT Sport Awards, the NT Rugby Union Finals or the Tiwi Islands Grand Final.

1.8        On 2 August 2011, the management of the ABC announced budget cuts to the number and amount of ABC-produced programs. In particular, the Sydney-based production New Inventors was not renewed after it completed its run on 17 August and the Melbourne-based Sunday afternoon production Art Nation will also not be renewed after it completes its run in November 2011.[2]

1.9        The announcements made by ABC management affect program production in the Television and Resources Division (responsible for Arts and Entertainment, Children's content, Fiction, and Factual and Documentary), and do not relate to News and Current Affairs which remains an in-house production area.

1.10      During the course of the inquiry concerns were also raised about the future telecast of state-based football leagues. The committee notes that on 22 September 2011 the ABC announced that negotiations to cover local leagues would commence in the following weeks. The ABC stated in its media release that it 'understands that local football coverage is important to the state leagues in developing profile and grass roots support'. Further, the ABC announced that it is 'continuing to develop a television production strategy which will include a more formal framework for sports coverage. That strategy will be released before the end of the year'.[3]

1.11      On 2 August 2011, ABC management indicated that the ABC will deliver a 3‑year strategy for television programming by the end of 2011 in order to provide certainty to staff, audiences and relevant stakeholders.[4]

1.12      These issues are discussed in greater depth in Chapter 3.

Structure of the report

1.13      Chapter 2 of this report provides background detail on past reviews conducted into the ABC. The relevance of the ABC Charter to this inquiry is also discussed and specific clauses which are relevant to the scope of this inquiry are analysed.

1.14      Chapter 3 examines the impact recent programming decisions have had, and will continue to have, on the ABC. Analysis includes the extent to which specialist program content particularly reflects regional areas, levels of production in regional states, ABC funding, maintenance of the ABC's archive of material and implications these decisions have for ABC staff.

1.15      The scope of this report is limited to recent programming decisions announced by ABC management on 2 August 2011.

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