Dissenting Report by the Australian Greens

1.1The Australian Greens are disappointed to see the major parties singing from the same song sheet as commercial radio and big media companies to protect corporate interests over supporting Australian artists.

1.2Arts and music are an essential part of our communities and who we are as Australians, and core to radio’s business model. Supporting a strong arts industry is crucial to telling our stories and having a thriving cultural scene.

1.3Yet, artists are often not paid fairly for the work they do, and face difficulties finding secure and stable income. The music industry was hit hard by the pandemic, which meant artists were unable to make money from live performance and touring. The industry continues to be disrupted by climate‑induced extreme weather events and the cost-of-living crisis.

1.4We should be looking for every opportunity to support and build back a thriving arts sector in Australia. Removing the 1% cap on royalties that commercial radio stations pay for sound recording is a commonsense way for this government to support our local artists.

1.5These caps were put in place in 1968 as a special deal for commercial radio and big media companies. It’s disappointing that in over 55 years, not much has changed when it comes to politicians being willing to stand up to the interests of big media companies.

1.6The cap on royalties paid by commercial radio is anti-competitive and unfair to the artists who are not being adequately paid for their work being used on radio. Despite the value these artists bring to radio stations, in one year the entire radio market only paid $4.4 million (0.4% of their gross revenue) to artists.

1.7It’s time for commercial radio to start paying their fair share.

1.8The removal of these caps will not mean commercial radio is suddenly fronting major costs, nor will it be the end of commercial radio. It merely levels the playing field for negotiation, where it will still be up to the parties to negotiate a fair rate.

1.9Australia is the only country in the world that has these anti-competitive caps. Numerous reviews have recommended the repeal of radio caps over the last 30 years, yet still they remain in place.

1.10If radio is profiting off artists' work, it only makes sense in turn for the artists to be given the opportunity to negotiate a fair rate and be fairly renumerated.

1.11This government has made a lot of promises to arts and entertainment workers in their National Cultural Policy - this is one simple step that they could take to start putting some money back in the pockets of our local musicians.

Recommendations

1.12That the Senate pass the Bill.

Senator Sarah Hanson-Young

Greens Senator for South Australia