Minister responds to petition

The Australian Government recognises the importance of its role as a national public broadcaster, catering for diverse interests in the Australian community and reflecting Australia’s culturally diverse society. Issues of funding and independence are crucial to a vibrant and relevant SBS.

The Government provides an overall level of funding for SBS, but has no power to direct it in relation to programming matters. Parliament has guaranteed this independence to ensure that what is broadcast is free of political interference. Internal SBS programming decisions are the responsibility of the SBS Board and Executive.

Under the provisions of the Special Broadcasting Service Act 1991, SBS is empowered to air up to five minutes of advertising per hour. The Act limits advertisements to the periods before or after programs or during natural program breaks.

As you know, in 2006, the SBS Board approved a change to the times and manner in which advertising could be shown which had the effect of allowing in-program advertising.

This was a significant change from past SBS practice, and I expressed concern about this change while in Opposition.

When I became Minister for Broadband, Communications and the Digital Economy, I wrote to the SBS Board requesting a copy of its legal advice in relation to this matter.

SBS has provided me with a report of that legal advice and it is clear that the SBS Board believes it is acting legally by reinterpreting the clause in the Act that refers to ‘natural program breaks’.

In relation to increasing total funding to SBS I note that Triennial Funding Submissions from both the ABC and SBS are due later this year. These will be considered in the context of the 2009-2010 budget, with funds then allocated for the three year period from 2010-2013.

I intend to consider the report of SBS’s legal advice in relation to in-program advertising in the context of SBS’s Triennial Funding Review, the results of which will be made public at the time of the 2009-2010 budget.

In line with its election commitment, the Government plans to introduce a new Board appointment process for SBS and the ABC.

The new SBS and ABC Board appointment process will ensure that Board members are appointed on the basis of merit. Candidates will be considered by a panel who will select Board members from a shortlist.

This method would be similar to the ‘Nolan rules’ system of Board appointments which is used by the British Broadcasting Corporation (BBC).

Further, under the new Board Appointment process, the Chairmanships of SBS and the ABC will be held by persons nominated by the Prime Minister in consultation with the Leader of the Opposition.

Under s17(2) of the SBS Act, the Governor-General needs to ensure that the Directors collectively:

– possess an appropriate balance of expertise, including an understanding of Australia’s multicultural society; and
– that the Directors collectively comprise persons with a diversity of cultural perspectives.

The Governor-General must also ensure that there is a Director who ‘has an appropriate understanding of the interests of employees’.

This will not change under the new SBS Board appointment process.

The Government is moving quickly to implement these arrangements to ensure greater transparency, accountability and public confidence in the national broadcasters.

Thank you for bringing these important matters to my attention. I trust this information will be of assistance.

Stephen Conroy
Minister for Broadband, Communications and the Digital Economy
DEPUTY LEADER OF THE GOVERNMENT IN THE SENATE
26 August 2008