Some facts (and fiction) about the ABC...

Fiction: Commercial broadcasting is free but we pay for the ABC through our taxes.

Fact: The ABC cost taxpayers about 10c per Australian per day in the latest period for which data is available, namely 2005-06. This is verifiable via the ABC Annual Report 2006 page 143: Revenue from Government to fund the ABC is shown as $774,254,000. Then divide by 365 days and again by 20 million estimated population, making 10.6 cents per day for each Australian.

By contrast, the cost of commercial radio and television is built into the price of everything we consume to cover advertising, and in 2005 this cost the consumer 67cents per day for electronic media and $1.38 per day for all media. (Commercial Economic Advisory Service of Australia, 2005)

Fact: It costs less to run all of the ABC’s services (one television network, 5 radio networks, Radio Australia, ABC Online, ABC Shops) than it does to run the Channel 9 network (Report by Prof. Glenn Withers).

Fact: For almost three times the population of Australia, the BBC receives almost ten times the funding of the ABC (ABC and BBC Annual Reports).

Fact: The Federal Government has been known to spend about $40 million of taxpayers’ money in one month to advertise its Workplace Reform Legislation. (Prime Minister, John Howard, 3AW, 21/10/05). Had these funds been made available to the ABC, it could have produced more than 100 hours of Australian drama per year compared to a paltry 20 hours.

Fact: Over 80% of Australians believe the ABC provides a valuable service to the community (Independent Surveys conducted by Newspoll since 1998).

Fact: Nearly nine out of ten Australians (86%) over the age of 15, use ABC Radio and/or Television each week (Australian Nationwide Opinion Polls).

Fact: Since 1996, ABC staffing has been cut by about 20%.

Advertising on the ABC

Some vocal elements in the community continue to push for commercialisation of the ABC and for Advertising as an inevitable consequence. The Friends of the ABC vigorously oppose any such move. Advertising on free to air broadcasts is currently banned by the ABC Charter, but ABC management may be seeking ways to circumvent that in relation to internet based media, which did not exist when the ABC Charter became law. An article by Darce Cassidy "Advertisements on the ABC Website?" addresses that subject:

Once again the prospect of commercialising the ABC is on the agenda. It seems that the ABC's Managing Director, Mark Scott, may try to exploit a legal loophole that will enable the ABC to run advertisements on its web sites. In a separate option, consideration may be given to introducing a Trojan Horse that will undermine the ABC's traditional editorial values. For further information click here

Commercialisation issues

Friends of the ABC (March 2006) expressed concerns about the issue of ABC commercialization.

The critical issue is what the ABC receives in funding, rather than discussions about the supposed benefits of commercialization.

Experience with SBS and overseas has demonstrated otherwise.

Advertising on SBS has become progressively more intrusive.

Clearly there is no such thing as "discreet advertising" as was hoped for by some.

The Friends have welcomed occasional comments of support for the ABC from the Minister for Communications, Senator Coonan, but are less enthusiastic about her hints about commercial activities.

Funding the ABC

For a detailed overview of this issue and other issues, click here

Aunty poor relation in budget

Following the 2006 Budget release, a former Friends of the ABC Spokesperson, Ms Margaret O’Connor, described the ABC’s funding situation as ‘grim’ and ‘dire’ and forecast that the ABC is facing significant programming cuts.

‘This prediction echoes statements made by the ABC’s Board Directors in the last Annual Report,’ Ms O’Connor said. 'In their own words, "a critical point has been reached" and unless "adequate funding is secured for the coming triennium, the Board will be faced with a range of fundamental questions about the extent and quality of ABC programming and services." ’

‘The ABC has received $88.2 million over three years for drama and documentary-making, regional and local programming and capital renewal. While this money is welcome, it is not enough to sustain programming needs, being substantially less than the ABC”s modest budget submission log of claims. Additionally, such funding allocation risks the subversion of the Broadcaster’s independence. Why not the simpler solution of increasing the ABC’s overall budget to acceptable levels?’ Ms O’Connor said.

‘This funding is also less than that reportedly advised by KPMG, commissioned to investigate the ABC’s funding, as the minimum the Broadcaster needs (an extra $125 million rolled per annum into its base funding). What does the Government have to hide by withholding this report from the public? The Friends of the ABC urge its release now that the Budget has been announced. How else can the Australian public judge whether this funding is enough?'

‘When the Government prides itself on huge Budget surpluses, what motivation does it have in starving the ABC? Given the fact that Australia’s coffers are awash with funds, it is disgraceful that the ABC has been given the fiscal equivalent of a sandwich and a milk shake. Its funding situation is a national tragedy which the Friends predict will become an election issue under the banner: "How badly do we want a public broadcaster?"

Whereas ...

The former Chairman of the ABC Donald McDonald welcomed the 2006-07 Federal Budget outcome as the best for the ABC in more than 20 years. Mr McDonald said the Budget included the renewal of the ABC's triennial funding for the period 2006-07 to 2008-9, plus an additional $88.2 million over the three years. "This new funding is tremendous for ABC audiences and will help maintain a strong and vibrant national broadcaster into the future," Mr McDonald said. [Full statement here]

Click here for a detailed analysis of the changes to funding of the ABC since 1970 (26KB pdf), and also an article on Funding Benchmarks (360KB pdf), which compares the ABC's funding with other public broadcasters. Use this information when making inquiries of your local member's attitude to the ABC, writing letters to the editor and calling talkback radio.

The ABC's own submission on funding can also be downloaded here: Media Release (90KB pdf) and full submission (1MB pdf)

The Position of Staff-Elected Director on the ABC Board.

The position of staff-elected Director was established when the corporation was created in 1983. Successive staff-elected Directors have mad substantial contributions to the ABC Board. They have brought to the Board table, largely made up of lawyers and financiers, a background of expertise in and a commitment to the ABC, in particular, and public broadcasting in general. They alone, have been able to contribute to any debate or decision-making process from the perspective of a broadcaster or program-maker.

There has been no evidence that the staff-elected Director has breached Board confidentiality or a failure to observe the principles of Corporate Governance. Indeed, with the Australian Electoral Commission supervising the election of the staff-elected Director, it is a more democratic process than that of appointing other Directors to the Board of the ABC.

FABC NSW Policy re Staff-Elected Director

We strongly believe that it is in the interests of the ABC that the position of staff-elected Director on the Board should be reinstated, because:

the position of staff-elected Director is not a conflict of interest.
there is no evidence that successive staff-elected Directors have breached Board confidentiality or failed to adhere to the principles of Corporate Governance.
the staff-elected Director makes a valuable contribution which is not available from other Board members.

The dangers of Media Monopoly

FABC has been a long standing opponent of concentrating media ownership to the degree which was recently enacted.

Last updated 2 April, 2008