Annual Report 2002-2003

AUSTRALIAN BROADCASTING CORPORATION 03 annual report

everyone’s Annual Report 2002-03

everyaustralian Every Australian Annual Report 2002-03

Australian identity is the product of a continuous national conversation. The ABC brings to that conversation a comprehensive suite of diverse and high quality programming that reflects Australia and Australians.

Australian Story Since 1996, Australian Story has presented the stories of inspiring and sometimes unusual Australians ‘narrated’ by the subjects themselves. The program emphasises regional and rural Australia and the positive aspects of contemporary life and people.

Australians Together Following the Bali bomb blasts in October 2002, the ABC broadcast Australians together: A Ceremony of Tribute live across the nation to commemorate the victims of the bombing. The ceremony was held in Sydney’s Domain with ABC presenter Geraldine Doogue as MC.

Bush Telegraph ABC Radio National’s Bush Telegraph provides an entertaining look at rural and regional issues around Australia, featuring unique social commentary and rural news headlines. In 2002-03, Bush Telegraph’s ‘Grow Your Own’ project allowed listeners to debate the best way to manage a cotton crop which was grown and picked in accordance with their instructions in a Queensland paddock. everyone’s Contents

Letter of Transmittal 1

Corporate Report ABC Vision, Mission and Values 2 Significant Events in the Past Year 2 ABC Programs and Services 5 Board of Directors 10 Board of Directors Statement 12 ABC Advisory Council 17 The Year Ahead 18

Overview ABC Audiences 22 Corporate Governance 35 Financial Summary 39 Corporate Plan Summary 43 Sydney Accommodation Project 45 ABC Executive Directors 46 ABC Organisation Chart 49

ABC Divisional Reports Radio 52 Television 58 New Media and Digital Services 65 International Broadcasting 70 News and Current Affairs 72 Production Resources 76 Development 79 Enterprises 82 Content Rights Management 85 Finance and Support Services 88 Human Resources 91 Corporate Affairs 95 Technology and Distribution 98

Summary Reports Corporate Plan Performance Summary 108 Outcomes and Outputs 117 ABC Subsidiaries 126

Independent Audit Report 130 Financial Statements 131

Appendices 167 Office of Donald McDonald AO Chairman

3 October 2003 ABC Ultimo Centre 700 Harris Street Ultimo NSW 2007 Australia

GPO Box 9994 Sydney NSW 2001

Tel. +61 2 8333 5363 Fax. +61 2 8333 2967 Senator the Hon Richard Alston abc.net.au Minister for Communications, Information Technology and the Arts Parliament House CANBERRA ACT 2600

The Board of the Australian Broadcasting Corporation is pleased to present the Annual Report of the Corporation for the year ended 30 June 2003.

The report has been prepared in accordance with the requirements of the Commonwealth Authorities and Companies Act 1997 and the Australian Broadcasting Corporation Act 1983. 2

Annual Report 2002-03

ABC Vision, Significant Events Mission and Values Vision July 2002 Valued and integral to Australia’s culture. The last episode of the first series of Kath and Kim attracted the highest number of viewers ever Mission for an Australian comedy series on the ABC. Guided by the ABC Charter to engage our audiences with an independent, distinctive and appealing mix The ABC broadcast Australia’s first interactive of programming and content, delivered via multi- television program, the BBC’s Walking With platform services. Beasts Interactive series, through its services on the Austar and Optus Interactive platforms. Our Corporate Values We will manage and conduct our business in an effective, ABC New Media became ABC New Media and efficient and ethical manner, according to values we share Digital Services to reflect the Division’s role in in the Corporation. driving digital strategy for the Corporation.

We value ABC NewsRadio extended transmission • The ABC - acting always to support the role of to Gosford on the Central Coast of a national public broadcaster in delivering valued New South Wales. outcomes for the Australian community • Editorial Excellence - aspiring to the highest standards The ABC celebrated its seventieth anniversary of accuracy, impartiality and independence, in reflecting with special radio programs and outside a balanced and broad range of views and interests broadcasts in all States and Territories. through adherence to editorial policies and guidelines • Innovation and Creativity - striving for excellence in the August 2002 development and presentation of distinctive information ABC Television inaugurated ‘Doing Business and cultural programming content with ABC Television’ information briefings for • Universal Access - ensuring that all Australians can the film and television industry, including ABC access services that provide the knowledge required Editorial Policies Workshops. in a modern information-based society • Our People - providing opportunities for our people to Tenth anniversary of Bananas in Pyjamas, the grow, personally and professionally, during their time most successful ABC program sold to overseas with the Corporation television markets. • Good Governance - demonstrating our accountability for the efficient and effective use of public resources Radio Australia celebrated 60 years of • Shared Commitment - accepting the shared obligation broadcasting to Indonesia. The Indonesian to act responsibly and with a commitment to fairness Language Service has an estimated annual and justice audience reach of 6.5 million listeners in • Courage - encouraging the leadership and vision to adapt Indonesia and can be heard on 30 local to change with flexibility, integrity and decisiveness. Indonesian stations.

ABC Local Radio broadcast over 120 hours from the Commonwealth Games in Manchester. Corporate 3 Annual Report 2002-03

September 2002 New Media and Digital Services ran a successful Radio National commenced 24 hour audio free trial of outbound Short Message Service streaming online. (SMS) on mobile phones for the audience of television comedy CNNNN. ABC New Media and Digital Services launched a new online gateway, Rollercoaster, aimed at November 2002 the 8-14 year age group. ABC Triennial Funding Submission 2003-06 provided to Government. ABC Events staged Gardening Australia Live in Sydney. The ABC Ultimo Centre in Sydney officially opened by the Prime Minister. The ABC Classics album Sonatas and Fantasies by Slava Grigoryan won the Best The ABC’s first Internet radio station, DIG, was Classical Album Award at the 2002 Australian launched at the Queenscliff Music Festival. Recording Industry Association Awards. The inaugural Radio Australia Asia-Pacific Lecture October 2002 Series, produced with leading universities, ABC Radio and Television networks broadcast throughout Asia and the Pacific on comprehensively covered the Bali bomb Radio Australia and across Australia on the blasts and their aftermath. ABC’s Radio National and NewsRadio networks.

ABC Television presented Australians Together: December 2002 A Ceremony of Tribute, commemorating the Australia’s first interactive television documentary, victims and families and all affected by the Long Way to the Top: Live In Concert iTV, went to Bali bombing. air through the ABC’s services on Austar’s digital satellite platform to around one million viewers. The new ABC Shop Online was relaunched after a significant makeover. January 2003 ABC Television news and daily current Radio Australia’s Chinese Language Service affairs programs commenced production delivered an historical joint broadcast from in Ultimo, Sydney. Shanghai, in partnership with major local station East Radio, to an estimated audience of 666 ABC Canberra, and ABC Goulburn Murray 100 million. and ABC Gippsland in Victoria provided critical bushfire coverage in their regions. Triple J launched Break The Music Drought initiative. The ABC launched weekend television news bulletins in the ACT and the Northern Territory. New ABC Shops were opened in Wantirna South, Victoria, and Eastgardens, New Radio Sport provided a comprehensive coverage South Wales. of the Australian Open Tennis on Local Radio. 4

Annual Report 2002-03

Significant Events (continued)

February 2003 The 24-hour relay is run in cooperation ABC Radio acquired the non-commercial rights with Radio Fiji. from Macquarie Broadcasting Network to provide comprehensive radio coverage of the 2004 ABC Events staged the inaugural Gardening Athens Olympic Games. Australia Live Queensland in Brisbane.

March 2003 May 2003 The Prime Minister’s Address to the Nation ABC Television and the Development regarding the Government’s commitment of Division conducted a two-day workshop on Australian defence forces to the military action the presentation of history on television involving in Iraq went to air live across Australia on Local over eighty historians and program makers. Radio and ABC NewsRadio. Radio Australia broadcast its Asia-Pacific ABC News and Current Affairs undertook one of program live from Bangkok and Manila - the the most comprehensive coverage deployments first time the program had been broadcast in ABC history for the war between Iraq and live from Asia. the US-led coalition, with reporters and crews operating from numerous locations throughout 558 ABC Great Southern at Wagin, Western the Middle East. Australia commenced on air with a local Breakfast program. War in Iraq provided a major focus for all ABC networks. ABC Online received its highest level A Radio National and Radio New Zealand joint of traffic ever, with 1.3 million unique Australia broadcast, Australasia Talks Back, generated users for the month. Over 18 million pages significant media coverage in both countries. of content were requested in just one week following the announcement by the US of the June 2003 commencement of the war on Iraq. Sounds Like Techno, a unique online documentary exploring techno music, was ABC Magazines published the first issue of launched. It was produced by New Media the pre-teen magazine RC Rollercoaster. and Digital Services with the assistance of the ABC-Film Victoria Multimedia Production Accord. April 2003 For the thirtieth year, ABC Television covered The last television program was produced out Anzac Day marches with live broadcasts from of the Gore Hill production centre in Sydney. each State and Territory. Anzac Day was also commemorated across ABC Radio. 107.9 ABC Ballarat commenced on air as the ABC’s 59th Local Radio station. Radio Australia opened its first 24-hour FM service - 92.6FM, in Fiji - with a live broadcast ABC Magazines launched limelight, the new of the Pacific Beat program from Suva. monthly ABC arts and entertainment magazine. Corporate 5 Annual Report 2002-03

ABC Programs and Services

In achieving its vision, the ABC delivers International Broadcasting comprehensive programs and services which • Radio Australia, an international radio service reflect the interests and aspirations of diverse broadcasting by short wave, satellite and Australian communities. rebroadcast arrangements to Asia and the Pacific Services • ABC Asia Pacific, an international television ABC Radio and online service broadcasting via satellite • four national radio networks comprising and rebroadcast arrangements to Asia and Radio National, ABC Classic FM, Triple J, the Pacific and ABC NewsRadio (on the Parliamentary and News Network) Programming • DIG, a music-based service available via The ABC offers a distinctive range of programming the Internet and digital television in 16 major genre categories and six factual • nine metropolitan radio stations in capital sub-genres across its services: cities and Newcastle • 50 regional radio studios throughout Australia • Arts and Culture • Business and Finance ABC Television • Children’s • national analog television service • Comedy • digital television with analog simulcast • Current Affairs from 52 transmitters around Australia • Drama • digital multichannel services from 52 • Education transmitters around Australia • Factual - Contemporary Life; Health; • local television in each State and Territory Indigenous; Law, Consumer Affairs and Media; Special Events; and Topical Issues ABC New Media and Digital Services • History • ABC Online, serving more than 1 268 300 • Light Entertainment pages of content in narrowband and • Music broadband • News • content and services on emerging platforms • Regional and Rural including interactive television, SMS, mobile • Religion and Ethics services for 3G phones and other wireless • Science, Technology, Environment devices and Natural History • Sport ABC Enterprises • 38 ABC Shops • 82 ABC Centres throughout Australia • Customer Delivery Service (fax, telephone and mail orders) and ABC Shop Online 6

Annual Report 2002-03

ABC Programs and Services (continued)

Transmission Victoria and the Northern Territory), and ABC The ABC transmits its programs via: NewsRadio and Parliamentary broadcasts on the Parliamentary and News Network • 963 terrestrial transmitters around Australia for analog television services, including Self • ABC Television retransmitted via cable Help and Community facilities, formerly subscription services on Foxtel and Optus known as Broadcasting for Remote Vision, and satellite subscription service Aboriginal Communities Scheme (BRACS) on Austar

• 931 terrestrial transmitters around Australia for • ABC Asia Pacific transmitted on the analog radio services, including Self Help and PanAmSat 2 and PanAmSat 8 satellites, Community facilities, formerly known as BRACS and via rebroadcasts in countries across Asia and the Pacific • 52 terrestrial transmitters around Australia for digital terrestrial television services • Radio Australia services via shortwave transmission from Brandon in Queensland, • a digital satellite service to remote homesteads Shepparton in Victoria, Darwin, Singapore, and communities within Australia carrying Taiwan and the Marianas; the PanAmSat ABC analog television, Radio National, 2 and PanAmSat 8 satellites; and via ABC Classic FM and Triple J, eight different rebroadcasts on several stations and regional radio services (two each for outlets in countries across Asia and the Queensland and Western Australia, one Pacific, Europe and North America each for New South Wales, South Australia, Corporate 7 Annual Report 2002-03

ABC Broadcasting Coverage

Proportion of the Australian population able to receive transmissions from ABC broadcasting services Australia NSW/ACT Vic Qld WA SA Tas NT Analog Television 98.13% 99.22% 98.83% 97.03% 97.01% 98.51% 95.94% 78.84% Digital Television 82.61% 80.49% 97.52% 70.32% 76.14% 85.63% 89.89% 54.01% Local Radio 99.34% 99.69% 99.78% 99.50% 98.77% 99.63% 98.43% 80.93% NewsRadio 77.05% 79.59% 82.54% 65.16% 76.50% 91.07% 47.60% 53.37% Radio National 98.42% 99.12% 99.46% 97.83% 96.38% 99.54% 95.72% 79.60% Classic FM 95.57% 97.49% 97.96% 94.31% 89.62% 95.04% 91.96% 67.18% Triple J 95.10% 97.10% 97.92% 93.20% 88.76% 94.77% 91.96% 67.18% Domestic Shortwave 0.97% 0.00% 0.00% 0.00% 0.00% 0.19% 0.00% 86.45%

Note: population figures derived from Australian Bureau of Statistics 2001 Census data.

ABC Services Throughout Australia 8

Annual Report 2002-03

For audiences, the ABC is more than the shows they watch, the programs they listen to or the websites they visit.

Bushfires When bushfires swept through Canberra in January 2003, radio 666 ABC Canberra became the focal point for the local community, providing information and critical coverage during the height of the crisis. ABC Radio also extensively covered bushfires in Victoria in January and February. These services received enormous public support and appreciation. The ABC organised concerts in Canberra and Myrtleford in Victoria to support the bushfire affected communities.

ABC Trailer The ABC’s On The Road Exhibition Trailer appears at community events around the country, offering the Australian public an interactive, hands-on experience of ABC programs, characters and services. In ten months, the Trailer visited 14 sites in five states and was seen by an estimated 200 000 people.

The Backyard The Backyard on ABC Online is audiences’ gateway to the websites of each of the ABC’s 59 Local Radio stations. From Bunbury to Bundaberg, the sites build online communities, encouraging interaction and input while providing a window on local regions. In 2002-03, The Backyard attracted more than 30 million page access nationally, of which more than 45% were regional and rural users. Every Community 9 Annual Report 2002-03 everycommunity

everyone’s 10

Annual Report 2002-03

ABC Board of Directors Donald McDonald AO Ramona Koval Appointed ABC Chairman in July 1996, Staff elected Director from June 2002 for Donald McDonald was re-appointed a two-year term. Chairman on 24 July 2001 for a second Ramona Koval presents and produces the five-year term. weekly ABC Radio National program Books Donald McDonald has been involved in the and Writing, and has co-presented Australia administration of arts enterprises for over 30 Talks Books, the monthly talk-back national years, including Sydney Theatre Company, book club for the past two years. She is a Musica Viva Australia and Vogue publications. freelance columnist and newspaper feature He was chief executive of the Australian writer and is the author of the novel Samovar Opera for ten years until his retirement in and three books of non-fiction. December 1996. Ross McLean He is Chairman of The Really Useful Company Appointed a Director for a five-year term (Aust), a Director of Focus Publishing, and a from 9 August 1999. member of the Board of the University of New Ross McLean is the Deputy Chief Executive South Wales Foundation. of the Chamber of Commerce and Industry of Western Australia, Member of the Board Judith Sloan of Management of Western Australian Appointed a Director from 9 August 1999 for Municipal Self Insurance Scheme, Director a five-year term and Deputy Chairman from of Coventry Group, and Chairman of the 8 September 2000 until 8 September 2004. Board of Management of the Fremantle Professor Sloan is a part-time Commissioner Football Club (AFL). of the Productivity Commission, a Director of Santos, Mayne, SGIO Insurance, and Chair John Gallagher QC of SGIC Holdings. Appointed a Director for a five-year term from 9 December 1999. Russell Balding John Gallagher’s practice involves civil and Appointed Managing Director 29 May 2002. criminal law. His experience encompasses Russell Balding was previously Director of environmental, town planning, heritage, licensing, ABC Funding, Finance and Support Services broadcasting tribunal, valuation and general and Deputy Managing Director. He holds a commercial cases. He is the author of the Bachelor of Business Studies and a Diploma 1990 Australian Supplement of Licensing Laws of Technology (Commerce), and is a Fellow in Halsbury’s Laws of England, and articles on of CPA Australia. Mr Balding has had a town planning practice, compensation and distinguished career in public sector financial licensing matters. management and administration, having held senior financial management positions Leith Boully within major New South Wales public sector Appointed a Director for a five-year term organisations. He has had extensive experience from 11 October 2000. in financial and executive general management, Leith Boully, who lives in regional accounting, auditing and capital works Queensland, holds qualifications in rural programming in a number of organisations. science and business studies. She is Director SectionCorporate Heading 11 Annual Report 2002-03

of the Boully Pastoral Company, Chair of the Community Advisory Committee of the Murray Darling Basin Ministerial Council and Director of the Land and Water Resources Research and Development Corporation.

Maurice Newman AC Appointed a Director for a five-year term from 20 December 2000. Maurice Newman is Chancellor of Macquarie University and the Chairman of a number of companies and other bodies, including the Australian Stock Exchange, Acrux, Tourism New South Wales, Sydney Convention and Visitors Bureau and the Australian Government’s Financial Sector Advisory Council. His career spans forty years in stockbroking and investment banking, including as Managing Director in 1984, and Executive Chairman from 1985 until 1999 of what is now the Deutsche Bank Group in Australia. He was also Chairman of Deutsche Asset Management (Australia) from 1997 until 2000.

Ron Brunton Appointed a Director for a five-year term from 1 May 2003. Dr Brunton is currently the Director of ABC Board of Directors Encompass Research, an organisation engaged in anthropological and socio- economic research, concentrating on native Donald McDonald, Judith Sloan, Russell Balding title, Indigenous heritage, immigration and Ramona Koval, Ross McLean, John Gallagher environmental issues. Leith Boully, Maurice Newman, Ron Brunton A widely published writer, Dr Brunton was a fortnightly columnist for The Courier Mail from 1997 until 2003, and was a Senior Fellow at the Institute of Public Affairs from 1995-2001. He has published academic research papers and books on a wide range of anthropological issues and has lectured in anthropology at various universities in Australia and the University of Papua New Guinea. Retired Director Michael Kroger retired from the ABC Board in February 2003. 12

Annual Report 2002-03

Statement by ABC Board of Directors

The Past Year each day by the many different connections This has been one of the most positive and the ABC makes through its presenters confident years for the ABC in its recent history. and programs.

Under the leadership of Managing The ABC’s usefulness to the nation is being Director Russell Balding, the year has constantly redefined, adapting the best of the been characterised by stability, coherence past to the needs of the present. It has kept and a renewed sense of shared purpose pace with the changing interests of its diverse throughout the Corporation. With a focus on audiences by providing the richest range of clearly articulated and communicated goals, programming in the nation. the ABC has continued to evolve as a more flexible and dynamic, more accountable, An express purpose of incorporation of the more efficient modern public broadcaster. ABC in 1983 was to modernise and streamline the organisation. It is a tribute to how effective It was a year in which the ABC again proved this process has been that the ABC today to be important when times are good, and presents a far greater body of work with imperative in times of hardship. significantly less funding in real terms than in 1983. This is also achieved with significantly ABC Radio services were essential for those less funding than other international public people enduring the worst days and weeks broadcasters against which the ABC can of summer’s bushfires. relevantly be compared.

In the wake of the Bali bombing, when the Accuracy and Impartiality: nation was brought together in grief and loss, Editorial Policies our common values were given expression The Australian Broadcasting Corporation during the Australians Together remembrance Act requires the Board to, inter alia, ensure service on ABC Television. that the gathering and presentation by the Corporation of news and information is The ABC was also relied upon for informative, accurate and impartial. analytical reporting when there were tensions abroad, such as the war in Iraq. The ABC’s To that end, a program of continuing programs reflected the many differing views, reform was first articulated in the 1999 each held with equal conviction, that constituted Board discussion paper The ABC: Of Unique the wide range of Australian opinion on the war. Value, and Value for Money. The Board has overseen significant progress on two key Listeners, Viewers, Visitors elements of that paper during the past year: Against a background of vigorous competition, audience levels for ABC Radio, Television and • editorial guidelines to ensure accuracy, Online have continued to rise. balance and impartiality; and • complaints handling. The relationship between the ABC and its audience has no equal in the Australian media. This bond has been built over the course of the ABC’s seventy-one years. It is renewed SectionCorporate Heading 13 Annual Report 2002-03

To ensure the highest editorial standards the commercial imperatives. It must also Board’s Editorial Policies Committee, chaired be able to assure the Parliament that the ABC by John Gallagher QC, maintains Board remains editorially free of political interference. oversight of matters relating to editorial policies. For as long as the media has been the The revised ABC Editorial Policies were dominant means of communication in Australian introduced in August 2002. society, attempts have been made to exert influence over the ABC - these pressures are The ABC Editorial Policies, which set out key as old as the institution itself. Given the power values and editorial principles, are intended to of the media to shape impressions, that is be pre-emptive. Through training, continuing perhaps to be expected. education, and supervision at every link of the editorial chain, their accent is first and Equally, the Board is expected to protect the foremost on observance. integrity of the Corporation, ensuring that the ABC does not yield to influence or allow those Yet it is not enough that observance of pressures to affect its programming. policies is fundamental to program making. When standards are not met, or the Code Australians seeking a deeper understanding is breached, complaints must be rigorously of events and policies affecting their lives have examined with procedures that are clear traditionally relied upon the ABC’s specialist and decisions that are transparent. news and current affairs programs. These are the pre-eminent national forum for discussion In August 2002, the Corporation enhanced of issues that shape Australian life. In scrutinising significantly its complaints handling process. both Government and opposition parties with Parliament can be assured that, in terms of the same degree of honesty and rigour, these rigour and independence, these procedures programs serve and promote a vibrant are now equal to, or better than, those of any participatory democracy. other public broadcaster. The policies and their application will, however, be subject to the The independence of the national public process of continuous review. broadcaster from Government has provided generations of Australians with a sense of The Corporate Governance section of this security that must not be put at risk. There Annual Report outlines other initiatives which is a capital of trust in the ABC that has been have improved not only the processes but also accumulated over the years. The Board is public confidence in the handling of complaints obliged to see that trust preserved. by the ABC. Independence is both the essence of the Independence and Integrity Corporation’s legitimacy and the means by The Board, as the trustee of the autonomy of which that trust will endure. There need be the ABC, also has a legal duty to maintain the no doubt about the independence of the ABC’s integrity and its independence. Corporation, nor any doubt about the integrity of its governance. In doing so, it must be able to assure the people of Australia through the Parliament, that the ABC’s programs are not compromised by 14

Annual Report 2002-03

Statement by ABC Board of Directors (continued) Technological Transformation Beyond the Cities - When officially opening the ABC’s Ultimo Reflections of a Unique Country Centre in Sydney on 28 November 2002, Meeting the needs of regional Australia was Prime Minister John Howard spoke of his another key element of the Board’s program personal relationship with the ABC over the of continuing reform, The ABC: Of Unique years, and its central place in Australian life. Value, and Value for Money.

The Prime Minister thanked the ABC for ‘the The richness of Australian life, culture and contribution it has made to building Australian character is expressed not just within the identity, to the stimulation of lively controversial densely populated urban centres, but throughout debate, and the role it has played in shaping all parts of the continent - in the agricultural and challenging attitudes’. It was a significant regions, the small towns along the coast, and moment in ABC history, distinguished by a the remote and sparsely populated areas. prevailing sense of goodwill towards the ABC. As the national broadcaster, the ABC aims The Ultimo Centre was the realisation to reflect the many components of Australian of a long-term ambition of the ABC, from identity and accent, to reflect in its programming Commission through to Corporation, to have the depth of cultural expression and talent in all its staff in each city working on the same the regions. site. This was a formal recommendation of the Dix Report of 1981. The Mansfield Report of National Interest Initiatives funding, provided 1996 also set out the need for the ABC to by the Government for the four-year period examine its property holdings and leasings 2001-05, has enabled the ABC to provide with a view to rationalising them. many valuable new services and facilities for rural and regional Australia. New radio The Ultimo Centre’s new studios were studios were established in Wagin, Western designed for Australia’s transition to digital Australia and Ballarat, Victoria. television, and to bring staff and the ABC’s immense and invaluable archives together on Through increased online content, new radio a single site. It was the largest relocation of programs and cultural activities - debates, staff and facilities in the history of the ABC. musical performances, short stories and plays - over 400 program makers, writers The consolidation program continues with and musicians have published, produced and work in Canberra and Perth, and is driven not broadcast new material to a national audience. just by the requirement of new technology for the digital era and the complexities of cross-media This programming brings the diverse experience production, but also by the ABC’s continuing of non-metropolitan Australia to life on the improvements in operational efficiency. screen, on air, and online for Australians in every part of the country. In doing so, it A ten-year capital plan is being developed; adds to our common understanding. it will examine the changing asset base and future capital requirements of the Corporation. Corporate 15 Annual Report 2002-03

The National Interest Initiatives have also Eighteen months after its inception, ABC Asia enabled the ABC to increase its business Pacific now has re-broadcasting arrangements and financial reporting. in 25 countries. Its footprint covers Japan, China and Mongolia in the north; Myanmar These services are entirely dependent on to the west; Indonesia and East Timor to the the National Interest Initiatives funding, and south; and Papua New Guinea, the Solomon their continuation will be determined when Islands, Fiji and the Cook Islands in the east. the Government reviews this special funding The ABC Board is also interested in exploring in 2004. opportunities to further extend this service, including to the Indian subcontinent. ABC International Broadcasting Triennial Funding 2003-06 In February 2003, an ABC International The ABC in its Triennial Funding Submission Broadcasting Division was established, bringing 2003-06 sought additional funds to continue its Radio Australia and ABC Asia Pacific television current acclaimed work and to enlarge the into a single management structure. ABC’s contribution to national life. The proposals were further determined by reference to While both services retain their unique editorial Corporate objectives of relevance, appeal components, the new structure brings the and distinctiveness, and the Charter. benefit of greater coordination in marketing and distribution. The Submission included a chapter outlining the financial pressures affecting the sustainability Radio Australia’s use of partner stations which of the Corporation’s programming output broadcast Radio Australia programs direct to and services. their local listeners is an integral component of its diverse transmission strategy. During the Throughout the 2000-03 funding triennium, year, the Asia-Pacific partner alliance grew to the ABC drew on a number of one-off sources 180 stations in 29 countries - currently the of funds and savings to apply supplementary network includes 400 partners strategically funding to television programming, on a located throughout the Asia-Pacific region, non-recurrent basis. These non-recurrent Europe, the Americas and Africa. allocations helped to enrich the program schedule through additional Australian ABC Asia Pacific is unique in the international production and program purchases. broadcasting community, offering a diverse range of quality television programming rather than a single genre - such as movies, sport or news. This programming includes news and current affairs of regional relevance, quality Australian or international drama and documentaries and significant educational programs including English learning content. 16

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Statement by ABC Board of Directors (continued)

The ABC submitted that: Board Committees An integral contribution to the work of the The Corporation has exhausted options for Board and to the good governance of the the application of non-recurrent supplementary Corporation is made by the various Board funding, which will necessitate a reduction to Committees. They deal with a wide range of a sustainable, recurrent base level of activities issues: Finance, Editorial Policies, Audit, the from 2003-04 (assuming no change in the Board Code of Practice, the ABC Advisory real level of the operational Appropriation in Council and Executive Remuneration. Further the new triennium). This in turn will have an information is provided in the Corporate impact on the level and mix of Australian Governance section of this Annual Report and content to be produced and/or purchased, its appendices. as well as the ABC’s capacity to acquire programs internationally and to compete for Conclusion viewer attention by promoting its services. In 2002-03, the Board ensured that the Corporation operated within the limits of In 2001, the ABC launched two digital television available resources and is satisfied that it has multichannels, ABC Kids and Fly, as a proof fulfilled its duties as laid out in section 8 of the of concept and as a demonstration of its Australian Broadcasting Corporation Act. commitment to leadership and innovation in the digital environment. Both channels were The Board commends this report to the subject to non-recurrent funding. The Triennial Parliament and the people of Australia. Funding Submission said: ‘any continued commitment to the ABC’s multichannels Donald McDonald AO Chairman would require the identification of a new Judith Sloan Deputy Chair and/or on-going source of funds’. Russell Balding Managing Director Leith Boully Director Parliament did not provide the ABC with Ron Brunton Director additional funding in the May budget. Available John Gallagher QC Director funding therefore is inadequate to maintain the Ramona Koval Staff Elected Director Corporation’s current levels of programs Ross McLean Director and services. Maurice Newman AC Director

On 26 May 2003, the Managing Director announced that the ABC’s multichannel television services, Fly and ABC Kids would close on 30 June, and that a strategy of further reductions to ABC services and programs would be presented to the Board in the months ahead. Corporate 17 Annual Report 2002-03

ABC Advisory Council

The ABC Advisory Council is established In July 2002, the Council met in Orange, New under the provisions of the ABC Act to South Wales, and held a series of community provide advice to the Board on matters consultations on youth programming, community relating to broadcasting and television standards and regional news. Further work is programs of the Corporation. being developed on the paper on community standards which followed this meeting. The ABC Board appoints the twelve members of the Council for a period of up to four years. Council has continued to make The public are invited to apply to join the Council recommendations to the Board on various through promotions on ABC Radio, Television aspects of ABC programming and has had and Online. This year Simon Andrews, Keith meetings with ABC Executive Directors on Smith, Beverly Smallwood and Michael key areas including audience research, Burgess joined the Council. radio, television and online.

In 2002-03, the Advisory Council met three The Chairman and Managing Director regularly times. It made 25 recommendations and 43 attend Council meetings. The Convenor of the commendations. Council is also a member of the ABC Advisory Council Board Committee and meets with the This year the Council’s Workplan for the year Committee following each Advisory Council included subcommittees to consider Science meeting. The Board and the Advisory Council and Australian Drama. The History report held their regular annual meeting in October commenced last year is also being finalised. 2002. The Convenor of the Advisory Council During the year the Council presented also met with the ABC Executive Directors. Subcommittee reports to the Board on Arts and Sport, a News and Current Affairs issues A summary of the Council’s recommendations paper and a Youth Review Paper. and commendations for the year, together with responses from ABC management is in Appendix 17 (page 187).

Back row standing from left: Mr Simon Andrews, Mr Glyn Parry, Mr Phil Wood, Ms Deborah Klika (Convenor), Mr Keith Smith, Ms Anita Turner and Ms Sascha Walkley. Front row seated from left: Professor Michael Burgess, Sir John Yocklunn, Mrs Carole Miller, Mr Jeff Heath and Ms Beverly Smallwood. 18

Annual Report 2002-03

The Year Ahead

The first year of the new funding triennium will From 1 July 2003, ABC Enterprises be one of consolidation as the ABC takes the responsibilities will be expanded to cover action necessary to operate at a sustainable all commercial activities such as retail, level of funded activities. publishing, program sales and facilities hire. The Division will be striving to increase Closure of the ABC’s two digital television appropriately the net revenue contribution multichannels is a setback. However, the it makes available to support the ABC’s Corporation remains committed to the Charter-based programs and services. long-term goal of participating fully in the The Managing Director has also indicated his emerging digital media environment. For intention to make a further Budget submission the moment, the New Media and Digital to the Government in the hope of securing the Services Division will prioritise its online funding required for the ABC to better serve its and other interactive services. audiences throughout metropolitan, regional and rural Australia. ABC Television and the News and Current Affairs Division will also be required to consolidate their levels of programming activity while seeking to minimise the impact on the fulfilment of Charter responsibilities and on audiences and staff. ABC Radio has less scope for reduction without a direct impact on the viability of local and/or national radio networks.

The Corporation will again seek operational efficiencies from corporate and support Divisions. In the coming year, the Managing Director will complete management reviews of particular operational Divisions, commenced in 2002-03. However, the scope for budget savings is limited because of the efficiency gains previously achieved in support areas. For example, corporate costs fell from 13% of the ABC’s total expenditure in the mid-1990s to around 8% in 2002-03. Corporate 19 Annual Report 2002-03