AUSTRALIAN BROADCASTING AUTHORITY annual report Sydney 1995 Annual N.eport 1994-95 © Commonwealth of Australia, 1995 ISSN 1320-2863 Design by Media and Public Relations A1llst»alian Jllmadcasting Authority ll'dnted ln Autst?alia by Pirie ll'rinte•·s, lFyshwick, ACT For illqu:iiries aboun: this report, coITTutact: Publications Officer Australian Broadcasting Authority at address below IFoir imJ[1llili'ies about iruo<'maUon to be made avail!able rro Members olf Parliament al!lld Senators Oifil Ji'eq_ll.l!est, contact: Director Corporate Senrices Branch Australian Broadcasting Authority at address below lF<H· inqMiides •·elaHng i.o lFi·eedom of Knfo;·maHon, contact: FO! Officer Australian Broadcasting Authority Level 15, 201 Sussex Street Sydney NSW 2000 Ph. (02) 334 7700 Fax: (02) 334 7799 Postal address: PO Box QSOO Queen Victoria Building NSW 2000 2 Introduction Auistralian JBroadcasHng Authority Head Office Level 15 Darling Park 201 Sussex St 26 September 1995 Sydney PO Box Q500 Queen Victoria Building NSW 2000 The Hon. Michael Lee MP Phone (02) 334 7700 Minister for Communications and the Arts Fax (02) 334 7799 DX 13012 Market St Parliament House Sydney CANBERRA ACT 2600 Dear Minister, In accordance with the provisions of clause 14 of Schedule 2 of the Broadcasting Services Act 1992, I am pleased to present this report on the operations of the Australian Broadcasting Authority for the year 1994-95. Yours sincerely, 3 4 Introduction Table of contents Letter of transmission 3 Introduction to the report 7 The year in review 8 Corporate overview 17 Performance reporting Objective 1 21 Objective 2 30 Objective 3 36 Objective 4 50 Objective 5 54 Objective 6 68 Objective 7 74 Appendices 1 Staffing overview 79 2 Complaints, classified by category 1994-95 88 3 Freedom of information 89 4 Compliance index 104 5 Financial statements 105 Index 117 5 6 Introduction The report is presented in accordance with the reporting requirements for departmental annual reports. The Authority meets its mission statement (see inside front cover) by means of seven objectives. Each of these objectives is addressed, and the outcomes and highlights of the reporting period, in the following section ·on performance reporting. A detailed discussion of the Authority's achievements against those objectives begins on p. 21. In summary, the contents of this annual report are: The year in review, including significant issues during the reporting year. Corporate overview, including structure of the Authority, and a summary of its powers and functions. Performance reports, the Authority's achievements and activities for the year, assessed against the Corporate Plan objectives. Social justice, including social justice and equity, EEO, internal and external scrutiny. Summary statements, performance pay, staffing matters. 7 Annual Report 1994-95 . The year 1n review The year just completed has been an extremely full and productive one .for the Australian Broadcasting Authority. On the domestic front, the Authority has made significant progress in the areas of planning the broadcasting services bands and allocating new licences and has achieved notable results in relation to the program standards regulating Australian content and children's programming on commercial television. Three major ownership and control investigations contributed to public debate on the issue of control of the media and assisted the Authority in providing advice to the Minister for Communications and the Arts on the operation of the Broadcasting Services Act. The Authority's recommendations for amendment of the ownership and control rules of the Act were endorsed in a Cabinet decision in June·1995. On the international front, the Authority has developed relationships with broadcasting bodies in the Asia-Pacific region and paved the way for further interaction with ot)ler broadcasting regulators. if'~<lli'lli"liriig The Authority made considerable headway in its program to plan the availability of broadcasting services using the broadcasting bands of the radiofrequency spectrum. In August 1994, the Authority determined an initial, Australia-wide frequency allotment plan. This document contained broad-brush decisions about allocation of the remaining available television channels and radio frequencies between the various areas of Australia. Also in August, the Authority released the first draft licence area plan, for the Riverland area of South Australia. Completion of licence area plans is the final stage of the public planning process. It will enable allocation of additional commercial and community broadcasting licences and also provide spectrum for other uses such as narrowcasting. In the reporting year, the Authority released a total of nine draft licence area plans for public comment. These plans covered most of the highest priority areas of Australia. It also substantially completed the initial round of public and -industry consultation in the second and third highest priority areas. (In a 1993 decision, the Authority divided the broadcasting spectrum planning task into five priority groups of planning zones.) Drafts of the Authority's technical planning guidelines were also circulated for comment during the year. These guidelines will provide mandatory rules for licensees wishing to plan new or varied technical operating conditions for their transmission facilities. 8 Introduction Between them, the licence area plans and the technical planning guidelines will create a new regulatory environment for future broadcasting services, one in which the Authority will set broad parameters while responsibility for in-depth planning of technical facilities will move to the broadcasters themselves. Throughout the year, the Authority continued to plan additional national broadcasting services, open narrowcasting services, re-transmission of existing services and temporary services for aspirant community broadcasters ahead of licence area plans. Licence all<0ca1i:ions Throughout the year, the Authority has contributed to the development of a diversity of broadcasting services. A revised policy for temporary transmissions by aspirant community broadcasters was issued. To allow aspirant community radio groups to develop their radio operating skills and encourage support for permanent community licences through the planning process, the Authority provides frequencies to these groups on a short term basis for temporary transmissions. The new policy was well received by aspirants and industry bodies alike. In framing the policy, the Authority sought to achieve a balance between preserving opportunities for genuine aspirant community broadcasters to hone their skills and build community support while preserving the essentially temporary nature of the broadcasts. The Authority was also encouraged by the progress made by the licensees of the sixth free-to-air television channel, who consolidated their community and educational services during the year. Through re-transmission approvals, the Authority cleared the way for nine areas in remote Australia to receive additional complementary television services. The Authority is close to completing the development of a price-based commercial licence allocation system and merit-based community licence allocation procedures, which will enable the licensing of new broadcasting serv'ices in 1995-96 and subsequent years. The Authority issued 800 licences for non-satellite pay TV services to 17 different licensees during the year. The Authority has now issued more than one thousand licences for non-satellite subscription television services. Con1i:roi The Authority has been conducting three major investigations into potential breaches of the control rules of the Act. The investigations have been a focus for intense media attention and speculation over the issue of cross-media ownership and control of media organisations during the year. Following a ten week investigation, the Authority found that Mr Kerry Packer was not in breach of the Act as a result of his interests in the Fairfax newspaper group. Despite Mr Packer holding company interests of over 17 per cent in Fairfax, the 9 Annual Report 1994-95 Authority found there was sufficient proof to show Mr Packer was not in a position to exercise control of the company. The Authority found that neither Mr Packer nor any company or person associated with him was in a position to exercise control of the operations of Fairfax or the selection of material to be published in the company's newspapers. It also found that neither Mr Packer nor any associate of Mr Packer exercised direction or restraint over any substantial issue affecting the management or affairs of Fairfax and that neither Mr Packer nor any associate has the right to appoint a director, veto the appointment of a director or veto any action taken by the board of directors of Fairfax. In June 1995, Federal Cabinet endorsed the Authority's recommendations to amend the ownership and control rules contained in the Act. The recommendations were contained in the Authority's first report to the Minister for Communications and the Arts on the operation of the Act AiustraliaD'11 contemt One of the Authority's major responsibilities is in the area of Australian content and in the principles which underpin Australia's cultural policy. During the year, the Authority released a new proposed program standard for Australian content on commercial television for public comment. The release of the draft standard followed extensive consultation with members of the broadcasting