in any place at any time

in any situation

Annual Report2005

Australian Broadcasting Corporation ABC services of all Australians via reached an estimated75% television, radio and online

There are now 1.7 million pages of information rich ABC Online content at www.abc.net.au

ABC radio weekly metropolitan audience reach 3.766 millionor 34%

ABC weekly metropolitan reach of TV8.8 million or 64.2% and weekly regional reach of 3.9 million or 62.6%

ABC Online reaches 14.4% of Australia’s active Internet population

90% of Australians continue to believe the ABC provides a valuable service to the community. 1

New Australian-made TV programs launched include Spicks and Specks, Talking Heads, How The Quest Was Won, Beat The Chef, Collectors, Second Opinion, Blue Water High and Outback House

We launched digital radio services digJAZZ and digCOUNTRY Radio Australia now available via 200 local re-broadcasters in 40 countries, shortwave broadcasts, satellite services and a 24-hour FM network

ABC2 was launched... the ABC’s second free-to-air digital television channel

ABC Asia Pacific television is seen in 39 countries, retransmitted by 155 pay-TV operators, in more than 200 000 hotel rooms and available in 9 million homes

ABC produced 4 476 hours of Australian television content, including more than 2 221 hours of news and current affairs

40 ABC Shops and 79 ABC Centres through out Australia and online generated $10.6 million net profit which was returned to programming last year

ABC had total revenues of $959m from ordinary activities with $1.026 billion in total assets 2 abc any time | any place reaches australians

radio

television

online

shops

international broadcasting 3 Annual Report 2004–05

Radio The ABC has four national radio networks —Radio National, ABC Classic FM, triple j and ABC NewsRadio—as well as 60 Local Radio stations around Australia, and three Internet music-based services, dig, digJAZZ and digCOUNTRY. Television ABC Television is a national service with state and territory news breakouts. It is available nationally in analog and digitally on free-to-air digital and subscription television platforms.

The ABC2 digital television service is available free-to-air and on subscription platforms. Online The ABC Online website contains 1.7 million pages of content across 15 subject gateways, including content designed for broadband delivery. ABC services are also available via WAP, SMS and i-mode platforms. Shops ABC-related products are available from 40 ABC Shops and 79 ABC Centres throughout Australia, as well as the ABC Shop Online and an order-based Customer Delivery Erina Service. International Broadcasting International radio service Radio Australia, is available by short wave, satellite and rebroadcast arrangements to Asia and the Pacific.

International television and online service, ABC Asia Pacific, is available via satellite and rebroadcast arrangements to Asia and the Pacific. 4

ABC is four star dining, not a diet of McDonalds or KFC. The other channels are in the fast food game—they just give you something to fill you up and they don’t care about the quality. Sydney frequent user

They don’t have the same things on each week. It changes constantly. Young viewer, Brisbane

We need an unbiased Australian point of view that is not affected by commercial and $$$ interests. The ABC is uniquely Australian and an important part of our society and national identity. ABC viewer, Melbourne

I need to connect with the world and see and hear things

in an unemotional intelligent manner. Male viewer

We all know the ABC’s budget is small. We know they are absolutely pushing every possible way to make the most with the dollars they get. They do amazing things with what they get. Female 40s, Sydney 5

ABC has the best quality of any station. They have good diversity of shows. They assume the audience has a brain in its head. 30s male, Adelaide

ABC reaches out. It feels inclusive. A feeling of connections. Young mum, Adelaide

It’s ‘ours’. It’s Australian, its culturally sympathetic, it's the right mix, it's not too sporty. It's everything for everybody. Single 30s female

It’s always been in my life. Sydney viewer, 40s

About ABC Classic FM: It was more than I thought.

I was wrapped in the blues and jazz. New listener 30s, Melbourne

I didn’t expect to see car racing on the ABC 20s male, Sydney

Source: May 2005 ABC ‘viewer and non-viewer’ Audience Research 6 Annual Report 2004–05

on any platform

Four Corners Broadband Special Edition Launched in August 2004, Four Corners Broadband Special Editions on ABC Online are produced to complement some of the major investigative reports aired in the Four Corners television series. They provide audiences with supplementary material, such as additional video footage, extended interviews, detailed chronologies, documentary evidence, interactive maps and program transcripts.

These Broadband Specials are part of the ABC’s ongoing commitment to develop new and innovative ways of presenting content across existing and emerging platforms, in order to ensure that the ABC remains accessible and relevant to Australian audiences.

The introduction of podcasting allows listeners to ABC radio networks to hear programs they select at a time they choose. Cross-platform production creates content for the second channel ABC2 and video-on-demand on ABC Broadband. Content is also carried on digital subscription television services and mobile platforms. 7 Annual Report 2004–05

I found this site at once amazing full of interesting knowledge... very well presented. Thanks a lot. by email from a male, Toronto, Canada Office of Donald McDonald AO Chairman

4 October 2005 ABC Ultimo Centre 700 Harris Street Ultimo NSW 2007 Australia

GPO Box 9994 Sydney NSW 2001

Tel. +61 2 8333 5363 The Hon. Helen Coonan Fax. +61 2 8333 2967 Minister for Communications, abc.net.au 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 2005.

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. Annual Report 2004–05

Letter of Transmittal 8

Corporate Report ABC Vision, Mission Statement and Values 10 Significant Events in the Past Year 10 Corporate Plan Summary 13 Board of Directors 15 Statement by ABC Board of Directors 18 ABC Advisory Council 22 The Year Ahead 23

Overview ABC Audiences 26 ABC Services 42 Corporate Governance 44 Financial Summary 54 ABC Organisational Chart 57

ABC Divisions Radio 60 Television 66 New Media and Digital Services 73 News and Current Affairs 77 International Broadcasting 81 Enterprises 86 Operations 91 Strategy and Communications 101

Summary Reports Corporate Plan Performance Summary 108 Outcomes and Outputs 118

Independent Audit Report 134 Financial Statements 135

Appendices 173

ABC Charter and Duties of the Board 223 10 Annual Report 2004–05 ABC Vision, Mission and Values

No hidden agendas—aspiring to the highest editorial standards of accuracy Vision and impartiality, reflecting a balanced Valued for playing an active role and broad range of views and interests in the lives of all Australians. Creative—a commitment to innovation, ideas and support for talented people Mission Uphold the ABC’s Charter through Courageous—encouraging the distinctive programs and services leadership and vision to adapt to that inform, educate and entertain. change with integrity and decisiveness Supportive—providing opportunities Values for ABC staff to grow, personally and Distinctively Australian—reflecting professionally, during their time with the nation’s identity and culture the Corporation

Open to all—reaching out to engage Accountable—demonstrating high audiences, bringing Australians standards of governance and value for together money to the Australian community.

Significant Events

July 2004 2004–05 triple j hosted One Night Stand concert ABC Radio Sport provided over 200 hours in Natimuk in western Victoria, increasing of coverage of the Athens Olympics on the town’s population on the night from Local Radio across Australia. 500 to 8 000. ABC NewsRadio celebrated its 10th ABC Tasmania was host broadcaster for anniversary on 16 August. the State funeral of former Tasmanian Premier Jim Bacon. Radio Australia produced an 11-part series entitled Smart Societies in the August 2004 Asia Pacific. News and Current Affairs and New Media and Digital Services made the first Four Corners Special Edition available online. 11 Annual Report 2004–05

September 2004 December 2004 ABC Magazines launched the 2004–05 ABC Radio first to introduce podcasting in edition of the ABC Cricket Magazine, Australia with trial podcast of stories from marking its 70th year of publication. triple j current affairs program Hack.

Radio Australia launched its new 24-hour ABC provided extensive coverage of the FM service in Cambodia—101.5 FM Radio Tsunami disaster in south east Asia. Radio Australia Phnom Penh, its fourth 24-hour Australia was the first ABC service to carry FM relay. the news and its Indonesian service provided intensive coverage. October 2004 Agreement reached for ABC Television and January 2005 Radio services to be retransmitted on the ABC South Australia covered the devastating FOXTEL Digital satellite and cable platform. bushfires on the Eyre Penninsula.

The 2004 ABC Federal Election website A new look for the flagship 7pm peaked at 2.4 million page accesses in Television News, as well as new theme the week of the election, a 1 046% traffic music, was introduced across the country increase over the 2001 Election site. on Australia Day. digJAZZ Internet music stream launched ABC Television launched RollerCoaster, at the Wangaratta Jazz Festival. strengthening the network’s connection with older children. The 9th annual Andrew Olle Media Lecture delivered by Publishing and Broadcasting February 2005 Limited Director, Chris Anderson. ABC Television re-launched the education news series, Behind the News. Radio Australia conducted a live broadcast with Beijing Radio, becoming News and Current Affairs reintroduced the the first international radio broadcaster cadet journalist program with nine cadets to be involved in a live outside broadcast posted to capital-city newsrooms around in China. Australia.

November 2004 March 2005 Renewal of the agreement for the ABC Asia Pacific signed an Agreement with retransmission of ABC services on the Vietnam Television (VTV) for distribution AUSTAR satellite and cable platform. throughout Vietnam.

ABC Television’s broadcast of the final New Media and Digital Services launched episode of Kath and Kim (series 3) attracted ABC2. more than two million viewers. ABC Television launched five new half-hour 2004 Boyer Lectures entitled Tale of Two weekly programs showcasing ABC production Hemispheres delivered by Australian writer outside Sydney and Melbourne. and academic, Peter Conrad. 12 Annual Report 2004–05 Significant Events 2004–05 (Continued)

April 2005 June 2005 digCOUNTRY officially launched at the ABC Radio services, including dig Vangard Hotel in Newtown in Sydney. and digJAZZ, became available on FOXTEL and AUSTAR digital Extensive coverage of the funeral of subscription platforms. Pope John Paul II across all platforms. Western Australia production facilities Programs to commemorate the 90th moved to new purpose-built broadcast anniversary of the Gallipoli conflict were facilities at East Perth. broadcast across all networks. A live feed of the dawn service at Gallipoli was provided ABC Television launched the landmark to broadcasters in Australia, New Zealand historical reality series, Outback House. and Turkey.

May 2005 ABC Television premiered the new Australian children’s drama series, Blue Water High, about teenagers selected for a residential surfing school.

triple j’s One Night Stand concert in Ayr in Queensland attracted a crowd of 10 000.

The first Country Hour 60th Anniversary Roadshow held in the town of Rainbow in Victoria.

Radio National began a podcasting trial of eight programs, with over 3 000 people participating in the trial.

ABC Queensland was the host broadcaster for state funeral of Sir Joh Bjelke-Petersen. 13 Annual Report 2004–05 Corporate Plan Summary

The Board adopted a new ABC Corporate Corporation Act 1983 (‘ABC Act’), including Plan for the 2004–07 period, continuing to the Charter (s.6). position the Corporation for the inevitable transformation of the Australian media Specific legislative responsibilities are environment. The Corporate Plan is framed addressed through the strategic priorities around four Corporate Objectives derived and actions identified in support of these explicitly from the Australian Broadcasting four overall objectives.

Objective 1. Contribute to a sense of national identity The ABC will... Create more opportunities for audiences to connect with the diversity of their communities through an ABC that is distinctively Australian (s.6(1)(a)(i) of the ABC Act).

Meeting its legislative obligations... • Content genres: • Reflect cultural diversity (s.6(1)(a)(i)) • News and information (ss.6(1)(b) • Transmit overseas programs of and 8(1)(c)) news, current affairs, entertainment • Programs of an educational nature and cultural enrichment (s.6(1)(b)) (s.6(1)(a)(i)) • Take account of the multicultural • Promotion of the musical, dramatic character of the Australian and other performing arts (s.6(1)(c)) community (s.6(2)(a)(iv))

Its overall effectiveness will be measured by... 2004–05 2003–04 2002–03 2001–02 % of people who regard the ABC to be distinctively Australian and contributing to Australia’s national identity 84 83 82 81 % of people who believe the ABC reflects the cultural diversity of the Australian community 82 78 80 78

Detailed reporting against Objective 1 can be found on pages 108 and 112.

Objective 2. Engage audiences with relevant and innovative programs and services The ABC will... Reach as many people as possible through the ABC’s established Charter services and emerging digital media (ss.6(1)(a) and 6(2)(a)(iii)).

Meeting its legislative obligations to... • Programs of wide appeal and specialised interests (s.6(2)(a)(iii)) • Innovative and comprehensive (s.6(1)(a)) • Take account of services provided by the commercial and community broadcasting sectors (s.6(2)(a)(I))

Its overall effectiveness will be measured by... 2004–05 2003–04 2002–03 2001–02 Overall (Combined) Audience Reach (%) 75 75 NA* NA* % of people who perceive the ABC to be innovative 74 72 70 70 * Combined Audience reach figures were not calculated prior to 2003–04

Detailed reporting against Objective 2 can be found on pages 109 and 116. 14 Annual Report 2004–05

Corporate Plan Summary (Continued)

Objective 3. Ensure the ABC’s independence, integrity and high standards The ABC will... Advance the ABC’s reputation and high performance standards through the ongoing evaluation of governance, policies and procedures (ss.6(1)(a) and 8(1)(b)).

Meeting its legislative obligations to... • Maintain the independence and integrity of the Corporation (s.8(1)(b)) • Ensure news and information is accurate and impartial (s.8(1)(c)) • Develop codes of practice relating to programs (s.8(1)(e)) • Take account of standards determined by the Australian Broadcasting Authority (s.6(2)(a)(ii)) • Comply with all relevant legislation (s.8(1)(d)) • Give consideration to any policy statement by the Commonwealth Government on any matter relevant to broadcasting or administration (s.8(2))

Its overall effectiveness will be measured by... 2004–05 2003–04 2002–03 2001–02 % of people who believe the ABC Television 80 77 79 78 provides quality programming Radio 63 61 60 59 Online 89 87 89 90 % of people who believe the ABC is balanced and even-handed when reporting news and current affairs 82 80 81 79

Detailed reporting against Objective 3 can be found on pages 110 and 119.

Objective 4. Provide maximum benefit to the people of Australia The ABC will... Achieve the optimal use of assets and resources and manage the long-term sustainability of the Corporation.

Meeting its legislative obligation to... Ensure the functions of the Corporation are performed efficiently and with the maximum benefit to the people of Australia (s.8(1)(a)).

Its overall effectiveness will be measured by... 2004–05 2003–04 2002–03 2001–02 % of people who value the ABC and its services to the community 90 89 89 91 % of people who believe the ABC is efficient and well managed 70 64 68 61

Detailed reporting against Objective 4 can be found on pages 111 and 121. 15 Annual Report 2004–05 ABC Board of Directors

1 | Donald McDonald

2 | Russell Balding 123 3 | Ramona Koval

4 | John Gallagher

5 | Leith Boully

6 | Ron Brunton

7 | Janet Albrechsten 456

7

In accordance with section 12 of the Australian Broadcasting Corporation Act 1983, the ABC Board consists of the Managing Director, the staff-elected Director and not fewer than five nor more than seven other non-executive Directors.

The non-executive directors, including the Chairperson and Deputy Chairperson, are appointed by the Governor-General on advice from the Executive Council. The Managing Director is appointed by the Board, while the staff-elected Director is appointed by a ballot process conducted by the Australian Electoral Commission.

Board governance processes are detailed in Corporate Governance (page 44). 16 Annual Report 2004–05

ABC Board of Directors (Continued)

Donald McDonald AO having held senior financial management Appointed ABC Chairman in July 1996, positions within major NSW public sector Donald McDonald was re-appointed organisations. He has had extensive Chairman on 24 July 2001 for a second experience in financial and executive five-year term. general management, accounting, auditing and capital works programming Donald McDonald has been involved in in a number of organisations. the administration of arts enterprises for over 35 years, including Sydney Theatre Mr Balding holds a Bachelor of Business Company, Musica Viva Australia and The Studies and a Diploma of Technology Australian Opera, where he was chief (Commerce). He is a Fellow of CPA Australia executive for ten years until his and a member of the Australian Institute appointment to the ABC in 1996. of Company Directors.

He is Chairman of The Really Useful Ramona Koval Company Asia Pacific Pty Ltd, and is a Re-elected Staff elected Director from Director of Focus Publishing Pty Ltd. He 16 June 2004 for a further two-year term. is also Chairman of The Australiana Fund and the Glebe Administration Board. Ramona Koval presents and produces the weekly ABC Radio National program Books Mr McDonald was Chairman of the and Writing, co-presents the monthly talk- Constitutional Centenary Foundation for back national book club Australia Talks three years to December 2000 and was Books and is a contributor to Big Ideas. a member of the Board of the Sydney She is a freelance columnist and newspaper Organising Committee for the Olympic Games feature writer and is the author of one novel, and Chairman of its Cultural Commission. Samovar, and three books of non-fiction.

In 2001, he published The Boyer Collection, Ms Koval holds a Bachelor of Science a selected anthology of the Boyer Lectures and a Diploma of Education. since their inception in 1959 to 2000. John Gallagher QC Mr McDonald holds a Bachelor of Commerce Appointed a Director for a five-year term from the University of New South Wales from 9 December 1999, John Gallagher and an Honorary Doctor of Letters. was re-appointed for a three-year term from 24 February 2005. Russell Balding Appointed Managing Director on John Gallagher is a Barrister and 29 May 2002 for a five-year term. Queen’s Counsel.

Deputy Managing Director from He was formerly a Director of Mackay 10 December 2001, Russell Balding was Television Limited (1971–87) as well as previously Director of Funding, Finance a Director of companies operating hotels and Support Services. Mr Balding has and liquor outlets in Queensland and had a distinguished career in public sector New South Wales from 1960 to 1996. financial management and administration, 17 Annual Report 2004–05

Mr Gallagher holds a Bachelor of In addition, he has published research Arts and a Bachelor of Laws from papers and books on a wide range of The University of Queensland. anthropological issues and has lectured in anthropology at various universities Leith Boully in Australia and the University of Papua Appointed a Director for a five-year New Guinea. term from 11 October 2000. Ron Brunton has a Doctorate in Leith Boully, who lives in regional Anthropology from La Trobe University. Queensland, is the Director of the Boully Pastoral Company, Chair of the Community Janet Albrechtsen Advisory Committee of the Murray Darling Appointed a Director for a five-year Basin Ministerial Council and Chairman term from 24 February 2005. of the Centre for Rural and Regional Development. She is also an Adjunct Dr Janet Albrechtsen, a former solicitor, Professor with the Centre for Ecological is a newspaper columnist with The Economics and Water Policy Research Australian newspaper. She has worked at University of New England. for The Australian Financial Review, The Sydney Morning Herald, The Age, The She has an extensive background in business Sunday Age and Quadrant magazine. management and substantial experience in corporate governance gained through her She was previously employed with the work with government advisory committees law firm Freehill, Hollingdale and Page, and community organisations. practising in the areas of banking and finance, corporate and securities law. Mrs Boully holds a Bachelor of Rural Science and a Diploma of Business Studies. Dr Albrechtsen has a Doctorate in Law from the University of Sydney and has Ron Brunton taught at the University of Sydney Appointed a Director for a five-year Law School. term from 1 May 2003. Retiring Directors Dr Ron Brunton is currently the Director The five-year terms of Professor Judith of Encompass Research Pty Ltd—an Sloan and Mr Ross McLean expired on organisation engaged in anthropological 9 August 2004. Both terms were extended and socio-economic research, concentrating for a further six-month period that expired on native title, Indigenous heritage, in February 2005. immigration and environmental issues. A widely published writer, Ron 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 to 2001. 18 Annual Report 2004–05 Board Directors’ Statement

During the 2004–05 year, the ABC has The Board considered the ABC’s position remained responsive to the changing tastes as the national public broadcaster in relation and expectations of the public, and ensured to the many shifts of regulatory policy and it remains at the heart of contemporary technical changes in the rearrangement of Australian culture. the media industry. The Board believes that the ABC’s significance in contributing to The Corporation’s activities have been guided media diversity remains undiminished. by the principles of the ABC’s Charter, and the year’s achievements are measured and By embracing the exploration of new explained in this Annual Report. media, the Board hopes to keep the ABC at the leading edge of new technologies. As Future Direction a significant innovator within the Australian In August 2004, the Board endorsed the new electronic media, the ABC will be an integral ABC Corporate Plan 2004–07, which part of this new age in media. defines the future direction of the Corporation. In accordance with the objective of The strategies and objectives set out in engaging audiences with relevant and the Corporate Plan, as required under the innovative services, the ABC has continued Australian Broadcasting Corporation Act 1983 to reach more and more people via new (ABC Act), point to a period of continuing and emerging media. challenge and change for the ABC. There is a growing demand for programming In keeping with its obligations under that is accessible and available at any time, Section 8 of the ABC Act, the Board continually in any place, and in any situation. The measures and assesses ABC management’s ABC has explored innovative program and performance over the course of the year, distribution ideas to meet that demand. using a range of management and governance reports. The year has also seen growing personalisation of media content, as By 30 June 2005, 95% of Corporate Plan more devices for aggregating and storing targets were either ‘achieved’ or ‘on track’ content reach the market. for achievement. Of the seven targets (5%) rated as ‘not achieved’, two were moving triple j was the first Australian radio towards completion in accordance with revised service to offer podcasting. Radio National deadlines. A detailed summary of results is subsequently has enjoyed enormous success provided in the ‘Performance Against the with its podcast programs. This is encouraging Corporate Plan 2004–07’ section of evidence of new potential public interest in this report (see page 108). ABC programming once liberated from the schedule. The Context of Change During the past year, ABC Radio and Television have contended with renewed and intense competition from the commercial sector, including new licensees in radio and the gradual growth of pay television. 19 Annual Report 2004–05

Further Digital Innovation The barriers to re-establishing an international ABC2, Australia’s newest free-to-air digital television service from Australia were television channel, began broadcasting on considerable. The experience of moving an 7 March 2005. earlier service from the ABC to a commercial television network—and its subsequent The range of programs ABC2 is permitted to abandonment by the commercial service— show is severely restricted. Though the ABC had come at a cost to Australia’s reputation excels in many types of television, such as in international television. national news and current affairs, comedy, national sport, and drama, it is prevented Trust had to be rebuilt, as well as interest. from screening them due to ‘genre restrictions’ Despite these difficulties, the enduring in the digital television regime. commitment of the ABC gave much-needed credibility to the project, and ABC Asia Pacific The Board has made submissions to reviews was successfully inaugurated in 2001. of digital broadcasting stressing the impact of genre restrictions on the ABC’s role in The service suffered a great loss when providing diversity in the media. John Doherty, the inaugural Project Manager and later Head of International The Broadband Production Initiative is an Operations for ABC Asia Pacific television, exclusive partnership between the Australian died on 29 December 2004. Film Commission (AFC) and ABC New Media and Digital Services that provides Australians In recognition of his role in the success of with a range of locally-produced broadband ABC Asia Pacific, the Minister for Foreign and cross-platform content. Seven new Affairs, the Hon. Alexander Downer, has projects began this year. instituted an annual John Doherty Asia Pacific Journalism Internship. These productions feature primarily on ABC Broadband, some can be seen on ABC2 In June 2005, the Department of Foreign and the main television channel and some Affairs and Trade announced that the are heard on triple j, providing valuable international television service agreement exposure for independent producers. for 2006–11 would go to public tender. The ABC intends to put in a competitive This significant activity is positioning the tender; given its successful history with Corporation for a future in which broadband ABC Asia Pacific the Board hopes the will simply be another mainstream media tender will be successful. platform. At the same time, Radio Australia continued International Broadcasting to build audiences throughout the Asia Now in its fourth year of operation, ABC Asia Pacific region, both through its broadcasts Pacific is a vibrant, rapidly-growing service, and online services. which complements the role of domestic networks in contributing to and projecting a sense of national identity. The service is provided under an agreement with the Department of Foreign Affairs and Trade and has met all contracted Key Performance Indicators. 20 Annual Report 2004–05 Board Directors’ Statement (Continued)

More than the Headlines In seeking to extend the independence ABC journalism plays a vital role in extending of Panel appointments the Board, for the public understanding and interest in the first time, invited two independent international life and events, augmenting bodies, the St James Ethics Centre and the our international perspective. Communications Law Centre, to nominate qualified persons to be considered by the This was evident when the tsunami struck Board as potential panellists. on Sunday, 26 December last year. The ABC was the first Australian broadcaster with In addition to its current brief, the reformed journalists on the ground. Tim Palmer filed ICRP will now also review written complaints his first story for AM on the Monday morning. alleging serious and specific cases of factual Despite the extreme conditions, Peter Lloyd inaccuracy. and Geoff Thompson also filed stories within 24 hours. It is the Board’s belief that the work of this newly-constituted panel in assessing The insights provided by these ABC and helping resolve complaints will further correspondents in the aftermath of this strengthen the quality of ABC programming. tragedy were testimony that the continuing trust in ABC News and Current Affairs is The Board would like to place on record well justified. A key priority of the Board its appreciation of the exemplary and is to preserve and enhance the performance distinguished service provided by former which warrants that trust through the panellists, Ted Thomas AM (Convenor), application of governance processes to Margaret Jones, Professor Michael ensure the ABC’s independence, integrity Chesterman, Bob Johnson and Stepan and high standards. Kerkyasharian AM.

Independent Complaints Financial Sustainability Review Panel Reform of ABC Services The Independent Complaints Review In late 2005, the ABC will present its Panel (ICRP) is responsible for the review sixth Triennial Funding Submission to of complaints relating to serious bias, lack Government, for the period 2006–09. of balance or unfair treatment, and serious and specific cases of factual inaccuracy. Triennial funding for the ABC was inaugurated in 1988. Since that time, every three years, In May this year, the Board reformed the ABC has presented to Government a the appointment process of the ICRP submission for funding for the next triennium. to significantly strengthen its independence and increase the efficiency of Panel A growing gap now exists between the administration. The new Panel consists of funding provided and that which is needed the Convenor, the Hon. Michael Foster QC, to maximise the potential of ABC programs Ms Susan Brooks and Ms Jane Singleton and services in the new digital environment. AM, who were appointed effective from It is also important that the national 1 June 2005. broadcaster is able to keep pace with evolving public demand for its services. 21 Annual Report 2004–05

To inform the Triennial Funding Submission Gallagher for a three-year term. Dr. Janet process, the Board has asked the Government Albrechtsen was welcomed to the Board to engage an independent third party to assess for a five-year term. the adequacy of the Corporation’s funding. This demonstrated the ABC’s commitment In 2004–05 the Board ensured that the to providing maximum benefit for the people Corporation operated within the limits of of Australia through its activities. the available resources and continues to work towards ensuring that ABC Editorial The ABC Funding Adequacy and Efficiency Policies are consistent with its duties Review will provide the ABC with important under Section 8 of the ABC Act (see evidence which may ultimately deliver a more inside back cover). positive outcome for the future sustainability of the ABC. The Board commends this report to the Parliament and the people of Australia. Future infrastructure is a critical area for the Corporation. With growing demands for new services and technologies, the continuing Donald McDonald AO Chairman provision of essential services will require expanding capital investment, and the Board Russell Balding Managing Director is paying a great deal of attention to this matter. Janet Albrechtsen Director A critical point has been reached. Unless adequate funding is secured for the coming Leith Boully Director triennium, the Board will be faced with a range of fundamental questions about the extent Ron Brunton Director and quality of ABC programming and services. John Gallagher QC Director During the past year, the ABC has continued to inspire wide public support. The Board Ramona Koval Staff Elected Director believes the Corporation remains worthy of that great public support and that, with an appropriate degree of Parliamentary support, the ABC will continue making a vital, unique contribution to Australian life.

Deputy Chair Professor Judith Sloan, and Ross McLean retired from the Board during the year. The Board would like to thank Professor Sloan for the significant contribution made as Deputy Chair during her term and Ross McLean for his Chairmanship of the Corporation’s Audit and Risk Committee. The Board welcomed the return of John 22 Annual Report 2004–05 ABC Advisory Council

ABC Advisory Council Back row standing from left: Mr Simon Andrews, Ms Sascha Walkley, Mr Alan Wu, Mr Phil Wood, Mr Keith Smith, Dr Pamela Chick and Mrs Robyn Lambley | Front row seated from left: Ms Beverly Smallwood, Mr Glyn Parry, Dr Paul Collier, Ms Deborah Klika (Convenor) and Professor Michael Burgess.

The ABC Advisory Council is established the Council’s deliberations. The Council held under the provisions of the ABC Act to focus group discussions with school groups provide the ABC Board with advice on on science programming as background matters relating to the programming for its Science Discussion Paper Science: of the Corporation. The Council consists Bringing Knowledge into the Community. of twelve members appointed for a period of up to four years. Members of the public The Council prepared a Discussion Paper are invited to apply to join the Council entitled Australian Drama: Connecting with through promotions on ABC Radio, Television, our Audiences: Pushing the Right Buttons. Online and advertisements in the press. The Council’s papers on sport, arts and news and current affairs were reviewed and further The Convenor of the ABC Advisory Council, discussion took place with ABC program Deborah Klika, attends meetings of the ABC makers. A paper is in preparation on The Board Advisory Council Committee. Professor Role of Radio. These papers have or will Judith Sloan chaired the Committee until be considered by the ABC Board Advisory March 2005, when Dr Ron Brunton was Council Committee and circulated widely in appointed Chairman. The Board Advisory the ABC. They will also be considered in the Council Committee met after each Advisory Corporation’s Corporate Planning processes. Council meeting and considered discussion papers prepared by the Council and The main focus of the Advisory Council’s work recommendations made by the Council, for the year was a series of what are broadly along with responses from ABC Executives. termed ‘futures’ papers. These papers, based The Board and the Advisory Council held on the unique role of the national broadcaster, their annual meeting in December 2004. examine ways in which the ABC can move into the future confident that it can carry The Council made recommendations out its obligations to the community, be to the Board on various aspects of ABC innovative and creative, take risks, embrace programming and continued its custom new technologies and outlets for programs of meeting with ABC Divisional Directors and at the same time be responsive to in key areas. demands for quality content.

The Council met three times during the year The Advisory Council’s recommendations and between meetings individual members and commendations for the year, together obtained feedback and views from a diverse with responses from ABC management range of communities which formed part of are available in Appendix 17 (Page 186). 23 Annual Report 2004–05 The Year Ahead

The Corporation commences 2005–06 as the final year of its current funding triennium. It does so with the dual aim of maintaining faith with audiences in a changing media environment and ensuring the financial sustainability of its activities.

Although the ABC operated at a sustainable level of funded activities in 2004–05, recurring cost pressures will again become a budget issue in the 2006–09 triennium, assuming no change in the real level of base funding. The pressures relate both to operational and capital expenditure. They Earlier this year, the Australian National include the current state of the national Audit Office (ANAO) concluded that the ABC and international market in which the ABC had efficiently undertaken the conversion operates for acquiring and selling content, to digital terrestrial television broadcasting. and in which it competes for talent; cost But, as the ANAO acknowledged, this increases and pressures in the broadcasting project did not constitute the entire digital and media industries on the ABC budget; conversion process. For example, much of and the impact of digital conversion on the technology infrastructure of ABC Radio the Corporation’s capital and operational is ageing and in need of replacement. budgets. Moreover, digital technologies tend to have In the past, the ABC managed such a lifespan of three-to-five years, instead of cost pressures through the achievement eight years or more for the earlier analog of operational efficiencies, reduction in technology. Therefore, a substantial part of activities and by squeezing non-salary the initial equipment purchased for digital budgets. The current Corporate Plan television will need replacement over the includes a commitment to ‘maximise the next few years. relative efficiency of ABC resource and asset utilisation to effectively support Charter- Overall, the ABC’s available capital budget based services’ (strategic priority 14). is insufficient to meet the rate of capital But there is a limit to available operational depreciation anticipated over the next efficiencies from the existing spread decade. Intensive work is underway to of activities. complete a 10-year Integrated Capital Strategy with options to manage the ABC’s The ongoing transition of the ABC infrastructure at a sustainable level. from the analog to the digital technology environment is expected to generate Against this background, the Government’s further pressures on the capital budget Funding Adequacy and Efficiency Review of over the next five-to-ten years. the ABC will assume particular importance.