Introduction A U S T R A L I A N B R O A D C A S T I N G A U T H O R I TY annual report Sydney 1996 1 Annual Report 1995-96 © Commonwealth of Australia, 1996 ISSN 1320-2863 Design by Media and Public Relations Australian Broadcasting Authority Printed in Australia For inquiries about this report, contact: Publications Officer Australian Broadcasting Authority at address below For inquiries about information to be made available to Members of Parliament and Senators on request, contact: Director Corporate Services Branch Australian Broadcasting Authority at address below For inquiries relating to Freedom of Information, contact: FOI Officer Australian Broadcasting Authority Level 15, 201 Sussex Street Sydney NSW 2000 Ph. (02) 9334 7700 Fax: (02) 9334 7799 Postal address: PO Box Q500 QVB Post Office NSW 1230 2 Introduction 3 Annual Report 1995-96 4 Introduction Table of contents Letter of transmission 3 Introduction to the report 7 The year in review 8 Corporate overview 14 Performance reporting Objective 1 21 Objective 2 31 Objective 3 37 Objective 4 49 Objective 5 55 Objective 6 69 Objective 7 73 Appendices 1 Additional matters 78 2 Investigations: completed in 1995-96: no breach findings 88 3 Investigations: breaches found 98 4 Freedom of information 116 5 Compliance index 131 6 Financial statements 132 Index 145 5 Annual Report 1995-96 6 Introduction Introduction to the report 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 1995-96 The year in review The year provided a number of firsts for the Authority while it presented opportunities for broadcasters to provide a range of diverse broadcasting services. The year has been extremely full and productive in a climate of change. As well as providing opportunity for greater diversity of radio and television services, the Authority has provided the regulatory certainty which has contributed to the commercial health of the sector, with both the commercial radio and television broadcasters posting increased profits. Planning In the reporting year the Authority made considerable progress in its planning process, releasing nine final licence area plans for areas in its top priority group. The licence area plans were released as part of the Authority’s Australia wide planning for new television and radio services. The Authority also released planning proposals, comprising discussion papers and draft licence area plans, for a further six planning zones in 1995-96. The Authority released its Technical Planning Guidelines in August. Until 1992, the Government was responsible for detailed planning of all broadcasting technical facilities. Now the licencees themselves will plan new facilities within general parameter set by the technical specifications in licence area plans and the Technical Planning Guidelines. These guidelines set down the procedures which must be followed and limits which must be observed when planning new or changed transmission facilities. Allocations Now that final licence area plans are being released, it is the Authority’s role to allocate licences for the new services being made available. The Authority developed a price-based system for allocating commercial broadcasting licences, as required by the Act. The first commercial radio broadcasting licence was allocated under this system in May 1996, to serve the Mildura market. Price based allocation of the first commercial television broadcasting services under this system was commenced but not completed during this report, due to litigation. The Authority developed a merit-based system for allocating community broadcasting licences during the year. Expressions of interest were called for five community radio licences, two in Mildura and three in Darwin. The first community licence under this system was allocated after the date of this report. It was allocated to the Association for the Blind Ltd. for a service in the Mildura area. The previous government accepted the Authority’s recommendations to allocate incumbent commercial radio operators a second licence in single service markets. This has led to an extensive roll-out with the Authority issuing 38 new commercial radio licences during the year. As these services commence, they will provide 8 Introduction greater listening choice for listeners in remote and regional areas. At the date of this report, three services were up and running. Commercial interests continued to respond to the opportunities provided by new categories of services. The Authority issued 453 non-satellite pay TV licences. As part of its continuing trial of community television, the Authority made channels available in Bendigo and Hobart. Evidence of demand for this type of service will be more apparent as the Authority moves further into its investigation into possible uses for the so-called ‘sixth channel’ and assesses community and industry demand. The demand for new categories of radio services continued unabated as the Authority issued 440 low power open narrowcasting licences. There is continued strong interest in community broadcasting, as the Authority issued 398 open narrowcasting licences for temporary transmissions by aspirant community broadcasters making a total of 1119 issued since October 1992. These continue to be issued in advance of the planning process and allow community groups the opportunity to develop their broadcasting and management skills. Control The Authority completed two major ownership and control reports, each of which was the result of a wide ranging investigation. The investigations related to possible control of the Ten television network by Canadian company CanWest, and possible control of the Seven television network by News Corporation. No breaches of the control rules were found and the investigations have underpinned Australian control of the commercial television industry by comprehensively exploring the factual and legal issues in each case. The Authority has continued to facilitate changes to the structure of the broadcasting industry, particularly commercial radio broadcasting, by allowing prior approval to temporary breaches of the Broadcasting Services Act. The Authority also continued in its monitoring role, assessing potential breaches of the Act and assessing the suitability of subscription television broadcasting licence applicants. Australian content The Authority continued to promote the role of broadcasting services in developing a sense of Australian identity, character and cultural diversity. A new program standard for Australian content on commercial television came into effect on 1 January 1996. The revised standard was the culmination of extensive consultation with the industry and the general public. The new standard significantly strengthened Australian content and increased its presence on Australian television. The amount of quality first-release children’s Australian drama to be broadcast is to be doubled from 16 to 32 hours annually. It is now a requirement for 100 per cent of the quota, 130 hours annually, for preschool children’s programs to be Australian. There is a new requirement for 10 hours of first run Australian documentaries to be broadcast each year. 9 Annual Report 1995-96 The standard was challenged on the issue of whether New Zealand programs could be counted as Australian programs for the purposes of the standard. Acting on legal advice, the Authority excluded New Zealand programs from the standard (although New Zealand programs are by no means excluded from Australian television screens.) The New Zealand production industry was successful in its Federal Court challenge and as a result, the Authority is required to revoke or vary the standard by 31 December this year and determine a standard which is consistent with the Protocol on Trade in Services. The Authority has lodged an appeal against the Federal Court’s decision. Children’s television The Authority continues to give full effect to the objects of the children’s television standards — that children have access to a variety of quality television programs made specifically for them. The Authority assessed and approved an increased number of programs as meeting the specific requirements for children’s television in the past year. The Authority has also ensured children have a say on media issues through its research program. Research It is part of the Authority’s role to encourage service providers to be responsive to the diverse broadcasting needs, interests and values of the Australian community. The Authority’s attitudinal research program continues to feed into this process, by providing valuable feedback for broadcasters and information for the Authority