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1 I Strongly Support the Concept of a Royal Commission and the Senate

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1 I strongly support the concept of a Royal Commission and the Senate Inquiry into media diversity, but do not propose a suggested terms of reference for the Royal Commission. The Terms of Reference for a Royal Commission are the preserve of the membership of the Senate Inquiry to recommend. But I hope the following content will be more than an incentive to the deliberative process in formulating the Terms of Reference, but are concurrently responsive to the Senate Inquiry invitation for submissions. Furthermore, I sincerely hope the following ideas will be critically examined by such an essential Royal Commission. I congratulate the Senate for establishing this Inquiry. My support for the spirit and intent of this initiative by the Senate has crystallised over the last decade. Australia does not support monopoly power in commerce industry & business, That’s why Australia has The ACCC – The Australian Competition and Consumer Commission. If one may instance an ACCC Queensland case study as it relates to newspapers and this Senate Inquiry. The ACCC comprehensively failed when it granted News Corp the right to acquire APN newspapers in areas like Mackay Rockhampton Gladstone Bundaberg Maryborough Harvey Bay Gympie and The Sunshine Coast. News Corp subsequently further failed all these communities and their citizens by closing down every printed newspaper in these localities. During this time the Commissioners from the ACCC made what I believed to be disappointing claims in the context of the further concentration of Australian media into the hands of News Corp, by saying that citizens in these areas could get news from other internet based news outlets. There was obviously no ACCC consideration of many elderly folk in these areas who are not internet savvy and totally dependent on their local printed paper, which in many instances they had subscribed to for more than 50 years. Another deficiency in this ACCC argument about other internet based outlets is that most of these outlets take a lead from Murdoch or NINE newspapers and that forms the basis of their online content and coverage for Radio stations, TV stations etc. That’s real influence by the major newspapers, irrespective of their circulation figures. It was incredibly disappointing that the ACCC did not acknowledge and recognise this absolute reality. Malcolm McMillan 2 It’s imperative that the Senate Inquiry invite the leadership of the ACCC to appear before it, justify their decision, and in particular ask the ACCC did they take into account, by way of comparative analysis, changes in media ownership across the ditch in New Zealand and the modus operandi of those commercial arrangements over a decade or so. I understand there is a new media company operating in Queensland and maybe in parts of other states. I know this new company has operations in Cairns and Longreach and has a model whereby subscriptions are free, overheads are low, and adequate revenue comes from paid advertising. No doubt the leadership of this company could share contemporary cutting edge information intelligence with the Senate Inquiry. This Senate Inquiry might also ask the ACCC about any investigations they have made about the sharing at reasonable cost print and distribution services, as well as looking at monopoly printing services for any media company, (admittedly smaller) dealing with either NINE or News Corp. News Corp, I understand, owns 70% of newspapers in Australia. A Royal Commission and the Senate Inquiry should also examine, analyse, and recommend if there should be an appeals facility for citizens against newspapers if they as citizens feel aggrieved, disadvantaged or insulted. That is a facility to be a replacement for The Australian Press Council - which in the minds of most fair-minded citizens is perceived as a ‘toothless tiger’ and virtually regarded as so by Australia’s two main newspaper groups NINE and News Corp. If defamed by media majors, a defamation action is an option to citizens, but it is horrendously expensive for John or Jan Citizen, whereas corporate entities like News Corp and NINE have very deep pockets as well as defo insurance. It’s indeed more than timely that a Royal Commission and this preceding Senate Inquiry be executed. Media companies, large and small should welcome the innovation of this Senate Inquiry. The Senate Inquiry will be a strategic initiative that in all probability, will produce outcomes that companies like News Corp could not shine a light on themselves individually because of vested interests. A free press in Australia must represent the principles of independence impartiality and most importantly integrity. A newspaper publisher is entitled to vigorously express their views in their editorials. But any publisher must treat the news pages, [separate from the editorial] of their newspapers very differently. Those news pages must represent independence impartiality and most importantly integrity. Malcolm McMillan 3 News Corp, for just over 10 years now, have regularly deviated from the essential principles of independence impartiality and most importantly integrity on their news pages here in Australia. News Corp does this because there is no facility in Australia to ‘bring them to heel’ over such an approach and attitude that regretfully and unfortunately bullies and demonises citizens/entities who/which have a view that is not 100% in sync with the News Corp paradigm. A classic case study here is Climate Change. It’s dreadful stuff the approach and attitude by News Corp, a foreign owned company. Australia doesn’t deserve this. Australia deserve better than this. Only a Royal Commission and this preceding Senate Inquiry will have the independence to run a micrometer screw gauge over all of this stuff and deliver an outcome of recommendations that will be in the national interest. Is there any existing overarching instrument of authority, to protect the public interest of citizens with such newspapers in Australia?. Sadly in this country, the answer is: “No”. News Corp and its previous corporate incarnations used to be an Australian owned company until 1985 In 1984 the principal owner of News Corporation Keith Rupert Murdoch became a Companion of the Order of Australia (AC) within the auspices of The Order of Australia. That’s Australia’s highest civilian honour. The citation for the Rupert Murdoch AC said: “For service to the media. Particularly the newspaper publishing industry” In 1985, the following year, Rupert Murdoch ditched his Australian citizenship and immediately became an American citizen. From 1985 to now News Corp in Australia has been foreign owned, and very seldom publicly referred to in Australia as foreign owned, but it is. No Australian federal parliament since 1985 has addressed this media foreign ownership issue of News Corp, by way of legislation. Rupert Murdoch had to become an American citizen in 1985 to buy American TV stations. A Royal Commission and this Senate Inquiry here in Australia should most definitely address the issue as to whether a foreign citizen or a foreign company is a ‘fit and proper’ person/entity to own Australian newspapers and a pay TV stations like FOXTEL which houses Sky News, a 100% foreign owned broadcaster. Malcolm McMillan 4 In a practical sense, I was deeply involved in a ‘fit and proper’ case at a then Australian Broadcasting Tribunal (ABT) hearing for the reissuing of commercial TV licenses in Brisbane way back in 1986. The ‘fit and proper’ provisions for TV licences were removed from federal legislation applying to TV licenses in the early ‘90’s by the Hawke Government, after Mr Kerry Packer AC regained ownership of the NINE network from Alan Bond. A 2004 Courier Mail story by Craig Johnstone gives a précis and concise synopsis of those 1986 ‘fit and proper’ circumstances impacting on Mr Bond. It’s attached. Media proprietors like the late Mr Packer and the living Mr Murdoch have absolute private access to political leaders, and have been and still are, incredibly influential individuals. On 4 October 1952 Rupert Murdoch’s father, Sir Keith Arthur Murdoch died and young Rupert, aged just 21 yrs inherited the then Adelaide News newspaper. Sir Keith’s knighthood was awarded on 3 June 1933 and the citation said: “Commonwealth public service” Rupert Murdoch came home from Oxford University to take charge of the Adelaide News. Whilst at Oxford, Rupert had a bust of Supreme Soviet Leader Vladimir Lenin on his study desk, much to the dismay of his father Sir Keith and his mother Lady Elisabeth Murdoch who became Dame Elisabeth on New Year’s Day in 1963 with the citation saying: “Social Welfare Services”. Rupert Murdoch not only inherited The Adelaide News from his father but also inherited some of his DAD’s traits in the relationship between media ownership and politicians. In 1936 Sir Keith Murdoch was reported as having some regrets about his support for the strong- willed Prime Minister Joseph Lyons with this famous quote: "I put him there and I'll put him out". It is prudent to note and acknowledge here that Rupert Murdoch was an enterprising businessman in the way he subsequently expanded his global media empire from that solitary Adelaide base. Fast forward to the 1972 Australian Federal election and a subsequent but related interview about the 1972 federal election on the ABC Radio program PM on Thursday 7 October 1999. The now deceased journalist Mark Colvin was interviewing John Menadue on the occasion of the release of Menadue’s memoir: “Things you learn along the way". At the time of the 1972 Australian federal election, John Menadue was the CEO of the then called News Limited in Australia owned by Rupert Murdoch. In that 1999 Mark Colvin interview, Menadue when referring to Rupert Murdoch and the 1972 federal election, said: “He was involved in enormous detail, writing stories, writing editorials, providing free advertising, writing draft speeches for Whitlam.
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