part of everyday life
8:30am 1:30pm
6:10am
6:30pm
8pm
Australian Broadcasting Corporation ANNUAL REPORT 2006
11:15pm Highlights of 2005–06
Total number of hours broadcast: Radio—8 760 hours on each network and station Television—10 841 hours, including state-specific content ABC2—6 458 hours
2.3 million pages of content on ABC Online
ABC services reached an estimated 73% of Australians every week via Television, Radio and Online
ABC Radio had a weekly 5-city metropolitan reach of 3 704 000 or 33% ABC Television had a weekly 5-city metropolitan reach of 8.5 million or 61.5% and weekly regional reach of 4.1 million or 65.3%
ABC Online had a monthly reach of 17.1% of Australia’s active Internet population
90% of Australians continue to believe the ABC provides a valuable service to the community. 79% of Australians believe the ABC does a good job covering country/regional issues. 70% believe the ABC is efficient and well managed. 1 ABC Television launched new Australian programs, including The Adventures of Bottletop Bill and his Best Friend Corky, Answered by Fire, Battle of the Brains, The Chaser’s War on Everything, Da Kath and Kim Code, Frank Hurley: The Man Who Made History, Peking to Paris, Real Life Water Rats and We Can Be Heroes
Radio Australia programming available through 160 local rebroadcasters in 40 countries in Asia and the Pacific, satellite services, shortwave broadcasts and nine 24-hour FM relays
ABC Asia Pacific television available in 41 countries, retransmitted by 300 pay television operators, in more than 200 000 hotel rooms and available in 10.2 million homes
The ABC produced 4 563 hours of Australian television content, including 2 479 hours of news and current affairs
ABC’s digital television services reach 96.19% of Australia’s population from 177 transmitter locations
41 ABC Shops and 90 ABC Centres throughout Australia and online generated $11.6 m net profit which was returned to programming
The ABC had total revenues of $961m from ordinary activities with $1 044m in total assets 2
Each weekday Breakfast programs on 60 ABC Local Radio stations inform and entertain Australians, providing local news and community information (including Rural Reports in regional areas), extended news bulletins and the nation-wide current affairs program AM.
Throughout the day and evening, the ABC continues to provide Australians with a wide range of programs that give comprehensive coverage and background of local and world events.
Australia Wide (Weekdays on ABC2, plus ABC Video on Demand) A national regional news program which focuses on different aspects of life in regional and rural Australia, highlighting the diversity of Australian life beyond city limits.
Lateline (10.30pm Weeknights ABC Television. Repeated ABC2) This unique news analysis program provides up-to- the-minute coverage of national and international news, giving a range of perspectives from newsmakers and informed commentators. Monday-to-Thursday presenter Tony Jones received a “Best Broadcast Interviewing” Walkley Award for his Lateline interviews. Friday presenter Maxine McKew is another of Australia’s most awarded journalists.
ABC News Online (abc.net.au/news) Provides a continuously-updated 6:10am coverage of world and local news drawing on reports from the ABC’s starting work network of journalists in Australia listening to Breakfast, ABC Local Radio and overseas. 3
part of everyday life
“I love the fact that I can be almost anywhere in Australia and I can pick up some form of the ABC.” Murray C, Kununurra, WA
“We’re 165ks north-east of Kalgoorlie. We’ve always got the ABC on. Enjoy listening to it. Keep up with all the local news.” Tanya B, Yalgoo, WA 4
The National Broadcaster
Darwin
Katherine
Kununurra
Broome
Karratha
Alice Springs
Geraldton
Kalgoorlie
Perth Wagin Esperance Pt Lincoln Metropolitan Services Bunbury Television Production Centres Albany Metropolitan Radio New Media and Digital Services Production Centres
Regional Services Regional Radio Studios Television Production Centres Radio Australia Transmitters
• ABC national Radio networks—Radio National, triple j, ABC Classic FM and ABC NewsRadio on the Parliamentary and News Network—are available throughout Australia • ABC Regional Radio Studios collect content for use on ABC Radio and ABC Online • ABC Shops and ABC Centres are found at 131 locations throughout Australia • Local frequency information for ABC services is available in Appendixes 23 (Television) and 24 (Radio) 5
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, dig jazz and dig country. Television ABC Television is a national service with state and territory news Cairns breakouts. It is available nationally in analog and digitally on free-to-air digital and subscription Townsville television platforms. Mt Isa The ABC2 digital television service is Mackay available free-to-air and on subscription platforms. Longreach Rockhampton Online Gladstone The ABC Online website contains Bundaberg 2.3 million pages of content across 12 subject gateways, including Maroochydore content designed for broadband Toowoomba Brisbane delivery. ABC services are also Gold Coast available via WAP, SMS, 3G and i-mode platforms. Lismore
Tamworth Coffs Harbour Shops Pt Augusta Broken Hill Dubbo ABC-related products are available Port Macquarie Muswellbrook from 41 ABC Shops and 90 ABC Pt Pirie Newcastle Orange Centres throughout Australia, Renmark Erina Mildura Sydney as well as the ABC Shop Online Adelaide Wagga Wagga Wollongong and an order-based Customer Shepparton Nowra Delivery Service. Horsham Canberra Bendigo Wodonga Mt Gambier Ballarat Bega International Warrnambool Sale Broadcasting Melbourne Morwell International radio service Radio Australia, is available by short wave, satellite and rebroadcast Burnie Launceston arrangements to Asia and the Pacific.
Hobart International television and online service, ABC Asia Pacific, is available via satellite and rebroadcast arrangements to Asia and the Pacific. Office of Donald McDonald AC Chairman October 3, 2006 ABC Ultimo Centre 700 Harris Street Ultimo NSW 2007 Australia
GPO Box 9994 Sydney NSW 2001
Tel. +61 2 8333 5363 Senator 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 June 30, 2006.
The report is prepared in accordance with the requirements of the Commonwealth Authorities and Companies Act 1997 and the Australian Broadcasting Corporation Act 1983. Letter ofTransmittal ne 236 239 183 240 141 139 126 99 94 68 73 ABC Charter andDutiesof the Board 89 Glossary 84 Index 112 105 Appendices 81 Financial Statements 49 Independent AuditReport 61 65 Outcomes andOutputs 44 53 Performance Against theCorporate Plan2004–07 64 Summary Reports 28 Corporate Strategy andCommunications 46 Operations 25 Enterprises International Broadcasting News andCurrent Affairs 24 New MediaandDigital Services 15 Television Radio ABC Divisions 13 ABC Organisational Chart 19 Perth Accommodation Project Financial Summary 10 Corporate Governance ABC People The ABCintheCommunity ABC Services 10 ABC Audiences Overview The Year Ahead ABC AdvisoryCouncil Statement byABCBoard ofDirectors Board ofDirectors Corporate PlanSummary Significant Events inthePast Year ABC Vision,Mission Statement andValues Corporate Report 6 7
ANNUAL REPORT 2005–06 8
part of everyday life
8:30am cooking up breakfast to Rage 9
Rage is ABC Television’s weekend overnight music show, featuring video clips of popular local and overseas acts. Since it began in 1987, it has repeatedly won Most “The ABC’s given Australians a Popular Australian Music TV Show broader range of entertainment.” in the Australian Music Awards.
Brett T, Balaclava, Victoria Since the 1930s, the ABC has been a major player in the musical life “[triple j is] a great source of Australia. Music and music makers are showcased not only of new music.” on the two music networks, ABC Andrew W, Bronte, NSW Classic FM and triple j, but across all ABC platforms.
Music Deli (8pm Friday and 4pm Sunday on Radio National) For almost 20 years, Music Deli presented by Paul Petran has introduced Australian listeners to world and folk music, focusing on Australian musicians in live performance at concerts and festivals.
dig tv (9pm Monday on ABC2 with repeats) Hosted by James Reyne and Tracee Hutchison, dig tv brings to television the music that listeners enjoy on the online dig music services—blues, soul, country, roots, world and rock.
At the Opera (7.05pm Sunday on ABC Classic FM) At the Opera provides an opportunity for opera buffs and newcomers alike to sample great opera works and performances, including personal selections by former Opera Australia Artistic Director Moffatt Oxenbould. The New York Metropolitan Opera’s Broadcast Season is also presented in this time slot. 10
ABC Vision, Mission and Values
Vision and impartiality, reflecting a balanced Valued for playing an active role in the and broad range of views and interests lives of all Australians. Creative—a commitment to innovation, Mission ideas and support for talented people Uphold the ABC’s Charter through distinctive programs and services that Courageous—encouraging the leadership inform, educate and entertain. and vision to adapt to change with integrity and decisiveness Values Distinctively Australian—reflecting the Supportive—providing opportunities nation’s identity and culture for ABC staff to grow, personally and professionally, during their time with Open to all—reaching out to engage the Corporation audiences, bringing Australians together Accountable—demonstrating high No hidden agendas—aspiring to the standards of governance and value for highest editorial standards of accuracy money to the Australian community.
Significant Events 2005–06
July 2005 ABC Northern Tasmania celebrated A series of cross-media workshops was its 70th birthday. held in Melbourne, Adelaide, Brisbane, Perth and Sydney to explore how the ABC September 2005 can address audiences’ changing patterns Radio Sport covered the Ashes cricket tour of media consumption. in England across a range of ABC platforms.
Local Radio’s Sunday Profile presented by The 41st ABC Shop opened in Tuggerah, Monica Attard broadcast an exclusive radio New South Wales. interview with Douglas Wood, a former Australian civilian hostage in Iraq. October 2005 Launch of Dust Echoes, a children’s animated August 2005 production, bringing to life five Indigenous Celebration of the 10th birthday of ABC Online Australian dreamtime stories, at the Beswick at the ABC Ultimo Centre in Sydney. Community in the Northern Territory.
triple j broadcast the Impossible Music The winners of Video Lives, a digital story Festival, a virtual music festival in which initiative based on audience contributions, listeners voted on their favourite screened on ABC2. performances, drawn from 30 years of triple j broadcasting. Olle MemorialLecture the 10thannual702ABCSydney Comedian andwriter JohnDoyle delivered Institute ofSportinCanberra. Youth IssuesForum youth competition attended the The 38winners ofthe2005 was launched. The newABCVideoonDemand site February 2006 festival, ABC Classic FMlauncheditsyear-long radio Piano countdown. with aspecialbroadcast oftheClassic 100 ABC Classic FMcelebrated its30thbirthday January 2006 ABC archives, wentto air. moments from over 45years from the program celebrating great sporting Late NightLegends December 2005 commenced broadcast onRadioNational. Jensen, theAnglican Archbishop ofSydney, The 2005Boyer Lectures byDrPeter Anh Do,wentto airexclusively onABC2. short filmshosted byactor andfilmmaker Short andCurly on ABC2. was launchedinMelbourneandbroadcast and Digital Services andFilmAustralia, co-production betweenABCNewMedia Pacific Stories November 2005 themed magazine. ABC Magazineslaunched celebrated its40thyear onair. ABC RadioNational’s Radio, ABCTelevision andonline. the 250thanniversary ofthebirthMozart. Mad AboutMozart , a13-weekseriesofAustralian , thefirst cross-platform , anoriginalABC2 at theAustralian Encounter , broadcast onLocal Life etc , commemorating Heywire Heywire program , alifestyle Andrew regional the Sydney Opera House. The Offsiders The NewsandCurrent Affairs sportsprogram, funded self-helpsubsidyscheme. for transmission through theFederally- Elliot for the inaugural ABCFictionAward, William The Corporation announced thewinnerof Melbourne over the11daysofcompetition. of CommonwealthGamescoverage from ABC RadioSportprovided over 120hours video stories. enabling audiences to submitimagesand system intheBrisbaneNews Onlineunit, a successful trialofauserimage-upload New MediaandDigital Services conducted Ultimo Centre inSydney. ABC2 celebrated itsfirst birthdayattheABC divisions oftheCorporation. at Ultimothatwasattended bystaff from all ABC’s first Cross MediaProduction Conference New MediaandDigital Services hosted the Paralympics inTurin. ABC Television covered the2006Winter March 2006 heard Forty smallcommunities around Australia devastated byCyclone Larry. Queensland to helprebuild thecommunity broadcasting outpost inInnisfail in Local Radioestablished atemporary of cross-platform content. Animation Initiative, nurturingtheproduction a new project called theSAFC ABCDigital Corporation established analliance to deliver The ABCandtheSouthAustralian Film April 2006 Classic 100Opera triple j , beganonABCTelevision. The PiloFamilyCircus for thefirst timeafter applying concert washeldat . 11
ANNUAL REPORT 2005–06 12
Significant Events 2005–06 continued
Radio National’s Singers of Renown program, June 2006 presented by John Cargher, celebrated its Launch of music program dig tv on ABC2 40th anniversary. in collaboration with dig digital radio.
The South Australian town of Port Pirie Launch of Chiko Accidental Alien, an online hosted triple j’s One Night Stand concert, game created under the ABC/AFC Broadband which was broadcast live around Australia Production Initiative. on the network and funded by ABC Radio’s Regional Production Fund. As part of the 60th Anniversary of Parliamentary Broadcasts, ABC NewsRadio May 2006 commenced podcasting the Federal Senate The Federal Budget renewed the ABC’s and House of Representatives question time. funding for the 2006–09 triennium and provided an additional $88.2 million over ABC Classic FM commenced vodcasting three years for capital, the creation of quality pre-concert introductory talks to concerts Australian television content, and enhanced broadcast in the program In Performance. regional and local programming.
Children’s television program Play School celebrated its 40th birthday by commencing a series of free live concerts in remote Australia. The program was inducted into the Logie Hall of Fame.
ABC2 began broadcasting live netball games in association with ABC Television Sport and Netball Australia.
ABC Radio’s second Australian Snapshots project was launched through the ABC Radio Regional Production Fund with the theme Representing Creativity.
Australian Story celebrated 10 years on Television, with a function at the ABC Ultimo Centre in Sydney attended by many of the people featured on the program.
A forum on political language, sponsored by the ABC’s Standing Committee on Spoken English (SCOSE), was held at the Sydney Opera House as part of the Sydney Writers’ Festival. ratings data. annual ABCAppreciation Surveys andABCAwareness andUsageSurveys, inconjunction with identified insupportofthesefour overall objectives. Overall effectiveness data isdrawn from Specific legislative responsibilities are addressed through thestrategic prioritiesandactions Act 1983 four Corporate Objectives derived explicitly from the transformation oftheAustralian mediaenvironment. TheCorporate Planisframed around The ABCBoard’s Corporate Plan2004–07positionstheCorporation for theinevitable Corporate PlanSummary h utaincmuiy8 27 078 80 81 78 • Take account ofservices provided bythecommercial andcommunity broadcasting • Beinnovative andcomprehensive (s.6(1)(a)) 82 • Provide programs ofwideappealandspecialised interests (s.6(2)(a)(iii)) 82 Meeting itslegislative obligations to… 83 services 81 andemerging digital media(ss.6(1)(a) and6(2)(a)(iii)). The ABCwill… 84 and innovative programs andservices Objective 2.Engageaudiences withrelevant 84 Detailed reporting against Objective 1can befound onpages112and116. the Australian community reflects thecultural diversity of % ofpeople whobelieve theABC to Australia’s nationalidentity distinctively Australian andcontributing % ofpeople whoregard theABCto be will bemeasured by… Its overall effectiveness • Take account ofthemulticultural character oftheAustralian community (s.6(2)(a)(iv)). • Transmit overseas programs ofnews,current affairs, entertainment andcultural • Provide content genres: Meeting itslegislative obligationsto… communities through anABCthatisdistinctively Australian (s.6(1)(a)(i))oftheABCAct. The ABCwill… Objective 1.Contributetoasenseofnationalidentity sectors (s.6(2)(a)(i)). enrichment (s.6(1)(b)) • Reflect cultural diversity (s.6(1)(a)(i)) • Promotion ofthemusical, dramatic andotherperforming arts(s.6(1)(c)) • Programs ofaneducational nature (s.6(1)(a)(i)) • Newsandinformation (ss.6(1)(b) and8(1)(c)) , includingtheCharter (s.6). Create more opportunitiesfor audiences to connect withthediversity oftheir Reach asmanypeople aspossible through theABC’s established Charter 050 040 030 020 2001–02 2002–03 2003–04 2004–05 2005–06 Australian BroadcastingCorporation 13
ANNUAL REPORT 2005–06 14
Corporate Plan Summary continued
Its overall effectiveness will be measured by… 2005–06 2004–05 2003–04 2002–03 2001–02 Overall (Combined) Audience Reach (%) 73 75 75 NA* NA* % of people who perceive the ABC to be innovative 73 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 113 and 120.
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 Communications and Media 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… 2005–06 2004–05 2003–04 2002–03 2001–02 % of people who believe Television 80 80 77 79 78 the ABC provides quality Radio 63 63 61 60 59 programming Online 89 89 87 89 90 (ABC Online users only) % of people who believe the ABC is balanced and even-handed when reporting news and current affairs 83 82 80 81 79 Detailed reporting against Objective 3 can be found on pages 114 and 122.
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 (s.8(1)(a)).
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… 2005–06 2004–05 2003–04 2002–03 2001–02 % of people who value the ABC and its services to the community 90 90 89 89 91 % of people who believe the ABC is efficient and well managed 70 70 64 68 61 Detailed reporting against Objective 4 can be found on pages 115 and 124. Keith Windschuttle Steven Skala Ron Brunton Donald McDonaldAC ABC Board ofDirectors Peter Hurley Janet Albrechtsen John GallagherQC Murray Green the peopleofAustralia training isavailable through provision for new Board members andonline Thorough inductionprocesses are inplace personal interest inanyitems on theagenda. are asked ifthey wish to declare amaterial updated regularly. At eachmeeting,Directors of interests upontheirappointment.Thisis They are required to provide adeclaration sets outtheirresponsibilities andrights. Protocol, adopted inSeptember 2004,which Directors are required to observe Board Authorities andCompaniesAct1997 and goodfaith, asset outinthe required to meetobjective standards ofcare obligations andindividualDirectors are In addition,theBoard issubjectto further significant deviation from thoseplans. the Minister ofanymatters likely to cause corporate plansfor theABCandto notify ABC Actalsorequires theBoard to prepare when requested to dosobytheMinister. The relevant to thefunctionsof Corporation and to consider matters ofGovernment policy with theABCActandotherrelevant legislation; programming matters to develop recognised standardsofobjectivejournalism accurate andimpartialaccordingtothe presentation ofnewsandinformation is required to ensure thatthegatheringand the ABC’s efficiently functions oftheCorporation are performed of theActrequires theBoard to ensure the Corporation Act1983 derive from the The role andresponsibilities oftheABCBoard independence and withthe codes ofpracticerelatingto Australian Broadcasting (“ABC Act”).Section8 ; ensure compliance , while maintaining maximum benefitto and integrity Commonwealth . . Itis ; 15
ANNUAL REPORT 2005–06 16
ABC Board of Directors continued
of the Directors’ manual and Corporate He holds a Bachelor of Commerce degree Governance in Australia modules. Other and an Hon. Doctor of Letters from the professional development for Directors University of New South Wales. is provided on a case-by-case basis. John Gallagher QC Changes in relation to the corporate Appointed a Director for a five-year term governance arrangements relating to ABC from 9 December 1999. Re-appointed for Board Directors are set out in the Corporate a three-year term from 24 February 2005. Governance Section (page 53). Appointed Deputy Chairman until his term expires on 23 February 2008.
Donald McDonald AC John Gallagher is a Barrister and Queen’s Appointed Chairman of the ABC in July 1996 Counsel whose practice involves civil and for a five-year term. Re-appointed Chairman criminal law. He is the author of the 1990 on 24 July 2001 for a second five-year term, Australian Supplement of Licensing Laws and on 14 June 2006 for a further five in Halsbury’s Laws of England, and several months until 31 December 2006. articles on town planning practice, compensation and licensing matters. Donald McDonald has been involved in the administration of arts enterprises for over Mr Gallagher has delivered papers at 40 years, including Sydney Theatre Company, International Bar Association conferences Musica Viva Australia and The Australian in America, Europe and Asia. His range Opera where he was chief executive for ten of legal experience includes broadcasting, years until his appointment to the ABC in 1996. environmental, heritage, licensing, valuation and general commercial cases. He is Chairman of The Really Useful Company Asia Pacific Pty Ltd; he is also Chairman of Mr Gallagher was formerly a Director of The Australiana Fund and a member of the Mackay Television Limited (1971–87) as well Glebe Administration Board. as a Director of companies operating hotels in Queensland and New South Wales from Mr McDonald was Chairman of the 1960 to 1996. Constitutional Centenary Foundation for three years to December 2000 and was Ron Brunton a member of the Board of the Sydney Appointed a Director for a five-year term Organising Committee for the Olympic Games from 1 May 2003. and Chairman of its Cultural Commission. Ron Brunton is currently the Director of In 2001, he edited The Boyer Collection, Encompass Research Pty Ltd, an organisation a selected anthology of the Boyer Lectures engaged in anthropological and socio-economic since their inception in 1959. research, concentrating on native title, Indigenous heritage, immigration and Mr McDonald was appointed a Companion environmental issues. of the Order of Australia in 2006, having been made an Officer of the Order in 1991. the University ofSydney LawSchool. the University ofSydney andhas taught at Ms Albrechtsen hasadoctorate inlawfrom and securitieslaw. the areas ofbankingandfinance, corporate Freehill, Hollingdale andPage, practising in She waspreviously employed withlawfirm and 10 October 2005. on theexpiry ofherfive-year term on Leith Boully retired from theBoard Leith Boully Retiring Directors Morning Herald The AustralianFinancialReview newspaper. Shehaspreviously worked for newspaper columnist with Janet Albrechtsen, aformer solicitor, isa from 24February2005. Appointed aDirectorforfive-yearterm Janet Albrechtsen and theUniversity ofPapua NewGuinea. anthropology at various universities inAustralia of anthropological issues andhaslectured in research papers andbooksonawiderange In addition,DrBrunton haspublished between 1995and 2001. Fellow attheInstitute ofPublicAffairs from 1997until2003,andwasaSenior a fortnightly columnist for A widely-published writer, DrBrunton was sector, effective from 31March 2006. the ABCto take upapositionintheprivate Director from 29May2002,resigned from Russell Balding,whohadserved asManaging Russell Balding Quadrant magazine. , The Age , The SundayAge The CourierMail The Australian , The Sydney et olyRselBligRamonaKoval Russell Balding Leith Boully two-year term on15June2006. from theBoard attheexpiry ofhersecond Staff-Elected Director RamonaKoval retired Ramona Koval commercial practice. Solicitors andheadofitscorporate and he wasapartnerofArnoldBloch Leibler, Company Limited. Between 1985and2004, Group ofCompaniesandTheKingIsland and hasbeenadirector ofthe ChannelTen the Australian Centre for Contemporary Art, Mr Skalaistheimmediate past Chairmanof Cricket Australia. he isaMemberoftheGrievance Tribunal of of ModernArt,NewYork (MoMA).Inaddition, of theInternational CounciloftheMuseum Cowen Cancer Foundation, and asaMember Research, asaTrustee oftheSirZelman Walter andElizaHallInstitute ofMedical Mr Skalaserves astheVice President ofthe Independent Studies. the Australian Ballet andtheCentre for Ltd, WilsonHTMInvestment Group Limited, Limited andisadirector ofMaxReCapital Hexima Limited andLive Events Wireless Pty is alsoChairmanofFilmAustralia Limited, and NewZealandofDeutscheBankAG. He Steven SkalaisVice Chairman,Australia from 6October2005. Appointed aDirectorforfive-yearterm Steven Skala 17
ANNUAL REPORT 2005–06 18
ABC Board of Directors continued
Peter Hurley Murray Green Appointed a Director for a five-year term Appointed as Acting Managing Director from from 14 June 2006. 25 March 2006, when Russell Balding resigned from the position, until 5 July 2006, when Peter Hurley is a businessman in the hotels Mark Scott takes up his duties as the new industry. He is currently National Senior Managing Director. Vice-President and State President of the Australian Hotels Association, and Chairman Prior to his appointment to the role of Acting of Hospitality Group Training, the largest Managing Director, Murray Green was the group apprenticeship and training scheme ABC’s Director of Corporate Strategy and in South Australia. Mr Hurley has previously Communications, a role to which he will served as a Board Member (1997–2003) and return, and Complaints Review Executive, Chair of the Audit Committee of the South the Corporation’s internal ombudsman Australian Tourism Commission, and as a dealing with the review of complaints about Board Member of the Australian Tourist accuracy and bias. He also was Chair of the Commission (2000–04). Election Coverage Review Committee.
Keith Windschuttle Before his appointment to the position Appointed a Director for a five-year term of Director in December 2005, Mr Green from 14 June 2006. was State Director Victoria.
Keith Windschuttle is an historian, author Mr Green is a graduate of the Australian and publisher and a frequent contributor Film and Television School, has an honours to major Australian and international degree in Asian and Pacific History, and newspapers, international journals and is a lawyer. academic publications. He has had a number of books published and has worked as a journalist with The Daily Telegraph and Broadcasting and Television magazine. Mr Windschuttle has 20 years experience Incoming Managing Director lecturing in Australian history, journalism and social policy at a number of Australian Mark Scott universities. He has also been a visiting or On 22 May 2006, Mark Scott was appointed guest lecturer at a number of universities to the position of Managing Director for a in the United States. five-year term commencing on 5 July 2006.
Previously, Mr Scott was Editorial Director at John Fairfax Publications.
Note: Mr Scott’s signature appears on the Financial Statements in this report, as they were audited after the commencement of his term.
Mark Scott Corporation’s future. advocacy to theParliament regarding the and thebasisfor a concerted program of priority for theBoard over the past year for thenext trienniumhasbeenaprincipal Securing appropriate fundingfor theABC decade, anditsdestiny inthedigital age. on theCorporation’s progress over thenext Both factors willhave aprofound influence Mark Scott, whoseterm extends to 2011. appointment ofanew ManagingDirector, the coming triennium2006–09,andthe the success ofthefundingsubmission for to therare concurrence oftwokey events: particularly decisive for theCorporation due For thesereasons, the2005–06year was and theselection ofitsManaging Director. future oftheABCasextent ofitsfunding, Few matters have suchsignificance for the of every sectionofthecommunity. not runfor profit, butpurely intheinterests We are your trustees. Itisaservice thatis This service, theABC,now belongs toyou. Board Directors’ Statement digital television anddigital radio. It is to ensure theABC’s presence ontheInternet, Board hassetprioritiesfor theCorporation the greatest challenges ofthe digital age,the Over thepast decade, inresponse to someof and value for publicmoney, byanymeasure. clearly demonstrate itsefficiency,effectiveness public enterprise, theABCmust beable to expressed uponthebalance sheet.Yet asa culture isunique,andcan never befully The ABC’s value withinAustralian life and Triennial Funding 2006–09 Creating theSetting: —Introductory address, ABCRadio,1932 Election Policy, committed to conduct thisreview inits2004 Accepting theBoard’s request, theGovernment independently oftheABC. and importantly, anargument made the ABCwithaneweconomic argument, by augmentingthecultural argument for funding bidmightbesubstantially improved belief thattheprospects for theCorporation’s review ofABCfunding.ItwastheBoard’s request to Government for anindependent In late 2003,theBoard madeaformal Parliament for thesepurposes. without additionalfundingfrom the services suchasABCOnlineandABC2 discipline thatitintroduced majordigital testimony to theCorporation’s capacity and to sustain andenhance regional andlocal and documentaries, an extra $13.2million creation ofqualityAustralian television drama with theindependentproduction sector inthe consisted ofanextra $30millionto invest provided for thenext three years. This was renewed, andanadditional$88.2million The ABC’s Triennial Funding for 2006–09 more thantwentyyears. the best budgetoutcome for theABC in 2006, the2006–07Federal budgetprovided That possibility hasnowbeenavoided. InMay programming andservices”. about theextent andqualityofABC to confront “arange offundamental questions coming trienniumtheABCwouldbeforced adequate fundingwassecured for the Annual Reportexplicitly noted, unless As theDirectors’ statement inlast year’s commencing workinlate 2005. and appointed KPMGto conduct thereview, 21st CenturyBroadcasting , 19
ANNUAL REPORT 2005–06 20
Board Directors’ Statement continued
programming, and an extra $45 million in vitality has been brought to the contest of capital to ensure the ABC has both equipment ideas between Board and management, and infrastructure appropriate to its needs. and greater clarity given to the Board’s expectations of management. More rigorous Some of the most compelling arguments review of proposals put to the Board and for increased funding arose from performance against objectives of the recommendations of the KPMG report on ABC’s Corporate Plan has further improved ABC funding, the Funding Adequacy and managerial accountability, and in turn, the Efficiency Review. Corporation’s accountability to the Parliament.
Perhaps more importantly, the independent As it prepares for the new Triennium, the perspective provided by KPMG elevated Corporation has made consistent progress debate about adequate resourcing of the on goals set out by the 2004–07 Corporate ABC beyond the reflexive arguments by Plan, building and consolidating on reforms which it had long been dominated. and innovations of recent years.
Consolidating Reform Detailed reporting of achievements against Throughout the Corporation the Corporate Plan is provided on pages The KPMG review proved to be a stimulus to 13 and 112. critical thinking within the Corporation, with enduring benefits for managerial culture. Managing Director Key decision makers were presented with Russell Balding resigned from the position a further opportunity to test the relevance of Managing Director of the Corporation in of current business practices and working March 2006, having served the ABC for a methods, to clearly define and articulate decade, first as Director of Finance and managerial activity in relation to Charter goals. Business Services, and for the past four years as Managing Director. The Corporation is engaged in a continuing process of reform to ensure the maximum The Board records its appreciation of Mr benefit from ABC funding is delivered to the Balding’s special contribution to the ABC. Australian people, through quality content. The past four years constitute an era of real achievement for the Corporation. Just as the Board directs the Corporation to keep pace with changing public expectations Russell Balding successfully directed and needs, its own relationship with Executive management to meet the many management continually evolves to reflect significant challenges set by the Board changes in contemporary expectations of during his term, including reform to the corporate governance and standards of Corporation’s complaints handling processes, public accountability. and the establishment of the digital-only television channel ABC2 on a sustainable As the trustee of the public interest, basis. His command of the Board’s brief the Board continued to promote a better with regard to the KPMG Funding Adequacy understanding of the Board’s separate and Efficiency Review contributed significantly and distinct role across the year. A new to the outcome of the Review. Director. Hetakes updutyon5July 2006. Publications, where he wasEditorial and comes to theABCfrom JohnFairfax with adistinguished academic record Mr Scott isanexceptional mediaprofessional Managing Director oftheABC. candidates, MarkScott wasappointed that produced anoutstanding fieldof after anationalandinternational search Eight weeks after MrBalding’s departure, the Corporation. for managementandgovernance throughout the Board, hecreated beneficialprecedents more rigourofbusiness cases brought before By imposinggreater disciplineanddemanding has afullcomplement ofDirectors. Windschuttle inJune2006, theBoard now in October 2005andPeter Hurley andKeith Having welcomed newDirectors Steven Skala Chairman onthe6October 2005. John Gallagherwasappointed Deputy abolished from 15June2006. position ofStaff-Elected Director was Corporation AmendmentAct2006 Parliament ofthe her contribution. Withthepassing bythe the Board wouldlike to thankMsKoval for Ramona Koval expired on14June2006and The second term ofStaff-Elected Director for theABC. valued contribution to corporate planning interests ofrural andregional Australia and Boully, particularly for herknowledge ofthe 2005. TheBoard records itsthanksto Mrs Leith Boully retired from theBoard inOctober Board Directors Australian Broadcasting , the provide financialandaccounting expertise. Committee asaconsultant inMay2006to KPMG, joinedtheBoard’s AuditandRisk basis. JohnBrown, nowretired partnerfrom performance can bereviewed onanannual a newinstrument through whichitsown accountability roles. TheBoard willalsocreate greater focus ontheBoard’s governance and Committees withtheaimofproviding a commenced areview ofitsvarious At thebeginningof2006,Board the endof2006. Editorial Policies from thecontent divisions.Thereview of of test cases andengagedwithpolicyofficers policies, theCommittee considered anumber Policies continued itsreview ofthe The Board Editorial Policies Committee Board Committees has beenre-named theAustralia Network. terms ofthenewcontract ABCAsiaPacific of theservice they have developed. Underthe and dedication oftheteam andthecredibility Government, atribute to theprofessionalism awarded afurtherfive-year contract bythe The ABCwonthecompetitive tender andwas service outto tender. the Government decidedthisyear to put the interest ofastrong commercial rival when So successful infact thatitattracted the including Indiafor thefirst timethisyear. year andnowbeingseenin41countries, success, increasing itsaudience by50%each Television service hasbeenatremendous In itsfirst five years theABCAsiaPacific ABC AsiaPacific Television . To better evaluate application ofthe will becompleted before ABC Editorial 21
ANNUAL REPORT 2005–06 22
Board Directors’ Statement continued
Foundations for the Future Media Diversity The ABC’s ideas and its ambitions will always This year the ABC has again dedicated itself outstrip its resources, and more funding to serving audiences throughout the nation. is not the solution to every problem the In doing so, it continued its important Corporation faces. contribution to media diversity.
Just as audiences demand distinctive, As the Prime Minister noted when opening creative content from the ABC, the Board the ABC’s new East Perth Centre in seeks creativity from management essential September 2005, that unique contribution to meeting so many challenges faced by the is of particular importance to all those Corporation. It has continually directed the Australians living beyond the large Eastern Corporation to respond imaginatively to its urban centres: circumstances and to live within its means. Finding the correct balance of investments I wish ABC Perth and the ABC in Western throughout the Corporation has not been Australia great good fortune. I thank it without its difficulties. Given priorities set by very warmly for its distinctive contribution the Board, the ABC intensified its efforts for to Western Australian life, its distinctive the present, yet always engaged innovatively contribution to interpreting to Australians with the future as well—in a fiscally in Western Australia—the nuances, the responsible manner. differences, the variety of attitudes in this state, as part of its role as a great This strand runs continuously through national broadcaster. the ABC over the last decade. The great progress of the Corporation during this Beyond the capital cities, regional Australia period is a tribute both to its enduring remains central to the ABC’s identity creativity and its institutional resilience. and mission.
This year, the gradual drift of audiences While other media organisations have from traditional media to new digital continued the drift away from regional destinations and new forms of content centres towards greater syndication of continued. It is the prevailing pattern programming from the cities, the ABC of media use throughout the world. Yet is doing the opposite, seeking to use its whatever change is upon us, for the network of 51 regional radio stations as foreseeable future radio and television hubs for digital content creation. services will continue to have an irreplaceable significance in the lives The National Interest Initiatives have allowed of so many Australians. the ABC to generate more programming from regional Australia, reflecting life outside the cities, for use on radio, ABC Online and ABC2. disparate services itprovides to thepublic. of measuringtheeffectiveness of the content from theABC,butalsonewmeans demands notjust newbehaviourand the mass audience. Thisdevelopment Masses ofaudiences are rapidly replacing less relevant. as mass audiences—have alsobecome associated withtraditional media—such the characteristics andmeasurements the shiftfrom olderto newermediaforms, widely thanatanytimeinhistory. Andwith Contemporary audiences are dispersed more constraints ofscheduling. audiences hadbeenlimited dueto the lease oflife to somanyprograms for which discovered how usefulit was—giving anew Australians firstly discovered it,then service thathasgrown asmore andmore Podcasting isbutthelatest example ofa interests withqualityABCservices. to match emerging audience needsand this environment hasseentheABCinnovate the public—thestrategy setbytheBoard for maintained itsrelevance andusefulness to means thepublichaschosen.Itclearly and wherever, whenever, andbywhatever who usemediainsomanydifferent ways, across thecountry, across generations and innovation, to serve audiences right The Corporation soughtto balance tradition unseen—and whichwasclearly valued. otherwise have remained unheard and sector withprogramming whichwould to distinguish itselffrom thecommercial In theseandotherways,theABCcontinued Murray Green Keith Windschuttle Peter Hurley Steven Skala Janet Albrechtsen Ron Brunton John GallagherQC Donald McDonaldAC duties, aslaidoutinSection8oftheABCAct. confidence thatithasfulfilled itsstatutory history oftheABC,Board can assert with At theendofthissignificant year inthe the changingneedsofpeople ofAustralia. its abilityto remain relevant andusefulto era andnewTriennium withconfidence in ABC. TheCorporation moves into thisnew has created anewclimate ofhopefor the The fundingsettlement provided thisyear creative, endlessly innovative. presence inanewAustralia—vibrant, has beento ensure itwillalsobeavital Australia. TheBoard’s consistent strategy The ABCwilllong bepartofaremembered Internet users. month—almost oneinfive Australian 2.2 millionuniqueAustralian users per rapidly thisyear. ABCOnlinenowdraws technologies andABCpodcasts have grown only television channelABC2,mobile phone Audiences for ABCOnline,theABC’s digital- Director Director Director Acting ManagingDirector Director Director Director Chairman 23
ANNUAL REPORT 2005–06 24
ABC Advisory Council
Back row: Geoffrey Cadogan-Cowper (Tasmania), Robyn Lambley (NT), Professor Michael Burgess (SA), Dr Pamela Chick (Queensland). Front row: Joanne Roach (WA), Beverly Smallwood (Victoria), Jane Munro (Convenor) and Joshua Knackstredt (NSW). Absent: Simon Andrews (ACT), Keith Smith (NSW), Alan Wu (Queensland) and Dr Paul Collier (SA).
The ABC Advisory Council is established under The Council met three times during the year the provisions of the ABC Act to provide advice and provided feedback to the ABC Board on to the Board on matters relating to the a wide range of programs and services. Of Corporation’s broadcasting programs. particular note during the year was the amount of interest in online information services, The ABC Board appoints the twelve members news and current affairs, arts programming of the Council for a period of up to four years. and program services for younger audiences. The public are invited to apply to join the Council through promotions on ABC Radio, The Council prepared discussion papers Television and Online and advertisements on Arts Review, a paper reviewing the in the press. This year, Ms Joanne Roach recommendations of the 2002 Arts Report; from Western Australia, Mr Geoffrey Role of Radio; Build to Last—The ABC in Our Cadogan-Cowper from Tasmania and Mr Community; ABC Newscaff Review, a review Joshua Knackstredt from New South Wales of a previous paper, also entitled ABC joined the Council. Newscaff Review; and Sport on the ABC.
In December 2005, the Convenor Deborah These papers have been circulated widely Klika retired after six years on the Council. She in the ABC and will be considered in the was replaced by Dr Jane Munro, who began Corporation’s strategic planning. her term as Convenor from January 2006. The Council’s work plan for the remainder of The Advisory Council and the ABC Board 2006 includes discussion papers on regional continued to build on Council’s role in advising issues, which will look at the ABC in regional the ABC Board on community views. and rural Australia, and young people, which will examine how they do and could engage The ABC Board Advisory Committee chaired with the ABC. The Council is also considering a by Dr Ron Brunton met with the Council after discussion paper on diversity and inclusiveness. each Advisory Council meeting and the Board held their annual meeting with the Advisory The Council worked towards community Council in November 2005. consultations in July 2006 which will focus on youth issues and in particular services provided The Council has continued to make by triple j and its relevance to today’s youth. recommendations to the Board on various aspects of ABC programming and met The Advisory Council’s recommendations with ABC Divisional Directors to discuss and commendations for the year, together key areas of interest, including radio, with responses from ABC management, new media and audience research. appear in Appendix 17 (page 198). The Year Ahead but alsothatcontent isused to optimum that individualplatforms perform strongly underlying imperative is to ensure notonly expire nolater than30June2007.One 2004–07 Corporate Planisscheduled to new three-year Corporate Plan.Thecurrent This workwillalsoinform development ofa of operations over thenext five-to-ten years. will lead theCorporation inastrategic review The ABC’s newManaging Director, MarkScott, to helprejuvenate theindependent sector. boost to itslevel ofAustralian content butalso only to provide theABCwithamuch-needed documentaries. Theventure isintended not producing high-qualityscreen drama and with theindependentproduction sector in over three years, through whichto co-invest production fund,withtotal fundsof$30million An early prioritywillbeto establish a Annual Report. the concerns expressed inlast year’s additional fundingin2006–09,haseased by theGovernment’s decisionto appropriate Adequacy andEfficiencyReview audiences. Theoutcome oftheKPMG improve thequalityofitsoffering to Australian Corporation well-placed to develop and A newfundingtrienniumbeginswiththe , followed Funding for theABCto continue operating theservice. the Department ofForeign Affairs andTrade of thenewfive-year contract awarded through as theAustralia Network.Thisisacondition ABC AsiaPacific, whichwillbecome known satellite television service, hitherto knownas will beto re-launch theABC’s international Another important project early in2006–07 where possible. with theintention ofachieving efficiencies will evaluate eachoftherecommendations team convened by theChiefOperating Officer to furtherimprove performance. Aproject made 35suggestions thathadthepotential operates efficiently andeffectively, butalso The KPMGReview confirmed thattheABC the ABCwillprovide afullreport in2007. Funding AdequacyandEfficiencyReview its property holdings.Arisingfrom theKPMG September 2006,onthescope for rationalising provide theMinister withaninitialreport, by the digital era. Oneearly commitment isto property assets to meetthechallenges of framework for theABC’s technology and which aimsto provide arigorous planning of anIntegrated Capital Strategy project, Corporation hasundertaken thefirst phase over thecoming decade. Already the ABC’s technology andinfrastructure needs consequently influence decisionsaboutthe The outcome ofthestrategic review will screen-based delivery. and manipulationofcontent for radio and technology for theefficientcapture, storage production activitiesandto harness digital to develop opportunitiesfor cross-media and newdigital media.TheABCwillcontinue effect across thetotal offering ofestablished 20 07 , 25
ANNUAL REPORT 2005–06