COMMONWEALTH OF AUSTRALIA SENATE Official Committee Hansard ENVIRONMENT, RECREATION, COMMUNICATIONS AND THE ARTS LEGISLATION COMMITTEE Consideration of Estimates THURSDAY, 11 JUNE 1998 CANBERRA BY AUTHORITY OF THE SENATE CANBERRA 1998 INTERNET The Proof and Official Hansard transcripts of Senate committee hearings, some House of Representatives committee hearings and some joint committee hearings are available on the Internet. Some House of Representatives committees and some joint committees make available only Official Hansard transcripts. The Internet address is: http://www.aph.gov.au/hansard CONTENTS THURSDAY, 11 JUNE Department of Communications and The Arts— Program 4—Communications—Subprogram 4.3—Telstra Corporation Limited .......................................... 295 Program 3—Broadcasting, online and information services— Subprogram 3.3—Australian Broadcasting Corporation ......... 352 Subprogram 3.4—Special Broadcasting Service .............. 414 Sub-program 3.5—Australian Broadcasting Authority .......... 424 Program 4—Communications— Subprogram 4.2—Australian Postal Corporation .............. 449 Subprogram 4.4—Australian Communications Authority ........ 454 Subprogram 3.2—National Transmission Authority ............ 466 SENATE ENVIRONMENT, RECREATION, COMMUNICATIONS AND THE ARTS LEGISLATION COMMITTEE Thursday, 11 June 1998 Members: Senator Patterson (Chair), Senator Schacht (Deputy Chair), Senators Allison, Eggleston, Lightfoot and Lundy Substitute member: Senator Tierney Senators in attendance: Senator Calvert, Colston, Cooney, Eggleston, Forshaw, Lundy, Patterson, Schacht and Tierney Committee met at 9.08 a.m. DEPARTMENT OF COMMUNICATIONS AND THE ARTS Proposed expenditure, $1,183,973,000 (Document A) Proposed provision, $43,768,000 (Document B) In Attendance Senator Alston, Minister for Communications, the Information Economy and the Arts Department of Communications and the Arts Executive Mr Neville Stevens, Secretary Program 1—Arts and Heritage Subprogram 1.1—Centenary of Federation Mr James Barr, Head of Secretariat, National Council for the Centenary of Federation Ms Sharon McAuliffe, Assistant Director, Corporate Management, National Council for the Centenary of Federation Subprogram 1.2—Arts and Heritage Policy Mr Les Neilson, Acting First Assistant Secretary, AHD Mr Peter Young, Acting Assistant Secretary, Arts Mr Kevin Wohlers, Acting Assistant Secretary, Cultural Heritage Ms Jen Levy, Acting Assistant Secretary, Federation Task Group Subprogram 1.3—National Archives Mr Malcolm Wood, Assistant Director General Mr Steve Stuckey, Assistant Director General Subprogram 1.4—Australia Council Mr Michael Lynch, General Manager Ms Sarah Gardener Mr Gabriel Chan Mr Don Baxter Subprogram 1.5—Australia National Maritime Museum Ms Mary-Louise Williams, Acting Director ERC&A 292 SENATE—Legislation Thursday, 11 June 1998 Mr Quentin Howarth, Assistant Director, Corporate Services Ms Debra Bock, Manager, Finance Subprogram 1.6—National Gallery of Australia Mr Brian Kennedy, Director Mr Alan Froud, Deputy Director Mr Keiron Roost, Head of Finance Subprogram 1.7—National Library of Australia Mr Warren Horton, Director General Mr Peter Hughes, FMS Project Team Subprogram 1.8—National Museum of Australia Ms Dawn Casey, Executive Director, (Acting First Assistant Secretary) Construction Coordination Taskforce Dr William Jonas, Director Dr Darryl McIntyre, General Manager, Core Operations Subprogram 1.9—National Science and Technology Centre Mr Chris Bee, Deputy Director Mr Gary Bullivant, Business Manager Program 2—Film and Intellectual Property Subprogram 2.1—Film and Intellectual Property Policy Dr Alan Stretton, First Assistant Secretary Mr Alan Edwards, Acting Assistant Secretary, PBB Ms Megan Morris, Assistant Secretary Film Dr Kay Daniels, Assistant Secretary, IPB Subprogram 2.2—Australian Film, Television and Radio School Mr Rod Bishop, Director Ms Susan Hissey, Accountant Subprogram 2.3—National Film and Sound Archive Mr Ron Brent, Director Ms Margaret Baird, Acting Senior Manager RMB Ms Sarah McDonald, GAA Subprogram 2.4—Australian Film Finance Corporation Ms Catriona Hughes, Chief Executive Mr Michael Malouf, Financial Controller Mr Michael Ward, Manager Subprogram 2.5—Film Australia Ms Sharon Connolly, Chief Executive Officer Ms Deborah Coombe, Head of Finance ENVIRONMENT, RECREATION, COMMUNICATIONS AND THE ARTS Thursday, 11 June 1998 SENATE—Legislation ERC&A 293 Subprogram 2.6—Australian Film Commission Ms Catherine Robinson, Chief Executive Ms Kim Ireland, Policy Adviser Mr Ron Neale, Director, Finance and Systems Program 3—Broadcasting, Online and Information Services Subprogram 3.1—Broadcasting, Online and Information Policy Dr Rod Badger, First Assistant Secretary (LBISD) Dr Beverly Hart, Assistant Secretary (LBB) Mr Michael Sutton, Assistant Secretary (RTIF) Mr Colin Lyons, Assistant Secretary, (Telev Group) Subprogram 3.2—National Transmission Agency Mr Vic Jones, General Manager Subprogram 3.3—Australian Broadcasting Corporation Mr Brian Johns, Managing Director Mr Colin Knowles, Head, Technology Ms Sue Howard, Head, Regional Services Ms Clair Henderson, Acting General Manager, Network Television Ms Liz Jakubowski Mr Russell Balding, Head, Finance and Business Services Ms Janet Clayton, Chief of Staff, Corporate Office Subprogram 3.4—Special Broadcasting Service Mr Nigel Milan, Managing Director Mr Peter Cavanagh, Head of Television Ms Maureen Crowe, Head, Resources Mr Chris Sharp, Policy Manager Subprogram 3.5—Australian Broadcasting Authority Mr Gareth Grainger, Deputy Chairman Mr Giles Tanner, General Manager Ms Jonquil Ritter, Acting Director, Policy and Content Regulation Subprogram 3.6—National Office for the Information Economy Mr Brian Stewart, General Manager, Legal and Regulatory Framework Mr Arthur Blewitt, General Manager, Corporate and Government Mr Tim Field, General Manager, Government Services Mr Tom Dale, General Manager, International Program 4—Communications Subprogram 4.1—Telecommunications and Postal Policy Ms Faye Holthuyzen, First Assistant Secretary, Telecommunications Industry Division Mr Chris Cheah, Assistant Secretary, Competition Consumer Branch ENVIRONMENT, RECREATION, COMMUNICATIONS AND THE ARTS ERC&A 294 SENATE—Legislation Thursday, 11 June 1998 Mr Richard Thwaites, Assistant Secretary, Trade and Development Branch Mr John Neil, Assistant Secretary, Enterprise and Radiocommunications Branch Subprogram 4.2—Australia Post Corporation Mr Gerry Ryan, Corporate Secretary Mr Maurice Castro, Group Manager, Strategic Planning Mr John Power, Group Manager, Letter Mr Jim Marshall, Group Manager, National Operations Subprogram 4.3—Telstra Corporation Limited Mr Graeme Ward, Group Director, Regulatory and External Affairs Mr John Stanhope, Director, Finance Mr John Losco, Managing Director, Business and Government Sales Mr Peter Frueh, Managing Director, Business Development, Products and Marketing Mr Geoff Barkla, Director, Industrial Relations Mr Lawrence Paratz, Executive General Manager, Network and IT Infrastructure Ms Deena Schiff, Director, Regulatory Mr Andrew Day, Managing Director, Commercial and Consumer Sales Mr Tony Bundrock, General Manager, Customer Strategy, Business and International Ms Deanne Weir, General Counsel, Regulatory and External Affairs Subprogram 4.4—Australian Communications Authority Dr Bob Horton, Deputy Chairman Ms Esther Alter, Member Mr Roger Smith, Senior Executive Manager, Planning and Standards Group Mr Geoff Luther, Executive Manager, Marketing Group Mr John Haydon, Executive Manager, Telecommunications Licensing Group Ms Roslyn Kelleher, Executive Manager, Consumer Affairs Group Mr John Grant, Executive Manager, Corporate Management Group Mr Jeremy Chandler, Manager, Finance Department of Finance— Ms Kelly Ralston CHAIR—I call the committee to order. The committee will continue the examination of Communications, the Information Economy and the Arts portfolio. Unless otherwise stated, answers to questions on notice are to be provided to the secretariat by close of business on 17 July 1998. The committee will begin with subprogram 4.3, Telstra, then proceed to subprograms 3.3, 3.4 and 3.5 of program 3—Broadcasting, online and information services—followed by subprograms 4.1, 4.2 and 4.4 of program 4, Communications. The committee will then conclude with subprogram 3.1, Broadcasting online and information services policy, and subprogram 3.2, National Transmission agency. ENVIRONMENT, RECREATION, COMMUNICATIONS AND THE ARTS Thursday, 11 June 1998 SENATE—Legislation ERC&A 295 I welcome the minister, Senator the Hon. Richard Alston, and officers from the Communications, the Information Economy and the Arts portfolio. [9.09 a.m.] Program 4—Communications Subprogram 4.3—Telstra Corporation Limited Senator SCHACHT—Welcome, gentlemen. I see that Mr Rizzo has decided to give us a miss again, and Mr Blount has not even considered us at all, I presume. Mr Ward—I think the team that you see before you, Senator, is the one that we consistently bring to Senate estimates. Senator SCHACHT—I am not denying that, that is the truth, but I noticed Mr Rizzo deigned to appear before the Telstra full privatisation bill inquiry in Melbourne, which I do not think we should be grateful about. He should have appeared, and he should appear here as the chief finance officer. Mr Ward—I guess the privatisation bill hearing fits very much into Paul Rizzo’s accountability, and for finance matters we have none other than the Director of Finance, John Stanhope. Senator SCHACHT—I