072/05
17 June 2005

ABC Funding Adequacy and Efficiency Review

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, today released the terms of reference for a review into the adequacy of the ABC’s current funding and the efficiency of the ABC’s use of its funding.

“The funding and efficiency review was an election commitment made by the Government after a request from the Board of the ABC,” Senator Coonan said.

“The review will provide a rigorous assessment of how the ABC uses its funding and a sound basis for future consideration of the ABC’s funding needs.

“As the Government stated in its broadcasting election policy, any additional resources identified as a result of this review will be available to the ABC to use towards meeting its Charter obligations.”

In 2005-06 the ABC’s total Government funding will be $792.1 million. The ABC will receive nearly $2.3 billion in Government funding over the 2003 – 06 triennium.

The terms of reference for the review were drafted in consultation with the ABC Board.

A tender for consultants to conduct the review will be advertised this weekend and the successful tenderer will work with the ABC and the Department of Communications, Information Technology and the Arts.

The terms of reference are attached.

Terms of Reference

ABC FUNDING ADEQUACY AND EFFICIENCY REVIEW

The Consultancy will be required to provide advice about the adequacy of the ABC’s current funding to undertake the functions specified in section 6 of the Australian Broadcasting Corporation Act 1983 (the ABC Charter), and the efficiency of the ABC’s use of this funding.

The Consultancy will be required to assess and provide advice on whether there are practicable cost efficiencies which would allow funding to be made available for priority ABC initiatives.

In providing advice on these matters, the Consultancy should have regard to:

• The ABC’s legislative obligations;
• The structure of the ABC and its regional activities;
• The range of services provided by the ABC;
• The impact of the changing media and technological environment on the ABC including the impact of digital conversion;
• The current state of the national and international market in which the ABC operates for acquiring and selling programming; and
• The impact of changing industry costs.