036/006
9 May 06

Australian Broadcasting Corporation funding increases

The Australian Broadcasting Corporation (ABC) will receive significant new funding in the 2006-09 triennium following the announcement of the 2006–07 Budget.

The ABC's base funding will increase to $ 530.8 million in 2006–07, $543.5 million in 2007–08 and $555.0 million in 2008–09.

“This funding ensures the ABC's base funding is maintained in real terms in line with the Government's 2004 election commitment,” said the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan.

“In addition to this funding, the Government will provide the ABC with $88.2 million for new initiatives over the next three years,” she said.

“This will bring the ABC's total Government funding for the 2006-09 triennium to more than $2.5 billion.”

The ABC will receive $38.3 million (plus depreciation funding of $6.8 million) to help improve its capital asset base by purchasing new equipment to replace old or outdated equipment, particularly in its studios outside Sydney and Melbourne.

A further $30 million over three years will be provided for new Australian television content production. This funding will enable the ABC to establish an independent commissioning arm to invest in high quality drama and documentaries from the Australian independent production sector. This funding will assist in addressing the reduction in Australian content on ABC TV over recent years and will also provide a significant boost to the local production sector.

Funding for the ABC's successful Regional and Local Programming initiative will be increased by $13.2 million over the next three years, bringing total funding for this initiative to $68.7 million over the triennium. The Regional and Local Programming initiative has resulted in more ABC regional radio stations, radio and television programme production in regional areas and expanded online content.

“In particular, this funding will support and strengthen the delivery of the ABC's services to regional Australia by enabling it to supplement its ‘live and local' coverage of events in regional Australia, to tell local stories and to provide local perspectives on national events,” Senator Coonan said.

“This funding is a clear demonstration of the Government's commitment to the funding of public broadcasting in Australia . The Government is committed to ensuring the ABC remains independent and is able to deliver the quality programming and high standard of service that Australians have come to expect.”

“These funding increases follow the Government's consideration of the ABC Funding Adequacy and Efficiency Review and the ABC's Triennial Funding Submission, and are in recognition of the importance of the ABC as one of Australia 's primary cultural institutions,” she said.

Supporting Information

Why is this important?

• The ABC is one of Australia 's primary cultural institutions and it plays a vital role in our national life.

Who will benefit?

• The Australian public.

What funding is the Government committing to the initiative?

• The ABC's base funding will increase to $ 530.8 million in 2006–07, $543.5 million in 2007–08, and $555.0 million in 2008–09.
• $38.3 million to assist in improving its capital asset base (plus depreciation funding of $6.8 million).
• $30.0 million over three years will be provided for Australian television content production.
• $13.2 million for the Regional and Local Programming initiative.

What have we done in the past?

• The ABC's base funding has been maintained since 1997.
• The Government has also provided additional funding for a number of initiatives over this time, including:
• • The existing RLP funding which includes $71.2 million announced in 2001 for 2001–02 to 2004-05, as well as a commitment to provide a further $54.4 million over 3 years from 2005–06 announced in 2004; and
  • $4.2 million per year from 2004–05, indexed and ongoing, to help the ABC meet the increasing cost of television programming purchasing.
• The Government has also agreed to fund the ABC's digital conversion, which is expected to cost in the order of $600 million over the decade.

When will the initiative conclude?

• ABC funding is reviewed on a triennial basis, and is next due for consideration in the 2009-10 Budget.