10 October 2006

Government to introduce additional media diversity safeguards

The Government will amend the media reform package to introduce additional safeguards to protect local content and diversity, the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, announced today.

Following consideration of the Senate Committee report on the legislation currently before the Senate, the Government will move amendments to strengthen the package in further recognition of media’s status as a sensitive industry sector.

To enable diversity of content on the new digital services the Government intends to introduce access arrangements for Channel B – which will be used for innovative new services such as mobile TV.

A person wishing to bid for the Channel B licence will be required to submit an access undertaking to the ACCC in accordance with pre-determined criteria to be eligible to bid.

To ensure live and local content continues to flourish in rural and regional areas the Government will mandate a minimum of 12.5 minutes of local news on at least five days a week. It will also mandate minimum levels of local content to be broadcast. This will take effect following a review of local content.

And to respond to concerns that the package may lead to an increase in concentration of ownership in the media industry, the Government will impose a 2 out of 3 rule in all markets in addition to the four/five voices test.

This will prevent mergers of the three media platforms in a licence area – commercial radio, associated newspapers and commercial television – and restrict media mergers to no more than two of those groups.

The Coalition Party Room today considered and endorsed these amendments. I have consulted widely on the package and considered the recommendations of my colleagues on the Senate Committee.

I believe the amendments will enhance the package and assuage concerns that further deregulation of the media industry would lead to undue concentration and the loss of diversity. I thank my colleagues for their input during this process.

The Government remains committed to reforming Australia’s outdated and outmoded media rules. The rules are almost 20 years old and no longer reflect the realities of a media industry impacted by technological innovation and changes in consumer habits.

The second reading debate on the Bills will commence today. The amendments will be circulated in the Senate in the usual way.