Senator the Hon Helen Coonan was Minister for Communications, Information Technology and the Arts from 18 July 2004 to 3 December 2007. This site is available for archival purposes only.

Senator Stephen Conroy is the current Minister for the Department of Broadband, Communications and the Digital Economy

30/07
Thursday 29 March 2007

Media Laws Proclaimed

Minister for Communications, Information Technology and the Arts, Senator Helen Coonan today announced Wednesday 4 April 2007 as the day on which the Government’s media reform package will commence.

The date was fixed by proclamation this morning as the commencement date for Schedule 2 to the Broadcasting Services Amendment (Media Ownership) Act 2006.

“Schedule 2 implements the Government’s longstanding commitment to reforming Australia’s restrictive media ownership laws while protecting the public interest and therefore ensuring a diverse and vibrant media sector,” Senator Coonan said.

“The Government’s media reforms will encourage greater competition and allow media companies to achieve economies of scale and scope, while maintaining the diversity of Australia’s media landscape.

“The current foreign ownership and control restrictions relating to free-to-air and subscription television, and cross-media ownership restrictions on commercial radio and television licences and associated newspapers have for too long limited competition in the media sector. They have restricted access to foreign capital and expertise and stifled opportunities for growth.

“The new laws create a framework that will deliver greater consumer choice and a competitive industry in a rapidly growing digital media age. Australia needs a flexible system to allow media organisations - national, commercial or community based - to adapt and prosper in the new digital environment,” Senator Coonan said.

Schedule 2 to the Act amends the BSA to:

remove the foreign ownership restrictions for commercial and subscription television interests;
remove the cross-media ownership restrictions relating to commercial radio licences, commercial television licences or associated newspapers (subject to certain safeguards);
impose disclosure obligations on commercial radio and television licensees and newspaper publishers with cross-media interests;
require the Australian Communications and Media Authority (ACMA) to impose licence conditions from 1 January 2008 on commercial television licensees in regional aggregated Queensland, New South Wales, Victoria and Tasmania markets to broadcast a minimum level of ‘material of local significance’;
require ACMA to impose licence conditions from the date of commencement of Schedule 2 on regional commercial radio licensees that require licensees to maintain existing levels of local presence if the licence is subject to a ‘trigger event’ (that is, a change in ownership or if it becomes part of a cross-media group);
require ACMA to impose licence conditions from 1 January 2008 on regional commercial radio licensees to broadcast a minimum level of ‘material of local significance’ between 6am and 6pm on business days (the default level is presently 4.5 hours but this is the subject of a review by ACMA which is due to report by 30 June 2007); and
subject regional commercial radio licensees to further local content obligations if a ‘trigger event’ occurs.

Further obligations involve minimum broadcast service standards for local news and information, as well as planning and reporting requirements.

“ACMA has been directed to report to me by 31 March 2007 on the current definition of a ‘trigger event’ contained within the BSA and whether it has the potential to cause unintended consequences,” Senator Coonan said.

“I will consider the report’s findings once it is available. As is normal in these circumstances, the regulations in relation to the trigger event will apply as provided in the BSA.”

In addition, the Minister has directed ACMA to investigate whether the requirement for all regional radio licensees to broadcast 4.5 hours per business day of local content is an appropriate level.

“ACMA will provide its report to me by 30 June 2007 and I will closely consider the review findings and any applicable recommendations following the regulator’s consultation with industry.

“Under new cross media ownership regulations, no new transactions can proceed unless a minimum of five independent media operations or groups are maintained in metropolitan markets and four in regional markets,” Senator Coonan said.

“And no more than two of the three regulated platforms (that is, commercial radio, commercial television and Associated Newspapers) can be controlled by the same person or organisation in any one licence area.”

Senator Coonan said the existing licence and reach rules which prevent an organisation controlling more than one commercial television licence or two commercial radio licences in any licence area, and preventing control of commercial television licences reaching an audience of more than 75 per cent of the Australian population, will remain.

“ Australia’s reach rules are unchanged,” Senator Coonan said.

“It is also important to note that as part of the Media Reform package, ACMA’s enforcement powers have been increased and now include criminal and civil penalties, divestment powers, injunctions powers and an ability to accept enforceable undertakings,” Senator Coonan said.

Senator Coonan said today’s announcement follows ACMA’s completion this week of the practical requirements necessary for the proper implementation of Schedule 2 – the Register of Controlled Media Groups and the ‘local presence’ licence condition which comes into play only in relation to regional commercial radio licensees after a ‘trigger event’.

“A key part of the Media Reform package is its focus on Australia’s conversion to digital broadcasting. I will be announcing the membership of Digital Australia’s Industry Advisory Group next week. In addition, arrangements for the sale of digital spectrum channels A and B are currently being considered by ACMA,” Senator Coonan said.

FURTHER INFORMATION

The ACCC will maintain its role in enforcing the competition provisions of section 50 of the Trade Practices Act 1974 in respect of all media transactions.

The newspaper specific foreign ownership restrictions in the Australian Government’s Foreign Investment Policy (FIP) will be removed by the Foreign Investment and Review Board (FIRB) concurrent with the commencement of Schedule 2.

These foreign investment reforms provide for the media to be retained as a “sensitive sector” under the FIP and proposals by foreign interests to invest in the media sector will remain subject to approval by the Treasurer (in consultation with FIRB).

Under the FIP unless a foreign investment constitutes a portfolio investment below 5 per cent, it must be notified to FIRB and all such investments must be assessed as to whether they are consistent with the national interest.

The commencement date in 5 days time was chosen to provide the ACMA, the Australian Competition and Consumer Commission, the Australian Stock Exchange, FIRB and industry with sufficient advance notice of these significant changes to media regulation.

Other parts of the Broadcasting Services Amendment (Media Ownership) Act 2006 that have already commenced include:

Sections 1‑3 commenced on Royal Assent, 4 November 2006.
Schedule 1 commenced on 1 February 2007 to allow the ACMA the opportunity to design and establish the Register of Controlled Media Groups - a core component of the media reform package.

The amendments in Schedule 3 will commence on 1 January 2009 to coincide with the commencement of Schedule 3 of the Broadcasting Legislation Amendment (Digital Television) Act 2006 which provides that commercial television licensees may provide an additional stream of programming (a “multi-channel”) in standard definition digital format.

Media Contact: Fiona Telford 02 6277 7480