The ABC of Cost-Cutting

"The savings sought from the ABC are not of a scale that will require reductions in programme expenditure. The ABC may choose to cut programming rather than tackle back office and administrative costs - but that's the ABC's call."

These were the words of Communication Minister Malcolm Turnbull earlier this week, speaking about the likelihood that the ABC will have to scratch some of its most respected current affairs programmes due to the Government’s budget cuts.

The decision to cut $35.5m from the ABC’s operating budget has already been made, and it’s just been announced that Peter Lewis, the man who was tasked with the recent Efficiency Audit, has been appointed to the ABC Board. In all likelihood, Mr Turnbull would have been aware of Mr Lewis’s appointment before declaring it the “ABC’s call”.

While Peter Lewis’s influence as a board member may sway the balance towards cutting back office and support roles rather than programmes like Lateline, the question remains whether the ABC should be facing cuts at all.

The argument in favour of cuts to the ABC are predicated on the “budget emergency” being real, and involve two areas: the commercial media environment and the perceived bias of the ABC.

Shouldn’t we be looking at what the ABC provides and questioning its worth, rather than questioning the cost to provide it? Shouldn’t someone be asking what we want from Our ABC? Shouldn’t we be looking at the ABC Charter – a very handy piece of legislation, reprinted below – and determine if the Charter is still relevant, and then, if the ABC is meeting its charter? 

Shouldn’t we be looking at the ABC’s performance against that Charter, and asking our government if the organisation can meet the obligations detailed within the charter while sustaining a $35.5 million dollar budget cut, and without the Australia Network?

For the curious, here’s the Charter.

Charter of the Corporation 

             (1)  The functions of the Corporation are:

                     (a)  to provide within Australia innovative and comprehensive broadcasting services of a high standard as part of the Australian broadcasting system consisting of national, commercial and community sectors and, without limiting the generality of the foregoing, to provide:

                              (i)  broadcasting programs that contribute to a sense of national identity and inform and entertain, and reflect the cultural diversity of, the Australian community; and

                             (ii)  broadcasting programs of an educational nature;

                     (b)  to transmit to countries outside Australia broadcasting programs of news, current affairs, entertainment and cultural enrichment that will:

                              (i)  encourage awareness of Australia and an international understanding of Australian attitudes on world affairs; and

                             (ii)  enable Australian citizens living or travelling outside Australia to obtain information about Australian affairs and Australian attitudes on world affairs; and

                   (ba)  to provide digital media services; and

                     (c)  to encourage and promote the musical, dramatic and other performing arts in Australia.

Note:          See also section 31AA (Corporation or prescribed companies to be the only providers of Commonwealth‑funded international broadcasting services).

             (2)  In the provision by the Corporation of its broadcasting services within Australia:

                     (a)  the Corporation shall take account of:

                              (i)  the broadcasting services provided by the commercial and community sectors of the Australian broadcasting system;

                             (ii)  the standards from time to time determined by the ACMA in respect of broadcasting services;

                            (iii)  the responsibility of the Corporation as the provider of an independent national broadcasting service to provide a balance between broadcasting programs of wide appeal and specialized broadcasting programs;

                            (iv)  the multicultural character of the Australian community; and

                             (v)  in connection with the provision of broadcasting programs of an educational nature—the responsibilities of the States in relation to education; and

                     (b)  the Corporation shall take all such measures, being measures consistent with the obligations of the Corporation under paragraph (a), as, in the opinion of the Board, will be conducive to the full development by the Corporation of suitable broadcasting programs.

             (3)  The functions of the Corporation under subsection (1) and the duties imposed on the Corporation under subsection (2) constitute the Charter of the Corporation.

             (4)  Nothing in this section shall be taken to impose on the Corporation a duty that is enforceable by proceedings in a court.

Liberal Senator Cory Bernardi, in his argument in favour of slashing the ABC’s funding to dust, seemed to suggest that the ABC is too successful. 

"The ABC now has 100 per cent radio and television market penetration and is starting to encroach upon the commercial media via what could be termed the newspapers of the 21st century.

"Their growing online news presence puts financial pressures on existing commercial media operators. Unless we can redress that, media diversity in Australia may suffer."

It’s a curious argument that the success of the public broadcaster is a threat to media diversity, and therefore a threat to the commercial success of such media behemoths as Murdoch’s News Corporation.

The difference between the purpose of the ABC and the purpose of any commercial media organisation is that one has a responsibility to Australians, while the other has a responsibility to its shareholders. Contrary to Senator Bernardi’s read of the situation, the ABC is doing exactly what it was commissioned to do: reach as many Australians as possible.

The issue of perceived bias has been hanging around the ABC for as long as I can remember, and often swings with – or more accurately, against – the current government, particularly if it’s a conservative government. According to a recent review conducted by respected veteran journalist and producerGerald Stone, the proportion of stories deemed to be ‘of concern’ is extremely low. 

For now at least, Australia has a public broadcasting network which boasts a reach of near 100% for its radio and television services, is widely thought to be impartial, and is thought by 85% of Australians to be “of value” to the community. 

Whether the cuts are made to programming or back office roles, where is the national upside in threatening the credibility or functionality of the organisation?