Communications Minister Malcolm Turnbull confirmed cuts to the ABC on this week's episode of Q&A. But the Q&A audience of about 700,000 don't have much to fear. Their beloved news and current affairs program is likely to remain a feature of ABC programming even as the ABC slims down.
Far from the former Gillard government's threat of "cuts to the bone" under an Abbott government, Turnbull indicated that the ABC will be asked to reduce its budget by a paltry 5 per cent over the next five years.
Turnbull went on to make an excellent point: "Anyone here who is in business, has been in business — particularly anyone who has been in the media business — in the private sector that could not manage to find 5 per cent out of efficiencies is not even trying."
This is not a big ask. The Government would be justified in demanding far more significant cuts than the 5 per cent it has proposed. And there's a lot of fat to be cut.
That the ABC should be moving to operate on a more commercial basis is an entirely reasonable proposition.
The ABC — with its more than $1 billion a year budget — is a media behemoth with television, radio and online offerings. It competes, with the backing of the Australian taxpayer as financier, against private media organisations that have to earn an income the old-fashioned way.
But sales and subscriptions are no match for a giant government cheque.
Media organisations such as Fairfax and News Corp Australia have gone through some tough times in recent years. Following the peak of newspapers in the late 1990s, the pivot to a new media landscape has been a slow and challenging process.
This year, the Fairfax board had to make difficult decisions about their flagship mastheads The Age and Sydney Morning Herald, opting to cut 80 jobs to ensure the company's survival. This followed a major restructure midway through 2012 when about 1900 job cuts were announced.
The difficulties faced by Australia's traditional media organisations exist partly due to changing consumption choices of consumers due to the emergence of new technology. But these problems are exacerbated by the existence of a media colossus propped up by the taxpayer.
In an age where traditional media organisations are facing new challenges, the existence of a public broadcaster as a direct competitor is unconscionable.
Employee salaries are one area the ABC ought to review to find savings. The release of the salaries of a large number of ABC presenters in November last year revealed an extraordinarily generous remuneration culture at the public broadcaster. The top earners are on more than $350,000. The ABC spent more than $465 million on staff remuneration in 2011-12, almost half its annual budget.
Some programming may need to be cut. But it would be surprising if the most popular programs were those on the chopping block. When the government announced minuscule cuts to the ABC of 1 per cent in the May Budget, ABC managing director Mark Scott questioned whether popular children's show Peppa Pig would continue to be broadcast on the ABC.
These are empty threats from the ABC's chief lobbyist. The Government should be congratulated for ignoring them.
More likely are cuts to the ABC's overseas news bureaus and state-based news reporting. Any gaps in coverage left by the ABC will be filled by existing news agencies. In many cases, those services already exist.
At a time when the Government is working to ensure public finances are on a more sustainable footing, it's right that cuts are made to indulgences like the ABC. If there's fault to be found in this decision by the Abbott Government it's that these cuts don't go far enough. Let's hope 5 per cent is just the start.
ADVERTISEMENT
No comments:
Post a Comment