The ABC’s $223 million international broadcasting service, the Australia Network, should be scrapped, according to the Abbott government’s Commission of Audit.
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The report also calls for a reconsideration of ABC and SBS funding because the growth of the internet is “eliminating the traditional arguments for public broadcasting”.
The Commission of Audit report finds the Australia Network – which aims to advance Australia’s “soft power” by broadcasting to 46 countries in the Asia-Pacific region – is too expensive “given its limited outreach to a small audience”.
The network’s cost, $223 million over 10 years, should be directed to other diplomatic efforts or returned to the budget, the report recommends.
Foreign Minister Julie Bishop is considering scrapping the network, which is finalising a deal to broadcast throughout China through an arrangement with the Shanghai Media Group.
The report recommends that the ABC and SBS should be independently benchmarked against each other and the commercial broadcasters to determine if they are funded correctly. The benchmarking outcome would inform future funding decisions, with savings possibly reinvested in the budget rather than in the broadcasters.
“The Commission acknowledges that there is no ‘right’ level of funding that should be provided to the ABC and the SBS, or ‘right’ level of services that should be provided by the public broadcasters,” the report says.
“However, it considers that both organisations have the ability to improve their efficiency and better target expenditure than may currently be the case.
“Media convergence, especially the availability and access of text, audio and video media via the internet, is increasingly eliminating the traditional arguments for public broadcasting.
“It could be argued that the need for government intervention or support has now been superseded by technology and commercial imperatives.”
The Abbott government has commissioned a separate “efficiency study” into ABC and SBS operations. Fairfax Media revealed last month that the government’s powerful Expenditure Review Committee is considering applying an “efficiency dividend” to the ABC to bring it into line with other government departments.
