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2016 - 2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE SENATE
AUSTRALIAN BROADCASTING CORPORATION AMENDMENT
(RURAL AND REGIONAL MEASURES) BILL 2017
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Communications
Senator the Honourable Mitch Fifield)
AUSTRALIAN BROADCASTING CORPORATION AMENDMENT
(RURAL AND REGIONAL MEASURES) BILL 2017
OUTLINE
The Bill implements several measures to facilitate the provision of broadcasting services by
the Australian Broadcasting Corporation (ABC) that meet and reflect the needs of rural
regional Australia.
The Bill will amend the ABC's Charter, set out in the Australian Broadcasting Corporation Act
1983 (ABC Act), in relation to the delivery of services. This will ensure that the ABC's
broadcasting programs contribute to a sense of regional as well as national identity, and
reflects the geographic as well as cultural diversity of the Australian community.
The Bill also amends the ABC Act to ensure that the Board has two members with a
substantial connection to, or substantial experience in, a regional area through business,
industry or community involvement.
The Bill will also establish a Regional Advisory Council to ensure that the ABC Board takes
into account the unique views and needs of regional areas in making any significant changes
to its broadcasting services that impact regional audiences.
Finally, the Bill will require the ABC Board to report annually on a range of additional
matters, including the total number of individuals employed by the Corporation in regional
and metropolitan areas, and the ratio of individuals employed as journalists compared to those
employed as support staff.
Background
The ABC is an independent statutory authority established under the ABC Act. The
Australian Government provides funding to the ABC, but the ABC has independence in
relation to programming and operational matters. Whilst the ABC has editorial independence,
it is accountable to the Parliament through Annual Reports, Corporate Plans, financial and
performance audits, and appearances before Parliamentary Committees. The ABC is governed
by a Board (up to nine members) whose members, with the exception of the Managing
Director and staff-elected Director, are appointed by the Governor-General. The Managing
Director is appointed by the Board.
Amendments
The intention of the amendments to the ABC Act is to ensure rural and regional communities
are provided for in the functions of the Corporation and through representation on the ABC
Board. The ABC Act will be amended in five key areas.
Inclusion of regional and geographic diversity
The Bill will amend the ABC's Charter in relation to the delivery of services to ensure that
the ABC's programs contribute to a sense of "regional and" national identity, and inform and
entertain, and reflect the cultural "and geographic" diversity of, the Australian community.
The intention of this amendment is to reflect the unique purpose of the ABC, which is to have
regard to providing broadcasting services which encompass Australia as a whole. The
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amendment will also ensure that the ABC contributes to and promotes regional Australia, and
provides services and information that cater to the needs of audiences in those areas.
Establishment of a Regional Advisory Council
The ABC Board currently has an Advisory Council which provides advice to the Board on all
matters. The Regional Advisory Council will be made up of members who have a substantial
connection to, or substantial experience in, a regional area through business, industry or
community involvement, and who are not a member of another advisory council or
committee.
ABC Board to consult with the Regional Advisory Council
The ABC Board will be required to consult with the Regional Advisory Council before
making a change to a broadcasting service in a regional area that is likely to have a significant
impact on audiences in the regional area. The Regional Advisory Council will also be able to
provide advice to the ABC Board on matters relating to the provision of broadcasting services
in regional areas. The ABC will also be required to report on all consultations with the
Regional Advisory Council through its Annual Report. This requirement will take effect in
the annual reporting period after which the Act receives the Royal Assent.
ABC Board connection to regional Australia
The ABC Board is appointed by the Governor-General following a merit-based selection
process. The Government will be required to take all reasonable steps to ensure that the ABC
Board has at least two appointed non-executive directors who have a substantial connection
to, or substantial experience in, a regional area through business, industry or community
involvement.This amendment will provide that the perspectives, views and needs of regional
areas are appropriately considered by the ABC Board.
Annual reporting obligations
Section 80 of the ABC Act provides for matters to be included in the Corporation's annual
report. The additional annual reporting obligations will require the ABC to provide statistics
on the number of individuals employed in regional areas and metropolitan areas separately.
These statistics will include individuals employed as journalists or support staff. There is also
a requirement to report on the total number of hours of local or regional news bulletins
broadcast during the reporting period.
FINANCIAL IMPACT STATEMENT
It is anticipated that the establishment and ongoing costs for the Regional Advisory Council
will result in an outlay for the ABC of $0.1 million per annum ongoing. This cost will be
absorbed by the ABC. The other measures in this Bill are expected to have no financial
impact.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Australian Broadcasting Corporation Amendment (Rural and Regional Measures) Bill
2017
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act
2011.
Overview of the Bill
The Australian Broadcasting Corporation (ABC) is a publicly funded broadcaster established
by the Australian Broadcasting Corporation Act 1983 (the ABC Act). The ABC provides
broadcast and digital media services that cater to Australia's diverse social, cultural and
geographical audiences, including independent news and information services of the highest
standards.
The Bill would implement several measures promoting rural and regional broadcasting, and
the interests of rural and regional Australia, in relation to the operations of the ABC. In
particular, the Bill would amend the ABC's Charter in relation to the delivery of services to
ensure that the ABC's programs contribute to a sense of regional and national identity and
inform and entertain, and reflect the cultural and geographic diversity of, the Australian
community.
The Bill would also require the Prime Minister and the Minister to take all reasonable steps
when making recommendations to the Governor-General about the appointment of particular
Board members, to ensure that at least two of the members have a substantial connection to,
or substantial experience in, a regional area through business, industry or community
involvement. The Bill would also provide for a Nomination Panel, used to conduct a selection
process and prepare a selection report, to take into account this consideration.
The Bill would also establish a Regional Advisory Council (the Council) to help ensure that
the ABC represents and reflects the needs and interests of the regions it services. The Board is
required to consult with the Council before making a decision that will result in a change to a
broadcasting service provided in a regional area if that change would result in a substantial
impact on audiences in the regional area. The Council is to advise the Board on matters
relating to the provision by the ABC of broadcasting services in regional areas, either on its
own initiative or at the request of the Board.
The Bill would also require the ABC's annual report to include:
the particulars of any advice received by the Board during the period from the Council;
the number of individuals employed by the ABC in regional and metropolitan areas;
the ratio of individuals employed by ABC in regional areas as journalists compared to the
total number of individuals employed in regional areas as support staff;
the ratio of individuals employed by the ABC in metropolitan areas as journalists
compared to the total number of individuals employed as support staff; and
the number of hours of local or regional news bulletins broadcast during the period.
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Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
The Bill is compatible with human rights as it does not raise any human rights issues.
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ABBREVIATIONS
The following abbreviations are used in this explanatory memorandum:
ABC Act Australian Broadcasting Corporation Act
1983
ABC Australian Broadcasting Corporation
Bill Australian Broadcasting Corporation
Amendment (Rural and Regional
Measures) Bill 2017
Board ABC Board of Directors
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NOTES ON CLAUSES
Clause 1 - Short title
Clause 1 provides that the Bill, when enacted, may be cited as the Australian Broadcasting
Corporation Amendment (Rural and Regional Measures) Act 2017.
Clause 2 - Commencement
Clause 2 provides for the commencement of provisions in the Bill when enacted.
Item 1 of the table at subclause 2(1) provides that the whole of the Bill would commence on
the day after the Bill receives the Royal Assent.
Clause 3 - Schedules
Clause 3 provides that legislation that is specified in a Schedule to the Bill is amended or
repealed as set out in the applicable items in that Schedule, and any other item in a Schedule
has effect according to its terms.
There is one Schedule to the Bill, comprising two parts.
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SCHEDULE 1--AMENDMENT OF THE AUSTRALIAN BROADCASTING
CORPORATION ACT 1983
The Australian Broadcasting Corporation (ABC) is a body corporate that is enshrined in
legislation by virtue of the ABC Act. Subsection 6(1) of the ABC Act sets out the Charter of
the ABC. Section 7 of the ABC Act establishes the ABC Board of Directors (the Board).
Section 8 of the ABC Act sets out the duties of the Board. The Board and ABC operations are
to be overseen by the Managing Director (sections 9 and 10 of the ABC Act).
The Board consists of the Managing Director, the Chairperson, the staff-elected Director and
four to six other Directors (section 12 of the ABC Act).
Part 1 - Amendments
Item 1 - Subsection 3(1) (after paragraph (a) of the definition of Advisory Council)
Item 1 would insert a new paragraph (aa) into the definition of Advisory Council at subsection
3(1) of the ABC Act, broadening the definition to encompass the Australian Broadcasting
Corporation Regional Advisory Council, which would be required to be established under
new subsection 11(1A) (refer item 5 below).
Item 2 - Subsection 3(1)
Item 2 would insert three new definitions into subsection 3(1) of the ABC Act.
The two new terms metropolitan area and regional area are central to various new
transparency measures proposed by the Bill.
The term metropolitan area means an area that is a Greater Capital City Statistical Area
within the meaning of the most recent published edition of the Australian Statistical
Geography Standard, as produced by the Australian Bureau of Statistics.
The term regional area means an area in Australia that is not a metropolitan area. However,
the definition does not apply to paragraph (b) of the proposed definition of Advisory Council
or existing subsections 11(2) and (4) of the ABC Act.
The term Regional Advisory Council means the Australian Broadcasting Corporation
Regional Advisory Council. The new Council will be established under proposed subsection
11(1A) (refer item 5).
Item 3 - Subparagraph 6(1)(a)(i)
Item 4 - Subparagraph 6(1)(a)(i)
Item 3 would insert the words "regional and" into subparagraph 6(1)(a)(i) to reflect the
establishment of the Regional Advisory Council by item 5. Similarly, item 4 would insert the
words "geographic and" into that subparagraph to reflect the establishment of the Regional
Advisory Council. The combined effect of items 3 and 4 is that the Charter will require the
ABC to broadcast programs that contribute to a sense of regional and national identity, and
inform and entertain, and reflect the geographic and cultural diversity of, the Australian
community.
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Item 5 - After subsection 11(1)
Section 11 of the ABC Act requires the Board to establish an Advisory Council, and
empowers the Board to establish other Advisory Councils. These Councils are to provide the
Board with advice on matters relating to the ABC's broadcasting programs.
Item 5 would insert subsection 11(1A), requiring the Board to establish the Australian
Broadcasting Corporation Regional Advisory Council, which would report to the Board in a
similar way to the existing ABC Advisory Council. The new Regional Advisory Council must
be established by the Board within 3 months of the commencement of the Bill.
Item 6 - After subsection 11(3)
Item 6 would insert subsection 11(3A), which articulates the function of the ABC Regional
Advisory Council to advise the Board (either on its own initiative or if requested by the
Board) on matters relating to the provision by the ABC of broadcasting services in regional
areas.
Item 7 - After subsection 11(6)
Item 7 would insert subsections 11(6A) and (6B) pertaining to the appointments to the
proposed ABC Regional Advisory Council.
Proposed subsection 11(6A) would restrict appointments to the ABC Regional Advisory
Council, such that only a person who has a substantial connection to, or substantial experience
in, a regional area through business, industry or community involvement, is able to be
appointed to the Council.
Proposed subsection 11(6B) would further restrict appointments to the ABC Regional
Advisory Council, such that a person must not be appointed to the Council if they are a
member of another ABC Advisory Council or committee.
Item 8 - After subsection 11(10)
Item 8 would insert subsection 11(10A). This new provision provides that if the Board
decides that the members of the ABC Regional Advisory Council should be remunerated,
those members are to be provided such remuneration as determined by the Remuneration
Tribunal.
Item 9 - Subsection 11(12)
Item 9 would make a consequential change to subsection 11(12) to reflect the establishment
of the ABC Regional Advisory Council by item 5 of Schedule 1 to the Bill.
Item 10 - At the end of section 11
Item 10 would insert new subsections 11(13) and (14).
Proposed subsection 11(13) sets out that the ABC Board must consult the ABC Regional
Advisory Council before making a decision that would result in a change to a broadcasting
service provided by the ABC in a regional area, where that change is likely to have a
significant impact on audiences in that particular regional area. In recognition that it may take
up to three months from commencement of the Bill for the ABC Regional Advisory Council
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to be established, the new consultation obligation proposed by subsection 11(13) will not
apply to a decision made during the period from the commencement of this subsection up
until the establishment of the Council (proposed subsection 11(14)).
Item 11 - After subsection 12(5D)
Board membership requirements are provided under section 12 of the ABC Act. Item 11
would insert three new subsections into section 12 setting out additional requirements that
must be met before a new appointment is made to the ABC Board.
Proposed subsection 12(5E) would provide that when making recommendations to the
Governor-General about the appointment of Directors referred to in paragraph 12(1)(b) or
12(1)(c) of the ABC Act, the Prime Minister and the Minister must take all reasonable steps
to ensure that at least two of the Directors are persons with a substantial connection to, or
substantial experience in, a regional area through business, industry or community
involvement.
Proposed subsection 12(5F) would set out that if the Governor-General appoints a Chair with
a substantial connection to, or substantial experience in, a regional area through business,
industry or community involvement, the Prime Minister must prepare a statement outlining
the person's particular connection or experience in this regard.
Proposed subsection 12(5G) is substantially the same as subsection 15(5F). However, this
subsection pertains to appointments by the Governor-General of a Director with a substantial
connection to, or substantial experience in, regional area through business, industry or
community involvement, and requires the Minister to prepare a statement.
As a further transparency measure, the Prime Minister or Minister will be required to table
copies of the statement in each House of Parliament within 15 sitting days after the instrument
of appointment was signed by the Governor-General (refer proposed paragraphs 12(5F)(d)
and 12(5G)(d)).
Item 12 - After subsection 24B(2)
Item 12 would insert a new subsection 24B(2A), which is a further transparency measure
regarding the ABC Director selection process.
Nomination Panels, established by section 24A of the ABC Act, have various functions and
responsibilities relating to the selection and assessment of applicants for appointment to the
ABC Board.
In addition to its existing obligations, proposed subsection 24(2A) would require a
Nomination Panel to undertake the following three additional steps when it has conducted a
selection process for an appointment of a Director or Chairperson to the ABC Board:
assess whether each applicant for the appointment is a person with a substantial
connection to, or substantial experience in, a regional area through business, industry or
community involvement;
prepare a report of the assessment; and
incorporate that report in the report that relates to the selection process.
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Item 13 - Section 80
Item 13 would insert a paragraph number (1) into section 80 of the Act. This is a minor
change that is consequential to the insertion of a second paragraph by item 16.
Item 14 - After paragraph 80(g)
Item 15 - At the end of section 80
Section 80 of the ABC Act sets out the matters to be included in the annual report that the
ABC is required to give to the Minister under section 46 of the Public Governance,
Performance and Accountability Act 2013. Items 14 and 15 would add new matters to be
included in ABC's future annual reports.
Item 14 would insert new paragraph 80(1)(h), which requires the Directors of the Board to
report on the particulars of any advice that the Board has received from the ABC Regional
Advisory Council during the reporting period.
Item 15 would insert five new paragraphs into section 80 which requires the Directors of the
Board to include in their annual report:
the total number of individuals employed by the ABC in regional areas at the end of the
period (proposed paragraph 80(1)(m));
the total number of employees employed by the ABC in metropolitan areas at the end of
the period (proposed paragraph 80(1)(n));
the ratio of employees employed by the ABC as journalists to support staff, in regional
areas (proposed paragraph 80(1)(o));
the ratio of employees employed by the ABC as journalists to support staff, in
metropolitan areas (proposed paragraph 80(1)(p)); and
the total number of hours of local or regional news bulletins broadcast on each
broadcasting service provided by the ABC in a regional area for the period (proposed
paragraph 80(1)(q)).
For the reporting items at proposed paragraphs 80(1)(m), (n), (o) and (p), it is expected that
the ABC would use the ordinary employment locality by reference to the definitions regional
area. Further, for the purposes of the above proposed reporting, the location of each
broadcasting service is a factual matter that should be able to be ascertained by the ABC by
reference to the definitions of regional area.
Item 15 would also insert a new subsection 80(2) that defines two key terms used in proposed
paragraphs 80(1)(o) and (p). The term "journalist" would mean an individual engaged in the
profession or practice of reporting for, photographing, videoing, editing, recording or making
any of the following forms of a news, current affairs, information or documentary character:
(a) television or radio programs; or
(b) datacasting content; or
(c) internet content;
The second term, "support staff", would mean any ABC staff that are not journalists.
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Part 2 - Application and transitional provisions
Item 16 - Application of amendments--annual report
Item 16 would provide that the amendments made by the Bill to section 80 of the ABC Act
relating to annual reporting, relating to metropolitan and regional matters (refer item 15) and
advice to the Board (item 14) would apply to annual reports that relate to a period that begins
after the commencement of this Bill. For example, if this Bill passes during the 2017-18
reporting period, the amendments would only take effect for the purposes of the annual report
for the following full reporting year, which would be 2018-19.
Item 17 - Transitional - tabling of statements
Subitem 17(1) sets out a transitional provision, appling immediately after the commencement
of the item, that if a person held office as a Chairperson and the Prime Minister is satisfied
that the person has substantial connection to, or substantial experience in, a rural or regional
area through business, industry or community involvement, the Prime Minister must prepare a
statement that outlines the person's particular connection or experience.
Subitem 17(1) sets out a similar transitional provision for ABC Directors. This requires that if
immediately after the commencement of the item, a person held office as a Director (other
than Chairperson), and the Minister is satisfied that the person has substantial connection to,
or substantial experience in, a regional area through business, industry or community
involvement, the Minister must prepare a statement that outlines the person's particular
connection or experience.
Under both subitems the statement must be tabled in each House of Parliament within 15
sitting days of the commencement of item 17.
These two transitional provisions are intended to provide that, in the event that less than two
of the members of the Board meet the requirements for regional representation, the next
scheduled process to appoint a new member will take into account the new regional
connection and experience requirement.
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