LETTER TO ABC Board

24.3.00 to Donald McDonald, Chairman ABC Board

ABC Telstra Deal

Friends of the ABC is seriously concerned that ABC efforts to earn revenue from the commercial sector, such as the ABC-Telstra deal revealed recently in the print media, will compromise the ABC's independence.

Australians depend on the independence of their national broadcaster. It is in the public's interest that the ABC is able to report fully, without fear or favour, on the activities of powerful companies, such as Telstra which provides an important service to our community.

ABC independence depends on its separation from government and private business interests. The truth of this does not change simply because the medium for delivering the information is different. ABC Online is an integrated part of the ABC, according to the 'One ABC' concept. It draws from and feeds back into radio and television operations, and is just as significant a vehicle for information, education and entertainment. Clearly, Online must be afforded the same protection from commercial influence as ABC radio and television.

It has been claimed that the ABC's editorial guidelines provide protection when entering into business agreements. However, commercial reality is that companies pay for a service in expectation that they will have some influence on what is produced. In practice, it would simply not be possible for the arm of the ABC which produces material to be unaffected by the arm of the ABC which negotiates to sell it commercially, and the head which needs to ensure the corporation's financial survival.

There are serious problems which arise from the ABC seeking to replace declining government funds with income from the business sector:

  • Income from commercial sources will inevitably influence ABC programming. And what of the pressure to compromise its news services and other programming, as the ABC comes to depend on a commercial cash flow?
  • In the current political climate, raising funds from alternative sources will enable government to withdraw further from its responsibility to fund the national broadcaster. As the major feature which distinguishes the ABC from commercial broadcasters - its independence - is eroded, a future government may even question why government needs to fund the ABC at all.
  • Independence can only be assured when there is transparency of operations. Doing business with private companies - with the inevitable cover of 'commercial-in-confidence' - prohibits the level of public scrutiny required to ensure ABC independence is maintained. The public cannot be expected to have confidence in ABC management assurances that the ABC-Telstra deal, for example, will not compromise the ABC's independence, when the ABC refuses to makes the proposed contract available for public scrutiny.

The ABC was established to be independent, free from commercial pressure, and to provide services distinct from commercial broadcasters. The integrity of our national broadcaster depends on its independence. Time and again the Australian public has expressed its support for the independence of its national public broadcaster. The community does not want deals which are effectively backdoor sponsorship. It does not want the ABC commercialised by stealth.

The ABC's independence is too important to risk. Friends of the ABC strongly urges the ABC Board not to proceed with the proposed deal with Telstra which we believe has the potential to undermine ABC independence. Given the secretive nature of such commercial transactions, FABC believes that the ABC should not proceed with any contracts for the sale of ABC online content until there has been consultation with the community and the issues surrounding this matter have been fully considered by the Senate Committee Inquiry into ABC Material Online.

ABC independence can only be guaranteed if the ABC is fully funded by government. As caretaker of a major institution in Australian life, the ABC Board has a responsibility to take up the real issue from which the ABC's need for funds arises - adequate government funding. In doing this, it will have the overwhelming support of the community. We look forward to receiving your response to the matters we have raised.

Yours sincerely

Alison Clifford
National Spokesperson

Friends of the ABC's submission to the
Parliamentary Inquiry into ABC Material Online

 

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