David Hawker (Speaker) Share this | Link to this | Hansard source

Before the debate is resumed on this bill, I remind the House that it has been agreed that a general debate be allowed covering this bill and the Radio Licence Fees Amendment Bill 2007.

Simon Crean (Hotham, Australian Labor Party, Shadow Minister for Trade and Regional Development) Share this | Link to this | Hansard source

Before the adjournment last night, I was making the point that we support our going digital but arguing for our amendment to the second reading motion for the Broadcasting Legislation Amendment (Digitial Radio) Bill 2007 on the basis that the government does not have the framework right for us to do that. We see the need for the development of digital radio because it is an integral part of the digital media landscape. However, if we are to embrace it, it is essential that all Australians embrace it, not just those in the capital cities. Hence, the amendment we have moved seeks a deferral until we have established the means, technologies and framework for ensuring the coverage of this digital reach to the whole of Australia.

It is interesting that the Minister for Veterans’ Affairs, in the second reading speech, mouthed the words that this will be a technology and a platform available to the whole of the country. He talks about ‘equitable access to new services in broadcasting for people living in rural and remote’ areas of the country. However, the bill requires that digital be rolled out only for state capital cities and that this has to happen before 1 January 2009, but when it comes to the consideration of technology for the regions, that will not be completed until a review of appropriate technologies by 2011—in other words, a review up to three years later.

The reason we have moved the amendment, Mr Speaker—and you would be aware of it because you represent a rural community—is that we want to ensure that the technologies and platforms that are developed are compatible, that they extend to all the regions, that regions do not miss out or that they do not end up having to purchase more costly equipment because, on the basis of what the capital cities have rolled out, tuners and receivers are equipped to receive only what is appropriate for them and their technology but not what will subsequently be needed for the regions.

We know from the bill’s explanatory memorandum that the platform being talked of as being available for the cities is not appropriate for the regions. The bill establishes the problem; the explanatory memorandum confirms that the technology in question is not appropriate for the regions. That is why we do not quibble with the need to go digital; we are saying it has to be a digital reach for the whole of the country, not just for the capital cities.

I urge the regions and rural communities to agitate to ensure that they are not left behind. Quite frankly, this legislation can leave them behind. They should be aware of what is inherently involved in this legislation. They should look seriously at the amendment we have moved, which is asking for a deferral until such time as technologies are compatible, so that we can move forward for the whole of the country.

I said at the outset that we support going digital and we do that because it will help us meet the real challenges of an increased audience expectation. Digital radio is more efficient than analog, AM-FM, and more stations can be broadcast within the same spectrum. What will that mean? It will mean greater diversity, greater choice and greater competition when it comes to news, current affairs and entertainment. It will expand listener choices and this is critically important. As we all know, radio is the lifeblood of those who spend time in the regions. People spend a lot time in cars and at home. This is their connection, in many ways. It is about news and it is about connecting communities.

The digital approach also will provide better services with minimal interference and signal fading, better quality, described as ‘compact disc quality sound’ and much better reception. You will be able to tune into a radio station using its name only. You will be able to tune to programs on stronger frequencies when travelling. This is all terrific stuff. Whilst we welcome digital radio, it is essential that we get the framework for its introduction right. That means ensuring that people in capital cities and people in rural and regional Australia will have the same access.

We have had experience already with the regions being left behind the capital cities, and that is when it comes to broadband. Who has stepped in to propose the policy alternative? Labor, with its Broadband Connect. It has taken the view, because we have read the evidence, quite frankly, that the regions that already have access to fast-speed broadband over the internet are the regions that are going ahead. Those that do not have it are being left behind. Governments have to step in, either to address the market failure or by regulation, to ensure that the access and the platforms are available to them. This government has not done so in the case of broadband, and it is not doing so in relation to the spread of digital.

This bill does not adequately address the roll-out of the enhanced radio services to people in regional Australia. I will remind the House again of what is contained in our second reading amendment. In particular, I remind those members on the other side of the parliament who represent rural and regional Australians. We note in our second reading amendment that the Senate committee inquiry into the bill did not allow interested parties time to consider and draft submissions to the committee, and that this constraint did not allow for meaningful consultation. So this is another rushed job—a rushed job that is so typical of the way in which this government has moved forward.

The second reading amendment also notes that this has led to a lack of information as to how the omission of the digital radio mondiale—DRM—platform from the legislation will affect the roll-out of digital radio to rural and regional Australia, and notes that the legislation only specifies the use of the other platform, digital radio broadcasting, or DAB. So the legislation only specifies DAB. It does not talk about DRM. It defers that for later consideration. The government says it will look at that later, but why not look at it now? Why should we be taking precipitate decisions in the absence of knowledge about the technology and platforms that will enable us to take that regional opportunity?

Our second reading amendment also demands that the government make every endeavour to ensure that the standards are in place to enable the roll-out of digital radio to remote, rural and regional Australia. Many of these communities, as I said before, rely on radio, particularly the ABC. The bill’s explanatory memorandum notes that the success of the introduction of digital radio will depend on the take-up of the system by broadcasters and the public. We heard last night from the member for Moreton, who talked about radio broadcasters welcoming this bill. I notice he did not talk about what the ABC had to say about this. One would have thought, if we were talking about regional and rural Australia, that we would take some notice of what the national broadcaster has to say—a national broadcaster whose reach is almost 100 per cent throughout the whole of Australia, and which does provide a service for the totality of the country, not just for the capital cities of the country.

I remind the House what the ABC had to say about this matter. It made specific recommendations relating to the roll-out of digital radio to rural and regional Australia. The ABC has indicated that it believes the only technology being referred to in the legislation, the digital radio broadcasting, otherwise known as the Eureka 147 platform, will not adequately service rural, regional and remote areas. That is not what the Labor Party has said; that is what the ABC has said, in its submission to the Senate committee inquiry, yet this legislation is proceeding and the government is ignoring that advice. The DAB standard, the standard that is provided for in this legislation, was prescribed by the minister in October 2005 as the primary platform, but at the time it was also recognised that additional standards such as DRM were required to address regional and remote area coverage. Even the minister understands the deficiency of the platform being prescribed in this legislation.

The ABC went on to say that a wide-area digital radio standard should be determined before the provisions of the bill are put in place. In other words, the ABC is saying, ‘Defer this legislation until we get it right.’ That is what Labor is saying; that is what our amendment is saying. The bill omits the digital radio mondiale platform. The bill ignores the warnings and recommendations of the ABC. The ABC notes that, if DRM is ultimately adopted as the wide-area digital radio standard, it will be necessary for receiver manufacturers to produce multiformat devices that are able to receive both DAB and DRM, as well as AM and FM analog radio. But as the ABC notes, in the absence of a second digital radio standard for regional areas, there are no incentives for manufacturers to consider the need to develop multiformat receivers in their forward programming.

What is the result of that? It could be that, by the time a second digital radio standard is settled that can extend to the regions, digital tuners that are only able to receive DAB will be available for purchase. Where does that leave the people in the regions? Clearly, a better outcome all round would be for all digital tuners that are sold in Australia to be capable of receiving both standards. But this legislation will not provide that direction, guidance and incentive. That is why we say this should be deferred.

We are not trying to be prescriptive about the technologies the government should commit to, given that trials as to the best technology are being carried out; we are saying: ‘Let’s get it right. Let’s take the advice and let’s consider all the information that is available to us.’ But the government has to ensure that regional Australia does not miss out on this technology. Our fear is that rushing in haste to introduce this legislation will see them missing out. Why is the government rushing it? Why shouldn’t it be properly considering the submissions that are being made? There has not been enough consultation, not only in relation to the impact on rural and regional Australia. The report of the Senate Standing Committee on Environment, Communications, Information Technology and the Arts identifies a number of other problem areas, and there has not been sufficient time for those making the submissions to consider the department’s response to them because the department’s response to their concerns only came in last week. There were some 137 responses from the department, yet there has not been sufficient time to consider them at all.

We believe that all of Australia deserves the best available standards. We believe this bill is letting down regional Australia again. I do not know where the National Party stands these days, but if it is not standing up for regional Australia who does it represent? Why are they supporting the undue haste of this legislation? I say to the National Party, to the members who represent rural and regional Australians: support Labor’s amendment because we are looking after their interests and ensuring that the reach is available to them. We want digital but we want it for all Australians, not just for the capital cities, and our amendment, our deferral, will ensure that we get it right. (Time expired)

Pat Farmer (Macarthur, Liberal Party, Parliamentary Secretary to the Minister for Education, Science and Training) Share this | Link to this | Hansard source

You will find, during what I have to say in summing up this debate, that we have addressed a number of the concerns highlighted by the opposition. The Broadcasting Legislation Amendment (Digital Radio) Bill 2007 and the Radio Licence Fees Amendment Bill 2007 provide the Australian radio industry with a unique and important opportunity to commence digital radio services. Digitisation is a key strategic issue for radio, which is the last significant broadcasting platform to remain analog only. The Australian radio industry has lobbied strongly for the introduction of digital radio to enable it to respond to the opportunities and challenges that digital broadcasting presents. There is no doubt that digital radio has the potential to enhance the already high-quality radio services enjoyed by Australian radio listeners every day.

The opposition would have us delay the introduction of the new technology, and thereby deny the radio-listening public the opportunity of new and innovative digital radio services, until further consultation has occurred; yet a comprehensive process of consultation has already occurred in the development of this legislation with the full support and involvement of the Australian radio industry. In December 2004, the government initiated an intensive process of industry consultation, research and policy development to examine the most appropriate technology and framework for the introduction of digital radio in Australia. This process culminated in the release by the Minister for Communications, Information Technology and the Arts in October 2005 of a policy framework to guide the implementation of digital radio, which is now being implemented through this legislation. The government’s policy development process had the strong support and involvement of industry, and the framework was warmly received by major stakeholder groups when it was announced. The stakeholders have been further involved in the development of legislation to implement the framework through the release of an exposure draft of the bills prior to their introduction into parliament and through the inquiry of the Senate Standing Committee on Environment, Communications, Information Technology and the Arts.

Underpinned by this exhaustive policy development process, these bills provide a measured approach to the introduction of digital radio in this country, one that balances a range of complex objectives and constraints. Two of these are the scarcity of available spectrum for digital radio and the choice of digital radio technology. While there are a range of technology standards available for digital radio, it will be crucial that Australia adopt a standard that is widely deployed and for which there are a range of reasonably priced consumer receivers available. Equally importantly, this standard must be compatible with the radio frequency spectrum available for digital radio broadcasting in Australia. The bill provides for the introduction of services using the digital audio broadcasting, or DAB, standard. DAB is the most mature and developed of the terrestrial digital radio platforms, and its adoption in Australia has the full support of industry.

These DAB based digital radio services will be introduced in a progressive manner, with the first services to commence in the state capital cities by 1 January 2009. This progressive approach to service introduction reflects the view, supported by the international experience with this technology, that digital radio will supplement existing analog radio services for a considerable period and may never be a complete replacement. Contrary to the suggestions of the opposition, listeners outside the state capitals have not been overlooked. The legislation provides that regional markets will have an opportunity to commence DAB digital radio services dependent on the interest of relevant broadcasters in providing services. The commercial radio industry has publicly expressed considerable interest in providing DAB services in a number of large regional markets, and it is therefore reasonable to expect that digital radio services may commence in a number of these areas some time after 2009.

While DAB is the clear choice for the implementation of digital radio in Australia’s larger markets, it is acknowledged that the platform may be unable to replicate the extensive broadcast coverage of services in many of the regional markets, particularly AM services. Consideration will need to be given to whether the other technologies such as digital radio mondiale, or DRM, are better placed to address the audience needs of some of the regional areas.

While DRM has particular strengths in terms of its capacity to provide a very wide coverage service, it remains an underdeveloped technology, with affordable consumer sets only recently being produced in any meaningful numbers. There would be risks if Australia were to draft legislation to support the introduction of technology that is yet to achieve significant commercial support in overseas markets. This consideration, together with the view of digital radio as a supplementary technology, supports the conclusion that it would be premature for Australia to develop a detailed regulatory framework for alternative digital radio technologies at this time.

However, there would be a clear benefit in continuing the assessment of technology options for regional digital radio. This is consistent with the government’s stated commitment to ensuring equitable access to the new services in broadcasting for people living in rural, regional and remote Australia. To this end, the legislation provides for a statutory review by 1 January 2011 of technologies for the transmission of digital radio broadcasting services and restricted datacasting services in regional licence areas. This review will allow for the appropriate consideration of issues such as the availability of equipment for, and the coverage characteristics of, various digital radio technologies, as well as the types of services that could result from the use of those technologies in regional areas, and will thus allow for adjustments to the regulatory framework if necessary.

During the first phase of the introduction of DAB digital radio, it will be important to provide the commercial radio industry with an appropriate measure of stability and certainty as they roll out services. The legislation provides this with a six-year moratorium on the issue of new licence area planned commercial digital radio licences from the commencement of services in the respective markets.

However, the legislation also seeks to balance the stability provided to incumbent broadcasters with the requirement that they fully utilise the new platform. Each incumbent commercial radio broadcasting licensee will be obligated to commence a digital radio service and to continue to provide such a service for the duration of the moratorium. Failure by any licensee to meet this requirement will result in the licensee forfeiting their rights in digital and will require the regulator to issue a new digital commercial radio licence for the area concerned. This is an important obligation on the commercial broadcasters—a point that seems to have been missed by the opposition. It will ensure that the digital radio platform is fully utilised and allow appropriate commercial entry where an incumbent commercial broadcaster chooses not to provide a digital radio service.

In terms of transmitter licensing, the legislation provides incumbent broadcasters with the opportunity to own and operate the relevant licences, known as multiplex transmitter licences, that will provide their digital radio services. This is consistent with arrangements for analog radio and digital television where broadcasters manage the transmission of their services and control the associated spectrum.

The community broadcaster’s involvement in multiplex licensing and operations will be by way of a representative company formed and owned by community licensees in each market. This representative company will enable the relevant community broadcasters in a licence area to manage their collective involvement in digital radio—as provided for in the government’s announced policy framework—on an equitable and transparent basis. The government’s policy framework also provides the community sector with guaranteed access to capacity on the multiplex transmitter licences that will also provide the guaranteed access for digital radio services of the commercial broadcasters.

The legislation establishes a multiplex access regime to ensure efficient, open and generally non-discriminatory access to digital radio multiplexes and, in particular, rights for incumbent broadcasters to access multiplex capacity. In the case of the wide-coverage community radio broadcasting licensees, the legislation reserves two-ninths of the capacity of every foundation multiplex transmitter licence for the community broadcasters in a market to collectively use for digital radio. This provides the sector with an opportunity to participate in digital radio from the commencement of the first services. I would also like to note that the government has backed up this commitment to the community sector with federal budget funding of over $10 million to help community broadcasters establish digital radio infrastructure.

The government has also committed to funding the roll-out of infrastructure to support the delivery of digital radio services by the national broadcasters—the ABC and the SBS. Together, these initiatives will enable the sectors to participate with the commercial broadcasters in the commencement of digital radio services in the state capital cities on 1 January 2009. This is an excellent outcome for the introduction of digital radio in Australia and will support the successful establishment of the new platform. The implementation of digital radio overseas has highlighted that consumer take-up depends on the capacity for digital radio to offer more in terms of choice and quality of radio services.

In Australia, the national broadcasters play a vital role in the Australian radio market and are a critical source of service diversity, with their services highly valued by audiences across the country. Similarly, community radio is an established player in the radio broadcasting landscape, making a valuable contribution to the diversity of radio services. This funding package will ensure that the roles of the respective sectors are carried forward in the digital environment.

In terms of digital radio services, the legislation permits each of these sectors to provide any combination of text or still visual images as part of digital radio content or content in a form determined by the minister. This mechanism will allow careful consideration of any additional types of radio content, such as animation of moving image material, in the context of the broadcaster regulatory framework for broadcasting services and the experience of digital radio in Australia and internationally.

In addition, the legislation permits broadcasters to provide multiple digital radio services rather than a single stream of radio content, and there will be no requirement for broadcasters to simulcast their existing analog services in digital—although some broadcasters may choose to do so. These measures harness the potential of the DAB standard to expand the range of radio services in a spectrum-efficient manner, enabling broadcasters to provide a wide range of programming that is responsive to audience needs.

As the member for Moreton indicated, this is enabling legislation. It provides a framework for the industry to take forward and make good use of. Taken as a whole, the measures contained in this legislation cement radio’s important position in Australia’s media landscape, providing industry with the opportunity to invest in innovative new digital content and provide listeners with a rich and more diverse radio offering.

Harry Jenkins (Scullin, Australian Labor Party) Share this | Link to this | Hansard source

The original question was that this bill be now read a second time. To this the honourable member for Grayndler has moved as an amendment that all words after ‘That’ be omitted with a view to substituting other words. The immediate question is that the words proposed to be omitted stand part of the question.

Question agreed to.

Original question agreed to.

Bill read a second time.