Senate debates

Tuesday, 7 February 2006

Questions without Notice

Telecommunications

2:57 pm

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Hansard source

I thank Senator McLucas for the question. What I have in fact said is that I will be releasing a position paper that will develop some options for consideration of how the diversity test and the cross-media and foreign ownership changes will work. The five-four test that I talked about in the Press Club address to which Senator McLucas refers does place a very clear floor under the level of ownership concentration that could take place within the regulated media categories—that is, commercial television and radio and associated newspapers. While it sets a floor in relation to cross-media limits, it certainly does not mean that the market will necessarily move to that floor.

I am very glad that Senator McLucas raises regional markets. But, first of all, I should say that in Sydney and Melbourne the limit on ownership of commercial radio licences to two per licence area, which is not proposed to change, means that the theoretical minimum of five set by the diversity test could not be reached in any event, because the effect of this would be a minimum of six separate groups. As you can see, it is quite a complex proposal, Senator McLucas, but in many regional markets the number of independent media groups is already at or below four and hence no further consolidation would be permitted under this approach.

In addition, ACMA, under the proposal, would have the task of ensuring that the ‘minimum voices’ requirement is approved, and of course any movement whatsoever would also be subject to the general competition principles that are to be administered by the ACCC. As Senator McLucas would be able to glean from this, it is not just a matter of providing a minimum limit and letting it rip; there will be significant safeguards, if indeed this is the proposal that the government adopts.

In addition, Australians would continue to have access to a large number of other sources of news, opinion and entertainment. As we all know, we are all able to get opinions of great diversity from now hundreds if not thousands of different sources, often unmediated by any local media group. So new technology and new opportunities mean that we can look very critically at what will continue to deliver diversity and choice to consumers when the media changes proceed.

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