Mitch Fifield (Victoria, Liberal Party, Minister for Communications and the Arts) Share this | Hansard source

I seek leave to make a statement of not more than 10 minutes.

Leave granted.

It has been a difficult few weeks for the ABC, but its important work continues. The ABC is one of the important underpinnings of media diversity in Australia. The ABC represents a significant community contribution to civic journalism. It is important for the community to have confidence in the ABC and its independence.

Firstly, I would like to address the claims that the government has sought to undermine the ABC's independence through its budget, through reviews and through board appointments. All these claims are without basis. The ABC receives, and will continue to receive, more than a billion dollars a year. The ABC enjoys greater funding certainty than any other media organisation in Australia. It is well resourced and will continue to be. While it is correct that an indexation pause was foreshadowed in the last budget to be applied in the next triennium, it is modest and paired with an efficiency review. This represents good practice in what is a fast-evolving media environment. And it is appropriate that all Commonwealth agencies look to ensure that they are the best possible stewards of taxpayer dollars. This should be an uncontroversial proposition. Further, due to the changing media environment, a number of media organisations have posed questions about areas of public broadcaster activity that are often debated between commercial and public media. To provide a forum for these matters to be canvassed, the government established a competitive neutrality inquiry.

Finally, to the issue of board appointments: legislation provides for an independent panel process to be initiated for each board vacancy. This has occurred on each occasion. The relevant legislation also provides for appointments to be made apart from the panel recommendations. On some occasions, the government has appointed from the panel list; on others, it has made alternative appointments. Both parts are provided for in the legislation. All appointments have followed the legislated requirements: decisions have been taken by cabinet and appointments made by the Federal Executive Council. Contrary to some media reports, the former chair was chosen from the list of recommended names provided by the independent panel. At the time, the acting shadow minister for communications, Mr Dreyfus, said: 'Labor congratulates Justin Milne on his appointment as the new chair of the ABC. Mr Milne is certainly qualified for the role, given his extensive experience in and knowledge of the media industry.'

Now to more recent events in relation to the former managing director and the former chair: I should acknowledge that I had a professional relationship with both the former chair and the former managing director. I have always respected the legislated independence of the ABC and its board and management. As a consequence of the ABC's unique legislated standing and independence within my portfolio, I have not engaged with the chairs or managing directors of the ABC as frequently or as closely as is the case with other portfolio bodies. But I do want to be very clear and transparent about those occasions which relate to recent matters. The then chair spoke to me in Canberra on 12 September to advise that the board no longer believed the managing director was best placed to lead the organisation. He further advised that he would be conveying this to the managing director on behalf of the board the following day and, although not sure where this matter would land, he hoped that a mutually agreeable path could be found. I indicated to the chair that I respected the managing director's position was, under the legislation, a matter for the board. Given the uncertainty as to how this would conclude, and out of respect for the privacy of the managing director, I undertook not to further convey that information at that time. The former chair undertook to keep me apprised. I spoke to the chair a few days later, who advised that discussions with the managing director were ongoing. No further detail was provided. The former chair made contact with me on the evening of Sunday, 23 September to advise that the board had just met and had resolved to terminate the tenure of the managing director effective the following morning. Shortly afterwards, I advised the Prime Minister.

I should reiterate that the ABC board has legislated independence in management appointments and this decision was entirely a matter for the board of the ABC. This independence and the right of the board was recognised by me in a statement on Monday, 24 September, but also by the shadow minister on the same day, where she said:

Labor acknowledges the independent decision of the board in relation to the departure of Michelle Guthrie as managing director.

On 26 September, the Sydney Morning Herald reported that there had allegedly been an email exchange between the former chair and the former managing director in relation to the tenure of Ms Alberici. This report raised questions in relation to the independence of the ABC. In the course of the day I met with the Prime Minister, where I proposed, and it was agreed, that the secretary of the department of communications undertake an inquiry to establish the facts. Subsequent media reports, including in The Daily Telegraph the following day regarding Mr Probyn, also fell within the purview of the secretary's inquiry.

Let me be clear: prior to these media reports, I was not aware of the allegations of encounters between the former managing director and the former chair in relation to staffing matters. It is indicated by a statement on 26 September, and in a doorstop the following day, that I have never in any way, shape or form sought to involve myself in staffing matters, nor am I aware of any current or former member of the government seeking to do so.

I contacted the former chair on the afternoon of 26 September to advise that the secretary would be undertaking an inquiry to establish the facts. I issued a statement to that effect. The following morning, on 27 September, the chair advised me that he would be resigning. This was the appropriate decision by the former chair. It is important that individual board members not only uphold the independence but are seen to uphold the independence of the ABC. On 28 September the federal Executive Council appointed Dr Kirstin Ferguson as deputy chair. As a consequence, she serves as acting chair until the appointment of a substantive chair.

On 4 October the ABC board issued a statement which said:

To clarify various media reports, the Board received a letter from the former Managing Director late on Friday 21 September 2018. In that letter, Ms Guthrie responded to several issues that the Board raised with her. In addition, the former Managing Director raised other matters that she requested the Board investigate on a confidential basis.

The Board resolved on Sunday 23 September 2018 to appoint an external, independent expert advisor to investigate these matters.

On Thursday, 11 October, I received the report from the inquiry undertaken by the secretary of the department of communications. This report states that both the former chair and the former managing director advised the inquiry that, 'There was no request or suggestion by the former Prime Minister or any government minister to terminate the employment of a journalist or ABC staff member.'

Following receipt of the secretary's report, I have written to the acting chair conveying a copy of the report, suggesting that it be provided to the independent external review to assist their work. I have also sought the advice of the board as to the scope and time frames of the external independent expert adviser's investigation. In addition, I sought from the board their assurance that they have acted at all times to uphold the independence and integrity of the organisation. When I have further advice, I will convey it to the Senate. I table a copy of my statement, a copy of the report of the secretary and a copy of my correspondence to the acting chair of the ABC board.