Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

The Broadcasting Legislation Amendment (Digital Radio) Bill 2008 contains three amendments to the legislative arrangements supporting the introduction of digital radio services in Australia and is supported by the coalition. The coalition, when in government, provided the policy initiative and legislative framework to enable the introduction of digital radio in Australia. At that time, the Labor opposition were somewhat reluctant to support the digital future for radio, but we welcome their realisation of the potential of this technology.

Digital radio will provide significant benefits for Australian radio listeners and broadcasters. The coalition government announced in October 2005 the policy framework for the introduction of digital radio and, in May 2007, the parliament approved legislation, guided through this place by Senator Coonan, to implement the coalition’s policy framework for the introduction of digital radio services in Australia. That legislation provided amendments to the Broadcasting Services Act 1992, the Radiocommunications Act 1992 and the Trade Practices Act 1974 to enable the licensing, planning and regulation of digital radio services. It provided sufficient powers for the Australian Communications and Media Authority and the Australian Competition and Consumer Commission to undertake such activities.

In the 2007-08 budget, the coalition government delivered funding to enable the national and wide coverage community broadcasting stations to commence digital radio services in the six state capital markets by 1 January 2009. Under that budget, $2.7 million was committed over three years to enable ACMA to undertake necessary digital planning and licensing activities to allow for the introduction of digital radio services. So in government the coalition was committed to the introduction of digital radio and ensuring the appropriate legislative and financial support for digital radio.

The bill we are considering today provides three further changes to this framework. The bill extends the deadline for commercial broadcasters to commence digital radio services in the mainland state capital cities by six months to 1 July next year. That measure will of course provide further flexibility to broadcasters. While there have been no impediments for many of the commercial broadcasters in major capital cities, the extension of time will allow for any delays in transmission equipment and installation to be overcome. Importantly, the bill also removes the requirement for digital radio services to commence in Hobart by the extended deadline of 1 July next year. Hobart’s commercial radio broadcasters have expressed their strong concerns about the timeline for their operating market. So the amendment reclassifies Hobart as a regional licence carrier for the digital radio framework, allowing broadcasters in that city to have the opportunity to commence digital radio services at the same time as other markets of comparable size. Like other regional licence areas for digital radio, commencement will occur in Hobart at a date specified by the minister under the Broadcasting Services Act, and the coalition supports that measure.

The third measure of the bill will provide for the community broadcasting sector to participate in the ownership of transmission infrastructure. The amendment reflects the original policy intent of the coalition government’s previous legislation to allow the community radio sector to participate in the joint venture companies that manage the transmission of their services. The community radio sector was unable to claim a share in joint venture companies that were formed to bid for multiplex licences and own digital radio transmission infrastructure due to the government deferring the requisite funding. This is acknowledged in the second reading speech of the bill as a reason for this particular amendment. The coalition government was committed to providing the financial support for the national and community broadcasters to participate in the initial phase of digital radio. The Community Broadcasting Association of Australia is optimistic, and we hope this optimism is not ill-founded, that the Labor government will provide funding in the 2009-10 budget context to facilitate that participation. It was disappointing that the Labor government failed to provide certainty in the budget context for community broadcasters this year, and the coalition calls on the government to meet their commitment to community broadcasters as soon as possible.

On behalf of the coalition, I want to thank the members and the staff of the Senate Standing Committee on the Environment, Communications and the Arts for their work in conducting a short but important and useful inquiry into this bill. The coalition looks forward to the opportunities for broadcasters and listeners that will result from the transition to digital radio and commends the bill to the Senate.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

I seek leave to incorporate remarks by Senator Ludlam on the Broadcasting Legislation Amendment (Digital Radio) Bill 2008.

Leave granted.

Scott Ludlam (WA, Australian Greens) Share this | Link to this | Hansard source

The incorporated speech read as follows

The Broadcasting Legislation Amendment (Digital Radio) Bill is a positive step in response to the needs of the radio industry as it makes its transition to the digital broadcasting - the Greens are in support of this action.

The Greens particularly support the provisions in this legislation that extends the opportunity for the community radio sector to become shareholders in the Joint Venture Companies that will administer the multiplex licenses they will use on the digital spectrum.

Including community radio broadcasters in the Joint Venture companies goes towards ensuring the viability of the stations and the sector, for although the sector has been guaranteed access to the digital spectrum, giving them the option of buying into the JV will provide them with a seat at the decision making table.

The commercial broadcasters have expressed some concern over what they see as government intervention in the running of a private company. However, I reject this notion, as the amendment is simply the provision of a time extension for an existing arrangement, and in no way changes the intention of the original legislation.

The Greens commend the government for taking action to respond to the needs of the radio industry as it transitions to digital and I thank the Community Broadcasting Association of Australia and the Commercial Radio Australia for participating in Committees process in the passage of this legislation.

I also note that financial limitations on community broadcasters continues to exist and could still result in the community radio broadcasters being unable to buy into Joint Ventures, even with the time extension being granted.

The committee report states that “these financial constraints should be taken into account in managing the transition to digital broadcasting”.

We need the Government to factor this in as the transition to digital broadcasting progresses for both the radio and television media.

In order to not merely hang on at the margins of the digital switchover but actually thrive in this new media environment, it is essential that the Government properly resource the sector, and I look forward to working with the Communications Minister as this process unfolds.

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

in reply—In concluding the second reading debate on this important legislation, the Broadcasting Legislation Amendment (Digital Radio) Bill 2008, I thank Senator Minchin for his remarks and also Senator Ludlam for the remarks that he has made which are to be incorporated into the Hansard. I could make a very long speech in response on this matter—

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Given that you know so much about digital radio!

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

It is funny you should say that, Senator Minchin, because you are right. I am aware that digital radio will launch in 2009. I am aware that it will operate alongside existing analog services and that it promises a range of new and innovative features that will enhance the radio services so valued by Australians.

As Senator Minchin has encouraged me to speak about this important issue, I thought I would indicate to the Senate that the first two amendments in the bill relate to the commencement date for digital radio in the six state capital cities—as Senator Minchin would be aware. Under current legislation, commercial radio broadcasters in these markets are required to commence digital radio services by 1 January 2009. Failure to do so could expose them to sanctions, including the cancellation of their right to broadcast in digital. I can say to the Senate and, through you, Madam Acting Deputy President, particularly to Senator Minchin, that, due to a range of reasons, including delays to the rollout of transmission equipment, broadcasters are unable to comply with this deadline. As a result, the commercial radio sector and the ABC recently announced that the national switch-on for digital radio will take place on 1 May 2009. Accordingly, the bill will extend by six months the deadline for start-up to 1 July 2009. Senators would be aware that this will ensure broadcasters are not in breach of current provisions for late commencement, including the cancellation of their right to broadcast in digital.

The bill will also remove Hobart from the list of markets subject to the new deadline. After consultation with Hobart’s commercial broadcasters, who expressed strong concerns about their readiness to launch at the same time as the mainland state capitals, the bill will allow digital radio services to start in Hobart at the same time as other similarly sized markets, such as Newcastle, Geelong and Wollongong.

Perhaps I could now turn, particularly for the interest of Senator Minchin, to the final measure in the bill. This measure amends the Radiocommunications Act 1992 and extends to the community broadcasting sector, which Senator Minchin dealt with in his informative speech in the second reading debate, the opportunity to participate in the joint venture companies formed in 2008 that own digital radio transmission infrastructure, in line with the original intent of the legislation introduced in May last year. The government is supportive of the community broadcasters participation in digital radio, recognising the vital role the community sector plays in providing diversity, localism and grassroots participation in the Australian media. The benefits of digital radio to both broadcasters and listeners are enormous and the government looks forward to a successful launch of Australia’s first digital radio services on 1 May 2009.

In conclusion, I ought to acknowledge the presence in the chamber of Senator Conroy, the minister who knows more about this issue than either I or Senator Minchin. I am very pleased that Senator Conroy has listened to this debate as closely as he has. I commend this important legislation to the Senate.

Question agreed to.

Bill read a second time.