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Head of ABC and SBS review says viewers have 'no reason to worry'

By Michael Koziol

The economist appointed by the Turnbull government to head its review of the ABC and SBS has assured fans and viewers they have nothing to fear from his probe into the public broadcasters.

Robert Kerr, a retired competition tsar, will examine whether the networks are complying with the principle of "competitive neutrality" - that is, ensuring they do not enjoy advantages over commercial rivals purely because of their public ownership.

The inquiry is expected to deal with concerns raised by commercial publishers, including Fairfax Media, about the ABC's involvement in free online news, as well as its expenditure on promotion through Google.

ABC managing director Michelle Guthrie.

ABC managing director Michelle Guthrie. Credit: Peter Braig

The review was won by One Nation, fierce critics of the public broadcasters, in exchange for supporting the Turnbull government's liberalisation of media ownership rules.

Mr Kerr, who held a senior role at the Productivity Commission during the Howard years before heading Victoria's competition agency, said he had "no comment" on the origin of the inquiry.

But he promised to consult closely with the ABC and SBS and said loyal viewers had no reason to fear the broadcasters would be kneecapped as a result of his review.

"I guess I'd say have a look at the terms of reference - I don't see anything in there for that sort of worry," Mr Kerr told Fairfax Media following his appointment as head of the review.

Retired economist and competition tsar Robert Kerr is heading the ABC and SBS review.

Retired economist and competition tsar Robert Kerr is heading the ABC and SBS review.

"We’re just going to deal with the terms of reference exactly as they're put to us and people will have a chance to make their submissions.

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"If I read the terms of reference I wouldn’t see any reason for worry there."

Mr Kerr committed to publishing the submissions when possible - except for commercial-in-confidence material - so that the public could see the review had "substance and authenticity".

Communications Minister Mitch Fifield has also appointed to the review panel the ABC's former director of television Sandra Levy  and Walkley Award-winning journalist Julie Flynn, who was chief executive of industry body Free TV Australia for 15 years until 2016.

As well as the issue of competitive neutrality, Senator Fifield has said the review "probably would look at whether the ABC is acting within its charter". He has repeatedly described the inquiry as an opportunity to evaluate the ABC's claim that it complies with competitive neutrality and its charter against the claims of commercial organisations that it does not.

For example, Fairfax Media boss Greg Hywood has accused the ABC of "undermining" commercial rivals by expanding into the online news space. Mr Hywood and News Corp have also criticised the ABC for "using taxpayer money to drive traffic" by paying to boost its Google search results.

The ABC says it is simply giving its audiences what they expect and utilising standard marketing tools available to all.

Labor's communications spokeswoman Michelle Rowland has called the inquiry "insidious",  "potentially disastrous" and "code for cuts", citing One Nation leader Pauline Hanson's desire to strip "hundreds of millions" from the ABC's budget.

The broadcaster is also resisiting pressure to publish the names and salaries of its highest-paid staff - another One Nation demand - and now faces legislation forcing it to release that data.

Mr Kerr said he had no preconceptions about what the review would find. He observed that in general, there had not been many complaints about competitive neutrality breaches in Australia.

The retired economist, who is an honorary research fellow with the Brotherhood of St Laurence, also said he was cognisant of the need to treat the ABC and SBS as separate entities despite there being "some general principles that apply to both".

Under pressure: some recent problems facing the ABC

  • The broadcaster has been under fire over its agressive use of so-called 'search engine optimisation' to direct digital traffic to its online sites ahead of commercial rivals
  • At the request of One Nation, the government plans to force the ABC to reveal the salaries of its highest-paid staff
  • Critics say the ABC mishandled the discovery of secret government documents in the so-called Cabinet Files
  • Star economics correspondent Emma Alberici was criticised for her work on corporate tax minimisation. ABC bosses conceded mistakes had been made and put in place new quality control measures
  • An internal review concluded the ABC needs more stories on "hip pocket" and "human interest" issues
  • Managing director Michelle Guthrie is facing criticism from within for changes made at the broadcaster

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Original URL: https://www.smh.com.au/politics/federal/head-of-abc-and-sbs-review-says-viewers-have-no-reason-to-worry-20180330-p4z72f.html