Jobs, content go, but ABC boss David Anderson’s five-year plan falls short of federal review

Despite axing 250 jobs, ABC Life, its comedy channel and 7.45am radio news, the ABC fails to implement key recommendations.

Ita Buttrose, chair of ABC and David Anderson, managing director of ABC. Picture: ABC

The ABC’s new five-year strategic plan has failed to implement several key recommendations of the long-awaited efficiency review into Australia’s public broadcasters, which has also just been unveiled.

After more than 18 months, federal bureaucrats today finally pulled back the curtain on the 100-page efficiency review into the ABC and SBS, which was conducted by former Foxtel boss Peter Tonagh and former media regulator Richard Bean.

The report — the subject of repeated freedom-of-information requests, which were consistently rejected on the basis that the report contained commercial-in-confidence material that was informing the ABC’s now public long-term blueprint — called on the ABC, led by managing director David Anderson, to halve its TV channels from four to two.

The Tonagh review, among a list of 16 recommendations, also urged the ABC to collaborate more closely with its sibling public broadcaster SBS, including opportunities to share support, back office and property services, as well as broadcast facilities and digital delivery platforms.

None of these formed part of Mr Anderson’s almost 50-page strategic plan.

“Assuming ongoing funding constraints, it is unlikely that incremental efficiency improvements will be sufficient to achieve (the ABC’s and SBS’s objectives) — more profound changes are required,” the efficiency review said.

The report was first commissioned by the then Turnbull government in 2018.

“The changes proposed are not ‘business as usual’ and they will not be simple to implement,” the review says.

“However, incremental change will not be sufficient.”

Under the strategic plan, the ABC will dump its controversial lifestyle website ABC Life and television comedy channel, as part of the public broadcaster’s new five-year blueprint, which includes 250 job losses.

In addition, the broadcaster will axe the 7.45am broadcast-only radio news bulletin and cut independent production by about $5m annually, primarily from the factual and entertainment slate.

The 7:45am news theme is a part of Australia's media history.

A very sad day. pic.twitter.com/02zsM6XNCA

— Matthew Doran (@MattDoran91) June 24, 2020

ABC chair Ita Buttrose said the new five-year plan, which will help plug an $84m budget hole, is a “robust blueprint for the future of the ABC that emphasises the important role the ABC plays in the Australian way of life.”

Mr Anderson said the changes “ensure the ABC can enhance its value to all Australians now and into the future”.

“However, we anticipate we will farewell as many as 250 people through this process, valued colleagues who have made tremendous contributions to the ABC and to our audiences,“ Mr Anderson, said in a statement.

The changes follow increasing criticism that the ABC, which receives $1bn annually from the federal government, is out of touch with the wider community, with its left-wing bias and selective coverage.

Employees already being told of redundancy

Mr Anderson struck immediately to axe 250 workers from the national broadcaster.

In a waste-no-time approach to job cuts, Mr Anderson told staff at a lunchtime briefing that management had today begun informing employees of their redundancy from the government organisation.

“This is a difficult time for everyone,” Mr Anderson, who has led the group since September 2018, said.

“But the changes we have announced today are necessary to ensure the continuation of the essential services we provide in an increasingly challenging global media market.”

Mr Anderson told his staff that a formal expression of interest process in divisions that would be worst hit by the savage cuts, that is where there are likely to be at least ten redundancies, would also begin today.

“While change is always difficult, especially for those directly affected, I’m sure you all agree that we want this great institution to be relevant, valued and trusted by future generations,” he said.

The ABC a fortnight ago made a first call for expressions of interest from staff interested in being made redundant.

“Following the completion of the second EOI process in a fortnight, we will commence further consultation with staff and unions,” Mr Anderson said.

“We anticipate we may farewell as many as 250 people through this process, valued colleagues who have made tremendous contributions to the ABC,” he told staff.

“After consultation, those who are leaving do so with our thanks and best wishes for the future.”

ABC staff will be further briefed on the five-year plan by their divisional directors today at 3.30pm.

Mr Anderson is scheduled to appear on his ABC News 24 outlet this afternoon at 4.30pm to further discuss his vision for the organisation.

The Australian understands the interview has been pre recorded, rather than being broadcast live.

His only other interview will be on Thursday morning on ABC News Breakfast, hosted by Lisa Millar and Michael Rowland.

Job cuts ‘inevitable’

Mr Anderson told The Australian last October that job cuts were inevitable as he looked to extend the broadcaster’s focus beyond the inner cities to suburban and rural Australia.

The broadcaster said ABC Life, which is set to cost about $3m this financial year, will operate under “a new editorial direction and name, ABC Local. The new website will source content from across the ABC, including outer suburban and regional areas.

It will also rebrand ABC Comedy to “create a home for a range of genres”, including arts, science, education and religion. Comedy will continue to be commissioned for ABC‘s main channel and streaming platform iview.

The ABC has also slashed travel budgets by 25 per cent, “with a greater reliance on technology to connect the workforce”.

The ABC has also flagged that some staff could be pushed out of the cities, as part of its pledge focus on the wider community.

More than three months after Communications Minister Paul Fletcher urged the ABC to consider offloading its offices in the capital cities, the ABC said a review its property portfolio, which includes its $330m Sydney headquarters in Ultimo, will consider options to “either improve accommodation, lease vacant space or relocate if it is more beneficial.

Leasing spare space at Ultimo could potentially save $4m annually, which in turn may be reinvested in services.

“Increased investment in regional centres reflects another important commitment in the five-year plan and will see 75 per cent of content-makers working outside the Ultimo headquarters by 2025, ensuring greater engagement with local communities,” the ABC said.

Most of the ABC’s near 3280 workforce was in NSW. It had 1696 staff there, with 495 in Victoria and 333 in Queensland, according to the broadcaster’s 2019 annual report.

The broadcaster said the changes are on top of reduced numbers in management and support teams. It has also identified savings of more than 2 per cent through current vacancies, redundancies and reducing operating costs.

A string of media companies, including Nine Entertainment, Seven West Media, Bauer Media, News Corp Australia, publisher of The Australian, have already cut jobs and costs following a double digit drop in advertising revenue during the coronavirus crisis.

The industry, which was facing soft ad revenue before COVID-19, has also seen regional and local newspapers axed, and many newspaper sections and magazines temporarily suspended.

ABC staff have waited several months for the new five-year plan to be announced after its release was postponed mid-March because of the coronavirus pandemic. Mr Anderson was originally looking to deliver the plan at the end of March.

The much-anticipated document comes amid the Morrison Government’s funding freeze and the need for Mr Anderson and Ms Buttrose to plug an $84 million budget hole.

The strategic plan includes 250 job losses, with the board also set to take a 10 per cent cut in its pay for six months to the end of this year.

Overall this is expected to cost the nine board members little more than $33,000.

For Ms Buttrose it will mean an effective pay cut of just $8700 based on her annual salary of $174,690.