ABC warns ‘tough decisions’ will need to be made on staffing and services in wake of budget

Mitch Fifield says the ABC has greater funding certainty than any other Australian media organisation.

Acting ABC managing director David Anderson. Picture: John Feder

Communications Minister Mitch Fifield says the ABC has greater funding certainty than any other media organisation in the country after the public broadcaster’s acting boss David Anderson warned that “tough decisions” will need to be made on staffing and services in the wake of the budget.

The ABC will receive $3.2 billion over the next triennium, which includes $43.7 million to continue the Enhanced News measure, supporting local news and current affairs, Minister Fifield said.

“All Commonwealth entities should continually work to be the best and most efficient steward of taxpayer dollars,” he told The Australian.

Mr Anderson issued the warning after the Morrison government refused to meet the broadcaster’s demand to restore funding that was stripped in last year’s budget.

Mr Anderson, who took charge following the axing of Michelle Guthrie last year in September, wrote to staff about the implications of Tuesday’s budget, which locked in the loss of $83.7 million in funding following a freeze on indexation of its $1 billion annual taxpayer funding.

He welcomed the government’s commitment to extend $43.7 million to help fund the ABC’s rural and regional journalism for the next three years.

“On the negative side, despite extensive requests from the ABC, the budget papers have locked in the $83.7 million pause in indexation funding flagged in last year’s budget,” Mr Anderson said in his message to staff, which was posted on the ABC’s website.

“This is on top of the $254 million the ABC has had to absorb in efficiency cuts over the past five years.”

The cut will take effect from July 1, resulting in a $14.6 million hit to the 2019-20 financial budget, Mr Anderson said.

“Given our tight fiscal envelope, meeting the costs will have to involve tough decisions on staffing and services.

“Our commitment is to consult with staff in considering options. I will keep you informed on this front,” he said.

ABC had 4,939 staff as of June 2018, of which 3,523 were content makers, according to its 2018 annual report.

Labor has committed to restoring the $83.7 million funding cut and guaranteed funding stability over the next budget cycle.

Poor Ita Buttrose. She’s just taken statutory responsibility for the ABC and her first job is to cut programs and retrench staff to accommodate ⁦@SenatorFifield⁩ ‘s $83.7m punitive funding from July 1. No relief in 2019 budget. pic.twitter.com/eDJUAJYzKa

— Quentin Dempster (@QuentinDempster) April 3, 2019

Mr Anderson, who has risen through the ABC ranks over the past three decades, has publicly declared that he wants the top job permanently.

Applications for role closed on March 1, just weeks after Ita Buttrose was appointed chairwoman of the ABC by Prime Minister Scott Morrison.

Prime Minister Scott Morrison and ABC chair Ita Buttrose.