Federal budget 2018: Guthrie vows to oppose ABC indexation freeze

Michelle Guthrie has vowed to oppose ABC cuts, in her most combative comments yet towards the government.

ABC managing director Michelle Guthrie has vowed to “oppose” a freeze on the ABC’s annual funding indexation and seek to “reverse the cuts in the coming months” in her most combative comments directed towards the government since she took the top job two years ago this month.

Crucially, the ABC will continue to be exempt from the government-wide efficiency dividend, and the organisation’s base operational funding will be maintained at 2018-19 levels, resulting in $3.16 billion in funding from the Australian taxpayer over the 2019-20 to 2021-22 period.

The government, however, will pause indexation of the ABC’s operational funding in the next triennium to ensure the ABC continues to find back office efficiencies.

This will result in savings to the budget of $83.7 million over three years from 2019-20 to 2021-22, the government said.

In her first two years in the role, Guthrie has sought to avoid stoking tensions with the government, but she hit out at the changes in an email to staff tonight obtained by The Australian.

“Let me be frank with you: I am very disappointed and concerned that after the measures we have introduced in recent years to deliver better and more efficient services, the government has now seen fit to deliver what amounts to a further substantial budget cut,” Guthrie wrote.

She told staff the decision will make it “very difficult for the ABC to meet its charter requirements and audience expectations” and said the national broadcaster has made strides in its output across public interest journalism, breaking news coverage, regional issues, drama, comedy and children’s content.

“Unfortunately, the government has overlooked this contribution and the trust and value more than 80 per cent of Australians place in us as an independent national broadcaster,” Guthrie said.

“We will continue to oppose the decision and seek every opportunity to reverse the cuts in the coming months before they take effect.”

After the ABC and SBS underwent the Lewis review into their efficiency in 2014, the government said it believes further back office efficiencies can now be found.

“A further review of ABC and SBS efficiencies will be undertaken and will report later this year to assist the ABC in meeting this saving”, the office of Communications Minister Mitch Fifield said.

Of the overall package, Senator Fifield’s office said: “These budget commitments will provide additional support for Australians online, boost our international reputation and continue to preserve our valuable cultural heritage.”

Additionally the government said it will provide a total of $14.6 million in funding to SBS over two years from 2018-19 to replace revenue that could not be raised from legislation that was not passed by the parliament.

In a statement, SBS welcomed the extra funding: “This funding relates to the funding reduction SBS received in 2015 when it was expected that the SBS Advertising Flexibility Bill would give the organisation the opportunity to generate further additional own-source revenue, which has now been withdrawn.”

In relation to the review, SBS said it had no comment to make, and will wait to “examine the terms of reference for the review when they are released”.