Fifield close to media reform breakthrough with crossbench

A breakthrough on the media reform bill deadlock could be announced as early as today after weekend negotiations.

Minister for Communications Mitch Fifield is close to a breakthrough.

A breakthrough on the media reform bill deadlock could be announced as early as today after a series of tense conference calls over the weekend that has seen the historic package go down to the wire.

A compromise appears to be within touching distance as the Nick Xenophon Team thrashed out a deal with Communications and Arts Minister Mitch Fifield to provide new funding for small and regional news organisations.

Senator Fifield was locked in talks with the NXT late last night over the scheme. The government has scheduled the media reform bill for debate today.

In a statement sent to Media, Senator Fifield struck an optimistic note on negotiations that marked a distinct shift in tone from more cautious recent comments.

“I have had a number of positive conversations with crossbench colleagues over recent days. I am hopeful that agreement can be reached to enable passage of this vital legislation this week,” Senator Fifield said.

“All crossbench colleagues have shown a willingness to engage constructively and seek solutions. Meanwhile Bill Shorten’s Labor sits on the sidelines and shrugs off the entire media industry’s concern for the thousands of Australians they employ.”

Senator Xenophon was unavailable for comment last night.

The Turnbull government is facing one of its biggest tests to date as Senator Fifield relies on support from a range of politicians on the Senate crossbench.

Without Labor’s support, Senator Fifield will need the support of four One Nation senators and crossbenchers David Leyonhjelm, Cory Bernardi and Derryn Hinch, all of who have said they will vote for the removal of laws originally designed for a pre-internet era.

Although the Greens this month tentatively returned to the negotiating table with the government to legislate its package, Greens communications spokeswoman Sarah Hanson-Young said the party continued to oppose the changes.

“The ball is in the government’s court,” she said last night.

“The Greens have been clear with the minister that we want more media diversity and Australian content and more support for the ABC and SBS. A better deal for our local journalists and our public broadcasters is vital,” Senator Hanson-Young said.

While specific details of the revised initiative remain unclear, negotiations broke down last month when Senator Fifield rejected Senator Xenophon’s original tax breaks proposal.

There were concerns it could inadvertently benefit foreign multinational organisations and unnecessarily intervene in commercial media, with the Liberal partyroom knocking back the scheme as unworkable.

After a tough profit season, corporate chiefs in the media sector are waiting anxiously for the laws to be changed to enable operators to reconfigure themselves in a landscape upended and reshaped by tech giants like Facebook, Google, Netflix and Amazon.

Such is the pace of change and the increasing dominance of Facebook and Google in the online advertising market that the package won unanimous industry backing for the first time. Senator Xenophon’s latest proposal is designed to give smaller entities an extra boost before any recommendations from an Australian Competition & Consumer Commission probe into the devastating impact of Facebook and Google on journalism come into effect.

Senate Xenophon’s communications spokesman, Stirling Griff, said the new package was “very well thought-out” and “balanced”.

“I’d be very surprised if they didn’t see the value in it during that interim period,” he said, predicting there could be benefits from the ACCC inquiry.

The government has already reached in-principle agreement with the NXT on the ACCC inquiry, a review into the reach of Australian broadcasting services in the Asia-Pacific, moves to enhance local content in smaller regional markets, and more time for community TV to transition to an internet-based distribution model.

Prior to this, Senator Xenophon won support for a ban on gambling ads during sports broadcasts.

Senator Xenophon has insisted on measures for smaller outlets to counterbalance the removal of the two-out-of-three ownership rule, which would be repealed if the package is passed.