Labor opposes media law threat to local news

LABOR is hardening its position against Malcolm Turnbull’s media reforms out of concern over threats to local TV news.

LABOR is hardening its position against Malcolm Turnbull’s media reforms out of concern over threats to local TV news, heightening pressure on the Communications Minister to explain the proposals as he sets out a timetable for change.

Casting new doubts over the reforms, Labor caucus members warned against sweeping mergers between city and country television networks if Mr Turnbull acted on his ideas. The Labor response escalates the political risks for the Coalition in pursuing changes that could be vetoed in the Senate and challenges industry assumptions that the opposition might back some of the amendments.

Tony Abbott voiced his support yesterday for scrapping media ownership rules but he also warned that any changes would need the “broad consensus” of the industry to be feasible.

Mr Turnbull has sparked a debate on media reform by declaring he was “very sympathetic” to removing an audience reach rule that prevents Nine Entertainment, Seven West Media and the Ten Network owning regional affiliates.

He has also backed industry arguments for the repeal of laws that prevent anyone owning two of the three traditional outlets — TV, radio and print — in the one market, as the internet steps up diversity and competition.

Labor will not take a final position on the ideas until the government outlines its full package of changes, as Bill Shorten and his colleagues seek to put the onus on Mr Turnbull to flesh out his proposals.

The Australian has learned of a provisional timetable within the government to canvass the reforms over the next few months, decide on them in the middle of the year and seek to legislate them in September.

Opposition communications spokesman Jason Clare has spoken to media companies about the ideas but said on Monday he would not confirm a position until he saw the details of the government plan.

Caucus members are moving to head off the changes, however, out of concern at the concentration in media ownership and the potential loss of regional news if city and country networks merge.

“We’ve already got some of the most concentrated media in the world and there’d be very angry constituents if there was greater concentration,” said one caucus member.

Major players in regional media organisations, WIN billionaire owner Bruce Gordon and APN News and Media chief executive Michael Miller, did not believe local content would be at risk under the reforms.

WIN chief executive Andrew Lancaster said quota levels for regional content should be preserved, saying “they’re not overly arduous”.

“Removing the reach rules and ownership rules is about giving media organisations options going forward,” he said.

“The landscape has changed dramatically since the media ownership rules were introduced.”

Mr Gordon has spent a lifetime building his empire and it’s understood he would be more interested in acquiring shares of other media companies rather than selling WIN.

Mr Lancaster refused to speculate on specific mergers or acquisitions but said it was likely there would be consolidation.

He argued the reach rule was redundant because 95 per cent of WIN’s schedule was identical to the Nine Network’s.

“It’s the same product so I’m not quite sure why they think it’s going to impact on what people are watching any more than it does now,” he said.

Mr Miller said a demand for community-oriented journalism and media across multiple platforms was increasing.

He was not concerned about having formal quotas to ensure local content remained. “If you don’t continue to provide local news, the consumers will turn away so quality media players will continue to deliver local news,” he said.

Mr Miller agreed with Mr Turnbull’s view that media reach and diversity rules were outdated and did not consider digital or social media voices, from local or overseas media outlets.

“Nor do they consider that most major media companies now communicate across multiple platforms,” he said.

“Consumers want both media choice and media quality. A more open media market will provide both of these.”

He said the ACCC was capable of dealing with media organisations, in the same way it governed other industries.

Seven and Nine have expressed interest in owning free-to-air FM radio stations.

“Having just acquired 100 per cent of ARN, we are not considering divesting at this point,” he said. “We’re not in a position where we have to sell.”

Unable to gain Labor support, the government would be forced to rely on the Palmer United Party and others to get changes through the upper house, but early indications from crossbench senators indicate there is not enough support for the changes.

One view within the caucus is that Labor suffered so much from critical media coverage at the last election, including from News Corp Australia, publisher of The Australian, that it could not accept the repeal of the “two out of three” rule.

Opponents of media reform argued yesterday that repealing the “two out of three” rule would allow News to buy Ten, but the Australian Communications and Media Authority told a Senate hearing last November that such a merger would be allowed under current media laws. News has disavowed any interest in buying the free-to-air TV network.

Major TV companies other than Kerry Stokes’ Seven West Media are hoping Labor will allow the merger of city and country networks by voting for the repeal of a law that prevents any network reaching more than 75 per cent of the population.

Labor MPs backed the repeal in a committee inquiry last year, subject to safeguards for local content, but that does not bind the current leadership or caucus.

Opposition frontbencher Stephen Jones, speaking as a member representing the Wollongong region of NSW, warned against big mergers that sacrificed local content.

“I’d be deeply concerned about the impact that any change would have on regional services, particularly TV,” Mr Jones said.

Fellow frontbencher Shayne Neumann, who represents Blair in regional Queensland, said there were limited sources of local information despite the diversity promised by the internet. “I’d be concerned about the loss of local content in regional areas,” he said.

“Local people want to listen to local views, read by locals.”

Labor MP Sharon Claydon, who represents Newcastle in NSW, said local TV networks were important to the community, citing events such as telethons that raised funds for cancer care for children.

“I don’t think a station run out of Sydney would have given a rats about Newcastle, to be honest,” Ms Claydon said.

The Labor concerns echo those of Nationals MPs who spoke to The Australian on Sunday, indicating the political barriers to any repeal of the 75 per cent audience reach rule.