Malcolm Turnbull reopens media reform push

The Turnbull government will reintroduce its historic media reform package to parliament this week.

Minister for Communications senator Mitch Fifield.

The Turnbull government will reintroduce its historic media reform package to parliament this week, as it assembles a new backbench communications committee and tweaks the proposed legislation.

It is understood the bill, which was killed by Malcolm Turnbull’s decision to go to an early poll via a double-dissolution election in July, will be put to the communications backbench committee this morning and then to the Coalition party room.

The government is seeking to abolish the reach rule, which prevents mergers between metropolitan and regional free-to-air broadcasters, and the two-out-of-three cross media ownership law.

Key to the National Party’s support of the bill was a clause that required regional networks to boost production of local news in the event of a change of ownership. However, under the previous bill the clause was only triggered if a metropolitan network took over a regional network.

It is understood the legislation has been amended to apply to situations where a regional network would absorb a metro network.

This could prove particularly relevant given regional TV and radio group Southern Cross, whose market value has grown to more than $1 billion, is worth more than its new affiliate partner Nine Entertainment, worth $876 million, which has struggled with a poor ratings year and is more exposed to the sluggish free-to-air ad market. The two companies deny they are in merger talks but they had been in periodic negotiations about such a transaction from early 2013 to late 2015.

The affiliate deal, signed in April, saw Nine ditch former partner Bruce Gordon’s WIN Corporation, which then partnered with metro broadcaster Ten Network Holdings in May. There has also been speculation about Mr Gordon’s potential desire to take control of Nine or Ten, considering he is the major shareholder of both companies. He has taken his economic interest in each company beyond the 15 per cent of ordinary shares he can own under the reach rule via complicated derivative products.

WIN’s profits have been squeezed by its new affiliate deal because Ten’s audience is smaller than Nine’s, although the gap between the metro networks has closed considerably this year.

Labor has said it will support the reach rule’s abolition but has been more reticent about its views on the two-out-of-three law.

A spokeswoman for Communications Minister Mitch Fifield ruled out the possibility of breaking up the package if it runs into opposition in parliament in a statement sent to The Australian.

“Our media laws need urgent reform to secure the future for Australia’s media industry. The government has no intention of watering down or separating out these vital reforms,” she said. “The legislation will be put back before the parliament as a priority and as a package.”

That could leave independent senator Nick Xenophon as a key hurdle to the bill’s chances of being passed by the Senate. He is determined to see further restrictions slapped on gambling advertising on free-to-air networks, and has proposed cutting TV licence fees to offset lost revenue. He will meet with media companies and the government about his proposal, as revealed by The Australian.

Senator Xenophon could make his support of the reform bill contingent on action being taken on gambling advertising, although he was part of two Senate committees that have recommended the reach rule’s abolition. This year’s committee also recommended the two-out-of-three rule be scrapped.