SBS production hub mired in red tape and delays

The project appears mired in red tape and bureaucratic blame-shifting, and it is unclear if the ‘business case’ for the production hub in western Sydney is even under way.

Managing Director of SBS, James Taylor appears before a Public Hearing of The Communications Legislation Amendment Bill at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

SBS’s much-heralded push into western Sydney is facing further delays, with uncertainty surrounding the timing and budget of its promised multimillion-dollar production hub there.

The idea of the production hub was floated in December after the federal government ruled against a full-scale relocation of SBS from Artarmon, on Sydney’s north shore, to the more multicultural western suburbs.

A two-year feasibility study, commissioned by federal Labor, found such a move would be too costly.

The decision angered several western Sydney councils, with as many as four having put forward proposals to house a new SBS headquarters in their local area.

In rejecting the idea of a complete relocation, the Albanese government committed to invest in an additional production hub to expand the broadcaster’s news and current affairs division, multilingual audio services and screen production.

“Establishing an SBS production presence in western Sydney delivers on the government’s commitment to boost the region’s arts and culture infrastructure, to improve equity of access to and participation in the arts, and brings to life the SBS vision for expanding its studios to western Sydney,” the government said in a statement in December.

At that time, SBS managing director James Taylor emailed the public broadcaster’s staff to praise the government’s decision to invest in a production hub, saying it was “a great outcome for both SBS and western Sydney communities”.

“We expect to kick off the project early in the new year and be out in market looking for a site in the first half of 2025,” Mr Taylor said.

But the exact location of the new facility and its final plans are still to be determined because they are subject to the completion of a business case, for which SBS has received funding of $5.9m.

Despite the fact the “development of a detailed business case” was announced three months ago, the project appears mired in red tape and bureaucratic blame-shifting, and it is unclear if the “business case” process is even under way.

A question on the progress of the business case, asked at Senate estimates late last month by NSW Nationals senator Ross Cadell, shed very little light on the matter.

Margaret Lopez, assistant secretary of the Media Industry and Sustainability Branch of the government’s Communications Department, said: “At this stage, what is being proposed is that SBS be developing a business case for establishing that new facility, and the aim is for that to be delivered by the end of this year.”

The Australian on Friday asked SBS about the timeline of the business case, who was leading the project and if there was a tender issued for a third party to spend some of that $5.9m.

An SBS spokesperson replied: “As part of this work, SBS will be engaging on an equitable basis with local and industry stakeholders to identify an appropriate site, including a competitive tender process in which parties (local councils and others) will have the opportunity to present site options.”

There was no detail about the executive responsible for leading the study, and there is not yet a budget for the build or how it will be financed.

If the proposed production facility gets the green light, SBS claims it would enable the broadcaster to deliver more than 1440 hours a year of original audio and podcast content, and around 360 hours a year of new first-run Australian screen content.

SBS is well entrenched at its current home and is a large landholder in the immediate area of its Artarmon headquarters.

The broadcaster operates on an annual income of close to $500m. Its FY2024 annual report detailed government funding runs to $334.9m, with total own-source income of $159.5m. The majority of that, $126.4m in FY2024, came from advertising revenue.

The broadcaster also receives rent from third-party tenants in its properties.