Xenophon puts media reform deal within reach

The Nick Xenophon Team is on the verge of clinching a media reform deal with the Turnbull government for a second time.

Senator Nick Xenophon.

The Nick Xenophon Team is on the verge of clinching a media reform deal with the Turnbull government but the package’s success will depend on whether the parties can agree to measures to increase jobs in journalism.

Communications Minister Mitch Fifield put a counter offer to the NXT yesterday after leader Nick Xenophon revised his proposed tax breaks for companies earning between $300,000 and $25 million. The Senate powerbroker said last night the tax breaks were still on the table. But he acknowledged there were other measures that could “enhance diversity and boost the employment of journalists”, opening the way for a new agreement with the government.

The Broadcasting Reform bill, which has unanimous backing from the industry, has been stuck in the Senate since June. It would controversially repeal the two-out-of-three rule, which prevents a person controlling a television network, radio station and newspaper in the same market.

“We are open to abolishing the two-out-of-three rules, providing there is a quid pro quo to ensure greater diversity in media, particularly among smaller and regional publishers,” Senator Xenophon said. “I understand the opportunity here to strengthen large and small media companies in Australia — and the role of journalists in our democracy — and I will do my very best to make sure that opportunity is not lost.”

Negotiations broke down last month when Senator Fifield rejected Senator Xenophon’s original tax breaks proposal on the basis it could benefit foreign multinational organisations and unnecessarily intervene in commercial media.

There are also warnings from government MPs that the measure, estimated to cost the budget about $50 million a year, could help organisations like the Guardian, Crikey and Buzzfeed rather than regional newspapers.

Senator Xenophon said reaching an agreement with the government on a terms of reference for a comprehensive inquiry into the impact of Google and Facebook on journalism would “at least see some light at the end of the tunnel for media organisations to get a fair go”.

“I’m hoping we’re getting close to resolving this. If it’s not going to be resolved in this sitting fortnight then it won’t be resolved at all for a long time and that would be a tragedy if we can’t resolve this issue,” he said.

Without Labor’s support, the government will need to win over the three NXT senators or the Greens to legislate its media reform package.

Senator Fifield said “constructive discussions” were continuing with crossbench colleagues but refused to say what was being negotiated.

The four One Nation senators and crossbenchers David Leyonhjelm, Cory Bernardi and Derryn Hinch have said they will vote for the media reforms.