Deal to bring on media reform

A last-minute deal to help small and regional news outlets has cleared the way for the government’s sweeping reforms.

Communications Minister Mitch Fifield negotiated the agreement after nearly a week of talks. Picture: AAP

A last-minute deal to help small and regional news outlets has cleared the way for the Turnbull government’s sweeping media reforms in a big advance agreed with key Senate powerbroker Nick Xenophon on Tuesday night.

The agreement includes measures to spur the creation of news outlets and offer new prospects for journalism cadets, including an innovation fund to support independent and ­regional news organisations.

The Australian understands the concessions negotiated with the Nick Xenophon Team went to the Coalition’s backbench communications committee late on Tuesday to ensure government MPs were comfortable with the outcome ahead of its announcement as soon as Wednesday.

Communications Minister Mitch Fifield negotiated the agreement after nearly a week of talks over a revised package to get the government’s stalled media reforms through parliament.

The outcome is a significant win for the government and builds the numbers in the Senate to legislate changes to ownership laws and licensing rules that the industry blames for preventing it from competing against online rivals.

A critical plank of the revised package focused on NXT’s proposed new fund to encourage ­investment in cadetships and journalism equipment in independent and regional newsrooms, as revealed in The Australian. It is understood the measure could cost taxpayers between $20 million and $30m.

It is expected the local arms of foreign-owned companies, such as The Guardian Australia, were not likely to benefit from the fund but regional media organisations and smaller independent outfits, including The Saturday Paper and Crikey, could be eligible under the arrangement.

A spokesman for Senator Xenophon late Tuesday said there was “no deal just yet” and the two parties were still “horse­trading” but industry and government sources confirmed later that a deal with NXT was done.

Debate on the media bill resumed in the Senate on Tuesday and could continue on Wednesday. Senator Xenophon and his upper house colleagues Stirling Griff and Skye Kakoschke-Moore have demanded the “media ­diversity” measures in exchange for supporting the government’s bid to repeal the two-out-of-three ownership rule, which prevents a person controlling a radio station, television network and newspaper in the same market.

The government’s sweeping media overhaul has unanimous industry backing and support from the four One Nation senators, and independents Derryn Hinch and Lucy ­Gichuhi.

But the votes of the three NXT senators and support of ­another independent was critical for the media law changes to pass the Senate this week. Senator Griff, the NXT’s communications spokesman, said the government’s bill was a “sound start” in substantially reforming existing media laws but there was “more that can be done” to help smaller and ­regional news organisations.

Liberal Democrat senator David Leyonhjelm said he had always been in favour of media reforms but cautioned against any money going to the Green Left Weekly or the Guardian.

Australian Conservatives senator Cory Bernardi said he “broadly supported” the reforms but would wait to see how they were modified.

Tasmanian senator Jacqui Lambie won’t support the package because of the “dirty” deal between the government and One Nation.