Julia Gillard opens door to media deal as executives unite to fight reforms

JULIA Gillard is battling to salvage Labor's media reforms by adjusting plans for press regulation as caucus members blast her handling of the policy.

JULIA Gillard is battling to salvage Labor's media reforms by adjusting plans for press regulation as caucus members blast her handling of the policy and key independents seek to veto the changes.

After a day of fierce attacks from executives who branded the changes an unprecedented curb on press freedom, the Prime Minister took another blow last night when independent Tony Windsor indicated he did not support the package in its current form.

"I don't think the numbers are there for a great portion of this to get through," Mr Windsor said of the six bills on ABC TV.

GRAPHIC: Media execs' statements

If the independents were asked to "take it or leave it" then the reforms were probably dead, he said.

Fellow regional independent Rob Oakeshott earlier declared he could not support any of the bills.

Other independent MPs have warned against the changes, which include press regulation, ownership reform and changes to broadcasting reach rules, and rebuked Labor for trying to force parliament to decide the far-reaching reform within a week of introducing the bills.

While the Greens indicated last night they could strike a deal on ownership rules and the oversight of the press, the moves could come too late for Labor to secure the numbers if it proceeds with its plan to put the bills to a vote in the lower house late today or tomorrow morning.

"I won't be supporting any of the six bills and I've informed the Prime Minister of that today both verbally and in writing," Mr Oakeshott told the ABC's 7.30 program.

Asked if there was any way Ms Gillard could regain his support, Mr Oakeshott suggested a "better policy" and more time for deeper consideration of the reforms.

Tasmanian independent MP Andrew Wilkie and Queensland MP Bob Katter have expressed concern at the reform package, while former Labor MP Craig Thomson has said he will vote against the changes.

With 71 of the 150 seats in the lower house, Labor needs support from five cross-bench MPs to be sure of legislating the changes but has conditional support from only one, the former Liberal MP and speaker Peter Slipper.

Communications Minister Stephen Conroy is holding further talks today to regain support for the bills and Greens deputy leader Adam Bandt last night outlined compromise amendments to secure their support but this appears unlikely to rescue the package.

Ms Gillard reached out to some media executives on the weekend to seek a deal on the changes before declaring yesterday she was open to "sensible suggestions" to amend the plans.

Seven West Media chairman Kerry Stokes declared yesterday that governments should have nothing to do with print regulation in a free market where readers decided what they wanted from publishers. "It's not the government's responsibility to enter into what newspapers publish," he told The Australian after facing a parliamentary inquiry in which Labor and the Greens insisted the government had a role to help oversee the print and online media.

Ms Gillard sought to assuage concerns at Fairfax Media over the weekend by phoning chief executive Greg Hywood in a move seen by some as an attempt to split the industry ahead of yesterday's hearings. Mr Hywood appeared to toughen his stance against the legislation, however, telling senators that the reform threatened publishers with a "nuclear option" by removing their long-standing right to privacy exemptions essential to journalism.

News Limited chief executive Kim Williams revealed that the company, which publishes The Australian, was seeking legal advice to mount a High Court challenge to the reform if it passed, on the grounds it breached the implied constitutional freedom opolitical communication. The fight over press regulation is fuelling doubts over Ms Gillard's political strategy as her allies attempt to focus on jobs and foreign workers while her critics point to the media debate as a dangerous distraction.

Tony Abbott sought to turn the fight over media reform into a test of Ms Gillard's authority and judgment as he moved a suspension of parliament to force the Prime Minister to argue the case for the changes. "This is about the Prime Minister's standards and about the Prime Minister's judgment," the Opposition Leader said, adding that the government could not "cop criticism" from the press.

Ms Gillard did not use the suspension to argue for the changes and avoided a direct question over whether she would take the press reforms to the election as official policy if they were not passed by the parliament by the stated deadline of this Thursday. Labor introduced six media bills into parliament last Thursday and wants them decided within a week in order to establish the Public Interest Media Advocate to administer media ownership controls and oversee press standards.

Senator Conroy insisted yesterday the PIMA would operate at arm's length from government, would not intervene in individual publishers and would sign off on the standards that the industry self-regulator chose to adopt.

Other changes would remove an audience-reach limit that prevents mergers between city and country TV networks, a change that has alarmed Nationals MPs and some regional independents worried about the closure of local newsrooms.

Ms Gillard said there would be no "horse-trading" over the bills but left room to change the plan to overcome objections from independent MPs. "If there are sensible suggestions consistent with our reform intentions . . . that come out of the parliamentary committee process then certainly we will listen to those," she said.

The Australian heard from two sources that she phoned Mr Hywood on the weekend, but the conversation did not produce any change in position. Fairfax Media declined to comment.

At issue is the government's desire to check on the standards applied by the Australian Press Council and other bodies set up by publishers to hear complaints about stories. Mr Stokes said the government had not demonstrated there was a problem that justified the intervention, despite the criticism from senators about press coverage. "This legislation should fail because it's too rushed and it's draconian, and no one's properly thought through how it inter-reacts," he said.

Under the laws, PIMA could revoke approval of the APC or another body, such as the Independent Media Council that hears complaints against The West Australian, published by Seven West Media.

Mr Hywood warned that the official would be a "solitary individual with no appeal process" and broad scope to determine when publishers breached standards.

Greens leader Christine Milne and communications spokesman Scott Ludlam last night outlined a compromise package that would protect regional news services and grandfather the existing two press councils. "We want to make sure local and regional news is protected," Senator Milne said. "That goes to the heart of the public interest test."

Referring to Seven West Media's decision to set up its own independent regulatory body, Senator Milne said the party did not want to see "a proliferation of press councils around the country. That would be the wrong direction."

"Providing that the government is prepared to move on these issue we are prepared to see this legislation through," she said.

Senator Ludlam said the Greens had long campaigned for media reform but he was critical of Senator Conroy's attempts to ram the package thorough the parliament, saying it was "not an appropriate way to pass these bills".

One caucus member said the handling of the reforms looked "haphazard" and MPs could not understand why the plans had been unveiled when Ms Gillard was trying to build support on the economy and jobs.

"It's crash or crash through, but surely we've had enough car accidents," said the MP.

Another said caucus regarded the policy as a low priority and it would damage Labor if the bills were not passed but hung over MPs until the next election.

Additional reporting: Christian Kerr