Tuesday, 18 November 2014

Communications Minister Malcolm Turnbull announces 5 per cent cut to ABC's annual funding

Extract from ABC News

Updated
Communications Minister Malcolm Turnbull confirms the ABC's annual funding will be reduced by about 5 per cent, and says he will detail the budget cuts this week.
The ABC's Media Watch program reported the Government would cut the public broadcaster's funding by $50 million a year, on top of the $9 million cut announced in the May budget.
Speaking on the Q&A program, Mr Turnbull said the cuts would average at 5 per cent over five years.
"That includes the 1 per cent, it includes everything since the budget, including the budget," he said.
"It does not include the cancellation or termination of the Australia Network contact. And the reason for that is that that was a contract between the Department of Foreign Affairs and ABC."
He said the cuts were reasonable, and were a part of a government-wide savings exercise necessary to help with the budget.

"We're spending more than we are receiving ... so we've got to raise some more money and we've got to spend less," Mr Turnbull said.

"There is no reason for the ABC and SBS to be exempt from that."
Mr Turnbull said the ABC received around $1.1 billion a year from the Government and that the cuts were "relatively modest savings" in relation to that budget.
He said 20 per cent of the ABC's budget was dedicated to transmission costs, meaning the savings could be made from cuts to "everything else", so as not to disrupt broadcasting services.
"I've gone to the considerable pains to ensure that the ABC is well able to deliver these savings without cutting into the resources available for programming," he said.
"Anyone here who is in business, who has been in business, particularly anyone who has been in the media business, in the private sector, that could not manage to find 5 per cent out of efficiencies is not even trying."
In his pre-election campaign, Prime Minister Tony Abbott promised there would be no cuts to the ABC or SBS under his government.
Mr Turnbull denied the cuts were a punitive measure.

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