ABC and SBS face cuts while budget sees Australia Network scrapped
Public broadcasters the ABC and SBS will face cuts of $43.5m to their revenue with the ABC also losing its 10-year contract for the Australia Network which is worth $223m, the government announced last night as part of the federal budget.
Minister for Communications Malcolm Turnbull said the cuts were a one per cent reduction in the base funding of the broadcasters and represented a “down-payment” on back office savings identified following the recent government efficiency review conducted by former Seven CFO Peter Lewis.
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So if Rupert Murdoch’s New Corp had been awarded the Australia Network contract the government wouldn’t dare cut it. If it did it would face a compensation bill of $220 million and withdrawal of political support. But the ABC got it, will be paid 10 million compensation and 210 million is saved.
I am just waiting for the government prior to the election to disclaim that closing the Network was a mistake and they would be now be reshaping the idea and calling for tenders. Guess who’d get that one? Or is The Australian now going to write an editorial saying what a mistake the government has made in ending a contract which they themselves so keenly bid for?
In case you ever wondered what “disingenuous” means, here’s the perfect example. Mark Scott’s salary package – now a matter if public record – is circa $800,000 a year. That’s for a job you can’t be fired from. A job that us unaccountable to anyone but the ABC Board, which he sits on and runs. They could halve his package and employ 4 more people.
The phrase “self entitlement” might have 15 letters, but the short form has three: ABC.
Mike, I think if you compared Mark Scott’s salary package to that of his counterparts at Seven, Nine or Ten he’s likely to be on a lot less so they’re getting a lot better bang for buck at the ABC.