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Outcome 3 - Output 3.2

Policy advice and program management which promote accessible high-quality broadcasting services

High-quality program funding and grant administration

Television Black Spots program and Television Black Spots—Alternative Technical Solutions program

As figure 2.44 indicates, significantly fewer applications were processed, projects funded and grants administered under the Television Black Spots program this year because the program was being progressively wound down in accordance with its scheduled closure on 30 June 2005 .

The Television Black Spots—Alternative Technical Solutions program administered six grants during the year.

Figure 2.44 Television Black Spots/Alternative Techincal Solutions grants 2003-04

		2003-04			2004-05
	Applications processed	Funded projects	Grants administered	Applications processed	Funded projects	Grants administered
TVBSP new services	46	46	187	4	10	100
TVBSP replacement of obsolete equipment	0	0	56	0	0	1
Alternative Technical Solutions	2	2	2	4	4	6

As figure 2.45 indicates, all of the milestones required in 2004–05 for the Television Black Spots program projects that involved the replacement of obsolete equipment were met. Nine of the
39 milestones required for new Television Black Spots program and the Alternative Technical Solutions projects were not achieved on time, although grant recipients subsequently complied with requirements in the reporting period.

During the year the Department worked actively with the coordinating bodies to encourage them to meet milestones and acquit projects, but delays were sometimes difficult to avoid, particularly where the projects are located in isolated regions or because of technical factors.

Figure 2.45 Television Black Spots - Alternative Technical Solutions milestones met and grants acquitted

	2003-04				2004-05
	Milestones met		Grants acquitted		Milestones met		Grants acquitted
	%	No.	%	No.	%	No.	%	No.
Television Black Spots Program	100	96	92	77	81	29	39	22
Television Black Spots replacment of obsolete equipment	77	21	95	53	100	1	0	0
Alternative Technical Solutions	100	1	n/a	n/a	33	1	100	2

Commercial Radio Black Spots program

Although the program was due to end on 30 June 2005, funding has been extended into 2005–06 to allow outstanding eligible projects to be completed. As shown in figure 2.46, no new invitations to submit projects were considered in 2004–05, although 19 projects from previous submissions, addressing 25 communities, were approved during the year.

Figure 2.47 shows that, in 2004–05, 26 per cent of milestones were not met, although the majority of grant recipients subsequently complied with requirements in the reporting period. The Department continues to work actively with recipients to encourage them to meet milestones and acquit projects on time, but there can be delays, particularly where the projects are in more remote areas. Administrative reorganisations associated with the takeover by the Macquarie Bank Group of projects previously approved for RG Capital and DMG Regional Radio also led to delays in meeting milestones.

Projects originally approved in 2002–03 (three), 2003–04 (four) and in 2004–05 (one) were cancelled or terminated in 2004–05, a total of eight.

Figure 2.46 Commercial Radio Black Spots program grants administered

	2002-03			2003-04			2004-05
	Applications processed	Funded projects	Grants administered	Applications processed	Funded projects	Grants administered	Applications processed	Funded projects	Grants administered
Commercial radio Black Spots program	185	38	38	275	70	108	0	19	102

 

Figure 2.47 Commercial Radio Black Spots program milestones met and grants acquitted

	2003-04				2004-05
	Milestones met		Grants acquitted		Milestones met		Grants acquitted
	%	No.	%	No.	%	No.	%	No.
Commercial Radio Black Spots program	90	29	90	28	74	28	96	23

ABC and SBS digital interference scheme

In 2003–04, the Department transferred funds from the scheme to the ABC and SBS following receipt of five invoices validating the costs the national broadcasters had incurred in relation to the interference management strategy. The average period for processing these invoices and payments in 2004–05 was 12 days, an improvement on the 17-day average in 2003–04. All invoices or payment requests received by the Department in 2004–05 were approved by 30 June 2005.

National Transmission Network residual funding pool

Five grants were provided for community and remote commercial broadcasters and Radio for the Print Handicapped. No application is required as the grants reflect arrangements agreed at the time of the sale of the National Transmission Network.

As shown in figure 2.48, in 2004–05 11 of the 14 milestones were met by the target date. Those that were late were met on average within 16 days of their due date, an improvement on 2003–04 when only two milestones were met by the target date and the remainder on average within 26 days of their due date. The slippage was primarily due to delays in the provision by funding recipients of partially completed activity reports which needed to be followed up by the Department. All outstanding grant acquittals were provided.

Figure 2.48 National Transmission Network residual funding pool milestones met and grants

Year	Milestones met		Grants acquitted
	%	No.	%	No.
2004-05	79	11	100	5
2003-04	17	2	100	5
2002-03	33	3	100	8

Community broadcasting

Community broadcasting is not an application-based program. Funding to the community broadcasting sector is provided through the Community Broadcasting Foundation, an independent, non-profit company. In 2004–05, $7.489 million (including $150 000 paid in 2003–04) was paid to the foundation for allocation and distribution. As shown in figure 2.49, two grants for research projects funded in previous years continued to be administered in 2004–05.

In 2004–05, all milestones were met within the required timeframe, a significant improvement over previous years (see figure 2.50).

Figure 2.49 Community broadcasting grants

Year	Funded projects	Grants administered
2004-05	1	3
2003-04	2	2
2002-03	2	2

Figure 2.50 Community broadcasting milestones met and grants acquitted

Year	Milestones met		Grants acquitted
	%	No.	%	No.
2004-05	100	5	100	2
2003-04	70	7	100	1
2002-03	0	0	100	1

Community broadcasting training fund

The Community Broadcasting Foundation received $500 000 in May 2005 towards establishing a training fund. The foundation’s board has established a new cross-sector training advisory group responsible for providing a formal implementation plan to determine the most efficient and effective way to distribute the funds. A consultant was engaged to assist in the formulation of this plan. The foundation expects to move into the operational phase early in the 2005–06 financial year.

Community broadcasting transmission support

The Community Broadcasting Foundation received $1.5 million in May 2005 to assist the sector with transmission, infrastructure and operational costs. To date, the foundation has held one round of funding. One hundred and ninety-eight community services located in urban, regional and remote centres across Australia received 189 grants.

Indigenous broadcasting

The Department administered 187 projects in 2004–05. These comprised 111 projects funded and 76 projects from previous years acquitted. As well, the Department processed 133 applications for funding in 2005–06 ( 2.51).

Figure 2.51 Indigenous broadcasting grants

	Applications processed	Funded projects	Grants administered
Indigenous broadcasting	133	111	187

Regional Equalisation Plan

The Department paid cash grants under the Regional Equalisation Plan totalling $660 000 in 2004–05, in line with the determined schedule. These comprised grants of $300 000 to commercial television broadcasters in the Broken Hill and Riverland markets, and a payment of $360 000 to Imparja Television, which broadcasts in remote, central and eastern Australia, to assist with significant equipment replacement costs in advance of its digital conversion.

NetAlert Limited

Total funding provided to NetAlert in 2004–05 was $1.466 million, which included $250 000 paid by the Australian Government Information Management Office. The funding consisted of $750 000 ‘core’ funding and $46 000 for the budget estimates framework review, which enables NetAlert to meet its budget reporting obligations. A further $670 000 was made available under the National CyberSafe Program, a component of the Government’s National Child Protection Initiative.

The funding agreement between the Australian Government and NetAlert requires that annual funding allocated to NetAlert cannot be provided until the Department approves NetAlert’s work plan.

High-quality and timely policy advice and ministerial services

The Department provided a wide range of direct support services to the Minister during the year. As shown in figure 2.52, the Department’s performance in meeting agreed timeframes for this support generally improved over the previous year for this output area. The majority of correspondence received by the Minister on broadcasting issues related to the national broadcasters’ programming decisions, coverage of news and current affairs, funding, and matters regarding the programming of commercial television broadcasters, including captioning and sports coverage.

In addition to the policy issues discussed under the performance indicator for Outcome 3, the Department’s policy advice included a range of policy, program and operational matters. These included completing a major program of reviews.

During the 2004 election campaign, the Government committed to reforming Australia’s media ownership laws while protecting the public interest in a diverse and vibrant media sector. The Department undertook a number of statutory reviews into the digital television regulatory framework during the year. They involved the consideration of some of the key regulatory structures which shape Australia’s television sector.

Figure 2.52 Advice provided within agreed timeframes

	2003-2004		2004-2005		2003-04 to 2004-05
Type of advice	No.	Provided within agreed timefram (%)	No.	Provided within agreed timeframe (%)	Change of % on time
Ministerial correspondance	1940	56	877	68	+12
Briefings -Minutes initiated by Department	251	n/a	262	n/a
-Meeting briefs	98	83	68	86	+3
Question Time briefs	205	57	156	82	+25
Parliamentary questions on notice	64	27	36	34	+7

A key challenge is to develop reforms that will provide more flexible and dynamic regulation of media and its ownership while ensuring the preservation of diversity in this critical sector. The Department provided extensive analysis and briefing on the various elements of the package and their implications for media structure in Australia.

The Department also completed a review of the viability of creating an Indigenous television broadcasting service. The report of this review will be tabled in parliament early in 2005–06.

The Department undertook an extensive public consultation as part of the process for developing a policy and regulatory framework for the introduction of digital radio in Australia. Interested parties were invited to provide submissions in response to an issues paper that was released in December 2004, and a series of discussions was held with all major stakeholders. The Department received 24 submissions responding to the issues paper. It is expected that the Government will announce an implementation framework for digital radio in 2005–06.

A major review of the regulation of ‘convergent’ content was conducted during the year. The review focused on the appropriate measures to address community concerns about offensive or illegal content delivered to new and emerging communications devices such as 3G mobile phones. The review also considered issues associated with inappropriate contact potentially arising from new services available on such devices. Implementation of any review findings will be a focus of 2005–06.

In February 2005, the Department finalised its report to the Minister on the review of Australian and New Zealand content on subscription television broadcasting services. The report of the review, including the Government response, was tabled on 16 March 2005.

The continued availability of sporting events of national significance on free-to-air television is a priority for Government and an important policy issue on which the Department advises. The Broadcasting Services (Anti-siphoning) Act 2005 amended the anti-siphoning regime to extend the period in which events on the anti-siphoning list were automatically removed from the list, to give subscription television more time to plan the coverage of events that would not be shown on free-to-air television.

Ongoing advice was provided to the Minister on issues relating to the accountability and governance of the national broadcasters, including national broadcaster complaints-handling. The Department facilitated the expansion of digital television services by the national broadcasters by processing digital implementation plans associated with the rollout of 60 ABC services and 75 SBS services. The Department provided advice on proposed new digital television transmission and distribution contracts for SBS.

The Broadcasting Legislation Amendment Bill (No.1) 2005 was introduced into parliament on 23 June 2005. The Bill amends the Broadcasting Services Act 1992 and the Radiocommunications Act 1992 to provide a framework for the conversion of commercial television broadcasting services in remote Western Australia (designated as all areas outside Perth) from analogue to digital.

Under this model, Western Australians living outside Perth will receive a new, third digital television service. It will provide them, for the first time, with a level of services similar to those currently enjoyed by viewers in Perth. The Department also discussed digital conversion with commercial television broadcasters in remote, central and eastern Australia.

The Department coordinated the development of advice for consideration by Government on a range of radiocommunications matters, including legislative instruments required for the auction of spectrum for broadband wireless access services.

Effective client service and consultation

The Department has conducted consultative exercises during the year to assist with the analysis of sectoral policy issues. These consultative processes took various forms, such as seeking comment on discussion papers, and liaising with key stakeholders.

Calls for submissions in response to information or discussion papers were publicised widely, through advertisements in print media, by direct invitations to key stakeholders, through media releases, and via the Department’s website.

During the reporting period the Department released consultation papers for four statutory reviews of the digital television regulatory framework, and on content on convergent devices and the introduction of digital radio in Australia. Submissions were also received on reviews of regulatory restrictions on additional programming provided by free-to-air broadcasters, and creation of an indigenous television service. The number of submissions received in response to the reviews is set out in figure 2.53.

Figure 2.53 Broadcasting reviews

Review subject	Consultation paper issued	Number of submissions received
The regulatory restrictions applying to the additional programming provided by free-to-air braodcasters, including multichanneling	May 2004	38, plus some supplementary submissions
The viability of creating an Indigenous television broadcasting service	May 2004	49, plus almost 400 emails
Convergent content review	July 2004	19
Matters relating to the end of the moratorium on the issuing of the new commercial television licences, which concludes on 31 December 2006	July 2004	18
The efficient allocation of spectrum for television and datacasting services	December 2004	13
The operation of legislation related to markets with only one or two commercial television broadcasters	December 2004	9
Introduction of digital radio in Australia	December 2004	24
The high-definition television quota	May 2005	25

The Department consulted regularly with the Australian Broadcasting Authority and the Australian Communications Authority on broadcasting and radio communications matters. The Department also consulted with relevant broadcasters to develop the framework for the digital conversion of remote area television broadcasting.

The Department is responsible for the administration of a number of broadcasting funding programs which require a high level of client focus and cooperation to ensure that these programs achieve their objectives. An evaluation of the Television Black Spots program conducted by the Department’s Research, Statistics and Technology Unit revealed a high level of responsiveness to applicants by the TV Fund Unit staff.

The highly facilitative approach to project application and management by the TV Fund Unit was important, as most applicants had no expertise or experience in television broadcasting technology.

The Department receives numerous public queries about aspects of the broadcasting regulatory regime, ways to redress poor television and radio reception, and digital broadcasting technology, products and services. The Department’s annual client survey revealed that 95 per cent of the 39 broadcasting clients surveyed are satisfied with the services provided, a slight reduction from the 98 per cent of 90 clients satisfied in the previous year.

Compliance with accountability standards

The Department’s Research, Statistics and Technology Unit finalised an evaluation of the Television Black Spots program. The evaluation found that key stages in designing the program met better-practice standards including the identification of needs, consideration of the technical options in a scoping study, and consultation with key stakeholders. Frequent contact was maintained with all grant recipients to ensure reporting and other accountability requirements were met.

A financial audit of the Commercial Radio Black Spots program was also undertaken in 2004–05. The objective of the financial audit was to determine, to an adequate level of confidence, that the recipients of program funding were spending the funds in line with the requirements of the funding agreement. The consultant found that the recipients had spent funds in accordance with the terms of the funding agreements.

During 2004–05, stringent new reporting requirements were established to enable adequate monitoring of the implementation of the new community broadcasting training and transmission funding programs.

Research and analysis activities contribute to policy development

Internal research activities draw on both subscriptions to relevant printed and online journals and participation in industry forums to build a strong understanding of domestic and international developments. For example, the Department’s representation on the Electromagnetic Energy Reference group, the International Radio Communications Advisory Committee and the Radiocommunications Consultative Council means that it is well placed to develop considered policy advice on radiocommunications issues.

Where appropriate, expert consultants are engaged for specialised research projects. During the year a consultant was engaged to provide advice on the infrastructure costs associated with digital radio transmission in Australia and another on the economic impacts of allowing free-to-air television broadcasters to offer additional services such as digital multichannels.

In both 2002–03 and 2003–04, the Department provided the Community Broadcasting Foundation with funding for multi-year national audience research projects to produce the first comprehensive picture of community radio and television audiences in Australia. The Department’s Research, Statistics and Technology Unit provided technical advice in relation to these projects. The results of the quantitative audience research project were announced late in 2004 and the Department and the Government are using them to help formulate, implement and evaluate community broadcasting policy.

Targets for processing times met

In accordance with program funding agreements, payments are to be made within either 30 days or 20 working days of signing an agreement, and within 30 days or 20 working days of progress reports being accepted by the Department.

During 2004–05, 224 payments were processed and on average these payments were made within 11 days, an improvement of four days over 2003–04. Fourteen payments (6.25 per cent) were not made within the requisite timeframe nominated in the relevant funding agreement. This represents a small improvement over 2003–04.

Highly effective budget management

As identified in the resources for the outcome table on page 94, the overall price of output 3.2 was $251 000, or 1.32 per cent, below budget.

In 2004–05, $5.339 million of the $7.489 million provided through the Community Broadcasting Foundation for community broadcasting sector was paid from departmental appropriations. Commencing in 2005–06, all payments to the foundation will be made from administered appropriations. This change will provide greater transparency of Government funding of the community broadcasting sector.

Managers conduct a regular evaluation of budget outcomes, and commentary on variations between budget and expenditure is provided to the Department’s Executive Management Group on a monthly basis. The commentary also includes forecasting of budget trends where possible.

 

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Document ID: 33486 | Last modified: 6 February 2008, 12:11pm