Billionaires Graveyard!, page-208

Too little too late

• The Australian
• 11:38AM June 28, 2017

The Turnbull Government has dodged a Senate roadblock and will use regulation to scrap TV licence fees, saving the Seven, Nine and Ten networks $127 million.
The government blamed Labor’s refusal to back media ownership reforms for its move, saying its proposed changes, unanimously supported by the industry, would secure thousands of jobs under threat from foreign internet companies and streaming channels.
“Labor’s political gamesmanship in the Senate means the media industry is forced to wait another 40 days until Parliament returns to consider media reform legislation,” Minister for Communications Mitch Fifield said in a statement.
The one-off relief for commercial free to air TV and radio broadcasters for the 2016-17 financial year was worth about $127m, he said.
“Last week, Labor twice voted in the House of Representatives against the entire package, despite claiming they support elements of it. Unlike Labor, all other groupings in the Senate have been engaging in constructive discussions with the Government which continue.”
The industry praised the move. “This provides welcome relief for our industry, which is challenged by increased competition from large multinational tech and media companies,” Free TV chairman, Mr Harold Mitchell said.
“In the internet age, it makes no sense to continue to impose the world’s highest licence fees when these foreign media tech companies pay nothing,” Mr Mitchell said.
Abolishing broadcast licence fees in favour of a spectrum charge are components of the media reform package the Government announced in May. The media reform bill includes repealing the 75 per cent audience reach rule and the two-out-of-three rule, which stops a person owning a TV network, radio station and newspaper in the same market. Labor, the Greens and One Nation, caution that removing the two out of three rule would hamper media diversity.
This Senate stalemate means the government has been unable to legislate the passage of its reforms.
In statements released to the ASX, Nine Entertainment said the move will save it approximately $33m, while Southern Cross Media expects to be $11.8m better off in the current financial year.