However, despite the recommendations to the ABC to continue to maintain its internal production, skills and capacity there is still a need for the ABC to undergoe an external review and audit.
The next step in the Campaign is Senate Estimates which start next week and the continued lobbying of Government for the full public review and audit of the ABC. See how you can help by visiting our How to Help Page.
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The Australian - 14 October 2011
THE ABC should maintain internal TV production in all the regions or risk weakening its independence, a parliamentary inquiry has recommended.
"The committee calls on the ABC and the Minister for Broadband, Communications and the Digital Economy to identify and implement processes which ensure value for money, transparency and skill retention," said a key recommendation.
The Australian revealed this week that some of the most expensive shows on the ABC are outsourced productions. For example The Chaser's eight-part satirical show The Hamster Wheel cost the ABC $1.2 million on top of productions costs.
But the 10 recommendations stopped short of adopting the Greens' call for an external audit of financial and programming decisions or a reversal of a redundancy plan that saw 100 jobs go.
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The Australian - 13 October 2011
THE ABC should maintain internal TV production in all the regions or risk weakening its independence, a parliamentary inquiry has recommended.
“The committee calls on the ABC and the Minister for Broadband, Communications and the Digital Economy to identify and implement processes which ensure value for money, transparency and skill retention,” says a key recommendation.
The Australian revealed this week that some of the most expensive shows on the ABC are outsourced productions. For example The Chaser's eight-part satirical show The Hamster Wheel cost the ABC $1.2 million on top of productions costs.
But the inquiry report's 10 recommendations stopped short of adopting the minority Greens call for an external audit of financial and programming decisions, or a reversal of the recent redundancy round which saw 100 jobs lost, in particular in Brisbane, Adelaide, Perth and Hobart.
The inquiry also rejected the ABC union's call for a fixed commissioning model along the lines of the BBC's model, which ensures quotas for internal and external production.
The secretary of the ABC section of the Community and Public Sector Union, Graeme Thomson, was disappointed the committee did not recommend an external review of the cost of outsourced programs.
“We commend the recommendation that the ABC meet with the federal government to ensure value for money in programming because we have maintained the ABC is not getting value for money,” Mr Thomson said.
“We're disappointed that the recommendation made by the Greens wasn't picked up to engage a performance review because we believe there is something wrong with ABC TV's finances.”
But the report did come down on the side of ABC staff, urging ABC management and the federal government to halt the loss of programs and staff in the smaller states.
“The committee recommends that as part of the triennial funding round, the government consider the ABC's capacity to maintain a critical mass of staff, skills, infrastructure and production in regional areas,” the committee said.
Senators found that the increasing use of external producers had the capacity “to diminish the ABC's independence and skill base” and the public broadcaster should produce quality programming and not just news and current affairs.
It was revealed in the ABC annual report tabled in parliament this week that the ABC's redundancy bill had more than doubled, rising to $7.3 million last year.
The large redundancy bill is a result of the TV production review which resulted in hundreds of staff taking voluntary redundancy.
ABC News 24, which is not funded directly by the government, was partly funded by savings from the TV production review.
In 2010 the ABC's redundancy bill was just $3.1 million.
The annual report also revealed ABC managing director Mark Scott earned $758,059 last financial year, an increase of $111,809 on 2010.
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The Australian - 13 October 2011
THE ABC’s redundancy bill has more than doubled, rising to $7.3 million last year, according to the ABC Annual Report tabled in parliament yesterday.
ABC News 24, which was not funded directly by the government, was partly funded by savings from the TV production review. In 2010 the ABC’s redundancy bill was just $3.1 million
The annual report also revealed ABC managing director Mark Scott earned $758,059 last financial year, an increase of $111,809 on 2010.
Mr Scott’s salary pales into insignificance when compared to salaries in the commercial TV sector where a TV newsreader can earn $900,000 and Seven CEO David Leckie earns $2.5 million.
Mr Scott’s base salary grew from $435,597 - plus bonuses of 184,401 in 2010 - to a base salary of $733,139 with no bonuses in 2011.
He also had an allowance of $26,252 in 2010 which went down to $24,920 in 2011.
In October last year Mr Scott agreed to extend his term by another five years starting in July this year.
ABC Chairman Maurice Newman AC said at the time the ABC Board wanted him to continue.
“Mark has made a significant contribution to the Corporation’s success in the nearly four and a half years he has been here, having presided over the launch of two television channels; the ABC3 children’s channel and ABCNews24, and the rollout of digital radio,” Mr Newman said.
“He has also taken a number of decisions which have added greatly to the ABC’s efficiency. Mark Scott has led the industry in technological development, allowing the ABC to reach more people, in more ways, more often.”
Another five ABC directors earned more than $350,000 last year. The ABC’s directors are Kate Torney (news), Kim Dalton (TV), Kate Dundas (radio), David Pendleton (chief operating officer), Lynley Marshall (commercial).
Their salaries, with bonuses and allowances included, ranged between $365,653 and $459,483.
The salary bill for all ABC employees, including redundancy payments, superannuation and leave entitlements, was $443,547 million. Last financial year the ABC employed a full-time equivalent total of 4599 people.
The ABC was allocated $972.6 million in the May 2010 Federal Budget and earned an additional $183.1 million from other sources, including ABC Commercial.
