Senate Defeats Proposition To Allow SBS Extra Advertising Time

The proposition for SBS to have its advertising time extended from five minutes to ten minutes per hour has been defeated by the Australian Senate.

The SBS had asked for the extra time in order to make up the dollars it would lose from the budget cuts.

Today, the Australian Senate has defeated the proposition at the second reading stage.

The Communications Legislation Amendment (SBS Advertising Flexibility and Other Measures) Bill 2015 has been defeated at the second reading
— Australian Senate (@AuSenate) June 24, 2015

“The failed passage of this legislation is a setback and leaves SBS with a $28.5 million hole in its budget over the next four years,” said SBS managing director Michael Ebeid in a statement. “Given this legislation did not pass and SBS has largely exhausted back-office efficiencies, this funding cut is unable to be absorbed without impacting programs and services.

“SBS will now need to consider its contingency plans internally, provide an impact report to the Federal Government and review our overall funding. Once this process is complete, SBS will be in a position to outline further details about the impact the failed legislation will have on the organisation.”

A statement from Free TV Chairman Harold Mitchell said the failure of the bill is good news. “The failure of the SBS advertising bill in the Senate is great news for viewers and for the continued production of quality Australian content,” he said.

“It is a win for good public policy. It never made sense to turn SBS into a 4th commercial television licence, especially at a time when the television advertising pie is flat and we are facing increasing competition from global players who are unregulated and pay little or no tax in Australia.

“Viewers can be assured that there won’t be more ads on SBS in prime time and that Free TV broadcasters will be able to continue to fund the great Australian programs they love.” Read his full statement below.

A release during the initial proposal from communications minister Malcolm Turnbull stated at the time: “The Bill proposes an amendment to The Special Broadcasting Services Act 1991 which would enable SBS to use its current 120 minutes per day of advertising differently, by allowing it to average the minutes to a maximum of 10 minutes per hour instead of the current five minutes per hour, but importantly, the Bill does not allow SBS to exceed its current daily limit of 120 minutes per day of advertising.

“SBS supports the proposed amendment as it would allow SBS to deliver on the savings measure of $28.5 million over the next four years, as part of the $53.7 million in Federal Government funding cuts, through supplementary advertising revenue. Without the passing of this legislation, SBS is unable to fully deliver this savings measure.”

SBS’s Ebeid’s full statement:

Statement from SBS Managing Director Michael Ebeid regarding the Communications Legislation Amendment (SBS Advertising Flexibility and Other Measures) Bill 2015

SBS’s special Charter to explore and celebrate Australia’s multicultural diversity is at the heart of the organisation.

Revenue raised through advertising goes directly to protecting SBS investment in great Australian programs and services that deliver on our Charter.

Following the ABC and SBS Efficiency Study last year, SBS’s funding was cut by $53.7 million. Of the cuts, $28.5 million was predicated on the Parliament giving SBS slightly more advertising flexibility through an amendment to the SBS Act, whilst maintaining its current daily cap of 120 minutes of advertising permitted.

A survey of SBS audiences showed that 73 per cent would have preferred to accept slightly more advertising in some programs than see SBS programs and services cut.

The failed passage of this legislation is a setback and leaves SBS with a $28.5 million hole in its budget over the next four years. Given this legislation did not pass and SBS has largely exhausted back-office efficiencies, this funding cut is unable to be absorbed without impacting programs and services.

SBS will now need to consider its contingency plans internally, provide an impact report to the Federal Government and review our overall funding. Once this process is complete, SBS will be in a position to outline further details about the impact the failed legislation will have on the organisation.

FreeTV’s Harold Mitchell’s full statement:

Free TV Chairman, Harold Mitchell says “The failure of the SBS advertising bill in the Senate is great news for viewers and for the continued production of quality Australian content.”

“Viewers can be assured that there won’t be more ads on SBS in prime time and that Free TV broadcasters will be able to continue to fund the great Australian programs they love”.

We understand that governments have to make difficult budget decisions. Our concern has always been that any savings should not be at the expense of privately owned companies subject to a range of rules and taxes which SBS does not face.”

“The SBS has an important role in Australian television as do the commercial free-to-air broadcasters”

“We are grateful that the Parliament has decided to reject these changes that the public did not ask for and which would have damaged Free TV broadcasters at a critical time.”

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