Media Reforms in Australia Review

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Table of Contents

Introduction
Rationale of Government Intervention
Australian Broadcasting Policy
Proposed Amendment
Discussion
Conclusion
References

Introduction

The government is a fundamental entity that oversees the activities being implemented in a state. Governments are the foundation that ensures continued and sustained progress among countries. The role of the government in states is governed by some principles. These aspects involve the creation of suitable policies, collection of tax, provision of social service, domestic order, and building a military defence. Aside from these functions, the government represents the states in their international dealings. The government is the central body that glues all stakeholders in a country.

The idea of government intervention extends beyond economic policies. Some states provide policies to regulate industries. In Australia, for instance, the government is keen on providing controls to ensure the stability of broadcast media. Since its emergence, broadcast media has become a powerful segment that disseminates information. But there are several risks provided to this freedom of the press that needs to be controlled. Therefore constant monitoring is needed to ensure parity in the industry.

Rationale of Government Intervention

A working paper authored by Gwartney, Lawson, and Holcombe (1996) provided some insights as to the value of government intervention in a state. Based on some figures presented, the Australian government has increased outlays by 16% from 1960 to 1996. The extent of increase is one of the lowest among the countries selected. But the increase still asserts the important role of the government is pushing for economic stability. In addition, there is a positive trend that can affect the future provision of capital outlay. This is the most important aspect that needs to be expanded and monitored to ensure that the resources used are being optimised.

Hobbes stated an important thought about states without a policy-making body. The statement revolves around the notion that government is a critical aspect of civilization (Barro, 1990). Government has the capacity to boost growth through infrastructures. Moreover, the government can provide distinct goods that the private sector fails to produce. For example, the provision of national defence is a unique government responsibility. The government needs to ensure that these balance in the use of state resources. Without the government, equitable access to these resources will be limited.

The increase in government investment is important in shaping countries. Nations have to be competitive to participate in global economic activities. It is important for the government to invest in infrastructures to build the industries. Moreover, government investments will allow competition to flourish. In relation to policies, governments use these to promote balanced activities. The government needs to provide for the needy and promote growth.

The inexistence of norms maintained by governments creates confusion in societies. As Coase (1960) explained, there are social costs accrued when these policies are missing. For instance, there are individuals who want to cut trees for lumber and there are groups that want to protect the environment. There is a thin line separating the arguments maintained by these individuals. But the prolonged waiting, because there are no policies, causes more problems. There needs to be a strong policy that will ensure both parties are satisfied. In this process, the value of compromise is realised.

Australian Broadcasting Policy

Broadcasting in Australia is a major provider of service and business opportunities. The emergence of broadcasting in Australia was hindered by some obstacles. One major problem seen was the lack of strong markets where these businesses will thrive. But the government was aggressive in ensuring that the industry will grow. To fill in the gaps caused by the hindrances, the government instituted a policy in the Broadcasting Services Act of 1992. With this law, the role of broadcasting has expanded and become a major election component.

The evolution of the Australian Government has contributed to the growth in broadcasting. Livingston (1994) stated that public communication has driven the creation of colonial governments during the pre-Commonwealth era. Forms of communication have also improved through the years. For instance, wireless communication has developed in the country. But because of proliferation and complaints, the Minister of Communication has intervened. The agency worked to ensure the adequacy of wireless broadcasting.

The Australian government has established control in wireless forms of broadcasting through the Wireless Telegraphy Act of 1905. Day (1994), however, argues that the frameworks of this law are incomprehensible. But the government asserts that the law discourages monopoly in the industry. Interested groups are only to secure permits to create businesses involving wireless broadcasting. There were several broadcasting services that were instituted by Australia. Major investments were made to expand the operations of these government-owned corporations and enterprises.

The Australian Government maintains that intervention is needed to promote economic viability. On the other hand, the government clarifies that these policies are transparent and well structured. Hilliard (1985) contends that the policies are designed to provide uniqueness to broadcasters. The provision of different frequencies will prevent technical problems to occur. In addition, policies are important in creating boundaries to broadcasting. These are some instances when broadcasting is used for propaganda. The policies are intended to impose sanctions to prevent these activities.

In 1923, the Government enacted a law that will allocate broadcasting licenses to commercial stations. Although the initial response was unfavourable, it marks the first time that the government has recognised the economic value of broadcasting. The government also realised the need to continuously improve the policies for broadcasting. There were several papers made to support the suggestions of expanding the scope of broadcasting. Hence the Broadcast Services Act of 1992 came into existence.

As stated, the population problem in Australia is a limitation. The scattered market discourages businesses from concentrating on creating opportunities in the industry. The Australian government persuaded stations to cater to sparsely populated areas. But the results were unsatisfactory considering that statutory benefits were provided. The creation of the Australian Broadcasting Commission (ABC) has changed the scenario. Australia has a dual broadcasting system that will provide services to the entire country (Inglis, 1983). This breakthrough is important in promoting the industry.

During the 1940s, the Australian government noticed that expansions of broadcasting firms were slow. There were several cancelled permits and license applications were also stalled. The government, however, managed to the power of output for broadcast firms covering huge markets. The demand for stations has increased exponentially. ABC failed to implement measures to meet this growing need. But there are some positive aspects that can be attributed to these initiatives. The influx of broadcasting gadgets has fuelled the creation of more broadcast stations.

Proposed Amendment

The amendments to the Broadcasting Services Act are provided in three phases. The first change took effect last February 2007, the second part will be applied upon Proclamation, and the final stage is scheduled for implementation on January 2009. There are several elements associated with the proposed changes. Given the wide discussion provided for the subject, it is best to focus on the main issues being presented. The purpose of the change is to boost the industry and make it more competitive (Australian Government, 2006).

The first aspect of the amendment discussed concerns media diversity. The amendment stated that operations will start at 6 AM and end at 12MN during the same day. The metropolitan license area is classified as the location situated within the General Post Office of capital cities. The amendment also covers the naming of the broadcast firms and schemes being manifested. Stations are being penalised when the desired criteria are not satisfied. Broadcast companies have to accumulate 5 points to ensure permits from the government. Otherwise, the license to operate will be revoked.

As regards content, the new law states that 50% of the programs have to be the same during the first 6-month period specified. But advertising, service, promotion, news, and other materials are exempted from the mentioned section. The law bars individuals and groups from owning 50% of interests in television, radio, and print operating in one area. Moreover, broadcast firms are disallowed to make transactions on the commencement day. Penalties of as high as 20,000 units will be imposed. But there are also penalties that result in civil liabilities. The law advises broadcast companies to seek permission for ACMA.

To further improve the monitoring system, ACMA will require broadcast groups to register. ACMA is tasked to form the Register of Controlled Media Groups. The register is operated electronically and made available through the Internet. It is important to note that the Register is not a legislative mandate. But broadcast groups are required to comply starting February 2007. The media groups have to submit their names and controller identity. In return, AMCA will provide a distinct control number for identification.

There are some disclosure items that are required to be provided. For instance, the amendment seeks to reveal the other dealings made by broadcast firms in other locations. In the event that a radio station is related to a television station, such a relationship has to be stated. The radio station has to broadcast its interests to other media outlets. The broadcast has to be done in high frequency. This is to ensure that the audience is well informed of the situation. In most instances, the broadcast has to manifest at least 1 hour during the primetime hours or as specified by ACMA.

In terms of the content broadcasted to the audience, the law has provided some important insights on the matter. For local news, broadcast outlets have to deliver 5 slots. But the government can further extend this requirement through legislation. Stations also need to deliver news on the weather at least 5 five during the daily broadcast. For community services, the minimum broadcast for such items is 1 each day. For emergency warnings, there are no limits as the situation warrants. The periods specified earlier are subject to changes by government rulings and legislation.

Local broadcast companies are required to submit content plan for events. This is made 90 days prior to the broadcast of the event. Once the plan is not provided, ACMA will determine the terms to provide other alternatives. Outlets are required to provide a backup plan for the events. Upon approval of the new draft, the old draft plan will cease to exist. ACMA has the capacity to approve or disapprove plans. This function is further strengthened by AMCA’s capacity hold the permits when necessary.

Discussion

The impact of the amendment in the Broadcast industry is focused on the ownership and content. As discussed by Brown and Cave (1992), broadcast in Australia has been historically regulated. There are rules when it comes to ownership and methods of financing. Despite these regulations, some owners managed to control other media outlets. As expected the role of the government is to control any signs of monopoly. Aside from ownership restrictions, there are rules on entry in the industry. Individuals are provided with strict guidelines before planning to penetrate industry.

The amendments provided in the new legislation are important. This will define the role of the government and specify the responsibilities of broadcast firms. There have remarks made over the laxity of regulations when it comes to ownership (Manning, 2006). But the Australian government wants to emphasise that laws are available to close the gaps. These regulations are motivated by several aspects. Although the government is more focused on the economic views, it is undeniable that there are social influences in these regulations.

The Australian government has been efficient in zeroing on certain aspects instead of focusing on the entire law. Through this measure, the process of regulating the industry will be effectively manifested. Some policies have failed because the focused of these regulations are general. Specific changes are necessary to gradually change the schemes. After these modifications, the government can focus on other aspects of the law.

Conclusion

The role of the government in ensuring equitable processes is established. Without the government groups with more capacity will control the industries. The amendments done to the Broadcast Act is important in many ways. The changes are designed to further improve the competition in the market. The policies are made to maintain the role of broadcasting as source of national pride.

References

Barro, R.J., (1990), Journal of Political Economy, “Government spending in a simple model of endogenous growth,” Pp. 103-125.

Brown, A. and Cave, M., (1992), The Economic Record, “The economics of television regulation: A survey with application in Australia”.

Coase, R. (1960), Journal of Law and Economics, “The problem of social cost,” Pp. 1-44.

Day, P., (1994), The Radio Years – A History of Broadcasting in New Zealand – Volume One, Auckland: Auckland University Press.

Gwartney, J, Lawson, R., and Holcombe, R., (1998), The Size and Functions of Government and Economic Growth, Pp. 1-32.

Hilliard, R., (1985), Radio Broadcasting – An Introduction of Sound Medium, “History and regulation,” New York: Longman, Pp. 1-33.

Inglis, K., (1983), This is the ABC – The Australian Broadcasting Commission, Melbourne – MUP, Pp. 2-50.

Livingston, K., (1994), Australian Historical Studies, “Anticipating Federation: The Federalising of Telecommunications in Australia,” Pp. 97-118.

Manning, E, (2006), International Journal of Economic Policy Studies, “Local Content Policy in the Australian Television Industry”.

Australian Government, (2006), Broadcasting Service Amendment, (Media Ownership) Act 2006, Pp. 1-55.

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