Commercial Broadcasting – Preserving the Public Interest

Abstract

During 1999 and 2000 considerable attention was focused on an inquiry conducted by the broadcasting regulator, the Australian Broadcasting Authority ('ABA'), into the commercial arrangements of a number of commercial radio presenters associated with talkback radio. In May 1999, an Australian Broadcasting Corporation ('ABC') program, Media Watch, alleged that, John Laws, a presenter with Sydney Radio Station 2UE, had financial arrangements in place with an organisation representing the major Australian banks, the Australian Bankers' Association. It was alleged that the effect of these arrangements was that Laws would broadcast positive comments about the banks. These comments were independent of any paid advertising run by the station for the banks or the Bankers' Association. Following the Media Watch revelations, the ABA announced that it would conduct an inquiry1 into the allegations in order to determine whether there had been any breach of the Broadcasting Services Act 1992 (Cth) ('BSA') or the licence conditions or codes of practice to which Radio 2UE was subject. Following further allegations, the ABA, between July 1999 and November 1999, extended its inquiry to cover another 2UE presenter, Alan Jones,2 and presenters from four other radio stations: 6PR Perth, 5AD (also known as 5ADD) Adelaide, 5DN Adelaide and 3AW Melbourne. The ABA concluded its inquiry in March 2000 with the publication of its final report.3 As a result of its investigations the ABA found that each of the radio stations (with the exception of 5AD) had been in breach of the Commercial Radio Codes of Practice, Code 2 (regulating news and current affairs programs) and Code 3 (regulating advertising). In addition, Radio 2UE was in breach of a licence condition concerned with the broadcasting of political matter. In response to these findings, the ABA imposed new standards applicable to the whole of the commercial radio broadcasting industry. The standards require disclosure of commercial arrangements, separation of