Chapter 1


Chapter 1

Introduction

Conduct of the inquiry

1.1        On 30 September 2010 the Senate, on the recommendation of the Selection of Bills Committee, referred the provisions of the National Broadcasting Legislation Amendment Bill 2010 to the Environment and Communications Legislation Committee for inquiry and report by 16 November 2010.[1]

1.2        The committee advertised the inquiry on its website and in The Australian, and wrote to relevant organisations and associations inviting submissions. The committee received 6 submissions (see Appendix 1) and held one public hearing (see Appendix 2). The committee thanks submitters and witnesses for their contributions.

Description of the bill

1.3        The purpose of the bill is to amend the Australian Broadcasting Corporation Act 1983 (ABC Act) and Special Broadcasting Service Act 1991 (SBS Act) to implement a new merit-based appointment process for non-executive directors to the ABC and SBS boards. The bill will enshrine in legislation a merit-based selection process which the government initiated in October 2008.[2]

1.4        The bill will also re-instate the position of staff-elected director to the ABC Board.

Merit-based selection process

1.5        Schedule 1 to the bill makes provision for a merit-based appointment process for non‑executive directors to the ABC and SBS boards. The process has the following features:

  • A nomination panel will be established to conduct a competitive selection process and make recommendations to:
  • the Prime Minister with respect to the appointment of a Chairperson of the ABC Board; and
  • the Minister for Broadband, Communications and the Digital Economy with respect to the appointment of other non-executive directors.[3]
  • The nomination panel will consist of three or four part-time members appointed by the Secretary of the Prime Minister's Department for terms of up to three years.[4] The bill provides that the panel 'is not subject to direction by or on behalf of the Government of the Commonwealth'.[5]
  • The selection criteria for ABC and SBS board directors are to be determined by the Minister for Broadcasting, Communications and the Digital Economy by legislative instrument.[6] The bill retains the existing requirement that a person shall not be appointed to the ABC Board unless they have relevant experience in broadcasting, communications, management, financial or technical matters, or cultural or other relevant interests.[7]
  • The nomination panel will be required to:
  • publish advertisements inviting written applications for the position of non-executive director or Chairperson;[8]
  • undertake an assessment of the comparative suitability of applicants;[9] and
  • provide a written report to the relevant minister consisting of at least three candidates who are nominated for appointment.[10]
  • Prior to making a recommendation to the Governor-General with respect to the appointment of a Chairperson to the ABC Board, the Prime Minister is required to consult with the Leader of the Opposition.[11]
  • If a person not nominated by the nomination panel is appointed, the Minister or Prime Minister must table reasons for that appointment in each house of the Parliament.[12]

1.6        Schedule 1 also:

  • increases the maximum tenure of non-executive directors from five years to ten years;[13] and
  • provides that current or former members of Commonwealth, State and Territory Parliaments and senior political staff members are ineligible for appointment as a non-executive of either board.[14]

ABC Staff-elected Director

1.7        Schedule 2 to the bill reinstates the position of staff-elected director to the ABC Board. The position was abolished in 2006 by the Australian Broadcasting Corporation Amendment Act 2006.[15]

1.8        The staff-elected director will be a director of a Commonwealth authority for the purposes of the Commonwealth Authorities and Companies Act 1997[16] and have the same duties and obligations as the other ABC Board directors.[17]

1.9        There are two differences between the staff-elected director provisions prior to 2006 and the provisions proposed by the bill:

  • the bill does not propose to reinstate the position of deputy staff-elected director; and
  • prior to 2006, there was a requirement that where a matter being considered by the ABC Board relates to the terms and conditions of employment, the staff-elected Director was not required to declare a pecuniary interest in the matter.[18] A similar provision is not included in the bill.

Report structure

1.10      Chapters 2 and 3 of this report discuss evidence presented to the inquiry on the two key aspects of the bill:

  • merit-based selection of directors; and
  • reinstatement of the ABC staff-elected director.

1.11      The committee did not receive any evidence relating specifically to the position of the SBS. Accordingly, most of the discussion in this report focuses on the position of the ABC and makes the assumption that similar arguments apply to the SBS.

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