Additional comments from Coalition Senators

1.1Coalition Senators note concerns about the high cost and the slow timing of the Labor Government’s response to the shutdown of the Mildura Digital Television service, which was to offer access to the VAST satellite service as an alternative viewing option.

1.2As the submission from Free TV highlights, local residents face the prospect of having to pay a significant cost for connection to the VAST service:

VAST installation comes at substantial cost to householders and means householders may not get their local news or advertising. There are questions about whether expanding VAST access to Mildura or other areas that lose access to terrestrial broadcast in the future will deliver real benefits.[1]

1.3Free TV also warns about the risk of higher costs of installing a VAST satellite dish, a VAST converter box plus the installation:

This is not cheap and Free TV is unaware of how local installers in the Mildura area might choose to price VAST installation. .... A typical all-up charge of around $800 has been referred to in this submission and in previous policy discussions, but individual installers may choose to ask much more.[2]

1.4Coalition Senators are alarmed that in the middle of the Labor Government’s cost-of-living crisis, their solution for Mildura and Sunraysia residents—who are reported to be the first in the nation to lose a digital television service[3]—is that they have to pay close to $1,000 to keep watching the Ten network's programs. These regional Victorians are left wondering about the equity of their status as regional Australians, particularly given the Labor Government provided $32.9 million in funding assurance so regional Western Australian viewers, could keep viewing Ten content there.[4]

1.5It should be remembered that the Labor Government was warned of the looming shutdown of Mildura Digital Television in at least early May 2024[5] and were slow to respond. The Hon Michelle Rowland MP, Minister for Communications introduced this Bill into Parliament just four days before the Mildura Digital Television signal was turned off.[6]

1.6We draw attention to the evidence in the submission from ACMA, which has advised that any decision on the VAST proposal would still be months away, and ACMA is saying:

Because a service deficiency declaration is a legislative instrument, the ACMA is required to undertake such consultation as it considers appropriate, and is reasonably practicable, prior to making such a declaration. Following a consultation period, the ACMA would review submissions received and decide whether to make the declaration. A process of this nature may take 3-4 months.[7]

1.7Coalition Senators also note that Free TV, in their submission, called for an immediate suspension of the Commercial Broadcasting Tax (CBT), with a view to it being abolished by legislative amendment. Free TV said that across all commercial broadcasters the tax raised more than $46 million per annum.

… it is incumbent on Government to act immediately in the interests of fairness and the sustainability of the sector.[8]

1.8We note the Coalition announced in June 2023 that it would scrap the CBT, and urged the Labor Government to follow suit.The Coalition had also significantly reduced the cost of the spectrum charge, as part of reforms it passed in 2018.[9]

Footnotes

[1]Free TV Australia, Submission 1, p. 3.

[2]Free TV Australia, Submission 1, p. 11.

[3]Emile Pavlich, ‘Mildura Digital Television demise signals critical point for free-to-air regional Australia broadcast services’, ABC News, 6 July 2024, https://www.abc.net.au/news/2024-07-06/mildura-television-channel-10-signal-shut-down-digital-streaming/104058822 (accessed 8 August 2024).

[4]Sam Buckingham-Jones, ‘Network Ten wavers on turning off broadcast across swath of WA’, Australian Financial Review, 3 July 2024, https://www.afr.com/companies/media-and-marketing/network-ten-wavers-on-turning-off-broadcast-across-swathe-of-wa-20240701-p5jq1u (accessed 8 August 2024).

[5]Sam Buckingham-Jones, ‘Seven, WIN turn off ‘loss making’ Ten in Mildura’, Australian Financial Review, 8 May 2024, https://www.afr.com/companies/media-and-marketing/beginning-of-the-end-of-country-free-tv-as-ten-goes-dark-in-mildura-20240508-p5gp0u (accessed 8 August 2024).

[6]Hon Michelle Rowland MP, Minister for Communications, ‘New legislation to support access to broadcast television in regional Australia’, Media release, 26 June 2024, https://minister.infrastructure.gov.au/rowland/media-release/new-legislation-support-access-broadcast-television-regional-australia (accessed 8 August 2024).

[7]Australian Communications and Media Authority, Submission 2, p. 1.

[8]Free TV Australia, Submission 1, pp. 15–16.

[9]Max Mason, ‘Government considers more than $100 million in TV licence fee relief’, Australian Financial Review, 30 April 2017, https://www.afr.com/companies/media-and-marketing/government-considers-more-than-100-million-in-tv-licence-fee-relief-20170428-gvujt9 (accessed 8 August 2024).