everyone’s€¦ · in Sydney’s Domain with ABC presenter Geraldine Doogue as MC. Bush Telegraph...

annual report

A U S T R A L I A N B R O A D C A S T I N G C O R P O R A T I O N

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everyone’s

everyaustralian

Annual Report 2002-03

Every Australian

Australian identity is the product of a continuous national conversation. The ABC brings to that conversationa comprehensive suite of diverse andhigh quality programming that reflectsAustralia and Australians.

Australian StorySince 1996, AustralianStory has presented thestories of inspiring andsometimes unusualAustralians ‘narrated’ by the subjectsthemselves. The program emphasisesregional and rural Australia and thepositive aspects of contemporarylife and people.

Australians TogetherFollowing the Bali bombblasts in October 2002,the ABC broadcastAustralians together: A Ceremony of Tribute live across thenation to commemorate the victims ofthe bombing. The ceremony was held in Sydney’s Domain with ABC presenterGeraldine Doogue as MC.

Bush TelegraphABC Radio National’sBush Telegraph providesan entertaining look atrural and regional issuesaround Australia, featuring unique socialcommentary and rural news headlines.In 2002-03, Bush Telegraph’s ‘Grow YourOwn’ project allowed listeners to debatethe best way to manage a cottoncrop which was grown and picked in accordance with their instructions in a Queensland paddock.

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Contents

Letter of Transmittal 1

Corporate ReportABC Vision, Mission and Values 2Significant Events in the Past Year 2ABC Programs and Services 5Board of Directors 10Board of Directors Statement 12ABC Advisory Council 17The Year Ahead 18

OverviewABC Audiences 22Corporate Governance 35Financial Summary 39Corporate Plan Summary 43Sydney Accommodation Project 45ABC Executive Directors 46ABC Organisation Chart 49

ABC Divisional ReportsRadio 52Television 58New Media and Digital Services 65International Broadcasting 70News and Current Affairs 72Production Resources 76Development 79Enterprises 82Content Rights Management 85Finance and Support Services 88Human Resources 91Corporate Affairs 95Technology and Distribution 98

Summary ReportsCorporate Plan Performance Summary 108Outcomes and Outputs 117ABC Subsidiaries 126

Independent Audit Report 130Financial Statements 131

Appendices 167

3 October 2003

Senator the Hon Richard AlstonMinister for Communications, Information Technology and the ArtsParliament HouseCANBERRA ACT 2600

The Board of the Australian Broadcasting Corporation is pleased to presentthe Annual Report of the Corporation for the year ended 30 June 2003.

The report has been prepared in accordance with the requirements of theCommonwealth Authorities and Companies Act 1997 and the Australian Broadcasting Corporation Act 1983.

Office ofDonald McDonald AO

Chairman

ABC Ultimo Centre700 Harris StreetUltimo NSW 2007Australia

GPO Box 9994Sydney NSW 2001

Tel. +61 2 8333 5363Fax. +61 2 8333 2967abc.net.au

Significant Events

July 2002The last episode of the first series of Kath and

Kim attracted the highest number of viewers ever

for an Australian comedy series on the ABC.

The ABC broadcast Australia’s first interactive

television program, the BBC’s Walking With

Beasts Interactive series, through its services

on the Austar and Optus Interactive platforms.

ABC New Media became ABC New Media and

Digital Services to reflect the Division’s role in

driving digital strategy for the Corporation.

ABC NewsRadio extended transmission

to Gosford on the Central Coast of

New South Wales.

The ABC celebrated its seventieth anniversary

with special radio programs and outside

broadcasts in all States and Territories.

August 2002ABC Television inaugurated ‘Doing Business

with ABC Television’ information briefings for

the film and television industry, including ABC

Editorial Policies Workshops.

Tenth anniversary of Bananas in Pyjamas, the

most successful ABC program sold to overseas

television markets.

Radio Australia celebrated 60 years of

broadcasting to Indonesia. The Indonesian

Language Service has an estimated annual

audience reach of 6.5 million listeners in

Indonesia and can be heard on 30 local

Indonesian stations.

ABC Local Radio broadcast over 120 hours

from the Commonwealth Games in Manchester.

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VisionValued and integral to Australia’s culture.

MissionGuided by the ABC Charter to engage our audiences

with an independent, distinctive and appealing mix

of programming and content, delivered via multi-

platform services.

Our Corporate ValuesWe will manage and conduct our business in an effective,

efficient and ethical manner, according to values we share

in the Corporation.

We value• The ABC - acting always to support the role of

a national public broadcaster in delivering valued

outcomes for the Australian community

• Editorial Excellence - aspiring to the highest standards

of accuracy, impartiality and independence, in reflecting

a balanced and broad range of views and interests

through adherence to editorial policies and guidelines

• Innovation and Creativity - striving for excellence in the

development and presentation of distinctive information

and cultural programming content

• Universal Access - ensuring that all Australians can

access services that provide the knowledge required

in a modern information-based society

• Our People - providing opportunities for our people to

grow, personally and professionally, during their time

with the Corporation

• Good Governance - demonstrating our accountability

for the efficient and effective use of public resources

• Shared Commitment - accepting the shared obligation

to act responsibly and with a commitment to fairness

and justice

• Courage - encouraging the leadership and vision to adapt

to change with flexibility, integrity and decisiveness.

ABC Vision,Mission and Values


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September 2002Radio National commenced 24 hour audio

streaming online.

ABC New Media and Digital Services launched

a new online gateway, Rollercoaster, aimed at

the 8-14 year age group.

ABC Events staged Gardening Australia Live

in Sydney.

The ABC Classics album Sonatas and

Fantasies by Slava Grigoryan won the Best

Classical Album Award at the 2002 Australian

Recording Industry Association Awards.

October 2002ABC Radio and Television networks

comprehensively covered the Bali bomb

blasts and their aftermath.

ABC Television presented Australians Together:

A Ceremony of Tribute, commemorating the

victims and families and all affected by the

Bali bombing.

The new ABC Shop Online was relaunched

after a significant makeover.

Radio Australia’s Chinese Language Service

delivered an historical joint broadcast from

Shanghai, in partnership with major local station

East Radio, to an estimated audience of

100 million.

Triple J launched Break The Music Drought

initiative.

New ABC Shops were opened in Wantirna

South, Victoria, and Eastgardens, New

South Wales.

New Media and Digital Services ran a successful

free trial of outbound Short Message Service

(SMS) on mobile phones for the audience of

television comedy CNNNN.

November 2002ABC Triennial Funding Submission 2003-06

provided to Government.

The ABC Ultimo Centre in Sydney

officially opened by the Prime Minister.

The ABC’s first Internet radio station, DIG, was

launched at the Queenscliff Music Festival.

The inaugural Radio Australia Asia-Pacific Lecture

Series, produced with leading universities,

broadcast throughout Asia and the Pacific on

Radio Australia and across Australia on the

ABC’s Radio National and NewsRadio networks.

December 2002Australia’s first interactive television documentary,

Long Way to the Top: Live In Concert iTV, went to

air through the ABC’s services on Austar’s digital

satellite platform to around one million viewers.

January 2003ABC Television news and daily current

affairs programs commenced production

in Ultimo, Sydney.

666 ABC Canberra, and ABC Goulburn Murray

and ABC Gippsland in Victoria provided critical

bushfire coverage in their regions.

The ABC launched weekend television news

bulletins in the ACT and the Northern Territory.

Radio Sport provided a comprehensive coverage

of the Australian Open Tennis on Local Radio.

Corporate


Significant Events (continued)

February 2003ABC Radio acquired the non-commercial rights

from Macquarie Broadcasting Network to provide

comprehensive radio coverage of the 2004

Athens Olympic Games.

March 2003The Prime Minister’s Address to the Nation

regarding the Government’s commitment of

Australian defence forces to the military action

in Iraq went to air live across Australia on Local

Radio and ABC NewsRadio.

ABC News and Current Affairs undertook one of

the most comprehensive coverage deployments

in ABC history for the war between Iraq and

the US-led coalition, with reporters and crews

operating from numerous locations throughout

the Middle East.

War in Iraq provided a major focus for all ABC

networks. ABC Online received its highest level

of traffic ever, with 1.3 million unique Australia

users for the month. Over 18 million pages

of content were requested in just one week

following the announcement by the US of the

commencement of the war on Iraq.

ABC Magazines published the first issue of

the pre-teen magazine RC Rollercoaster.

April 2003For the thirtieth year, ABC Television covered

Anzac Day marches with live broadcasts from

each State and Territory. Anzac Day was also

commemorated across ABC Radio.

Radio Australia opened its first 24-hour FM

service - 92.6FM, in Fiji - with a live broadcast

of the Pacific Beat program from Suva.

The 24-hour relay is run in cooperation

with Radio Fiji.

ABC Events staged the inaugural Gardening

Australia Live Queensland in Brisbane.

May 2003ABC Television and the Development

Division conducted a two-day workshop on

the presentation of history on television involving

over eighty historians and program makers.

Radio Australia broadcast its Asia-Pacific

program live from Bangkok and Manila - the

first time the program had been broadcast

live from Asia.

558 ABC Great Southern at Wagin, Western

Australia commenced on air with a local

Breakfast program.

A Radio National and Radio New Zealand joint

broadcast, Australasia Talks Back, generated

significant media coverage in both countries.

June 2003Sounds Like Techno, a unique online

documentary exploring techno music, was

launched. It was produced by New Media

and Digital Services with the assistance of the

ABC-Film Victoria Multimedia Production Accord.

The last television program was produced out

of the Gore Hill production centre in Sydney.

107.9 ABC Ballarat commenced on air as the

ABC’s 59th Local Radio station.

ABC Magazines launched limelight, the new

monthly ABC arts and entertainment magazine.

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ABC Programs and Services

In achieving its vision, the ABC delivers

comprehensive programs and services which

reflect the interests and aspirations of diverse

Australian communities.

ServicesABC Radio

• four national radio networks comprising

Radio National, ABC Classic FM, Triple J,

and ABC NewsRadio (on the Parliamentary

and News Network)

• DIG, a music-based service available via

the Internet and digital television

• nine metropolitan radio stations in capital

cities and Newcastle

• 50 regional radio studios throughout Australia

ABC Television

• national analog television service

• digital television with analog simulcast

from 52 transmitters around Australia

• digital multichannel services from 52

transmitters around Australia

• local television in each State and Territory

ABC New Media and Digital Services

• ABC Online, serving more than 1 268 300

pages of content in narrowband and

broadband

• content and services on emerging platforms

including interactive television, SMS, mobile

services for 3G phones and other wireless

devices

ABC Enterprises

• 38 ABC Shops

• 82 ABC Centres throughout Australia

• Customer Delivery Service (fax, telephone

and mail orders) and ABC Shop Online

International Broadcasting

• Radio Australia, an international radio service

broadcasting by short wave, satellite and

rebroadcast arrangements to Asia and

the Pacific

• ABC Asia Pacific, an international television

and online service broadcasting via satellite

and rebroadcast arrangements to Asia and

the Pacific

Programming

The ABC offers a distinctive range of programming

in 16 major genre categories and six factual

sub-genres across its services:

• Arts and Culture

• Business and Finance

• Children’s

• Comedy

• Current Affairs

• Drama

• Education

• Factual - Contemporary Life; Health;

Indigenous; Law, Consumer Affairs and

Media; Special Events; and Topical Issues

• History

• Light Entertainment

• Music

• News

• Regional and Rural

• Religion and Ethics

• Science, Technology, Environment

and Natural History

• Sport


Corporate

ABC Programs and Services (continued)

TransmissionThe ABC transmits its programs via:

• 963 terrestrial transmitters around Australia

for analog television services, including Self

Help and Community facilities, formerly

known as Broadcasting for Remote

Aboriginal Communities Scheme (BRACS)

• 931 terrestrial transmitters around Australia for

analog radio services, including Self Help and

Community facilities, formerly known as BRACS

• 52 terrestrial transmitters around Australia

for digital terrestrial television services

• a digital satellite service to remote homesteads

and communities within Australia carrying

ABC analog television, Radio National,

ABC Classic FM and Triple J, eight different

regional radio services (two each for

Queensland and Western Australia, one

each for New South Wales, South Australia,

Victoria and the Northern Territory), and ABC

NewsRadio and Parliamentary broadcasts on

the Parliamentary and News Network

• ABC Television retransmitted via cable

subscription services on Foxtel and Optus

Vision, and satellite subscription service

on Austar

• ABC Asia Pacific transmitted on the

PanAmSat 2 and PanAmSat 8 satellites,

and via rebroadcasts in countries across

Asia and the Pacific

• Radio Australia services via shortwave

transmission from Brandon in Queensland,

Shepparton in Victoria, Darwin, Singapore,

Taiwan and the Marianas; the PanAmSat

2 and PanAmSat 8 satellites; and via

rebroadcasts on several stations and

outlets in countries across Asia and the

Pacific, Europe and North America

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ABC Broadcasting Coverage

Proportion of the Australian population able to receive transmissions from ABC broadcasting services

Australia NSW/ACT Vic Qld WA SA Tas NT

Analog Television 98.13% 99.22% 98.83% 97.03% 97.01% 98.51% 95.94% 78.84%

Digital Television 82.61% 80.49% 97.52% 70.32% 76.14% 85.63% 89.89% 54.01%

Local Radio 99.34% 99.69% 99.78% 99.50% 98.77% 99.63% 98.43% 80.93%

NewsRadio 77.05% 79.59% 82.54% 65.16% 76.50% 91.07% 47.60% 53.37%

Radio National 98.42% 99.12% 99.46% 97.83% 96.38% 99.54% 95.72% 79.60%

Classic FM 95.57% 97.49% 97.96% 94.31% 89.62% 95.04% 91.96% 67.18%

Triple J 95.10% 97.10% 97.92% 93.20% 88.76% 94.77% 91.96% 67.18%

Domestic Shortwave 0.97% 0.00% 0.00% 0.00% 0.00% 0.19% 0.00% 86.45%

Note: population figures derived from Australian Bureau of Statistics 2001 Census data.

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ABC Services Throughout Australia

Corporate

For audiences, the ABC is more than the shows they watch, the programsthey listen to or the websites they visit.

BushfiresWhen bushfires sweptthrough Canberra inJanuary 2003, radio 666ABC Canberra becamethe focal point for the local community,providing information and critical coverageduring the height of the crisis. ABC Radioalso extensively covered bushfires inVictoria in January and February. These services received enormous public support and appreciation. TheABC organised concerts in Canberraand Myrtleford in Victoria to support thebushfire affected communities.

ABC TrailerThe ABC’s On The Road Exhibition Trailerappears at communityevents around thecountry, offering the Australian public aninteractive, hands-on experience of ABCprograms, characters and services. Inten months, the Trailer visited 14 sites in five states and was seen by anestimated 200 000 people.

The BackyardThe Backyard on ABCOnline is audiences’gateway to the websitesof each of the ABC’s 59Local Radio stations. From Bunbury to Bundaberg, the sites build onlinecommunities, encouraging interactionand input while providing a window onlocal regions. In 2002-03, The Backyardattracted more than 30 million pageaccess nationally, of which more than45% were regional and rural users.

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Every Community

ABC Board of DirectorsDonald McDonald AOAppointed ABC Chairman in July 1996,

Donald McDonald was re-appointed

Chairman on 24 July 2001 for a second

five-year term.

Donald McDonald has been involved in the

administration of arts enterprises for over 30

years, including Sydney Theatre Company,

Musica Viva Australia and Vogue publications.

He was chief executive of the Australian

Opera for ten years until his retirement in

December 1996.

He is Chairman of The Really Useful Company

(Aust), a Director of Focus Publishing, and a

member of the Board of the University of New

South Wales Foundation.

Judith SloanAppointed a Director from 9 August 1999 for

a five-year term and Deputy Chairman from

8 September 2000 until 8 September 2004.

Professor Sloan is a part-time Commissioner

of the Productivity Commission, a Director of

Santos, Mayne, SGIO Insurance, and Chair

of SGIC Holdings.

Russell BaldingAppointed Managing Director 29 May 2002.

Russell Balding was previously Director of

ABC Funding, Finance and Support Services

and Deputy Managing Director. He holds a

Bachelor of Business Studies and a Diploma

of Technology (Commerce), and is a Fellow

of CPA Australia. Mr Balding has had a

distinguished career in public sector financial

management and administration, having

held senior financial management positions

within major New South Wales public sector

organisations. He has had extensive experience

in financial and executive general management,

accounting, auditing and capital works

programming in a number of organisations.

Ramona KovalStaff elected Director from June 2002 for

a two-year term.

Ramona Koval presents and produces the

weekly ABC Radio National program Books

and Writing, and has co-presented Australia

Talks Books, the monthly talk-back national

book club for the past two years. She is a

freelance columnist and newspaper feature

writer and is the author of the novel Samovar

and three books of non-fiction.

Ross McLeanAppointed a Director for a five-year term

from 9 August 1999.

Ross McLean is the Deputy Chief Executive

of the Chamber of Commerce and Industry

of Western Australia, Member of the Board

of Management of Western Australian

Municipal Self Insurance Scheme, Director

of Coventry Group, and Chairman of the

Board of Management of the Fremantle

Football Club (AFL).

John Gallagher QCAppointed a Director for a five-year term

from 9 December 1999.

John Gallagher’s practice involves civil and

criminal law. His experience encompasses

environmental, town planning, heritage, licensing,

broadcasting tribunal, valuation and general

commercial cases. He is the author of the

1990 Australian Supplement of Licensing Laws

in Halsbury’s Laws of England, and articles on

town planning practice, compensation and

licensing matters.

Leith BoullyAppointed a Director for a five-year term

from 11 October 2000.

Leith Boully, who lives in regional

Queensland, holds qualifications in rural

science and business studies. She is Director

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Section Heading

of the Boully Pastoral Company, Chair of

the Community Advisory Committee of the

Murray Darling Basin Ministerial Council and

Director of the Land and Water Resources

Research and Development Corporation.

Maurice Newman ACAppointed a Director for a five-year term from

20 December 2000.

Maurice Newman is Chancellor of Macquarie

University and the Chairman of a number of

companies and other bodies, including the

Australian Stock Exchange, Acrux, Tourism

New South Wales, Sydney Convention and

Visitors Bureau and the Australian Government’s

Financial Sector Advisory Council. His career

spans forty years in stockbroking and investment

banking, including as Managing Director in

1984, and Executive Chairman from 1985

until 1999 of what is now the Deutsche Bank

Group in Australia. He was also Chairman

of Deutsche Asset Management (Australia)

from 1997 until 2000.

Ron BruntonAppointed a Director for a five-year term

from 1 May 2003.

Dr Brunton is currently the Director of

Encompass Research, an organisation

engaged in anthropological and socio-

economic research, concentrating on native

title, Indigenous heritage, immigration and

environmental issues.

A widely published writer, Dr Brunton was a

fortnightly columnist for The Courier Mail from

1997 until 2003, and was a Senior Fellow at

the Institute of Public Affairs from 1995-2001.

He has published academic research papers

and books on a wide range of anthropological

issues and has lectured in anthropology at

various universities in Australia and the

University of Papua New Guinea.

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Donald McDonald, Judith Sloan, Russell BaldingRamona Koval, Ross McLean, John Gallagher Leith Boully, Maurice Newman, Ron Brunton

Retired Director

Michael Kroger retired from

the ABC Board in February 2003.

ABC Board of Directors


Corporate

Statement by ABC Board of DirectorsThe Past YearThis has been one of the most positive and

confident years for the ABC in its recent history.

Under the leadership of Managing

Director Russell Balding, the year has

been characterised by stability, coherence

and a renewed sense of shared purpose

throughout the Corporation. With a focus on

clearly articulated and communicated goals,

the ABC has continued to evolve as a more

flexible and dynamic, more accountable,

more efficient modern public broadcaster.

It was a year in which the ABC again proved

to be important when times are good, and

imperative in times of hardship.

ABC Radio services were essential for those

people enduring the worst days and weeks

of summer’s bushfires.

In the wake of the Bali bombing, when the

nation was brought together in grief and loss,

our common values were given expression

during the Australians Together remembrance

service on ABC Television.

The ABC was also relied upon for informative,

analytical reporting when there were tensions

abroad, such as the war in Iraq. The ABC’s

programs reflected the many differing views,

each held with equal conviction, that constituted

the wide range of Australian opinion on the war.

Listeners, Viewers, VisitorsAgainst a background of vigorous competition,

audience levels for ABC Radio, Television and

Online have continued to rise.

The relationship between the ABC and its

audience has no equal in the Australian media.

This bond has been built over the course of

the ABC’s seventy-one years. It is renewed

each day by the many different connections

the ABC makes through its presenters

and programs.

The ABC’s usefulness to the nation is being

constantly redefined, adapting the best of the

past to the needs of the present. It has kept

pace with the changing interests of its diverse

audiences by providing the richest range of

programming in the nation.

An express purpose of incorporation of the

ABC in 1983 was to modernise and streamline

the organisation. It is a tribute to how effective

this process has been that the ABC today

presents a far greater body of work with

significantly less funding in real terms than in

1983. This is also achieved with significantly

less funding than other international public

broadcasters against which the ABC can

relevantly be compared.

Accuracy and Impartiality:Editorial PoliciesThe Australian Broadcasting Corporation

Act requires the Board to, inter alia, ensure

that the gathering and presentation by the

Corporation of news and information is

accurate and impartial.

To that end, a program of continuing

reform was first articulated in the 1999

Board discussion paper The ABC: Of Unique

Value, and Value for Money. The Board has

overseen significant progress on two key

elements of that paper during the past year:

• editorial guidelines to ensure accuracy,

balance and impartiality; and

• complaints handling.

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Section Heading

To ensure the highest editorial standards the

Board’s Editorial Policies Committee, chaired

by John Gallagher QC, maintains Board

oversight of matters relating to editorial policies.

The revised ABC Editorial Policies were

introduced in August 2002.

The ABC Editorial Policies, which set out key

values and editorial principles, are intended to

be pre-emptive. Through training, continuing

education, and supervision at every link of

the editorial chain, their accent is first and

foremost on observance.

Yet it is not enough that observance of

policies is fundamental to program making.

When standards are not met, or the Code

is breached, complaints must be rigorously

examined with procedures that are clear

and decisions that are transparent.

In August 2002, the Corporation enhanced

significantly its complaints handling process.

Parliament can be assured that, in terms of

rigour and independence, these procedures

are now equal to, or better than, those of any

other public broadcaster. The policies and their

application will, however, be subject to the

process of continuous review.

The Corporate Governance section of this

Annual Report outlines other initiatives which

have improved not only the processes but also

public confidence in the handling of complaints

by the ABC.

Independence and IntegrityThe Board, as the trustee of the autonomy of

the ABC, also has a legal duty to maintain the

ABC’s integrity and its independence.

In doing so, it must be able to assure the people

of Australia through the Parliament, that the

ABC’s programs are not compromised by

commercial imperatives. It must also

be able to assure the Parliament that the ABC

remains editorially free of political interference.

For as long as the media has been the

dominant means of communication in Australian

society, attempts have been made to exert

influence over the ABC - these pressures are

as old as the institution itself. Given the power

of the media to shape impressions, that is

perhaps to be expected.

Equally, the Board is expected to protect the

integrity of the Corporation, ensuring that the

ABC does not yield to influence or allow those

pressures to affect its programming.

Australians seeking a deeper understanding

of events and policies affecting their lives have

traditionally relied upon the ABC’s specialist

news and current affairs programs. These are

the pre-eminent national forum for discussion

of issues that shape Australian life. In scrutinising

both Government and opposition parties with

the same degree of honesty and rigour, these

programs serve and promote a vibrant

participatory democracy.

The independence of the national public

broadcaster from Government has provided

generations of Australians with a sense of

security that must not be put at risk. There

is a capital of trust in the ABC that has been

accumulated over the years. The Board is

obliged to see that trust preserved.

Independence is both the essence of the

Corporation’s legitimacy and the means by

which that trust will endure. There need be

no doubt about the independence of the

Corporation, nor any doubt about the

integrity of its governance.

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Corporate

Statement by ABC Board of Directors (continued)

Technological TransformationWhen officially opening the ABC’s Ultimo

Centre in Sydney on 28 November 2002,

Prime Minister John Howard spoke of his

personal relationship with the ABC over the

years, and its central place in Australian life.

The Prime Minister thanked the ABC for ‘the

contribution it has made to building Australian

identity, to the stimulation of lively controversial

debate, and the role it has played in shaping

and challenging attitudes’. It was a significant

moment in ABC history, distinguished by a

prevailing sense of goodwill towards the ABC.

The Ultimo Centre was the realisation

of a long-term ambition of the ABC, from

Commission through to Corporation, to have

all its staff in each city working on the same

site. This was a formal recommendation of the

Dix Report of 1981. The Mansfield Report of

1996 also set out the need for the ABC to

examine its property holdings and leasings

with a view to rationalising them.

The Ultimo Centre’s new studios were

designed for Australia’s transition to digital

television, and to bring staff and the ABC’s

immense and invaluable archives together on

a single site. It was the largest relocation of

staff and facilities in the history of the ABC.

The consolidation program continues with

work in Canberra and Perth, and is driven not

just by the requirement of new technology for the

digital era and the complexities of cross-media

production, but also by the ABC’s continuing

improvements in operational efficiency.

A ten-year capital plan is being developed;

it will examine the changing asset base and

future capital requirements of the Corporation.

Beyond the Cities -Reflections of a Unique CountryMeeting the needs of regional Australia was

another key element of the Board’s program

of continuing reform, The ABC: Of Unique

Value, and Value for Money.

The richness of Australian life, culture and

character is expressed not just within the

densely populated urban centres, but throughout

all parts of the continent - in the agricultural

regions, the small towns along the coast, and

the remote and sparsely populated areas.

As the national broadcaster, the ABC aims

to reflect the many components of Australian

identity and accent, to reflect in its programming

the depth of cultural expression and talent in

the regions.

National Interest Initiatives funding, provided

by the Government for the four-year period

2001-05, has enabled the ABC to provide

many valuable new services and facilities

for rural and regional Australia. New radio

studios were established in Wagin, Western

Australia and Ballarat, Victoria.

Through increased online content, new radio

programs and cultural activities - debates,

musical performances, short stories and

plays - over 400 program makers, writers

and musicians have published, produced and

broadcast new material to a national audience.

This programming brings the diverse experience

of non-metropolitan Australia to life on the

screen, on air, and online for Australians

in every part of the country. In doing so, it

adds to our common understanding.

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The National Interest Initiatives have also

enabled the ABC to increase its business

and financial reporting.

These services are entirely dependent on

the National Interest Initiatives funding, and

their continuation will be determined when

the Government reviews this special funding

in 2004.

ABC InternationalBroadcastingIn February 2003, an ABC International

Broadcasting Division was established, bringing

Radio Australia and ABC Asia Pacific television

into a single management structure.

While both services retain their unique editorial

components, the new structure brings the

benefit of greater coordination in marketing

and distribution.

Radio Australia’s use of partner stations which

broadcast Radio Australia programs direct to

their local listeners is an integral component of

its diverse transmission strategy. During the

year, the Asia-Pacific partner alliance grew to

180 stations in 29 countries - currently the

network includes 400 partners strategically

located throughout the Asia-Pacific region,

Europe, the Americas and Africa.

ABC Asia Pacific is unique in the international

broadcasting community, offering a diverse

range of quality television programming rather

than a single genre - such as movies, sport

or news. This programming includes news

and current affairs of regional relevance,

quality Australian or international drama and

documentaries and significant educational

programs including English learning content.

Eighteen months after its inception, ABC Asia

Pacific now has re-broadcasting arrangements

in 25 countries. Its footprint covers Japan,

China and Mongolia in the north; Myanmar

to the west; Indonesia and East Timor to the

south; and Papua New Guinea, the Solomon

Islands, Fiji and the Cook Islands in the east.

The ABC Board is also interested in exploring

opportunities to further extend this service,

including to the Indian subcontinent.

Triennial Funding 2003-06The ABC in its Triennial Funding Submission

2003-06 sought additional funds to continue its

current acclaimed work and to enlarge the

ABC’s contribution to national life. The proposals

were further determined by reference to

Corporate objectives of relevance, appeal

and distinctiveness, and the Charter.

The Submission included a chapter outlining

the financial pressures affecting the sustainability

of the Corporation’s programming output

and services.

Throughout the 2000-03 funding triennium,

the ABC drew on a number of one-off sources

of funds and savings to apply supplementary

funding to television programming, on a

non-recurrent basis. These non-recurrent

allocations helped to enrich the program

schedule through additional Australian

production and program purchases.

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Corporate

Statement by ABC Board of Directors (continued)

The ABC submitted that:

The Corporation has exhausted options for

the application of non-recurrent supplementary

funding, which will necessitate a reduction to

a sustainable, recurrent base level of activities

from 2003-04 (assuming no change in the

real level of the operational Appropriation in

the new triennium). This in turn will have an

impact on the level and mix of Australian

content to be produced and/or purchased,

as well as the ABC’s capacity to acquire

programs internationally and to compete for

viewer attention by promoting its services.

In 2001, the ABC launched two digital television

multichannels, ABC Kids and Fly, as a proof

of concept and as a demonstration of its

commitment to leadership and innovation in

the digital environment. Both channels were

subject to non-recurrent funding. The Triennial

Funding Submission said: ‘any continued

commitment to the ABC’s multichannels

would require the identification of a new

and/or on-going source of funds’.

Parliament did not provide the ABC with

additional funding in the May budget. Available

funding therefore is inadequate to maintain the

Corporation’s current levels of programs

and services.

On 26 May 2003, the Managing Director

announced that the ABC’s multichannel

television services, Fly and ABC Kids would

close on 30 June, and that a strategy of further

reductions to ABC services and programs

would be presented to the Board in the

months ahead.

Board CommitteesAn integral contribution to the work of the

Board and to the good governance of the

Corporation is made by the various Board

Committees. They deal with a wide range of

issues: Finance, Editorial Policies, Audit, the

Board Code of Practice, the ABC Advisory

Council and Executive Remuneration. Further

information is provided in the Corporate

Governance section of this Annual Report and

its appendices.

ConclusionIn 2002-03, the Board ensured that the

Corporation operated within the limits of

available resources and is satisfied that it has

fulfilled its duties as laid out in section 8 of the

Australian Broadcasting Corporation Act.

The Board commends this report to the

Parliament and the people of Australia.

Donald McDonald AO Chairman

Judith Sloan Deputy Chair

Russell Balding Managing Director

Leith Boully Director

Ron Brunton Director

John Gallagher QC Director

Ramona Koval Staff Elected Director

Ross McLean Director

Maurice Newman AC Director

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ABC Advisory Council The ABC Advisory Council is established

under the provisions of the ABC Act to

provide advice to the Board on matters

relating to broadcasting and television

programs of the Corporation.

The ABC Board appoints the twelve members

of the Council for a period of up to four years.

The public are invited to apply to join the Council

through promotions on ABC Radio, Television

and Online. This year Simon Andrews, Keith

Smith, Beverly Smallwood and Michael

Burgess joined the Council.

In 2002-03, the Advisory Council met three

times. It made 25 recommendations and 43

commendations.

This year the Council’s Workplan for the year

included subcommittees to consider Science

and Australian Drama. The History report

commenced last year is also being finalised.

During the year the Council presented

Subcommittee reports to the Board on Arts

and Sport, a News and Current Affairs issues

paper and a Youth Review Paper.

In July 2002, the Council met in Orange, New

South Wales, and held a series of community

consultations on youth programming, community

standards and regional news. Further work is

being developed on the paper on community

standards which followed this meeting.

Council has continued to make

recommendations to the Board on various

aspects of ABC programming and has had

meetings with ABC Executive Directors on

key areas including audience research,

radio, television and online.

The Chairman and Managing Director regularly

attend Council meetings. The Convenor of the

Council is also a member of the ABC Advisory

Council Board Committee and meets with the

Committee following each Advisory Council

meeting. The Board and the Advisory Council

held their regular annual meeting in October

2002. The Convenor of the Advisory Council

also met with the ABC Executive Directors.

A summary of the Council’s recommendations

and commendations for the year, together

with responses from ABC management is in

Appendix 17 (page 187).

Back row standing from left: Mr Simon Andrews, Mr Glyn Parry, Mr Phil Wood,

Ms Deborah Klika (Convenor), Mr Keith Smith, Ms Anita Turner and Ms Sascha Walkley.

Front row seated from left: Professor Michael Burgess, Sir John Yocklunn, Mrs Carole Miller,

Mr Jeff Heath and Ms Beverly Smallwood.


Corporate

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The Year AheadThe first year of the new funding triennium will

be one of consolidation as the ABC takes the

action necessary to operate at a sustainable

level of funded activities.

Closure of the ABC’s two digital television

multichannels is a setback. However, the

Corporation remains committed to the

long-term goal of participating fully in the

emerging digital media environment. For

the moment, the New Media and Digital

Services Division will prioritise its online

and other interactive services.

ABC Television and the News and Current

Affairs Division will also be required to

consolidate their levels of programming

activity while seeking to minimise the impact

on the fulfilment of Charter responsibilities

and on audiences and staff. ABC Radio

has less scope for reduction without a direct

impact on the viability of local and/or national

radio networks.

The Corporation will again seek operational

efficiencies from corporate and support

Divisions. In the coming year, the Managing

Director will complete management reviews of

particular operational Divisions, commenced

in 2002-03. However, the scope for budget

savings is limited because of the efficiency

gains previously achieved in support areas.

For example, corporate costs fell from 13%

of the ABC’s total expenditure in the mid-1990s

to around 8% in 2002-03.

From 1 July 2003, ABC Enterprises

responsibilities will be expanded to cover

all commercial activities such as retail,

publishing, program sales and facilities

hire. The Division will be striving to increase

appropriately the net revenue contribution

it makes available to support the ABC’s

Charter-based programs and services.

The Managing Director has also indicated his

intention to make a further Budget submission

to the Government in the hope of securing the

funding required for the ABC to better serve its

audiences throughout metropolitan, regional

and rural Australia.


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