Broadcasting Services (Australian Content) Standard Variation 2010 (No. 1) Explanatory statement |
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November 2010 |
LEGISLATIVE INSTRUMENTS ACT 2003
Section 26 – Explanatory Statement
Broadcasting Services (Australian Content) Standard Variation 2010 (No. 1) made under the Broadcasting Services Act 1992
On 19/11/10, the Australian Communications and Media Authority (the ACMA) determined the Broadcasting Services (Australian Content) Standard Variation 2010 (No. 1) (the ACS Variation), which varies the Broadcasting Services (Australian Content) Standard 2005 (the ACS). The ACMA’s determination of the ACS Variation was made under subsection 122(1) of the Broadcasting Services Act 1992 (the BSA) and commences on the day after it is registered on the Federal Register of Legislative Instruments (FRLI).
The ACS
Section 122 of the BSA requires the ACMA to determine standards for commercial television broadcasting licensees (licensees) that relate to the Australian content of programs.
As required by section 122 of the BSA, the ACMA determined the ACS. The objects of the ACS are to promote the role of commercial television broadcasting services in developing and reflecting a sense of Australian identity, character and cultural diversity by supporting the community’s continued access to television programs produced under Australian creative control.
The ACMA identified that in setting minimum drama score and broadcast hour quotas for Australian programs, the ACS previously made no allowance for new licensees that commence broadcasting part-way through a calendar year or three year quota obligation period. The ACS Variation amends the ACS to make allowance for those circumstances.
Consultation
Before deciding to determine the ACS Variation, the ACMA took the following steps by way of consultation:
On 1 October 2010, the ACMA announced on its website proposed technical amendments for new licensees starting part-way through a reporting period to pro-rata their content quotas. The ACMA posted a copy of the proposed ACS Variation and Explanatory Notes on its website and sought public comment by 22 October 2010.
On 1 October 2010, the ACMA also wrote to all licensees seeking comment on the proposed ACS Variation and Explanatory Notes by 22 October 2010.
The ACMA did not receive any formal submissions by 22 October 2010 in response to the proposed ACS Variation and Explanatory Notes.
Intended impact and effect of the ACS Variation
Sections 10, 12, 13, and 16 of the ACS require licensees to meet minimum drama score and broadcast hour quotas during calendar years and three year obligation periods. The ACS Variation amends sections 10, 12, 13 and 16 of the ACS to permit new licensees that commence broadcasting part-way through these obligation periods to meet reduced quotas. Quotas will be reduced proportionately, having regard to the period in which those licensees broadcast, or are required to broadcast, television programming during the obligation periods.
Compliance with the ACS is a condition of commercial television broadcasting licences (see clause 7(1)(b) of Schedule 2 to the Broadcasting Services Act 1992). The ACMA considers these variations necessary to address requirements in the ACS that might otherwise be unreasonably burdensome on some licensees.
Commences to provide a service
The ACS previously cast obligations on licensees without regard to whether they had commenced broadcasting television programs, or reached the date by which they were required to commence broadcasting television programs. The ACS Variation inserts section 8A of the ACS which, read with the definition of “commences to provide a commercial television broadcasting service” in section 6B of the ACS, mean that the obligations in Parts 5 to 9 of the ACS apply to licensees allocated a licence after 30 December 2005, from the earlier of the following dates:
the date on which the licensee commences broadcasting;
the date on which the licensee is required to commence providing a commercial television broadcasting service under the licensee’s licence conditions.
The pro rata formula
If a licensee commences to provide a commercial television broadcasting service after the first day of an annual or triennial quota period, then the licensee must comply with the first of its annual or triennial quota obligations (under sections 10, 12, 13, and 16 of the ACS) on a pro rata basis.
The ACS Variation’s amendments to sections 10, 12, 13, and 16 are intended to ensure that regard is had to when licensees commence broadcasting, when determining the minimum drama score and broadcast hour quotas which must be achieved in the first annual or triennial quota obligation periods. The ACMA considers that it would be impractical to otherwise require licensees to broadcast the entire minimum drama score and broadcast hour quotas for an annual or triennial quota obligation period, in circumstances where they commenced broadcasting part-way through that period.
The ACS Variation introduces a pro rata formula in section 6C of the ACS. The pro rata formula is intended to be used by licensees that commence broadcasting, or are required to commence broadcasting, part-way through an annual or triennial quota obligation period, to calculate the minimum drama score and broadcast hour quotas required to be broadcast for that period. The pro rata formula reduces the minimum drama score and broadcast hour quotas in a way that is proportionate to the period for which the new licensee is broadcasting, or is required to broadcast.
For example, Licensee A was allocated a commercial television broadcasting licence on 4 February 2010 and commenced broadcasting television programs on 1 November 2010. Using the pro rata formula, in accordance with section 16(2) of the ACS, the minimum number of hours of first release Australian programs that are documentary programs that Licensee A is required to broadcast in 2010 is calculated as follows:
Therefore, in 2010, Licensee A must broadcast at least 3.342464 hours of first release Australian programs that are documentary programs.