Broadcasting Services (Local Content on Regional Commercial Radio) Direction (No. 1) 2006

Administered by Department of Communications and the Arts

Legislation au F2006L03621 Not in force Legislative Instrument

Legislation content

 

Explanatory Statement

 

 

BROADCASTING SERVICES (LOCAL CONTENT ON REGIONAL COMMERCIAL RADIO) DIRECTION (NO. 1) 2006

 

 

Issued by the authority of the Minister for Communications,

Information Technology and the Arts

 

 

Purpose

 

This Direction requires the Australian Communications and Media Authority (the ACMA) to conduct an investigation into certain aspects of local content on regional commercial radio and an investigation into whether the definition of trigger event in proposed section 61CB to be inserted into the Broadcasting Services Act 1992 (BSA) by the Broadcasting Services Amendment (Media Ownership) Bill 2006 (the Bill) may lead to unintended consequences for regional commercial radio licensees. The ACMA must report its findings of these investigations to the Minister for Communications, Information Technology and the Arts (the Minister) by 30 June 2007 in respect of the local content levels investigation and 31 March 2007 in respect of the trigger event investigation.  

 

Background

 

The provision of ‘appropriate coverage of matters of local significance’ is one of the objects of the BSA (paragraph 3(1)(g)). The promotion of the availability to audiences throughout Australia of television and radio programs about matters of local significance is a new object of the BSA inserted by proposed paragraph 3(1)(ea).
 

Under paragraph 8(2)(a) of Schedule 2 to the BSA, commercial radio broadcasters are required to:

 

provide a service that, when considered together with other broadcasting services available in the licence area of the licence (including another service operated by the licensee), contributes to the provision of an adequate and comprehensive range of broadcasting services in that licence area.

 

The level of local content on regional commercial radio services was the subject of Local Voices: an Inquiry into Regional Radio, by the House of Representatives Standing Committee on Communications, Transport and the Arts which reported in September 2001.  This Inquiry identified concerns arising from levels of consolidation of ownership in the regional commercial radio industry, the loss of independently owned local stations and an increase in networked, pre-recorded, automated and syndicated programming. 
 

It is a Government priority to ensure that the liberalisation of the media regulatory framework does not lead to further reductions in local content on regional commercial radio and that, where possible, concerns about diminishing levels of local content should be addressed within a flexible regulatory framework.  The Bill establishes a number of new local presence and content requirements for regional television and radio in the BSA.  In particular, it establishes a requirement for minimum levels of local news and information, and a local presence requirement, if a “trigger event” occurs relating to change in control of a regional radio licence.

 

Proposed section 43C also establishes a requirement for regional commercial radio licensees to provide 4.5 hours of local content each business day between daytime hours (that is, 6am to 6pm, unless another time is prescribed).  However, this level may be adjusted by disallowable instrument by the Minister for all licences or particular classes of licences, and proposed subsection 43C(4) of the Bill requires the Minister to cause  a review to be conducted prior to 30 June 2007 as to whether such an adjustment should be made.

 

Proposed subsection 43C(4B) requires the Minister to cause copies of the report of the review conducted under proposed subsection 43C(4) to be laid before each House of Parliament within 15 sitting days of that House after the completion of the report.  Before the first of those sitting day periods ends, proposed subsection 43C(4C) requires the Minister to make a make a disallowable instrument that establishes an alternate minimum level of local content for either all licences or specified classes of licences.

Accordingly, the Broadcasting Services (Local Content on Regional Commercial Radio) Direction (No. 1) 2006 (the Direction) directs the ACMA to investigate and report on the extent to which commercial radio licensees in regional areas are providing coverage of matters of local significance and what level of coverage of matters of local significance is appropriate for these licence areas. 

 

The Direction also directs the ACMA to investigate and report on whether the definition of “trigger event” may lead to unintended consequences for regional commercial radio licensees.

 

Subsection 171(1) of the BSA enables the Minister to direct the ACMA in writing to investigate any matter with respect to which the Parliament is given power to make laws by paragraph 51(v) of the Constitution.

 

Notes on Clauses

 

Clause 1 provides for the citation of the Direction.

 

Clause 2 provides that the Direction will be registered on the Federal Register of Legislative Instruments (FRLI), and will take effect the day after it is registered.

 

Clause 3 defines the terms used throughout the Direction.

 

Clause 4 requires the ACMA to investigate:

 

  • whether the definition of trigger event in proposed section 61CB of the BSA may lead to unintended consequences for regional commercial radio licensees; and

 

  • whether any amendments to the definition of trigger event are desirable to address any unintended consequences that may have been identified.

 

Subclause 4(1) requires the ACMA to provide a final report of the trigger event investigation to the Minister by 31 March 2007.

 

Subclauses 4(3) and (4) set out the intentions of the definition of trigger event, which the ACMA is to have regard to in carrying out its investigation of whether the definition of trigger event may lead to unintended consequences (subclause 4(2)).

 

Clause 5 requires the ACMA to also investigate:

 

  • the extent to which providers of commercial radio services in regional licence areas are providing coverage of matters of local significance, including identifying the levels of news and non‑news content broadcast;
  • the extent to which the level of coverage of 4.5 hours per business day of matters of local significance as specified in proposed paragraph 43C(3)(a) of the BSA is appropriate for commercial radio licensees in regional licence areas, or particular licence areas, taking into account all relevant matters, including the cost of producing local content, current levels of local news and non-news content and the profitability of regional licensees;

 

  • if 4.5 hours is found not to be appropriate, whether a declaration should be made by the Minister, under proposed paragraph 43C(3)(b) of the BSA, to determine an applicable number of hours of material of local significance to be broadcast during daytime hours by regional commercial radio broadcasting licences generally;

 

  • whether one or more declarations should be made by the Minister, under proposed paragraph 43C(3)(c) of the BSA, to determine an applicable number of hours of material of local significance, other than the applicable number applying to regional commercial radio licences generally, to be broadcast during daytime hours for a specified class of regional commercial radio broadcasting licences; and

 

  • whether the appropriate minimum level(s) of material of local significance required to be broadcast by all regional commercial radio licensees, or specified licensees, should include a minimum of 12.5 minutes of local news per business day, taking into account all relevant matters, including the cost of producing local content, current levels of local news and non-news content and the profitability of regional licensees. Under proposed Subdivision B of Division 5C of Part 5 of the BSA, a regional commercial radio licensee will be required to broadcast the minimum 12.5 minutes of local news per business day after the occurrence of a trigger event for that licensee. This Direction directs the ACMA to investigate whether the minimum 12.5 minutes of local news per business day requirement should be extended to all regional commercial radio licensees, or specified licensees, taking into account certain factors.

 

Subclause 5(1) requires the ACMA to provide a final report of the local content levels investigation to the Minister by 30 June 2007.

 


Consultation

 

No specific consultation has been undertaken in relation to the making of the Direction.

 

The Direction does not, of itself, have any direct impact on the regional commercial radio sector which it is expected the ACMA will consult prior to the finalisation of its investigation reports.  It is, however, intended to inform any future decisions the Government and the ACMA may make about minimum local content standards for regional radio services, including but not limited to, under section 43 and proposed sections 61CE and 61CS of the BSA, and whether the definition of trigger event needs to be amended.

 

Overview

The Broadcasting Services (Local Content on Regional Commercial Radio) Direction (No. 1) 2006 was enacted to address concerns regarding the levels of local content on regional commercial radio and potential unintended consequences of the definition of "trigger event" in the Broadcasting Services Amendment (Media Ownership) Bill 2006. The Direction, issued by the Minister for Communications, Information Technology and the Arts under subsection 171(1) of the Broadcasting Services Act 1992, mandates the Australian Communications and Media Authority (ACMA) to conduct two investigations. The first investigation examines whether the definition of a trigger event might result in adverse outcomes for regional commercial radio licensees. The second investigates the adequacy of local content levels on regional commercial radio, considering factors such as the cost of producing local content, current levels of local news and non-news content, and the profitability of regional licensees. The policy objective is to ensure that the liberalisation of the media regulatory framework does not diminish local content on regional commercial radio, and to address concerns about such reductions within a flexible regulatory framework. The ACMA is required to submit reports to the Minister by specified deadlines in March and June 2007.

Scope and Application

The Broadcasting Services (Local Content on Regional Commercial Radio) Direction (No. 1) 2006 is a regulatory instrument issued under the authority of the Minister for Communications, Information Technology and the Arts. It mandates the Australian Communications and Media Authority (ACMA) to conduct two specific investigations concerning regional commercial radio services. Firstly, the ACMA must investigate whether the definition of a 'trigger event' in the proposed section 61CB of the Broadcasting Services Act 1992 may lead to unintended consequences for regional commercial radio licensees. This investigation is aimed at ensuring that any changes in the media ownership framework do not negatively affect regional broadcasters, particularly in terms of their ability to provide local content. Secondly, the ACMA is required to investigate the adequacy of the current local content levels on regional commercial radio, including the appropriateness of the proposed 4.5 hours of local content per business day, and whether this level should be extended to include a minimum of 12.5 minutes of local news per business day for all regional commercial radio licensees. The findings of these investigations must be reported to the Minister by specific deadlines, with the trigger event investigation report due by 31 March 2007 and the local content levels investigation report due by 30 June 2007. This Direction applies to regional commercial radio licensees and seeks to address concerns about the provision of local content in regional areas, ensuring that the liberalisation of media regulations does not compromise the availability of local programming.

Key Provisions

The Broadcasting Services (Local Content on Regional Commercial Radio) Direction (No. 1) 2006 primarily directs the Australian Communications and Media Authority (ACMA) to conduct two investigations and report its findings to the Minister for Communications, Information Technology and the Arts. Firstly, the ACMA must investigate whether the definition of "trigger event" in proposed section 61CB of the Broadcasting Services Act 1992 (BSA) may lead to unintended consequences for regional commercial radio licensees (section 4). This investigation must be completed and reported by 31 March 2007. Secondly, the ACMA is required to investigate the extent to which regional commercial radio licensees are providing coverage of matters of local significance and whether the current level of coverage, specifically 4.5 hours per business day, is appropriate (section 5). This investigation must be completed and reported by 30 June 2007. The ACMA is to consider factors such as the cost of producing local content, current levels of local news and non-news content, and the profitability of regional licensees in its investigations. The obligations imposed on the ACMA under this Direction include conducting thorough investigations into the specified aspects of local content on regional commercial radio and the implications of the definition of "trigger event." The ACMA must provide detailed reports to the Minister, including any recommendations for amendments to the definition of "trigger event" or adjustments to the minimum levels of local content required for regional commercial radio licensees. The Minister, in turn, is required to review these reports and consider them in making any future decisions regarding minimum local content standards and the definition of "trigger event" under the BSA. While the Direction itself does not impose any direct penalties or consequences for non-compliance, breaches of the BSA provisions related to local content requirements, if any amendments are made based on the ACMA’s investigations, could result in enforcement actions by the ACMA or legal proceedings by the Australian Government. The BSA includes provisions for financial penalties and other sanctions for non-compliance with broadcasting standards and obligations, which could be applicable if minimum local content standards are not met. The maximum penalties for breaches of broadcasting standards under the BSA can include substantial fines and, in severe cases, the potential revocation of broadcasting licenses.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.