ABC boss says $105.9m annual budget cut will put ‘an extraordinary strain on our ability to meet community expectations’

This article is more than 6 months old

This article is more than 6 months old

The summer bushfires added an extra $3m in emergency broadcasting costs to the ABC budget at a time the corporation had to absorb an ongoing annual budget cut of $105.9m, the managing director, David Anderson, has told a parliamentary committee.

The ABC told the committee the Coalition’s $84m budget reduction announced in 2018 translated to a cut, but the defence minister, Linda Reynolds, insisted it was an “indexation pause” and ABC funding had been maintained.

Anderson confirmed both content and staff would be affected when he unveiled his plans to meet the shortfall next month, but he guaranteed there would be no reduction in regional services.

Sinddy Ealy (@sinddyealy) Real people are about to lose real jobs. Watching Senator Reynolds arguing semantics about cutting #ABC funding is both disappointing and corrosive to restoring trust in our political leaders. #estimates. No integrity! https://t.co/daknR7JNQx

The ABC has made 935 emergency broadcasts already this financial year compared to 371 the year before and 256 in 2017-18, and has been widely praised for its vital role.

Anderson said he told the minister for communications, Paul Fletcher, who had asked for an estimate of what ABC emergency broadcasting would cost in the future, that it will be $5m every year if this summer is “the new normal”.

“The pause in the ABC’s indexation announced in 2018 will reduce the corporation’s fund $84m over three years which will result in an ongoing cut of $41m per annum from 2022,” Anderson told Senate estimates.

“It is important to remember that this comes on top of $64m of ongoing cuts that were imposed on the corporation in 2014.

Conservative commentator Gerard Henderson dropped from ABC's Insiders program Read more

“To summarise the ABC will have to absorb cumulative budget cuts that amount to $105.9m per annum by the time we reach the 2022 financial year. This is an extraordinary strain on our ability to meet community expectations.”

Anderson said ABC staff had come back from leave and had acted “tirelessly” to ensure critical information was available.

“Our metro newsrooms and local radio stations kept the nation up to date on those terrible developments,” he said.

“I am pleased the ABC’s role has been recognised by many Australians, including the deputy prime minister, Michael McCormack, who said the ABC saved lives.”

Before Senate estimates on Tuesday afternoon, the former prime minister Paul Keating accused the Coalition of trying to “fracture” the ABC because of its “ideological contempt” for the organisation.

Keating was responding to reports Fletcher had written to the ABC asking it to consider selling the Sydney and Melbourne headquarters to meet the budget shortfall.

Keating said the premises at Ultimo in Sydney and Southbank in Melbourne were vital to the ABC’s cross-platform structure.

“These two centres, Ultimo in Sydney and Southbank in Melbourne stand as sentinels to the notion that in a free and open political society, unvarnished information is central to the nation’s lifeblood,” Keating said.

“I knew and said often, that at some point, the Liberal and National parties would mount a concerted attack upon the ABC and its legitimacy.”

PatriciaKarvelas (@PatsKarvelas) And here we are again. First time the ABC has EVER had a float. @SciNate @JezNews @frankelly08 @annabelcrabb #sydneymardigras2020 pic.twitter.com/ZIaq35OSeG

Anderson said the ABC constantly reviewed its property portfolio in an attempt to identify savings.

He told the committee no taxpayers’ funds were used for the ABC’s first float in the Sydney Gay and Lesbian Mardi Gras but an ABC truck was lent to the ABC Pride group.