Communications minister confirms a former News Corp CEO will lead efficiency review, which has already ruled out privatisation or a merger

This article is more than 2 years old

This article is more than 2 years old

The ABC and SBS may be asked to share resources and collaborate but will not be merged or privatised as a result of an efficiency review, communications minister Mitch Fifield has said.



The Turnbull government announced a review to examine the efficiency of the operations of the ABC and SBS, along with an $84m indexation pause in the May budget.

It is the second efficiency review ordered by the Coalition in four years.

Announcing the terms of reference on Monday, Fifield confirmed the efficiency review will be jointly led by former Foxtel chief executive Peter Tonagh and communications bureaucrat Richard Bean.



A former CEO of News Corp Australia, Tonagh was replaced as Foxtel chief in January when Patrick Delany was appointed chief executive of the newly merged Foxtel and Fox Sports business.

Bean was the acting chair of the Australian Communications and Media Authority until October 2017, and was employed by the watchdog since 2010.

Fifield spelt out that the inquiry would not consider: the editorial policies of the national broadcasters; allowing advertising on the ABC; the quality of programs; charging for digital services; privatisation of the ABC or SBS or a merger.

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“The government will not merge or otherwise change the ownership arrangements of the ABC and SBS,” the terms of reference say.

“Efficiency options will be consistent with ABC and SBS continuing as distinct corporate entities in public hands and under separate legislation.

“In response to sector-wide technological developments the review will also explore opportunities for greater efficiency through innovation.”



Like the first review in 2014 the Tonagh/Bean review will examine whether the public broadcasters could share backroom functions such as finance and administration.

It will investigate “whether greater cooperation, collaboration and sharing of resources by the ABC and SBS would improve efficiency”.

“The ABC and SBS are vital public news and cultural institutions that are an important underpinning of media diversity and represent a major commonwealth contribution to civic journalism,” Fifield said.



“In the fast-evolving world of media organisations, it is important to support our public broadcasters to be the best possible stewards of taxpayer dollars in undertaking their important work for the community.

“The review will assist the public broadcasters as they approach the next funding triennium through which more than $3.9bn will be provided from July 2019.”

The efficiency review is one of a range of measures the ABC is facing under the Turnbull government, including parliamentary reviews and bills to change the ABC Act.

The ABC and SBS are also the subject of a competitive neutrality review – which the Australian has characterised as a chance to ask “whether the ABC is using their privileged status to smother commercial operators”.