Federal Budget to impact radio sector

The community radio sector, Government broadcasters ABC and SBS and industry regular ACMA will receive even less support from the Australian Government, following last night’s Federal Budget announce.

The Federal government’s support for Community Radio has been cut to $16.8 million from $17.3.

In last year’s Budget, the community broadcasting sector lost over $1 million in Australian Government funding through the impact of the Administered Program Indexation Pause. Now, in addition to the funding cut, the Government has decided to extend the Pause of 112 administered programmes for a further two years.

According to Community Broadcasting Association of Australia President, Adrian Basso, Australia's 440+ community radio stations will have to tighten their belts to cope.

“The extension of the Indexation Pause by a further two years ultimately represents an incremental withdrawal of Government support […] If the pause continues, the Government risks the slow demise of some in our sector, which contributes so much to the cultural life of Australia,” said Basso.

Speaking to TMN, Basso said a further Pause would affect emerging local artists: "In the Australian radio landscape, community broadcasting provides unrivalled support for emerging and established Australian artists. More than 2,000 hours of Australian music hits community radio airwaves each day and 39% of music broadcast is by local artists.

"This includes music from many genres not given exposure via other broadcasters. Stations also support artists through interviews, live to air performances and hosting music events in their communities. A loss of services due to diminishing resources would place limits on the level of support that some stations could continue to provide. This could potentially reduce the level of exposure able to be gained by Australian artists in these communities."

Basso is also particularly concerned for the two thirds of community radio stations that operate in regional and remote areas. “[…] Over time, this will see services lost,” Basso said. “The social and cultural impacts of this loss would include a reduction in the creation of unique local content and services which support community identities and social inclusion, reduced media diversity and a diminished voice for communities not adequately serviced by other media."

The savings from the measure will be redirected by the Government to repair the Budget and fund policy priorities.

Last month CBAA released its National Listener Survey for 2014, which found that the number of Australianstuning in to community radio dropped last year. 4,797,000 people listened to community radio each week in 2014. That'sdown 403,000 listeners from 2013 when 5.2m listeners tuned in each week.

The ABC and SBS, who received a 1% funding cut last year, as well as radio and TV regulator Australian Communications and Media Authority (ACMA) have also been affected.

The ABC has seen its funding cut to $1.084 billion from $1.113 billion and predicts further staffcuts. Last year’s funding cut to save the Government $43.5 million over four years was predicted by ABC managing director Mark Scott to be a loss of about $120 million to ABC over four years.

Funding for SBS has been cut to $283 million from $285 million and the ACMA’s budget was cut by $15 million to $108 million.

Former department of the Australian Government, the Department of Communications has had its funding increased by $2 million to $9 million.

View the 2015-16 Budget – Communications Portfolio here.

Image:Treasurer Joe Hockey, who introducedthe Federal Budget 2015 to the House of Representatives last night