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Australian Broadcasting CorporationANNUAL REPORT 2007

R A D I O • T E L E V I S I O N • O N L I N E •

then. . .

Front cover images:

MA (Mick) Ferry was the first regular racecommentator in the world. Starting with theAutumn Meeting at Randwick (Sydney) in 1925,he broadcast descriptions of the races from his flat, outside the course. Enthusiastic racing authorities cut down a tree that obstructed his view of the track. Mick Ferry continued as the ABC's chief racingcommentator in Sydney until his deathin 1943.

Andrew Taylor, Four Corners cameraman,filming Apache helicopter gunships landing at Tarin Kwot in southern Afghanistan (June2007). The Australian military ReconstructionTask Force and the Special Operations TaskGroup are based at Tarin Kwot.

S H O P S • I N T E R N A T I O N A L B R O A D C A S T I N G

. . . and now

75yearsi n n o v a t i o n

i n b r o a d c a s t i n g

1

06–072

Total number of hours broadcast

Radio—8 760 hours on each network and station

Television—17 348 hours, including ABC2 and

state-specific content

3.9 million pages of content on ABC Online

ABC services reached an estimated 72% of

all Australians via Television, Radio and Online

ABC Radio had a weekly 5-city metropolitan reach of

3 687 000 or 33%ABC Television had a weekly 5-city

metropolitan reach of 8.46 million or 60.4%and weekly regional reach of

4.1 million or 64.2%ABC Online had a monthly reach of 18.3%of Australia’s active internet population

89% of Australians continue to believe the ABC

provides a valuable service to the community

81% of Australians believe the ABC does a

good job covering country/regional issues

71% believe the ABC is efficient and well-managed

Highlights of 2006–07

Averaged 400 000 live radio streams per month,

just under 2.4 million podcast downloads per month

and 4.6 million vodcast downloads in first half of 2007

3

ABC Television launched new Australian programs,

including The ABC of Our Lives: 50 Years of Television, Who

Killed Dr Bogle and Mrs Chandler?, Constructing Australia:

The Bridge, Carbon Cops, Air Australia, Difference of Opinion,

jtv, Family Footsteps, Choir of Hard Knocks, Bastard Boys,

Curtin, Life at 1 and Operatunity Oz

Radio Australia programming available

through 160 local rebroadcasters in 40 countries

in Asia and the Pacific, shortwave broadcasts,

satellite services and 12, 24-hour FM relays

Australia Network television available in

41 countries, retransmitted by

400 pay television operators,

in more than 200 000 hotel rooms and

available in 21 million homes

The ABC broadcast 3 581 hours of first release Australian

television content, including ABC2

ABC’s digital television services reach 97% of

Australia’s population from 237 transmitter locations

42 ABC Shops and 103 ABC Centres throughout

Australia and online generated $3.3m net profitwhich was returned to programming last year

The ABC had total revenues of $995m from

ordinary activities with $1 059m in total assets

4

The National Broadcaster

Karratha

Geraldton

Bunbury

Albany

Kalgoorlie

Alice Springs

EsperancePt Lincoln

Kununurra

Broome

Darwin

Perth

Katherine

Wagin

Metropolitan Services

Television Production Centres

Metropolitan Radio

Online Production Centres

Regional Services

Regional Radio Studios

Television Production Centres

Radio Australia Transmitters

• ABC national Radio networks—ABC Radio National, triple j, ABC Classic FM and ABC NewsRadio

on the Parliamentary and News Network—are available throughout Australia

• ABC Regional Radio studios collect content for use on ABC Radio and ABC Online

• ABC Shops and ABC Centres are found at 146 locations throughout Australia

• Local frequency information for ABC services is available in Appendixes 23 (Television) and 24 (Radio)

5

RadioThe ABC has four national radio

networks—ABC Radio National,

ABC Classic FM, triple j and ABC

NewsRadio—as well as 60 Local

Radio stations around Australia, and

three internet music-based services,

dig, dig jazz and dig country.

TelevisionABC Television operates two channels.

The main channel is a national service

with State and Territory news breakouts.

It is available in analog and digitally

on free-to-air digital and subscription

television platforms.

The ABC2 digital television service

is available free-to-air and on

subscription platforms.

OnlineThe ABC Online website contains 3.873

million pages of content across 12 subject

gateways, including content designed

for broadband delivery. ABC services

are also available via WAP, SMS, 3G

and i-mode platforms.

ShopsABC-related products are available from

42 ABC Shops and 103 ABC Centres

throughout Australia, as well as the

ABC Shop Online and an order-based

Customer Delivery Service.

International BroadcastingInternational radio and online service

Radio Australia, is available by shortwave,

satellite and rebroadcast arrangements

to Asia and the Pacific.

International television and online service,

Australia Network, is available via satellite

and rebroadcast arrangements to Asia

and the Pacific.

Hobart

Broken Hill

Wollongong

Erina

Tamworth

Lismore

Gold Coast

Toowoomba

Gladstone

Rockhampton

Mackay

Townsville

Cairns

Longreach

Mt Isa

MuswellbrookPt Pirie

Renmark

Pt Augusta

Horsham

Mt Gambier

Warrnambool

Shepparton

Bendigo

Mildura

Sale

Morwell

Burnie Launceston

Dubbo

Orange

Wagga Wagga

Port Macquarie

Coffs Harbour

Bundaberg

Nowra

BegaWodonga

Maroochydore

Sydney

Newcastle

Canberra

Melbourne

Adelaide

Ballarat

Brisbane

2 October 2007

Senator The Hon. Helen CoonanMinister for CommunicationsInformation Technology and the ArtsParliament HouseCANBERRA ACT 2600

The Board of the Australian Broadcasting Corporation is pleased to presentthe Annual Report of the Corporation for the year ended 30 June 2007.

The report is prepared in accordance with the requirements of theCommonwealth Authorities and Companies Act 1997 and the AustralianBroadcasting Corporation Act 1983.

Yours sincerely

Office of

Maurice L. Newman AC

Chairman

ABC Ultimo Centre

700 Harris Street

Ultimo NSW 2007

Australia

GPO Box 9994

Sydney NSW 2001

Tel. +61 2 8333 5363

Fax. +61 2 8333 2967

abc.net.au

7

contentsLetter of Transmittal 6

Corporate Report 10

ABC Vision, Mission and Values 10

Significant Events in 2006–07 10

Corporate Plan Summary 13

ABC Board of Directors 15

Board Directors’ Statement 19

ABC Advisory Council 22

The Year Ahead 23

Overview 24

ABC Audiences 26

ABC Services 42

ABC in the Community 44

ABC People 48

Commitment to a Greener Future 53

Corporate Governance 56

Financial Summary 63

ABC Divisional Structure 66

ABC Divisions 68

Radio and Regional Content 70

Television 74

News 80

Innovation 84

International 87

Commercial 92

Operations 96

Corporate 102

Summary Reports 110

Performance Against the ABC Corporate Plan 2004–07 112

Outcomes and Outputs 126

Independent Auditor’s Report 139

Financial Statements 141

Appendices 183

Index 236

Glossary 239

ABC Charter and Duties of the Board 240

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section 1

section 2

section 3

section 4

section 5

8

Australia’s great arterial river system has

borne explorers, traders and storytellers, from

the earliest period of European settlement.

Over ten weeks in 1951, ABC Radio recreated

the 1829–30 expedition of Charles Sturt

down the Murrumbidgee to its junction with

that “broad and noble river”, the Murray.

With the assistance of local Aborigines,

Sturt’s party followed the Murray to Lake

Alexandrina and on to the ocean mouth,

south of Adelaide.

Fifty-five years after that radio documentary

series, John Doyle and scientist/author Dr

Tim Flannery undertook another expedition

to document a river system in a state of

environmental crisis. ABC Television presented

Two Men in a Tinnie, a series filmed on their

journey along the Murray-Darling Rivers.

The ABC has documented Australia and its

evolving place in the world through long-form

narratives from its earliest days. Dr Cecil

Madigan used a pedal radio transceiver in

documentariesthen. . .

A 1950s re-enactment

of Charles Sturt’s

1829–30 expedition.

9

section 1

the Flinders Ranges in South Australia to

file his radio talks as leader of the first

major expedition across the Simpson Desert

in 1939. Shortly after World War II, Colin

Simpson presented Australian Walkabout

with stories of crocodile hunting in the Gulf

of Carpentaria, jungle patrols on the island

of New Guinea and the operations of a

pearling lugger off Broome.

In 1960, the ABC established its first television

documentary unit, which produced landmark

series that helped significantly to define the

genre in this country: A Big Country, focusing

on rural Australia, Chequerboard and, later,

renowned natural history projects such as

Nature of Australia.

At the beginning of the new millennium, ABC

Radio National audaciously chose to present

a 15-hour documentary review of the previous

1 000 years – “A Thousand Years in One

Day”. Extraordinary.

On any ABC platform—radio, television or

online—Australians continue their journeys

of discovery about the world around them,

their land and their social evolution.

Australian of the Year Tim Flannery and respected writer

and satirist John Doyle examine the issue of Australia's

challenging water future in “Two men in a tinnie”.

. . . and now

10

July 2006A Stowaways Guide to the Pacific launched

as the fourth project funded under the ABC

– Australian Film Commission Broadband

Production Initiative.

ABC Radio National’s Music Deli celebrated

its 20th birthday.

Video downloads made available on ABC

Online, starting with The Chaser’s War

on Everything.

jtv launched on ABC Television and ABC2

to extend the triple j brand.

August 2006First online outside broadcast by ABC

Local Radio, produced from the Byron Bay

Writers’ Festival.

ABC Asia Pacific rebranded as

Australia Network.

triplejunearthed.com launched with a

live performance from Unearthed winner

Missy Higgins.

The Indigenous Music Awards recorded live

by triple j and filmed for broadcast on ABC

Television and ABC2.

Lateline and Lateline Business websites

launched, complemented by video podcasts.

September 2006Australia Network launched on cable

platforms in India.

Radio Australia opens Digital Audio

Broadcasting subscription service

in Singapore.

VisionValued for playing an active role in the

lives of all Australians.

MissionUphold the ABC’s Charter through

distinctive programs and services that

inform, educate and entertain.

ValuesDistinctively Australian—reflecting the

nation’s identity and culture

Open to all—reaching out to engage

audiences, bringing Australians together

No hidden agendas—aspiring to the

highest editorial standards of accuracy

and impartiality, reflecting a balanced

and broad range of views and interests

Creative—a commitment to innovation,

ideas and support for talented people

Courageous—encouraging the leadership

and vision to adapt to change with

integrity and decisiveness

Supportive—providing opportunities

for ABC staff to grow, personally and

professionally, during their time with

the Corporation

Accountable—demonstrating high

standards of governance and value for

money to the Australian community.

ABC Vision, Mission and Values

Significant Events 2006–07

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section 1The Coodabeen Champions celebrated

their 25th anniversary on radio.

The television documentary Who Killed

Dr Bogle and Mrs Chandler? became the

most watched Australian documentary

ever screened on the ABC, with an audience

of 2.5 million people.

Radio Australia’s Breakfast Club broadcast

live from Bali.

Good Game premiered on ABC2 and online

as video-on-demand.

The Birralee Blokes won ABC Classic FM’s

Choir of the Year competition.

October 2006The Hon. Peter McGauran, Minister

for Agriculture, Fisheries and Forestry,

announced the 2006 Heywire competition

winners at Parliament House.

At the Movies hosts, David Stratton and

Margaret Pomeranz, celebrated 20 years

on screen together.

The Life at One website launched to

complement the landmark television series,

Life at One, which followed the development

of 11 children growing up in Australia.

November 2006The 2006 Boyer Lectures delivered by Ian

MacFarlane, the recently retired Governor

of the Reserve Bank of Australia.

Senator the Hon. Helen Coonan, Minister for

Communications, Information Technology

and the Arts, delivered 702 ABC Sydney’s

11th annual Andrew Olle Memorial Lecture.

Yours, Mine and Ours, a visual arts exhibition

using ABC archival material, held in Sydney

in conjunction with the Campbelltown

Arts Centre, Penrith Regional Gallery, the

Lewers Bequest and the Joan Sutherland

Performing Arts Centre to commemorate

the 50th Anniversary of ABC Television.

John Clarke presented The ABC of Our

Lives: 50 Years of Television, with extended

highlights on the website.

December 2006The ABC, in collaboration with the South

Australian Film Corporation, m.NET

Corporation and the Australian Network for

Art and Technology, launched miniSeries

which promoted storytelling via mobile

phones and online.

January 2007ABC Book Spotless number one title on

2006 Bookscan Bestseller Non-Fiction list.

ABC NewsRadio introduced new sports

show, Weekend Half Time.

774 ABC Melbourne launched ABC Melbourne

Podtours, co-produced with the Melbourne

University History Department.

ABC Science series Talking Science broadcast

on ABC2 and as video-on-demand.

February 2007Australia Network broadcast the Super

14s Rugby Union series across the

Asia-Pacific region.

Australia All Over and 702 ABC Sydney’s

Weekends broadcast live from the Sydney

Harbour Bridge, celebrating the 75th

birthday of the Bridge and the ABC.

Launch of The Pure Drop website, exploring

traditional and world music.

March 2007ABC Radio National launched Edpod, an

exclusively podcast service, gathering the best

education stories, broadcast by ABC Radio

National each fortnight, into one download.

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The 42nd ABC Shop opened in Rosny, Tasmania.

ABC Local Radio turned an idea from four

teenage participants at the 2007 Heywire

Youth Issues Forum into a national radio and

web event. With 2 000 registered participants,

The 40 Hour Drought encouraged listeners

to limit themselves to 40 litres of water for

a period of 40 hours.

ABC2 celebrated its second birthday.

The ABC became the first Australian

broadcaster to establish a presence in the

virtual world of Second Life. ABC Island

launched and coincided with a Four Corners

program exploring virtual worlds.

April 2007Approximately 15 000 people attended triple

j’s One Night Stand concert from Cowra in

regional New South Wales.

Radio Australia opened a 24-hour FM relay

in Kiribati.

ABC Radio National received around

6 000 responses to its Unforgettable

Speeches competition.

Northern Territory Local Radio broadcast

the Tiwi Island Football League Grand Final.

Radio Australia mounted the first ABC live

broadcast from Guangzhou, China.

Rage celebrated its 20th anniversary

on ABC Television.

May 2007The 100th ABC Centre opened at

Watergardens, Victoria.

Funding for the national broadcasters’ roll

out of Digital Radio to the six state capitals,

by 1 January 2009, committed as part of

the Federal 2007 Budget.

ABC Radio National’s Awaye! marked the

40th anniversary of the 1967 Referendum to

extend citizenship to Indigenous Australians.

Radio Australia opened a 24-hour FM relay

in Lae, Papua New Guinea.

June 20071233 ABC Newcastle and ABC Central Coast

provided extensive coverage of storm-related

events in the Hunter Valley and the Central

Coast of New South Wales.

triple j launched AWOL—four free concerts

to be staged in four towns across regional

Australia featuring some of Australia’s

biggest bands.

Revamped ABC News Online website launched.

Radio Australia expanded bi-lingual English

lessons for the Vietnamese, Chinese,

Indonesian and Cambodian markets. Podcasts

of lessons reaching over 300 000 per week.

Significant Events 2006–07 continued

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section 1

The Board adopted an ABC Corporate Plan for the 2004–07 period, continuing to position the

Corporation for the inevitable transformation of the Australian media environment. The Corporate

Plan is framed around four Corporate Objectives derived explicitly from the Australian

Broadcasting Corporation Act 1983, including the Charter (s.6).

Specific legislative responsibilities are addressed through the strategic priorities and actions

identified in support of these four overall objectives.

Objective 1. Contribute to a sense of national identityThe ABC will... create more opportunities for audiences to connect with the diversity of their

communities through an ABC that is distinctively Australian (s.6(1)(a)(i)).

Meeting its legislative obligations...

• Content genres:

• News and information (ss.6(1)(b) and 8(1)(c))

• Programs of an educational nature (s.6(1)(a)(i))

• Promotion of the musical, dramatic and other performing arts (s.6(1)(c))

• Reflect cultural diversity (s.6(1)(a)(i))

• Transmit overseas programs of news, current affairs, entertainment and cultural

enrichment (s.6(1)(b))

• Take account of the multicultural character of the Australian community (s.6(2)(a)(iv)).

Its overall effectiveness

will be measured by... 2006–07 2005–06 2004–05 2003–04 2002–03

% of people who regard the ABC to be

distinctively Australian and contributing

to Australia’s national identity 84 84 84 83 82

% of people who believe the ABC

reflects the cultural diversity of

the Australian community 81 81 82 78 80

Detailed reporting against Objective 1 can be found on page 112.

Objective 2. Engage audiences with relevant and innovativeprograms and servicesThe ABC will... reach as many people as possible through the ABC’s established Charter

services and emerging digital media (ss.6(1)(a) and 6(2)(a)(iii)).

Meeting its legislative obligations to...

• Provide programs of wide appeal and specialised interests (s.6(2)(a)(iii))

• Be innovative and comprehensive (s.6(1)(a))

• Take account of services provided by the commercial and community broadcasting

sectors (s.6(2)(a)(i)).

Corporate Plan Summary

14



Overall (Combined) Audience Reach (%) 72 73 75 75 NA*

% of people who perceive the ABC

to be innovative 73 73 74 72 70

* Combined Audience reach figures were not calculated prior to 2003–04


Objective 3. Ensure the ABC’s independence, integrity and high standardsThe ABC will... advance the ABC’s reputation and high performance standards through the

ongoing evaluation of governance, policies and procedures (ss.6(1)(a) and 8(1)(b)).

Meeting its legislative obligations to...

• Maintain the independence and integrity of the Corporation (s.8(1)(b))

• Ensure news and information is accurate and impartial (s.8(1)(c))

• Develop codes of practice relating to programs (s.8(1)(e))

• Take account of standards determined by the Australian Communications and Media

Authority (s.6(2)(a)(ii))

• Comply with all relevant legislation (s.8(1)(d))

• Give consideration to any policy statement by the Commonwealth Government on any

matter relevant to broadcasting or administration (s.8(2)).



% of people who believe Television 81 80 80 77 79

the ABC provides quality Radio 64 63 63 61 60

programming Online 88 89 89 87 89


is balanced and even-handed when

reporting news and current affairs 79 83 82 80 81


Objective 4. Provide maximum benefit to the people of AustraliaThe ABC will... achieve the optimal use of assets and resources and manage the long-term

sustainability of the Corporation (s.8(1)(a)).

Meeting its legislative obligation to...

Ensure the functions of the Corporation are performed efficiently and with the maximum

benefit to the people of Australia (s.8(1)(a)).



% of people who value the ABC

and its services to the community 89 90 90 89 89


is efficient and well managed 71 70 70 64 68


Corporate Plan Summary continued

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section 1

The role and responsibilities of the ABC Board

derive from the Australian Broadcasting

Corporation Act 1983 (“ABC Act”). Section 8

of the Act requires the Board to ensure the

functions of the Corporation are performed

efficiently and with the maximum benefit to

the people of Australia, while maintaining

the ABC’s independence and integrity. It is

required to ensure that the gathering and

presentation of news and information is

accurate and impartial according to the

recognised standards of objective journalism;

to develop codes of practice relating to

programming matters; ensure compliance

with the ABC Act and other relevant

legislation; and to consider matters of

Government policy relevant to the functions

of the Corporation when requested to do so

by the Minister. The ABC Act also requires

the Board to prepare corporate plans for the

ABC and to notify the Minister of any matters

likely to cause significant deviation from

those plans.

In addition, the Board is subject to further

obligations and individual Directors are

required to meet objective standards of care

and good faith, as set out in the Commonwealth

Authorities and Companies Act 1997.

Directors are required to observe the ABC

Board Protocol, first adopted in September

2004, which sets out their responsibilities

and rights. They are required to provide

a declaration of interests upon their

appointment. This is updated regularly.

At each meeting, Directors are asked if

they wish to declare a material personal

interest in any items on the agenda.

Induction processes are in place for

new Board members and online training

is available through provision of the

Directors’ Manual and Public Sector

Governance, Australia modules,

from CCH Australia Limited. Other

professional development for Directors

is provided on a case-by-case basis.

ABC Board of Directors

Maurice Newman AC Mark Scott John Gallagher QC Ron Brunton

Janet Albrechtsen Steven Skala Peter Hurley Keith Windschuttle

16

Maurice Newman ACAppointed Chairman for a five-year term

commencing 1 January 2007.

Maurice Newman is currently Chairman

of the Australian Securities Exchange Ltd

and Chancellor of Macquarie University.

His career spans 40 years in stockbroking

and investment banking, including as

Managing Director in 1984, and Executive

Chairman from 1985 until 1999, of what is

now the Deutsche Bank Group in Australia.

He was Chairman of the Deutsche Bank

Asia Pacific Advisory Board and a Director

of Deutsche Bank Asia Pacific from 1999

to 2001. He was also Chairman of Deutsche

Asset Management (Australia) Limited

from 1997 until 2000.

He has been an adviser to Australian

governments: as a member of the

Consultative Committee on Relations with

Japan (1984–87); a Commissioner of the

National Commission of Audit (1996); a

member of the Business Advisory Panel

established by the Minister for Multicultural

Affairs (1997–2002); Chairman of the

National Judging Panel for Innovation in

Local Government (1997–98); Chairman of

the Commonwealth Government’s National

Year 2000 Steering Committee (1997–2000);

and the Business Mature Age Workforce

Advisory Group (2000–01); Co-Chair of the

Singapore Australia Business Alliance Forum

(1999–2002); Member of the New South Wales

Premier’s Major Events Board (2002–04);

and Chairman of the Federal Treasurer’s

Financial Sector Advisory Council (1998–2007);

Sydney Convention and Visitors Bureau

(2001–07); and Tourism New South Wales

(2002–07).

Mr Newman served as a Director of the

Australian Broadcasting Corporation from

December 2000 to June 2004.

In June 2004 he was appointed a Director

of the Queensland Investment Corporation.

Mr Newman was awarded a Companion of

the Order of Australia, AC in 2002, and an

Order of Australia, AM in 1994. In 2003

he was awarded the Centenary Medal

for outstanding service to the financial

services industry.

John Gallagher QCRe-appointed for a three-year term from

24 February 2005. Appointed Deputy Chairman

until term expires 23 February 2008.

John Gallagher is a Barrister and Queen’s

Counsel whose practice involves civil and

criminal law.

Mr Gallagher was formerly a Director of

Mackay Television Limited (1971–87) as well

as a Director of companies operating hotels

in Queensland and New South Wales from

1960 to 1996.

Ron BruntonAppointed a Director for a five-year term

from 1 May 2003.

Ron Brunton is currently the Director of

Encompass Research Pty Ltd, an organisation

engaged in anthropological and socio-economic

research, concentrating on native title,

Indigenous heritage, immigration and

environmental issues.

A widely published writer, Dr Brunton was

a fortnightly columnist for The Courier Mail

from 1997 until 2003, and was a Senior

Fellow at the Institute of Public Affairs

between 1995 and 2001.

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section 1In addition, Dr Brunton has published

research papers and books on a wide range

of anthropological issues and has lectured in

anthropology at various universities in Australia

and the University of Papua New Guinea.

Janet AlbrechtsenAppointed a Director for a five-year term

from 24 February 2005.

Janet Albrechtsen, a former solicitor, is a

newspaper columnist with The Australian

newspaper. She has previously written for

The Australian Financial Review, The Sydney

Morning Herald, The Age, The Sunday Age

and Quadrant magazine.

She was previously employed with law firm

Freehill, Hollingdale and Page, practising in

the areas of banking and finance, corporate

and securities law.

Ms Albrechtsen has a doctorate in law from

the University of Sydney and has taught at

the University of Sydney Law School.

Steven SkalaAppointed a Director for a five-year term

from 6 October 2005.

Steven Skala is Vice Chairman, Australia and

New Zealand, of Deutsche Bank AG. He is

also Chairman of Film Australia Limited,

Hexima Limited and Live Events Wireless Pty

Limited and is a director of Max Re Capital

Ltd, Wilson HTM Investment Group Limited,

the Australian Ballet and the Centre for

Independent Studies.

He serves as the Vice President of the Walter

and Eliza Hall Institute of Medical Research,

as a Trustee of the Sir Zelman Cowen

Cancer Foundation and as a Member of

the International Council of the Museum of

Modern Art, New York (MoMA). In addition,

he is a Member of the Grievance Tribunal

of Cricket Australia.

Mr Skala is the immediate past Chairman of

the Australian Centre for Contemporary Art,

and has been a director of the Channel 10

Group of Companies and The King Island

Company Limited. Between 1985 and 2004,

he was a partner of Arnold Bloch Leibler,

Solicitors and head of its corporate and

commercial practice.

Peter HurleyAppointed a Director for a five-year term

from 14 June 2006.

Peter Hurley is a businessman in the hotel

industry. He is currently National Senior

Vice President and State President of the

Australian Hotels Association, and Chairman

of Hospitality Group Training, the largest

group apprenticeship and training scheme in

South Australia. He is also Deputy Chairman

of the Adelaide Football Club. Mr Hurley

has previously served as a Board Member

(1997–2003) and Chair of the Audit Committee

of the South Australian Tourism Commission

and as a Board Member of the Australian

Tourist Commission (2000–04).

Keith WindschuttleAppointed a Director for a five-year term

from 14 June 2006.

Keith Windschuttle is an historian, author

and publisher and a frequent contributor

to major Australian and international

newspapers, international journals and

academic publications. He has had a number

of books published and has worked as a

journalist with The Daily Telegraph and

Broadcasting and Television magazine.

Mr Windschuttle has 20 years experience

lecturing in Australian history, journalism

and social policy at a number of Australian

universities. He has also been a visiting or

guest lecturer at a number of universities

in the United States.

18

Mark ScottAppointed Managing Director for a five-year

term from 5 July 2006.

Prior to his appointment as ABC Managing

Director, Mark Scott spent almost 12

years in a variety of editorial, editorial

management and organisation development

positions with John Fairfax Publications.

From 2003 to 2005 he was Editor-in-Chief,

Metropolitan newspapers, and during 2005

became Editor-in-Chief of Metropolitan,

Regional and Community newspapers. From

November 2005 he was Editorial Director,

with responsibility for the management and

editorial direction of the newspaper divisions

and websites along with the editorial and

commercial performance of the Fairfax

newspaper magazine division.

From 1993–94 he worked in education policy

research at the Centre for Learning and

Competitiveness at the University of Maryland,

in the United States.

He was employed in the New South Wales

Government from 1988–92 in the roles of Chief

of Staff to the Education Minister, Director of

Communications in the Education Ministry,

and Policy Advisor to the Education Minister.

Mr Scott holds a Bachelor of Arts, Diploma

in Education and a Master of Arts degree

in Government from the University of

Sydney. During 1992–93 he completed a

Masters degree in Public Administration

at Harvard University.

Retiring ChairmanDonald McDonald ACAs the longest serving Chairman since

the ABC became a Corporation in 1983,

Donald McDonald retired from the Board

on 31 December 2006. He was initially

appointed Chairman in July 1996 for a

five-year term, re-appointed on 24 July 2001

for a second five-year term and appointed

for a further five months commencing

on 24 July 2006.

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section 1

Seventy Five Years of the ABCThe legislation creating the Australian

Broadcasting Commission was drafted by

the Scullin Labor government and enacted

in 1932 by the Lyons United Australia Party

—the predecessor to the Liberal party—

a truly bi-partisan vision.

Founded in times of economic distress and

hardship, the peoples’ representatives

looked beyond the moment.

They took the long view that, one day,

prosperity would return. That when those

dark and difficult times had passed, the

ABC would play a part in uniting the young

nation. A genuine national broadcaster,

in the national interest—and so it has

turned out to be.

The ABC has, in fact, been a trusted partner

at every step of the Australian journey over

the past 75 years, through wars, natural

disasters, economic ups and downs, great

achievements, sadness and joy. It has

been there to share and reflect on the

epic changes that have taken place

in Australian society.

Many of the uncertainties and beliefs that

prevailed in 1932 have disappeared but

they have been replaced by others. For

today’s Australians the challenges are

no less daunting.

While contemporary society is more diverse

and complex, it still responds to a reliable,

independent and balanced voice. Even in

today’s digital age, the ABC provides the

forum for much of Australia’s public

conversation and it continues to enrich

and enliven Australian democracy.

Director of Editorial PoliciesUnder the ABC Act and Charter, the

Corporation is required to provide innovative

and comprehensive services of a high

standard and to observe both accuracy

and impartiality in news and information.

These requirements are enshrined in the

ABC Editorial Policies.

The appointment of Mr Paul Chadwick to the

new role of Director of Editorial Policies in

December 2006 was an important step in

providing additional strength and expertise

to editorial staff and management.

Three main principles guide the role of Director

of Editorial Policies: to advise, verify and

review the consistent adherence to Editorial

Policies in content, wherever it is presented

by the ABC. Mr Chadwick will, with other

relevant Executive Directors, be able to provide

first-hand assurance to the Board that the

ABC is discharging its Charter obligations.

Aligning the ABC for the Digital AgeThe Corporation’s digital evolution has required

significant managerial change, which was

successfully completed in the first half of 2007.

The revised organisational structure gives

priority to aligning the ABC’s output with

audience expectations. As a result, the

Corporation is better able to deliver multimedia,

cross-platform programming—providing a

vast range of content for the growing range of

ABC services, for a richer audience experience.

Broadband, video-on-demand, mobile

applications, digital television (ABC2),

podcasting and vodcasting are now at the

heart of what the contemporary audience

expects, alongside established television,

radio and online services.

There are, nevertheless, significant tests

ahead for the ABC.

The analog age, which was characterised by

spectrum scarcity, allowed a limited range of

radio and television broadcasting in Australia,

and defined a familiar media experience for

many generations of Australians.

Board Directors’ Statement

20

This protected environment is rapidly

drawing to a close. Digital technology is

creating an age of plenty with new means

of providing stimulating information and

entertainment and an astonishing growth

of innovative ways for audiences to further

engage with media.

The ABC must work even harder to preserve

the special relationship it has established

with audiences through conventional radio,

television and online. At the same time, the

ABC’s less traditional audiences are showing

a growing interest in self-expression and

participation by embracing new means of

personalising their media experiences.

The ABC must also cater to their needs.

Their major media experiences take place

online and are shaped by that environment

—they have very different expectations to

that of established audiences. They are

more demanding as well as amenable

to alternative venues.

The structural changes that have taken place

within the Corporation in the past year will

help address this great challenge—how to

reach more Australians, in more ways, more

often—and to fulfil the enduring values and

expectations of our Charter.

We believe the media environment will be as

profoundly altered by these innovations as it was

by the introduction of television 50 years ago.

The ABC’s InternationalEngagementThe ABC is committed to fundamental

democratic principles including the rule

of law, freedom of speech and religion,

parliamentary democracy and equality

of opportunity—the foundations of

Australian society.

These Australian values are intrinsic to the

programming presented by Radio Australia

and Australia Network. They also find

expression beyond programs through projects

undertaken by ABC International.

Radio Australia and Australia Network

provide an awareness of Australian thinking

to international audiences. Yet they are more

than broadcasters and are distinguished

from other media services in the region

by providing services that have helped

contribute to closer cultural ties—neighbour

to neighbour—between Australia and other

nations in the Asia-Pacific region.

Part of this broader engagement with the

international community served by the ABC

is exemplified by educational content such

as Australia Network’s Study English program

(in partnership with Australian tertiary

institutions) and Radio Australia’s Time

to Talk series on politics, society and

governance in the Pacific.

The ABC also has a long history of working

with other broadcasters—as neighbour and

citizen of the Asia-Pacific region—to develop

effective media in the region. This supporting

role for the ABC is now increasing, with the

ABC providing regional broadcasters specialist

advice and technical assistance, mentoring

and training activities. The most significant

of these activities are funded by Australia’s

development assistance agency, AusAID.

The ABC’s international activities—Radio

Australia, Australia Network and International

Projects—are managed within a new ABC

International Division. Further collaboration

between the services produced by this

arrangement will both improve effectiveness

of the services and assist in developing

audience growth.

Jean-Gabriel Manguy, under whose leadership

a resurgent Radio Australia found new means

to reach new audiences during the past decade,

resigned from the role in April 2007 to take

Board Directors’ Statement continued

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section 1up a new position outside Australia. The

Board pays tribute to Mr Manguy’s efforts

during a very challenging decade for Radio

Australia and wishes him well.

Future SustainabilityChanging technology is playing to the ABC’s

strengths. We are in the forefront of digital

media development but it is a costly exercise.

The ABC funding for the 2006–09 triennium

was set at a level unprecedented in 20 years.

As welcome as this Government commitment

is, the maintenance of long-term financial

sustainability remains a challenge for

the Board.

While our revenues are relatively fixed,

costs are not. Many of the ABC’s expenses

relate directly and indirectly to technological

change and are increasing more rapidly

than indexation. So is some of our

recurrent expenditure.

The Board is dedicated to ensuring the most

effective use of the ABC’s funds consistent

with its Charter obligations. This may require

resetting priorities and reviewing traditional

ways of doing things so that we can better

acquit ourselves to our owners, the

Australian people.

We are committed to delivering the services

people require, to the standards they demand,

for the lowest possible price.

The Board believes it has fulfilled its statutory

duties as laid out in Section 8 of the ABC Act.

Maurice Newman AC

Chairman

On behalf of

John Gallagher QC Director

Ron Brunton Director

Janet Albrechtsen Director

Steven Skala Director

Peter Hurley Director

Keith Windschuttle Director

Mark Scott Director

Donald McDonald AC retired at the end of

his third term as Chairman of the ABC on

31 December 2006.

Mr McDonald’s ten and a half years service

as Chairman is the longest since the ABC

became a Corporation in 1983. The Board

would like to record its appreciation for his

extensive contribution.

Under Mr McDonald’s distinguished leadership

during the past decade, the ABC dealt with

a range of significant challenges—giving the

Corporation a sound foundation for its

present success. The Corporation is better

placed to deal with the many new demands

and expectations of what will soon be an

exclusively digital environment.

Each year since 1999, the ABC has awarded

a Reuter’s Foundation Scholarship to an

experienced high level journalist to join the

Reuter Foundation program. This brings

together up to 25 established journalists from

around the world to further develop their skills.

As ABC Chairman, Mr McDonald was

instrumental in the establishment of the

Reuter’s Foundation Scholarship program,

and continued to encourage and support

both it and scholars throughout the program’s

history. On the occasion of his retirement,

the program was renamed the Donald

McDonald ABC Scholarship in recognition

of Mr McDonald’s commitment to excellence

in journalism.

DonaldMcDonald AC

22

The ABC Advisory Council is established

under the provisions of the ABC Act to provide

advice to the Board on matters relating to

the Corporation’s broadcasting programs.

The ABC Board appoints the 12 members of

the Council for a period of up to four years.

The public is invited to apply to join the

Council through promotions on ABC Radio,

Television and Online and advertisements in

the press. This year, Ms Catherine Prosser

from the Australian Capital Territory, Miss

Jaime Phillips from Western Australia, Mr

Anthony Peters from New South Wales and

Mr Joel Buchholz from Queensland, joined

the Council.

The role of the ABC Advisory Council, under

Section 11 of the ABC Act is to “either on its

own initiative or at the request of the Board,

advise the Board on matters relating to the

Corporation’s broadcasting programs”.

The Council:

• facilitates communication between

the community and the ABC Board

• on its own initiative, provides advice to the

ABC Board in relation to ABC programs

and program policies

• provides constructive advice on ABC

programs and programming issues in

response to requests from the Board

and senior management

• provides an overview for the Board

of community concerns and interests

• carries out community consultation

programs seeking community views on

ABC programming initiatives and policies.

The ABC Advisory Council and the ABC Board

continued to build on the Council’s role in

advising the ABC Board on community views.

The ABC Board Advisory Committee, chaired

by Ron Brunton, met with the Council after

each Advisory Council meeting; and the

full Board held its annual meeting with the

Advisory Council in December 2006. It also met

with ABC Divisional Directors to discuss key

areas of interest including radio, television

and audience research.

The Council met three times during the year

and provided feedback to the ABC Board on

a wide range of programs and services.

It prepared papers on:

• The Role of the ABC in Regional Australia

(March 2007)

• Report on Equity and Diversity

(December 2006).

These papers have been circulated widely

in the ABC and will be considered in the

Corporation’s strategic planning.

The Council’s work plan for the remainder

of 2007 includes discussion papers on young

people’s engagement with the ABC, papers

on scientific programming, the branding

of the ABC, ABC Online, inclusiveness and

issues around the source of food.

The Advisory Council’s recommendations

and commendations for the year, together

with responses from ABC management,

appear in Appendix 17 (page 199).

ABCAdvisoryCouncilBack row (left to right): Jane Munro(Convenor, Vic), Alan Wu (Qld), JoelBuchholz (Qld), Joshua Knackstredt (NSW),Geoffrey Cadogan-Cowper (Tas), AnthonyPeters (NSW) and Robyn Lambley (NT)Front row (left to right): Joanne Roach(WA), Pamela Chick (Qld), Jaime Phillips(WA), Catherine Prosser (ACT) andDr Paul Collier (SA).

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As the ABC gives effect to the Corporate

Plan 2007–10, from 1 July 2007, it continues

to operate strongly on all broadcast and

digital media platforms; and it retains a

very high level of community approval

as shown in the most recent Newspoll

appreciation survey.

But the Corporation must be constantly

mindful of the changing needs of audiences.

Increasingly people will want ABC content

on demand—when they want it, on media

platforms of choice—not just when the

Corporation wants to schedule it. Accordingly

the new Corporate Plan gives strong

emphasis to the fulfilment of the ABC’s

Charter obligations in the context of the

rapidly maturing digital media environment.

Online and other digital delivery platforms

are a key part of everything the ABC does.

They have shifted from the fringe of operations

ten years ago to the very centre of ABC

Television, Radio and News output. Each

content division needs to consider how

best to deliver content across all platforms.

A core objective of the new three-year Plan

is that the ABC continues to be recognised

as the leading Australian media space where

people engage with issues and ideas. Over

the planning period, it aims to: deliver more

content on additional digital radio and

television networks; increase Australian

content levels on television; provide current

programs and key archival material

for download; strengthen national and

local news bulletins online; enable more

user-generated material; secure more

places to see Australia Network across

the Asia-Pacific region; and be as relevant

and compelling in the digital world as it

has been in the era of analog broadcasting.

Another core focus will be to ensure the

ABC’s independence, integrity and high

standards, as required by the ABC Act

and Charter. In particular, it will uphold

the highest editorial standards in

Australian broadcasting.

A third priority is to encourage and support

the innovation, creativity and skill of ABC

people. The Corporation will renew its

commitment to providing high-quality

leadership and a work environment that

fosters responsibility and opportunity.

The Year Ahead 2008

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