| Dear Colleagues
The ABC had argued in its recent Triennial Funding Submission to Government that we would not be able to maintain our current level of activity without an increase in funding for content. Having failed to secure that additional funding in the May budget, I foreshadowed the impact this would have on ABC services and programs. You will be aware I had previously announced the closure of our digital multichannel services as a result of funding pressures. As you will understand, the Corporation must live within its budget funds as appropriated by Parliament. Our primary objective in examining how to achieve this has been to retain programs wherever possible. No decisions were easy. Every effort was made to determine fairly which programs and services are to be affected, bearing in mind our Charter obligations and my determination to minimise impact on our staff and audience. The five overarching objectives which underlined managements budget strategy were: – minimise impact on staff On Thursday of last week the Board approved a budget strategy for the 2003/04 financial year which I believe enables us to achieve the above objectives. Faced with the task of having to bridge a recurrent funding gap of some $26m, management had made proposals for reductions to programming and non-programming budgets. In brief those reductions covering a full financial year and which include the previous decision in respect of the multichannels, are: Corporate Support and other non-program functions: $5.04m Although we will endeavour to redeploy as many staff as possible, unfortunately it is anticipated that some twenty to twenty five jobs will be made redundant as a result of our budget pressures. This impact is subject to the agreed consultation process. Those staff that may be impacted directly by the budget outcome have been separately advised by management. Details of the program and service reductions are provided in the below media release to be issued shortly. Staff may very well question the need for program and service reduction when the Government has maintained our funding in real terms. As I have endeavoured to explain publicly on a number of occasions this problem we find ourselves having to confront has generally been brought about as a result of: – The costs of broadcasting and television program acquisition costs increasing at a higher rate than the increase in our funding base, Staff will also be aware of expansion in other areas over recent years including Online and NewsRadio, again for which we received no additional funding. As difficult as any decision is to reduce programs and services, the ABC has no option other than to operate within the level of funds provided by the Parliament. While the resources of the ABC are diminished, its responsibilities are not. I am confident that we have made the best arrangements to meet those responsibilities – both to our staff, and to our audiences whilst we continue to grow our audiences and discharge our obligations as Australias National Broadcaster. It has been recently suggested in the media that the ABCs funding difficulties could be overcome if the ABC were to modify its News and Current Affairs programs, or modify its response to Government complaints. That in return, the ABC may be favoured with additional funding. Doing that would not protect the ABC, but bring about its demise. ABC journalism is not for sale and I am confident staff understand that. Furthermore, I think the Australian people understand it, and generations of Australians have placed their trust in the ABC’s independence from political and commercial influence. We must not betray that trust. If continued funding difficulty is the price of proper editorial independence, then the ABC must be prepared to pay it. Although it has been an extremely difficult period for ABC staff, both leading up to the announcement of the Federal Budget in May and the period since, I am confident that the professionalism, dedication and resilience of ABC staff will prevail and the Corporation will continue to deliver quality programs to our audiences. As we progress this matter I will keep staff informed. Consultation with staff has now commenced and consultation with the Unions will commence shortly. Russell Balding |