through australian eyes

04

through australian eyes

A N N U A L R E P O R T

a u s t r a l i a n b r o a d c a s t i n g c o r p o r a t i o n

Eric Campbell

T h e N a t i o n a l B r o a d c a s t e r

through australian eyesEric Campbell

A n n u a l R e p o r t 2 0 0 3 - 0 4

Foreign Correspondent

Over the last seven years Eric Campbell has

reported to Australians from some of the most

remote and challenging places on earth. ‘To me,

as a journalist, being a foreign correspondent is

the pinnacle. You get entrée to extraordinary

people and places and to intense experiences.

It’s special. You are doing something that people

in other parts of the industry are not. It’s very rare to

meet a reporter from another Australian network.’

His assignments have included reporting the wars

in Chechnya, Afghanistan and the Balkans, tracking

polar bears in the Arctic, filming at secret military

bases in central Russia and travelling by sled

with nomadic reindeer herders in Siberia.

Eric joined the ABC in 1986 and worked with The

Investigators and Quantum as well as news and

current affairs. He applied for several overseas

positions, ‘I spent a year learning Japanese thinking

I’d probably go there’. Finally in 1996 he was given

the Moscow posting for three years. He found

it very interesting although, ‘when I was there it

was still fairly grim—they were trying to come

to terms with the new order.’

In marked contrast to correspondents from

overseas networks ABC reporters operate as

a compact unit—usually just the reporter and

a cameraman. ‘ABC foreign correspondents are

on duty 24/7. Most days are 12 to 14 hours,

but if travelling, an 18-hour day is not unusual.’

Eric is writing a book about the last seven

years, there are so many stories and memories

and friendships.

‘You are working in intense situations, seeing

people at their most desperate. You can form

some great friendships. It is a great joy to go

back and visit.’

everyone’s

accurateimpartialnews and analysisindependent

s e c t i o n 1A n n u a l R e p o r t 2 0 0 3 - 0 4

ContentsLetter of Transmittal 1

Corporate ReportABC Vision, Mission Statement and Values 2Significant Events in the Past Year 2ABC Programs and Services 5Board of Directors 10Statement by ABC Board of Directors 12ABC Advisory Council 14The Year Ahead 15

OverviewABC Audiences 18Corporate Governance 32Financial Summary 37Corporate Plan Summary 40ABC Organisational Chart 41

ABC DivisionsRadio 44Television 49New Media and Digital Services 55News and Current Affairs 58International Broadcasting 62Production Resources 66Development 69Enterprises 73Business Services 77Human Resources 81Corporate Affairs 84Technology and Distribution 88

Summary ReportsCorporate Plan Performance Summary 96Outcomes and Outputs 104ABC Subsidiaries 113

Independent Audit Report 116Financial Statements 117

Appendices 153

ABC Charter 202

5 October 2004

The Hon. Helen CoonanMinister for Communications,Information Technology and the ArtsParliament HouseCANBERRA ACT 2600

The Board of the Australian Broadcasting Corporation is pleased to present the Annual Report of the Corporation for the year ended 30 June 2004.

The report has been prepared in accordance with the requirements of the Commonwealth Authorities and Companies Act 1997 and the Australian Broadcasting Corporation Act 1983.

Office ofDonald McDonald AO

Chairman

ABC Ultimo Centre700 Harris StreetUltimo NSW 2007Australia

GPO Box 9994Sydney NSW 2001

Tel. +61 2 8333 5363Fax. +61 2 8333 2967abc.net.au

VisionValued and integral to Australia’s culture.

MissionGuided by the ABC Charter to engage our audiences with

an independent, distinctive and appealing mix of programming

and content, delivered via multi-platform services.

Our Corporate ValuesWe will manage and conduct our business in an effective,

efficient and ethical manner, according to values we share

in the Corporation.

We value:• The ABC—acting always to support the role of a national

public broadcaster in delivering valued outcomes for the

Australian community

• Editorial Excellence—aspiring to the highest standards

of accuracy, impartiality and independence, in reflecting a

balanced and broad range of views and interests through

adherence to editorial policies and guidelines

• Innovation and Creativity—striving for excellence in the

development and presentation of distinctive information

and cultural programming content

• Universal Access—ensuring that all Australians can access

services that provide the knowledge required in a modern

information-based society

• Our People—providing opportunities for our people to

grow, personally and professionally, during their time

with the Corporation

• Good Governance—demonstrating our accountability

for the efficient and effective use of public resources

• Shared Commitment—accepting the shared obligation

to act responsibly and with a commitment to fairness

and justice

• Courage—encouraging the leadership and vision to

adapt to change with flexibility, integrity and decisiveness.

July 2003ABC Television and New Media and Digital

Services launched the multi-platform drama

Fat Cow Motel. Audience response to the

interactive program was very positive and

the web component of the program became

ABC Online’s most popular website ever for

a television program.

The ABC food magazine delicious won

‘Magazine of the Year’ at the Magazine

Publishers of Australia Awards.

Production Resources completed the

move of the Sydney production centre

from Gore Hill, where ABC television had

been produced and broadcast for over

forty years, to new, purpose-built city

premises in Ultimo and modified premises

at Lanceley Place, Artarmon.

558 ABC Great Southern at Wagin,

Western Australia was officially opened.

Radio Thailand started weekly rebroadcasts

of Radio Australia feature programs on its

national English language network—the first

time since 1996 that Radio Australia programs

have been heard on local radio in Thailand.

August 2003Radio Australia completed a new educational

website, Understanding Australia, which

complemented a 13-part radio series produced

with Monash University. The site explains

Australia to overseas audiences, particularly

younger people who might be interested in

studying in Australia.

2A n n u a l R e p o r t 2 0 0 3 - 0 4

ABC Vision , Mission and Values

SignificantEvents

September 2003High definition television (HDTV) on-air

transmission commenced.

The Chairman of the Board launched

ABC Asia Pacific in the Hong Kong market.

ABC Television and Radio broadcast the

State funeral of Australian country music

legend Slim Dusty.

October 2003Radio Australia presented an extended

interview with Indonesia’s Security Minister

and Presidential candidate, Susilo Bambang

Yudhoyono, recorded at a public forum at

Asialink at the University of Melbourne.

November 2003The Winged Sandals website, which explores

Greek mythology through interactive story

telling and game play, was launched at the

University of Melbourne. The site was

co-produced with the University’s Centre for

Classics and Archaeology and funded with

assistance from ABC Development division.

ABC Television’s broadcast of the final episode

of Kath and Kim (series 2) attracted more than

two million viewers, the highest audience

figure ever for an ABC program.

92.5 ABC Central Coast opened at Erina,

New South Wales.

Director of Television, Sandra Levy, delivered

the Hector Crawford Memorial Lecture at the

Screen Producers Association of Australia

(SPAA) Conference in Melbourne.

ABC Television broadcast After the Fires,

a documentary about the aftermath of the

devastating Canberra bushfires of the

summer of 2003.

ABC Television broadcast the second

series of Dynasties, which explored the

history of six of Australia’s most

famous families.

December 2003The Minister for Communications, Information

Technology and the Arts, the Hon. Daryl Williams,

AM, QC, MP, officially opened ABC Canberra’s

refurbished Northbourne Avenue facilities.

ABC Television broadcast The School

Spectacular 2003, an entertainment

extravaganza featuring thousands of

children from New South Wales schools

performing on stage.

Radio Australia signed an agreement with

the Adult Multicultural Education Services

Victoria to scope the production of new

English-teaching language series for radio.

January 2004The Hitwise online ratings service ranked

The Playground as the number one website

and Rollercoaster the number three website

for Australian children visiting Australian

websites. The statistics for Australian

children visiting worldwide website ranked

The Playground second and Rollercoaster ninth.

ABC Television broadcast the annual Hopman

Cup from Perth, which was shot in widescreen

digital, using three ABC digital outside broadcast

vans and a crew of 120. The event is the

largest outside broadcast production the

ABC produces on a regular basis.

ABC Television broadcast The Greatest

Australian, a special Australia Day event in

which eight leading Australians argued the

merits of their choice for the title of the

‘greatest Australian’.

February 2004The ABC hosted the Australian Interactive

Multimedia Industry Association (AIMIA)

Awards in the ABC Ultimo Centre, Sydney.

ABC New Media and Digital Services had

14 finalists across 11 of the 15 categories

and won six categories, including the ‘Best

of the Best’ award with Winged Sandals,

Kylie Kwong, Grow Your Own, Game On

and Health Matters.

s e c t i o n 1 3A n n u a l R e p o r t 2 0 0 3 - 0 4

Mr Bruce Esplin, Victorian Emergency Services

Commissioner, launched the Black Friday

website, about the 1939 bushfires. In attendance

were members of the media and survivors of

the fires.

Local Radio website Oztrax launched to

promote Australian music and performance.

ABC Television premiered three new television

entertainment series, Strictly Dancing,

The Einstein Factor and Mondo Thingo.

ABC Television broadcast the landmark

documentary series Wild Australasia, a six-part

co-production between ABC Television’s

Natural History Unit and the BBC.

Pacific Island broadcasters supported

Radio Australia’s concept of a Pacific

Radio Network, facilitating the sharing

of radio content across the region, with

Radio Australia serving as the central

distribution point.

March 2004ABC Books launched Traveller’s Tales in

conjunction with Through Australian Eyes,

a travelling exhibition of photos and stories

from the ABC’s foreign correspondents.

ABC Audio launched its first MP3 audio

product, Taim Bilong Masta.

Radio Australia consolidated its position

as the second most popular international

broadcaster in Indonesia following a national

audience survey that pointed to significant

gains by the service. Audience awareness was

up 50% on 2002 results to 8.4% or 12 million,

while Radio Australia’s total audience estimate,

had doubled to 7 million listeners.

April 2004ABC New Media and Digital Services

launched Checklist for an Armed Robber,

an online component to the Radio National

drama series. It used interactive flash

components to give listeners an opportunity

to explore the characters, the environment

and the themes behind the program.

Daily relays of Radio Australia’s Khmer language

broadcasts on local FM radio commenced in

Phnom Penh, reaching 60% of Cambodia’s

population. Radio Australia’s English news

is also relayed three times each day.

Radio Australia celebrated 60 years

of shortwave broadcasting from the

Shepparton transmitter site in Victoria.

On 21 April ABC Asia Pacific introduced

The Editors, its Asian weekly discussion

program made in Singapore.

Radio Australia started weekly trial digital

broadcasts to Europe using the Digital

Radio Mondiale platform.

May 2004ABC Online recorded its highest number

of unique Australian users at 1.43 million,

with a reach of 14% in the active

Australian Internet population.

Thailand’s Mass Communication Organisation

started relaying Radio Australia news every

afternoon and evening on Bangkok FM 107.

A Joint Parliamentary Inquiry into Australia’s

Relationship with Indonesia recommended

that ‘priority should be given to measures

which will significantly extend the reach of

Radio Australia, preferably at least to levels

enjoyed in the ’70s and ’80s.

4A n n u a l R e p o r t 2 0 0 3 - 0 4

Significant Events (continued)

The Minister for Foreign Affairs and Trade,

the Hon. Alexander Downer, MP, launched

ABC Asia Pacific in the Singapore market.

June 2004ABC Television broadcast the epic, multi-award

winning series Angels in America over three

consecutive nights.

ABC Television broadcast the television

special Ten Days to D-Day to commemorate

the 60th anniversary of D-Day.

Radio Australia secured a new 24-hour FM relay

for its English-language broadcasts in Cambodia

on Phnom Penh FM 101.5. This is Radio

Australia’s third 24-hour FM relay after Suva

92.6 FM and Port Moresby FM 101.9.

Radio Australia hosted the Second Herb

Feith Memorial Lecture in Melbourne in

association with Monash University.

783 ABC Central Australia launched as part

of new Local Radio transmission arrangements

in the Northern Territory.

ABC Enterprises

• 39 ABC Shops

• 84 ABC Centres throughout Australia

• Customer Delivery Service (fax, telephone

and mail orders) and ABC Shop Online

International Broadcasting

• Radio Australia, an international radio service

broadcasting by shortwave, satellite and

rebroadcast arrangements to Asia and

the Pacific

• ABC Asia Pacific, an international television

and online service broadcasting via satellite

and rebroadcast arrangements to Asia and

the Pacific

ProgrammingThe ABC offers a distinctive range of

programming which includes:

• Arts and Culture

• Business and Finance

• Children’s

• Comedy

• Current Affairs

• Drama

• Education

• Factual—Contemporary Life; Health;

Indigenous; Law, Consumer Affairs and

Media; Special Events; and Topical Issues

• History

In achieving its vision the ABC delivers

comprehensive programs and services

which reflect the interests and aspirations

of diverse Australian communities.

ServicesABC Radio

• four national radio networks comprising

Radio National, ABC Classic FM, triple j,

and ABC NewsRadio (on the Parliamentary

and News Network)

• dig, a music-based service available

via the Internet and digital television

• nine metropolitan radio stations in capital

cities and Newcastle

• 51 regional radio studios throughout Australia

ABC Television

• national analog television service

• digital television with analog simulcast from

97 transmitters around Australia

• local television in each State and Territory

ABC New Media and Digital Services

• ABC Online, serving more than 1 627 997

pages of web content

• Content and services on emerging platforms

including interactive television, SMS, mobile

services for 3G phones and other wireless

devices

s e c t i o n 1 5A n n u a l R e p o r t 2 0 0 3 - 0 4

ABC Programs and Services

• Light Entertainment

• Music

• News

• Regional and Rural

• Religion and Ethics

• Science, Technology,

Environment and Natural History

• Sport

TransmissionThe ABC transmits its programs via:

• 973 terrestrial transmitters around Australia

for analog television services, including Self

Help and Community facilities, formerly known

as Broadcasting for Remote Aboriginal

Communities Scheme (BRACS)

• 949 terrestrial transmitters around Australia

for analog radio services, including Self Help

and Community facilities, formerly known

as BRACS

• 97 terrestrial transmitters around Australia

for digital terrestrial television services, which

include the dig Internet radio service

• a digital satellite service to remote homesteads

and communities within Australia carrying

ABC analog television, Radio National,

ABC Classic FM and triple j, eight different

regional radio services (two each for the

Northern Territory, Queensland and Western

Australia, one each for New South Wales,

South Australia and Victoria), and ABC

NewsRadio and Parliamentary broadcasts

on the Parliamentary and News Network

• ABC Television retransmitted via cable

subscription services on Foxtel and Optus

Vision, and satellite subscription service

on Austar

• ABC Asia Pacific transmitted on the

PanAmSat 2 and PanAmSat 8 satellites,

and via rebroadcasts in countries across

Asia and the Pacific

• Radio Australia Services via shortwave

transmission from Brandon in Queensland,

Shepparton in Victoria, Darwin, Singapore,

Taiwan and the Marianas; the PanAmSat 2

and PanAmSat 8 satellites; and via

rebroadcasts on stations and outlets in

countries across Asia and the Pacific, Europe

and North America, including the Palapa C2

(via Muracam of Japan), Agila-2 (via Dream

of the Philippines) and Cakrawarta-1 (via

Indovision of Indonesia) satellites

6A n n u a l R e p o r t 2 0 0 3 - 0 4

ABC Programs and Services(continued)

s e c t i o n 1 7A n n u a l R e p o r t 2 0 0 3 - 0 4

Erina

ABC Broadcasting CoverageProportion of the Australian population able to receive transmissions from ABC broadcasting services

Australia NSW/ACT Vic Qld WA SA Tas NT

Analog Television 98.22% 99.22% 98.83% 97.35% 97.01% 98.51% 97.11% 78.84%

Digital Television 94.28% 95.78% 97.53% 92.88% 88.37% 95.28% 89.89% 54.01%

Local Radio 99.34% 99.69% 99.78% 99.50% 98.77% 99.63% 98.43% 80.93%

Radio National 98.50% 99.12% 99.46% 97.83% 96.38% 99.54% 99.14% 79.60%

ABC Classic FM 95.66% 97.49% 97.96% 94.31% 89.68% 95.04% 95.67% 67.18%

triple j 95.19% 97.10% 97.92% 93.20% 88.82% 94.77% 95.67% 67.18%

ABC NewsRadio 78.19% 79.59% 82.54% 65.16% 76.50% 91.07% 94.86% 53.37%

Domestic Shortwave 0.97% 0.00% 0.00% 0.00% 0.00% 0.19% 0.00% 86.45%

Note: Population was derived from Australian Bureau of Statistics 2001 Census data

everyone’s

8A n n u a l R e p o r t 2 0 0 3 - 0 4

australianspec ia l i sed in format ion

the city and the bushconnected

through australian eyesKate SieperRural Reporter Kate Sieper is one of the ABC’s team of 38 rural

reporters who are based in regional centres

around the country. ‘I went from living off the

cut-and-thrust of current affairs radio to being

able to see what radio really meant to people and

finding a new and different satisfaction in being

there to make sure their stories were heard.’

Kate works out of Katherine in the Northern

Territory and, like her rural colleagues elsewhere,

often drives hundreds of kilometres across

isolated areas and difficult terrain to cover

a story.

‘A rural reporter,’ she explains, ‘can be seen

at the saleyards covering the cattle prices, out

on a header checking the crops or riding giant

bulldozers at a mine. They do interviews on

everything from salinity to feral camel control.

They cover agripolitics and issues of land

management as well as personal stories.

They put rural Australia on radio and online.’

It’s a long way from home for the English

Honours graduate from Canberra.

Kate started with ABC Radio in Perth in 1999.

In 2000 she accepted a position in Karratha

in the Pilbara.

‘It was a difficult decision for me to travel to

the Pilbara and one which definitely changed

my life and my career with the ABC. As a rural

journalist based outside a metropolitan centre

you really get close to the community you are

reporting on.’

s e c t i o n 1 9A n n u a l R e p o r t 2 0 0 3 - 0 4

Donald McDonald AOAppointed ABC Chairman in July 1996,

Donald McDonald was re-appointed Chairman

on 24 July 2001 for a second five year term.

Donald McDonald has been involved in the

administration of arts enterprises for over 35

years, including Sydney Theatre Company,

Musica Viva Australia and Vogue publications.

He was chief executive of the Australian Opera

for ten years until December 1996, and a

Director of SOCOG and the Constitutional

Centenary Foundation.

He is Chairman of The Really Useful

Company (Aust) and a Director of Focus

Publishing, the Glebe Administration Board

and the Australiana Fund.

Judith SloanAppointed a Director from 9 August 1999

and Deputy Chairman from 8 September

2000 to 9 August 2004.

Professor Sloan is a part-time Commissioner

of the Productivity Commission, a Director of

Santos, Mayne, SGIO Insurance, and Chair

of SGIC Holdings.

Russell BaldingAppointed Managing Director 29 May 2002.

Deputy Managing Director from 10 December

2001, Russell Balding was previously Director

of ABC Funding, Finance and Support Services.

He holds a Bachelor of Business Studies and

a Diploma of Technology (Commerce), and is

a Fellow of CPA Australia. Mr Balding has had

a distinguished career in public sector financial

management and administration, having held

senior financial management positions within

major NSW public sector organisations. He

has had extensive experience in financial and

executive general management, accounting,

auditing and capital works programming in

a number of organisations.

1 0A n n u a l R e p o r t 2 0 0 3 - 0 4

Donald McDonald, Judith Sloan,

Russell Balding, Ramona Koval,

Ross McLean, John Gallagher,

Leith Boully, Maurice Newman,

Ron Brunton

ABC Board of Directors

Ramona KovalRe-elected Staff elected Director from

June 2004 for a further two year term.

Ramona Koval presents and produces the

weekly ABC Radio National program Books

and Writing, and has co-presented Australia

Talks Books, the monthly talk-back national

book club for the past two years. She is a

freelance columnist and newspaper feature

writer and is the author of one novel,

Samovar, and three books of non-fiction.

Ross McLeanAppointed a Director for a five year term

from 9 August 1999.

Ross McLean is the Deputy Chief Executive

of the Chamber of Commerce and Industry

of Western Australia, Member of the Board of

Management of Western Australian Municipal Self

Insurance Scheme, Director of Coventry Group,

and Chairman of the Board of Management

of the Fremantle Football Club (AFL).

John Gallagher QCAppointed a Director for a five year term

from 9 December 1999.

John Gallagher is a QC whose practice

involves civil and criminal law. His experience

encompasses environmental, town planning,

heritage, licensing, broadcasting tribunal,

valuation and general commercial cases.

He is the author of the 1990 Australian

Supplement of Licensing Laws in Halsbury’s

Laws of England, and articles on town planning

practice, compensation and licensing matters.

Leith BoullyAppointed a Director for a five year term

from 11 October 2000.

Leith Boully, who lives in regional Queensland,

holds qualifications in rural science and business

studies. She is Director of the Boully Pastoral

Company, Chair of the Community Advisory

Committee of the Murray Darling Basin Ministerial

Council and Director of the Land and Water

Resources Research and Development

Corporation.

Maurice Newman ACAppointed a Director for a five year term

from 20 December 2000. He resigned

on 30 June 2004.

Maurice Newman is Chancellor of

Macquarie University and the Chairman

of a number of companies and other bodies,

including the Australian Stock Exchange,

Acrux, Tourism New South Wales, Sydney

Convention and Visitors Bureau and the

Australian Government’s Financial Sector

Advisory Council.

His career spans forty 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 also Chairman

of Deutsche Asset Management (Australia)

Limited from 1997 until 2000.

Ron BruntonAppointed a Director for a five year term

from 1 May 2003.

Dr Brunton is currently the Director of

Encompass Research—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 from 1995 to 2001.

He has published academic 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.

s e c t i o n 1 1 1A n n u a l R e p o r t 2 0 0 3 - 0 4

Through Australian EyesGiven the ABC’s ability to connect with Australians

everywhere, it should perhaps be no surprise

that last year more Australians made use of the

ABC than at any time in its history. Every week,

the ABC directly touches the lives of around

three-quarters of the Australian population.

The fourth ABC Appreciation Survey conducted

independently by Newspoll confirms that nine

out of 10 Australians believe the ABC performs

a valuable job for the community.

The ABC has a particular statutory mandate as

a public broadcaster. While obliged to offer

programs of wide appeal, it must also present

programs for more limited, specialised audiences.

It is a mandate well exercised. The Corporation

offers a breadth of quality programming that has

no rival in the Australian electronic media. The

ABC’s provision of programs that properly inform

public life distinguishes the public broadcaster’s

contribution within the Australian media.

Discussion and debate about policies and

decisions that shape our lives will not always

make for popular programs. This is particularly

true of television since many people regard it

primarily as an entertainment medium.

Independent and trusted News and Current

Affairs programs give time and place to

questioning, debate and discussion, adding

depth to the Australian democratic process.

In 2003-04, ABC News and Current Affairs

programs enjoyed a greater audience share

than ever before.

The ABC continues to give prominence to a

broad range of subjects and ideas that would

otherwise be neglected because they were

not the most popular. Talents are allowed

to develop, rather than expected to be

immediately successful.

While Australian television and radio became

increasingly imitative during the past year, the

ABC grew more imaginative and inventive. It

offered more choice at a time when the market

was inclined to offer less—an enduring reason

for the ABC’s existence, and its continuing

point of difference.

We see that difference in the creative talents

who appear on Strictly Dancing; through new

ideas brought to light by The New Inventors;

and through Television’s wide range of spirited,

innovative programming.

Each ABC Radio network continued to

reach out and respond to the interests of its

specialised audiences. Many young Australian

musical talents were heard first on triple j, which

continued to both discover and promote

genuinely original, unmistakably present-day

Australian music.

Innovative and imaginative work by New Media

and Digital Services kept the Corporation at the

front line of broadcast developments. It met a

growing demand for media to be available

in new and different forms with a myriad of

engaging and award-winning experiences.

These contributions add up to an extraordinary

range of reference points to the ABC in everyday

Australian life.

Continuous Reform, Future StrategyFrom the mailroom to the Board Room, the

Corporation’s program of continuous reform

has ensured that the ABC is better governed,

more efficiently managed and is delivering the

best possible dividend to the public on its

investment in the ABC.

The Board particularly commends the managerial

reforms initiated and led by Managing Director,

Russell Balding. Through a steady, systematic,

1 2A n n u a l R e p o r t 2 0 0 3 - 0 4

board Directors Statement ’

and well-ordered program of reform, the

value derived from public funding has been

gradually extended.

The fiscal strategy applied across the Corporation

following the 2003-06 triennial funding agreement

with Government has succeeded in balancing

activities to a sustainable level.

The Board, too, has examined its own

governance procedures and practices in

accordance with a considerable body of best

practice guidelines, including those set out by

the Australian National Audit Office (ANAO) in

its discussion paper Corporate Governance in

Commonwealth Authorities and Companies.

This paper provides a checklist for directors to

assess the strengths and weaknesses of their

organisation’s governance framework. ABC Board

Directors first completed the ANAO checklist

in October 2001 and most recently in June 2004.

A comparison of the results shows improvement

across nearly every measure. The 2004 results

confirm that Board members believe effective

governance processes are in place at the ABC.

The ANAO follow-up review on Corporate

Governance in the ABC commended the ABC’s

progress with recommendations of the original

2001 review—more than 75% of which have

been fully implemented or are on track, with

the remainder partially implemented.

The ABC Code of Practice summarises the major

principles that guide ABC programs. During

the past year, the Editorial Policies Committee

of the ABC Board supervised revision of the

Code. This revised ABC Code of Practice

will become effective from 1 July 2004.

The ABC Advisory Council provided the

Board’s Advisory Council Committee with

issues-based discussion papers and advice

on ABC programming derived from the wide

range of community links maintained by

Council members.

During the Board strategy development day,

consideration was given to major infrastructure

and resource allocations. The Board’s Finance

Committee approved the development of a

ten-year capital plan for the Corporation.

The Board also placed strategic priority on

maximising future opportunities and possibilities

for the ABC, examining the Corporation’s

capacity to develop quality content for all

current and new media platforms.

Maurice Newman AC resigned from the

Board with effect from 30 June. The Board

would like to record its appreciation for

the significant contribution made to the

Corporation by Mr Newman during his term.

Through his Chairmanship of the Board’s

Finance Committee and his work in establishing

the Directors Handbook and Code of Conduct

he has created a valuable legacy.

ConclusionThrough persistent effort, a progressive

and distinctive ABC has this year captured

the Australian imagination in more ways

than ever before.

The Board is pleased to see that today’s

ABC is an enduring affirmation of public

broadcasting’s power to stimulate, challenge,

inform and entertain and in doing so, to fully

reflect the complexity of contemporary

Australia and its people.

In 2003-04, the Board ensured that the

Corporation operated within the limits of

available resources and is satisfied that it has

fulfilled its duties as laid out in Section 8 of the

Australian Broadcasting Corporation Act 1983.

The Board commends this report to the

Parliament and the people of Australia.

s e c t i o n 1 1 3A n n u a l R e p o r t 2 0 0 3 - 0 4

Donald McDonald AO Chairman, Judith Sloan Deputy Chair, Russell Balding Managing Director,

Leith Boully Director, Ron Brunton Director, John Gallagher QC Director,

Ramona Koval Staff Elected Director, Ross McLean Director, Maurice Newman AC Director

The ABC Advisory Council is established under

the provisions of the ABC Act to provide advice

to the Board on matters relating to broadcasting

and television programs of the Corporation.

The ABC Board appoints the twelve members

of the Council for a period of up to four years.

The public are invited to apply to join the Council

through promotions on ABC Radio, Television

and Online and advertisement in the press. This

year Dr Pamela Chick, Mrs Robyn Lambley, Dr

Paul Collier and Mr Alan Wu joined the Council.

The Advisory Council and the ABC Board

continued to build on Council’s role in advising

the ABC Board on community views.

The ABC Board Advisory Committee chaired

by Professor Judith Sloan met with the Council

after each Advisory Council meeting and the

Subcommittee held its annual meeting in

December 2003.

Council has continued to make recommendations

to the Board on various aspects of ABC

programming and has had meetings with ABC

Executive Directors on key areas including

development and audience research.

Council has held focus discussions on Arts,

Documentary and Sports programming. The

Council met three times during the year and

between meetings individual members obtained

feedback and views from a diverse range of

communities including disability networks,

e-mail lists from local areas, face to face contact,

business associations, small business people,

local government, universities, TAFE colleges,

Indigenous people, libraries, professional

associations, medical and scientific contacts,

sports groups, Regional Development Council,

Non Government Organisations and participation

in talk-back radio.

The Council prepared Discussion Papers on

Australian History—Exploring the Past to Inform

our Future—and Program Standards and

Community Expectations—Treating Content

with Integrity, Audiences with Respect and

New Perspectives with Courage and Disability

in the ABC. Council also conducted a review

of the Cultural Diversity Subcommittee Report

of January 2003.

These papers have been circulated widely in the

ABC and have been included in the Corporation’s

Corporate Plan processes.

This year the Council’s Workplan for the year

includes Discussion Papers on Australian Drama

and Science. Work is commencing on a further

paper with the working title Courage and

Innovation in Program Delivery.

A summary of the Council’s recommendations

and commendations for the year, together

with responses from ABC management is

in Appendix 17 (page 167).

1 4A n n u a l R e p o r t 2 0 0 3 - 0 4

abc advisory council

National Advisory Council

Back row standing from left: Mr Simon Andrews,

Ms Sascha Walkley, Mr Alan Wu, Mr Phil Wood,

Mr Keith Smith, Dr Pamela Chick and

Mrs Robyn Lambley.

Front row seated from left: Ms Beverly Smallwood,

Mr Glyn Parry, Dr Paul Collier, Ms Deborah Klika

(Convenor) and Professor Michael Burgess.

In last year’s Annual Report, the ABC

foreshadowed a period of consolidation as

it commenced a new funding triennium in

2003-04. The Corporation needed to take

the action to operate at a sustainable level

of funded activities.

In May 2004, the Government announced it

would extend funding of the ABC’s National

Interest Initiatives (NII) to June 2008, providing

a total of $54.4 million over three years. NII

funding enabled the Corporation to significantly

expand its services to audiences in regional

Australia and to generate other programming in

areas such as business and finance, children’s

and education. The Government also undertook

to provide $17.4 million over four years in

recognition of the increasing costs of purchasing

television programs in Australia and internationally.

This Budget outcome provided a secure financial

base for the current funding triennium (which

ends in June 2006) and the basis for a new

three-year Corporate Plan.

The ABC will continue to position itself for the

inevitable transformation of Australia’s media

environment, as audiences respond to a growing

choice of established and emerging digital

services. It is essential that the ABC apply a

‘whole-of-audience’ focus to its radio, television

and new media services, if it is to remain relevant

and valued in that changing environment.

Planning priorities derive explicitly from the

ABC’s legislative Charter to inform, educate

and entertain. The 2004-07 Corporate Plan

will have four overall Objectives, which reflect

the core values of national public broadcasting:

• contribute to a sense of national identity

• engage audiences with relevant and

innovative programs and services

• ensure the ABC’s independence, integrity

and high standards

• provide maximum benefit to the people

of Australia.

An important priority from 2004-05 is to create

more opportunities for audiences to connect

with the diversity of their communities through

an ABC that is distinctively Australian in its

programming and services.

Innovation in digital broadcasting is another

key priority. The ABC will establish a second

(digital) television channel that uses new media

production and presentation methodologies to

deliver operational flexibility and efficiency. It

also intends to further explore the potential

of Digital Radio Broadcasting.

In competing for the attention of audiences,

the ABC will do so on its own terms as a

non-commercial public broadcaster that offers

programming of broad appeal and more

specialised interest.

The Board and management also propose

to continue striving to achieve best practice

standards of corporate governance and high

value for money to the Australian community.

s e c t i o n 1 1 5A n n u a l R e p o r t 2 0 0 3 - 0 4

The Year Ahead

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