Federal Budget 06

Our CEO, Matthew Deaner expressed ongoing concerns that the Australian Federal Government has not sufficiently addressed cuts in consecutive budget-cycles, that have resulted in less support for the sector by public broadcasters and cuts in screen support programs from Screen Australia.

Earlier this week, Screen Producers Australia and other industry partners released our joint policy priorities. In it we call on Government and all major parties to ensure secure, sufficient and transparent funding for ABC, SBS and Screen Australia. Furthermore, we call for ambitious and deliverable policies to address the lack of competitive tax offsets as well as obligations for Netflix and other SVOD platforms that will be critical to our industry's ongoing health and success. Tonight's announcement unfortunately does not address a very concerning trend of cuts that has occurred over the last couple of years, Mr Deaner said.

Screen Producers Australia also notes the announced cuts in spectrum licence fees to commercial free-to-air broadcasters and are cautiously optimistic that this will strengthen the television sector given their role in underwriting the production of local content.

In the past Screen Producers Australia has been supportive of a reduction in spectrum licence fees so long as these are balanced by content obligations and a commensurate increase in the level of expenditure on local production. In particular, commercial free-to-air's investment in drama, documentary and children's production is around $160 million annually, less than half that spent by these broadcasters on sports.

From anti-siphoning to sub-quota obligations, there has historically been a delicate balance of Government regulation and interventions to ensure that commercial free-to-air investments in local production are wide ranging, across low cost per hour genres like news and current affairs to higher cost content like documentaries and drama. Diversity of programming is an obligation they must continue to carry, Mr Deaner said.

Along with permanent increases to the tax incentives that encourage local and offshore film and television production, the joint production sector's policy agenda specifically includes the extension of Australian content minimums to new platforms, such as online streaming services.

In a challenging advertising market and with increased pressure, it is understandable that the industry will need to reflect on the regulatory regime going forward and to consider in what areas there may need to be more flexibility. However, this must be done with caution so as not to upset the careful balance that has ensured that there has been significant investment in local content by commercial free-to-air and great Australian stories to be enjoyed by Australian audiences.

The industry has been waiting since reviews in 2011 for meaningful reform in the regulatory space affecting production. We anticipate that this will occur in the coming year and when it does we expect to see measures taken to offset tonight's cuts in spectrum licence fees, said Mr Deaner.

Media enquiries:

Lorelle Yee

lorelle.yee@screenproducers.org.au

0409 300 251

Download the release.

Budget 2016: Free-to-air and pay TV clash over licence fee cut

Max Mason, The Sydney Morning Herald, 3 May 2016

Budget 2016 offers no mercy to public screen sector

David Tiley, ScreenHub, 3 May 2016

LINK:	https://screenproducers.org.au/news/federal-budget-2016/...
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