Senate Environment and Communications Legislation Committee, , 3:44:44 to 3:52:42
Senators inquire about the timeline for commercial deals between big tech and newsrooms, and the impact of rising costs on community broadcasting.
Topics: Grants administration, Trade policy
Speakers: Mr Sam Grunhard, Senator Dean Smith, Senator Nita Green, Ms Naa Opoku, Unknown Speaker
Just uh along some similar themes. Um is the Department working to a timeline or does it expect to when does it expect to have some clearer information in regards to which big tech companies will have struck commercial deals with Australia newsrooms and which will have or may have opted for the um levy arrangement?
You're working to a time frame or Senator, the time frames effectively set out for us in the legislation. So those digital platforms have to do deals by the end of the year if they are to defray their obligations to pay the charge by striking deals. So the answer is we are effectively in the deal making period right now, if you like, and we know those conversations are occurring between uh the um digital platforms and news media organizations in Australia, but those those uh conversations are ongoing right now. Deals will be struck if they are successfully struck, they will be struck by the end of the year, and then early in the new year, the ATO in fact will be uh effectively receive the notification about whether people have defrayed their obligations or if they need to pay the charge. Um there will, however, I should um reassure you, Senator, there'll be full transparent information about this matter available to the public because the legislation requires that we will once we do have information about that, and once um funding does flow in, if it does flow into the statutory payment scheme, we will have to publish information about what amounts are available. So it will become apparent we are required by the legislation to make it public.
Um do you have a level of confidence uh around you know you know to what extent big tech might engage well, sorry, they are being engaged at the moment if I hear you correctly. Do you have a uh a degree of are you able to give the committee a sense of confidence in terms of um to what extent big tech might come to agreements?
Um obviously I can't say so definitively, Senator, but we know conversations are happening. We know deals have been struck in the past under the former code. Uh we we do expect that some deals will be struck. Um it is probably fair to say it is likely that not all of the platforms will achieve sufficient deals to defray all of their obligations. So we also do expect that some money will be paid as charges into the statutory payment scheme. Uh, but exactly what the balance will be of how many deals are struck versus how many end up paying the charge, of course we're going to have to wait to see how those commercial negotiations go over the next couple of months.
Okay, thank you very much. Uh so in this year's budget uh estimates, the department had indicated that it would recommend to government extending the news media assistant program or creating other programs as necessary based on any evidence that came to the department. Do you have an updated view in regards to that matter?
Um I think what I'd say, Senator, is just referring back to my previous answer. We we will have an updated view on that once we have a clearer sense of how much funding has come through in those commercial deals, how much is available under the statutory payment scheme? Uh if some of the larger possible amounts end up in that statutory payment scheme, that'll be a very, very significant amount of money flowing to the sector under that payment scheme. Um if, on the other hand, um deals are done with a smaller number of um media organizations, there may still be gaps that will need to be filled in, and we'll give government advice about that. So the answer is we're monitoring very closely how much money ends up in the statutory payment scheme, and we'll give government advice about whether gaps remain in the sector.
So what I was particularly interested in is the intersection, if you like, between that awareness of gaps and the uh diversity measurement review? Yes, which I understand is not due until March? Yes. March next year. So how does that is there the risk of a funding shortfall or uh and and so is there a risk of a funding shortfall and how might that be addressed?
So, Senator, the the first payments um if there is money paid into the scheme, the first payments will have to be made in September next year. Um so again, that could be a very significant amount of money, but we will know early in the year whether that's the case, and we'll be able to provide government advice about that. You're right that the uh the measurement framework will give us further information, but I I think earlier than that we will receive information uh through the ATO and Treasury about how much money is going to be available in the payment scheme, and that will allow us to give advice to government.
Are you aware of um sector concerns that it may not provide enough time on which to you know build the case, provide advice to government for funding in next year's budget? Have those concerns been raised with the department?
Um they may well have been in some of the we have regular conversations. With the sector, but we'll certainly keep keep listening to the views of the sector and give advice to government accordingly.
The community broadcasting association has raised concerns about rising costs. Yes. Aware of those concerns?
Yes, Senator. And in fact, the bill we were just discussing is designed to address some of the pressures on the community broadcasting sector.
So when will there's some legislative amendments that are being progressed in order to give effect to that? That's correct?
That's right, Senator. The government's announced its intent to legislate those changes.
And what's the time frame around the government's delivering on its intention, Minister?
That's always a matter for Parliament when there's legislation involved, Senator. That's always a matter for Parliament when there's legislation involved. I wouldn't want to preempt a decision, particularly of the Senate. But I think we will we'll progress that as quickly as we can, noting the Parliamentary schedule for the rest of the year and for next year.
It's not a not very confident view.
No, I don't think the sector should be concerned. We obviously have to make sure that parliamentary priorities are taken into account before I'm not prepared to give you a concrete date. We will be in the hands of the Parliament and the Senate. So perhaps we'll look forward to your assistance in passing that legislation in a timely manner.
So community broadcasting sector concerns are in a priority for the government?
No, that's not what I said. It's definitely not what I said. That's why I've progressing legislation.
The news innovation fund and uh funding grants that were I think submitted mid-year. Well, actually it might have been May. What's the progress of that or those? They've not been announced yet, though, have they?
They've not been announced. We've just finalised assessments. And so we are splitting announcements shortly.
Shortly. Is that different from soon?
It's very similar to soon, Senator.
Clever. Thank you. Yep. Thank you very much, Great. Thank you.