Statement from SBS Managing Director Michael Ebeid regarding the Communications Legislation Amendment (SBS Advertising Flexibility and Other Measures) Bill 2015
24 June 2015
SBS’s special Charter to explore and celebrate Australia’s multicultural diversity is at the heart of the organisation.
Revenue raised through advertising goes directly to protecting SBS investment in great Australian programs and services that deliver on our Charter.
Following the ABC and SBS Efficiency Study last year, SBS’s funding was cut by $53.7 million. Of the cuts, $28.5 million was predicated on the Parliament giving SBS slightly more advertising flexibility through an amendment to the SBS Act, whilst maintaining its current daily cap of 120 minutes of advertising permitted.
A survey of SBS audiences showed that 73 per cent would have preferred to accept slightly more advertising in some programs than see SBS programs and services cut.
The failed passage of this legislation is a setback and leaves SBS with a $28.5 million hole in its budget over the next four years. Given this legislation did not pass and SBS has largely exhausted back-office efficiencies, this funding cut is unable to be absorbed without impacting programs and services.
SBS will now need to consider its contingency plans internally, provide an impact report to the Federal Government and review our overall funding. Once this process is complete, SBS will be in a position to outline further details about the impact the failed legislation will have on the organisation.
ENDS