Communications Minister Stephen Conroy has pointed the finger at Tony Abbott in the growing free-to-air tax cut row, after the Opposition Leader met with News Ltd owner Rupert Murdoch before allegedly changing his stance on the networks.
Shadow Treasurer Joe Hockey said Sunday that the government would block the move to cut the licence fees by $250m if the government didn't do a better job of explaning why Seven, Nine and Ten were being assisted.
"In absence of any explanation for handing a quarter of a billion dollars to the TV stations we are left with no alternative but to stand up for the Australian taxpayer", Hockey said.
Conroy is coming under intense pressure from News Limited newspapers this weekend due to cutting the licence fees, but has now challenged Opposition Leader Tony Abbott to explain how he only objected to moves to cut $250 million from TV network licence fees after meeting Rupert Murdoch, head of News Corp, which owns News Ltd.
Senator Conroy said News Ltd, with its 25 per cent stake in subscription TV provider Foxtel, was clearly very unhappy with the government's decision to slash licence fees for the free-to-air networks.
Opposiiton changed stance after meeting Murdoch: Conroy
He said opposition communications spokesman Tony Smith was generally supportive of this cut and the opposition asked just two questions on this in recent Senate estimates committee hearings.
But that seemed to change after Mr Abbott's breakfast meeting with Mr Murdoch, Conroy said, adding he wasn't claiming Mr Murdoch fired up Mr Abbott.
"Tony Abbott has breakfast with Rupert Murdoch and suddenly the opposition is opposed to it," he told ABC television on Sunday.
"It is up to Tony Abbott to explain why he's suddenly taken a different position and rolled Tony Smith from the position he articulated a week before."
Conroy asked if News Ltd out to get him
Asked if he thought News Ltd newspapers were out to get him, he said there had been some unfortunate stories in recent weeks attacking former staff members.
He said that was seeking to create a sense of impropriety that somehow it was wrong for former staffers to work in the communications sector.
What News Limited themselves have articulated in a number of newspapers in the last week is that they are very very unhappy with the government's decision over the licence fees," he said.
"And they are entitled to be. And they are entitled to criticise the government for it.
"What I think is unfortunate is they then decide to go after people who are no longer involved in politics and try and muddy them up simply because it suits an agenda to try and create a sense of crisis."
Conroy under fire after meeting Seven's Kerry Stokes
Senator Conroy has been under fire for slashing $250 million off licensing fees paid by the Seven, Nine and Ten networks.
This morning, SKy News reported on News Ltd claims that the minister had gone skiing with Network Seven Boss Kerry Stokes before the changes were announced, and had paid for the minister's ski-pass, which was'over $100'.
A Sky News reporter said 'it might not be the smartest move' to target News Ltd in an election year, adding 'we'll see how that one pans out.'
News Ltd shares joint ownership of pay-channel Sky, along with PBL and the Seven Media Group.
Senator Conroy said the networks initially pressed for licence fees to be abolished entirely and the $250 million figure was reached after a year of negotiations.
He said the free-to-air sector was in terminal long-term structural decline, adding this morning that the government is 'determined to protect Austraiian stories, Australian voices, and Australian content', via free to air television.
Senator Conroy said internet TV, set to become feasible through the national broadband network, would provide hundreds of new channels of content which would apply increasing pressure to free-to-air and subscription networks.
He said the tidal wave of cost and technological change would still happen if the government did nothing.
"There is an acknowledged worldwide shift taking place. With the national broadband network ... we are recognising and getting ahead of the game to protect Australian content," he said.
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