Producers call for local content quotas on ABC, SBS.

The ABC and SBS should have local content quotas and reject calls to diminish them on commercial broadcasters, says Screen Producers Australia.

In its submission to the Australian and Children’s Screen Content Review the producers lobby says ABC and SBS should have local content quotas just as the BBC has in the UK.

“National broadcasters have no specific obligations to deliver Australian content and as their budgets have been cut, accordingly so has their expenditure on Australian content,” it says in its submission.

“The government should reject any attempt to relax obligations on commercial broadcasters on the assumption that the national broadcasters can provide Australian audiences with adequate levels of Australian content.”

However such a move would also compel the government to increase funding to SBS, or open it up to new revenue opportunities.

In May former ABC Director of Television Kim Dalton called for ABC’s Charter to include a commitment to Australian screen content and recommended independent production quotas, including regional quotas.

SPA is again calling for the end of New Zealand content qualifying as local content, which was allowed after a Trade Agreement under the Howard government.

“In 2014, the commercial television broadcasters averaged 180 hours of New Zealand content that qualified as Australian. In 2015, the commercial television broadcasters averaged 135 hours,” SPA noted. “Hypothetically, assuming the entirety of the 135 hours was substituted for first run miniseries drama and the cost of first-run Australian drama miniseries averages nearly $1.368 an hour, the loss to the Australian production industry is estimated to be $184.68m in 2015.

“This loophole means that instead of commissioning new Australian-produced content, commercial television broadcasters can buy second-run, cheap New Zealand programs and have them qualify as Australian programs to acquit their obligations under the Australian Content Standard.”

SPA made 12 recommendations it says will ensure the viability, sustainability and strength of the independent production sector:

1. Screen Producers Australia recommends the Government commit to further consultation on options for any proposed new policy framework.

2. Screen Producers Australia recommends the Government close the New Zealand content loophole.

3. Screen Producers Australia recommends the Government ensure fair contracting in the market, potentially through UK-style legislated terms of trade.

4. Screen Producers Australia recommends the Government ensure the producer offset is only for producers, not broadcasters, consistent with the original policy intention.

5. Screen Producers Australia recommends reform of the scope of the PDV offset be made platform agnostic.

6. Screen Producers Australia recommends the reform of the scope of the feature film offset to be made platform agnostic.

7. Screen Producers Australia recommends amendments to the policy objectives and design principles.

8. Screen Producers Australia recommends local content quotas: a) remain on commercial broadcasters, and b) apply to the ABC and SBS.

9. Screen Producers Australia recommends local content demand-side interventions, to be applied platform agonistically, including on new market entrants such as video on demand services.

10. Screen Producers Australia recommends the producer offset be harmonised at 40 per cent and applied platform agnostically.

11. Screen Producers Australia recommends the Government commit to a suite of trade reforms:

a) submit a proposal to the Cultural Ministers Council to develop a national trade strategy for the film and television industry
b) conclude negotiations for current co-production agreements with India, Denmark, Malaysia and the United Kingdom.
c) enter into new coproduction agreements with key markets, potentially on the margins of bilateral negotiations such as with Indonesia and plurilateral negotiations such as the Regional Comprehensive Economic Partnerships
d) in any future co-production negotiations, the Government refrains from including the restrictions on co-production partners’ common management
e) seek to renegotiate existing agreements to remove the restrictions on common management
f) remove red tape and provide flexibility in immigration processes for the Temporary Employment (Entertainment) Visa (Subclass 408), and
g) develop a trade support scheme for the Australian film and television industry administered by Austrade.

12. Screen Producers Australia:

a) opposes reforms to film offset that would an effect of decreasing the number of Australian films made each year.
b) supports an increase of the offset for television production, provided it is only available to producers and not broadcasters
c) supports an increase in location offset, together with:
a. no changes to the feature film offset that would have an effect of decreasing the number of Australian films produced each year, and
b. an increase to the offset for television production, provided it is only available to producers and not broadcasters.