ABC Appropriation by jianghongl


									                                                    ABC Appropriation

                                                        The Corporation undertook a longitudinal analysis of Appropriation
                                                    Funding over more than 15 years. ABC operational funding peaked, in real
                                                    terms, in the 1985–86 Financial Year — based on CPI index levels applied at
                                                    December 2000. It has since declined by 29.5 per cent.
                                                        Comparative Operational Funding sourced from the ABC’s Appropriation is
                                                    defined as: Total Appropriation received (Outcomes 1, 2 & 3) less Tied, One-Off
                                                    and Loans Funds (but includes Capital and Depreciation funds).
                                                        As announced in the May 2001 Budget, for the 2001–2002 Financial Year,
                                                    using the above definition, the Comparative Operational Funding available
                                                    sourced from Appropriation Funds is:
                                                        Total Appropriation per Outcomes 1, 2 & 3            745.17
                                                            Less NTA Transmission Fund                                  -73.39
                                                            Less Digital Transmission Funding                           -29.43
                                                            Less Capital Use Charge Tied Funding                       -59.26
                                                            Less Loan Funds                                             -20.00
                                                            Total Comparative Appropriation Funds                       563.09

                                                        The 2001–2002 Operational Funds of $563.09m represents a decrease in
Operational Funds                                   real funding of $235.58m or 29.5% since 1985–86 as presented in the
                                                    adjacent graph. The graph indicates that funding fell significantly since the
                                                    mid 1980s but that the downward trend has been reversed in recent years, to
                                                    the extent that it is now equivalent to funding levels prior to the cuts to base
                                                    level funding in 1996-1997 and 1997-1998.
                                                                                                           The level of real comparative
   $millions                                                                                          operational funding across the three
                                                                                                      years 1999–2000 to 2001–2002 has
                                                                                                      increased due to depreciation funding
                                                                                                      received in each of these years
                                                                                                      ($22.86m, $28.3m & $36.81m
                                                                                                      respectively), Digital Transmission
                                                                                                      Funding, and the $17.8m additional
    580                                                                                        $563
                                                                                                      funding for National Interest
                                                                                                      Initiatives received in the 2001–02
                                                                                                      financial year.

           86    87   88   89   90   91   92   93   94      95   96   97   98   99   00   01     02
                                           Financial year

ABC Operational Appropriation

                                ABC Appropriation

    The ABC has attempted to minimise the impact of the decreased funding
                                                                                                            Increasing Efficiency
levels on its output by increasing its efficiency particularly with respect to its
support areas. As a result of these efforts, the labour utilisation rate for
production resources has increased and the Corporation’s combined business
support areas of Finance, Legal, Property, Business, Audit and Human
Resources have decreased staffing levels by 14.5 per cent since the business
support reengineering in 1997–98.
  per cent                                                                                              No. of staff
  81                                                                                                        500
                                             Total TV Resources Labour
                                             Other States                                                   400
                                             NSW & Vic
  78                                                                                                        300



  73                                                                                                         0
       1998    1999    2000    2001                                                                               1997   1998   1999   2000   2001

Four year comparison of utilisation for Production                                                     Staff numbers, business support
Resources labour                                                                                       areas

     As announced in the Federal Budget on May 22, the Government decided
                                                                                                              Additional funding
to provide additional program funding of $17.8 million per annum for the
next four years. The ABC Board has determined that this funding will go
straight into new programs/program development for Radio, TV and New
Media in line with the ABC’s National Interest Initiatives. This chart shows a
split of how the $17.8m has been allocated for the 2001–02 Financial Year.

                                       Interactive Curriculum Support for Schools $0.7m

                                       Childen/Family Initiative TV $1.4m, New Media $0.23m

                                       Business Initiative TV NewsCAff Program $1.25m, RN Programs $0.52m

                                       Content Development $0.3m

                                       Project Development Officers $0.61m

                                       Outsourced Radio Programs $1m

                                       Internet Radio $0.37m

Additional Funding                     RN Regional Programs $0.3m

                                       Add'l Regional Radio Content $4m

                                       Ballarat Radio Station $0.6m

                                       TV Regional Initiatives $3.38m

                                       Australia Talks $2.94m

                      Funding Finance and
                      Support Services (FFSS)

                          The Funding Finance and Support Services (FFSS) Division during 2000-
FFSS supported the    2001 was restructured to consolidate all financial services into one Finance
delivery of outputs   Group and establish two new units — Business Development and
                      Performance, and e-Business Strategy. Information Technology Services was
1.1 and 1.2           transferred to the Technology & Distribution Division.

Finance services      GST Project
                         The first challenge of the year was to ensure a smooth transition to the
                      new taxation system which was achieved through the use of a special GST
                      implementation team which continued to monitor the project to the end of
                      November, training staff and liaising with Government.

                      New budget structure
                           Another focus was the reconfiguration of Portfolio Budgets into the new
                      Divisional structures announced by the Managing Director. This came ahead
                      of a major upgrade of the Corporation’s financial system to significantly
                      improve user-friendliness, enhance financial management reporting and
                      provide a base for further streamlining business processes. Extensive training
                      sessions were undertaken and training materials posted to the ABC’s intranet
                      site to assist staff in adapting to the new system.

                      Foreign exchange policy
                           The Finance Group introduced a foreign exchange hedging program
                      which successfully isolated the Corporation from unfavourable exchange rate
                      movements over a volatile period for the Australian currency. This program
                      was particularly significant to the ABC’s digital conversion strategy, which is
                      reliant on the purchase of digital equipment from overseas sources. The
                      Finance Group also managed the interest rate risk of the Corporation, most
                      notably with the swapping of floating rate debt to fixed rate debt at some
                      100 basis points lower than current market at 30 June 2001.

                      Successful completion of annual financial statements
                           Consistent with previous years, the Corporation’s Annual Financial
                      Statements were presented to the Audit Subcommittee of the Board within
                      the designated time frame and were signed by the Australian National Audit
                      Office unqualified.

e-Business strategy   New e-Business strategy
                          An e-Business unit was established to coordinate overall strategy for the
                      ABC’s e-Business activities and to identify and measure the benefits of e-
                      Business initiatives. The focus is on exploring available efficiency
                      opportunities such as improved productivity, collaboration and levels of
                      audience and customer service. Such opportunities include applications to
                      streamline business-to-business procurement and the development of a trial
                      reverse auction mechanism, in which suppliers bid down prices against each
                      other over the internet, targeted at maximising the value for money the ABC
                      obtains for products and services.

                       Funding Finance and
                           Support Services

Broadcasting Facilities                                                                     Property services
    The Property Services team continued its work consolidating operations to
satisfy the requirements of the new digital broadcasting environment.
Sydney’s TV Presentation suite and Master Control were moved from Gore Hill
to Ultimo. In Melbourne the Southbank Centre accommodated new digital
television transmission facilities and a fully integrated News & Current Affairs
Centre for Television, Radio and Online. Property has also
assisted with the upgrading for digital conversion of TV
Master Control rooms in all capital cities.

Property Rationalisation
    The ABC’s program of rationalising its property holdings,
begun at the end of 1996, moved toward completion with
the approval of the divestment process for remaining
under-utilised ABC sites. The Corporation invited
Expressions of Interest from potential purchasers of land in
Hobart, in March 2001, and received a number of offers. The
Board approved the disposal of the surplus site at its Board
Meeting in June 2001.
    Divestment of the Gore Hill site in Sydney has been
subject to a number of procedures including community consultation and the           Excavations underway for the new building
                                                                                     at the Ultimo Centre as part of the Sydney
development of a conservation management plan in conjunction with the                Accommodation Project
Australian Heritage Commission. The outcome of a re-zoning application is
expected by July 2002.

Major Building Works
    The Perth building project, approved in December 2000 is due for
completion by the end of 2003. In March 2001 the Corporation announced
the refurbishment of the ABC facilities in Canberra.                                Finance
Sydney Accommodation Project                                                        Subcommittee
    The project to extend the ABC Ultimo Centre is progressing on time and              The FFSS Division began
on budget. By the end of June 2001, $92.9 million of the overall budget of          reporting to the newly established
$109.5 million had been approved for commitment. The final detailed design          Board Finance Subcommittee
of the internal fitout of the new building is expected in September 2001 with       during the year. The committee
practical completion of the Ultimo complex scheduled for August 2002.               was set up to enhance financial
    During the year, the ABC commissioned a new digital television                  management processes within the
presentation centre at Ultimo; and construction commenced on the                    ABC and assist the Board and
collocation of radio and television news and current affairs. Progressive           management to establish and
alteration of the existing Ultimo building will continue in conjunction with        maintain best practice financial
the major building works.                                                           management services for the
                                                                                    Corporation. On a quarterly basis
     Detailed design for the relocation of the helipad at Gore Hill was
                                                                                    the committee considers all
completed in preparation for the proposed sale of the majority of the Gore
                                                                                    finance related matters including
Hill site. The helipad will be relocated to the top of a multi-level carpark
                                                                                    finance policy and procedure, ABC
adjoining the ABC Lanceley Place site and necessary approvals have been
                                                                                    financial planning, budgets and
obtained. Construction is planned to commence in late 2001.
                                                                                    treasury activities.

                                        Funding Finance and
                                        Support Services

                                        Regional support
                                            As well as capital cities, much attention has been paid to ABC regional
                                        properties, where the Property Services group managed the installation of
                                        Uninterrupted Power Supply (UPS) to support digital equipment. Other works
                                        completed during the year include refurbishments to ABC premises in
                                        Townsville, Bunbury, and Newcastle, and the installation of emergency power
                                        generator systems for ABC Broome, the Gold Coast, Mt Isa and Wollongong.
                                        The ABC purchased land at Port Macquarie in NSW (to accommodate the
                                        relocation of ABC’s Kempsey premises) and additional land at Albany in WA.

                                        Energy audit
 Gigajoules (GJ)                            During the year, an energy management consultancy – Energetics -
 230000                                 undertook a detailed energy audit at 14 of the ABC’s major properties. The
                                        audit identified areas for potential improvements and savings that have been
                                        incorporated into a three-year national Energy Management Plan. The Plan
 220000                                 includes initiatives to reduce and conserve energy, as well as ‘good energy
                                        housekeeping’ programs.
                                             The ABC continues annually to report all energy consumption data to the
 210000                                 Department of Industry Science and Resources . Taking into account the
                                        phased program of digital technology conversion, the Corporation is reducing
                                        its total energy consumption towards the targets set by the Commonwealth
            1998   1999   2000   2001   Energy Guidelines.
                                            While the ABC is taking measures to reduce its energy consumption, the
ABC energy consumption
                                        progressive deregulation of the electricity market is resulting in price and
                                        supply volatility in some states. Electricity contracts therefore need to be
                                        regularly reviewed and proactively managed.

Legal services                              During the year the Legal Services Department provided the full range of
                                        legal advice, representation and assistance to the Corporation while also
                                        addressing several out of the ordinary issues.
                                            The first of these issues was the introduction of the Goods & Services Tax,
                                        in particular the necessity to review existing contracts and provide advice on
                                        new contract agreements as regards the ABC’s taxation obligations. With the
                                        commencement of the 2000 Olympic Games, ABC lawyers represented the
                                        Corporation’s rights as non-rights holders for Television, in protecting its
                                        Radio broadcast rights and in examining the difficult issue of rights
                                        definitions surrounding the Online broadcast of Olympic events.
                                            Other major projects included the finalisation of contracts for digital
                                        transmission and distribution to enable the ABC to commence its digital
                                        broadcast in January 2001, the execution of a new agreement for the SAP
                                        business information system, and negotiations regarding the ABC’s proposed
                                        relationship with OZTAM. ABC lawyers became increasingly involved in online
                                        and multimedia projects, as well as with rights management issues, which
                                        this year involved the commencement of renegotiation of blanket rights
                                        agreements and the retransmission of the ABC signal.

                      Funding Finance and
                          Support Services

    While significant resources were involved in the defence of litigation
matters against the ABC, the Legal Services department also devoted
resources to minimising the risk of legal proceedings by providing training
(courses were conducted in Sydney, Adelaide, Brisbane and Perth) for
program makers in relation to defamation and contempt, and through the
provision of 24 hour pre-program legal advice to program makers. During the
year, a number of defamation issues were settled, with one defamation
verdict recorded against the ABC.

    During the financial year, the FFSS Division focussed on improving
corporate governance and accountability and transparency to stakeholders.
Members of the Division were involved in a number of governance                   accountability
committees and groups: Contracts Review Committee, Editorial Policies
Working Party, Enterprises Board of Management, Television Commissioning
Committee, and the News & Current Affairs Review.

   The division set up a specialist unit to conduct performance                   Performance
measurement, benchmarking and productivity reviews for the Corporation,
supporting the ABC Board’s commitment to improve overall accountability.        measurement &
     The unit is responsible for the establishment, reporting against and        benchmarking
utilisation of key performance indicators (KPIs) and domestic and
international benchmarks. The unit aims to assist the ABC to understand its
performance in terms of efficiency and effectiveness, and identifying
opportunities to further improve performance.
    In March 2001 the unit hosted an international KPI workshop with
participants including the BBC, the Canadian Broadcasting Corporation, Radio
New Zealand, the Danish Broadcasting Company (Danmarks Radio) and NRK
the Norwegian Broadcasting Corporation. The aim of the benchmarking
project is to increase the degree of comparability between public
broadcasters. Workshop participants developed agreed business rules,
definitions and classifications to standardise information and feed into the
creation of meaningful benchmarks. One outcome of the workshop was the
decision that the ABC develop a repository for performance data to generate
industry averages for benchmarking purposes.

    The division also established a Risk Planning unit to facilitate a more
                                                                               Risk management
Corporate-wide and consolidated approach to risk management. The unit’s
aim is to promote the awareness and integration of risk management into
business practice.
     After identification of the Corporation’s key business risks, the unit
briefed more than 150 senior managers on risk management, intended as a
first step in a communication strategy.
     Risk assessments of various initiatives have also been undertaken using
the key principles of the risk standards AS/NZS: 4360: 1999 and the
Corporation aims to further embed the principles of risk management across
all its key processes.

                                            Human Resources

                                                The ABC’s Human Resources Division provides services to enable the
Human Resources                             Corporation to best manage and develop its people in a manner that
supported the                               supports the ABC to achieve its stated outcomes.

delivery of outputs                             Human Resources worked closely with new Divisional Directors to manage
                                            organisational change following the new ABC management restructure. A
1.1 and 1.2                                 reporting framework was developed for all existing senior managers to
                                            support the new directions and Divisional structures.

                                                ABC Executive Directors agreed to allocate not less than 2 per cent of
Training and
                                            salary budget to training and development. This is a rise from 1.4% in the
Development                                 previous year and represents a major commitment to staff development and
                                            training. Divisional development plans will be based on business needs of
                                            the Corporation and staff as identified by the performance management
                                                An organisation-wide approach to training has been developed which
                                            will enable the ABC to meet its goals in the digital environment by delivering
                                            suitably skilled staff. Specific training in digital equipment was underpinned
                                                            by generic training programs on how the new technologies
                                                            work. An introduction to widescreen television course was
                                                            delivered to staff in all areas of the Corporation. Other topics
                                                            included: Bit Rate Reduction, Digital Television Network
                                                            systems, Digital Television Production, Digital Video Interfaces
                                                            and Digitisation Issues. These courses were also made available
                                                            to other television networks on a fee for service basis.
                                                               In December 2000, ABC Training became a Registered
                                                           Training Organisation and is now able to deliver accredited
                                                           training, bringing major benefits to the ABC and to staff
Program production trainees are presented   •   Staff undertaking accredited training will gain nationally recognised
with their final BSA certificates:
L-R: Bob Connor (Training), Liz Warning,        industry qualifications.
Angela Kelly, Chris Paag, Harry Hall
(Production Resources), Kylie Pi-Gram,      •   The ABC will attract subsidies for eligible trainees, including existing
Andreas Krieger, Carl Robertson                 worker trainees.
                                            •   The ABC will be able to seek state funds for delivery of certain training
                                                programs to ABC staff and to others.
                                               The initial registration is to deliver workplace trainer and assessor
                                            qualifications. The scope will be expanded in the next year to include
                                            qualifications for industry training packages in film, television, radio and
                                            new media.

Equity and Diversity                            Information sessions and workshops on the ABC’s diversity issues and
                                            activities, including discrimination and harassment, were conducted for
                                            managers and staff at a number of locations around Australia.
                                                A number of initiatives were introduced to assist in work and life
                                            balance, including guidelines to manage flexibility in the workplace. A pilot

                                Human Resources

Men at Work program was conducted in February 2001, with 32 participants
to examine the key issues facing men in their work and personal lives.
Another pilot Better Life and Work was introduced in June 2001 for staff in NT,
ACT, SA, WA and Tasmania for six months. This pilot provides a free
information service to assist balancing personal and professional demands.            Female             Male
    The ABC and the Federal Department of Employment, Workplace Relations             46.47%            53.53%
and Small Business agreed to a project under the Commonwealth
Government’s Indigenous Employment Program aimed at improving the
employment circumstances of Aboriginal and Torres Strait Islander peoples.
During the year three new Indigenous trainees were appointed under this
scheme in Human Resources, News and Current Affairs and New Media in              Staff by Gender
Sydney and Brisbane.

    The ABC Employment Agreement 2000-2002 with the CPSU and MEAA                       Workplace reform
came into effect in July 2000 delivering wide-ranging changes to structures
and conditions for the majority of ABC staff. Key features include a reduction
in the number of classifications and performance management systems,
more consistent employment provisions, more flexible hours, rostering,
overtime and penalty provisions.
    An inter-divisional group to lead implementation across the Corporation
was formed and implementation continues to be a major focus. A Human
Resources team provides local support and assist in the development of
systems and guidelines and maximise opportunities to enhance productivity
and effectiveness offered by the Agreement.
    Associated with the new classification structure in the Employment
Agreement were a number of key workplace reform projects. The reforms
enabled the ABC to streamline production processes and achieve efficiencies
and savings in the workplace. They have been undertaken in partnership
with other divisions and in consultation with staff and their unions.
   Key among them were reforms in the
production of television news, both in field
operations and studio production areas. Coupled
with these reforms, production and support areas
have made increasing use of streamlined and
more flexible hours, rostering, overtime and
penalty related provisions.
    The new performance management system is
being phased in with Human Resources and
Training managers delivering training workshops
to over 500 managers responsible for managing
staff performance. Over 1 000 staff attended
information sessions on the new system. The next
phase of implementing performance                                                  Manager, ABC Diversity, Chrissie Tucker,
management is currently underway.                                                  (centre) with other participants in the Focus
                                                                                   on Diversity launch in Darwin

                     Human Resources

                         The ABC Senior Employment Agreement 2001 came into effect on 1 January
                     2001. The Agreement covers approximately 230 senior management jobs. It
                     provides a far simpler employment classification system and minimum terms
                     and conditions of employment for senior managers. The new agreement
                     enhances a more individual approach to employment bargaining for senior
                     managers in the ABC.

Functional reforms       Human Resources has refocused its service delivery in the states to
                     provide better and higher level services to managers and staff across the ABC.
                     Human Resources is progressively consolidating routine payroll transaction
                     processing in one centre located in Adelaide to service the entire
                           organisation. The centralisation will be complete when payroll
                           processing for New South Wales is transferred to Adelaide in October
                               The centralisation of payroll has enabled State Human Resources
                           services to move away from a traditional transactional focus to a
                           broader value-adding Human Resources advisory service which
                           remains decentralised locally.
                               The current ABC rostering and payroll system (STAR/TIACS) is
                           outdated technology (over 10 years old) and does not integrate
                           adequately with other systems. This means it is expensive to maintain
                           and restricts the ABC’s capacity to implement reforms made possible in
                           the provisions of the ABC Employment Agreement 2000–2002. Over the
                           past three years the ABC has committed significant resources to
                           implement HR SAP, the new business system solution chosen to assist
                           the change.
                               This new system will integrate existing human resource functions
                           and other business systems to provide a complete enterprise business
                           information system. It will provide a greater degree of automation and
                           reduce the manual processing of the ABC’s current rostering and payroll
                         This year has seen intensive work undertaken to implement the latest
                     version of HR SAP, a complete new integrated rostering and payroll system.
                     This has been a large and difficult program to implement in terms of both
                     complexity and scope. The project has drawn significantly on Human
                     Resources staff throughout the division. Many line managers have been
                     involved heavily in the system’s development.

                    Human Resources

                                                                     Number of staff
                      Television 2.79%                               1000

                      Tech & Distribution 10.52%
                      State Directors 0.39%

                      Radio 21.75%

                      Prog Content Development 1. 05%                 400

                      Prod Resources 25.9%
                      News & CAff 17.81%

Staff by Division

                                                                                                                                                                        Senior Executives
                                                                                Admin Officers

                      New Media Services 1.83%

                                                                                                                                                                                                                                                                                                       TV Transmission
                                                                                                                                                                                                                                                TV Production Services

                                                                                                                                                                                              TV Off. Prod Ops

                                                                                                                                                                                                                                                                            TV Production Support

                                                                                                                                                                                                                    TV Producers/Directors
                      Human Resources 2.76%

                      Funding Finance & Support Srvs 5.56%

                      Enterprises 4.53%

                      Corp Wide Initiatives 0.04%
                                                                       Staff by Job Group
                      Corporate Affairs 0.64%

                      Content Rights Mgt 4.42%

                      WA 5.8%                                 No. of Staff

                      Vic 16.4%
                      Tas 4.7%

                      SA 6.8%                                 5000

                      Qld 8.2%                                4500

                      Overseas 0.6%
                      NT 2.8%
Staff by State        NSW 52.1%                               2500





                      ACT 2.6%

                                                                       Staff Numbers


                                                    In 2001, in a refinement of the Corporation's new organisation structure,
Corporate                                       the area formerly called the Corporate Affairs division divided into three main
supported the                                   entities: the Office of the Managing Director, supported by Corporate Planning
delivery of outputs                             and Governance; and Corporate Affairs. Corporate also provides administrative
                                                support to the ABC Board.
1.1 and 1.2
                                                    The role of the unit is to support the Managing Director and Executive
Corporate Planning                              Directors in matters relating to corporate positioning, planning and the
and Governance                                  coordination of governance and performance processes.
                                                    The Chief of Corporate Planning and Governance leads a small team of
                                                senior specialists in corporate and divisional planning, corporate policy,
                                                Board-management liaison and the interface of ABC governance and
                                                community relations (including chairmanship of the ABC's Election Coverage
                                                Review Committee).
                                                    A key responsibility is to provide a Corporation-wide overview of
                                                governance through strategic involvement in a range of critical issues and
                                                cross-divisional links with related functions and activities. These include
                                                divisional policy managers; the Risk Planning, Performance Measurement and
                                                Benchmarking units of the Finance, Funding and Support Services division;
                                                and Government and Parliamentary Relations.
                                                    Among the unit's achievements and activities in 2000–2001 were:
                                                ·   Coordination and support for the Managing Director and Board in
                                                    successfully negotiating increased funding from Parliament of $17.8
                                                                million per annum to support a number of national interest
                                                                priorities, including expanded TV and radio programming of
                                                                particular relevance to audiences in regional Australia
                                                               ·    Leadership of the successful ABC bid for a five-year
                                                               Government contract to operate a new satellite television and
                                                               new media service to Asia and the Pacific, with total funding
                                                               assistance of $90.4 million from the Department of Foreign
                                                               Affairs and Trade
                                                               ·    Support for the Managing Director in the articulation of
                                                               his vision and corporate strategy, notably through landmark
                                                               speeches to the National Press Club (March 2001) and the
                                                               Sydney Institute (June 2001)
                                                                ·    Commencement of a re-designed model of corporate
                                                                planning and accountability that is characterised by a more
L-R: Manager, ABC Diversity, Chrissie Tucker,
Radio Presenter Elaine Harris (with Dori the        integrated process at Board, corporate and divisional levels in setting
Labrador), and Managing Director Jonathan
Shier accept an Equity and Diversity
                                                    strategic goals and performance targets. This will progressively result in
Employer of the Year Award from the Prime           improved alignment of the Corporation's principal accountability
Minister the Hon John Howard MP
                                                    documents — the three year rolling Corporate Plan, the annual Portfolio
                                                    Budget Statement and the Annual Report


·     Participation in a cross-divisional team reviewing the ABC Editorial
      Policies and Code of Practice to take account of changes to the media
      environment, legislation and ABC structure
·     ABC coordination and management of dealings with the Australian
      National Audit Office (ANAO) in conducting a major performance review of
      the Corporation. The audit is examining the ABC's corporate governance
      framework, the Board's approach to interpreting Charter requirements
      and the setting of strategic directions, and the
      Corporation's performance information systems. The ANAO
      is due to table its report by around December 2001 or early
      in the new year
·     Planning and organisation, in association with the Office
      of the Managing Director, of the first annual ABC
      Management Conference involving senior managers from
      all divisions and all states and territories. The conference
      took place over one and a half days in Launceston in May
·     Policy submissions including to the Australian Broadcasting
      Authority Inquiry into Commercial Radio; the Senate
      Environment, Communications, Information Technology
      and the Arts (ECITA) Legislation Committee Inquiry into the
                                                                                    Winner of the 2000 British Chevening/ABC
      Broadcasting Legislation Amendment Bill (No 2) 2001; the ECITA References     Scholarship ABC Producer Sue Spencer, with
      Committee Online Inquiry; and a response to the Commonwealth Cultural         British High Commissioner Sir Alastair
                                                                                    Goodlad and ABC Chairman Donald
      Ministers Council discussion paper on the Cultural Benefits and Value of      McDonald
      Public Broadcasting.

    Corporate Affairs activities include Audience and Consumer Affairs
                                                                                            Corporate Affairs
Parliamentary and Government Liaison, Corporate Communications and
International Relations.

Audience and Consumer Affairs
    Audience and Consumer Affairs responds to all audience correspondence
via letters and emails and monitors telephone calls to the ABC's capital city
switchboards. Plans are underway to improve monitoring and data collection
on audience complaints and compliments so that perceptions about ABC
programming and performance can be analysed. Details of Audience and
Consumer Affairs activities for the year are included under Audience Contact
in this report.

    Review of Editorial Policies
        The ABC review of its Editorial Policies and Code of Practice continued
    this year and is due for completion and distribution in early 2002. A cross-
    Divisional team has undertaken considerable work on the current review
    to address changes to the media environment, legislation and ABC


                                                                   Government and Parliamentary Relations
                                                                       The Government and Parliamentary Relations unit was established to
                                                                   oversee the Corporation’s relationship with the Parliament of Australia and
                                                                   Commonwealth Government Departments. Key functions of the unit are to co-
                                                                   ordinate and respond to Parliamentary and Departmental requests for
                                                                   information, develop collaborative working relationships and to monitor
                                                                   developments in Parliament of interest to the ABC. Main activities for the year
                                                                   included the Corporation’s Budget submission, the proposal for the provision of
                                                                   a television service to the Asia-Pacific, the coordination of the ABC appearances
                                                                   at Senate Estimates and responding to subsequent questions on notice.
                                                                       In addition to Senate Estimates, the ABC appeared and prepared
                                                                   submissions for a number of Parliamentary Inquires for both the Senate and
                                                                   the House of Representatives, including the Regional Radio Inquiry, Public
                                                                   Works Committee hearings and various Senate reference Committees. The ABC
                                                                   also provided answers to 26 Questions on Notice through the Minister to
                                                                   various Senators and Members of the House of Representatives.

                                                                   Corporate Communications
                                                                      Corporate Communications is responsible for internal and external
                                                                   communications, including media liaison on issues involving the ABC; the
                                                                   publication of a weekly internal newsletter abcXchange, cross-media
                                                                              promotions and the ABC Intranet. A free external newsletter,

ab xchange
abc hange                                                                     The National Broadcaster, published fortnightly is widely
                                                                              distributed by mail, ABC Shops, by email and on ABC Online.
                                                                                  There was intense media interest in the ABC this year and
Also on the intranet. Click on   abcXchange   on the front page.

                                                                              significant demand from the media for information. An
                                                                              automated system of delivery for information was constructed to
                                                                              assist the media. A free subscription email service now exists for
                                                                              automatic delivery of ABC media releases, statements, speeches,
                                                                              policy documents and the fortnightly external newsletter, The
                                                                              National Broadcaster.
                                                                       ABC Corporate Communications manages and coordinates publicity and
                                                                   media relations for many of the Corporation's major announcements and
                                                                   policy launches. This year it included management of issues surrounding the
                                                                   restructure of the ABC, staff movements, additional funding received for
                                                                   Radio Australia and the ABC's successful Federal budget submission.

                                                                   International Relations
                                                                       The ABC's involvement with major overseas broadcasting unions and
                                                                   associations has been redefined to maximise involvement in the Asia-Pacific
                                                                   region through the Asia-Pacific Broadcasting Union, the Asia-Pacific Institute
                                                                   of Broadcasting Development and the Pacific Islands Broadcasting
                                                                   Association. Australia's geographical location makes it important for the ABC
                                                                   to nurture relationships with broadcasters in the region. This contributes to
                                                                   the objective of the ABC Charter to encourage awareness of Australia and the
                                                                   understanding of Australia's attitudes on world affairs.


    The ABC has continued to be an active participant in the operation of
other international broadcasting unions and associations: the
Commonwealth Broadcasting Association, the European Broadcasting Union,
the Royal Television Society, the National Association of Broadcasters (USA),
the International Telecommunications Union, and Public Broadcasting
    During 2000-2001 the ABC received a large number of delegations from
overseas broadcasters. Delegations are provided with tours of ABC facilities
and take part in workshops with ABC executives and producers, facilitating
the exchange of information between broadcasters.
    The ABC Performance Measurement and Benchmarking unit in the
Funding Finance and Support Services division has been working with public
broadcasters in other countries to establish meaningful benchmarks. In
2000–2001 representatives of the BBC, Canadian Broadcasting Corporation,
Radio New Zealand, Danish and Norwegian Broadcasting Corporations came
to Australia to workshop and agree on Key Performance Indicators. The ABC is
building a database of performance information to assist in establishing
industry benchmarking averages.

 Freedom of Information
    The Freedom of Information Act 1982 (FOI) Act gives the public the right to access documents held by the ABC.
 Schedule 2 part 11 of the Act gives the ABC an exemption in relation to material which is program related.
     During the year the ABC received 20 requests for access to documents under the Freedom of Information Act.
 One request was denied as it related to program resources, two other requests were refused in part due the nature
 of the requests and the lack of resources. Access was granted in part to 17 requests and in full to one request. One
 request is still being processed. There were two requests for internal review where subsequently further material
 was released in part.
 Categories of documents
     The ABC holds documents under three broad categories:
 •   general records including correspondence, reports and minutes of meetings relating to ABC policy, program
     development, external relations and international management, program transmission documents, reports on
     audience reaction to ABC programs and publicity on programs and activities.
 •   records subject to copyright including scripts and transcripts of programs (also subject to availability), recorded
     programs and other recordings.
 •   articles available for purchase including merchandise from ABC Shops and selected ABC program material.
 Requests for access
     Written requests for access to material under the FOI Act, including the $30 application fee (not cash), should
 be addressed to:
     Freedom of Information Liaison
     Australian Broadcasting Corporation
     GPO Box 9994 in your State or Territory Capital city.
     Formal requests under the FOI Act will be acknowledged within 14 days of receipt and applications will be
 processed within 30 days according to the Freedom of Information legislation.

                                         Technology and Distribution

                                             During the last 12 months, the ABC has invested more than $68 million on
Technology and                           digital production and transmission equipment and infrastructure for the
Distribution                             commencement of digital broadcasting in Australia. The ABC now has the
                                         infrastructure in place to broadcast three digital channels and the capacity
supported the                            for broadcasting SDTV, HDTV and to multichannel.
delivery of outputs                          During the year each state and territory was supplied with new digital
1.1 and 1.2                              television equipment and digital infrastructure conforming to the industry
                                         standard Serial Digital Interface (SDI) specifications. The equipment is
                                         commissioned and in operation in the Presentation and Master Control areas
Production and                           of the ABC throughout Australia. Digital camcorders (camera recorder) and
transmission                             tape machines for field acquisition of material for News and General
                                         Programming have been purchased and are in the process of being
                                         commissioned and put into operation in all States and Territories.
                                         Collaborative editing equipment, involving digital non-linear editing and
                                         central storage, has been installed for use by both News and General
                                         Production across Australia. Progress in the installation of new digital studios
                                                               varies from Branch to Branch and is dependent on work
                                                               priorities and property redevelopment plans. Orders
                                                               have been placed for the construction of eight digital
                                                               television Outside Broadcast vans with the first expected
                                                               to be delivered in the last quarter of 2001.
                                                                   The ABC has purchased initial High Definition
                                                               Television (HDTV) camcorders, tape machines, monitors,
                                                               vision mixers, waveform monitors and test signal
                                                               generators. This equipment allows for evaluation and
                                                               production of a test stream for on air transmission trials
                                                               to explore technical production issues with the new
                                                               medium. This equipment was the first 50Hz HDTV
                                                               equipment to be delivered to a television facility in
                                                                   The installation of Netia Digital Audio Workstations
                                                               (DAWS), which commenced in 1999-2000, continued this
                                                               year with 232 workstations deployed at twenty three
                                                               regional and four capital city sites. DAWS replace tape
                                                               recorders and endless loop cartridge machines with PC
                                                               based workstations that allow the recording, editing,
                                                               storage, broadcast and transfer of radio program
                                                                        Digital on-air radio consoles have been installed in
                                                                    Sydney and Newcastle and a common approach is being
Manager of Transmission, George Baczocha and the new television
automation system operating between tape preparation areas and TV
                                                                    developed for radio consoles for Canberra and Perth as
Master Control                                                      part of proposed property redevelopments and for
                                                                    planned upgrades in Brisbane and regional stations. In
                                              2000-2001 Radio studio equipment was upgraded in Bunbury, Western
                                              Australia in conjunction with local property work. Preparatory work for

    Technology and Distribution

technical equipment and facilities required in the new Perth and Canberra
ABC premises was undertaken.
    The ABC’s BASYS news and current affairs production systems in Australia
and London, one of the biggest networked
systems in the world, have largely been
replaced during 2000-01. The new system,
Avstar, provides better integration for program
production, is capable of utilising text, audio,
graphics and vision, and is critical for the
production of all News and Current Affairs for
Television, Radio and Online.
    As part of the ABC-wide desktop upgrade,
over 500 computers were upgraded to
Microsoft Office 2000. Following completion of
this project, the installation of Microsoft
Windows 2000 has commenced. Detailed
planning and design for the messaging
infrastructure to replace the current
mainframe based All-In-One email system, introduced to the ABC in June              Tuesday 12 June 2001, Gae Mulvogue
                                                                                    switches television transmission from Gore
1985, with Microsoft’s Exchange 2000 has also begun.                                Hill to Ultimo.

     The ABC has continued to upgrade the graphics and data systems used for
live sports and election coverage.
    Four sports computer systems were prepared and used for the successful
coverage of the Hopman Cup by ABC TV. The live web-publishing prototype
was also successfully trialled during the Hopman Cup. This prototype provides
timely updates of sports results to online website information.
    T&D staff are actively engaged in industry consultations with FACTS
(Federation of Australian Commercial Television Stations), ACA (Australian
Communications Authority), ACIF (Australian Communications Industry Forum),
AEEMA (Australian Electrical Equipment Manufacturers’ Association) and WTF
(Wireless Technology Forum). The ABC was represented at a number of
domestic and international industry conferences with T&D staff presenting
papers dealing with technical and regulatory issues.

    The ABC commenced digital television broadcasting on 1 January 2001 in
                                                                                      Digital broadcasts
the capital cities of Sydney, Melbourne, Brisbane, Perth and Adelaide on VHF
Channel 12 (223-230MHz) in line with the Government implementation
timetable. The new broadcasts originated from temporary or “standby”
transmitter facilities. The ABC’s main digital television facilities commenced in
these cities in June 2001, while the standby facilities will continue to provide
back up for the new services.
    The ABC will progressively roll-out transmission facilities throughout
Australia with digital transmission across the country expected to be
complete by 2008. The ABC is working with the other networks to ensure that

                                                Technology and Distribution

                                                all broadcasters provide digital television to particular regions at about the
                                                same time.
                                                    While the Australian Government has yet to pass legislation relating to
                                                the introduction of Digital Radio Broadcasting (DRB), the ABC joined with
                                                three commercial radio operators in Sydney to form a consortium, known as
                                                Digital 2000, to trial digital radio broadcasts from Parramatta and North
                                                Sydney using the European Eureka 147 system. The ABC commenced
                                                transmission of the ABC Classic FM signal from Parramatta on 15 September
                                                1999 and followed a program of technical tests and evaluation on the digital

                                                     The ABC delivered 127 technical training courses in the 2000–2001
Technical training
                                                financial year. These courses were conducted to introduce and familiarise ABC
                                                staff in the use of digital television production and transmission equipment.
                                                With the introduction of Digital Audio workstations a further 54 courses were
                                                managed by the ABC familiarising both technical staff and users with the
                                                new systems. A similar number of courses have been delivered to journalists
                                                for the introduction of Avstar. A number of training courses were also
                                                provided for both the project management methodology adopted by the ABC
                                                for technical projects and the pilot electronic records and document
                                                management systems.

                                                     The ABC Digital Asset Management (DAM) is about managing the
Taking care of ABC
                                                Corporation’s vast collection of audio, visual and textual material gathered
assets                                          for its radio, television and new media platforms. The ABC has been
                                                exploring various DAM technology systems to make the process of collecting,
                                                storing and making available the content and its components (e.g. music,
                                                pictures, video), as seamless as possible. During the year the ABC explored
                                                the capabilities and maturity of DAM technology currently available and in
                                                the coming year will focus on the detailed requirements for DAM in the ABC.
                                                                             An auction was held at Gore Hill in March 2001 to
                                                                         begin disposal of some 40 tonnes of equipment
                                                                         replaced as part of the digitisation and normal
                                                                         replacement programs. Various ways of disposal have
                                                                         been explored to determine the best returns to the
                                                                         ABC. Returns through auctions are small once costs
                                                                         are deducted, while sales to recyclers consistently
                                                                         return a small profit over the costs of disposal.
                                                                            Following the sale in June 2000 of the
                                                                       intellectual property in D-CART and D-Radio to
                                                                       HannetDigital, the Korean manufacturer has met all
                                                                       of its progress payments to the ABC. As part of the
 An ABC digital television presentation suite
                                                transition arrangements, HannetDigital took full responsibility for all former
                                                ABC customers in June 2001.

   Technology and Distribution
     Outcome 2 - Transmission

    The ABC, through its Distribution and Communications area, manages
analog television and radio transmission service contracts in excess of $80                   Technology and
million per annum with transmission service providers NTL Australia.                              Distribution
    During 2000-2001 work commenced with NTL Australia on improving                          delivered output
reporting systems to collect accurate outage and performance figures to
measure compliance with performance targets set in the Transmission
                                                                                                     2.1 in the
Services Agreement.                                                                           achievement of
    Data on the level of outages experienced prior to the sale of the National                      Outcome 2
Transmission Network is not available to the ABC. However, the ABC has
obtained from NTL Australia, data on the level of outages experienced by the
ABC's analog terrestrial transmission services for the year 2000-2001.

   ABC Service            No.         ABC Distribution        NTL Transmission                     Total Network
                      Transmitters        Network*               Network#                           Availability§
                                     Target%     Actual%     Target%       Actual%        Total        Actual      Actual
                                                                                        Network      Network      "on air"
                                                                                        Target %   Availability %   %**
   Classic FM                63       99.83       99.92       99.64         98.95        99.48         95.32        99.87
   Triple J                  56       99.83       99.97       99.66         99.40        99.49         96.07        99.87
   Local Radio             236        99.83       99.77       99.65         99.25        99.48         98.77        99.83
   Newsradio on PNN           9       99.83       99.85       99.76         99.81        99.59         99.61        99.95
   Radio National           253       99.83       99.92       99.64         99.56         99.47        99.21        99.77
   Analog Television       440        99.83       99.91        99.72        99.23         99.55       98.55         99.76
   ** (some service to audience)

     *ABC Distribution Network (including contracted service providers): The ABC distribution network ensures that
 programs are delivered from the studio to local transmitters throughout Australia. The network includes outsourced
 satellite services and terrestrial broadcast lines. The distribution network has exceeded performance targets, with the
 exception of Local Radio. Local Radio is the only network dependent on non-redundant terrestrial broadcast lines and
 ISDN services between regional studios and transmitter sites. Cost considerations prevent the ABC from introducing
 redundancy for these services. ABC distribution network targets are currently under negotiation. The estimated targets
 used in this table are aggregated from a number of distribution contracts that are either in place or under negotiation.
      #NTL Transmission Network (ABC Transmission Contractor): The transmission network provided by NTL Australia has
 performed within expectations. The actual transmission figures for this year include some periods of reduced power and
 off air resulting from major transmitter refurbishment works in each state capital, the introduction of digital TV and the
 rollout of 69 new SBS services. This year a small number of under performing services have been identified and repaired
 or have major capital replacement works scheduled to restore the services to normal. The performance of these services
 has lowered overall transmission network performance. In some cases these services have been under-performing for a
 number of years and improved monitoring and reporting has finally identified these deficiencies.
      §Total Network Availability: Total network availability includes the direct impact of all planned outages, for the
 construction and repair of services. However, in the majority of cases, the works were undertaken with continuous
 operation of services from standby or temporary plant and undertaken in a manner that minimised the audience impact
 of the works. "On air" availability supports this, showing where the audience continued to receive an on air service,
 when compared against the overall network targets

                                             Technology and Distribution
                                             Outcome 2 - Transmission

                                             Fault rectification
                                                 For the period July 2000 - June 2001 the average time of restoration for a
                                             transmission or distribution network fault was:
                                                   A Class transmitter (state capital services) 16 minutes
                                                   B Class transmitter (major regional centres) 19 minutes

                                             Reception advice line
                                                  The ABC works with the audience to ensure transmission defects are
                                             identified and repaired as soon as possible. In order to deliver this, a
                                             Reception Advice Line has been established and handles telephone calls,
                                             emails and letters from the audience relating to the reception of all ABC TV
                                             and radio services. The advice line can be contacted on 1300 13 9994 (at local
                                             call cost), by email: or the self help website:
                                                 This year, the unit has handled enquiries via telephone, email and letters
                                             as follows:
                                                   Television service enquiries   16 320
                                                   Radio service enquiries         4 297
                                                   Total enquiries resolved       20 617
                                                 Most enquiries to the Reception Advice Line are not due to transmission
                                             faults. About 60 per cent of reception problems are caused by electrical
                                             interference or a deficiency in receiving equipment. Where the reception
                                             issue cannot be solved by telephone, callers may be referred to a local
A special helicopter was used to install a
                                             technical source for further assistance.
new section to the ABC transmitter at Gore
Hill, to enable digital broadcasting
                                                 This year transmitters in the five major state capitals - Brisbane, Perth,
                                             Adelaide, Melbourne and Sydney were refurbished. Periods of reduced power
                                             and short transmission breaks were necessary to allow crews to work safely
                                             on the transmitter towers. The ABC ensured that the impacts on audiences
                                             were minimised and advised local viewers and listeners of disruptions to
                                             service and planned duration.

                                                 The Federal Government provides the ABC with fixed funding to enable it
Maintaining the
                                             to broadly maintain the quality of reception of existing ABC broadcast services
services                                     to the general public and also provides a special appropriation to enable
                                             minor extensions and service enhancements for the transmission of its
                                             broadcasting services within Australia.

                                             New services
                                                  Ten of the 11 new radio and television analog services planned before the
                                             sale of the National Transmission Network (NTN) commenced broadcasting
                                             during 2000-2001: ABC TV services in Hallett Cove, South Australia; Redlynch,
                                             Queensland; Mangana and Meander, Tasmania; Manjimup, Western Australia;
                                             Tumut, New South Wales; and Hopetoun, Victoria; Radio National in
                                             Hopetoun, Victoria and, TV and Radio, in Weldborough, Tasmania. Planning
                                             difficulties and bad weather have delayed the final ABC TV service in Lilydale,

    Technology and Distribution
      Outcome 2 - Transmission

    Two new Local Radio satellite services commenced this year for Northern
Queensland, rebroadcasting ABC Far North Local Radio from the ABC's Cairns
studio; and Central Western Australia, rebroadcasting ABC Goldfields—
Esperance Local Radio from the ABC's Kalgoorlie studio. The satellite services
have provided more relevant local programming to audiences in several
surrounding towns and via local transmitters.
    With the provision of additional funding from the Commonwealth
Government the ABC launched a new subsidy scheme for communities
located in cyclone incident areas in Northern Australia during the year. The
scheme gives residents the opportunity to apply for funding to establish their
own rebroadcasting facility for ABC Local Radio. This will help to ensure
communities have access to the latest local news and weather reports, which
are particularly important during the cyclone season.

New services planned for the 2001-2002 year
   The ABC expects to be able to implement 20 minor extensions and
enhancement projects for analog TV and radio services during 2000–2001.
Any significant extension of ABC analog services would require further specific
funding to be made available from the Federal Government.

Changes to existing services
    During the year there were a number of changes of frequency for ABC TV
services. To minimise disruption the ABC participated in community
information campaigns with a tollfree telephone helpline, online information,
household leaflet drops, announcements in local newspapers and on local
ABC Radio and Television. Publicity material was also sent to local MPs,
councils, hospitals, educational establishments and television services.

Changes to Radio Australia
    The Commonwealth Government, in August 2000, provided additional
funds of up to $2.8m per year to obtain extended transmission hours for
Radio Australia in the South East Asian region — in particular, an additional
five hours a day program delivery and transmission to Central and Western
Indonesia, Malaysia, Singapore and Brunei.
    The ABC has entered into contracts with three shortwave providers with
transmitters in Darwin, Singapore, Taiwan and the Marianas to provide
transmission facilities. The enhanced service reaches audiences in South-East
Asia and can be heard reliably in parts of the wider Asian region. Shortwave
broadcasts are delivered from several transmission sites, both off-shore and
on-shore, to provide scheduling flexibility.
    The ABC had to change distribution of Radio Australia's services to South
East Asia and the Pacific as a result of the Channel 7 decision to close its
                                                                                   Information to the public about reception
Australia Television service from 23 March 2001. The Radio Australia service       and transmission was provided via
had traditionally been carried through the same distribution system as the         brochures, the internet and an advice line

Australia Television service. Contracts have since been signed with a satellite
service provider to continue the service.


                         As of 30 June 2001, the following companies are wholly owned
                      subsidiaries of the Australian Broadcasting Corporation:
                            Symphony Australia Holdings Pty Limited
                            Adelaide Symphony Orchestra Pty Limited
                            Melbourne Symphony Orchestra Pty Limited
                            Queensland Orchestras Pty Limited
                            Sydney Symphony Orchestra Holdings Pty Limited
                            Tasmanian Symphony Orchestra Pty Limited
                            West Australian Symphony Orchestra Holdings Pty Limited
                            Orchestral Network Australia Pty Ltd
                            Music Choice Australia Pty Limited
                            The News Channel Pty Limited
                            AIM West Pty
                            Equipco Australia Pty Limited
                            AIM Holdings Australia Pty Limited
                            Arnbridge Pty Limited
                            Australian Information Media Pty Limited

                         The following subsidiaries are fully incorporated companies under the
Symphony Orchestras
                      Commonwealth Corporations Act:
                            Symphony Australia Holdings Pty Limited
                            Adelaide Symphony Orchestra Pty Limited
                            Melbourne Symphony Orchestra Pty Limited
                            Queensland Orchestras Pty Limited
                            Sydney Symphony Orchestra Holdings Pty Limited
                            Tasmanian Symphony Orchestra Pty Limited
                            West Australian Symphony Orchestra Holdings Pty Limited
                            Orchestral Network Australia Pty Limited
                          Each company is governed by an independent Board of Directors,
                      develops a Corporate Plan, Business Plan, maintains governance procedures
                      in accordance with relevant legislation, and reports with its own Annual


   The following subsidiaries did not trade in the 2000-2001 financial year:
                                                                                  Other subsidiaries
   Music Choice Australia Pty Limited
   The News Channel Pty Limited
    The following subsidiaries were placed into voluntary liquidation and are
in the process of being deregistered:
   AIM West Pty
   Equipco Australia Pty Limited
   AIM Holdings Australia Pty Limited
   Arnbridge Pty Limited
   Australian Information Media Pty Limited
    Information about transactions between the ABC and each subsidiary is
available at Note 18 Related Party Disclosures in the Financial Statements in
this report, and is included in the ABC consolidated Financial Statements of
the Corporation.

                                                                                  Melbourne Symphony
                                                                                  Photographer: Jeff Busby


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