Accusations Fly Over Australia Network Decision

http://www.abc.net.au/news/2011-12-06/accusations-fly-over-australia-network-decision/3714294

By Stephen Dziedzic

SYDNEY (ABC News / Pacific Media Watch): Sky News says it is an extraordinary decision, the Federal opposition says it is a shambles, but ABC managing director Mark Scott is delighted.

Last night the Australian government suddenly ended the long saga over the Australia Network television tender, saying it has now decided the ABC will be able to keep the coveted A$223 million contract permanently.

Communications Minister Stephen Conroy, ABC managing director Mark Scott, Sky News boss Angelos Frangopoulos and Foreign Minister Kevin Rudd all declined AM's requests for interviews this morning.

But in a written statement to ABC staff Scott said the ABC had "a very proud tradition in international broadcasting" and said the corporation had "delivered a strong and credible Australia Network into the region for over a decade".

"International broadcasting is part of our charter," he said.

"I am enthusiastic about the future and the ABC’s ability to compete in this competitive international broadcasting market. Yesterday’s announcement is a strong endorsement of the quality and commitment we have displayed over the years and confidence in the high editorial standards that have underpinned this effort."

But Sky News, which was competing for the contract, is clearly irate, and the Coalition says the entire episode has been an embarrassment.

[Audio: ABC gets Australia Network contract (AM)]

Vying for contract
The ABC and Sky News had been vying for the contract to broadcast the Australia Network to dozens of nations in the Asia-Pacific region.

Last month the Federal government scrapped the tender, citing damaging leaks to the media which it said compromised the process.

Those leaks suggested an independent evaluation panel had recommended the contract be awarded to Sky.

Australian Federal Police are investigating the leaks and the Auditor-General is examining the entire tender process.

But yesterday Senator Conroy said that rather than allowing the uncertainty to continue, he had made a clear decision that the ABC will keep the service permanently.

"Several leaks have compromised the process and prevented a fair consideration of the bids," Senator Conroy said in a statement.

"The government believes it is unfortunate that this process did not reach a satisfactory solution. However, in light of the circumstances, it is now in the national interest to make a clear decision about the future of the service rather than allowing uncertainty to continue.

"Having reflected upon the process to date, and what the service really needs to provide, the government has determined that Australia's international broadcasting service should be delivered by the national broadcaster."

Process 'bungled'
Opposition communications spokesman Malcolm Turnbull says the government has bungled the entire process.

"This is a shambles, this is no way to run a government," he said.

[Audio: Sky calls for compensation (AM)]

"I mean, whatever the merits of the ABC's proposal or the Sky News proposal, what type of government operates on this basis? Goes out to a tender; wrecks the tender by its own leaks, and then abandons it and gives the prize to one of the candidates."

The saga has also amplified divisions in the government.

Rudd put the contract out to tender and some in the government say he has consistently favoured Sky's bid.

Senator Conroy took charge of the process in May.

Rudd was on a plane heading overseas when cabinet met yesterday, and the Coalition says it is clear he was deliberately excluded from the decision to hand the contract to the ABC.

'Polluted by divisions'
Turnbull says the divisions between Prime Minister Julia Gillard and Rudd have polluted the tender process.

"It's dysfunctional and right at the core of it is this extraordinary poison, this poisonous and bitter conflict between Julia Gillard and Kevin Rudd," he said.

"The whole process was poisoned by politics, poisoned by personal animosities, wrecked by leaks, which were driven by those personal animosities. And now it's been completely abandoned."

But Greens senator Scott Ludlam says the government has made the right call.

"I don't understand the arguments of people who think an international commercial provider could provide that Australian voice in the region better than our own ABC. So I think the premise of the original tender was flawed," he said.

Last night Sky News boss Angelos Frangopoulos said Labor's decision was extraordinary given there were two investigations currently underway into the tender.

"We expect to be fully compensated," he said.

Turnbull says that is not surprising.

"I think he's got every reason to be absolutely outraged by this, and yes I imagine he does have a claim because he has proceeded in good faith," he said.

"So there has no doubt been a lot of costs thrown away, a lot of time, a lot of trouble. I mean it just - it makes the government look like a shambles.

"This is a government that does not know how to operate."

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