No change to talkback format of Radio 6PR

14/9/93

There will be no change in the talkback format of Radio 6PR until further notice following the intervention of Racing and Gaming Minister Max Evans in the dispute between the station and its parent, the TAB.

The Minister vetoed a TAB plan for a small increase in race broadcasts on 6PR after receiving representations from 6PR advertisers and listeners this week.

Mr Evans said he was concerned that extra race broadcasts would cut the value of the Government's asset in 6PR, offsetting predicted TAB gains through higher turnover.

However, Mr Evans was critical of a scare campaign waged by 6PR's management and some announcers, saying they deliberately misrepresented the extent of the TAB proposal.

"The TAB and 6PR have been talking for some time about this proposal, and it concerns me that with the full knowledge of what was proposed, some people at 6PR have unnecessarily raised the fears not only of the public, but also of their own staff, that wholesale changes to the talkback format were about to be implemented," Mr Evans said.

"We had announcers broadcasting comments about the possibility of losing their jobs, and their support staff losing theirs.  This has never been the case.  As 6PR's management and senior announcers knew, the proposal left morning radio totally unchanged, and night programs would have been affected only marginally.

"However, perhaps I should not be too critical, because they run a damn good radio station, and it has become clear to me that they have such a high level of support that even the minor changes proposed were unacceptable to 6PR listeners and advertisers.

I was not prepared to take the risk of further devaluing an asset the TAB and Government paid $9 million for, so I have directed the acting chairman of the TAB to maintain its 1992-93 race coverage policies and practices until further notice."

The Minister said the Government's aim had always been to obtain a separate radio licence for the TAB and to subsequently sell 6PR, highlighting the importance of maintaining the value of the asset.  Mr Evans said there were now encouraging signs that Canberra would seriously consider its decision to deny the TAB a narrowcast licence.

"Senior representatives of the Australian Broadcasting Authority have convened a meeting to discuss the issue with Services Minister Graham Kierath on September 30, and we are quietly confident of a satisfactory resolution to the problem," Mr Evans said.

The Minister said he understood that the racing industry may be less than happy that the plan for more race broadcasts had been vetoed, but that the ramifications of the decision had to be kept in perspective.

"If these additional broadcasts had been allowed, the TAB was projecting that they would result in additional revenue of $9 million, of which just $750,000 would be shared between the racing codes," the Minister said.

"This pales into insignificance compared with the extra $7.3 million last year, and a projected $9.3 million this year, flowing to the codes because of the Coalition's racing policy - a policy so widely acclaimed by the industry that the former Labor Government had no option but to adopt it virtually in its entirety last year.

"It is also worth pointing out that the TAB itself is performing pretty well without the benefit of additional race broadcasts. 

"Its turnover was up 13 per cent last year, and is projected to increase another eight per cent to $520 million this year - putting another $3 million in the pockets of the codes.

"All in all, I believe the industry has received strong and generous support from this Government, and we continue our support by working towards the ideal situation in which the TAB has an all racing station to satisfy everyone involved in racing.

"However, as the ultimate owner of 6PR, the Government also has a duty to the station and its listeners, and I trust this decision allays any fears they may have had."

Media contact:  Barry Sargeant 425 1888/Tony Barker-May 481 3244