Radio station 6PR sold to Southern Cross Broadcasters

15/11/94

Radio Station 6PR is to be sold to Southern Cross Broadcasters (SCB).

Services Minister Graham Kierath said SCB's $4.68 million cash bid was nearly $500,000 more than 6PR Holdings' offer.  SCB had also offered more than $6 million in free community advertising and other benefits.

"The whole tender process has been conducted with the utmost propriety and the superior tender won.  I will be tabling the relevant documents in Parliament so they can be fully scrutinised," Mr Kierath said.

"A rigorous examination of both bids was undertaken.  In three areas of evaluation the SCB bid was superior and in two categories, equal to that of 6PR Holdings."

Mr Kierath said local ownership of the station was a vexing problem for the Government.

"But because of the superior nature of the SCB bid and the fact that media ownership in Perth has changed dramatically over the years, the Government was not prepared to throw away half a million dollars to benefit one group," he said.

"SCB will be bound under contract to maintain local content.

"It must retain the current format for three years and will establish an advisory board which will include a Government representative to oversee the commitments SCB has made."

Mr Kierath said Cabinet had accepted the recommendation of the tender review committee that the SCB offer represented the best cash value.

In the area of local content, ownership and employment, the bids from SCB and 6PR Holdings both were addressed satisfactorily.

"As an indication of the fairness of this tender process, SCB's supplementary bid, which enhanced the cash bid, was ruled out on a technicality.

"Despite this, 6PR Holding's enhanced bid was still short of SCB's cash offer, which guaranteed money in the bank in 14 days.

"The Government will also make the SCB supplementary bid a condition of sale."

Mr Kierath said the professionalism of the entire 6PR staff had made the station a very attractive proposition, but the bid by 6PR Holdings was not good enough to win.

"The sale has been a highly contentious issue and some have attempted to make political gain and drag red herrings into the debate," Mr Kierath said.

"The station and its format will remain with the only change being that ownership will shift from a Government agency to the private sector."

Media contact:  Brian Coulter 222 9595 / 481 2133