Dennis Shanahan, political editor From: The Australian
SYDNEY (The Australian / Pacific Media Watch): The Gillard government has dumped its bungled tender process for the $223 million Australia Network and handed control and funding of the overseas network to the ABC forever.
Pre-empting an Australian Federal Police investigation and an Auditor-General's inquiry into the aborted contract process, cabinet last night decided on a policy change to hand the ABC the international service.
The decision is at odds with two different sets of recommendations from an independent tender committee believed to say the contract should go to the commercial Sky News, one-third owned by British broadcaster BSkyB, itself controlled by News Corporation, owner of The Australian.
Sky News chief executive Angelos Frangopoulos last night lashed out over the decision.
"I find this an extraordinary decision considering there are two investigations currently under way into the Australia Network tender," he said. "We expect to be fully compensated"
Communications Minister Stephen Conroy said last night that it was in the "national interest" to make a clear decision on the tender after a series of leaks had "compromised the process".
"The government believes it is unfortunate that this process did not reach a satisfactory solution," Senator Conroy said.
"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."
ABC managing director Mark Scott said he was delighted with the decision.
"The ABC takes seriously the responsibility to take Australia into the Asia-Pacific region, building on the outstanding services we have delivered over 70 years," Scott said.
"In a converged media world, the corporation looks forward to expanding Australia's reach in the region through a strategy that combines Australia Network, Radio Australia, online and mobile."
Foreign Minister Kevin Rudd unveiled the tender for the 10-year Australia Network contract 12 months ago.
Prime Minister Julia Gillard announced an "amended" tender on June 24, around the time a decision on the successful bidder was expected. It emerged at the same time that responsibility for the tender decision had been taken from the Department of Foreign Affairs and given to the Department of Communications.
Senator Conroy scrapped the tender last month, claiming legal advice had found that leaks had left the process compromised.
Opposition communications spokesman Malcolm Turnbull said Sky had every reason to feel bitterly aggrieved.
"They were asked to tender to provide the Australia Network service," Turnbull said.
"They did so in good faith. The tender was compromised, so the government said, not by Sky, nor indeed by the ABC, but by leaks made from within the government itself."
Opposition foreign affairs spokeswoman Julie Bishop said the Prime Minister needed to explain "the ongoing and unacceptable political interference" in the process.
"It is deeply troubling that the government has made a rush decision to grant the contract to the ABC before the outcome of the AFP investigation is known," Bishop said.
She added that the decision appeared to have been made while Mr Rudd was heading to a conference in Bonn on Afghanistan and was absent from cabinet.
(cc) Creative Commons
Pacific Media Watch
