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ABC chair Ita Buttrose (Image: AAP/Dan Himbrechts)
The ABC’s pending revenue deal with Google is problematic. Although it and its staff will undoubtedly be grateful for any respite, the broadcaster’s move to join Google’s News Showcase, worth tens of millions each year, poses an unacceptable risk to its obligations to the Australian people.
The ABC has been in these compromising positions before. In 2000 then-managing director Brian Johns was negotiating with Telstra over a $67 million contract to supply the phone company’s broadband portal with ABC-produced content.
In the public outcry which provoked a Senate inquiry, a Telstra executive famously said: “What we do think we are buying is the ABC’s integrity, honesty and independence.” The deal fell over when new managing director Jonathan Shier, assisted by consultants from Macquarie Bank, told the ABC board the commercial obligations to be imposed were too onerous.