16 November 1999

ABA expands terms of reference for 2UE hearing

The Australian Broadcasting Authority has extended the terms of reference for its public hearing regarding 2UE, John Laws and Alan Jones.

The ABA has added two additional corporations (Walker Corporation and Walsh Bay Finance Pty Ltd) to the list of corporations with agreements with Alan Jones contained in its previous terms of reference. The revised terms of reference are attached.

The ABA has issued notices under s. 195 of the Broadcasting Services Act to Walker Corporation Limited and Walsh Bay Finance Pty Ltd to produce documents. The ABA has also summonsed Mr David Mann (Walsh Bay) and Mr Geoffrey Davey (Walker Corp) to give evidence at the hearing tomorrow.

The ABA has also requested that Mr Alan Jones attend the hearing tomorrow to give further evidence.

The hearing will resume in Court Room 1, 10th floor, 80 William Street, Sydney, tomorrow at 9.30 am.

Transcripts and other public documents relevant to the ABA's inquiry and hearing are available on its web site: www.aba.gov.au.

BACKGROUNDER

TERMS OF REFERENCE FOR HEARING BY AUSTRALIAN BROADCASTING AUTHORITY UNDER DIVISION 3 OF PART 13 OF THE BROADCASTING SERVICES ACT 1992

WHEREAS the Broadcasting Services Act 1992 ('the Act'):

• includes within its objects

(i) to encourage providers of commercial broadcasting services to be responsive to the need for fair and accurate coverage of matters of public interest; and

(ii) to encourage providers of broadcasting services to respect community standards in the provision of program material;

• charges the Australian Broadcasting Authority with the responsibility for monitoring the broadcasting industry; and
• confers on the Australian Broadcasting Authority a range of functions and powers that are to be used by the Australian Broadcasting Authority in a manner that, in its opinion, will produce regulatory arrangements that are stable and predictable and deal effectively with breaches of the rules established by the Act;

AND WHEREAS:

• Radio 2UE Sydney Pty Ltd ('the licensee') holds a commercial radio broadcasting licence granted under the Act last renewed on 23 August 1996;
• John Laws and Alan Jones are presenters on Radio 2UE;
• on 20 July 1999 the Australian Broadcasting Authority commenced an Investigation under Division 2 of Part 13 of the Act into matters relating to agreements, arrangements or understandings entered into by or on behalf of the licensee, John Laws or any other presenter on Radio 2UE; and
• on 6 August 1999 the Australian Broadcasting Authority widened the terms of the investigation to include matters relating to agreements with certain presenters on Radio 6PR Perth and Radio 5AD and 5DN Adelaide;

TAKE NOTICE that for the purposes of the performance of its functions:

• to suspend and cancel licences and to take other enforcement action under the Act;
• to collect fees payable in respect of licences;
• to monitor compliance with codes of practice;
• to develop program standards relating to broadcasting in Australia; and
• to monitor, and report to the Minister on, the operation of the Act;

the Australian Broadcasting Authority will conduct a Hearing under Division 3 of Part 13 of the Act for the purpose of making findings in relation to the following matters:

John Laws

(i) What were the circumstances in which agreements (including contracts, arrangements or understandings) were made between John Laws (and/or persons or corporations acting for him or related to him) and the following corporations or associations (and/or persons or corporations acting for them or related to them):

• Australian Bankers' Association;
• Australian Record Industry Association Ltd;
• Australian Trucking Association;
• Cable and Wireless Optus Limited;
• Foxtel Management Pty Limited;
• NRMA Ltd;
• Qantas Airways Limited;
• RAMS Home Loans Pty Ltd;
• Registered Clubs Association of New South Wales;
• Sony Music Entertainment (Australia) Limited;
• Star City Limited;
  ('the Laws agreements')?

(ii) What were the full terms of the Laws agreements?

(iii) What was the extent of the licensee's knowledge of the Laws agreements?

(iv) What was the effect of any conduct of John Laws in giving effect to the Laws agreements on the content of programs broadcast by the licensee in the period between 5 October 1992 and 20 July 1999?

(v) Has any conduct of John Laws in giving effect to the Laws agreements led to any failure by the licensee to comply with the standard of conduct required by Commercial Radio Code of Practice Code 2 'News and current affairs programs'?

(vi) Has any conduct of John Laws in giving effect to the Laws agreements led to any failure by the licensee to comply with the standard of conduct required by Commercial Radio Code of Practice Code 3 'Advertising'?

(vii) What consideration was paid to:

• John Laws (or persons or corporations associated with him) pursuant to the Laws agreements;
• the licensee pursuant to the Laws agreements?

Alan Jones

(viii) What were the circumstances in which agreements (including contracts, arrangements or understandings) were made between Alan Jones (and/or persons or corporations acting for him or related to him) and the following corporations or associations (and/or persons or corporations acting for them or related to them):

• Cable and Wireless Optus Limited;
• Colonial State Bank;
• Qantas Airways Limited;
• Sony Music Entertainment (Australia) Limited;
• Warner Music Australia Pty Ltd;
• Walker Corporation Limited; and
• Walsh Bay Finance Pty Ltd
  ('the Jones agreements')?

(ix) What were the full terms of the Jones agreements?

(x) What was the extent of the licensee's knowledge of the Jones agreements?

(xi) What was the effect of any conduct of Alan Jones in giving effect to the Jones agreements on the content of programs broadcast by the licensee in the period between 5 October 1992 and 20 July 1999?

(xii) Has any conduct of Alan Jones in giving effect to the Jones agreements led to any failure by the licensee to comply with the standard of conduct required by Commercial Radio Code of Practice Code 2 'News and current affairs programs'?

(xiii) Has any conduct of Alan Jones in giving effect to the Jones agreements led to any failure by the licensee to comply with the standard of conduct required by Commercial Radio Code of Practice Code 3 'Advertising'?

(xiv) What consideration was paid to:

• Alan Jones (or persons or corporations associated with him) pursuant to the Jones agreements;
• the licensee
  pursuant to the Jones agreements?

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