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  NR 94/1999

13 October

Further directions in 2UE hearing

On 12 October 1999, the Australian Broadcasting Authority held a second hearing conference to make directions in relation to its upcoming hearing re: 2UE, John Laws and Alan Jones.

The directions made by the Professor David Flint, ABA Chairman, are attached. They:

  • provide the names of additional parties who have been given leave to participate in the hearing;
  • direct those wishing documents provided to the ABA to be deemed confidential to make submissions on why they think they should be;
  • direct that any person summonsed to appear at the hearing may provide a statement of evidence;
  • direct that on 19 October 1999, the ABA will deal with questions of how confidential documents and information are to be dealt with in the hearing; and
  • direct that Counsel Assisting the ABA addresses the hearing with an opening on 20 October 1999.

The ABA has provided a number of persons with a notice to appear before the ABA to give evidence in relation to the subject matter of the 2UE hearing. A full list is included in the backgrounder to this news release. It should be noted that these are the people that the ABA has decided to summon, contrary to press reports that parties have made that decision. Parties have not yet indicated to the ABA who they might seek to call.

Preliminary indications from counsel assisting the ABA indicate that the witnesses are likely to be called in the following order:

1. Witnesses from the advertisers;
2. John Laws;
3. Alan Jones;
4. 2UE witnesses.

Within the witnesses from the advertisers it is proposed to call the witnesses from the Australian Bankers Association first and then other witnesses in an order yet to be determined.

The ABA has recently widened the terms of reference of the hearing to include consideration of whether the conduct of the presenters, in giving effect to their agreements, has lead to political matter being put to air without it being ‘tagged’ as required by the Broadcasting Services Act 1992. A copy of the revised terms of reference is below.

"This is just another aspect of considering the effects of editorial material put to air in the context of the requirements of the Broadcasting Services Act," said Professor Flint. "This matter is already covered by the terms of reference of the ABA’s broader inquiry, but it is convenient that it be considered in the public hearing."

At yesterday’s hearing, after considering submissions from the parties, Professor Flint ruled that television and radio broadcasters would not be permitted to record or broadcast the opening statements or witness testimony at the hearing. He left open the possibility of broadcasters recording or broadcasting the closing addresses. The ABA’s reasons are included in the backgrounder.

As public seating is limited in the hearing room, on the 10th floor, 80 William Street, Sydney, the ABA will use an accreditation scheme for journalists who wish to cover the hearing. Journalists who wish cover the hearing should inform the ABA in writing by 5 pm on Friday 15 October to ensure a seat. The ABA’s fax number is (02) 9334 7799. A copy of the ground rules for media coverage of the hearing is attached. Television broadcasters will be permitted to record establishment shots in the hearing room from 9.50 – 10.10 am on Wednesday 20 October, before the opening address by Counsel Assisting the ABA.

Go to the transcript of yesterday’s hearing and other public documents relevant to the ABA’s inquiry and hearing.

BACKGROUNDER

The directions made on 12 October were as follows:

Broadcasting Services Act 1992
Australian Broadcasting Authority
Hearing re 2UE, JOHN LAWS and ALAN JONES
DIRECTIONS made on 12 OCTOBER 1999

1. In addition to those granted leave by the Authority on 20 September 1999 as affected participants or public interest participants the following are granted leave to participate in the hearing:

(a) State Bank Limited and Foxtel Management Pty Ltd as affected participants;
(b) RAMS Home Loans Pty Limited and the Australian Hotels Association as affected participants but limited in their participation to making written submissions at the conclusion of the evidence.
(c) Communications Law Centre and the Media Entertainment and Arts Alliance have leave to participate as public interest participants by making submissions at the conclusion of the evidence.

2. Direct that if any person seeks that an order be made pursuant to section 189 of the Broadcasting Services Act in respect of any document or part thereof referred to in the index to the bundle of evidence to be adduced by the Authority ('the Tender Bundle'), then that person is to serve on the General Counsel of the Authority on or before 10.00 am on 18 October 1999 any submissions and evidence in support of such an order dealing specifically with the following matters:

(a) documents or part thereof in relation to which an order is sought;
(b) the terms of any proposed order;
(c) an outline of the basis upon which such an order should be made; and
(d) the harm that the person considers it would sustain if the document or part thereof was made public.

3. Direct that the General Counsel to the Authority forthwith notify persons who have provided documents referred to in the Tender Bundle but are not participants in the hearing of their right to make an application under direction 2.

4. Direct that any person summonsed to appear at the hearing may provide a statement of evidence as soon as reasonably possible, and copies of any such statement be made available forthwith to relevant affected participants.

5. Direct that the hearing commence on 19 October 1999 at 10:00 a.m.

6. Direct that any participant who wishes to raise any issue concerning the conduct of the hearing should give notice in writing and an outline of propositions by 4:00 p.m. on 15 October 1999 and direct that the issues so raised be dealt with on 19 October 1999.

7. Direct that on 19 October 1999 at 10:00 a.m. the Authority will deal with questions arising under directions 2 and 6 and direct that Counsel assisting address the Authority with an opening on 20 October 1999.

Witnesses

The ABA has provided the following persons with a notice to appear before the ABA to give evidence in relation to the subject matter of the 2UE hearing:

John Laws
Alan Jones
John Conde - 2UE
Tony Moltzen - 2UE
Ann Wild - Registered Clubs Association of NSW
Tom Mockridge - FOXTEL
Gary Williams - NRMA
Colin Bold - Colonial State Bank
Neil Gamble - Star City
Tony Aveling - Australian Bankers Association
Chris Stewart - Australian Bankers Association
Mike Edmonds - Australian Trucking Association
Bernard Shirley - Qantas
Max Suich - Cable and Wireless Optus

Preliminary indications from counsel assisting the ABA indicate that the witnesses are likely to be called in the following order:

1. witnesses from the advertisers
2. John Laws
3. Alan Jones
4. 2UE witnesses

Within the witnesses from the advertisers it is proposed to call the witnesses from the Australian Bankers Association first and then other witnesses in an order yet to be determined.


COMMERCIAL RADIO INQUIRY

MEDIA RULES FOR PUBLIC HEARING

Television and radio

  1. Television cameras will be permitted in the hearing room to obtain establishment shots from 9.50 - 10.10 a.m. on Wednesday 20 October, and must leave the floor immediately afterwards. The ABA has reserved its decision on whether television cameras and radio audio recording equipment will be allowed to film and record closing addresses.
  2. No television cameras or radio audio recording equipment will be permitted on the 10th floor of 80 William St at any other time during the hearing.

Transcripts

  1. Transcripts will be available to members of the media by 6.00 p.m. on same day on payment of a fee yet to be determined and payable in advance. Otherwise transcripts will be available on the ABA web site and in the media room during the morning of the following day.

Still photographers

  1. Still photographers will only be permitted in the hearing room for 5 minutes each day before start of proceedings. No cameras permitted on the 10th floor of 80 William St at any other time during the hearing.

Journalists and artists

  1. The ABA will use an accreditation scheme for journalists who wish to cover the hearing. Journalists who wish cover the hearing should inform the ABA in writing by 5 pm on Friday 15 October to ensure a seat. The ABA's fax number is (02) 9334 7799. Accredited journalists and artists will be permitted in the hearing room at all times, except as directed by the ABA panel. An area will be reserved for journalists and artists. Journalists will be permitted to bring hand-held recording devices into the hearing room, but these are not to be placed on the bar table or elsewhere in the hearing room. Mobile phones must be turned off in the hearing room.

Suppression of testimony

  1. The ABA panel may direct that a document, part of a document or portion of a testimony be suppressed.

Media room

  1. A media room will be available on the 10th floor of 80 William Street. No phones will be provided. Journalists will be expected to bring own mobile phones. Transcripts in hard copy form will be made available in media room during the morning of the following day.

Closed circuit television

  1. To reduce the amount of traffic in and out of the hearing room, the ABA is considering the possibility of a single camera closed circuit television system in the hearing room providing a video and audio feed to monitors, one placed in the public area outside the court room and another in the media room. The ABA may make a video recording from this system strictly for its own purposes.

Extract from transcript of hearing re: televising of proceedings

THE CHAIRMAN: At the last hearing I advised the parties that the Authority had received requests for televising proceedings. I invited submissions. It was argued that it was in the public interest that the public have access to these proceedings - indeed we hold the proceedings in public. At the same time, the Authority is aware that the public interest also requires the Authority to be fair to those involved. Most submissions in the first round were opposed to the televising of the proceedings, particularly testimony by witnesses. I think the reasons given were the potential for intimidation, what I would call inducement to Thespianism, the control of confidential and irrelevant material, and the need for reporting to be fair and balanced. Frankly, I doubt that discreetly placed cameras have an intimidating affect on witnesses, particularly in an age where video recording is commonplace. And it seemed that if we allowed for an appropriate delay and arranged for adequate control to ensure that confidential and irrelevant material did not escape, that would be sufficient. As to Thespianism, I would have thought that the combined effect of the Bar and the presiding member would be sufficient to curb any excesses. The problem, as I saw it, was really that the reporting be fair and balanced. An unguarded moment or an ambiguous admission is often balanced in a hearing on further examination. The panel and the members of the public who are present during proceedings have that opportunity to hear balanced testimony. The difficulty the Authority found was that the broadcasts of short extracts which might be deemed newsworthy without context and without any balancing testimony could be potentially unfair to witnesses, at times extremely unfair and prejudicial. Had there been a wish, say, on cable, to broadcast a delayed, uninterrupted and continuous transmission with a proscription against the re-broadcast of extracts, there would have been, I think, scope for the development of a fair analogy with the public access which we already allow in the court room. It is not feasible for the panel to clear extracts of testimony because this would necessarily involve consultation with the parties and with counsel which would soon develop into a parallel hearing. Apart from establishment shots of the opening of the hearing, the only outstanding matter is about the televising of the opening and closing addresses.

...

In the light of what has been put to me, and the danger of that prejudice of that sort of material being broadcast, it seems proper that I should direct that the opening address - and I understand there will only be one - not be broadcast, but I propose to leave open the question of televising the closing addresses.


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

WHEREAS the Broadcasting Services Act 1992 (the Act):

  • includes within its objects
  1. to encourage providers of commercial broadcasting services to be responsive to the need for fair and accurate coverage of matters of public interest; and
  2. 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

  1. 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')?

  1. What were the full terms of the Laws agreements?
  2. What was the extent of the licensee's knowledge of the Laws agreements and the implementation of the Laws agreements?
  3. 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?
  4. 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'?
  5. 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'?
  6. (a) Has any conduct of John Laws in giving effect to the Laws agreements led to any failure by the licensee to comply with the requirements of clause 4 of Schedule 2 to the Act through the broadcasting by the licensee of "political matter at the request of another person" without the licensee:

a.broadcasting the particulars required under subclause 4(2); and
b. keeping the records required under subclause 4(3)?

  1. 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

  1. 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.

('the Jones agreements')?

  1. What were the full terms of the Jones agreements?
  2. What was the extent of the licensee's knowledge of the Jones agreements and the implementation of the Jones agreements?
  3. 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?
  4. 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'?
  5. 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'?

    (a) Has any conduct of Alan Jones in giving effect to the Jones agreements led to any failure by the licensee to comply with the requirements of clause 4 of Schedule 2 to the Act through the broadcasting by the licensee of "political matter at the request of another person" without the licensee:

    (b) broadcasting the particulars required under subclause 4(2); and(b) keeping the records required under subclause 4(3)?

  6. 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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