The Sydney Morning Herald
Web Diary
Margo Kingston

Cross media endgame

Friday, January 11, 2002

Clear the decks, start the new year fresh, and return to yet another 
attempt to abolish the cross media ownership laws. The fights keep 
getting harder to stop the Packers getting Fairfax - the wobbly last 
bastion against complete domination of Australia's media by the big two.

Oligopoly, of course, means a handshake - the collapse of independent 
(even any in some cases) reporting of the affairs of Murdoch and Packer 
- their media, their casinos, their sports competitions, their financial 
dealings - and totally unaccountable, almost complete control over our 
politicians. They're just about there now: in 1996 Packer and Murdoch 
met in London to carve up the media between them - Packer would sell his 
Fairfax shares to Murdoch, Murdoch would sell his shares in the Seven 
Network, the super-league battle would be settled, and Fox would supply 
programs to the nine Network. (The deal lapsed through disagreements 
between the men.)

I've been involved in many Fairfax journalist's battles on this over the 
years - each is harder, each ends with our backs further in the corner. 
Each time, fewer voices - inside and outside journalism - protest as the 
big two's power increases and alternative employment sources dry up. My 
sense is that this time is the last. We'll lose, as we knew we would, 
one day. Labor will fold while pretending it hasn't by adding a couple 
of meaningless amendments to the Lib-Packer-Murdoch fix.

After he won in 1996, Howard wanted to abolish the cross media rules 
banning ownership of both TV and newspapers, but to keep stopping 
foreigners buying newspapers. Why? Packer had changed his mind and lo 
and behold, Howard followed suit.

In 1991, Packer and Canadian publisher Conrad Black bid for Fairfax,
then in receivership, Packer said foreign ownership restrictions were
wrong. So did the Liberals - they argued foreign players would increase
competition. (Packer later withdrew from the consortium when certain
evidence was placed before the TV regulator concerning his claim that he
would not control Fairfax if his consortium won.)

But by 1997, when he wished to bid for Fairfax on his own, he insisted
foreign ownership restrictions stay, as this would save him the trouble 
of a bidding duel with a foreign player. Murdoch wanted foreign controls 
on TV ownership lifted so he could buy a TV station. Howard agreed with 
Packer - cross ownership goes, foreign control stays - but backbench 
pressure within his own ranks and Labor opposition saw him drop the
plan.

Then, James Packer said yes to lifting foreign ownership restrictions. 
This is crucial. Back in 1997, it was the Libs with Packer (the Nats 
weren't onside) and Labor with Murdoch. But now, its the Libs, Packer 
and Murdoch on the same team. Labor must be dying inside. What a 
diabolically cunning way for Howard to start his third term!! He gets 
what the big two want for them, and they like him for a while, and if he 
doesn't the big two blame Labor and ...

The government is running its usual garbage on how media ownership
doesn't effect diversity of news and opinion. It's untrue, and they know 
it. This time, they promise a rule saying that editorial management 
structures in TV and newspapers must be separate. That's pure formalism. 
Who picks the bosses of each structure? The same man.

The only way this catastrophe for our democracy will be stopped is if
Labor is courageous, strongly argues it out in public on the merits, and
conceives an alternative media policy to seriously protect independent
journalism. Odds on any of that, anyone?

Here's a piece I wrote last time Howard and communications minister
Richard Alston played for Packer and a Webdiary entry last year on the
One Tel debacle, which is proof of the farce media will become if this
goes through. The big two join the same gig. It blows up in their faces.
Murdoch's papers run his line. Channel Nine pretends James Packer
doesn't exist in the story. Jodee Rich makes his claims against the big 
two only in Fairfax. Goodbye Fairfax - goodbye any need for the big two 
to justify anything to anyone. And try this game - find any opinion 
piece in any Murdoch publication opposing the proposed Howard changes.

Before these pieces, another blast from the past. In 1991, during the
controversy over the Black/Packer consortium, 128 or the 225 MPs and
Senators signed a bipartisan petition opposing the bid. It called on the
Labor government to ``oppose the sale of the Fairfax group to any
individual or consortium that would result in a greater concentration of
ownership, and thus a diminution of competition in and diversity of
information sources in Australia.''

Signatories included John Howard, now PM, John Anderson, now deputy
PM, David Kemp, now environment minister, Peter Costello, now
Treasurer, Alexander Downer, now foreign affairs minister, Amanda
Vanstone, now family and community services minister. It also included
former National Party leader Tim Fischer, former health minister Michael
Wooldridge, former defence ministers Peter Reith and Ian McLachlan and
former family and community services minister Jocelyn Newman.

***
http://www.smh.com.au/news/webdiary/2002/01/11/FFX1RAIUAWC.html


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