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  • Aug 22, 2014
  • Updated: 5:10am
NewsAsia
BROADCASTING

Australian Broadcasting Corporation loses contract to run Australia Network

PUBLISHED : Wednesday, 14 May, 2014, 9:33pm
UPDATED : Wednesday, 14 May, 2014, 10:52pm

Australia's state broadcaster has lost the contract to run an international television service in Asia, with the government saying it had not been cost-effective.

The Australian Broadcasting Corporation learned on Tuesday that its contract to run the Australia Network would be terminated this year. The decision was contained in Australia's federal budget.

"The Australia Network has failed to deliver a cost-effective vehicle for advancing Australia's broad and enduring interests in the Indo-Pacific region," Foreign Minister Julie Bishop said in a statement.

"This decision will deliver A$76.8 million [HK$557 million] over four years to repair the budget with additional savings over the lifetime of the contract."

The Australia Network is a government-funded overseas broadcasting service established to pursue foreign and trade policy objectives, including promoting Canberra's engagement in the Asia-Pacific and Indian subcontinent.

Provided by the ABC since 2001, the service is free-to-air and broadcasts a mix of news and current affairs, English-language education programmes, documentaries, drama, sports and children's shows.

The previous Labor government awarded the ABC a 10-year, A$223 million contract after a bungled tender in which confidential information was leaked to the media, prompting the bid process to be aborted.

Rival Sky News was later compensated over the incident.

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