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TELEVISION executives have warned Labor's push to abolish the reach rule for media ownership will result in the death of regional broadcasting.
Media executives today fronted a parliamentary inquiry on Labor's proposed media changes, in particular how they will impact television broadcasting.
Newly appointed Network Ten CEO Hamish McLennan told a 10-person joint select committee that the proposed abolition of the 75 per cent reach rule for media ownership would result in less diversity of media and would cripple the regional sector.
Regional TV faces a bleak future if the 75 per cent rule is dropped, says Network Ten CEO Hamish McLennan. Picture: Thinkstock
"There will be massive implications on regional Australia and I think we need to be concerned by it."
He said the removal of the reach rule would result in fewer bureaus, resources and journalists being stationed in regional Australia.
"The implications for regional Australia are great and we shouldn't rush (the changes) through," he said.
"Overnight, over a short period of time, you are going to see a concentration of media and less diversity."
His comments followed those by WIN television's chief executive Andrew Lancaster who said the proposed changes would put an end to regional news.
Mr Lancaster said the changes would impact WIN's commitment to local news coverage in regional Australia, while it would also hit regional advertisers who he predicted would be overlooked by the city-centric major networks.
"It would be the end of regional television, to be perfectly honest, because there would be no differentiation between what comes out of Sydney and what is aired in Victoria," Mr Lancaster said.
"There are also great concerns for regional advertisers."
Nine Nework CEO David Gyngell said the abolition of the reach rule would not result in the abandonment of regional news.
He said its removal was "absolutely critical to the future of television and growing our industry everywhere".
"I wouldn't allow the 75 per cent rule to be removed without the certainty of the high quality news content viewers currently receive," Mr Gyngell told the committee.
"The truth is the 75 per cent reach rule has long outlived its purpose, the explosion of the internet has seen to that."
Mr Gyngell said the proposed abolition of the reach rule made "good commercial sense".
He said the availability of television content on the internet had taken a hit to free to air television and the removal of the reach rule would assist in improving that situation.
Mr Gyngell committed Nine to maintaining the hundreds of journalists in regional communities if his company merges with Southern Cross.
Currently Nine and Southern Cross are unable to merge due to the reach rule, however the deal would be permitted under the proposed changes.
"I am committing to keeping those people in the marketplace because it is all about the people and the journalists," he said.
"It's not just about efficiencies - you're all getting hung up about that - it's about capturing values to tell Australian stories."
Communications Minister Stephen Conroy wants the full package of media reforms to be passed by both houses of parliament by this Thursday.
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