Australian PM puts media reform on back burner

John Howard says a change is not number one on his list. Picture / Reuters

CANBERRA - Reforming Australia's media laws to allow increased foreign ownership of the country's media as well as mergers between newspaper and television groups was not a priority for the Federal Government, Prime Minister John Howard said yesterday.

His comments come just days after Communications Minister Helen Coonan said the Government aimed to introduce legislation to Parliament next year to overhaul ownership rules in Australia's media sector.

"If we can obtain agreement on a fair package then we will go ahead with it," Howard said. " If we can't, then I don't regard changing the existing laws as the most important priority for the Government in this term. It's not number one on my list."

Under present rules, a television licensee cannot own more than 15 per cent of a newspaper in its licence area and vice versa. Foreign companies also cannot own more than 15 per cent of a TV station or 25 per cent of a major newspaper.

But Coonan said she was considering allowing mergers between television, radio and newspapers within a licence area, provided there remained a minimum four commercial media groups in regional markets and five in mainland state capitals.

She said the Government was also committed to removing restrictions on foreign investment in commercial and pay television and newspapers, although any "material" foreign investment would need approval by the Treasurer.

"I've never supported the present laws ... particularly now that the media has changed so much," Howard said. "If we can reach agreement, and if it seems in the public interest, then we will go ahead with it. If we can't, we won't."

The new cross-media laws are expected to reshape Australia's media landscape, sparking a round of consolidation.

Australia's two main newspaper groups are Rupert Murdoch's News Corp and John Fairfax Holdings.

The three free-to-air television stations are the Seven Network, the Nine Network, owned by Publishing & Broadcasting and the Ten Network.

- REUTERS