"Cuts have been made to the ABC in the budget which we have said are a down-payment on the review.": Malcolm Turnbull.
"Cuts have been made to the ABC in the budget which we have said are a down-payment on the review.": Malcolm Turnbull. Photo: Alex Ellinghausen


Communications Minister Malcolm Turnbull has foreshadowed
deeper cuts to the ABC and SBS in coming years, warning the ''age of
entitlement'' for the public broadcasters is over.



Mr Turnbull said the broadcasters, whose funding has been cut
by $43.5 million over four years, should be relieved the axe did not
fall harder on them in the budget.




The government's efficiency review into the ABC and SBS has
identified tens of millions of dollars worth of potential savings and
will be presented to the ABC board for consideration this week.



The heads of ABC and SBS s argued in Senate hearings last
week the broadcasters should be allowed to reinvest savings identified
through the review into programs and services, an argument Mr Turnbull
dismisses as ''ridiculous''.




''I can understand why that's what they might ask for but if
there's money that can be saved - and there is - why should it not
contribute to the reduction of the deficit?'' he said. ''Haven't they
read Mr [Joe] Hockey's speech? The age of entitlement is over.



''Cuts have been made to the ABC in the budget which we have
said are a down payment on the review. That means we would expect more
savings to be forthcoming following … this process.''



Mr Turnbull, who launched a parliamentary Friends of the ABC
group last week, dismissed concerns further funding cuts could put
popular programs such as the children's show Peppa Pig or World Cup soccer broadcasts at risk.



''We want to make sure any savings are achieved with the
minimal - in fact a nil - impact on programming,'' he said. ''Without an
exercise like this, I think the ABC ultimately would have cut
programming because this is harder.''



The efficiency review recommends closer co-operation between
the broadcasters, including moving SBS into ABC headquarters - a move
former prime minister Malcolm Fraser dubbed ''the first step towards the
abolition of the SBS''.



The review, led by former Seven West Media chief financial
officer Peter Lewis, is expected to recommend increasing the amount of
advertising on SBS and outsourcing some payroll, human resources and
legal functions to the private sector.



Although Mr Turnbull cannot force the broadcasters to accept
the review's recommendations, he said he expected them to make tough
savings decisions. He is prepared to make public recommendations on
potential savings measures.



Mr Turnbull said the ABC and SBS should be relieved they were
spared a permanent efficiency dividend, which would have required
deep, continuous cuts to spending.



Liberal Party sources said Mr Turnbull lobbied against the
efficiency dividend being considered by the expenditure review
committee.



Mr Turnbull said: ''I couldn't possibly comment on any of the processes leading up to the budget.''



ABC managing director Mark Scott told Senate hearings the
broadcaster would become less compelling and relevant if it could not
reinvest savings in new services such as News 24 or iView.



''The ABC is not there seeking additional funding from
government,'' he said. ''What we are really asking for is the ability to
live within the funding envelope that was committed in the budget
before last to the ABC for a three-year period.''