Community radio is struggling at present to take up a position in the digital radio framework.

The digital radio policy was introduced in 2005 and the legislative framework established in 2007. Under that framework metropolitan community stations in each capital city have a legislative entitlement to 2 / 9ths of digital capacity on each available multiplex, with that capacity shared by the number of metro-wide community radio services in each market.

Using that entitlement requires a level of Federal Government funding support, and careful technical and resource planning to bring about digital transmission and content delivery in a cost effective way.

The CBAA submitted cost estimations to the Federal Coalition Government of $16 million in late 2006, and $10.1 million was allocated over 4 years in the May 2007 Federal Budget.

That funding now seems under threat in an anticipated tough first budget for the Federal Labor Government.

“The community radio sector is caught in a position of 12 months of planning based on the 2007 budget allocation, a new Federal Government dealing with inflation issues and a budget due to be delivered in a couple of weeks, and a highly prescriptive piece of legislation with a start date of January 1 2009 for digital radio” says Kath Letch, Chair of the CBAA’s Digital Radio Project (DRCG). She adds that “the legislation introduced in May 2007 ignored substantial issues raised by all sections of the radio broadcast industry - community, national and commercial.”

The legislation requires metro-wide community stations in each capital city to form Digital Radio Companies (DRCs), in a company limited by shares structure. To have a stake in the digital transmission system, DRC’s, subject to federal funding support, would need to join a Joint Venture Company (JVC), also a company limited by shares, with the commercial stations in each capital city.

Ian Laird, Digital Radio Project Manager at the CBAA explains “the JVC deadline was April 21. Conditional consent was submitted by the Melbourne, Perth, Adelaide and Sydney DRCs with the primary condition of being subject to government funding support, but Commercial Radio Australia (CRA) was not in a position to accept those consents saying that all shareholders (commercial & community) must be treated on an equal basis.”

To add a further layer of complexity, the most sensible way to go about a digital transmission system roll out in each capital city is for technical planning and infrastructure arrangements to occur at a national level. In the commercial sector this has occurred through CRA and in the community sector through the CBAA in a national project management role.

“The community radio sector has harnessed scarce resources to plan effectively for the digital roll out based on the 2007 budget allocation and legislative framework for the last 12 months. To meet this roadblock of uncertainty at this stage of the planning process is extremely difficult for the sector to deal with. If the Federal Government wants to meet the start up date of January 2009, it has to make a clear budget commitment to community radio in the 2008 budget”, says CBAA President, Deborah Welch.

The CBAA has had meetings with the Federal Minister Senator Stephen Conroy in December and February and kept the Minister’s office informed of developments through each step of the process. But last week was the roadblock point for community radio, or as Margaret Simons described in her Crikey article on April 24 a “train wreck”.

Without a clear funding commitment from the Federal Government in the 2008 budget, due to be delivered on May 13, the community radio sector and DRCs in each capital city are stuck in limbo.

The Community sector cannot move forward on any basis without being confident of federal funding in the 08/09 financial year.

“It’s a very frustrating situation right now and the $5.8 million in the 2008 budget is not a big ask to get the first stage of digital transmission underway for 40 metropolitan community radio services. These services provide quite unique community generated content to specific sections of the community that can’t be provided by either commercial or national media services. It’s well established that fresh content is a clear driver for digital radio uptake and if the Federal Government want a successful policy outcome on the introduction of digital radio, it needs to support public radio’s role in that process”, says Kath Letch.

Community radio is not the only radio sector frustrated with the introduction process for digital radio. There’s plenty of frustration across all sectors of the radio industry as it struggles to meet an extraordinarily short time frame to establish digital transmission infrastructure for the January 2009 start up date. Though as usual, the community radio sector is probably the least resourced sector to deal with the issues involved. In addition, it has had to deal with an extra layer of company formation in comparison to any other sector in creating the DRC structures.

The community broadcasting position came to a screaming halt last week without certainty of Federal Government funding support.

Despite the various digital dilemmas the CBAA believes there will be a way forward for community stations to participate in digital radio and that it’s critical for community radio to move forward with multiple platform content delivery including digital transmission. The question right now is when, and in what shape and form. Federal funding will determine that outcome.

“For the Federal Labor Government to renege on the 2007 four year budget allocation to community radio would seem to be entirely inconsistent with its policies in relation to community engagement, and development of digital platforms. I think there has to be a way forward and the industry is at a critical stage of technical planning that the community radio sector must remain a part of to get effective outcomes for community services”, says Kath Letch.

What happens next for community digital radio will be determined by the Federal Budget on May 13. One might well ask Lindsay Tanner, Federal Minister for Finance and Deregulation, whether it will be a train wreck or a temporary derailment.

For information on digital radio or media enquiries contact: Ian Laird, DRPM at the CBAA P: 02 9318 9608 Email: Ian Laird