#friendsoftheabc

ABC lowers the bar (again)

Good to see our tax dollars get allocated so wisely at the public broadcaster. ABC’s JJJ music wing thought an article on oral sex titled, “A beginner’s guide to blowies” was just what the audience required. It will probably get put down as an oversight with assurances it won’t happen again until it does.

Your ABC vs Jacinda’s TVNZ

If you want to look at why the ABC doesn’t need more money, look at the staff costs to income ratio. Despite plateauing between 2008 & 2011 it quickly exploded. It now sits at 46% of income generated. That is $524mn on staff costs per year and rising. 4,939 staff grace the ABC. Revenue per employee is $232,000. A decade ago it was $232,700. Is that what the management target for hiring? Give the ABC $2bn and presumably it will have employment costs of $1bn.

Channel 9 must fight hard for every advertising penny but still manages a 29.1% staff cost to revenue ratio. $380m in staff costs on $1.3bn revenue. 3,310 employees converts to $392,750 revenue per staff member.

Sevenwest Media raked in $1.62bn in revenue on staff costs of $395mn or 24%. Same cutthroat world of earning a living instead of expecting one. Seven West has 4,528 staff meaning it generates $357,800 in revenue per employee.

Maybe ABC should channel the New Zealand state broadcaster, TVNZ. It gets $310m of its $318m purse from advertising. It’s staff costs excluding capitalizing into programs is $72m which converts to 23% staff cost/revenues. They do with 642 FT employees. Revenue/employee is $495,000. It paid a dividend back to the government of $3.7m. i.e. it is a revenue generating asset.

In 2007, TVNZ had $339m in revenue. It employed 1,023 people. Therefore revenue per employee was $331,380. So in a decade, TVNZ efficiency improved almost 50%. A 6% cut to revenue on 63% of the staff.

Instead of the long term ratings slide at the ABC across metro and regional Australia, TVNZ’s figures keep improving. Last year, TVNZ had a 43.2% all day audience up 1.3%.

Comparing 2017/18 and 2015/16 at the ABC we see that TV audience reach for metro fell from 55.2% to 49.7% and regional slumped from 60.3% to 54.0%. If we go back to 2007/8 the figures were 60.1% and 62.4% respectively. For the 2017/18 period, the ABC targets 50% reach. Hardly a stretch.

Maybe ScoMo should consider that the ABC compete and become self funding? The New Zealanders aren’t just better than us in rugby union but also in media.

Legitimate question or ABC soul searching?

This must be the most bitter pill for ABC Melbourne to swallow. In what seems to be a legitimate question to the audience, the reality is it smacks more of the taxpayer-funded corporation’s self-reflection that cuts are on the way. The ABC must be in a funereal mood. When its own MD speaks about not voting for the Coalition if taxpayers want to save the ABC, it is clear where the bias lies.

We don’t need to look very far for evidence. Whether the use of ABC Kids to talk of white privilege or calling conservative politicians c*nts. The ABC even found enough petty cash to hire Clementine Ford who proudly deals in profanity. The programming promotes all of the left’s key agendas – global warming, identity politics, class warfare and no diversity of thought. Hard left journalist Fran Kelly even sang a song bagging out the Liberal Party when Turnbull’s seat flipped to Kerryn Phelps.

PM Scott Morrison should move to hammer the ABC due to its unquestionable bias. Its inefficiency is beyond comprehension.

Since 2008, the average salary and benefits of ABC’s staff have risen 23% from $86,908 to $106,284. Total staff numbers have risen from 4,499 to 4,939 in 2018. Therefore salaries as a percentage of the ABC revenues have risen from 37.9% of the budget to over 50%. How can this be? Why should taxpayers be forking out more cash when it is not allocated wisely? Morrison’s government is right to cut $84mn from the budget.

The multicultural SBS has seen its budget grow from A$259mn in 2008 to A$398mn in 2018. SBS staff numbers have grown from 844 to 1,453 over the same period with average salaries rising from A$82,689 to A$94,010 or +13.7%. Which begs the question why is the SBS able to operate at 34.3% of the budget in salaries while the ABC is at 50%? Surely the ABC’s economies of scale should work in its favour? Clearly not.

On a global basis, the BBC generates GBP 4.954bn and employs 21,000 staff. 22.7% of those revenues are spent on salaries. Average salaries have grown 17% since 2007/8. The average income per employee at the BBC is now GBP236,852 (A$428,000) thanks to the generous mandatory licensing fees. Average salaries at the Beeb are now GBP 55,651 ($A100,728).

The ABC conducted its second Corporation-wide employee engagement survey in late 2017. The previous survey was conducted in November 2015, with outcomes reported in the 2016 Annual Report.

The overall employee engagement score from the 2017 survey was 46%, down six points from the 2015 results. 6% down!!!!

This moved the ABC from the median to the bottom quartile when benchmarked with other Australian and New Zealand organisations. Bottom quartile!!! 

Employees expressed the need for improvement in several areas, including:

• that the ABC Leadership Team needs to be more visible, accessible and communicate more openly.

 that the ABC needs to do a better job of managing poor performance. Even the staff want to move duds on. A commercial spirit among the staff?

• that employees want to know what action is being taken to address feedback received in the survey.

The ABC management (no longer with us) conducted sessions on the back of the survey.

Three key priorities were identified from these sessions:

1. The way in which the ABC recruits, contracts, inducts, develops and manages its people needs a huge amount of work. Inefficiency!!!

2. More communication is needed between teams – employees want to know what other teams are doing, and want less top-down, hierarchical communication. Bureaucracy!!!

3. Many of the ABC’s processes, tools and technology don’t work effectively for its people. Obsolescence!!!

So instead of giving the ABC more money, perhaps an efficiency drive driven by a change manager could achieve the same outcomes desired by the market for far less cost. This reads like an organization that has too much fat.

To that effect, the annual report also noted:

Bureaucracy Stop was launched in March 2018 with the aim of creating a working environment with less bureaucracy and red tape. The program wrapped three months later with 147 ideas on simplification of processes, 55 of which were resolved by the end of the financial year.Where a simplification solution wasn’t available in response to an idea, an explanation was provided as to why that process needed to remain.

What were the dollar savings for these 55 improvements?

Of course the ABC can’t tell us!

Despite the ABC not having one journalist who took the side of a potential Coalition win, they may well ask how their bias couldn’t drag Labor across the line? Maybe it’s the product. Time for Morrison to appoint proper crisis managers inside the group to make it efficient.

Cut the crap

Image may contain: 1 person, text

Labor Party MP Richard Marles posted this picture to his Facebook page pointing to the threat of the 2014 budget ahead of the 2013 election. It is all on the public record to see that this is blatant rubbish. Of course, the hope is that the “stupid” voters will not bother to fact check these claims 2 days ahead of an election. CM was fascinated to see how these numbers stack up against the actual budget papers. Complete fiction.

Entire health spending in 2013-14 was $64.6bn. In the 2014-15 projection, it was $68.1bn. Up $3.5bn. How does Labor get to -$57bn? In 2018-19, health spending was $78.8bn. The budget paper notes, “The increase in expenses of 6.8 per cent in real terms from 2013-14 to 2014-15 reflects the Commonwealth’s commitment to provide additional hospital funding from 2014-15 under current agreements with the States.

Education spending was $29.75bn in 2013-14 and projected $30.39bn the following year. (+$640mn). Technically if $30bn was cut from schools there would be no budget at all. In 2018-19, education spending was $34.7bn.

Government school spending in 2013-14 was $2.8bn which leapt to $5.1bn in the 2014-15 budget. In 2018-19 it was $7.7bn.

Indigenous Affairs welfare fell by $104m in the 2014-15 budget. In 2018-19, this budget was DOUBLE the 2014-15 number at $2.1bn.

ABC spending (split into TV & Radio – refer page 6-39) went up $18mn not -$35.5mn. In 2018-19 the budget was $1.03bn. As CM has written before, the ABC is a shoddily run organisation. Staff engagement at the ABC is 46%, down 6% from the previous survey. It isn’t a money problem. It is a management problem.

On page 6-11, income support for seniors went  UP from $39.5bn to $42.1bn). In 2018-19 it was $46.8bn. Total assistance to the aged went UP from $54.98bn to $57.97bn in 2014-15. In 2018-19 that sum was $66.77bn.

Welcome to pre-election political accounting 101.

Woke

Woke! Owns a Toyota Prius 4th Gen, loves the ABC and climate alarmist Zali Steggall but hates Tony Abbott. One wonders what might happen to a car with “Vote 1 Tony Abbott” stickers adorning the bumper? No doubt it would be keyed, have its tyres deflated and the owner alienated by his or her neighbours. Former PM Abbott will be relying strictly on the “silent voter” this Saturday.

To be fair to the driver above, at least the vehicle choice reflects the stance. Most other cars sporting such stickers in the well to do Warringah electorate are gas guzzling SUVs, often the top spec AMG versions too. Proof that some in the more elitist suburbs are happy for others to save the planet on their behalf!

The irony is that after the election, the driver will need to invest in some fossil fuel derived chemicals to remove the stickers…oh well…