Regional media was under the microscope again this week, with a two-day parliamentary inquiry into Australia’s regional news services.

And if that sounds familiar, consider that last year’s Senate inquiry was into “the state of media diversity, independence and reliability in Australia”, even though some of the same ground was covered.

Flood-related technical difficulties seemed to beset some witnesses and committee members (and with the NBN down locally, GXpress was not immune from this) but what we saw on Monday seemed to be less constructive than the second day.

A further factor then was the shortage of time: As the clock ticked past the scheduled end of the hearing, questions were taken on notice, and answers kept short. Chaired by Nationals MP Anne Webster (pictured), the inquiry – hopes to report by the end of the “caretaker” period – the time between when an election is called and parliament dissolved – ahead of the upcoming general election – and the formation of a new government.

Whether or not the end of the hearing concentrated minds, it seemed constructive and interesting ideas seemed to be flying around on its second day. And the presence of a small group of communications ministry mandarins, available to answer questions, albeit some of them on notice.

It will remain to be seen what comes out of the exercise, but given its implied government support, it stands a better chance than the Greens-chaired Senate inquiry.

Earlier, despite the focus on newspapers, much of the talk this week had been around the peripheries, with national and regional broadcasters taking up much of hearing time.

ACMA administrators were on hand, but admitted they had been less involved with newspapers until they had a role in managing the news media bargaining code – in registration, and preparations for the arbitration and mediation process.

One word used both by small publishers and committee members was “cumbersome”, and that’s before you get to the formality of being “designated”, a process at the treasurer’s discretion (and according to chair Anne Webster, a role he’s hoping he won’t have to use).

A few statistics here from the ACMA: of 41 applications to register, seven were found to be ineligible and six are still to be assessed. The authority “doesn’t have any oversight” of what has followed in terms of deals with digital platforms, and doesn’t keep a list of Australian newspapers, only of those associated with broadcasters.

Webster, whose electorate of Mallee is part of her regional commitment, spoke of the role of local media as a “vital component to an interconnected community and a thriving democracy”, and pointed to the fact that those living in remoter areas don’t always have a choice in where to access their news coverage.

Indeed, she admitted she had been told that what was needed might be “a 20-year solution” as regional newsprint became obsolete, audiences older… and perhaps, publishers transitioned to digital (assuming better internet access).

For the relatively-new coalition of independent newspaper publishers which trades as Today News Group, Damian Morgan spoke of the revival of print following closures, mostly by News Corp Australia and Australian Community Media.

A Today member had revived the historic Longreach Leader, while in Rockhampton, CQ Media had acquired a print site from News, providing jobs 15 staff. Currently, they’re printing seven nights a week to meet flood-driven demand.

“Despite the recent closures, there is still a viable and critical role for regional newspapers, and sometimes they’re the only source of independent local news,” he said.

While the closure of News’ print editions had created an opportunity for independents to fill the gap, the revival would need government support to be viable long-term. Morgan also spoke of the need for regulation, especially of local government-funded papers “sometimes under misleading names” produced by councils’ marketing staff, and which competed on unequal terms with local newspapers.

Another witness was Keer Moriarty, owner of Queensland’s Scenic Rim Media and publisher of the monthly Canungra Times and recently-launched fortnightly Beaudesert Bulletin.

By contrast, it seemed, a witness from regional broadcaster Win admitted that “news is not our bread and butter”… but not that it might be a reason for their existence. Regional TV also had its gripes, however, including that “nobody in regional broadcasting has a deal with Facebook”, and that news “needs to be easily found” on smart TV sets.

Was the loss of Neighbours – mentioned before local news – just a step on the way to a hoped-for plateau? “Regional newspapers are important but don’t forget there are others sources,” the inquiry was told.

For the ACCC, Tom Leuner spoke of “deals struck that wouldn’t have been” but for the bargaining code, and the “threat” of designation that brings parties together. About 60 CPA members have deals with Google and some with Facebook, he said, confirming that no money was flowing to public broadcaster SBS.

With no role in monitoring, there was no information about how that translated into journalists’ jobs. “We’ve never seen the code as the solution, but a contributing factor,” he said.

Assistant secretaries from Paul Fletcher’s communications ministry provided a range of insights. That the focus of the PING shareout, was on “getting money out the door quickly” and a formula used revenue as a proxy for reach (think about that) and that “some small newspapers complained loudly and justly” that they didn’t get funding. Including, it seems, some in Anne Baxter’s electorate. It was a solution “for a point in time,” she was told; PING and cadetships were different, and a new journalist programme is being designed.

And an external evaluation is in process that the committee – but not necessarily the public – will get to hear about. They’ve also started collecting their own data on closures and start-ups, as none exists.

Nice to know yours is “an industry in structural decline” for which a range of interventions were needed, and there was “no silver bullet”.

There’s also a look at new business models; not just subscriptions – “co-op” is apparently an unfashionable term – but a PING trust and encouragement for philanthropic support – “an emerging area”. With mentions for the big tech-backed Walkley Foundation and Judith Neilson Institute.

And perhaps, money “at the back of the couch”, as it was eloquently described, “tens, maybe hundreds of thousands that are not going to be spent” and may or may not have to be returned to the public purse.

As I mentioned, hopefully a report prior to the end of the caretaker period, but politics moves a varying rates.

One question asked today was why it would take the treasury’s review into the operation of the news media mandatory bargaining code – announced yesterday – until the end of September to report.

• On Monday, the inquiry heard representatives of two of Australia’s biggest regional publishers, Australian Community Media and Seven West Media’s West Australian Newspapers, and news agency Australian Associated Press.

ACM managing director Tony Kendall said that while the news media bargaining code had been helpful, it accounted for only five per cent of the company’s total revenue. It had “brought Google and Facebook to the table”, but metro players – including News Corp, Nine and Seven – had already “taken quite a significant chunk” of available monies before regional publishers’ negotiations.

He said that while Google and Facebook were seen as what really hurt publishers, it has been the rise of Carsales and Seek and Realestate.com.au that had “really decimated the classified revenues”, something that had already been happening pre-COVID.

If there is not material change in support from government, “some of our smaller titles will have to close” and jobs will be lost in those markets. He said they were faced with “tough decisions” in some areas, listing Mandurah (WA), Horsham (VIC), Parkes, Maitland and Cessnock (NSW).

WAN editor-in-chief Anthony De Ceglie said the group’s regional newspapers were “far less profitable than they once were”. Without assistance, they would have to increase cover prices, reduce content and, “eventually, and sadly, close mastheads”. The group’s regional newspaper revenue had declined 52 per cent from $32 million to $15 million in five years, with four (of their 19) regional mastheads making losses.

SWM head of regulatory and government affairs Clare Gill said that, apart from the bargaining code, it was the government’s change of the 75 per cent reach rule that enabled Seven to take over Prime TV, a move likely to lead to “more journalism being provided in local areas in WA”.

Meta ANZ director of public policy Mia Garlick told the inquiry commercial deals were “just one of the ways” the former Facebook provided support to publishers, pointing to “substantial investments” such as its Meta Australian News Fund. Just as the threat of bargaining code action has brought Meta and Google to the table in Australia, it’s generally taken that the digital giants’ “investment” munificence is money to keep governments at bay. But Garlick didn’t say that.

Peter Coleman