BACKGROUND TO THE DECISION
20 On 1 October 1992, in anticipation of the Broadcasting Act coming into force, the Authority determined a class licence for the provision of 'open narrowcasting broadcast services' under s 117(e) of the Broadcasting Act: see Acts Interpretation Act 1901 (Cth), s 4.
21 On 22 December 1992, the then Minister for Transport and Communications, acting pursuant to s 162(1) of the Broadcasting Act, directed the Authority to give favourable consideration to a proposal that the broadcasting spectrum available for a sixth free-to-air analogue terrestrial television service be allocated to community access television on a continuing trial basis, pending review.
22 At this time, the Broadcasting Act made no express provision for such a trial, there being no power to issue a temporary CTV licence (see now Part 6A). The Minister dealt with the problem by notifying the Authority on 17 March 1994, pursuant to s 31(1) of the Broadcasting Act, that capacity in the broadcasting services band was to be reservedfor community broadcasting services. That notice was subsequently revoked, and replaced with a notice reserving capacity for one community broadcasting service in each of the six State capital cities, and in Bendigo and Lismore.
23 The Authority, acting pursuant to s 34(1) of the Broadcasting Act, then made available the relevant part of the spectrum for open narrowcasting services. The Authority was empowered to take this step since the broadcasting services band spectrum reserved under s 31 had not been made available for the purpose for which it was reserved, no licence area plan under s 26 having been prepared. Thus the precondition specified in s 34(1)(c) was satisfied.
24 Next, the Authority assessed entities interested in participating in the trial. Once a suitable entity had been identified for a particular area, the Authority invited that entity to apply for an apparatus licence. The Authority issued a written instrument, pursuant to s 34(1)(f) of the Broadcasting Act, in respect of the area in question. The instrument determined that part of the radiofrequency spectrum would be available during a specified period (usually, but apparently not always a twelve month period) for open narrowcasting services for community and educational non-profit purposes. Apparatus licences were issued to trial participants under s 100 of the Radiocommunications Act by the Authority, acting for the purpose as the delegate of the Australian Communications Authority.
25 This procedure was applied to UHF Channel 31 in Sydney. CTS obtained apparatus licences for sixteen consecutive periods to provide an open narrowcasting television service for community and educational non-profit purposes. The first such licence was in respect of the period 15 February 1993 to 28 February 1994. The last period before the commencement of the present proceedings was for the period 1 January 2004 to 19 March 2004. The relevant part of the radiofrequency spectrum for Sydney was made available under s 34 of the Broadcasting Act during all these periods.
26 In 2001, at the request of the then Minister for Communications, Information Technology and the Arts, the Authority provided a report on its evaluation of the community television trial. One outcome of the evaluation was a decision by the Authority to allocate a CTV licence for the Sydney area, using UHF Channel 31 for the purpose. This required, among other things, the preparation of a licence area plan pursuant to s 26 of the Broadcasting Act. This was completed on 21 November 2002.
27 In January 2003, the Authority issued a 'Guide to applying for a [CTV] licence'. This document described the CTV licence allocation process, and explained the legislative requirements applicable to providers of CTV services. It also described the application form that had to be completed (ABA 64). The Guide contained the following statements:
'Trial CTV licences
A licence held under the trial arrangement (i.e. non-profit community/educational open narrowcasting licences) will be revoked on the allocation of a CTV licence issued pursuant to s 84 of the [Broadcasting Act].
…
The [Authority] may revoke current licences held by CTV licensees in the CTV trial prior to the expiry of these licences on 31 December 2003, in the event that the allocation of the CTV licences currently being offered is completed prior to this date.'
28 On 17 February 2003, the Authority issued a press release inviting applications for a permanent CTV licence for each of several cities, including Sydney. In consequence, the Authority received six applications for the Sydney CTV licence, including the applications from CTS and TVS. Thereafter the Authority conducted a lengthy evaluation process.
29 On 9 December 2003, the Authority advised CTS by letter that it would continue to make available spectrum in Sydney under s 34 of the Broadcasting Act for an open narrowcasting television service for community and educational non-profit purposes until 19 March 2004. The letter stated that the extension had been made to enable the Authority to finalise its allocation decision for the CTV licence in Sydney.
30 On 5 January 2004, a further apparatus licence was allocated to CTS for the period 1 January 2004 to 19 March 2004.
31 The Authority's meeting of 18 March 2004 had before it an Agenda Paper, prepared by the staff of the Authority, recommending that the Authority decide to allocate the CTV licence for Sydney to TVS. The Paper also recommended that the Authority should require TVS to report on a monthly basis on the status of its efforts to raise the funds to establish the service. The Agenda Paper recorded that the Contact Officer was Gina Herro and that the document had been cleared by Jonquil Ritter. There was no evidence as to their positions with the Authority.
32 The Agenda Paper explained that four of the six applicants did not satisfy the criteria specified in s 84(2) of the Broadcasting Act. It recommended the allocation of the CTV licence to TVS:
'on the basis that the service would better meet the needs of the general community in the Sydney licence area than would that of CTS. TVS and CTS have both demonstrated equivalent financial and technical capacity to provide the proposed services.'
33 The Agenda Paper gave three reasons for preferring TVS over the 'triallist' CTS. First, TVS's proposed 'consortia model' was preferable to the individual and organisation based model prepared by CTS, as it would better promote program diversity and provide increased opportunities for access and participation in the service through the consortium member organisations. Secondly, TVS had demonstrated to a higher degree than CTS that it would:
'meet the existing and perceived future needs of the community in the Sydney licence area which are not currently being met by existing broadcasting services by identifying the needs and interests of its audience. Although CTS provided evidence from Oztam of a reasonable monthly audience, it has not identified the specific needs of the community that it proposes to serve. Further, TVS has demonstrated that it will meet the needs of a broader cross-section of the community than would CTS, which proposes to focus on programming aimed at the non-English speaking community (22%), the over 50s demographic (22%) and local programming for English speakers (56%). In effect, almost half of CTS' programs focus on only two segments of the community. In contrast, TVS proposes programming aimed at a wide variety of individual interests and numerous groups in the community.'
Thirdly, TVS had demonstrated to a higher degree than CTS that it would encourage members of the community to participate in the operations and programming of the proposed service.
34 The Agenda Paper stated that TVS primarily aimed to provide 'diverse and innovative programming' relevant to 'local communities, disenfranchised and minority groups, and people from non-English speaking backgrounds and minorities and indigenous… people'. In contrast, CTS's proposed service had a 'more narrow programming focus'.
35 The Agenda Paper also concluded that TVS had the financial capacity to provide the proposed service. However, in the light of the Authority's experience with another licensee, which had difficulties in arranging finance, the Agenda Paper recommended that TVS report on a monthly basis on its efforts to raise funds:
'This will ensure that the [Authority] is kept abreast of TVS' progress which will enable it to quickly consider its options if TVS is not able to commence within the 12 month timeframe prescribed in the Act.'
36 Under the heading 'Other allocation options' the Paper said this:
'On the evidence before the [Authority], it appears that TVS has demonstrated to a higher degree that it merits the Sydney licence over CTS for a number of reasons. A decision to give the licence to TVS will result in taking off air a service that has been broadcasting for 10 years with considerable support from parts of the Sydney community. Further, it is likely that TVS would need 12 months before it could commence broadcasting. CTS and its supporters may therefore argue that there are public interest grounds in allocating the licence to them. If the [Authority] were minded to allocate the CTV licence to CTS it could attempt to address some of the weaknesses in CTS' application in a number of ways.'
The Agenda Paper then discussed three ways in which the weaknesses in CTS's application might be addressed. However, the Agenda Paper expressed the view that even if these options were implemented, they would be unlikely to cure those weaknesses.
37 The Agenda Paper also included the following passages:
'SENSITIVITIES
12. Strong criticism from the triallist in Sydney, CTS, its supporters and program providers is inevitable if the [Authority] adopts the recommendation in this paper, given that CTS has been broadcasting since 1994 and has an extremely strong expectation that it will be successful in obtaining a permanent licence. A decision of this nature may be challenged in the Federal Court.
13. Licensing [section of the Authority] notes that TVS has indicated that if it is the successful applicant, all community groups currently broadcasting with CTS are welcome to join the TVS consortium partner SLICE TV and apply to broadcast programs… It is recommended that the ABA strongly encourage TVS to grant access to the CTS program providers. The imposition of a condition could be considered in due course if necessary. Criticism from CTS' supporters and program providers is likely to be minimised if this occurs.
…
TIMING/PRIORITY
15. This is a high priority matter given that CTS' trial expires on 19 March 2004. The expiration of CTS's trial licence only one day after the [Authority] meeting is potentially a sensitive issue if the [Authority] rejects the recommendations in the paper or is otherwise reluctant to make an immediate decision. Each licence extension involves some expense to CTS, so it would be unreasonable to continue access to airtime in small timeframes. Conversely, a relatively long licence extension may, depending on what the [Authority] does next, run the risk of CTS remaining on air for a significant period after it is informed it has failed to obtain a permanent licence.
COMMUNICATIONS
17. A news release and Ministerial briefing will be issued should the [Authority] adopt the recommendations in this paper.
…
19. The [Authority] has received letters of support for CTS from 11 politicians. It is proposed as part of the media strategy that staff write to each of these MPs explaining the reasons for decision in order to minimise any political backlash.'
38 No formal minutes of the Authority's meeting of 18 March 2004 were tendered at the hearing, apparently because they had not then been prepared. A handwritten note prepared at the meeting indicates only that three members of the Authority were in favour of 'the proposal' and one was against. I infer that the proposals adopted were the recommendations made in the Agenda Paper. One staff member, a Ms Koller, is recorded as having been present when the Authority's decision was taken.
39 On the same day as the meeting, the Authority issued a press release. It included the following:
'In its assessment of the two remaining applicants (TVS and the previous triallist CTS), the [Authority] found that the service proposed by TVS would better meet the existing and perceived future needs of a broader cross-section of the Sydney community than CTS' proposed service.
"This has been a particularly difficult decision for the [Authority] to make in view of the fact that CTS has been operating a trial community television service for many years," said Professor Flint [Chairperson]. "The [Authority] acknowledges CTS' lengthy commitment to community television over the years. However, the Authority was of the view that TVS has demonstrated, to a higher degree than CTS, that it has established avenues through which members of the community may participate in the operations and programming of the proposed service."
Spectrum for the sixth channel community television trial in Sydney expires on 19 March 2004. TVS is required to commence its service within a maximum one year from the date of allocation of the licence.
"While there will obviously be some delay while TVS establishes its service, the [Authority] expects it to be on air as soon as possible and that once it is, every effort will be made to continue to meet the needs and interests of the ethnic communities that have been served by CTS", said Professor Flint.'
40 By a letter sent by fax on the afternoon of 18 March 2004, the Authority notified CTS of the decision to allocate the CTV licence to TVS. The letter included the following paragraph:
'Out of the six applications for this licence, TVS was better able to demonstrate that it met the criteria set out at section 84 of the [Broadcasting Act]. The [Authority] considered that TVS demonstrated, to a higher degree than CTS, that it would meet the existing and perceived future needs of the community in the Sydney licence area which are not currently being met by existing broadcasting services. TVS demonstrated that it will meet the needs of a broader cross-section of the community than would CTS, which proposes to focus on programming aimed at the non-English speaking community, the over 50s demographic and local programming for English speakers. In contrast, TVS proposes programming aimed at a wide variety of individual interests and numerous groups in the community. The [Authority] also considered that TVS demonstrated, to higher degree than CTS, that it would encourage members of the community to participate in the operations and programming of the proposed service. CTS' reliance on income from purchased airtime may limit the access of community groups that could not otherwise afford to broadcast their programs.
The letter also repeated some of the material contained in the press release.
41 On 19 March 2004, the Authority issued TVS with a permanent CTV licence.
42 By letter dated 19 March 2004, CTS's solicitors pointed out that CTS would be obliged to cease broadcasting from midnight that night. This was said to be manifestly unreasonable. The letter requested a six weeks extension of the licence pursuant to s 92J of the Broadcasting Act, which empowers the Authority to vary the licence period of a temporary CTV licence.
43 The Authority responded to this letter by pointing out that CTS had a transmitter licence for an open narrowcasting service and not a temporary CTV licence. Moreover, so the Authority said, spectrum for the open narrowcasting service could not be made available under s 34 of the Broadcasting Act once a permanent CTV licence had been allocated under s 84. For those reasons no extension could be granted. CTS has not sought to challenge the Authority's decision not to extend CTS's licence.