Senator LUNDY (2.23 p.m.) —My question is to Senator Kemp, representing the Minister for Communications, Information Technology and the Arts. Is the minister aware that US trade ambassador Zoellick has stated:

... the FTA contains important and unprecedented provisions to improve market access for US films and television programs over a variety of media including cable, satellite, and the internet.

Can the minister also confirm that the Prime Minister stated yesterday:

In relation to new media there is a reservation which effectively allows the Australian government, after a proper objective process involving consultation with parties, to reserve a level of local content.

Can the minister give an absolute assurance that the Australian government has retained the power to regulate all future broadcasting and audiovisual services without the consent of the US government?

Senator KEMP —Senator Lundy, we can all have a variety of quotes; people like to make them to promote a case. I must say that I have been intrigued with question time today and the obvious split which is now appearing in Labor Party ranks. I was intrigued to hear that Mr Beattie is a very strong supporter of the free trade agreement, and I was equally intrigued to hear from my colleague Senator Minchin that Mr Rann is also a very strong supporter of the free trade agreement. So I think the Labor Party already has problems in this area.

Senator Lundy, to respond to your question, let me quote Mr Kim Dalton. Mr Kim Dalton, as you know, is the CEO of the Australian Film Commission. This is what he said—it is not me; this is what he said:

The government has retained the capacity to regulate in all areas of the industry and should be congratulated.

That of course is the main game, as far as I am concerned. Senator Lundy was expecting that this government would not stand up for the interests of Australia. This government has a very proud record of standing up for the interests of Australia. Senator Lundy, as the government promised, we have fully preserved our cultural and public policy interests under the free trade agreement.

Senator Faulkner interjecting—

The PRESIDENT —Order! Senator Faulkner, shouting across the chamber is disorderly.

Senator KEMP —The point I think we should make is that Australian stories and Australian voices are still going to be heard on Australian screens and in the future. Senator Lundy, I have checked a press release that you put out in the last hour or so, and I regret to say that it is so full of errors that it will certainly have to be corrected. Your research is very poorly based.

I can confirm that the result under the free trade agreement for the audiovisual sector is a good one for the sector. It is a good result for Australia. It makes it very clear that the free trade agreement is in Australia's interests. As I have mentioned, the Labor Party are already splitting on this issue; there are Labor Party leaders who are very supportive of the free trade agreement.

Importantly, the agreement ensures that the government retains the power to regulate for Australian content in both existing and new forms of media, whether analog or digital. The outcome of the audiovisual negotiations also provides Australia with a capacity to apply current Australian content transmission quotas to more than one channel per provider in a multichannelling environment and to extend the 10 per cent—and this is an important development—expenditure requirement for pay TV to a broader range of channel formats and to potentially increase the expenditure requirements for pay TV drama services up to 20 per cent. This is a very good outcome for the free trade agreement. It is a good outcome for the audiovisual sector in Australia.

The scare tactics of Senator Lundy and her colleagues will not work. Senator Lundy, when you look closely at this agreement, you will see that what you predicted has not turned out. This government has been able to defend very strongly Australian interests. It is a very good outcome for Australia. It is a very good outcome for the audiovisual sector.

Senator LUNDY —Mr President, I ask a supplementary question. I refer back to the original question. The minister did not answer whether they can provide an absolute assurance that the Australian government has retained power to regulate all future broadcasting and audiovisual services without the consent of the US government. Please answer that question. If it is all okay, as you describe, what are the unprecedented provisions to which Ambassador Zoellick refers? And what is different, if you say it is all okay?

Senator KEMP —It is clear that Senator Lundy has not listened to the answer but let me make it clear that, if the Australian government determines that audiovisual content is not readily available to Australian consumers, the government can put in place measures to ensure that access to that programming is not unreasonably denied. That is a decision that the Australian government makes, as I have quoted to her. Senator Lundy's scare tactics are going to fail. They are not well based. To be quite frank, it is very important that Senator Lundy adopts a more positive approach to an excellent trade agreement for Australia.