In a letter to a member of Friends of the ABC the Labor Member for Adelaide, Kate Ellis, says that Labor believes that in-program advertising by the SBS "may be in breach of the Act".  Here is the full text of the letter:

Dear xxxxx,

Thank you for your email regarding your concerns about the future of the SBS.
 
I consider the SBS an icon of Australian broadcasting. By providing both multicultural and multilingual broadcasts that aim to educate and entertain Australians of all backgrounds, the SBS plays an important social and cultural role in Australia and one that Labor champions.
 
The Labor Party recognises that greater Commonwealth funding would assist the SBS to produce and broadcast more programs and news and current affairs bulletins for Australian viewers.
 
At its National Conference in April 2007, Labor acknowledged the importance of the SBS and committed Labor to ensuring adequate funding and support for the SBS, to enable it to continue to provide Australians with high quality services, free from political and commercial interference.
 
In order to ensure the independence of the SBS, Labor will make sure that all future SBS Board candidates are selected on the basis of merit. Candidates will be considered by a panel established at arm's length from the Minister. The Minister will then appoint Board members from a short list prepared by the panel.
 
Labor has opposed and continues to oppose the decision by SBS to introduce in-program advertising.
 
SBS maintains that they can put advertisements into their programs without there needing to be a change to legislation.
 
Section 45 of the SBS Act 1991 provides for advertising only during periods before programs commence, after programs end, or during natural program breaks. Accordingly, Labor is concerned that the SBS's action may place it in breach of the Act.
 
Labor’s Senator Conroy pursued this matter with the SBS at Senate Estimates in October 2006 ( http://www.aph.gov.au/hansard/senate/commttee/S9768.pdf ) and again at Senate Estimates in May 2007 ( http://www.aph.gov.au/hansard/senate/commttee/S10314.pdf ).
 
Thanks again for your email.
 
Yours sincerely
 
Kate Ellis MP
Federal Member for Adelaide