Gauging efficiency and effectiveness is often distorted by myths which can overwhelm fact. Indeed there is a common view that public providers must be less efficient than private firms. This view is manifestly wrong in the case of Australian public broadcasting.

Over the past four decades the ABC has become more cost effective than commercial radio and television, as is shown in Figures 1 and 2. The figures show the ratio of the total expenditure of the ABC and commercial radio and television on an annual basis divided by average hours per station broadcast for each respective year for radio and, given long-standing networking in television, per network station for television.

The mission of the ABC is to be a comprehensive broadcaster that also meets the needs of specialised audiences. Commercial broadcasters have no similar constraint upon their pursuit of mass audiences. Despite this the ABC is highly efficient in achieving ratings (Figure 3).    

The same patterns are clear when the ABC is compared with other comprehensive public broadcasters. Whether the criterion is cost per broadcast hour, share of government outlays, or expenditure per capita per day, the picture is consistent: that of a highly economical ABC, (Figure 4).

Nature of ABC Activities
Moving beyond and/or behind the aggregates, it is important to determine whether the ABC serves the public interest well via the form and content of its activities. Much of this requires qualitative judgement, but some numerical dimensions can also be considered. For instance, in terms of program diversity, the requirement to provide both comprehensive and specialised programming is a major obligation. While the ABC has comprehensive programs it also provides specialised programs -notably in children's, the arts and information programs.

In terms of innovation, especially responding to the changing environment of media 'convergence' and the 'digital age', the ABC has shown considerable initiative. The 'One ABC' concept, adopted in 1996, was driven in part by a recognition of the way borders between mediums were becoming blurred. The ABC quickly added online services to its portfolio. ABC Online accesses have grown rapidly (doubling in 1999 alone) and ABC sites are among the most frequently accessed information sites in Australia. Figure 5 shows the growth of ABC Online accesses since 1997.

On the politically pertinent question of regional benefits, the responsibilities of the ABC have meant substantial rural and regional broadcasting and programming. This contribution is most notable in rad io with 57 Local and Reg ional ABC broadcast centres. In 1999 local radio production increased from over 62,000 to more than 66,000 hours of local content, plus local news and sport. Increasingly, regional audiences are also served by the development of regional multimedia centres, creating local programming for radio, television, online and the new digital services.

Finally, the ABC is comparable with two commercial networks in terms of local television content overall. This broad indicator hides a distinctive ABC role in sub-sectors, such as education and children's programs. The impact of the budget cuts in 1996/97 can be measured in the reduced amount of original first release Australian content (Figure 6).

Moreover, on radio, commercial local content ranges from around five per cent for Australian performers in specialist formats to 25 per cent for contemporary rock formats, while the ABC's Australian music levels range from 25 per cent on Radio National, 27 per cent for ABC Classic FM to between 31 per cent and 34 per cent for Metro/Regional and 36 per cent for Triple j. On radio the national public broadcaster offers better practice on Australian content than commercial stations.

Public valuation
Efficiency measures and impact measures are helpful indicators in gauging the effective use of national resources in public broadcasting. But in the end it is the users of ABC services, and the tax payers who fund these services, who are the best arbiters. In this context, standard quantitative survey techniques have found widespread and consistent public support for the ABC.

The most recent detailed survey was by Newspoll in December 1 998, which found that:

• 86 per cent of respondents rated ABC television programming as good, compared to only 44 per cent for commercial television; and .
• 88 per cent rated ABC radio programming as good quality compared to 66 per cent for commercial radio.

Quantitative methods of measure- ment are just as persuasive in dollar terms. An independent 1994 study of public budget outlays, the Economic Planning Advisory Commission establrshed that the willingness to pay through taxes for arts and public broadcasting support exceeded the liability for these activities by seven per cent. Unlike areas such as family assistance, defence, unemployment, general industry assistance and the like, where taxpayers wanted to contribute less, the respondents were prepared to pay more for the arts and public broadcasting.

Looking Forward
The picture which emerges from this overview is that the ABC is a highly efficient broadcaster by both domestic commercial and interna- tional public broadcasting standards.

It also benefits the public through activities in areas such as program diversity and innovation.

While there is room for some improvement, there are dangers that ABC efficiency is coming at a growing cost. This is most noticeable in some indicators such as Australian content, and overall balance in programming.

Nevertheless the Australian public is demonstrably satisfied that its tax funding for public broadcasting is warranted and, indeed, there is rigorous evidence of support for increased funding.

Certainly it is arguable that substantial ongoing public benefit from public broadcasting via the national broadcaster will be delivered if there is appropriate funding support and full access to emerging technology, combined with respect for the ABC's independence and accountability.

Professor Glenn Withers AO is Professor of Public Policy in the Asia Pacific School of Economics and Management at the Australian National University. He was previously the Head of the Economic Planning Advisory Commission (EPAC), 1991-1991. This article summarises his preliminary findings of a more detailed report, 'National Public Broadcasting Benefit', commissioned by the ABC, which also gives full documentation of sources for data.