How the Camel Got in the Tent: The Canadian Assault on Australia's Foreign Media Ownership Limits

Abstract

Before 1991, Australia enforced strict limits on foreign ownership of licensed broadcasters and also limited foreign ownership of newspaper publishers. In the early 1990s, however, a pair of Canadian entrepreneurs succeeded in first raising and then circumventing those limits. Conrad Black bought 15 per cent of the Fairfax newspaper chain in 1992, and shortly before the ensuing national election lobbied to increase his stake to 25 per cent. In his 1993 autobiography, Black described backroom political dealings that resulted in a Senate inquiry. The Australian Broadcasting Authority soon began an investigation into another Canadian challenging the country's foreign media ownership limits. Israel ‘Izzy’ Asper, a former tax lawyer, found a way to legally purchase 57.5 per cent of Network Ten in 1992 by holding 42.5 per cent in the form of non-voting debentures. The ABA absolved his CanWest Global Communications of controlling Network Ten in 1995. Non-voting shares were outlawed in 1997, but CanWest was allowed to retain its debentures. The inquiries into Canadian purchases contributed to a decade-long process of re-evaluating media ownership limits that resulted in restrictions on foreign ownership being eliminated in 2006.