Laws' opinions for sale

by Rohan Gowland

The revelations of a secret $1.2 million deal between talkback radio king 
John Laws and major banks has not only shown what John Laws' approach to 
ethical journalism is, but, more importantly, has brought into the 
spotlight a practice that is said to be "a normal commercial 
relationship".

The ABC's Media Watch program on Monday last week revealed that an 
agent for John Laws had approached the banks seeking money in exchange for 
Laws ceasing his negative campaign against banks and instead making 
positive comments. A contract was agreed to in which 12 banks, represented 
by the Australian Bankers' Association, (ABA) would pay Laws $1.2 million.

Media Watch had obtained a confidential internal document written by 
the Bankers' Association chairman, Tony Aveling. It said, "The ABA has been 
approached by an agency representing John Laws".

In the document, Mr Aveling says the objective of the deal was to "reduce 
the negative comments about banks by John Laws from the present average of 
four a week to nil; concurrently, to receive positive comments from Mr Laws 
(over and above paid advertisements); and, by doing so, to shift 
Australians' perceptions of, and attitudes towards, banks".

The Director of Public Prosecutions is considering whether to refer the 
matter to the police for investigation into whether the actions of John 
Laws constitute criminal activity.

Several other investigations are also taking place, including Laws' 
employer 2UE, the Commonwealth Bank, the Australian Broadcasting Authority, 
and the Australian Competition and Consumer Commission.

Radio 2UE said it found it "annoying" that Laws had been profiting from 
private deals that it had not been aware of, while also being paid by 2UE.

Radio 2UE issued a statement indicating that it has taken steps to ensure 
that any such deals in future have to go through 2UE. 

Media Watch presenter Richard Ackland said it amounted to 
"extortion".

"Without putting too fine a point on it, if you're a broadcaster 
consistently slagging an institution, and then get your agent to approach 
them and say, `We'll change sides in exchange for money', there's a simple 
term for that, it's called extortion", said Mr Ackland.

In attempting to justify his actions, Laws stated his view of his role as a 
broadcaster: he said he was a "salesman" and implied that his editorial 
comments and opinions were products for sale. He said, "I saw a commercial 
opportunity in it."

The affair has laid bare the role of the corporate media and its sponsors 
in manipulating public opinion in the interests of big business.

The world of corporate media would have no argument with Laws' view of 
broadcasters as salesmen. The profits of sponsorship are their reason for 
existence.

The Australian Broadcasting Authority is looking at possibly launching a 
full inquiry into financial arrangements within the talkback radio industry 
— which could be an indication that they believe this is not an isolated 
incident.

The ABA said that its relationship with John Laws was "a normal commercial 
relationship". For the public, however, the possibility that such secret 
deals might be commonplace will not be reassuring.

Since big corporations, such as banks, are responsible for much of the 
human suffering in the world, their behind-the-scenes manipulation and 
control of public opinion is a serious and frightening prospect.