The Abbott government faces another tough round of Senate negotiations in its bid to double the amount of prime-time television advertising on SBS, with crossbenchers indicating they are opposed to the idea.
If Labor and the Greens maintain their opposition, the government will have to convince six of the eight Senate crossbenchers to allow SBS to screen up to 10 minutes of ads per hour – up from 5 minutes now.
SBS would still be able to air only 120 minutes of advertising a day, but would be able to place more ads in popular programs such as the FIFA World Cup, Tour de France and the Eurovision Song Contest. Legislation is set to be introduced by March.
Key players including Palmer United Party leader Clive Palmer, independent Senator Nick Xenophon and Australian Motoring Enthusiast Party Senator Ricky Muir told Fairfax Media they have serious concerns about the proposal.
The move, estimated to add $29 million to SBS's coffers over five years, has angered the powerful commercial television networks, which say increased prime-time advertising would make SBS a "fourth commercial network by stealth".
"The government's political antenna seems to have failed once again," Senator Xenophon said. "This is ill-conceived policy thought up by a bunch of bean counters.
"Why would you antagonise the millions of supporters of SBS and the commercial networks who are already doing it tough?"
The government is quietly confident that the crossbenchers' concerns will be overcome when they realise increased advertising revenue is the only way to soften the blow of $54 million in SBS budget cuts, which will sail through Parliament in appropriations bills.
The crossbenchers would have to share the heat for unpopular cost-cutting measures at SBS - such as programming or job cuts - if they block the proposal, sources said.
SBS will lobby in favour of the government's proposal.
Senator Xenophon acknowledged that he faces a "dilemma" because SBS already runs a lean operation and would be hit hard by further budget cuts.
Greens communications spokesman Scott Ludlam said the government was attempting to "blackmail" the Senate into supporting more prime-time advertising on SBS, which he described as a "terrible idea".
Mr Palmer said: "If you increase advertising you change the nature of the station and why it was set up.
"SBS wasn't supposed to be purely commercial – it was set up to increase social cohesion and respect for everyone."
A spokesman for Senator Muir said: "Senator Muir is concerned about the impact an increase in advertising will have on the SBS and its ability to comply with its charter obligations."
Senator Muir had not reached a final position, but has taken note of a petition by lobby group Save Our SBS arguing against the proposal, the spokesman said.
The online petition has attracted almost 45,000 signatures including former At the Movies host Margaret Pomeranz.
The government's proposal has won the backing of Liberal Democrat Senator David Leyonhjelm who said: "I don't think I'll oppose it. I want the government to stop funding SBS so that it stands on its own two feet."
A spokesman for Communications Minister Malcolm Turnbull said the total amount of daily advertising on SBS would remain well below the 350 minutes per day that commercial broadcasters are allowed to air.
Opposition Leader Bill Shorten said late last year: "We see the government's trying to force SBS into doing more advertising - Labor doesn't support that."
