Friction continues between the partners in Melbourne’s 3MTR, with the latest dispute, concerning budgets, bubbling up into the public arena through a stock exchange announcement. Macquarie Radio Network is on the record as saying it cannot sustain the current level of funding to the high cost, low revenue talk format and says Pacific Star has breached the ‘Owners and Contributors Deal’ between the two companies by not participating in board budget processes. In response, Pacific Star alleges that the draft budget presented to the board was unsustainable.

The proposed MRN budget is believed to be based on further networking and cost reductions. Late last year the station’s Melbourne newsroom was closed and news now comes from Sydney. Several programs, including Chris Smith’s afternoon show, are currently networked from Sydney. (see our earlier coverage)

The stock exchange notice (below) explains Pacific Star’s objections to the way the budget process has been conducted, saying Pacific Star requested other budget options, but MRN refused to consider alternatives.