The Australian Broadcasting Company (ABC), the country's public service broadcaster, is facing some uncomfortable choices now that its budget has been cut by 1%. (Unlike the BBC, funded by licence fee, the ABC is funded by its country's government). The government has also axed the ABC's 10-year contract to run the Asia Pacific TV service, Australia Network. The initial result is that ABC's managing director, Mark Scott, will impose redundancies. Other cutbacks are very likely.