The commercial radio industry and media union have voiced concerns over a proposed change to the Copyright Act that could potentially harm the sustainability of local radio in regional and remote communities.

The Media, Entertainment and Arts Alliance (MEAA) and Commercial Radio & Audio (CRA) have made submissions to the Senate inquiry into the Private Member's Bill Fair Pay for Radio Play. The Bill proposes the removal of the cap on fees radio stations pay to the Phonographic Performance Company of Australia (PPCA) to play music. The PPCA's shareholders are three multinational record labels.

CRA, the peak industry body representing the interests of commercial radio broadcasters throughout Australia, said the industry is already paying almost $40 million a year in fees to play music.

"If multinational record labels are allowed to hike up radio's music fees it would harm the sustainability of stations - particularly in regional and remote communities where local media has already diminished," said CRA chief executive officer Ford Ennals. "Radio is already paying almost $40 million a year in fees - any increase to this would hurt radio, which in turn hurts music. Radio plays an important role in promoting and supporting Australian artists and music and we want this to continue."

MEAA, which represents musicians and songwriters, as well as people working in radio and journalism, has also expressed concerns.

"Record labels have historically wielded their commercial power over artists - and the performer rarely comes out on top," said MEAA Campaigns Director Paul Davies. He further adds, "The MEAA represents musicians and songwriters, but our members also include people working in radio and journalists, and the impact of any fee increase should be weighed up against the effect it would have on local and regional radio."

Davies also points out the need to consider the broader implications of the proposed changes. "We need to look at the bigger picture - the vast majority of musicians are cut out of payment for broadcasted music by the record companies under the current system, so we are concerned about any potential of entrenching and expanding an unfair system," he says.

CRA manages audio research and insights, metropolitan and regional audience measurement surveys, the Australian Podcast Ranker, revenue reporting, industry innovation, industry codes and standards, and regulatory and legislative matters.