The Federal Government signalled yesterday it would press ahead with plans to abolish restrictions on foreign media ownership as the Australian Democrats indicated they would carefully consider government proposals to overhaul media laws.

Commonwealth bureaucrats are nearing the final phase of discussions with the major media players about the proposed reforms. The government hopes to draft the new laws as soon as possible.

Meanwhile, Communications Minister Richard Alston is promoting the likely changes and while overseas is urging US and Canadian investors to consider putting their money into Australian media and communications companies. He is also promoting Australia's IT and biotechnology sectors.

Under changes flagged by the government last year, all restrictions on foreign media ownership would be removed. Australian media proprietors might also be able to own a television station and a newspaper serving the same market under the proposed regime.

The government views the current rules as anachronistic.

Under the current system, individual foreign investors are limited to a 15 per cent holding in free-to-air television, 20 per cent in pay-TV and 25 per cent in major newspapers.

The cross-media ownership rules prevent proprietors from controlling television stations and newspapers in the same market.

The government is considering a system that would abolish all restrictions on foreign ownership and effectively abolish the cross-media rules by providing exemptions to these rules.

Senator Alston's spokesman said yesterday the government went to the election outlining a plan to review media rules and wanted to get the changes right.

"We hope to move it forward as early as we can," he said. "We are doing it because we think it's good policy. We also are adamant that we are going to do both cross and foreign (media ownership rules). Because if you do one and not the other, then inevitably somebody benefits more than somebody else."

A spokesman for the Australian Democrats, whose support the government would need in the Senate if Labor opposes the changes, said it would be irresponsible of the party not to consider new media rules. "We're going to wait and see what it is that the minister is proposing, and take a look at it on its merits," he said.

It was vital that diversity of media ownership remained and that Australian content and jobs did not fall, the spokesman said.

Labor communications spokesman Lindsay Tanner said the ALP would carefully examine any proposals put forward.

"We are strongly committed to maintaining diversity of media ownership in Australia and our support for the existing regulatory framework is based on that commitment," he said. "Diversity of media ownership is fundamental to the health of our democracy."

Bruce Wolpe, manager of corporate affairs for Fairfax, owner of The Age, said Fairfax supported the removal of cross-media and foreign media ownership restrictions. The company had been in discussions about media rules with the government and with "several parties", he said.

Spokesmen for media organisations News Corporation and PBL would not comment yesterday, but both companies have been critical in the past of the current legislation.