Thursday 11th November 2010

(13 years, 6 months ago)

Lords Chamber
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Question
Asked By
Lord Fowler Portrait Lord Fowler
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To ask Her Majesty’s Government what safeguards exist to prevent too great a concentration of media power in the United Kingdom.

Baroness Rawlings Portrait Baroness Rawlings
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My Lords, the Government believe that it is important for the media to reflect different viewpoints so as to safeguard democratic debate. In order to have a level playing field, undue concentration of media power is prevented in three main ways: first, there are statutory media ownership rules, which are enforced by Ofcom and provide absolute restrictions of ownership; secondly, mergers involving newspapers and media enterprises, like all other mergers, are subject to competition-based regulation by independent competition authorities; and, thirdly, the Secretary of State has an exceptional power to intervene in media mergers if necessary.

Lord Fowler Portrait Lord Fowler
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My Lords, I thank the Minister for that reply. In last week’s debate on media power, all 20 speakers on the list supported the decision to refer the News Corp attempt to take full control of BSkyB to Ofcom. Does the Minister agree that this shows the great concern that there is on this issue? Does she also agree that, in safeguarding the media in this country, it is absolutely essential to retain a strong and independent BBC?

Baroness Rawlings Portrait Baroness Rawlings
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My Lords, I am delighted that my noble friend Lord Fowler, who is always ahead of the game, had already tabled his Question before the debate last week in the name of the noble Lord, Lord Puttnam. During the debate, I set out the process for public interest investigation in respect of News Corporation’s proposed purchase of BSkyB. Clearly, there are merits in doing so again. The Secretary of State intervened in this merger last week and asked Ofcom to provide him with an initial report considering its potential impact on the public interest concern with media plurality. This came at the time of the debate. On receipt of Ofcom’s report—I wish to spell this out clearly, because it was a theme that went through the debate—the Secretary of State might need to decide whether to refer the merger to the Competition Commission for a more detailed investigation. If such a reference was made, the Competition Commission would report within 24 weeks and the Secretary of State would need to make a final decision on what action to take within 30 days.

None Portrait Noble Lords
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Too long!

Baroness Rawlings Portrait Baroness Rawlings
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I am sorry that it is a little long, but this issue is very important at the moment.

Lord Borrie Portrait Lord Borrie
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My Lords, given the importance and the independence of the bodies to which the noble Baroness has referred—Ofcom and the Competition Commission—why are they given this huge level of uncertainty through being listed in various schedules to the Public Bodies Bill?

Baroness Rawlings Portrait Baroness Rawlings
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The noble Lord, Lord Borrie, asked this question in the debate. I thought that I had assured him that Ofcom is not going on to the scrapheap, but it will be reviewed. I can assure him that, although changes will be made to the economic network regulatory functions of Ofcom, it is not being scrapped.

Lord Steel of Aikwood Portrait Lord Steel of Aikwood
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In reference to the third part of her Answer, does the Minister recall that, at the end of the excellent debate last Thursday, the noble Lord, Lord Puttnam, referred to a phrase used about the coalition by my noble friend Lord Razzall in saying that for some of us this issue would be a “significant marker”. Will she recognise that my noble friend was understating the case and that the transfer of ownership of a major television news station into the hands of the owner of four national newspapers, regardless of whose hands they are, would be an illiberal media outrage and wholly unacceptable?

Baroness Rawlings Portrait Baroness Rawlings
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We had the debate last week, when we went through this. It is not in the hands of the Government; it is in the hands of the Secretary of State. It is in the hands of the Competition—

None Portrait Noble Lords
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Oh!

Baroness Rawlings Portrait Baroness Rawlings
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After being examined by the Competition Commission and Ofcom, it will go to DG4 of the European Commission. Only when the Secretary of State has heard the representations from all those bodies will he make the final decision. It has to go through all those three stages, which will take until the end of the year.

Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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My Lords, will the noble Baroness clarify something? If Ofcom’s position is so secure, why is it on the endangered list in the Public Bodies Bill, as has been referred to?

Baroness Rawlings Portrait Baroness Rawlings
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It is no longer on the danger list; it has been removed. It is in Schedule 5 and will be removed from Schedule 7.

Lord Roberts of Conwy Portrait Lord Roberts of Conwy
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My Lords, in view of yesterday’s peaceful protest by the students, which, as I understand it, was hijacked by an anarchical and violent element, leading to police injuries and damage to property, can the broadcast media be reminded that they should take the utmost care to ensure that they are not open to the charge of encouraging further violence by their comments or in any way whatever?

Baroness Rawlings Portrait Baroness Rawlings
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My noble friend Lord Roberts is absolutely right and I could not agree with him more, but it is the Government’s position not to interfere with any of the media, including television.

Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch
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Even so, my Lords, will the Government encourage the BBC to fulfil the single promise that it made in the wake of the Wilson report in 2005, which was to explain to the British people how the institutions of the European Union interact and their effect on British life?

Baroness Rawlings Portrait Baroness Rawlings
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The European Commission will have a role in this because it is wide-ranging. DG4 is examining whether the merger may result in a loss of effective competition in the market. It must decide by 8 December whether to clear the merger or to proceed to a full second stage of investigation.