BSkyB Debate

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BSkyB

Amber Rudd Excerpts
Thursday 3rd March 2011

(13 years, 2 months ago)

Commons Chamber
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Jeremy Hunt Portrait Mr Hunt
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I thank the hon. Gentleman for kindly reminding me of the first part of his question. There is no doubt that someone with a 39% shareholding in a company has significant influence in the way it is run. For example, ITV has a 40% shareholding in ITN. However, the independence that the new board will have is unprecedented. It is enshrined in the articles of association of the company in a way that the independence of ITN, for example, is not. Despite the fears of many people, Sky News has been run with pretty sound editorial independence for the past 20 years while under a much greater degree of potential control by News Corporation than has in fact been exercised. So it is possible to have confidence that Sky News will continue to be run with proper, full editorial independence. I thank the hon. Gentleman for his forbearance.

Amber Rudd Portrait Amber Rudd (Hastings and Rye) (Con)
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Given that Ofcom initially believed that it would need to refer this case, due to concerns about plurality, will the Secretary of State tell us what elements of these arrangements convinced it that it should not do so?

Jeremy Hunt Portrait Mr Hunt
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Yes, I am happy to do so. There are a number of things, but I shall outline the main thing that has reassured Ofcom since its first report, which was delivered on 31 December. That report stated that, under the original deal proposed by News Corporation, Sky News would cease to exist as an independent media entity. That will not be the case under the new structure that has been proposed and published today. Sky News will be a separate company. It will not be majority owned by News Corp, and it will have an independent chairman. A huge number of safeguards will be put in place to secure the editorial independence that has been a key part of its success to date and that needs to be protected in the future for reasons of news plurality.