Public Confidence in the Media and Police

Damian Collins Excerpts

Wednesday 20th July 2011 Commons Chamber

[Simon Hughes]

I wanted to make some comments about where we should go, so let me start with the media and Ofcom. The existing legislation needs to be improved because the way in which a fit and proper person test—either corporate or individual—is formed is not clear, so it is difficult to apply. My hon. Friend asks me whether the test is assiduously applied over the period for which a licence is held. In theory it is, because Ofcom will say that it does that, but it is not obvious that there is a process of regular review. In addition, things can change, such as if people commit criminal offences, so we need a more transparent process.

[Damian Collins (Folkestone and Hythe) (Con)]

Will the right hon. Gentleman give way?

[Simon Hughes]

I will see if I have time, but I want to set out what needs to be done.

We need to look again at the question of excessive market share, and we need separately to consider broadcasting, television, the new media and the written press. We must be absolutely clear that that does not mean that we should be hostile to international ownership —that would be an inappropriate and nationalistic view—but the same rules should apply to elements of the press whether they are domestically or internationally owned.

We need to be absolutely clear that the media must put their house in order—the Attorney-General recently had to intervene on such a matter—by stopping any reporting that presumes that people are guilty when that has not been proved. That applies to all of us—I have tried to be careful about such issues—whether in the political context or otherwise. There have been scandalous examples of people being presumed guilty before the courts have considered their case. In addition, as has been said, there is no proper complaint process with a right of reply. It is imperative that any withdrawal is published by the press in the same size and place as the inappropriate allegation.

As my hon. Friend the Member for Bristol West (Stephen Williams) argued, I hope that the Government will review their future advertising policy. Whoever is in government should not place adverts with media outlets that have been found to be guilty of offences, or breaches of codes of conduct, because that would be entirely inconsistent.

Finally, as my hon. Friend the Member for Torbay said in the Select Committee on Culture, Media and Sport yesterday, we must get to the bottom of the term, “wilful blindness”. The evidence that we heard yesterday, as has been argued, suggested that the people at the top were saying, “I knew nothing” and were not even asking about what was going on further down the chain. That is unacceptable. Chief executives, chairmen and executive directors have responsibility and they should exercise it.

As my hon. Friend the Member for Wells (Tessa Munt) has argued, we must end windfall payments, bonuses and pay-offs when people leave the service because they have broken the rules. We must end the way in which the police tip the media off about arrests so that the media turn up to film them or photograph them. We must make sure that the police do not brief people so that individuals who have not been proved guilty are in the headlines as if they were. We clearly need a better complaints procedure. The police service, not just the Met, must have much better corporate responsibility.

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[Mr Clappison]

My hon. Friend is right, and that is why I have been very careful to refer to investigations that should take place, and which we now believe are taking place. We should not do anything that will either interfere with the proper course of those investigations or prejudice a fair trial for anybody who is brought to trial as a result of them. However, the question of a free and robust press is separate from that. An under-reaction would not be in the public interest, but neither would an overreaction, would could even be more damaging. We need a diverse, free and robust press that is unmuzzled.

Too great a concentration of broadcasting, which is so important, in one set of hands can be against the public interest. I heard what my right hon. Friend the Prime Minister said in his statement, and I agree completely with him. He made some very valuable contributions, particularly when he referred to the position of the BBC, which is a sensitive matter. I feel—I suppose I would, as a Conservative—that there has at times been a certain amount of bias, or a predisposition, in the editorial line of the BBC, and that certain matters that should have been investigated or highlighted have not been given proper attention. It is to the credit of the BBC that its present director-general has said that, looking back, the BBC did not do full justice to the issue of immigration.

[Damian Collins]

Does my hon. Friend agree that, as television moves to a single digital platform, having a strong ITV and a strong Sky will provide a good counterweight to the BBC and give consumers more choice?

[Mr Clappison]

My hon. Friend is right, and this is particularly true in the case of immigration. It is now accepted on all sides—including by the Leader of the Opposition and some of those who advise him—that proper immigration control is a matter of the greatest public importance, but it has not been sufficiently highlighted in the past. It is not the broadcasters but parts of the print press that have reflected public concern on that issue. The broadcasters were prepared to leave it alone, but some newspapers have had the courage to highlight the issue and reflect the public concern that is felt in many places.

I should like briefly to give the House a further example of an issue that is of huge interest to our constituents and of huge importance to the future of our country, but that is not dealt with properly by the BBC—namely, this country’s relationship with the European Union. The BBC’s coverage of the treaty of Lisbon and the debates on that matter in the House of Commons was pitiful. It pays no attention to many of our debates on European matters, and there seems to be a predisposition on the part of the BBC when it comes to matters relating to the European Union.

We must not merge the issues of the criminal conduct that has taken place with those relating to the freedom of the press. We need a free, robust and diverse press that can properly reflect the full range of opinions in this country, not just those that are predetermined by the BBC or by the narrow group of people who form the metropolitan elite and who fail to reflect the views of the overwhelming majority. My right hon. Friend the Prime Minister spoke for the country today on this subject. His reputation remains completely intact as a result of all this, and he has taken exactly the right approach to the investigations that he has set in hand and to the question of media ownership. I unreservedly commend his approach on those matters.

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[Damian Collins (Folkestone and Hythe) (Con)]

It is a pleasure to follow the very thoughtful speech of the hon. Member for Rhondda (Chris Bryant) about the phone hacking scandal and the work he has done. I know that he took a strong interest in our Select Committee hearing yesterday.

Although he is not in his place, I also want to thank my hon. Friend the Member for Maldon (Mr Whittingdale), the Chairman of the Committee, for the great skill and care he showed in chairing yesterday’s very challenging Committee meeting. I thank also the Clerks of the Committee, who have done a huge amount of work in the past couple of weeks in preparation for that meeting.

The Prime Minister mentioned FIFA reform as an example of a story that has been generated by challenges to that organisation that have been made by the media and others outside it. I have taken a huge interest in that story, and I think it is absolutely right external pressure has been put on an organisation that would not otherwise reform itself. It does not have any kind of proper internal governance structure or other means for reporting and holding to account senior people within it. Although we might admire the kind of journalism that points the finger at organisations such as FIFA, media organisations have to learn from some of the internal governance structures and faults within such organisations. I wholeheartedly agree with the hon. Member for Rhondda that it is not acceptable to have a situation in which, when wrongdoing is discovered, proprietors can say that they had no idea what had been going on at one level, and neither did the relevant person in the newsroom. If we believe what we were told by Rebekah Brooks in the Committee yesterday, stories were going into the News of the World without the editor, the news editor or that newspaper’s lawyers having full knowledge of their source. That is clearly not acceptable.

It is also unacceptable, when an organisation’s employees are under police investigation, when some are being sent to prison and when millions of pounds of compensation are being paid out by that organisation, for people at a senior level not to be fully aware of the seriousness of what is going on, and to be unable to act. That is a serious issue because one would hope that when people at the top of a professional organisation became aware of wrongdoing, they would become the drivers for internal change and reform and be the ones who make sure that things happen. The report of the Select Committee on Home Affairs shows that there are great concerns about how the Metropolitan police pursued this case and about the fact that evidence lay unchecked and unresearched for a good amount of time, which might have delayed the investigation for some years.

There is also a big challenge for News Corporation. Whatever comes out of the inquiry that has been set up to look into the work of the media and the police inquiry, News Corporation should reform its corporate governance structures so that it has a mechanism to ensure that this never happens again, and that people at a senior level can take the appropriate action at the appropriate time or be held to account at the highest level for the failure of that action.

[Richard Fuller (Bedford) (Con)]

My hon. Friend is making a strong point, as the hon. Member for Rhondda (Chris Bryant) did, about corporate governance needing to be changed. That is absolutely correct. Would my hon. Friend not also say that the culture and the mindset within which executives, even those at the lowest levels of these organisations, are working needs to change? It is not enough not to know what people in an organisation are doing; they need to know what they should and should not be doing.

[Damian Collins]

My hon. Friend makes a very good point. The point I raised with Rupert Murdoch in the Committee yesterday was about where the boundaries of investigative journalism lie, and whether they are clearly understood. Most people who have worked with news organisations—particularly former employees of News International who have spoken out—would say there was tremendous pressure for scoops and news. Some former News of the World journalists, such as Dave Wooding, who was on “Newsnight” last night, would say that there was that pressure, but that does not mean that they broke the law to go and get stories; they just did their job very hard. There are allegations about other people in the organisation who might have broken the law to satisfy their paymasters, editors and proprietors.

There is clearly a great need for investigative journalism in this country. It gives us a transparent society, and there is a lot more to being a democracy than simply holding elections.

[Ian Austin]

On this point about investigative journalism, will the hon. Gentleman disassociate himself from the disgraceful attempts that we heard earlier to smear Tom Baldwin for his role in a perfectly legitimate investigation that has been defended not only by The Times but by its then news editor, who now serves in the Government as the Secretary of State for Education, and who, following that investigation, described Lord Ashcroft as

“Ambassador for one foreign country and a tax exile in another”.

He also said that the credibility of the Conservative party was not enhanced by its then leader

“acting as the paid lobbyist for your own title-hungry Treasurer”.

[Damian Collins]

All I would say is that I would apply the same rule as the Prime Minister: people are innocent until proven guilty. If there are charges and an investigation, that is one thing, but no charges have been brought against Mr Baldwin, so he is innocent until proven guilty, just as anyone else would be.

There is a great challenge of looking at the boundaries of investigative journalism and at what is right and what is wrong. There must surely be a cultural failure within many news organisations if people believe they are being pushed to do things that might lead to their breaking the law, and that must be addressed. What has been said in the debate so far about the regulation of the press is key and part of that involves internal regulation, the corporate governance of news organisations and how they regulate themselves. The right hon. Member for Blackburn (Mr Straw), who is no longer in his place, talked about his concerns about self-regulation. Although it is different in different industries, it can be made to work.

My experience working in the advertising industry was that a code enforced by the industry on itself would work. One of the big differences between advertising and the press is that there are real financial penalties for advertisers who break the code. If a company has spent hundreds of thousands of pounds producing commercials and advertisements that then get pulled, there is a big financial loss, and a big loss of face for a number of organisations that might have their messages pulled, too, which damages them in the eyes of consumers.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I declare an interest as the Member of Parliament representing News International in Wapping. Although we all support the principle of “innocent until proven guilty”, some victims of the hacking scandal—employees of News International—have lost their jobs; they are victims who will suffer, regardless of their guilt or otherwise.

[Damian Collins]

The hon. Gentleman is absolutely right, and that is an important point. Going back to what I said about the importance of good structures of corporate governance there are victims within organisations that fail the test of corporate governance—innocent people who have done their jobs well lose out as a result of the mistakes of others. That is why it is so important that those structures should be there. Whatever lessons have been drawn from the scandal so far, that surely must be one lesson that the Murdochs have to learn from it; that is of the greatest importance.

Models of self-regulation can work, but clearly there is a need for total reform of the regulation of the press. The principle of a free press is, of course, of the highest importance. That must continue, but that does not mean that journalists can operate outside the law.

[Mr Cash]

Does my hon. Friend agree that the self-regulation of the press in the 21st century has to be regarded as self-regulation, or regulation, of the media as a whole?

[Damian Collins]

I am grateful to my hon. Friend, who makes an important point. The media and the news, in particular, work across multiple platforms; people get their news not just from newspapers, but from television and the internet, so there is a case for that, although that is quite a big and broad challenge. Certainly, among the regulators there should be people who have experience of multiple media platforms, and an understanding of what is acceptable. That is something to consider.

In the short time left to me, I want to raise a second point. We all agree that there is a good, strong, and important case for free media and a free press, but there is also a strong role for the regulators with regard to mergers involving media organisations. There was discussion earlier about whether politicians should be taken out of the process. It would be wrong for politicians to exercise independent judgment outside of legitimate advice about what companies are fit and proper, and what companies should, or should not, be merged. That should be based on a good high degree of technical and professional knowledge.

The right hon. Member for Bermondsey and Old Southwark (Simon Hughes) spoke, in answer to an intervention, about the application of a “fit and proper person” test. We on the Select Committee had a briefing about that from Ofcom, in whose eyes it is a real test. It has applied it in the past, and has removed broadcast licences from digital broadcasters in the past. I am sure that if Ofcom is monitoring this debate, it would be happy to send information about that to any hon. Members who have an interest in the issue.

We have an obligation to ensure that there is a free and open marketplace for media. The Leader of the Opposition raised his concern about the dominance of Sky in the pay TV market, but we have to look at that market as a whole, and not just one area of it. Yes, Sky is dominant in pay TV; ITV is also dominant when it comes to traditional advertising revenue generated from television. Most people probably get their news and content from the BBC. In the digital media age, all those will be accessible from one platform. When YouView launches next year, there will be more choice more easily available to consumers than ever before.

Although media companies are very different, it is right that we consider them as part of the same entity. We also have to consider that in the internet age, people will increasingly get their news from powerful online organisations such as Google, and social networking sites such as Facebook, which are out of the scope of the regulation of the UK media. We have to consider how media organisations in this country can compete with added pressure from those platforms, so we have to look at the totality of the media market.

We should recognise that newspapers are an enormously important part of our national life; many millions of people still enjoy buying and reading physical newspapers every week, as well as accessing them online, but newspapers, as a business model, struggle. They often succeed better when they are part of integrated media companies with the financial muscle to support them. To refer to remarks made earlier, that is why it is important that there should be oversight of the whole market, and that we consider the competitiveness and regulation of the whole market, and see it as a single entity producing news and taking it to people. When it is well run, healthy and respectable, it is of the greatest importance to a free society and a great democracy.

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[Mr Foster]

I regret allowing the right hon. Gentleman to intervene because, yet again, he is trying to engage in the party political knockabout for which the public will not forgive us. They want us to get on and sort out the mess. They want the police inquiry to get under way and be done properly this time around. They want the judge-led inquiry that my right hon. Friend the Prime Minister has set up to do its work as quickly as possible.

Yesterday we saw the excellent work of both Select Committees in their investigations. Sadly, we learned relatively little from the Culture, Media and Sport Committee. We got the welcome, but well-rehearsed contrition. We found that The Sun cannot tell the difference between a custard pie and a paper plate full of foam. We discovered that, bizarrely, Glenn Mulcaire’s legal fees continued to be paid. Thank goodness it has been announced that, as of today, those fees are no longer being paid. Above all, we discovered that there should be genuine concern about the corporate governance of News Corporation. We need to address that concern and its implications for us.

The Prime Minister rightly said that we must consider competition legislation—we certainly must. He also rightly said that we must consider plurality. I say to my right hon. Friend that we must consider not only when the test is applied—the Secretary of State for Culture, Olympics, Media and Sport has already committed the Government to doing that—but what the plurality rules cover. I think that all hon. Members recognise that we currently base the definition on news and current affairs. Yet surely all hon. Members also acknowledge that a powerful drama can transform how we view our world and each other, and that a powerful comedy can have the same effect. When we consider plurality, we need to widen the remit of what is covered so that it is not confined to news and current affairs.

[Damian Collins]

The right hon. Gentleman may have been coming to the point that I am about to make, in which case, I apologise, but does he also agree that strong media companies have the budgets to invest in new creative content and talent, which are important to the entire industry?