Rupert Murdoch and News Corporation Bid for BSkyB

John Whittingdale Excerpts

Wednesday 13th July 2011 Commons Chamber

[Mr John Whittingdale (Maldon) (Con)]

It is not often, I expect, that I shall sign a motion in the name of the Leader of the Opposition. On this particular occasion I thought it right to do so. I commend the Leader of the Opposition on his approach, which is that we must tackle these appalling matters on a cross-party basis. I have always tried to do that in the Culture, Media and Sport Committee, which I am proud to chair, and I think that we have succeeded. I will merely say that I am sorry that the Leader of the Opposition’s predecessor did not choose the same approach this afternoon.

I believe that the atmosphere at present has become so poisoned by the stream of appalling revelations that it would have been quite wrong for the News Corporation bid to acquire the whole of BSkyB to go ahead. We still do not know—we still have not even begun to know—the full extent of what has been going on in the newsroom at the News of the World, in the higher levels of News Corporation or, possibly, outside that, in other organisations, but clearly there were already question marks about the “fit and proper” test for News Corporation’s bid. The important thing is that we should obtain answers to questions very rapidly. There is an ongoing police inquiry, which needs to be concluded as fast as possible; there is the judicial inquiry that the Prime Minister has rightly set, which I fear will take much longer; and then there is my Select Committee, which has asked Rupert Murdoch, James Murdoch and Rebekah Brooks to appear before it next Tuesday. We have not yet received a response. The Select Committee will meet tomorrow morning, and if we have not received a reply by then, we might well wish to return to the House to ask it to use the powers available to it to ensure that witnesses attend.

[Penny Mordaunt (Portsmouth North) (Con)]

There is an assumption that, once the News of the World ceases to trade, the victims of phone hacking will still have legal redress and that there will be a compensation fund for them. I doubt that that is the case, however. Is that something that the Committee could look at?

--- Later in debate ---

[Mr Whittingdale]

It might be more appropriate for the judicial inquiry to look at that matter, as it essentially involves a point of law, but I entirely share my hon. Friend’s concern that the victims should have access to proper compensation when wrong has clearly been done to them.

The Committee decided that we wanted to hear from Rebekah Brooks because she is the chief executive of News International, and from James Murdoch because he was until recently the chairman of News International in this country. We have also asked Rupert Murdoch to appear, because he is essentially synonymous with News Corporation. He has considerable achievements to his name. He pioneered the use of new technology in the newspaper industry, which transformed it, and he took the brave decision to launch BSkyB, which changed the whole face of British television. It is the case, however, that he will now be forever tarred with the revelations that have come out over the past few months about what has happened in his papers.

[Sir Gerald Kaufman (Manchester, Gorton) (Lab)]

As the hon. Gentleman knows, I was his predecessor as Chairman of the Culture, Media and Sport Committee. As he also knows, we asked Rebekah Brooks—then Rebekah Wade—to give evidence to the Committee, with Andy Coulson, at that time. She admitted with clarity that she had been involved in paying money to the police. Andy Coulson said that that had been done only within the law, which was an unbelievable lie because it is impossible for a newspaper to pay money to the police within the law. When the hon. Gentleman has Rebekah Brooks and the other people from News International before him, I advise him to take a long spoon with him, because of the way in which they will try to lie and cheat their way out of the predicament that they are in.

[Mr Speaker]

Order. Interventions must be brief.

[Mr Whittingdale]

I recall vividly the evidence given by Rebekah Brooks to the Committee when the right hon. Gentleman was its Chairman. It included matters that he rightly says might turn out to be criminal, and I am certain that the judicial inquiry will want to examine them. I have no doubt that some of my colleagues on the Select Committee, who are extremely robust on these matters, might well wish to ask questions about those matters as well, should they have the chance to do so.

In regard to the takeover of BSkyB—which is, after all, the matter that we are supposed to be debating this afternoon—it has always been the case that there are more stringent tests for the acquisition of a media company in this country. That is right; it is a reflection of the power of the media that they should be subject to greater tests. I would like to take this opportunity to commend the Secretary of State for Culture, Olympics, Media and Sport, my right hon. Friend the Member for South West Surrey (Mr Hunt), who has been utterly scrupulous in his handling of this matter. I believe that he has acted on the basis of independent advice at every stage, and it is difficult to find fault with the way in which he has conducted himself.

[Kevin Brennan (Cardiff West) (Lab)]

Speaking as a former competition Minister, may I ask the hon. Gentleman to accept that it was open to the Secretary of State to make a choice to stick with his original conclusion that he was minded to refer the matter to the Competition Commission? Had he done that, we could have been saved a lot of trouble.

[Mr Whittingdale]

My right hon. Friend the Secretary of State acted on the basis of the advice that he received from Ofcom. The original advice was that he should refer the bid, but Ofcom then came back and said that the undertakings being given by News Corporation were sufficient and that there was no longer a need to do so. At every stage, he has acted on the advice of the independent regulator.

I want to say a few words about BSkyB, which has been an extraordinarily successful company. It has pioneered choice in television and introduced the personal video recorder, high-definition television and 3D television. It has recently passed the 10 million home mark. It has been incredibly successful. It is right that its ownership should be subject to very close scrutiny. I would also like to commend it on its most recent announcement of £600 million of annual investment in UK content, which will do a tremendous amount of good.

The test that my right hon. Friend the Culture Secretary put up to be examined was that of plurality. That is about Sky News. It is worth saying that throughout this saga, Sky News has displayed the same objectivity and independence in its coverage of matters concerning its parent company—or the company that sought to become its parent company—as it has in other matters.

[Mr Cash]

We heard earlier about the published terms of reference set out by the Prime Minister. We got them from the Library and they refer to a

“judge-led inquiry into phone hacking”—

but it is confined to the press. Would my hon. Friend, having been consulted and with his Committee meeting tomorrow, agree to look into these terms of reference? Does he agree that sound and visual media journalism has to be included to make the inquiry fully comprehensive?

[Mr Whittingdale]

I have not yet heard any suggestion that similar activities have been undertaken by television or radio companies, but, should that be uncovered, I have no doubt that the judge would request a broadening of the terms of reference to include it. The important thing is that the judge should follow the evidence wherever it leads. As I understand it, that is the undertaking that the Prime Minister gave.

Some have expressed the concern that Sky News might go the way of Fox News. Fox News is very successful, but I do not believe that it would ever succeed in this country. We have an entirely different climate. Nevertheless, that was the key issue under consideration when we examined plurality. However, the revelations over the course of the last two weeks have raised a much more serious issue—the “fit and proper” test and whether or not News Corporation meets it, not just in respect of its 100% ownership, but now in respect of its 39% ownership of BSkyB. That is something that Ofcom will want to consider, but I believe that Ofcom is correct in saying that it should act on the basis of evidence rather than allegation. These matters need to be pursued to the very end. We need to discover the truth, and if it turns out that very senior executives in News Corporation are involved in, or had knowledge of, what has been going on, that will raise questions about the fit and proper test. I have no doubt that Ofcom will pursue them.

It might take years for us to find the full extent of what has been happening and to get to the truth, but if that is what it takes, that is what we must do. This episode must never be allowed to recur. We need to find out the full extent of it. We will try to begin to uncover some of the truth on Tuesday, if those people are willing to appear before us, but this judicial inquiry and the police inquiry must find the truth.

[Several hon. Members]

rose—