Thursday 7th July 2011

(12 years, 10 months ago)

Lords Chamber
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Private Notice Question
11:37
Asked by
Baroness Royall of Blaisdon Portrait Baroness Royall of Blaisdon
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To ask Her Majesty's Government in the light of the loss of public and commercial confidence in News International and the imminent closure of the consultation period, whether they will suspend consideration of News Corporation’s bid to take over BSkyB.

Baroness Royall of Blaisdon Portrait Baroness Royall of Blaisdon
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My Lords, I beg leave to ask a Question of which I have given private notice.

Baroness Rawlings Portrait Baroness Rawlings
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My Lords, the Culture Secretary takes the view that News Corp has offered serious undertakings and discussed them in good faith. In all the circumstances, and given that the implementation of those undertakings will be overseen by the monitoring trustee and, thereafter, monitored and if necessary enforced by the OFT, he takes the view that there are sufficient safeguards to make certain that the undertakings are complied with.

Baroness Royall of Blaisdon Portrait Baroness Royall of Blaisdon
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My Lords, the House, and indeed the country, will know that that is the wrong Answer. Can the Government confirm that the Secretary of State legally has the discretion to defer if he so chooses? Refusing to suspend the process will be seen as incomprehensible by both the public and News Corporation’s advertisers and investors. Can the Minister set out for the House the reason for not doing so? If she is unable to do so now, will she do so in writing? Finally, will the Government provide for this House to debate these matters next week?

Baroness Rawlings Portrait Baroness Rawlings
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My Lords, to answer the final question first regarding a debate next week, that is in the hands of the usual channels. The Secretary of State has quasi-judicial discretion after the decisions of Ofcom and the OFT. Regarding the delay that the noble Baroness asked about, the consultation has not closed; it closes tomorrow, Friday 8 July. The Secretary of State will need to consider all the answers and all the presentations. At present, no date has been set for his decision—the Secretary of State will not be rushed. He will be fair. He has to make his decision on media plurality strictly within the law. He, like everybody else and like the press, has to work within the law.

Lord Dholakia Portrait Lord Dholakia
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My Lords, I can well understand the dilemma faced by the Culture Secretary because the merger has to be decided on the basis of media plurality. However, I ask the Minister whether we need this sort of media plurality when all standards of professional behaviour and decency have been ignored by News Corporation. Would it not be wise to pause until the major investigations promised yesterday by the Prime Minister have been completed, because there may be some very serious criminal proceedings?

Baroness Rawlings Portrait Baroness Rawlings
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My noble friend asks an important question. The Prime Minister said yesterday at Question Time that there would be two reviews, and the Cabinet is discussing the remits for those reviews. Two areas will be looked into: one is the police investigation and the other is the practice of press regulation.

Lord Soley Portrait Lord Soley
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My Lords—

Lord Puttnam Portrait Lord Puttnam
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My Lords—

Lord Puttnam Portrait Lord Puttnam
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My Lords, is the Minister having a conversation with her noble friend the Justice Minister, who is sitting at her side, and with the noble Lord, Lord Crickhowell, who is sitting behind her, to confirm that if she or her colleagues in another place check the record, they will discover that during the passage of the 2003 Act this exact clause was discussed in detail? The type of eventuality that we are dealing with today was anticipated and this clause was intended to deal with it. To ignore that is an abrogation of the will of Parliament.

Baroness Rawlings Portrait Baroness Rawlings
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The noble Lord, Lord Puttnam, makes a valid point. The Enterprise Act 2002 sets out the due process, which is that the Culture Secretary has to make a quasi-judicial decision on the impact of the proposed merger on media plurality issues alone. That was said by the right honourable Member in the other place, Mr Vince Cable, and that is what is happening. The decision will be made after Ofcom and the OFT have made their decisions.

Baroness O'Neill of Bengarve Portrait Baroness O'Neill of Bengarve
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Does the Minister agree that the Prime Minister said yesterday that there would be one or two inquiries, not reviews? Does she agree that those inquiries should be chaired by a judge and that they should have the power to subpoena documents and take evidence under oath?

Baroness Rawlings Portrait Baroness Rawlings
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My Lords, it would seem that that is necessary. However, at the moment there are several inquires going on and the Prime Minister’s reviews or inquiries will happen afterwards. I am sure that the noble Baroness is right in that they will probably have a judge but at this stage I cannot give her the details.

Lord Borrie Portrait Lord Borrie
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My Lords—

Lord Prescott Portrait Lord Prescott
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My Lords, I think the House would agree that you can have a full inquiry under the Inquiries Act 2005, and I am sure that that is what most of us would like to see. The Minister mentioned that the Government are prepared to look at plurality, but can I advise her that Ofcom has a responsibility to look into the invasion of privacy? Are the Minister and the Government going to take that into account in regard to the Murdoch application for BSkyB?

Baroness Rawlings Portrait Baroness Rawlings
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I have every sympathy with the noble Lord, Lord Prescott, whom we all know has been a victim of this. We feel that personal freedom and privacy are of great importance, but so is the freedom of the press. Hacking is illegal—we know that—and wrong. These cases are disgraceful and shocking. I remind noble Lords that these present hackings are not new. Hacking has been around for a very long time and it is perpetuated by many different people, not only the press. All that does not make it any better; it is a foul deed and the press have to abide by the law, as do we all.

Lord Phillips of Sudbury Portrait Lord Phillips of Sudbury
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My Lords, does the Minister agree that both of the inquiries on foot heavily conflict each other? The first is News Corp’s own inquiry, of which Rebekah Wade has been put in charge; and the second, more important one, is the police inquiry to which my noble friend referred. Sadly—one says this with some reluctance—there is a conflict of interest in the second inquiry, as there is no question but that a great deal of money has passed hands, not just between this newspaper but also between other newspapers and the police in recent years. Do the Government propose to do anything about that?

Baroness Rawlings Portrait Baroness Rawlings
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My noble friend brings up the importance and involvement of the police. We are talking about criminal cases here that are under investigation. It would be wrong to prejudge. In this whole area, the Secretary of State has been very fair and very transparent in putting everything in front of the House. We have had many debates on this. My noble friend Lord Fowler has asked questions on this; I am afraid I do not see him in his place today. We know that any payments regarding the police are against the law.

Lord Soley Portrait Lord Soley
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My Lords—

Lord Borrie Portrait Lord Borrie
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My Lords—

Baroness Scotland of Asthal Portrait Baroness Scotland of Asthal
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My Lords, can the noble Baroness confirm that the consequence of her answers is that she agrees, first, that the Secretary of State’s hands are not tied; secondly, that there is no reason for him to make this decision now; and thirdly, that it would be quite wrong for him to make a decision about the validity of accepting the undertakings from News Corp before properly considering the impact of the horrendous allegations that are now being made? Can she also confirm that this Government chose to restrict the referral simply to plurality, but they were perfectly entitled to refer, and should have referred, this matter also on the basis of broadcasting standards?

Baroness Rawlings Portrait Baroness Rawlings
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Yes—the Secretary of State will not rush into a decision. From tomorrow, he will see all the presentations, which will take time. He will not be rushed. His hands are not tied; he is in a quasi-judicial position. Ofcom and the Office of Fair Trading are both involved. There will be no decision right now because he is waiting for the consultations to come in. As was said by Mr Ed Miliband in the other place, the hacking has nothing to do with plurality.