Telegraph Media Group: Proposed Sale to RedBird IMI
(Limited Text - Ministerial Extracts only)
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Lord Bassam of Brighton (Lab)
My Lords, I find myself in the somewhat novel position of fiercely defending the interests of the Telegraph newspaper group and the Spectator in the interests of press freedom.
There was a fairly remarkable debate in the Commons yesterday because, on a Question about transparency and protecting democracy, the Minister’s answer was mainly that she could not answer any questions. I must gently say that this questioning is not designed to trip Ministers up; these are serious concerns, put forward thoughtfully by Members of all parties right across the House. I therefore hope the Minister will be able to answer two of those questions today. First, can the Minister point to any existing examples of a nation state with “differing media values”—as the chair of the Foreign Affairs Committee delicately put it yesterday—acquiring a major newspaper of another country? Secondly, and in the light of the proposed sale, do His Majesty’s Government have any plans to review existing rules on media ownership, and if not, does the Minister think they should?
The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)
I am grateful to the noble Lord for his questions and welcome him to the ranks of Telegraph and Spectator readers—I hope he will enjoy what he sees in their pages. He will understand that the Secretary of State is acting in a quasi-judicial capacity following the provisions laid out in the Enterprise Act 2002. She is considering whether mergers raise media public interest concerns. She has issued public interest intervention notices, reflecting the concerns that she continues to have that there may be public interest considerations in this case: the
“accurate presentation of news; and … free expression of opinion”
as set out in Section 58 of the Enterprise Act, which are relevant to this planned acquisition. I hope the noble Lord will understand that, as she is acting in a quasi-judicial capacity, it is essential that she does not take into account, and that there be no perception that she has taken or is taking into account, any political or presentational considerations. I therefore find myself in the same position as my honourable friend Julia Lopez in another place yesterday in being limited in what I can say while that quasi-judicial process unfurls.
Baroness Stowell of Beeston (Con)
My Lords, as the noble Lord, Lord Bassam, alluded to, the strength of feeling against this deal in the House of Commons yesterday was widespread and from all quarters of that place, and I would be surprised if there was much support in this House for the deal going ahead. Notwithstanding what my noble friend said about the Secretary of State acting in a quasi-judicial capacity in considering this matter, could he none the less give us an indication of how soon the Secretary of State can reach her decision? It seems to most people that the reasons for objecting to this deal are fundamental and points of principle, not necessarily points of technicality, and it should not require a great deal of time for her to reach her decision.
Lord Parkinson of Whitley Bay (Con)
The public interest intervention notices which the Secretary of State issued trigger the requirement for the Competition and Markets Authority to report to her on jurisdictional and competition matters and for Ofcom to report to her on the specified media public interest considerations. She has asked them to submit their reports by 9 am on 11 March 2024.
Lord Storey (LD)
My Lords, my noble friend Lord Clement-Jones tabled an amendment on Monday on the issue of media plurality. The Minister’s reply was that:
“The Government are currently reviewing the recommendations on changes to the media public interest test in Ofcom’s 2021 statement”.—[Official Report, 29/1/24; col. GC 291.]
That is over two years ago. Following on from the previous contribution, when does the Minister now expect to respond, and can he not expedite this? Of course, cynics say that he will now be able to do this because it is the Daily Telegraph; if it was the Guardian or the Independent, we would be waiting much longer.
Lord Parkinson of Whitley Bay (Con)
As the noble Lord said, the Government are currently reviewing the recommendations on changes to the media public interest test that were set out in Ofcom’s 2021 statement on media plurality to ensure that we fully understand the implications of such changes, including on the industry, whatever the title. I am confident that this work will be completed soon, which will allow the Government to respond in due course.
Lord Moore of Etchingham (Non-Afl)
My Lords, I declare an interest as an employee of the Daily Telegraph. May I ask the Minister a couple of points that I do not think depend on the quasi-judicial process? First, can he confirm that, when this was an auction organised by Lloyds Bank, before it took its current form, the Government stipulated that there should be no more than a 25% maximum owned by a Middle Eastern power? Can he also tell us whether, in the investigations going on, there is any investigation of this issue from a national security point of view?
Lord Parkinson of Whitley Bay (Con)
I will be careful in what I say to the noble Lord because of the quasi-judicial role which the Secretary of State is following as she awaits the views of the Competition and Markets Authority and Ofcom, as I set out, but she issued a new public interest intervention notice on 26 January, following RedBird IMI making changes to the corporate structure of the potential acquiring entities of the Telegraph Media Group. That created a new limited partnership which would hold all shares in RB Investco, the proposed purchaser of the Telegraph Media Group. Having considered representations, the Secretary of State came to the conclusion that this corporate restructure created a new relevant merger situation and that, therefore, a new public intervention notice should be issued. The one she issued previously on 30 November in relation to the anticipated acquisition remains in force; that is because it covers a different relevant merger situation. Ofcom and the CMA will report on both to her by the deadline that I set out.
Lord Bellingham (Con)
My Lords, is the Minister aware that Stephen Welch, who is the independent director at the Telegraph and Spectator tasked with steering the sale through, has recently been named as a defendant in a case against the FTSE company ICG in the Dublin High Court? ICG and other defendants, including Stephen Welch, have been accused, inter alia, of intimidation, conspiracy and misrepresentation. Does the Minister agree that he should stand down from the Telegraph while he clears his name in this other case?
Lord Parkinson of Whitley Bay (Con)
The Secretary of State is making her decision in a quasi-judicial capacity under the stipulations of the provisions of the Enterprise Act 2002.
Baroness Falkner of Margravine (CB)
My Lords, I will not ask the Minister to respond about the Secretary of State’s role, but the Minister will be aware that assurances have been reported in the papers that RedBird IMI would provide an independent advisory board to ensure journalistic independence. Can he tell us his assessment of the word “independent” going alongside “advisory”? Will he contemplate what the impact of that board will be, given that Meta’s advisory board has done nothing to improve Meta’s standing?
Lord Parkinson of Whitley Bay (Con)
I hope the noble Baroness will forgive me, but I think it is important that I and other Ministers do not opine on anything while the Secretary of State is making her decision in the capacity she is making it in. As I say, it is important that there should be no perception that she is taking into account any political or presentational considerations. She is, of course, considering all of the relevant information as set out under the Enterprise Act.
Lord Forsyth of Drumlean (Con)
My Lords, I declare an interest, as many years ago I had to make decisions as a Secretary of State in a quasi-judicial capacity and I understand the difficulties the Minister has. But, for goodness’ sake, it is an absolute no-brainer that you do not wish a national newspaper to be owned, however indirectly, by what is proposed. Why should it take so long for Ofcom and everyone else to come to the obvious conclusion and put us all out of our misery?
Lord Parkinson of Whitley Bay (Con)
Ofcom and the Competition and Markets Authority have functions set out under the Enterprise Act. They are carrying out those functions at the moment. The Secretary of State looks forward to receiving their reports by the deadline that she has set out. She will then take into account what they recommend to her.