Lord McNally (LD)
Yes, the cricket.
We welcome this Statement. Sometimes I am teased by my colleagues about my membership of the Puttnam committee on the Communications Act 2003, but actually the Puttnam amendment to that Act is the origin of the powers that the Secretary of State has used here. The Puttnam amendment widened the reasons for Secretary of State interventions and has been used very usefully at key times in the last 20 years. In terms of these bids for purchase of our media, it means that we are able to take in the wider public interest and we support the Secretary of State in so doing.
I am not naturally a supporter of RedBird IMI, but I have some sympathy for the question of whether it is fair to either would-be bidders or the wider public interest to be so behind the curve and reactive when such bids arise. Media ownership is becoming more interlocking and intertwined between print, broadcasting and online. In many ways, although they might not like it, print journalists are becoming almost like the hand-loom weavers in the world of fast-moving technological change—and that is before we feel the full impact of artificial intelligence on the sector.
I would like to probe the Minister. Yesterday, Sir John Whittingdale in the other place pointed out that
“it is six years since Ofcom said that there needs to be fundamental review of our media merger regime”.—[Official Report, Commons, 30/4/24; col. 165.]
I agree with him, and I ask the Minister whether the Government are actively considering such a review.
With the Media Bill now before this House, will the Government seek cross-party agreement on clarifying and strengthening our media ownership rules for the future? I see the noble Baroness, Lady Stowell, is in her place. She has already put down an amendment to the Media Bill which could take this forward, but I think it could be done much more comprehensively at this time. If we do not do it comprehensively at this time, we will find that we have another 20 years of drift and that we are behind the game. It is essential that we have in place protection from foreign influences and state players, while, as the noble Lord, Lord Bassam, emphasised, seeing sustained plurality in both ownership and opinion in a free press—as all sides of the House want.
The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)
My Lords, I should reassure the noble Lord, Lord Bassam of Brighton, that the Government do not always agree with the editorial line of the Telegraph either, but that is the point. The independence of the press, holding Governments of all colours to account, is why the Secretary of State has always taken this so seriously and used the powers available to her under the Enterprise Act in the way that she has. It is why, as I outlined in debates on the digital markets Bill, we have acted to put beyond doubt and make explicit the ability for her to act in this scenario following the concerns raised, not least by my noble friend Lady Stowell of Beeston, about the potential influence of foreign Governments over our newspapers.
I am grateful to both noble Lords, Lord Bassam and Lord McNally, for their comments and their welcome of the Statement. I am grateful to the noble Lord, Lord McNally, for recalling rightly the role that Lord Puttnam played in the legislative landscape, which the Secretary of State and her predecessors have been able to use in this important area.
The noble Lord, Lord Bassam, referred to the balance between taking action to preserve the freedom of press, which we hold dear as a cornerstone of our democracy, and attracting investment into the UK. We have always been clear, as have my noble friend Lady Stowell and others, that our actions in relation to the potential influence of foreign Governments are not prejudicial to our welcoming of foreign investment more generally in media businesses, and I am glad to have the opportunity to say that again.
The noble Lord, Lord Bassam, asked about consultation with trade unions. The Government will not be engaging with potential buyers or be involved in the sale process from this stage on. We have obviously been careful in the stages so far. From now on, it will be run by RedBird IMI alone. The Secretary of State made her decision based on the evidence provided by Ofcom and the Competition and Markets Authority, which issued a call for evidence and spoke to relevant parties. The unions could have made representations to both those bodies—whether they did or not, I do not know, but that is the appropriate way for views to be fed in. The noble Lord is right to refer to the people whose jobs and livelihoods depend on this. Some of them, who have jobs that allow them to write freely, have made those points, but there are many more people whose jobs in these important sectors are affected by it, which I am happy to acknowledge.
On timelines, RedBird IMI will now proceed with a sale of the call option. The details of that are not finalised, and it would not be appropriate for me to comment further on the next steps as they are a commercial matter. I will say, as the Secretary of State has, that she will monitor the outcome with a view to deciding in due course if she should take any further regulatory action under the Enterprise Act.
The noble Lord, Lord McNally, asked about our consideration of the media mergers regime more broadly. That work was already under way before this issue came to a head. We have taken the action that we have in the digital markets Bill. That action continues, and we will have more to say on that, not least during our debates on the Media Bill. I know that he and others will rightly use this as an opportunity to return to these matters.
Baroness Stowell of Beeston (Con)
My Lords, I will pick up on the theme of timescales. I am grateful to my noble friend for the answers he has given to the noble Lords, Lord Bassam and Lord McNally, because they cover some of the issues I wanted to ask about. Could my noble friend also tell us what the expectation is for the Government to bring forward the secondary legislation that covers the carve-out for legitimate indirect foreign state investors, such as sovereign wealth funds? That is important in providing clarity for prospective buyers. This has already been said, but it is worth saying again: in raising this, I am very conscious that, in meeting our essential objective of a sustainable future for our free press, we should ensure that there is a proper channel for inward investment into the media industry. If my noble friend could give an update, that would be helpful.
Lord Parkinson of Whitley Bay (Con)
Many of the provisions we have made in the digital markets Bill require the Bill to receive Royal Assent, which I hope it will very soon, and they will come into force then. Once that has happened, we will be able to bring forward the measures we have committed to via secondary legislation. I will be writing in the coming days with a bit more information about that and about the consultation process on some of the points my noble friend raised, and we discussed in debates during the passage of the Bill. I will write to all noble Lords with further information about that very soon.
Lord Stevenson of Balmacara (Lab)
My Lords, the questions so far have focused on the intersection between this and the previous regime, which was established, as noble Lords have already said, by Lord Puttnam and his Enterprise Act—it was not exactly his; it was the House’s Enterprise Act, and it was published by a Government we were proud to be part of. That has stood the test of time, but I am afraid time is accelerating. We are now in a situation with a rather hard edge.
I am grateful to the noble Baroness, Lady Stowell, whom I worked with on the amendment we eventually put through, which will also be referred to within the forthcoming digital media Bill. However, that provides an absolute block against further foreign ownership; it is not just ownership, but interests in the freedom of the press and the plurality of it. Of course, there are other issues, which under the old regime would be considered, including those looked at in detail by Ofcom and the CMA.
I want to pick up on the exchange the noble Lord, Lord McNally, quoted, between the Secretary of State and John Whittingdale. In response to his question about whether these things need to be brought forward and accelerated, she said that she was
“looking at whether online news should be included in the scope of Ofcom’s powers ”.—[Official Report, Commons, 30/4/24; col. 165.]
I rather had the view that Ofcom had those powers. Could the noble Lord explain a little bit where he sees a gap and, if so, given what he said about timescales, whether we can look forward to the gaps being filled in? That seems to be a very important part of it, in the context of us needing to look more widely at what we want out of a free press, without reflecting government intervention and recognising that plurality is one of the main concerns. There are other bidders for the current holdings in the Daily Telegraph, one of which is a media interest. I wonder if the Minister would like to opine on that.
Lord Parkinson of Whitley Bay (Con)
The noble Lord’s question gets to the heart of an important distinction: there are newspapers that have websites, there are websites that are news providers, and there are online services that are not principally news providers but from which people increasingly derive their news. It is right that we look at all those things. He is right that the Communications Act 2003 has served us well for the last 20 years but, as we said in our debates on the Online Safety Act, it was written at a time when the internet was in its infancy and did not look at it. Of course, we touched on that in the debates on that Act and will return to some of the points in the Media Bill. We will shortly consult on expanding the existing media mergers regime and the foreign state ownership provisions to include online news websites, and we will touch on other matters when we discuss the Media Bill.
Baroness Bottomley of Nettlestone (Con)
My Lords, it has been a long time since 1855 and the start of the Telegraph at the time of the Crimean War and when David Livingstone found the Victoria Falls. Can the Minister tell us how many owners the Telegraph has had in that time? He may wish to write to me. It was started by Arthur Sleigh as a way of airing personal grievances against the future commander-in-chief of the British Army, Prince George, Duke of Cambridge. We should have a sense of proportion. I thought Rupert Murdoch, Roy Thomson and Conrad Black—the noble Lord, Lord Black of Crossharbour—did not have British passports, and there was Max Beaverbrook and many others, so this is not something new.
However, I respect the way the Government have acted fast to block a loophole. I pay particular tribute to my noble friends Lady Stowell and Lord Forsyth. In my day as Secretary of State, it was my noble friend Lord Inglewood who handled all the impossibly complex issues around media ownership. The Lords questions were always so much more difficult than those in the Commons, so I could simply sail through. I believe that it is extraordinarily important for there to be transparency about media ownership—so can the Minister inform us who the real owners of the Jewish Chronicle are?
Lord Parkinson of Whitley Bay (Con)
I will have to write to my noble friend on that and to give a precise number of owners of the Daily Telegraph since 1855, and of the Spectator, which is linked to this and older still. She is right to refer to a number of the foreign owners that there have been. We have made the distinction throughout between foreign Governments and foreign investment; it is important to underline that again. We have no problem with foreign investment in our media businesses, just as in so many other areas of our economy. The problem raised by my noble friend Lady Stowell of Beeston and a number of others was foreign government interference. They made it clear that they would have as much of a problem with the Government of the United Kingdom having influence over newspapers in this country. However, it remains true that the Daily Telegraph is the only newspaper that has produced an editor who also sat in Cabinet: Bill Deedes. It has a long history of representation in your Lordships’ House and the fine line between politics and the media, but it is important that we maintain its independence so that it can continue to hold Governments to account.
Baroness Bottomley of Nettlestone (Con)
My Lords, I apologise—I have received a text from the Father of the House of Commons, who says that I never declare my interests. For the past 10 years, I have been an unremunerated trustee of the Economist newspaper, where we went through a change of media ownership, which we took extremely seriously. I am delighted to tell the House that the Economist is as flourishing today as ever it was.