To ask Her Majesty’s Government, in the light of the recent News Corporation bid for full ownership of BSkyB, what assessment they have made of the legislation relevant to the bid; and what deficiencies in the legislation they have identified.
My Lords, the News Corporation bid for BSkyB raised a number of issues in respect of the existing media ownership regime. The Secretary of State will consider these issues, alongside any others and the recommendations from the Leveson inquiry, as he undertakes the communications review.
My Lords, does the Minister accept that there is general concern across the House about the adequacy of the current legislation? Does she also accept that the provisions of Section 58(3) and (4) of the Enterprise Act were created to enable the Secretary of State to amend the conditions in Section 58 if he or she felt that the need arose? In those circumstances, will the noble Baroness tell us why the Secretary of State refuses to take advantage of Section 58(3) and (4) to ensure that in future, if there is a fundamental mistake, misrepresentation or act of bad faith, advantage cannot be taken of the same?
My Lords, yet again the noble and learned Baroness raises a very technical and important point. This follows our extensive correspondence about Section 58(3) and (4) of the Enterprise Act 2002, all letters relating to which have been placed in the Library. With all due respect to the noble and learned Baroness, Lady Scotland, we may not agree on specific points, but I want to clarify that there is already a requirement on Ofcom to make certain that anyone holding a broadcasting licence is and remains a fit and proper person. I again stress that this is an ongoing requirement and not one limited just to a merger situation. I am most grateful to the noble and learned Baroness for raising this important point again and we will consider it. The Secretary of State is not refusing to act; he will bring this up at the Communications Bill committee while also awaiting the results of the Leveson inquiry.
My Lords, I would like to be able to give a more positive answer to my noble friend Lord Fowler but, as he and many noble Lords know only too well, we are at present having sensitive discussions. He is aware, too, that there is new legislation in the pipeline and we will be receiving a new communications Bill during this Parliament. However, I agree with him, as does the Secretary of State, that too much political consideration has been taken, and as a result the Secretary of State said on 14 September at the Royal Television Society conference that he was looking at whether we should have the same approach for media plurality law as we do for competition law. It could be better for these decisions not to be taken by politicians, as my noble friend so rightly said, and we are exploring this option. These are early days and no decisions have been taken. As I said, we will consider the recommendations on this.
My Lords, why have Her Majesty’s Government refused to use Section 58(4) of the Enterprise Act to fill the gaps that were clearly identified during the BSkyB bid?
My Lords, I am afraid that I cannot remember which section the noble and learned Baroness was talking about, but we are fully aware of what she asked. The point was made by Ofcom that media plurality public interest tests can be triggered only by merger and therefore do not cover growth, which is the area that she was talking about.
The Prime Minister announced that there will be an inquiry in two parts, which is very important, and we hope that it will look into all those details and report back, I think, within a year.
My Lords, the noble Baroness has indicated that cross-media ownership is going to be looked at by the inquiry, but does she agree that it is of vital importance, now that we have identified material flaws in the Enterprise Act and the Communications Act, that we should now move swiftly to cure those flaws by taking advantage of the negative resolution procedure under Section 58 and amending the grounds upon which a notice can now be issued?
My Lords, this will be covered exactly by part one of the inquiry in due course.