Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2025
Debate between Baroness Twycross and Baroness Stowell of Beeston(1 week, 2 days ago)
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Baroness Stowell of Beeston (Con)
If the Minister is going to come back to it, I will happily sit down, but I asked her a question about those new notification requirements in the draft regulations yet to be made, and whether the Government would consider my recommendation that the Secretary of State be required to notify Parliament on a twice-yearly basis if she receives any such notifications, and about the actions that she has taken as a result. Is she able to give me a response to that?
Baroness Twycross (Lab)
That is not in my speech, but I have an answer for the noble Baroness. We think that it is a reasonable suggestion. We need to work out how we can do that. There was a suggestion, for example, that it might require primary legislation. Obviously, that feels a little bit heavy-handed in terms of where we would want to get to. If the noble Baroness is content, I will come back to that. We think that it is a good point and it is worth doing, but I am not able to commit until we have clearer legal advice on how we could achieve that.
Going back to the other points, we have listened carefully to the concerns raised by noble Lords. I thank many noble Lords for the time that they have taken to meet me and the Secretary of State as well as officials. On the new regulations that we put out for consultation on 16 July, we have committed to change the legislation to eliminate entirely the risk that was identified by the noble Baroness, Lady Stowell, and others, and to backdate this change to 13 March last year, which is the date on which the foreign state influence regime came into effect. I give noble Lords an absolute commitment that we will lay regulations in the autumn. I am not allowed to say that we will do it by the end of October; I am allowed to say that we will aim to do so by the end of October.
Some noble Lords queried the difference between sovereign wealth and government control. I want to be explicitly clear: for the avoidance of doubt, this is not state ownership. It is not about Governments owning or influencing our media. We do not want that to happen either. The term “state-owned investors” refers to a narrow group of organisations that will need to be different and distinct from the Government who sponsor them. Foreign Governments will not be allowed to hold a direct stake. Key is the requirement that they make or manage investments, including international investments, as their principal activity. I agree with the point made by the noble Lord, Lord Udny-Lister, that this is not necessarily about influence. I give way—
UK Newspapers and News Magazines: Foreign Investment
Debate between Baroness Twycross and Baroness Stowell of Beeston
Baroness Stowell of Beeston
To ask His Majesty’s Government when they intend by regulations under Schedule 7 to the Digital Markets, Competition and Consumers Act 2024 to provide exemptions for certain funds associated with foreign powers, such as sovereign wealth or public-sector pensions funds, to invest in UK newspapers and news magazines.
The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)
My Lords, the Government are clear that foreign states should not be permitted to influence the policy or operation of UK newspapers and news magazines. Exceptions to the new foreign state intervention powers in the Enterprise Act are required to permit sovereign wealth funds, public sector pension funds or similar to invest up to strict limits. As I mentioned to the noble Baroness in our previous debate on this, we are carefully considering responses to the consultation published by the previous Government. We hope to publish a response to that very soon and lay the SI shortly after.
Baroness Stowell of Beeston (Con)
My Lords, the Minister will not be surprised that I am disappointed that the department has not provided her with any more information than that which she gave us last time. If the Minister is not able to tell us when the Government will bring forward these important regulations—they are important to the whole news industry and to the sale of the Telegraph—I must ask her why they have not done so. It is not a question of time—they have had eight months since the consultation closed. We are left to assume that the Government are prioritising the sensibilities of a foreign Government, who do not share our commitment to press freedom, over the news industry, the importance of press freedom and the survival of one of our national newspapers. I ask again: could the Minister please tell us why the Government are not acting in line with the intentions of Parliament when we legislated last year to ensure the financial sustainability of the news industry and to protect press freedom?
Baroness Twycross (Lab)
The purchase of UK newspapers and news magazines by foreign states, as the noble Baroness will be aware, runs the risk of eroding trust in the press. We agree that it is right that the UK has explicit protections in relation to this. Since the consultation closed in July last year, DCMS Ministers and officials have been considering the responses carefully. The consultation raises complex issues and involves multiple interests across government. We are committed to considering this carefully and ensuring we understand the implications of such changes, including on the industry. It is important that we get this right.
Telegraph Newspapers
Debate between Baroness Twycross and Baroness Stowell of Beeston
Baroness Stowell of Beeston
To ask His Majesty’s Government whether they plan to intervene to force a sale of Telegraph newspapers, in accordance with Chapter 3A of Part 3 of the Enterprise Act 2002, to prevent the ownership, control, or influence of a foreign power.
The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)
The public interest intervention notice on the Telegraph sale that was issued by the previous Government is still in place. This means that the Culture Secretary has to make decisions on this in a quasi-judicial capacity, and it would therefore be inappropriate for me to comment on specifics. The Telegraph has a long and proud tradition as a valued national newspaper, and the Government are committed to seeing that continue and the newspaper thrive.
Baroness Stowell of Beeston (Con)
My Lords, it is a year since this House voted to put beyond doubt the possibility of a foreign Government or power owning a British newspaper, yet ownership of the Telegraph remains unresolved. The newspaper continues to function, and all credit to those involved, but the situation is unsustainable because the business needs the freedom to move on. I hear what the Minister says, but after all this time, when there is no sign of a deal, can she tell us how long the Government intend to wait before using their powers to intervene and force a sale, however regrettable such an intervention would be? When will the Government bring forward the secondary legislation to provide a capped exemption for indirectly controlled foreign state investment funds, which is important to the sustainability of all parts of the news industry?
Baroness Twycross (Lab)
I hear the frustration from the noble Baroness. I know she has been campaigning on this for some time. The Government have not issued a foreign state influence notice because RedBird IMI has signalled its intention to sell in compliance with the new law prohibiting foreign state ownership of newspapers, so the Government are allowing it to conduct the sale.
On the SI to which the noble Baroness referred, there has been a general election in the interim since the legislation was passed by the previous Government. Ministers recognise the high importance of foreign states not being allowed to influence the policy of UK newspapers, but there should be a balance to encourage investment into the press sector. Therefore, we are carefully considering a response to the consultation. We hope to publish a response very soon and lay the SI shortly after that.
BBC: Impartiality
Debate between Baroness Twycross and Baroness Stowell of Beeston
Baroness Twycross (Lab)
The BBC, as I said in my initial Answer, has a duty to provide accurate and impartial news and information. I am sure all noble Lords would agree that that is particularly important when it comes to coverage of highly sensitive issues, such as the conflict in Gaza. The BBC is editorially and operationally independent and, therefore, decisions on its editorial line are for it to take. Of course, the BBC has upheld complaints against its own coverage of the Middle East, including for falling below standards of accuracy in its reporting. It is then for Ofcom, the independent regulator, to ensure that the BBC is fulfilling its obligation to audiences as outlined in the charter.
Baroness Stowell of Beeston (Con)
My Lords, I highlight for the Minister, and indeed the whole House, a report called The Future of News, published by the Communications and Digital Select Committee of your Lordships’ House earlier this week. In that report, our inquiry found a growing risk of a two-tier media environment influenced by a combination of technological change and a growing number of people turning away from news because of a lack of trust. The question of audience trust is a matter for the media, including the BBC, but our report has some clear recommendations for the Government. Will the Minister please assure me that she will look at this report and give our recommendations serious consideration, particularly those that we highlight on competition issues, copyright and SLAPPs?
Baroness Twycross (Lab)
I look forward to reading the report that the noble Baroness refers to. The Government recognise that society’s shift online presents new challenges and opportunities to news media as well as to the provision of trustworthy information. That involves the issues around trust, which the noble Baroness referred to. I will ensure that there is a response to the report and look forward to debating it when it comes before your Lordships’ House.