Rupert Murdoch and News Corporation Bid for BSkyB

Debate between John Whittingdale and William Cash

Wednesday 13th July 2011 Commons Chamber

[Mr Whittingdale]

My right hon. Friend the Secretary of State acted on the basis of the advice that he received from Ofcom. The original advice was that he should refer the bid, but Ofcom then came back and said that the undertakings being given by News Corporation were sufficient and that there was no longer a need to do so. At every stage, he has acted on the advice of the independent regulator.

I want to say a few words about BSkyB, which has been an extraordinarily successful company. It has pioneered choice in television and introduced the personal video recorder, high-definition television and 3D television. It has recently passed the 10 million home mark. It has been incredibly successful. It is right that its ownership should be subject to very close scrutiny. I would also like to commend it on its most recent announcement of £600 million of annual investment in UK content, which will do a tremendous amount of good.

The test that my right hon. Friend the Culture Secretary put up to be examined was that of plurality. That is about Sky News. It is worth saying that throughout this saga, Sky News has displayed the same objectivity and independence in its coverage of matters concerning its parent company—or the company that sought to become its parent company—as it has in other matters.

[Mr Cash]

We heard earlier about the published terms of reference set out by the Prime Minister. We got them from the Library and they refer to a

“judge-led inquiry into phone hacking”—

but it is confined to the press. Would my hon. Friend, having been consulted and with his Committee meeting tomorrow, agree to look into these terms of reference? Does he agree that sound and visual media journalism has to be included to make the inquiry fully comprehensive?

[Mr Whittingdale]

I have not yet heard any suggestion that similar activities have been undertaken by television or radio companies, but, should that be uncovered, I have no doubt that the judge would request a broadening of the terms of reference to include it. The important thing is that the judge should follow the evidence wherever it leads. As I understand it, that is the undertaking that the Prime Minister gave.

Some have expressed the concern that Sky News might go the way of Fox News. Fox News is very successful, but I do not believe that it would ever succeed in this country. We have an entirely different climate. Nevertheless, that was the key issue under consideration when we examined plurality. However, the revelations over the course of the last two weeks have raised a much more serious issue—the “fit and proper” test and whether or not News Corporation meets it, not just in respect of its 100% ownership, but now in respect of its 39% ownership of BSkyB. That is something that Ofcom will want to consider, but I believe that Ofcom is correct in saying that it should act on the basis of evidence rather than allegation. These matters need to be pursued to the very end. We need to discover the truth, and if it turns out that very senior executives in News Corporation are involved in, or had knowledge of, what has been going on, that will raise questions about the fit and proper test. I have no doubt that Ofcom will pursue them.

It might take years for us to find the full extent of what has been happening and to get to the truth, but if that is what it takes, that is what we must do. This episode must never be allowed to recur. We need to find out the full extent of it. We will try to begin to uncover some of the truth on Tuesday, if those people are willing to appear before us, but this judicial inquiry and the police inquiry must find the truth.