Code of Recommended Practice on Local Authority Publicity

Lord Fowler Excerpts

Wednesday 30th March 2011 Lords Chamber

[Lord Fowler]

My Lords, the noble Lord’s fierce denunciation was backed by the serried ranks of his fellow Peers sitting tightly behind him. As my noble friend said, the changes in the rules on local authority publicity that affect council newspapers were a manifesto pledge, but I do not intend to argue it on that ground. I declare an interest as an ex-journalist. I am a life member of the National Union of Journalists. In my view, this debate raises something absolutely fundamental. The role of the regional and local press is to report independently on the news, to owe no obligation to any vested interest and not to take any line unquestioningly from officialdom. They need to be fair and above all they need to be independent in judgment. I do not claim for a moment that those values are always maintained, but I do claim that the regional and local press have a proud record in this country of exposing injustice and, at times, corruption. That is very much in the local public interest and should be maintained.

We deceive ourselves if we believe—slightly as the noble Lord suggested—that local councils, whether they are Labour or Conservative, have the same interest and join together in applauding the role of the free press. They want their policies to be supported, they often resent criticism, and they are not always particular in the means that they use to have their way. I give one example from my own experience in Birmingham, where I was the chairman of Midland Independent Newspapers. We published the Birmingham Evening Mail, apart from other newspapers. It was a management buyout and our policy was that the editor edited and the board simply did not get involved in editorial policy. Sadly, the Labour council objected to the reporting on local government issues and the leading articles of the editor, Ian Dowell. The result was that they withdrew all their public notice recruiting advertising from our evening paper, started their own local paper and handed out the print content to our commercial competitor. Let us recognise that not all councils recognise and appreciate the importance of free comment.

We should also recognise the development of local authority newspapers, to which my noble friend referred. These again have one main purpose, which is to promote the policies of the council in power. It has nothing to do with independent journalism. Their role is certainly not to investigate and inquire into what is going on in the local council. They would get into terrible trouble if they tried to do that. This is bad enough, but, by exploiting their local monopoly position, they attract to themselves advertising that is necessary for any independent newspaper to survive. Independent local newspapers are already impacted, but this simply puts the final nail in the coffin.

I give one example of what can happen from my own local council paper, the Hammersmith and Fulham News, which writes:

“YOUR H&F NEWS IS INSIDE THIS ADVERTISING FEATURE”.

The advertising feature—of a Thai restaurant—is spread over four pages. Inside, there are no fewer than 44 pages of houses and flats for sale by local estate agents. There is a full-page advertisement for the Metro Bank and other advertisements for double glazing and carpet companies. Perhaps this is an exception; I do not know. I hope that my local council will perhaps change its policy. The Kensington local paper—this might be the first time that we agree—actually pursues its policies in an extremely sensible manner. It does not take advertising or do these kinds of things.

Too often, councils try to take over the role of local independent newspapers but without the necessary qualification of independent judgment. They use their local monopoly power to take advertising when they cannot conceivably call that advertising council business. They certainly help to drive out of business genuine local papers and prevent new independent local papers developing. No one in their right mind would try to take on a monopoly advertiser in their own local area. Perhaps worst of all for me, an ex-journalist, they are training a new generation of public relations executives who take press releases and send them out. This country does not need more public relations people. We need a few good, honest reporters to report the news at both national and local level.

Frankly, I am amazed that the noble Lord is putting his opposition to this. I am totally amazed that he is speaking from the Front Bench on this. In the few minutes that I have been speaking, the crowds behind him have not welled up either. There seems to be a remarkable lack of enthusiasm on his own side for the case that he is putting. This is a fundamental issue. This House and this country should be about encouraging free and good local independent journalism. The council newspapers that we see at the moment are not examples of that. The Government are entirely right in the action that they have taken.

[Lord Shipley]

My Lords, first, I declare my interest as a member of Newcastle City Council. Our democracy is underpinned by four principles: the right to vote, freedom of speech, an independent judiciary and a free press. In the context of having a free press, I agree entirely with my noble friend Lord Fowler. The Government should not be the publisher of newspapers and—for that reason—nor should local government. This is not what governments exist for.

The Code of Recommended Practice on Local Authority Publicity was introduced to prevent party political literature masquerading as official council newsletters. In my time, I saw enough of them to know that a code was necessary and that some limitations needed to be applied. I continued to support that position and the need for a code to exist. However, we should be aware that there are already restrictions in the existing code. The current one says that local authority publicity should seek to raise public awareness of the services provided by the council and the functions it performs, explaining to electors and council tax payers the reasons for particular policies and priorities and enabling them to have an informed say about issues affecting them.

As for subject matter, councils have a very wide range of statutory powers to produce and circulate publicity and to explain statutory matters to the general public, as the noble Lord, Lord Beecham, pointed out. Some of those powers relate specifically to the work of the council whereas others are discretionary, enabling the council to publicise matters which go beyond its primary responsibilities. However, in the context of localism, the drive to localism and the Localism Bill, it is very hard to see why councils should in future be restricted from pursuing a wider agenda in terms of public service provision in their localities. Indeed, councils should always seek to ensure that publicity is relevant to their functions and does not duplicate unnecessarily the publicity produced by other agencies, which of course includes newspapers.

It seems to me that the existing code is pretty reasonable, which begs the question of exactly why the changes are being introduced. Some of them we can agree with. I agree entirely with the view of my noble friend Lady Hanham on lobbyists. However, it is claimed that in recent years there has been a growth in the number and frequency of council newsletters and publications, and that 92 per cent of councils publish such newsletters. I think that that is a very good thing. I am very surprised that 8 per cent can deliver their statutory functions and not produce some kind of newsletter. In the context of localism, that is the direction of travel. If the general public do not like what is being said in these publications, they can vote out the councils at the ballot box.

I accept that some council publications have become like commercial newspapers, although I am not aware of them being issued weekly; but the vast majority of council publications are simply not like that. However, there is an issue around advertising and commercial newspapers, and concerns have been expressed about frequency of publication and content. Councils are constantly being encouraged to earn income. Therefore, it is no surprise to learn that councillors of all parties have encouraged council newsletters to accept advertising to pay for their distribution and other costs. However, as the noble Lord, Lord Beecham, reminded us, only 1 per cent of councils have a weekly publication; most print quarterly. At the moment, one-third have no advertising at all. Therefore, the jury is out on the evidence base for saying that council magazines pose a threat to the local newspaper industry. In principle, I believe that councils should not produce newspapers. However, given that £40 million is spent by local councils on planning notices, even if all councils opted for quarterly publication, it would make little practical difference to the situation. Therefore, I do not think that there is a great deal of difference between having four or six publications. I do not understand why it is deemed necessary to legislate in this way with this code.

I turn to what I think is an absurd proposal. The impact assessment contains various options, including an option to do nothing. It states:

“Option 1: Do nothing. This would mean that local authorities would be able to continue to produce free newspapers as frequently as once a week”.

In the current financial climate, I doubt that that would be practical. We should note that 99 per cent do not do so. The impact assessment says that local authorities would be able to,

“emulate the style of commercial newspapers”.

I accept absolutely the point made by my noble friend Lord Fowler in that regard. The document further states that local authorities would be able to,

“include material additional to facts about the council and its services such as crosswords, horoscopes and competitions that do not relate to the business of the authority”.

Is it really the job of the Government to stipulate in the code whether crosswords, horoscopes and competitions should or should not be published in a quarterly council newspaper? Surely the whole thrust of localism is that we should let councils get on with it.