BSkyB

Lord Marks of Henley-on-Thames Excerpts

Tuesday 12th July 2011 Lords Chamber

[Baroness Rawlings]

My Lords, I am grateful to the noble Baroness for the prior notice of this question. She is absolutely right; it is important to realise that the fit and proper person test is not triggered simply by the proposed merger. Ofcom has an ongoing statutory duty to make certain that the holders of broadcasting licences are and remain fit and proper persons. This is a matter for Ofcom, which is taking its responsibility in this area very seriously and is already in touch with the relevant authorities. The Government have no role in its decisions. No doubt the Competition Commission will also want to consider whether Ofcom’s investigations raise any further points relevant to its assessment of the effect of the merger on plurality.

[Lord Marks of Henley-on-Thames]

My Lords, are the Government entirely satisfied that their hands are now tied to the issue of media plurality, despite News Corporation’s failure to disclose its own nefarious activities? If so, does Section 67 of the Enterprise Act need urgent amendment? Might a way forward be to encourage Ofcom—there is no reason why it should not be so encouraged—to consider the fair and proper person test for continuing to hold a broadcasting licence under the Broadcasting Act 1990 as soon as the current investigations are sufficiently complete for it to form a view, and to delay a final decision on the acquisition until then?

[Baroness Rawlings]

My Lords, my noble friend makes some important points. I am sure that the Government will look at several amendments. The Secretary of State has returned this matter to the Competition Commission, and the review can take between 24 and 32 weeks, depending on the complexity of the case. The Competition Commission, confusingly for some, does not deal with actual competition. The European Union decided on 21 December 2010 that there was no competition problem. The Competition Commission’s decision, as my noble friend Lord Marks rightly says, will be based purely on plurality.