Sky and 21st Century Fox: Proposed Merger

Lord McNally Excerpts

Thursday 29th June 2017 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I thank the Minister for repeating the Statement made by the Secretary of State.

Media plurality is a key finding and irrespective of any final decision of the Secretary of State, the Labour Party over the next 12 months will review media ownership rules in the United Kingdom. However, I warn the Minister that the problem with Murdoch’s undertakings in lieu, even strengthened ones during this process, is that they will became as meaningless as those he has given in the past. Just look at what happened to the guarantees of editorial independence for the Times and the Sunday Times.

If the current rules mean that James Murdoch can pass a fit and proper test, given everything we know about his and his companies’ behaviour over phone hacking and about Fox’s behaviour over the ongoing sexual harassment scandal in the United States, that says much more about the rules than it does about Mr Murdoch. It is clear that the rules need to be reviewed. Even if this Government will not do it, the next Labour Government will.

It has been reported that a spokesperson from Fox has said that the company is “confident” the merger will be approved based on,

“an objective assessment of the facts”.

But does the Minister not recognise that without Leveson 2 we still do not know the facts, and therefore in order to have a proper objective assessment this merger should not be approved without the findings of the second part of the inquiry?

Added to this, later this year another civil case will be heard against News Group relating to phone hacking, for which the judge has requested thousands of invoices for private investigators linked to the Sun, and James Murdoch’s own laptop. Given that phone hacking is very far from resolved, James Murdoch’s own conduct before and after the scandal broke is not clear, and neither is the reason why millions of emails were deleted by the company, how can we possibly allow this takeover to go ahead while this is hanging over them?

Finally, as regards influence on the political process, I would like to ask the Minister a specific question: what provisions does he believe exist in either the Data Protection Act or within the powers of Ofcom under the Communications Act 2003 to prevent the owner of what is at present Sky Broadcasting misusing the data it holds concerning the lives and preferences of 11 million British and Irish households in a manner that furthers its influence over the political process in either the United Kingdom or the Republic of Ireland? If no such protections are available, what assurances would the Secretary of State seek in this regard? The days when citizens of other countries can dominate our media markets while paying their taxes overseas have to end.

[Lord McNally (LD)]

My Lords, one of the advantages of this place is that there is a certain continuity. I have been speaking on, and dealing with, media matters for the last 20 years. I recall that at some point in the mid-1990s the then Press Complaints Commission brought in another charter on good behaviour. I remember talking to a very senior Times executive and asking, “What about this new charter? If you checked a story against the responsibilities under the charter and decided that it would be wrong to publish that story but the next day the Daily Mail led on it, what would happen?”. He said, “That’s easy. Rupert would fire me”. I agree with the noble Lord, Lord Collins: one has to read the book as well as look into the crystal ball in these matters, and the ability of the Murdochs to give assurances and then ignore them is well documented.

One thing that sticks in my mind is Mr Murdoch’s appearance before the Select Committee, at which he said that it was the “most humble” day of his life—a curious choice of words—yet now, a few years later, he and most of the gang who were accused of the most heinous crimes are back in place and moving forward. The reality is that the Murdochs are an ever-incoming tide. I appreciate that the Secretary of State needs to follow a quasi-judicial role and, my goodness, she is going to need the advice of the Minister at the Bench as she now tiptoes through that minefield, because the Murdochs always have some very expensive lawyers at hand. However, I hope she does not get involved in a game of poker in which it is said, “We’ll give you these assurances”, to which the answer is, “No, they won’t do”, and that is followed by, “Well, what about these assurances?”. Let us stick with this referral.

I look forward to reading the Ofcom justification of the “fit and proper” finding. One can assume only that the narrow legal determination of “fit and proper” in the present legislation is far too low, and I hope the Government will now look at the whole question of whether we need to strengthen plurality, public interest and the fit and proper person test in the existing legislation.

I join the noble Lord, Lord Collins, in saying that Leveson 2 is now essential. The Government put it in their manifesto, despite the previous Conservative Government having committed to dropping Section 40. The electorate said no. We should now proceed with Leveson 2 with all speed. There is also now a need to look at the powers of Google and the internet providers.

Finally, I am a little worried about the deadline of 14 July. That is only six days before both Houses rise for the summer. There is an old habit of various decisions being rushed out on the last day before a Summer Recess. Can we be assured that any decisions on this matter will be taken only when Parliament is in session?

[Lord Grade of Yarmouth (Con)]

My Lords—