Media: Ownership

Lord Parekh Excerpts

Thursday 4th November 2010 Lords Chamber

[Lord Parekh]

My Lords, I am sorry for that prelude to my speech. I congratulate the noble Lord, Lord Puttnam, on securing the debate and I thank him for introducing it with the clarity, wisdom and eloquence that we have come to expect of him.

In the UK, the national newspaper industry is run by eight companies, one of which—namely, News Corporation—has 35 per cent of the national newspaper market. This is likely to rise to about 43 per cent in the next three or four years. It now wants to buy the 61 per cent of BSkyB which it does not currently control. I am glad that this has been referred to Ofcom and that we will be able to see what the outcome is, but I am a little worried that the criteria to be used by the Secretary of State may not be conducive to the outcome that we have in mind. That simply goes to show how important it is that we are clear about the criteria that the Secretary of State or Ofcom should employ in deciding whether to sanction a particular merger or venture. One sees an even more marked concentration of ownership in the regional and local press. Four publishers control almost 70 per cent of the market share.

This raises two questions. Why does media ownership matter and is it enough? Media ownership matters because, as the noble Lords, Lord Puttnam and Lord Gavron, pointed out, it affects the quality and range of views available to the public and the health of our democracy. Owners shape news, and they decide what becomes news and why it is important. They also shape views—how to interpret that news and how to respond to it. They do so directly by intervention as well as by appointing like-minded editors, and rewarding and promoting journalists who hold the right kind of view. They might also use newspapers to settle personal scores or to discourage certain types of investigative journalism. Even if their control is benign, profit is the sole consideration and public interest becomes a casualty. For all these reasons, media ownership is important and there has to be a strict regulatory framework.

But my question goes deeper than this. How plural should media be? Let us suppose that, instead of three, we had 25 people owning media, or 100 or 200. Would that necessarily achieve the objectives that we have in mind; namely, plurality of views and dissent, and the health of our democracy?

In a free-market economy, you cannot control the ownership of the media beyond a certain point. Having many owners does not necessarily guarantee quality journalism or an impartial press, because competition will tend to push people to the lowest common denominator. It can also take the form of informal alliances. There is also the danger that this various, multiple ownership might share a common cultural perspective and, therefore, not allow differences of view to emerge. Newsgathering can be poor because of competition. It can also limit investigative or specialist journalism.

In order to ensure that we meet those objectives, therefore, we must obviously control media ownership. But that is a necessary condition, not a sufficient one. What else do we need to achieve those objectives? I end by suggesting three. First, we must strengthen public service broadcasting. In this context, the BBC becomes critical, and it must be defended against subtle and not-so-subtle attempts to undermine its credibility. Secondly, we need greater media openness and transparency. The media rightly demand that politicians should be honest and transparent. They should be subject to the same standards. After all, although privately owned, they are a public institution and therefore publicly accountable. I suggest with some humility that there is no reason why the salaries of journalists or their political affiliations should not be disclosed or conflicts of interest when they write on certain issues. I see no reason why there should not be speedy redress for injured members of the public or a public explanation by editors and proprietors of how certain events have been covered.

Secondly, there must be public support for citizen or community journalism. This can be secured in a variety of ways, of which an industry levy is one. The IPPR has shown, for example, that a 1 per cent levy on pay TV operators such as Sky and Virgin Media would bring in £70 million. Those sums could be used to make sure that local newspapers do not close and to allow media start-ups by individuals and community groups.

Thirdly, we must encourage philanthropy. The Potter Foundation awarded a grant of £2 million to the Bureau of Investigative Journalism to promote investigative, not-for-profit journalism in the public interest. Charity law should be organised in such a way that the media are seen not simply as a political activity but as a charitable one, and tax relief should be given.