Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2025

Debate between Lord Robertson of Port Ellen and Lord Forsyth of Drumlean

Tuesday 22nd July 2025 Lords Chamber

[Lord Forsyth of Drumlean (Con)]

As always, my noble friend makes an excellent point, but it takes me slightly off the subject. I am kind of arguing that these procedural arguments are trounced by the fact that what is being done here is that primary legislation is in effect being amended by secondary legislation—to which, as he says, we cannot make an amendment. That is completely wrong. If we allow this to go forward, there will be other examples. This is the Executive thumbing their nose at the Parliament. This is the Executive taking power.

I believe that these regulations abandon an important principle. In her introduction, the Minister deftly avoided and elided the suggestion that investment was needed from foreign Governments. I have no objection to national wealth funds. Indeed, we amended the legislation, and the 5% had nothing to do with foreign Governments. As I recall, it was introduced to allow the Norwegian pension fund to be able to continue its existence. That was an exception to the rule, necessary because of the nature of those funds. Now we have regulations that allow 15% to be held by foreign states; that is what is at stake here.

Notwithstanding the powerful advocacy from my noble friend Lord Black for the Daily Telegraph, this has nothing to do with the Daily Telegraph. This is about a general principle that foreign Governments could take a stake in our newspapers and other media assets. When I say that it is nothing to do with the Daily Telegraph, I am slightly suspicious, just to take my noble friend’s point, that we are being asked to do this at such speed, in such a hurry. It is nothing to do with the Daily Telegraph bid, I am sure. Why did the Government not just withdraw the amendments and table new ones, which we could discuss at length in the autumn? Could it be to do with some other business going on with the Daily Telegraph? I may be cynical, and perhaps I am being unfair, but it feels like that.

I took the liberty of sending to colleagues—I promise not to do it very often—an article written by Fraser Nelson, whom I hold in the highest regard as a political journalist. I have circulated it to a number of colleagues. It tells the inside story from his ringside seat of what has been going on with the purchase of the Daily Telegraph. I commend it to noble Lords because, if they read that article, they will certainly vote for the amendment in the name of the noble Lord, Lord Fox. It is completely unacceptable that our parliamentary procedure should be overwritten and that we should create an open door for foreign Governments to get into our media services to meet a particular bid.

The remarkable thing is that when you ask the Ministers why they are making this change, they say that it is nothing to do with the Daily Telegraph—it is because they had a consultation exercise. As the noble Lord pointed out, they had all of four people responding to this consultation exercise, which made them change their minds. Who were the people who responded to the consultation? They actually said that they were not going to tell us—it was going to be kept secret, because it was so embarrassing to discover that it was the newspaper owners themselves.

Of course, it is always very dangerous to cross newspaper owners, especially if you are in politics, which is why Fraser Nelson is to be commended on his excellent article today. If we have foreign Governments owning newspapers, as opposed to foreign investors, there will be a conflict of interest between our journalists and their proprietors, because our journalists might want to write unpleasant things about some regimes that may or may not be allowed to own the newspapers. For this House, if it is a choice or conflict, which are we going to support, the freedom of the journalists or the financial interests of the proprietors? There can be only one answer: we have to support the freedom of the journalists, even if they do not always reciprocate in respect of this House.

There is one further point I would like to make, and it is about RedBird. I do not have a clue where RedBird’s money is coming from; it is not disclosed. How can we possibly feel comfortable with that? I know that the noble Lord, Lord Alton, who has been so spectacularly successful in arguing in this House for freedom, not just in this country but all over the world, has grave concerns about the relationship between RedBird and the Chinese Government at the highest level. I know nothing about RedBird, and therefore I feel even more despairing that the Government should be bringing forward these regulations, instead of the Secretary of State having by now instituted for the MMC to carry out an inquiry into precisely those matters.

It is with great pride and pleasure that I shall support the Liberal amendment, not because it has been made by the Liberals, although I have huge respect for the noble Lord, Lord Fox, but because I believe that he is speaking for the whole House as it was before the election, when almost unanimously, without a vote, we upheld the principle, which these regulations seek to undermine, that foreign states should not be allowed to own newspaper assets in this country.

[Lord Robertson of Port Ellen (Lab)]

My Lords, last year I went to the Department for Culture, Media and Sport with the noble Baroness, Lady Stowell, in a small delegation to make representations about the lack of any regulation at that time to prevent foreign Governments buying stakes in British newspapers. In the subsequent debate I certainly supported her view, and I liked very much what she has said today. The consultation may well have produced only four newspaper contingents giving their views, but a lot of other people have given a lot of thought to it in the meantime, as I have.

The question for the House today is whether we accept the compromise of 15%, higher than 5% but lower than the 25% that would have given the statutory controls, or go for a fatal amendment, getting close to what would be regarded as the edges of the constitution. I think that the Government have given a fair account, and I have discussed it and debated it at the same time. I have changed my mind. I think the safeguards that are available and the 15% are reasonable, and I believe we should therefore vote against the fatal amendment.