Media Advertising
Debate between Lord Sharkey and Baroness Chisholm of Owlpen
Baroness Chisholm of Owlpen
There are a lot of questions for me to answer there. As far as funding is concerned, the ASA is indeed independent. It is funded by levies on the advertising spend, which seems fair since it is the advertisers that it is regulating. It is collected at arm’s length by two bodies—the advertising and broadcasting standards boards of finance—to maintain the independence of the system, ensuring that the ASA decisions are not influenced by those who may or may not be funding the system. Also, the board is fully independent, chaired by the noble Lord, Lord Currie, who I believe is here today, and two-thirds of the council members are independent.
Lord Sharkey (LD)
My Lords, last year Google paid UK tax of £36 million on £5.6 billion in turnover. For Facebook, the figures were £5 million of tax on £1.8 billion in turnover. The Minister will know that the EU has proposed a 3% turnover tax to stop this gigantic tax injustice. Does she agree that it would be better to use statutes to make internet giants pay fair taxes than to amend the status of the ASA, which, as she says, is an exemplar of self-regulation? A Lord Keen answer would be okay.
Baroness Chisholm of Owlpen
Certainly, online advertising takes up over half of all the ASA’s work. The self-regulating system allows for flexibility to take on additional responsibilities. The ASA has also developed new sanctions to help tackle harmful, offensive and misleading advertising contact online where there is no traditional gatekeeper. I may have to get back to the noble Lord on the question of tax, which is slightly beyond my brief.