Oral Answers to Questions

Lord Watson of Wyre Forest Excerpts

Monday 26th July 2010 Commons Chamber

[Mr Tom Watson (West Bromwich East) (Lab)]

7. What representations he has received on the appropriateness of regulation of media ownership.

[The Secretary of State for Culture, Olympics, Media and Sport (Mr Jeremy Hunt)]

I have had no representations from anyone on cross-media ownership.

[Mr Watson]

If News Corp is successful in buying the remaining 61% shares of BSkyB, the control that it exercises over UK mass media will be greater than that of any individual in any other advanced industrial country, including Berlusconi’s Italy. The law in the US and Australia would prohibit such a takeover. Is the Secretary of State concerned about the lack of plurality of ownership in the UK media? What is the estimated tax loss if the merger takes place?

[Mr Hunt]

I cannot tell the hon. Gentleman what the estimated tax loss will be—I do not know whether there will be a tax loss. There are big tax gains from having a plurality of players in the British media market. The particular decision that he mentioned is a matter for my right hon. Friend the Secretary of State for Business, Innovation and Skills, who is responsible for determining whether to invoke the public interest clause about the merger. He will make a decision in due course.