Sky/Fox Merger

Lord Watson of Wyre Forest Excerpts

Tuesday 12th September 2017 Commons Chamber

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

I thank the Secretary of State for advance sight of her statement.

The Secretary of State has taken her responsibilities seriously, and I give her credit for that. I give her credit, too, for listening to the evidence before her, including new evidence submitted after she had announced her initial decision, and for changing her mind. I also want to praise my right hon. Friend the Member for Doncaster North (Edward Miliband), who has run a very effective campaign in this area. Dare I say it, but I think he leads the race for Back Bencher of the year for his campaign?

I welcome the Secretary of State’s decision—or, I should say, the fact that she says she is minded to make such a decision—to refer the bid on broadcasting standards grounds, as well as on media plurality grounds. This is the first time that a Minister in the current Government has ever stood in the way of what the Murdochs want—and, frankly, not before time. So well done, and as they say in the Black country, “She’s a good ’un.”

The Secretary of State has done everything we asked her to do—or almost everything. Her statement does in my view, however, reflect a failure on the part of Ofcom. In its first report, as she said, Ofcom said that there were

“no broadcasting standards concerns that may justify a reference”.

It has now admitted that there are, as she said, “non-fanciful concerns”. On that basis, she had to refer the bid, and she has done so. It should have been obvious to Ofcom, as it certainly was to all Labour Members, that concerns about the Murdochs were more than fanciful.

After all, the Murdochs have a long history of regulatory non-compliance and of corporate governance failure. Just last week, Fox recognised its own failure to comply with broadcasting standards when it pulled Fox News, which has breached Ofcom’s rules again and again, from the UK. Ofcom could have gone further, too, on the “fit and proper” test. It decided that a post-merger Sky would pass, despite clear evidence of impropriety and failure of corporate governance both at 21st Century Fox and at News Corporation.

Such failures include the phone hacking scandal, which still has loose ends that are yet to be tied up. Just last week, News Group settled 17 cases related to allegations of criminality at The Sun newspaper, ensuring that James Murdoch will not have to appear in court later this year. Those 17 cases are just the first tranche of 91 new claims of phone hacking and illegality in obtaining information against The Sun and News of the World. This story is far from over, even if we will read little about it in the pages of the Murdochs’ newspapers, and all these cases are claims against a company that claimed for over a decade that there was no problem and that tried to move heaven and earth to prevent abuses from being uncovered. This is alongside the ongoing sexual and racial harassment scandal at Fox News, which is part of 21st Century Fox’s empire.

As I have said, the Secretary of State has done almost everything we asked her to do. The one thing we still want, and we have said this time and again, is that we need to get properly to the bottom of the scandals at the Murdoch empire—part 2 of the Leveson inquiry. She has now shot her fox with the Murdochs. She has burned her boats, and they already do not like her—I know what that is like—but that liberates her. Go on, Secretary of State, do the right thing: go ahead with Leveson 2.

[Karen Bradley]

I am a little unsure about whether I have been damned with faint praise. I do not know that I will ever again hear such good words from the hon. Gentleman across the Dispatch Box.

I want to repeat the point I made in my statement: I have made this decision on the basis of the evidence. I take my quasi-judicial role very seriously. I have looked at the evidence before me and considered Ofcom’s response to the further evidence that we put to it, and that is why I have made this announcement. I remind the hon. Gentleman that the “fit and proper” duty that he mentioned is a duty on the independent regulator. It is a responsibility of Ofcom as an ongoing duty. It will not end at any point but will be there for Ofcom to continue to consider for any holder of a broadcasting licence.

On the matter of Leveson, I will shortly come to the House with the responses to the consultation about it that we have carried out. The hon. Gentleman will perhaps understand that this summer has been fairly busy, with the need to review significant amounts of evidence.

I ask the hon. Gentleman to join me in condemning the campaign that has been run by some very left-wing activists. Some people spent the summer walking around my constituency wearing masks with my face and carrying big electronic A-boards. They not only pursued me around town, but actually went and found my family, who live outside my constituency, and protested there. I am taking this decision on the basis of evidence, not of any campaign of intimidation and harassment, and I hope he will join me in condemning those activities.

[Tom Watson]

rose—

[Mr Speaker]

I do not think there is a procedure for responding.

[Tom Watson]

On a point of order, Mr Speaker.

[Mr Speaker]

We do not normally take points of order in the middle of statements, but I am in a generous mood, and I will hear the hon. Gentleman if he is characteristically brief.

[Tom Watson]

I will be brief, Sir. I am very sorry to hear the allegations that the Secretary of State has made, and I promise her that I will go away and look at the evidence. If Labour party members are involved in this, we will deal with them. Let me say to her that I have been as sickened as she has been by the way in which our colleagues in this House have been targeted for doing their jobs. A heavier load is carried by our female colleagues, so let me make it clear: you can either be a misogynist or you can be a member of the Labour party, but you cannot be both. If she gives me the evidence, we will deal with this.

[Karen Bradley]

Further to that point of order, Mr Speaker.

Fox-Sky Merger

Lord Watson of Wyre Forest Excerpts

Thursday 20th July 2017 Commons Chamber

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

Mr Speaker, good morning to you. As this is the last day before the recess, I thank you and your staff for the welcome you have given my new colleagues who were elected in the general election.

I thank the Secretary of State for her statement. I am grateful to her for returning to the House before the recess to update us on progress—even if there is not much progress to update us on. The last day of term is sometimes called “Take out the trash day”. Well, this appears to be “Keep the trash in the office day”. Nevertheless, this is one piece of Government indecision that we welcome. It is right that the Secretary of State has taken her quasi-judicial responsibilities seriously. She will be aware that, whatever decisions she makes, there is a strong possibility of judicial review by one side or the other. No doubt that has influenced her decision to tread carefully and slowly, and we respect her for that.

The lawyers at 21st Century Fox have already written a somewhat intimidating letter to the Secretary of State, trying to bounce her into a decision. We know that that aggression is the Murdochs’ modus operandi; we have been on the receiving end of it in this House, and we urge the Secretary of State to keep standing firm. In particular, there is absolutely no need for the Secretary of State to announce a decision during the summer recess. Parliament must have the opportunity to scrutinise any decision she makes. It is not her job to operate to 21st Century Fox’s corporate timetable; it has to abide by the parliamentary timetable. She should demonstrate to the company that she, as an elected representative of the people, is in charge, not 21st Century Fox.

Last time the Secretary of State came to this House, she said that she was minded to refer the bid to a phase 2 investigation on grounds of media plurality, as she said again this morning, but that she was not minded to refer on grounds of broadcasting standards. She then said that she had invited representations on both grounds by last Friday. It is right that a phase 2 investigation on media plurality grounds goes ahead, but the broadcasting standards investigation should go ahead too. Compelling arguments for that have been made by my right hon. Friend the Member for Doncaster North (Edward Miliband), the right hon. Member for Twickenham (Sir Vince Cable), and the right hon. and learned Member for Rushcliffe (Mr Clarke). Does the Secretary of State agree that that is as distinguished a cross-party alliance as anyone can imagine? Does she also agree that it is absurd that Ofcom is currently refusing to meet my right hon. Friend the Member for Doncaster North so that he can share his concerns with it?

The truth is that the Murdochs have a history of regulatory non-compliance and of corporate governance failure, and that calls their commitment to broadcasting standards into serious question. Ofcom itself says that there are significant concerns about Fox’s approach to ensuring Fox News content compliance with the broadcasting code. We saw in the phone hacking scandal that senior employees and executives at News International failed to comply with the criminal law, with acceptable standards of journalistic conduct, and, frankly, with basic human decency. We see the ongoing sexual and racist harassment at Fox News in the United States, where very senior employees behaved appallingly over decades and nothing was done—evidence of what Ofcom calls “significant corporate failure”.

Of course, the best way to get to the bottom of this corporate failure would be to proceed with the inquiry that has already been promised and that is specifically intended to look into it—part 2 of the Leveson inquiry. Will the Secretary of State undertake today to get on and just do it? I note that, although the Conservative manifesto promised not to go ahead with Leveson 2, a recent parliamentary answer to me indicated that the Government are still considering the consultation on it. I hope that this is another of the Prime Minister’s many dropped manifesto commitments. It is not too late for the Secretary of State to do the right thing, and if she does go ahead with Leveson 2, she will have our full support.

The influence of the Murdochs on this Government is still a matter of serious concern. Only this week, in a letter to me, the First Secretary of State refused to deny that Rupert Murdoch had asked the Prime Minister to put the right hon. Member for Surrey Heath (Michael Gove) back into the Cabinet. I expected the allegation to be denied. It was not denied. We will be drawing our own conclusions from that. I have consistently—persistently—asked the Secretary of State to publish the minutes of the meeting between the Prime Minister and Rupert Murdoch in the US in 2016. Will she commit to do that now?

The Secretary of State now has the opportunity to demonstrate that we live in a democracy, not a Murdochracy. Will she now undertake to prove who is in charge by not making any decision until the House returns in September?

[Karen Bradley]

The hon. Gentleman asks a number of questions and I will attempt to address as many as I can in the time that we have; there were a number of questions there—I am sure he would agree.

I think it is worth my repeating that I am acting in a quasi-judicial basis under the Enterprise Act. We are also reflecting, in our behaviour as a Government, the recommendations of Sir Brian Leveson in his part 1 report, where he was very clear about the way in which Government should operate in relation to media mergers. We have been cognisant of those recommendations throughout.

One of the things that I am required to do under the Enterprise Act is to act without undue delay, in the interests of all parties. That is why I am here today to say that nothing I have seen so far has changed my mind, but I am going to look at all the representations that I have received, which are in the tens of thousands. Many of them are identical, I have to say, but they all need to be looked at, and I will do so in order to see what evidence they provide.

I was also clear that the Ofcom report on the commitment to broadcasting standards test was clear. It was unequivocal. There were no grounds on which I could refer. I am therefore looking at whether new, substantive evidence comes to light following my statement. I will ensure that I consider all the representations. However, in the interests of all parties, I will have to make sufficiently speedy progress in making a decision to ensure that we can deal with these matters in line with the Enterprise Act. That may mean I have to make a decision before Parliament returns, which is why I am in the Chamber today being as open and transparent as I can be. I want to ensure that I am as clear as I can be with Parliament and with colleagues about the situation.

The hon. Gentleman asked a question about the right hon. Member for Doncaster North (Edward Miliband), whose letter I had sight of this morning. As I understand it, the right hon. Gentleman has asked for a meeting with Ofcom to discuss its report on the fit and proper test, and I am surprised that Ofcom is not able to meet him to do so. The fit and proper test is not part of what I have to look at—the test under the Enterprise Act is different: it is about the commitment to broadcasting standards, not the fit and proper test. Ofcom has to undertake an assessment of whether a company is fit and proper on an ongoing basis. I am surprised that it is not willing to meet the right hon. Gentleman and other parliamentarians, but I am sure it will have heard my comments on that matter in the House.

All Ministers’ meetings with journalists are minuted—sorry; recorded—and the meetings that they have had are in the public domain.

I will be as open and as transparent as I possibly can be, which is why I am in the Chamber today. I had hoped it would be possible to announce a firmer decision today, but the quantity and volume of the representations received mean that that simply has not been possible.