News Corporation/BSkyB Merger

Baroness Jones of Whitchurch Excerpts

Thursday 3rd March 2011 Lords Chamber

[Baroness Jones of Whitchurch]

My Lords, I thank the Minister for this Statement. For those of us who have been watching the progress of the referral to Ofcom with some interest, it does not come as a great surprise that we have received a Statement of this nature today. A cynic might say that it would be very surprising if the Christmas social engagements between the Camerons and the Murdoch clan, and the subsequent lobbying, did not have an outcome such as this, although I know that the noble Baroness will have no knowledge of that and I do not expect her to comment.

In November last year we had an excellent debate on the case for maintaining a broad plurality of media ownership tabled by my noble friend Lord Puttnam, who regrettably cannot be with us today. What was noticeable about that debate was the degree of well informed consensus around the Chamber that the proposed News Corp takeover of BSkyB would not serve the public interest. Indeed, I was struck by the passion of noble Lords’ belief in the principle of media plurality as a central issue of our democracy—so much so that the noble Lord, Lord Razzall, made it clear that, for the Liberal Democrats, upholding the principle was,

“a significant marker for our involvement in the coalition”—[Official Report, 4/11/10; col. 1784.]

I hope to hear him reaffirming that fact this afternoon.

In preparing for the Statement, I have reread the debate and the many concerns expressed, and have tried to measure them against the package that we have before us to see whether we can be reassured that they have been addressed. Unfortunately, many of the earlier doubts remain, and I hope that the noble Baroness can reassure us on some of them today. For example, even if we take Sky News out of the equation, does not the BSkyB takeover still represent a concentration of media power on a scale that would not be allowed anywhere else in the developed world—not even in the US? On the basis that News Corp’s share of the national press circulation is estimated to increase to more than 40 per cent by 2014, what are the implications for cross-media dominance in the years to come?

A major concern not answered by this deal is that the strength of BSkyB's financial dominance will allow it to bundle or cross-subsidise its newspaper output, potentially driving competitors out of the market. What steps does the department intend to take to ensure that that cannot happen? That is even more of a pressing issue with the development of internet news and pay-to-view tablet initiatives, in which Murdoch is taking the lead. Surely that underlines the fact that a plurality of news outlets is no longer just about the big TV news broadcasters and that the offering of Sky News as a token sacrifice does not address the real issue of concentration of media power.

There is another reason why sacrificing Sky News might not be the answer. The views of citizens and their access to information are shaped more widely than just by watching news programmes. The nature of entertainment and cultural output matters just as much, as does whether the programmes on offer have, for example, a concentration of American rather than UK origin. Those things matter in shaping how we see our world.

In our previous debate, several noble Lords spoke of Rupert Murdoch as an honourable man, and I have no reason to doubt that, but where might this decision and the promises made lead us in future? How can we stop BSkyB falling into others’ hands in years to come? The spectre of Russian oligarchs, or worse, cannot be discounted. How can we be sure that the deal today will be watertight and stand the test of time?

These decisions, once taken, are virtually impossible to reverse. Surely the sensible thing to do is to err on the side of caution. Will the Minister comment on whether the decision could in due course be reversed if it is subsequently shown not to be in the public interest?

In addition to those questions of principle regarding the deal, we have some specific questions about the detail of Sky News governance. For example, who will appoint the Sky News board and chair? What steps would News Corp have to take if it wanted to change its shareholdings or governance arrangements? Are there any constraints on who might buy the remaining shares in Sky News? Finally, what is to stop News Corp in setting up a rival news station to Sky—let us give it a name picked at random, Fox News—and thereby let Sky decline in its impact and status over time?

The Minister set out today the short period of consultation which will follow this announcement. We, too, plan to study the undertakings carefully and consult widely before coming to a view on whether this package is in the public interest. We will listen to the views of the regulator and to the other media organisations which may be affected by the decision. At the end of the day, our decision will be made by applying the public interest test in the knowledge that to get this decision wrong could have wide implications for our democracy for many years to come.