Rupert Murdoch and News Corporation Bid for BSkyB

Ben Bradshaw Excerpts

Wednesday 13th July 2011 Commons Chamber

[Mr Ben Bradshaw (Exeter) (Lab)]

I wish to concentrate briefly on an issue that, in the understandable outrage over the phone-hacking scandal, has been largely overlooked, at least until it was raised by my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown), the former Prime Minister, earlier this afternoon. That issue is the extent to which the current Government’s policy has been influenced by News Corp interests.

The sorry saga of the BSkyB takeover bid has already been well documented, but other Government policies could also have been written in Wapping. The first was the announcement last summer that the Government would not implement the recommendations of Labour’s Davies report into listed sporting events. Sport is one of the biggest money spinners for Sky and there remains real public concern about the lack of sport, particularly of test cricket, on free-to-view television. When the Leader of the House responds, I would like him to tell us when the Government intend to implement Davies’s modest and sensible proposals in full.

The second example is when the Government abandoned Labour’s proposals for regional news consortia, funded by a protected element of the licence fee, in order to secure the future of high-quality, impartial regional news and news in the nations on ITV. James Murdoch hated this idea; I know because he told me so in one of the many rows we had. One of the first decisions the current Secretary of State took when he came into office was to scrap these regional news consortia, in spite of the fact that they were already well down the road to implementation and had the full support of the industry and the public.

The third area, to which my right hon. Friend the Member for Kirkcaldy and Cowdenbeath has already referred, is the Government’s assault on the BBC through the biggest cut in funding in its history, leaving the corporation having to cut its programme funding by a massive 25%.

We should not be surprised by any of this. All that one needs to do is read James Murdoch’s chilling speech at the Edinburgh TV festival in 2009, in which he called for the BBC to be “cut down to size” and for Ofcom to be “neutered or scrapped”. What did the then Leader of the Opposition do in response? He added Ofcom to his list of quangos for the chop.

Returning briefly to the now dead News Corporation-BSkyB takeover, we know from the Business Secretary’s unofficial spokesman Lord Oakeshott that the Business Secretary would have referred the bid to the Competition Commission. Why did the Culture Secretary change the Business Secretary’s policy and bend over backwards to help News Corporation avoid a long and costly inquiry? His approach in this regard has been extraordinary.

[Several hon. Members]

rose—

[Mr Bradshaw]

He has repeatedly tried to hide behind the argument that he has a quasi-judicial role. Had he exercised that, he would have followed Ofcom’s original recommendation and referred the bid in full to the Competition Commission. Is it not the case that there has always been a plurality problem? We thought there was a plurality problem; the Business Secretary thought there was a plurality problem; Ofcom thought there was a plurality problem; every serious media analyst in the country thought there was a plurality problem. The only people who did not think there was a plurality problem were News Corporation and the Government.

[Several hon. Members]

rose—

[Mr Bradshaw]

To dispel any suspicion—[Hon. Members: “Give way!”] No, I will not give way. [Interruption.]

[Mr Speaker]

Order. If the right hon. Gentleman wants to give way, it is up to him.

[Mr Bradshaw]

I give way to the Secretary of State.

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

Will the right hon. Gentleman accept that it was on the basis of Ofcom’s independent advice that the media merger should go ahead that I made that recommendation to the House? On Monday morning, I wrote back to Ofcom to ask whether it stood by that advice, as a result of which the bid ended up being referred to the Competition Commission.

[Mr Bradshaw]

We will discover that when all the papers are published, which is my next point. However, what happened came only after the Secretary of State intervened on behalf of News International in a negotiation with Ofcom.

To dispel any suspicion in the House and among the British people that the Government acted under pressure from News Corporation, the Government must now disclose the details of all meetings, discussions and communications involving Ministers, officials and representatives of News Corporation, or their representatives. That must include details of the now infamous back-door visit to Downing street straight after the election, and the Prime Minister’s Christmas dinner with James Murdoch and Brooks in Oxfordshire.

May I finish with some friendly advice to the Government? The information will come out. It is far better for the Government to put it voluntarily into the public domain now than to have it prised out by freedom of information requests or by the forthcoming judicial inquiry. As my right hon. Friend the Member for Kirkcaldy and Cowdenbeath has said, it is rarely the initial mistake, incompetence or bad judgment that is fatal, but the cover-up.