Sky/Fox Merger

Edward Miliband Excerpts

Tuesday 12th September 2017 Commons Chamber

[Karen Bradley]

My hon. Friend is right that this process has taken a significant period of time. It was always known that this would be a lengthy process. I remind the House that the proposed merger was set out in December last year, but no official notification of the merger was made to the authorities until February. We have been determined to deal with it as promptly as possible. The small matter of purdah also got in the way earlier in the year, I am afraid to say. I am mindful that I have to act as promptly as is reasonably practicable. I am aware that there are those who are keen to see this matter progress. I want to get the CMA working on it as soon as possible, and that will be the final part of the official process set out in the Enterprise Act, although there are always opportunities for discussion at that point.

[Edward Miliband (Doncaster North) (Lab)]

I welcome the Secretary of State’s decision on plurality and her “minded to” decision on broadcasting standards. I join my hon. Friend the Member for West Bromwich East (Tom Watson) in praising the Secretary of State. She has made a brave decision—or is minded to make a brave decision—but it is the right decision and one that the Murdochs will not like. I have my own experience of the Murdochs, and she is absolutely to be commended for that.

The Secretary of State is ignoring what is, in my view, the unreliable and flawed advice of Ofcom. She knows that I and a number of colleagues believe that its view on “fit and proper” is also flawed and unreliable. If its advice on broadcasting standards is flawed, I think we can draw some conclusions about its position on “fit and proper”, although I know she will not comment on that.

I have one specific thing that I want to ask the Secretary of State. Can she reassure us that if the CMA holds the inquiry she is minded to have, it will be a comprehensive look—the first time this has happened, I think—at the Murdochs’ disgraceful record in news and, indeed, broadcasting—from the News of the World to Fox News to Sky News Australia? Crucially, will she confirm that it will look at the issue of corporate governance, which was something that she flagged up in her letter to Ofcom, although I do not think it looked at that properly? That needs to be looked at, as it relates to broadcasting standards.

I end by saying that the Secretary of State has done her job today; it is now for the CMA to do theirs.

[Karen Bradley]

I thank the right hon. Gentleman for his question. Together with the right hon. Member for Twickenham (Sir Vince Cable) and my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), he contributed one of the 30 substantive representations that I received. He referred to the “fit and proper” test. One question that he raised in his representation was the level of the threshold. What has become clear from the conversations we have had and our work is that the threshold for referral to the CMA is a different threshold from the “fit and proper” test. The “fit and proper” test is, quite rightly, something for Ofcom.

If the right hon. Gentleman looks at my statement, he will see the reasons I have set out for referral to the CMA. As and when the “minded to” decision becomes a final decision, I will set out those reasons in full.