BSkyB

Geoffrey Robinson Excerpts

Thursday 3rd March 2011 Commons Chamber

[Mr Hunt]

First, there are provisions with respect to corporate governance in undertaking 3.18. The board is required to set up a corporate governance and editorial sub-committee, which will be run by someone who has expert experience of what editorial independence is all about. To my knowledge, this is the first time that a media company in this country has had such corporate governance requirements enshrined in its articles of association. There will be a tougher requirement on it to adhere to those requirements than there is on other companies, because other companies are required to comply with the corporate governance code or explain why they are not complying, whereas this company will simply be required to comply with it.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

Is the Secretary of State aware that the most likely, probably inevitable, outcome of his statement is that within 10 years, and perhaps in a much shorter period, News International will own 100% of both BSkyB and Sky News? Is he aware that the only way in which he could avoid that, and give his statement some shred of credibility, would be to have a clear, cast-iron undertaking by News International, in the articles of association or elsewhere, that it will not be allowed to regain 100% control of Sky News?

[Mr Hunt]

Undertaking 6.1 states that News Corporation is not allowed to buy additional shares in Sky News without the consent of the Secretary of State. Even after 10 years, when that agreement expires, were it to wish to acquire new shares in Sky News, it would have to go through potentially exactly the same process that it has gone through this time. The Secretary of State would have the option of asking Ofcom to examine the matter and referring it to the Competition Commission. All those safeguards will remain in place.