Rupert Murdoch and News Corporation Bid for BSkyB

Greg Mulholland Excerpts

Wednesday 13th July 2011 Commons Chamber

[Chris Bryant (Rhondda) (Lab)]

Some chilling words: “This one is my priority,” spoken by Rupert Murdoch about Rebekah Brooks; “There is far worse to come,” spoken by Rebekah Brooks about the revelations; “News International was deliberately thwarting a police investigation,” spoken by Commander Peter Clarke, who was in charge in the investigation and who has never said that in public until now; “I am 99% certain that my phone was hacked,” spoken by Assistant Commissioner Yates, who is in charge of counter-terrorism in this country; and “Have you ever paid police officers?” “Yes,” spoken by not just Rebekah Brooks but Andy Coulson.

Some disturbing facts: News International bullied those who opposed or were critics of the BSkyB empire; the policeman investigating News International went on to work for the company not years but weeks after he had stopped working for the Metropolitan police; Parliament has been lied to time and time again by a series of different people; material was deleted at News International and sometimes squirreled away and kept against a rainy day when a police officer might come knocking on the door to try to incriminate somebody else lower down the chain in the organisation; some people were ditched and thrown overboard, as we have seen throughout this year; and, as the right hon. Member for Bath (Mr Foster) said earlier, one of the most disgusting things that has happened in the past two weeks is that the people slaving away in the boiler room had to carry the can for those who were at the helm. That does not show that that is a decent company with which to do business.

Executive and non-executive directors at News Corporation completely failed in their fiduciary duties to ensure that criminality was not going on at their company and that the organisation was co-operating completely with the police. That involves Mr Aznar, Peter Barnes, Kenneth Cowley, Lachlan Murdoch, Thomas Perkins, John Thornton and Stanley Shuman, who should all be considering their position, too. I believe that this is proof that News Corporation is not a fit and proper body to hold its present holding in BSkyB, let alone any increased holding.

I pay tribute to the hon. Member for Maldon (Mr Whittingdale), who has been tenacious over the years on this matter. He said that BSkyB has done much that is good and I am sure all our constituents would agree. They watch lots of Sky television and enjoy their Sky Plus. The company has lots of technological innovation that only a robust entrepreneur could bring to British society, but it has also often been profoundly anti-competitive. I believe that the bundling of channels so as to increase the profit and make it impossible for others to participate in the market is anti-competitive. I believe that the way in which the application programming interface—the operating system—has been used has been anti-competitive and that Sky has deliberately set about selling set-top boxes elsewhere, outside areas where they have proper rights. If one visits a flat in Spain where a British person lives, one finds that they mysteriously manage to have a Sky box there even though it is registered to a house in the United Kingdom.

Sky has a virtual monopoly over many areas of our lives, with 67% of residential pay-TV subscriptions and 80% of pay-TV revenues—with an average spend of £492 a year.

[Greg Mulholland (Leeds North West) (LD)]

I pay tribute to the hon. Gentleman’s tenacity and courage over the course of this matter. He has been a credit to Parliament in the way he has pursued this. He is quite right that News International must be brought to justice, but does he agree that we must address the concentration of ownership of the media? If we do not do that, the idea that we have a free press and free media is simply false.

[Chris Bryant]

I completely agree that we failed to address the fact that we have allowed one man to have far too much power in his hands, including four newspapers and all the rights I have been talking about.

It is not just newspapers and broadcasting that have been subject to anti-competitive practices; it is also advertising. Sky spends £127 million on advertising—double what Virgin is able to—in any one year. The fact that it has such a big presence in the market makes it difficult for others to enter. It is anti-entrepreneurial to allow one person to have so much power, which is why no other country would allow it.

I suspect that the people of the country have been way ahead of we politicians on all of this. In the 10 years that I have been an MP, many have come to my constituency surgeries and demanded changes to the system. We have all failed in our duty for far too long, perhaps because we were frightened. If the Murdochs fail to attend the Select Committee next week, I believe that the people of this country will conclude that the Murdochs are waving goodbye to Britain—and maybe that would not be a bad thing.