BSkyB

Ivan Lewis Excerpts

Thursday 30th June 2011 Commons Chamber

[Mr Hunt]

I completely agree with what my hon. Friend is saying. The regulatory authorities have both confirmed, both on 3 March and today, that they are satisfied that the undertakings I am putting before the House address the concerns that were raised about media plurality. I have taken that advice very seriously indeed.

My hon. Friend’s second point about Sky News is particularly important today because in the revised undertakings that we have published there are two things that particularly strengthen what the public value about Sky News. First, News Corp undertakes that it will not do anything to cause Sky News to contribute less to media plurality in this country if this deal goes through. Secondly, it agrees that it will continue to cross-promote Sky News on the Sky platform at the same level it currently does. In terms both of financial viability and of that all-important contribution to media plurality I am satisfied that if I proceed with the undertakings as published today, we will continue to have a free and plural media.

[Mr Ivan Lewis (Bury South) (Lab)]

The Secretary of State could have made different choices. He could have chosen to appear before the House today and make an oral statement rather than be dragged kicking and screaming to the House. He could have chosen to refer this acquisition to the Competition Commission for an independent inquiry to remove any doubts about the objectivity and transparency of the process. Will he answer the following questions? In view of the fact that this process has now taken six months, why did he not follow Ofcom’s original advice and refer this deal to the Competition Commission? How can he say that he has delivered greater independence for Sky News when it will be almost entirely dependent on News Corp for both distribution and funding? Will he publish in full the independent legal advice he has received on all aspects of this acquisition?

In relation to media issues, the Secretary of State has responsibility for media policy in this country, and it is therefore very disappointing to say the least that he has had so little to say about the phone-hacking scandal. The current police investigation must, this time, lead to full disclosure of all evidence, with those responsible brought to justice. Does the Secretary of State agree that once that investigation has been concluded there should be an independent inquiry into the conduct of the British press? The issues go further than one newspaper group. We have made it clear that we support self-regulation, but self-regulation must be accompanied by responsibility and accountability. It is surely time for lessons to be learned and reforms to be put in place so that such unlawful practices can never happen again.

[Mr Speaker]

Order. I say to the shadow Secretary of State that we are on the subject specifically of the proposed acquisition, so I feel sure that the references that the hon. Gentleman has made to another issue are now at an end. I think that we are clear about that. Does the hon. Gentleman wish to complete his remarks?

[Mr Lewis]

Thank you very much, Mr Speaker.

Does the Secretary of State agree that such an inquiry is now necessary?

[Mr Hunt]

I am quite bemused by what the shadow Culture Secretary is saying. He has said that the phone-hacking issue is not linked to the BSkyB merger. Those were his words. Now he is telling the House that there is a link. He says that I could have chosen to refer this to the Competition Commission but have chosen not to. Would he have chosen to refer it to the Competition Commission, because he has not said so? If he is now saying so, that is a big change in the Labour party’s position. Let me tell him that it is the Enterprise Act 2002, introduced by the last Labour Government, that gives the Secretary of State the right to accept undertakings in lieu instead of a referral to the Competition Commission. I am following precisely the process that was set up in law by his Government. I am doing so after expert, independent advice by regulators who understand the market extremely well—Ofcom and the Office of Fair Trading—and I am publishing that advice so that people can see the basis on which I have made the decision.

The hon. Gentleman also raised issues of the dependency of the new company on News Corp for its funding. He is right: the financial resilience of Sky News is central to the sustainability of the deal. That is why, as part of the undertakings, we have reached agreement on a carriage agreement, which will give financial security to the new company for a 10-year period, which addresses those concerns. The company is able to develop its business outside Sky during that period, which will make it less financially dependent on Sky, but even if it does not do that, it has the security of a 10-year funding agreement, which is considerably greater than that of the BBC, for example, in the licence fee settlement.

I am publishing more advice than any Secretary of State has ever published on any comparable deal. We are being completely transparent about the processes because we want to ensure that the public have confidence, and it would be good if the shadow Culture Secretary could at least acknowledge that transparency.