Leveson Inquiry

Debate between Jeremy Hunt and Lord Foster of Bath

Wednesday 25th April 2012 Commons Chamber

[Mr Hunt]

I know that the right hon. Gentleman was disappointed yesterday, as he was looking for a smoking gun that showed that the process had not been properly pursued. The very first decision I took was to say I was minded to refer this bid. That is the proper process. If a Minister wants to refer a bid to the Competition Commission, the proper process is to tell the interested party that they are minded to do so, and it then has the opportunity to come back with undertakings, which the Minister has a duty to consider. That is the process set up by the right hon. Gentleman’s Government in the Enterprise Act 2002, and that is what I was doing.

[Mr Don Foster (Bath) (LD)]

The Prime Minister reminded us earlier today that for far too long Conservative and Labour politicians and their advisers have been cosying up to the media, and in particular to the Murdoch empire. In the light of that and of the Secretary of State’s own experiences, does he agree that it is inappropriate for a politician to make decisions on media ownership when, however hard they seek to be impartial, politicians will be perceived to be under pressure to meet the wishes of the media barons? Should not these decisions be made openly and independently by the appropriate regulator?

[Mr Hunt]

My right hon. Friend makes a powerful point. He knows that I have said that I think this is an issue that needs to be considered, because the perception of impartiality is as important as the impartiality itself. We wait with interest to hear what Lord Justice Leveson says.

Oral Answers to Questions

Debate between Jeremy Hunt and Lord Foster of Bath

Thursday 3rd November 2011 Commons Chamber

[Mr Hunt]

Let me tell the hon. Gentleman. Philanthropic giving to major arts organisations stands at £250 million and went up 6% last year. Lottery funding changes that we introduced, which his party did not support, will add £80 million a year to the arts budget by 2013—so, more philanthropy and more lottery. His party was talking about cuts of 20% across the whole of Government whereas we have limited cuts to 15%, so there are lower cuts as well.

[Mr Don Foster (Bath) (LD)]

I welcome the shadow Secretary of State and her team to their new posts.

Does the Secretary of State agree that the biggest threat to funding for the arts is anything that damages income to the national lottery, such as the so-called society lottery set up by Richard Desmond and his newspapers? Does the Secretary of State believe that that lottery abides by the spirit and letter of current legislation? If not, what is he going to do about it; and if he believes it does, should we not change the legislation?

[Mr Hunt]

My right hon. Friend is well aware of my concerns about anything that challenges or threatens the important income that goes to good causes from the national lottery. He will know that the Gambling Commission and the National Lottery Commission are looking at this, and we await what they have to say with great interest.

Oral Answers to Questions

Debate between Jeremy Hunt and Lord Foster of Bath

Thursday 8th September 2011 Commons Chamber

[Mr Jeremy Hunt]

I will be delighted to do so as soon as my diary permits. A key part of our tourism strategy is promoting regional tourism and encouraging people to visit what is on their regional doorstep. It was in that spirit that we sent the hon. Lady that letter.

[Mr Don Foster (Bath) (LD)]

The position of channels on the television electronic programme guide influences what we watch. Will the Secretary of State therefore explain why we allow some EPGs to list American cartoons way above the British content, given that we want our children to watch more UK-originated content than American cartoons?

[Mr Hunt]

My right hon. Friend makes an important point. Position on the EPG will probably be the Government’s single most important lever in protecting our tradition of public service broadcasting. We are actively looking at how to make that situation better, if necessary using legislation.

Phone Hacking and the Media

Debate between Jeremy Hunt and Lord Foster of Bath

Monday 11th July 2011 Commons Chamber

[Mr Hunt]

I completely understand the hon. Gentleman’s anger on that issue, but obviously parliamentarians cannot tell the police what to do because we have the separation of powers. However, the judge-led independent inquiry will look fully at the way in which the police have behaved and it will get to the bottom of this. We must give it our full support.

[Mr Don Foster (Bath) (LD)]

The House will have noted in the Labour leader’s contribution the complete absence of any reference to the repeated failure by the Labour Government, despite repeated warnings to act in this area. Will my right hon. Friend confirm that, notwithstanding what has been announced today, which is frankly little more than another ruse by the Murdoch empire, there is nothing to prevent Ofcom from now investigating whether the Murdoch empire is fit and proper to own the 40% of BSkyB shares that it owns?

[Mr Hunt]

Ofcom is at liberty to investigate the “fit and proper” issue in the Broadcasting Act 1990 at any time. It will have to investigate that issue to see whether it is relevant to the potential acceptance of any undertakings subsequent to a Competition Commission inquiry. Those issues will therefore be looked at thoroughly and carefully.

BSkyB

Debate between Jeremy Hunt and Lord Foster of Bath

Thursday 30th June 2011 Commons Chamber

[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.

[Mr Don Foster (Bath) (LD)]

The Secretary of State has rightly said that this is an issue about plurality in news and current affairs. Does he recall that in 2002 the Labour Government opposed a general plurality test, and that it was only because of the efforts of Lord Puttnam and others in another place that one was included in the Enterprise Act? Given that that was a watered-down test, does he believe that the time is now right to set up an independent commission on plurality so that it can inform the future communications Bill?

[Mr Hunt]

My right hon. Friend makes an extremely important point. The process that we have gone through has revealed that both he and I would like to make sure that there are better protections for media plurality, not in situations such as this—we have a process that involves exhaustive public scrutiny—but where someone might develop a dominant position in the media, and the public might not be as protected as they should be. That is why the coalition Government have said that we want to do something that the last Labour Government did not do: look at whether plurality protection can be strengthened, which we will do in the new communications Bill that we will be putting to the House in the second half of this Parliament.

BSkyB

Debate between Jeremy Hunt and Lord Foster of Bath

Thursday 3rd March 2011 Commons Chamber

[Mr Hunt]

I am afraid that what we heard from the shadow Culture Secretary displays absolutely blind ignorance of a process that his own Government, when they were in power, set up under the Enterprise Act 2002. He talked about putting the interests of party first. Apart from asking him why the former News International-employed Labour party director of communications sent an e-mail round to all Labour Front Benchers asking them to back off from criticisms of this deal, let me just say this. I have been absolutely scrupulous in making sure that independent views were commissioned, expressed and published at every stage of this process, precisely because I wanted to reassure the public that this decision was not being taken on the basis of party interest. Those documents have been published today so that people can see for themselves that not only did I ask for that independent advice, and not only did I publish that independent advice, but, after careful consideration, I accepted that independent advice.

Let me go through some of the other things that the hon. Gentleman said. He partially quoted something that I said about this deal before I was even part of the process, but he did not read out the end of that quote, which he will have known full well, where I said that I would not second-guess the regulators. I have not second-guessed the regulators. I have listened to the independent regulators and I have accepted their advice.

The hon. Gentleman asked whether the chair of the new company that is proposed to be set up will be independent. It is written in undertaking 3.13 that the chairman will be completely independent. There will be a board with majority independent directors. He asked what proportion of the new company’s revenue will be dependent on Sky. As things stand at the moment, it would be about 65%, but I think that any independent board of directors would be likely to want to reduce that dependence over a period of time, and they will have a 10-year carriage agreement with guaranteed income over that period in which to address that issue.

The hon. Gentleman asked who will be responsible for hiring and firing those who are responsible for the operation of Sky News. Again, it is clearly written in the undertakings that have been published today, in undertaking 3.16, that that decision will be the responsibility of the independent board. He talked about The Times and The Sunday Times, but I gently point out to him that this case is different because we will have an independent company that will be floated independently on the stock market with an independent board and an independent chairman—that is a huge difference.

The hon. Gentleman asked me to confirm whether the impartiality rules will remain in place. It is the Government’s policy that they should. On top of that, for the first time in this country, the new company will have in its articles of association that it must respect the broadcasting code, which includes the impartiality requirements. That is set out in undertaking 3.12.

The hon. Gentleman asked when I would consult other media organisations. What I am launching today is a 17-day consultation in which those media organisations will be consulted. This is a consultation and I will listen to what they say. The extraordinary thing in what he said today was the utter cowardice of a party that listens to a statement, criticises a process that it set up, and then refuses to get off the fence and say whether it agrees with what I have done. Last time, he criticised me for not following Ofcom’s advice. In fact, I did follow Ofcom’s advice then, and I am following it now. Does he agree with what Ofcom has said? If he is not prepared to say whether he agrees, no one will take any of his criticisms the remotest bit seriously.

[Mr Don Foster (Bath) (LD)]

Many members of the public are concerned about the potential for growing influence and control over news and current affairs in this country. Will the Secretary of State confirm that if this deal goes ahead, Rupert Murdoch, James Murdoch and News Corporation will have less influence and control over news and current affairs in this country?

[Mr Hunt]

My right hon. Friend makes a very important point. The detail that has been published today shows that News Corporation and James Murdoch have had to surrender a significant degree of control over Sky News to purchase the rest of the Sky shares. That involves the things that we discussed earlier, such as the independent chairman. At the moment, James Murdoch is non-executive chairman of Sky. That will change, with Sky News having an independent chairman. The detail includes the broadcasting code being written into the articles of association and that there must be a majority of independent directors. There is a whole range of safeguards that were negotiated not by me, but by Ofcom, which is the expert regulator in the field, precisely because it wants to ensure that there is not an over-concentration of media ownership in this country. That is fundamental in a free society.

Oral Answers to Questions

Debate between Jeremy Hunt and Lord Foster of Bath

Monday 25th October 2010 Commons Chamber

[Mr Hunt]

May I start by welcoming the hon. Lady to her position? She brings with her considerable showbiz panache—something that, despite his many other talents, the Under-Secretary of State, my hon. Friend the Member for Wantage (Mr Vaizey) tried but failed to do for many years when he was doing her job.

The hon. Lady has only been doing the job a short while—[Hon. Members: “So have you.”] Indeed. I will perhaps forgive her for not understanding how the figures work, because after the lottery changes introduced by this Government—changes that the Labour party opposed every step of the way—the actual cut in the arts budget is less than 12%. Perhaps this is a moment for the Opposition to review that policy; otherwise there will be two parties in British politics that want to throw a lifeline to the arts and one party that wants to take it away.

[Mr Don Foster (Bath) (LD)]

We have already heard that changes to the national lottery have meant more money for the arts, but does the Secretary of State agree that we could go even further, were we to change the taxation regime for the national lottery to a gross profits tax regime? That would bring in yet more money for the arts. Will he tell the House what progress is being made in that direction?

[Mr Hunt]

I am very happy to do so. I agree with my hon. Friend that there is a big opportunity if we change the taxation regime for the national lottery. When we were in opposition, Camelot gave us undertakings that it was prepared to indemnify the Government against any reduction in Treasury revenues, were such a change to be made. If it were still prepared to do that, I am sure that we could make fast progress.