Leveson Inquiry

Debate between Jim Dowd and Lord Lilley

Monday 3rd December 2012 Commons Chamber

[Mr Lilley]

I am in favour of the press having better standards but the best form of regulation is what we saw—The Guardian exposing the failures of the News of the World; “Panorama” exposing the failures of “Newsnight” —not a regulatory body, whether or not underpinned by the state. My hon. Friend is uncharacteristic. Those who jump to the conclusion that we need state-backed regulation assume that that is always an improvement on voluntary actions and arrangements. Such faith is a triumph of hope over experience and people forget the law of unforeseen consequences. Regulation invariably has unforeseen—but not necessarily unforeseeable—consequences.

[Jim Dowd]

Will the right hon. Gentleman give way?

[Mr Lilley]

I will not at the moment. Lord Leveson proposes giving a state regulator the power and duty every two or three years to review and approve—or disapprove—the code and how it is implemented and enforced by the regulator. That is either a substantial power with important consequences or a trivial power with negligible consequences. The latter is unimportant so why insist on it? If the power is significant and will have substantial ramifications and consequences for the way the regulator behaves, the content of the code and the way it is enforced, we should look at it very carefully.

I know from many years of studying regulation that one consequence of regulators being given the power to review and prescribe detail is that the regulator—the state supervisor—will at every biennial or triennial review demand not less but more and stricter regulation. Has my hon. Friend the Member for Aldershot (Sir Gerald Howarth) ever known a regulator demand less regulation rather than more? It is a recipe for regulatory creep and increasingly detailed specification by the state supervisor of what the so-called independent regulator must do.

The other consequence that some fear from a regulatory system that is overseen and supervised by a statutory regulator is that the regulator will nudge the code and its enforcement in line with the prejudices of the Government of the day. I doubt that that would be the immediate consequence, although it could be the consequence in the long term, but the statutory body that oversees how the regulatory apparatus works would follow either the Government’s prejudices or its own. We want to beware of that. If the statutory body is like the regulatory structures we normally set up, we will have a pretty clear idea how it will behave, but by definition it will be outside the direct control of the House, so hon. Members will have no say in it.