BSkyB

John Whittingdale Excerpts

Thursday 30th June 2011 Commons Chamber

[Mr Hunt]

Let me first address the hon. Gentleman’s final comment, which was beneath what he is capable off. I am perfectly well aware that on such an issue no one will trust the motives of politicians, which is why, at every stage, I have sought independent advice from Ofcom, the independent regulator, and the Office of Fair Trading. I have done it even in areas I did not have to. For example, I did not have to ask Ofcom’s advice on whether these undertakings were robust and I did not have to ask it whether it would address concerns about plurality, but I chose to do so, and I have published its advice. I have tried therefore, at every stage, to strengthen the confidence of the House and the public in the integrity of the process.

I shall move on to some of the issues that the hon. Gentleman raised. First, he talked about past assurances given by News Corps in respect of previous media assets that it has purchased. This is not an issue of trust. These undertakings are legally binding and legally enforceable. Moreover, one of the undertakings particularly addresses the concerns that I think are shared in many parts of the House about broadcasting impartiality, which is enshrined in the broadcasting code. Under the undertakings that I published on 3 March and am publishing again today, the code will form part of the company’s articles of association. Under the strengthened undertakings that I am publishing today, News Corps will not be allowed to attempt to get the new company to breach its own articles of association, so the editorial impartiality for which Sky News is valued will be better protected than it is for any other media organisations in this country.

I remind the hon. Gentleman that he has campaigned— I think very honourably and impressively—on the phone-hacking issue. At root, I agree with what he says: no company should be above the law. But just as no company should be above the law, no Minister should be above the law. I have to follow due process, and due process under the Enterprise Act 2002, which was put in place by his Government, says that I have to consider this on the basis of media plurality—a very important issue—to make sure that no one person has too much control over our media. That is why James Murdoch and Rupert Murdoch will have less control of Sky News after this deal goes through than before it because of the undertakings in place.

On the other issues that the hon. Gentleman raised, I cannot speak for the Prime Minister but I have had no contact with the Prime Minister over this deal. I am deciding this deal on a quasi-judicial basis, but I have not met Rupert Murdoch or James Murdoch in recent weeks, and all the meetings I have had with them have been minuted and done through official channels. On the tax issue, obviously, like all companies, News Corp will be subject to UK law, but this issue has been decided on media plurality grounds.

On the consultation, I remind the hon. Gentleman that I could have chosen to conclude this issue today, but I have not. I am launching a further consultation. This issue has been in the public domain since last summer, but I want to make sure that this House and the public have every possible opportunity to comment on what is being proposed. Not only that, but I have listened to them. In fact, I think we have made the undertakings more robust and stronger so I am confident that what I am proposing to the House will protect plurality of the media, which I know is highly valued in all parts of the House.

[Mr John Whittingdale (Maldon) (Con)]

May I congratulate the Secretary of State on the meticulous care that he has shown in his handling of this matter? Can he confirm that every single concern that has been raised by the regulatory authorities has been addressed? On the wider question of impartiality, does he agree that the value of Sky News is not because it makes money—it does not—but because of the benefit to the overall reputation of BSkyB that comes from the integrity, objectivity and the quality of its news gathering, and that it would therefore be madness for any new owner to seek to change that?

[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.