Cairncross Review

Lord Black of Brentwood Excerpts

Thursday 6th February 2020 Lords Chamber

[Lord Black of Brentwood (Con)]

My Lords, I declare my interest as deputy chairman of the Telegraph Media Group and my other media interests. I am also a member of the Select Committee on Democracy and Digital Technologies.

Dame Frances’s review was the first time that the Government acknowledged that the sustainability of our media is in jeopardy and that public policymakers needed to do something to help. Her report was welcomed across the industry because it identified practical steps to support the media on its path to fundamental change. The causes of the stress on the sector are straightforward. The news media faces brutal competition on two fronts. On one side are Google and Facebook—70% of UK online advertising spend now flows through this duopoly. This means that they take over £9 billion a year in digital ad revenues while the news media companies that create content for them earn only around £500 million. Then there is competition from the BBC, whose guaranteed £3.8 billion income produces a massive market distortion that makes it challenging to grow subscription businesses.

The Cairncross recommendations are a step in the right direction, but I have two points of concern. One is time: Cairncross was established in 2018, reported in early 2019 and the Government have only just responded at the start of 2020. Most of the recommendations have still to take practical effect. The grim truth is that help is needed now if many local newspapers are to survive while they bridge the gap between print legacy and digital future. My noble friend understands that. Will she tell us more about the timetable to implementation, particularly on the issue of VAT zero-rating for digital products, which could make a rapid difference to businesses building subscription models, and other financial measures, including tax reliefs, which will give time for the report’s structural measures to take effect?

My second concern is clarity. The Cairncross recommendations are just part of a plethora of other reviews, consultations and policy documents. We have the Furman review, initiatives from the Information Commissioner, reviews by the DCMS on brand safety and the supply chain, an investigation by the CMA, ongoing work from Ofcom, and the online harms White Paper. These are all important pieces of work, but there is real danger that we cannot see the wood for the trees. Too many initiatives from too many separate departments and organisations present a real risk that nothing will end up happening or that it will simply take too long.

Does my noble friend agree that the best way forward is to identify a handful of strategic issues where action to support the industry during its transformation can be taken speedily and preferably without the need for legislation, which will take far too long? I agree entirely with my noble friend Lord Wakeham that a consolidation review of ownership laws must be one of them.

There is speculation that my noble friend does not wish to continue in this role. She would be much missed. If she does move on, will she consider leaving a note in her desk for her successor saying simply, “The media needs your help. Many local newspapers face closure. Other publishers struggle to support high-quality journalism. There is no time to lose if we are to save our democracy. Please act now to help them”?