Leveson Report: Media Plurality

Lord Gardiner of Kimble Excerpts

Wednesday 22nd May 2013 Grand Committee

[Lord Gardiner of Kimble]

My Lords, I thank my noble friend Lord Sharkey for this short debate on how the Government plan to take forward the issues of media ownership and plurality in the light of Lord Justice Leveson’s report. This clearly is an important issue, and plurality is vital for a healthy and well informed democracy. It is equally clear that we must get this right, and I have listened very carefully to the many comments made by your Lordships today.

In September 2011, this Government publicly commissioned Ofcom to provide advice on the issue of media plurality, which was then considered by Lord Justice Leveson. I think the noble Lord, Lord Stevenson of Balmacara, put some sharp focus on the fact that it may not have been the largest part of the report, but that does not mean to say that it is not a very important part of it, as other noble Lords have indicated.

As was acknowledged by Lord Justice Leveson, the broad constraints of the work that the inquiry had to undertake meant that there was not sufficient time to look at these matters in detail. As a result, Lord Justice Leveson’s recommendations in this area were,

“at the level of desirable outcomes and broad policy framework, rather than the technical means of achieving those outcomes”.

That, I think, recognises that plurality is a complex issue: it is concerned with what is available in terms of the number of different media voices but also with what information people consume. As was identified by Lord Justice Leveson, a number of questions flow from this. The first relates to scope—for example, how far plurality rules apply to online as well as to more traditional news platforms. A second question relates to measurement—the number and range of metrics that provide an indication of the level of plurality and, indeed, sufficient plurality. I agree with the noble Lord, Lord Stevenson of Balmacara, that there is a complexity about these matters; it is not a quick fix. A third question relates to remedies—the range of available remedies, whether structural or behavioural. A fourth question relates to triggers for action—what might trigger a review of plurality or action, such as the imposition of a remedy. I also agree with the point raised by the noble Lord about whether periodic plurality reviews or an extension to the public interest are most likely to provide a timely warning of and response to plurality concerns that develop as a result of organic growth.

The Government have committed to seek views on these issues and on how to take forward Lord Justice Leveson’s recommendations. I am very conscious of the strictures of the noble Lord, Lord Whitty, and my noble friend Lord Inglewood on these matters, but I can assure noble Lords that this will be a thorough and well thought-out piece of work, and the process will begin this summer. It will build on Ofcom’s advice and Lord Justice Leveson’s recommendations in this area. I also emphasise, conscious of what my noble friend Lord Inglewood has said, that the work of your Lordships’ Communications Committee will provide another valuable source of evidence and analysis. I believe, having discussed this with colleagues, that this is the reason for the manner in which the response was couched, not because there was any lack of courtesy or understanding, and that this work will be immensely valuable to the considerations.

My noble friend Lord Sharkey raised the idea of a revenue cap, as indeed did other noble Lords. At times, the Opposition have raised this as well and have made similar recommendations. As the Ofcom report highlights, this may well present difficulties. The dynamic nature of the UK’s communications sector means that at this stage it will be hard to find a generally accepted consensus on a definition of the UK’s cross-media market, or have the same view of its revenue and of the revenue accorded to firms operating with it. There is more work to do in that area.

One aspect raised by a number of noble Lords, including my noble friend Lord Stoneham—the noble Lord, Lord Stevenson of Balmacara, used the words “in a changing world” that I was particularly struck by—is that we have seen such changes to the face of the media over just the past decade. There is the online sector and we will see all sorts of other innovations that we have not thought of yet. That is why I think that Lord Justice Leveson concluded that these should be part of any market assessment of plurality. Within 10 years, Google News and Facebook have become two of the three most used online sources for news after the BBC. I have, of course, noted what my noble friend Lord Sharkey said, but we need to address the influence of the providers of news generally. Nevertheless, consumers are benefiting from these new services, so it is important that in any new plurality regime such innovation continues to be supported.

I understand that the Opposition have proposed a cap on the UK’s national newspaper circulation. I am as yet unclear whether this would be defined by print run or by readership, but as the whole media market is changing, that may not actually address the issue in the most skilful way. In a world in which people get their news from multiple sources and use a range of different platforms to access news content, the extent to which newspaper circulation correlates to influence may potentially become less clear.

I was also very interested in what the noble Lord, Lord Parekh, had to say on ownership, about some of the experiences from the Indian media, and the six points he made. The point is that the trend of change introduces other new challenges. While exposure to a great range of new sources is undoubtedly positive, an increasing array of information also heightens the possibility that people will use internet search engines to modify selectively their own news intake. Indeed, search engines support this by prioritising news content based on a user’s previous searches. This is why Ofcom highlighted that the availability, consumption and impact of news media were relevant measures of plurality. The report made clear that an inflexible prohibition on market share was not currently advisable. It stated that,

“setting absolute limits leaves no room to take account of the broader context, and this creates a risk that it is not possible to address issues of commercial sustainability and innovation in an appropriate manner”.

Lord Justice Leveson similarly concluded that no compelling evidence was put forward to support arguments for any fixed cap on media market share.

It is for those reasons that I used the words “quick fix”. Colleagues may not appreciate them, but I think that a quick fix is not sensible and we need to proceed with care. That is why Lord Justice Leveson recommended that work should be undertaken with the industry on a measurement framework for plurality in order to achieve as great a measure of consensus as possible on the theory of how it should be measured. In many communities, the issue will be the extent to which there is a regional source of news alongside the BBC. Some expressed concern about the growing predominance of our national news market by foreign news media. We need to think very carefully as to the extent to which any new plurality regime might in practice give the foreign news media a competitive advantage. These issues all warrant a level of detailed consideration that was not possible in the context of Lord Justice Leveson’s inquiry.

In all this, clearly we must not forget the strength of the UK’s news sector. We have world-leading journalism and a wide range of trusted providers and editorial voices. I think the observations of the noble Lord, Lord Lipsey, on European interests will strike home but, to be honest, the Government are not likely to expect or permit Brussels to take on what is a UK responsibility. However tempting it may be and however strongly people feel, we have a responsibility to make sound decisions in the best interests of the country as a whole. This necessarily entails due process and engagement with those concerned to minimise the risks of unintended consequences—for example, around innovation and growth.

I want to assure your Lordships that work is in hand. I am conscious that a number of noble Lords, and perhaps all noble Lords here, want to have some indication that the Government take this issue seriously. It is serious, which is why it needs to be done properly. The Government will set out this summer how they plan to seek views on these issues and how to take forward Lord Justice Leveson’s recommendations.

[Lord Inglewood]

Before my noble friend the Minister sits down, perhaps I might make two points having heard his interesting remarks. First, can he confirm that he will write to me in response to my remarks? Secondly, can he tell the Committee when the last day of summer comes?

[Lord Gardiner of Kimble]

I am of course always very happy to write to my noble friend and I shall confirm the points that I made. I will reply to his other point by saying that I know when the first day of autumn is.

Committee adjourned at 3.57 pm.