UK Journalism (Communications and Digital Committee Report)

Lord Gilbert of Panteg Excerpts

Wednesday 13th October 2021 Grand Committee

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[Lord Gilbert of Panteg]

That the Grand Committee takes note of the Report from the Communications and Digital Committee Breaking News? The Future of UK Journalism (1st Report, Session 2019-21, HL Paper 176).

[Lord Gilbert of Panteg (Con)]

My Lords, I am pleased to introduce the debate on this report. I am grateful to the staff for their assistance in preparing the report. Our clerk was Alasdair Love and our policy analyst Theo Demolder. They and the committee were provided with great assistance by Rita Cohen. I would also like to thank Professor Jane Singer, who provided expert advice throughout the inquiry.

I am especially grateful to noble Lords who sit on the committee, many of whom are speaking today and all of whom made a huge contribution to this inquiry where, typically, despite starting out with a range of perspectives, after listening carefully to the evidence and discussing the issues, we ended up on common ground and with a real sense of the need for urgency in addressing the issues that we identified. I look forward to hearing from my noble friend the Minster and welcome him to the Dispatch Box for the first time responding to a report from the Communications and Digital Select Committee, and warmly congratulate him on his appointment. Today I will be able to cover only some of our main findings and I am sure other colleagues will fill in some of the gaps.

Print circulations of newspapers have been falling and news is increasingly consumed online, yet only 8% of people pay for news. Even when the growth in digital subscriptions is taken into account, the average national newspaper circulation fell by 57% between 2009 and 2019. For regional newspapers, the decline was 85%. These figures are stark. We heard of the closure of hundreds of newspapers, with many more forced to consolidate and lay off staff. And this is not just about the loss of long-established publications. HuffPost and BuzzFeed, not so long ago held up as the outlets of the future, have both dramatically cut their UK operations.

Of course, the onset of the Covid-19 pandemic deepened the challenges facing the media industry. But these long-term, structural threats will not go away. With so few people paying for online news, publishers are dependent on the online advertising market. The boom in online media inevitably means a tougher time for newspapers, having to compete to sell advertising space with an ever-growing number of content providers.

However, as the Competition and Markets Authority has proved, the online advertising market is opaque and unfair. In 2019, Facebook and Google’s dominance allowed them to take 80% of the £14 billion spent on digital advertising in the UK. Even in the £1.8 billion “open display” market, in which content providers sell advertising space on their own websites, publishers receive only 65p of every £1 that advertisers spend. The rest goes to a range of intermediaries, which are owned overwhelmingly by Google. We asked Google if it could name any other market in which such clear conflicts of interest, from operating on the buyer side as well as the seller side, would be permitted. It could not. Put simply, publishers are finding that the game is stacked against them. That Google would behave as it has is to be expected. It is the slowness of the Government and regulators to act to stop it that is the cause of frustration.

Our committee first called for the CMA to conduct a market study in April 2018. This recommendation having initially been opposed, it took until July 2019 for the study to be launched and until July 2020 for it to conclude. In this report, we again recommended that the Government should set up the proposed Digital Markets Unit as a matter of urgency. The Government announced its establishment on the day our report was released—surely the least time it has ever taken for a Select Committee recommendation to be accepted.

The devil, though, is in the detail. The Digital Markets Unit currently operates as a shadow: it does not yet have the statutory powers it needs to act and it appears that it will not be fully operational until 2023 at the earliest. As one publisher told us, whereas Facebook’s motto was

“Move fast and break things”,

the Government’s seems to be

“Move slowly and allow the platforms to break everything”.

Among the Digital Markets Unit’s responsibilities should be the enforcement of a mandatory bargaining code to govern the relationship between platforms and publishers. Facebook, Google and others profit from publishers’ content in a variety of ways. Links to news stories provide an incentive for people to use the platforms’ services, where they can show them advertising and collect data on their interests. However, publishers need the platforms much more than the platforms need the publishers, so they cannot afford to walk away: more than a third of publishers’ traffic comes from Facebook and Google alone. Although the prospect of regulation has prompted platforms to pay some publishers for the use of some of their news in some countries, these schemes are highly limited and tend to favour the largest companies. As the CMA noted, publishers

“have very little choice but to accept the terms offered by these platforms, given their market power.”

The platforms’ opposition to the mandatory bargaining code in Australia offers a preview of how they will fight to prevent such a code being drawn up in the UK. Google threatened to withdraw its search engine from Australia if the Bill establishing the code passed. Facebook banned news from its service for four days. Although the platforms were able to water down the code, it provides a useful base on which our Government should build. Establishing a mandatory bargaining code is not about special pleading or pretending that the news industry can return to a bygone age. It is about fixing the problems to which the platforms’ untrammelled market powers give rise. So I ask the Minister: do the Government rule out a bargaining code?

Although it is in orders of magnitude smaller, we need to give serious thought also to how the market power of the BBC affects smaller players. As well as being the most watched and most listened to, in the age of online news the BBC is now the most read source of news in the UK, competing with newspapers, including local newspapers, as never before. We recommended that the BBC website should include an aggregator section to drive traffic to smaller and local websites. Our inquiry was not about the BBC, nor media regulation, but the economic security of the news industry and the future of journalism. None the less, the BBC plays such a dominant role in the news landscape that it was an important part of our work, especially in relation to diversity and plurality, which I will now turn to.

There is a lack of data on diversity across the industry. But, from the statistics available, it is clear that there is underrepresentation of people from black and other minority ethnic backgrounds, and of disabled people. There is also great concern about retention and progression, an area where much greater data is needed. Will my noble friend the Minister give Ofcom the power it needs, and has asked for, to collect a wider range of data from PSBs to enable it to better to monitor diversity?

Many great journalists entered the profession without completing higher education. Now, though, across the industry 98% of early-career journalists come from the 50% of young people who go to university. Many must also comply with costly master’s programmes and low-paid internships, further narrowing the pool of talent. The Government have taken some steps to make the apprenticeship levy more flexible, but, once again, witnesses we spoke to were critical of the levy, which is failing the industry and young people in this sector. We repeated our call for urgent reform of the levy if we are to have a news media that truly reflects and understands the public it serves.

It was clear to us that it is important that news organisations, in addition to be being representative of the country in terms of protected characteristics, hire people from a geographical range of backgrounds and, especially in the case of PSBs, from a range of perspectives, to avoid a homogeneity of mindset that gives rise to partiality of output.

It is not the job of news organisations to please politicians, but rather to be constantly challenging us, and we should be very wary about levelling accusations of bias when we hear something we do not like. However, BBC staff, who cannot be dismissed as ideologically driven, have criticised the BBC’s liberal metropolitan outlook—which is not the same thing as political bias. We must take seriously warnings such as that of Roger Mosey, former head of BBC TV News, that the BBC appears to be “edging towards groupthink”, and Sarah Sands’ observation, when stepping down as editor of the “Today” programme, that the BBC

“can treat social conservatism with polite incomprehension”.

For the most part, this is not journalists setting out to sway the audience one way or the other; it is born of a blindness to perspectives and experiences different from their own.

We welcomed Tim Davie’s commitment to impartiality and his efforts to apply high levels of editorial standards to the use of social media by BBC presenters, but we felt that, to protect impartiality in the long run, Ofcom should be empowered to ensure that public service broadcasters monitor the accuracy and impartiality of their journalists’ public social media posts, and take appropriate action where necessary.

More broadly, it has become harder over recent years to distinguish fact from opinion—or outright fiction—online. Dire warnings about a “post-truth age” and a “pandemic of fake news” are not always backed up by rigorous data. Nevertheless, it is clear that more needs to be done to equip people with the critical and technological skills they need to navigate online news. Media literacy means more than identifying “fake news”; it is about understanding journalistic processes and their value, how news is presented online and how it is funded. This is not only something to be taught in schools; we heard that older people can be among those most in need of support. There are many commendable initiatives in this area, but they lack co-ordination. There is a role for the Government to use their convening power to help guide Ofcom, the BBC, schemes run by the platforms and those in the third sector toward greater coherence.

We have a short debate today, and I will be brief in concluding. We covered a number of other areas, and made recommendations about the need for much greater co-ordination of the wide range of journalism funding schemes, especially the funding of innovation, and envisaged a convening role for government to ensure that these schemes are truly delivering greater plurality, while equipping journalists to stay ahead of, and to use, technology to maximise the reach of their content. We welcomed moves by the Charity Commission to recognise public interest journalism as a charitable purpose. We recognised the vital role of journalists, especially at a local level, in publicising the work of public bodies, especially the courts, and we welcomed the Government’s commitment to improve journalists’ access to court proceedings.

We looked at another aspect of the dominance of platforms—the significant control platforms have in determining how and whether users see news stories, and in censoring whomever and whatever they wish, based on their political sensibilities, their business interests, or seemingly sometimes simply on a whim, rather than bringing plurality. We were concerned that the growth in online news will mean more and more control for Silicon Valley elites over what we read—and, ultimately, how we think.

I look forward to hearing noble Lords’ views on this and the many other recommendations in our report, and I hope that the report, and today’s debate, will inform the House’s thinking as we look forward to the upcoming media Bill and legislation to establish the Digital Markets Unit.

This year, as every year around the world, dozens of journalists have been killed doing their work and hundreds have been imprisoned. In Afghanistan, journalists have been rounded up and beaten today. So, when we call for urgent action to support journalism as the industry journalists work in goes through huge structural change, we are calling not for intervention to support a declining industry but for recognition that journalists are a pillar of our democracy and, in this rapidly changing, polarised world where a range of voices needs to be heard more than ever, there is something precious that we will miss in more ways than we can imagine if we do not act urgently. I beg to move.

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[Lord Gilbert of Panteg (Con)]

My Lords, in the weeks leading up to the 2016 US presidential election, I was working for a bit in the United States. I have to say, I came back much more enthusiastic about the BBC and our news media than perhaps I have ever been. It is not just about our big national news titles; it is also about the local news titles which noble Lords have talked about eloquently today. The media is an important part of the fabric of our society, and local reporting is dying before our eyes.

This was a typically fascinating debate. Like the noble Baroness, Lady Grender, I am glad that the committee did not bring press regulation into scope. A number of noble Lords brought a couple of additional issues into consideration today. The noble Viscount, Lord Colville, was right to highlight the plight of freelance journalists, and my noble friend Lord Grade rightly highlighted the additional point about copyright, which is very important. I always want to highlight the work of the committee, and I draw your Lordships’ attention—particularly that of my noble friend Lady Meyer and the noble Baroness, Lady Fox—to our more recent report on freedom of expression online, which highlights a number of the issues to which they referred.

I conclude by thanking all noble Lords who contributed, particularly those from the Front Bench. The noble Baroness, Lady Grender, proposed this report in the first place, made a huge contribution and has had the opportunity today to reply to it. I thank her particularly for her contribution, the noble Lord, Lord Bassam, for his support for the work of the committee and this report in particular, and the Minister for a very fulsome response. On behalf of the committee, we look forward to working with him across our various briefs.

Motion agreed.