21st Century Fox Takeover Bid for Sky: Timetable

Lord Stevenson of Balmacara Excerpts

Tuesday 20th December 2016 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I thank the noble and learned Lord for repeating the Answer to the UQ granted earlier in the other place. As I said last week—goodness, was it only last week?—the concerns of 2011 were not just about the serious wrongdoing uncovered by the phone-hacking scandal. They were also about the concentration of media power in fewer and fewer hands. I have no doubt that if this is referred, it will be referred successfully to the Secretary of State to act on the issues that have been raised.

More than 135,000 people have already signed an online petition calling for this bid to be referred, and the reasons for their concerns are the same as those which caused the previous bid to be abandoned in 2011. This all makes the kicking into touch of Leveson 2 and the suspension of authorisation of Section 40 look more than just a coincidence. I have two questions about process for the noble and learned Lord, which I hope will be sufficiently broad for him to be able to respond to despite his concerns about due process.

First, I note from his previous response that the Secretary of State will aim to take an initial decision on whether to intervene on public interest grounds within 10 working days of formal notification of a merger to the relevant authorities. Such formal notification has yet to be received, but it could happen—some would say it is highly likely to happen—over the holiday period. As there are a number of public holidays coming up, may I ask the noble and learned Lord to tell me precisely how many working days there are in the period of the Christmas Recess? To get him started with his calculation, I point out that the other place is not sitting tomorrow. If he needs more time to work this out, I am sure a letter would be sufficient, and I would be grateful if he could place it in the Library as well.

Secondly, there is the question of whether James and Rupert Murdoch—if they do acquire the balance of Sky—are fit and proper persons to be licence-holders of a regulated television service. The noble and learned Lord told the House last time that the Prime Minister had not discussed the bid at her recent New York meeting with Rupert Murdoch. He said—I think I paraphrase—that Mr Murdoch had apparently rolled up unannounced, something I am sure he is wont to do. Can we be assured that all such meetings with the parties are logged and published? Given that, last time round, it transpired that the then Secretary of State had set up a parallel, secret communications structure involving his special adviser and a similar person in News International, could the noble and learned Lord confirm for us who in the DCMS and elsewhere in Government have the authority to communicate with the parties? Will he publish a list of those so authorised, including civil servants and advisers, and put a copy in the Library?

[Lord Keen of Elie]

I am obliged to the noble Lord, Lord Stevenson. I do not have a calculation of working days over the Christmas vacation to hand, but I assure him that the 10-day period is a guidance period. It was originally formulated by the then DTI and will, if possible, be adhered to. If the noble Lord is seeking a precise calculation of working days over the Christmas period to the point when this House resumes, I will arrange for that calculation to be made and endeavour to ensure that it is set out in writing, with an appropriate copy being placed in the Library.

Regarding the fitness of persons who are to be involved in this matter, as I indicated on a previous occasion, the question of who is a fit and proper person is determined by Ofcom, pursuant to the Broadcasting Act 1990, albeit that one consideration that will arise under the 2002 Act is the Ofcom code of conduct in respect of broadcasting standards, as set out in the Communications Act 2003, and the need for a genuine commitment to adhere to those standards. I have no doubt that the Secretary of State will have regard to all relevant considerations when she comes to address the issue that she has to determine on a quasi-judicial basis.

There will be no question of special advisers being engaged in the process, and certainly not in the process of communication with any parties involved in this commercial transaction—of that—I can assure the noble Lord. That is not going to occur.

I am not aware of any further meetings scheduled between the Secretary of State and any of the parties to this transaction. If there were to be such a meeting, I have no doubt that notice of it would be given and a record kept.