Rupert Murdoch and News Corporation Bid for BSkyB

Martin Horwood Excerpts

Wednesday 13th July 2011 Commons Chamber

[Mr Brown]

Let me say, Mr Speaker, that I am about to set out some facts for this House, and I hope that once I have done so I will be able to give way to Members.

In the month that I started at No. 10, there were already issues of state involving News International—a decision that the Government had to make on a Competition Commission inquiry into the recently acquired stake that brought its ownership of ITV up to 16.8%. It was for the Government to decide on any referral to the competition authority, and the Government approached this with no bias against BSkyB. However, after examining in some detail BSkyB’s activities, the Government, on the advice of the relevant authorities, found a case to answer and announced the strongest remedy possible—a referral to the competition authority, which went on to rule that BSkyB’s share purchase in ITV was not in the public interest. So far from siding with the News International interest, the Government stood up for the public interest by making the referral. While we correctly gave it time to sell its shares, its shares had to be sold.

Next was the proposed Ofcom review into the onward sale of BSkyB sporting and other programmes, and the claims of its competitors that it had priced BT, Virgin and other cable companies out of the market. The public interest was in my view served by due investigation. We did not support the News International interest, but stood up for what in our view was the public interest. The Ofcom recommendation, which News International still opposes today, demanded that there be fair competition.

It is no secret that the 2009 McTaggart lecture given by Mr James Murdoch, which included his cold assertion that profit not standards was what mattered in the media, underpinned an ever more aggressive News International and BSkyB agenda under his and Mrs Brooks’s leadership that was brutal in its simplicity. Their aim was to cut the BBC licence fee, to force BBC online to charge for its content, for the BBC to sell off its commercial activities, to open up more national sporting events to bids from BSkyB and move them away from the BBC, to open up the cable and satellite infrastructure market, and to reduce the power of their regulator, Ofcom. I rejected those policies.

[Martin Horwood (Cheltenham) (LD)]

rose—

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

rose—