Oral Answers to Questions
Matt Hancock Excerpts(6 months, 3 weeks ago)
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Julia Lopez
The Bolton News, Bolton FM and the Chorley Guardian—we could not live without them. My hon. Friend is absolutely right about the importance of local radio. As Media Minister, I fought hard to make sure that we included provisions for local radio in the Media Bill, and I very much hope that it will be passed in the wash-up.
Matt Hancock (West Suffolk) (Ind)
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stuart Andrew)
Given that my constituency of Pudsey will no longer exist after the election, this may be my final chance to thank all my constituents for the support that they have given me over the years. I pay particular tribute to my parliamentary and constituency team, who have helped me enormously over the past 14 years. It has been the privilege and honour of my life, and I am extremely grateful for it.
In answer to the question, the Government very much support horseracing, which is the second largest spectator sport and a major economic contributor, and not just to the rural economy but to the economy more widely. We have been working extensively with industry to maintain its status as a world-renowned sport.
Matt Hancock
I, too, rise to make my last contribution in this House. May I thank you, Mr Speaker, and all the staff of the House, who have helped me enormously over many years? I have answered thousands of questions from the Dispatch Box, and asked hundreds from the Back Benches. I pay tribute to my right hon. Friend, who has been an exemplary Minister and representative of Pudsey.
It is perhaps fitting that my final question is about horseracing, which is at the heart of the West Suffolk constituency and, of course, Newmarket. It requires significant support in these difficult times. I know that the Minister and the Secretary of State have been working incredibly hard to try to settle the latest levy negotiations. Can he assure me that he will do everything he possibly can to use the last few days in which this Parliament is sitting to get that deal over the line? We now want certainty to be able to take this great sport from strength to strength.
Oral Answers to Questions
Matt Hancock Excerpts(2 years, 6 months ago)
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Chris Philp
The Government are extremely mindful of the challenges that the way the Northern Ireland protocol is being applied is imposing on communities across Northern Ireland. It clearly affects the horse-racing industry as it affects others. I know that my colleagues across Government are working extremely hard as we speak to find practical ways of fixing those problems, and I am sure that my colleague the Foreign Secretary will keep the hon. Member and the House updated on her efforts.
Matt Hancock (West Suffolk) (Con)
The anomaly on VAT, which ridiculously argues that a racehorse coming here to race or a brood mare coming here to breed is not coming for work, needs to be sorted.
Can the Minister also please ensure that the horserace betting levy is increased and reformed far sooner than is currently proposed? Although horse-racing is doing great at the moment, there is a significant challenge with the low level of prize money, which is leading to fewer runners and too many horses running overseas rather than here. We need to make sure we support the industry.
Chris Philp
I thank the former Secretary of State, who is a representative of a horse-racing constituency, for his question. Clearly quite a lot of money is going into the horse-racing industry via the levy. It is on track to raise about £100 million this year, most of which ends up in prize money. However, my right hon. Friend has made a number of powerful representations, both in this House and privately, about the need to review that levy earlier than was planned, and his powerful representations are being actively considered as we speak.
Oral Answers to Questions
Matt Hancock Excerpts(3 years, 1 month ago)
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Julia Lopez
I am very keen to work with the Welsh Government, in so far as I can be helpful, with their roll-out. I completely agree with the hon. Gentleman about the importance of tackling the digital divide. This is going to be a real issue. We are very cognisant of it and looking to do all we can to make sure that there is not that disparity between those with great internet access and those who do not have it.
Matt Hancock (West Suffolk) (Con)
The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)
I commend my right hon. Friend for his continued active advocacy on behalf of British horse racing and Newmarket in particular. I am pleased to tell the House that racecourses are accessing £21 million from the sport survival package. They have also had £28 million in cash-flow and hardship funding, in addition to which the Horserace Betting Levy Board provided £97 million in 2019-20 to support the sport.
Matt Hancock
I am very grateful for the work that the Department and the Minister have done in the pandemic to support horse racing, but as a major contributor to the economy and soft power, and with one in three jobs in Newmarket in my constituency connected with horse racing, is it not vital that we strengthen further the horserace betting levy to ensure that all betting makes a contribution and to ensure that we get the support for horse racing, which is such a glorious sport?
Chris Philp
I agree entirely about the importance of horse racing to the UK, both economically and more generally. As I have said, the levy contributed £97 million in the year before the pandemic, about 10% more than the forecast. Even in the pandemic year 2020-21, it contributed £80 million, so generally speaking the levy has returned more money than was initially expected. However, we are always willing to look at evidence, so if there is anything that my right hon. Friend would like to send in that we could carefully consider, I would be delighted to look at that.
Horse Racing
Matt Hancock Excerpts(3 years, 2 months ago)
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Matt Hancock (West Suffolk) (Con)
I thank Mr Speaker for granting this debate at what is a critical time for the British horse racing industry. Racing is a sport that means so much to me, not only because I love riding out, but because I have seen the positive impact of horse racing on communities across my West Suffolk constituency and across the country. I am grateful for all the support I have received from racing over the years, and I want to put that on the record. I am also grateful that the Department for Digital, Culture, Media and Sport has fielded not one but two Ministers for this important debate, which shows how seriously the Government take this vital industry.
Racing is the sport of kings, and it reaches all parts and is loved across the land. In fact, racing is the second biggest sport in the UK on any measure—by attendance, by revenue, by employment. Only football surpasses racing on the numbers, but not by grace or beauty. In 2019, before the curse of covid struck, over 5 million people attended racecourses in Great Britain, and experienced the thrill of the turf. From flat cap to top hat, Chepstow to Cheltenham, and Perth to Pontefract, people are working, riding and enjoying racing and all that the sport brings.
Racing is also one of the biggest employers in Britain. The breadth of skill and craft is extraordinary. Think of farriers, vets, stud staff, feed suppliers, saddlers, sales companies, bookmakers, transportation, equine schools, breeders, owners, trainers, jockeys; racing employs directly or indirectly around 80,000 people.
Jim Shannon (Strangford) (DUP)
I am pleased to see the right hon. Gentleman participating from the Back Benches—it is always better on the Back Benches. He is right that racing attracts people across the whole United Kingdom. It is also a major contributor to the economy in Northern Ireland. We all know that racing is important in Northern Ireland and, indeed, in Ireland, and this is not just about the jobs. When it comes to the benefits of this wonderful sport, does the right hon. Gentleman agree that the implications of gambling should not be overlooked?
Matt Hancock
I do, and I will come on to that point, because it is at the nub of how we ensure that we have a flourishing industry while taking into account the impact of gambling-related harm, which the hon. Gentleman knows is a matter close to my heart. However, it is possible to have policy that leads to a flourishing horse racing industry and the sport doing well that is symbiotic with that. That is what we need to achieve, and I have some suggestions for how we get there.
Newmarket, of course, is the centre of flat racing not just in this country but in the world, and is home to more than 3,500 horses in training. The number of horses in training there grew by 10% before the pandemic, despite falling numbers across the UK. One in three local jobs in Newmarket is related to racing, and 28% of all flat-race or dual-purpose horses in training under licence in the country are trained there. In fact, the success of the racing industry is providing jobs and improving livelihoods throughout West Suffolk, and I know from other Members who have significant parts of the racing industry in their constituencies—my hon. Friend the Member for Tewkesbury (Mr Robertson), who represents the Cheltenham racecourse, is present—that the livelihoods and the jobs, as well as the joy, that come from the sport are paramount.
Mr Laurence Robertson (Tewkesbury) (Con)
Let me first draw the House’s attention to my declaration in the Register of Members’ Financial Interests. Does my right hon. Friend recognise that it is important to allow racecourses to recover from the pandemic, and that any talk of vaccine passports would hit the sport very hard indeed?
Matt Hancock
My hon. Friend has made his point very clearly. Thanks to the vaccine, we have been able to reopen racing after more than a year in which there were no crowds—and for 11 weeks in 2020, it was closed altogether. It is thanks to the vaccine that the crowds are back, and long may they remain so. I will avoid the particular issue of the passports question; I know that my hon. Friend feels very strongly about it, and perhaps it can be the subject of the next Adjournment debate.
Let me pick up the economic point that my hon. Friend has raised. Nationally, aside from its contribution of about £4 billion a year to the UK economy, racing as an industry has acted as a bridgehead for significant trade with and investment in the UK. I really want to land this point. Examples include massive investment in business, property and universities by investors who come to the UK because of our racing. As we work to build an outward-looking, international, free-trading global Britain, that investment is vital. In this mission, soft power is incredibly important, and when it comes to soft power, there is little more powerful than horse racing. Through the sport’s historic connection to what could be described as our oldest and most important soft power asset, the monarchy, countries and investors around the world are eager to see and invest in horse racing here in the UK. Our horses compete around the world, are watched on television around the world, and are loved around the world. For instance, Royal Ascot and the Grand National are broadcast to nearly 600 million people in 200 countries annually. We must safeguard and cherish this national treasure. We must not allow horse racing to fall behind in Britain.
Like many industries, racing has been hit significantly by the pandemic. We know that the lockdowns saved lives, and that without them we would have suffered much more, but we also know—and I know—that forcing businesses to close had a significant impact on our economy and on many industries. As I said earlier, in 2020 racing was closed for more than 10 weeks. Thanks to the vaccine, it has been able to reopen, but it is estimated that it lost between £400 and £450 million in revenues. I pay tribute to the Minister’s Department, to the policy officials, to Mark Hicks, the private secretary—he was my private secretary, and an excellent one at that—and to the Chancellor of the Exchequer, for implementing one of the most generous and successful support packages in the world. From speaking to my constituents, I know that without the furlough scheme and the £21 million of funding in the sport winter survival package, the racing industry, and all the jobs of those who work in racing, would have been wiped sideways.
In spite of that great work, however, we still have a significant problem as we come out of the pandemic. Prize money—which is the lifeblood of the industry, enabling owners to generate a return on their investment—has fallen by 20% from 2019 levels. Sales of horses have fallen by over 20%, and more than 60% of major breeding operations are reporting declines in turnover. If we do not take action now, we will be overtaken by countries around the world as the global hub of racing, and we must not let that happen.
John Spellar (Warley) (Lab)
I refer the House to my entry in the Register of Members’ Financial Interests. I congratulate the right hon. Gentleman on securing this important debate for his constituency. Is it not the case that much of the prize money comes from the betting industry, and that that is an important part of the ecosystem? Although we may need to deal with problem gambling, we should recognise that for many gambling is an innocent source of pleasure. He also mentioned the effect of the lockdown. Would it not be much better for the industry to have vaccine passes rather than another lockdown, which would be disastrous?
Matt Hancock
I certainly do not want to see another lockdown, and I know that the right hon. Gentleman does not, because he was unenthusiastic about the ones that we had in the past. I do not want to get into the vaccine passport issue, but I agree strongly with what he said at the start, which is that we must tackle problem gambling. I bow to no one in my desire to tackle problem gambling, which I addressed when I was in the Department for Digital, Culture, Media and Sport. At the same time, however, many people enjoy a flutter, and a day at the races is an enjoyable experience that is enhanced for many people by gambling in a completely responsible and controlled way. The symbiosis between horse racing and gambling is important, and I would argue that gambling—especially gambling in person at a racecourse—is a much safer proposition than some of the modern electronic and online offers.
I want to come back to the point about the risk, because we are at a moment of peril—
Scott Benton (Blackpool South) (Con)
I thank my right hon. Friend for allowing me to intervene, and I draw the attention of the House to my entry in the Register of Members’ Financial Interests. He will be aware of the recent increase in the number of drone pilots that have been spotted at horse race meetings. This practice creates opportunities to bet via the black market during live races. Indeed, recent reports have suggested that the amount betted online via the black market has doubled in recent years to £2.6 billion. This is a practice that the horse racing authorities are working to address. Will my right hon. Friend urge the Government to assist them in trying to stamp out the use of drones at horse race meetings?
Matt Hancock
Yes I will, and I can see the Ministers discussing exactly that question right now on the Front Bench. This is another issue that needs to be resolved. It is another loophole in how the sport operates.
Races are put on to allow people to bet on them—they are not only put on for that reason, but it is one of them—and it is therefore important that some of the funding should come back from the gambling to the racing, without which we could not have the gambling in the first place. It is a symbiotic relationship, and that is why there is a place for the Government in ensuring that it is all arranged properly. The problem at the moment is that while gambling revenues have increased during the pandemic, particularly from online gambling, the amount that is going into horse-racing is not sustainable. The risk is that horse racing will increasingly move overseas and that we will lose all these great benefits. That is why we must act.
This is not just about the statistics. This is real. The decisions of only a few significant investors to relocate their investment to other jurisdictions would significantly and permanently damage British racing’s leadership position. We have seen countries around the world, including Ireland, France and Australia, stepping up to back their racing industries more, and if we do not follow suit we will be overtaken as the home of racing. We must not let this happen. Just recently, Shadwell, a major multi-million pound racing and breeding operation, announced that it would be undertaking a review of its activities, with operations in the UK, Ireland and the USA to contract. The extent of any contraction in the UK would have serious implications for jobs, for the economy and, I believe, for our place in the world. This is not just about statistics. It is real. There is an urgency for action, and I know the new Minister is a man of action and ready to act.
In this country, we are in the fortunate position that our recovery is the strongest in the G7. I come not to ask for public funds—although I do not rule that out for the future—but to ask for policy, to ensure that racing gets its fair share from the industries it supports, notably through fixing loopholes in the horse race betting levy. So the Government have a decision to make: step up, save the horse racing industry and reap the rewards of prosperity, jobs, prestige and trade, or step back and lock the stable door after the horse has bolted. Racing is of course part-funded by the levy, which represents the value of horse racing to the gambling industry. The levy provides for the infrastructure of racing and, in part, for the prize money that attracts investors who are crucial to the sport. We must ensure that the levy meets the costs of the racing industry in providing a competitive, compelling betting product from which the bookies benefit. It is failing to do that now. At the time of the last review in 2017, the Department for Digital, Culture, Media and Sport confirmed that the levy would be reviewed by 2024, but earlier if necessary, in order to be
“responsive to future changes in the market”
and to ensure that the yield is meeting the levy’s statutory purposes.
It is clear that the levy’s yield has never met the level of costs envisaged in 2017. There will be an estimated £160 million shortfall in industry revenues between now and 2024. Given the pandemic, an early review is required to ensure the levy is providing an appropriate return both to meet its statutory objectives and to support an internationally competitive British racing industry.
Two changes are needed, and this is what I am asking for. First, the levy should be based on a percentage of turnover, not a percentage of profit. This would result in less volatile yields and remove unhealthy perverse incentives in the sport.
Secondly, and most urgently, the levy should apply to all horse racing globally that is bet on by British customers. Betting customers in Britain can safely enjoy and benefit from horse racing in a wide variety of countries, and British participants often compete in these international events, driving interest and UK betting turnover. However, British racing does not receive a return from betting activity on these races.
An extension of the levy to cover racing overseas would see the levy apply to all thoroughbred races held worldwide, rather than solely races run in Great Britain. This is how it works elsewhere, such as in France and Ireland. This second reform can be quickly and easily enacted and would generate around £20 million annually for British racing. Closing this overseas levy loophole is fair, right, good economics and based on historical and international precedent.
I close by inviting the Under-Secretaries of State for Digital, Culture, Media and Sport, my hon. Friends the Members for Croydon South (Chris Philp) and for Mid Worcestershire (Nigel Huddleston), to Newmarket to see racing in action, from behind the scenes and from the grandstand, so they can see for themselves the huge value of this remarkable sport. I invite them to meet the British Horseracing Authority so that we can work together on the detailed evidence and proposals that have been developed.
I pay tribute to the Government for their support for racing throughout the pandemic. I know the Minister has heard this heartfelt plea on behalf of a sport that so many love, and I will not be letting this drop, so I look forward very much to working with him to ensure British racing can thrive in the years ahead.
Oral Answers to Questions
Matt Hancock Excerpts(6 years, 5 months ago)
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Mr Virendra Sharma (Ealing, Southall) (Lab)
The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
The National Citizen Service is a life-changing experience. The programme delivers good value for money for the taxpayer, and the most recent evaluation showed that the summer programme generated over £2 in benefits for every £1 spent.
Matt Hancock
I think the outcomes from the NCS are very powerful. It brings communities together and it is one of the most effective things that we have in making sure that people come together at a young age and understand our national life as a whole. Of course we are always seeking to improve its administration; the hon. Gentleman would expect nothing less.
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
Will the Secretary of State give us the number of people who participated last year, and the number who are expected to participate this year? What is he doing to widen participation?
Matt Hancock
Just over 99,000 young people participated in the NCS last year. This year, the target is 100,000—so a little bit higher. We are looking to increase and broaden participation so that people from all backgrounds and communities get the opportunity to engage. In fact, engagement is very strong among the most disadvantaged groups.
Vernon Coaker (Gedling) (Lab)
In reviewing the cost-effectiveness of the NCS, will the Secretary of State take into account the absolutely brilliant impact it has on so many young people? I have seen this for myself in Nottingham. Many young people who are disadvantaged or facing other challenges in life come together in the programme, and it makes a real difference to them.
Matt Hancock
Yes; the hon. Gentleman is a man after my own heart. The outcomes from the NCS are incredibly positive, and that will always be at the forefront of our minds.
Sir Desmond Swayne (New Forest West) (Con)
When we conceived the NCS, the ambition was that it would be so good that it would become universal. Does that still hold?
Matt Hancock
I would like it to become universal, but we are not requiring it to be universal because we want people to want to be on the programme. However, I think the message is increasingly getting out there that this should be done.
Mr Bob Seely (Isle of Wight) (Con)
Michelle Donelan (Chippenham) (Con)
The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
We take problem gambling very seriously and have taken decisive action on fixed odds betting terminals. We are determined to tackle that social blight and have decided to cut the maximum stake to £2.
Alex Burghart
I thank the Secretary of State for his response and for what he has done in this area. Does he agree that online gambling is in many ways more dangerous than gambling in bookies? What steps will he take to tackle that danger?
Matt Hancock
In our response to the consultation, we set out significant further steps to strengthen the safeguards for online gambling. The Gambling Commission already has a whole series of requirements in that area. There is more to do, and we are getting on with it.
Michelle Donelan
As the Secretary of State knows, I am strongly supportive of the decision taken on FOBTs, but problem gambling is an issue in my constituency, especially among the vulnerable. What more can the Department do to push gambling companies to better support addicts?
Matt Hancock
I am grateful for my hon. Friend’s support and for that of many Members across the House for the action we are taking on problem gambling. Clearly it is important to ensure that we tackle online issues as well. That is complicated by the nature of the technology, but the Gambling Commission is working hard to ensure that the right protections are in place.
Ronnie Cowan (Inverclyde) (SNP)
I once again congratulate the Secretary of State on introducing the £2 maximum stake for FOBTs. Will he use his considerable persuasive powers to talk to his colleagues at the Treasury and get that implemented by April 2019, and not a day later?
Matt Hancock
Of course, this needs to go through Parliament, and there is a process that needs to be followed. In order to cover any negative impact on the public finances, the change needs to be linked to an increase in remote gaming duty, paid for by online gaming operators at the relevant Budget. There are steps that need to be taken, but the hon. Gentleman knows just how enthusiastic I am to get this in place.
Jim Shannon (Strangford) (DUP)
While I welcome the lowering of the maximum stake for fixed odds betting terminals, has the Secretary of State considered a reduction in the number of betting advertisements shown during football matches, which are watched by a massive number of impressible young men and women?
Matt Hancock
That issue has been raised, and we have looked at it. Working with the Gambling Commission, we want to ensure that we get the rules in this space right.
Philip Davies (Shipley) (Con)
When is the Secretary of State going to ban 16-year-olds from playing the national lottery and buying scratchcards on the national lottery, or is he more worried about who is winning the money than who is losing the money?
Matt Hancock
We put that issue into the review, and I am sure that my hon. Friend’s consideration will be taken into account, along with others.
Mark Pawsey (Rugby) (Con)
Peter Aldous (Waveney) (Con)
The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
Libraries support people, communities and society as a whole, by providing access to books and literature and, increasingly, to modern technology.
Peter Aldous
With today being Suffolk Day, it is appropriate to highlight the great work of Suffolk Libraries, which is a successful, industrial and provident society that provides a growing range of community services. Will the Secretary of State—a fellow Suffolk MP—work with it as it seeks to become more innovative, self-sufficient and resilient?
Matt Hancock
I commend Suffolk Libraries, which is a thriving public service mutual that, as my hon. Friend says, does a great job. Today could not be a better day to celebrate what Suffolk Libraries does, because Suffolk Day, on midsummer’s day, celebrates everything that is brilliant about the county that is beautiful and full of wonderful people and great food. It is a great place to visit, a great place to live, a great place to be, and a wonderful place to represent.
Jeremy Quin (Horsham) (Con)
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
The Department for Digital, Culture, Media and Sport is the Department for all the things that make life worth living. This week, one moment that really made life worth living was Harry Kane’s 91st minute winner against Tunisia. I am sure the whole House will join me in wishing the England team the best of luck on Sunday and beyond. In the past week, we have seen three records set in cricket, with Scotland beating England and the women’s and men’s England cricket teams both setting world records. We send our admiration and congratulations to them all.
Mr Sheerman
I obviously support the Secretary of State in what he says about the English teams, especially the women’s cricket team, which was brilliant. Could I ask him to consider carefully our big towns, such as Huddersfield, which are not cities? Up to now, it has never had a consensus on becoming a city. Big towns such as Huddersfield really suffer from not receiving much money, which goes to cities. Is there some fund, or some way, in which the big towns could get their fair share of resources?
Matt Hancock
Yes, absolutely. Representing four towns myself, I entirely understand where the hon. Gentleman is coming from. We try to ensure that the funds that we supply through the Department for Digital, Culture, Media and Sport are available right across the country, whether that means vouchers for broadband, or the cultural development fund to improve the cultural life of an area. Huddersfield, like many other towns, is very welcome to apply for them all.
Tom Watson (West Bromwich East) (Lab)
One in five children in their last year of primary school are obese. What plans does the Secretary of State have to restrict further junk food advertising on television?
Matt Hancock
We are working with all stakeholders—the Department of Health and Social Care as well as the public service broadcasters—to take this question forward. Of course, it is not just a matter of advertising. To tackle obesity in this nation, we need a full spectrum approach that looks at all matters. Possibly some of the most important measures are those that encourage reformulation so that everybody benefits from eating healthier food.
Tom Watson
I thank the Secretary of State for his answer, but as a former Digital Minister, he will know that children now spend more of their time online than watching TV. If he does not create a level playing field on advertising, will revenues not just flood from TV to targeted advertising on YouTube, a company that is less regulated and has proved itself many times over to be less responsible and less transparent than ITV and Channel 4? What is the Minister going to do about online junk food advertising?
Matt Hancock
As I said in my previous response, we need a full spectrum response. It is akin to the debate we had earlier about gambling advertising. This is not just a matter of TV. Increasingly, people are watching things through all the technologies available. We have to make sure that the response is appropriate to that.
Chris Green (Bolton West) (Con)
Conor McGinn (St Helens North) (Lab)
Matt Hancock
Yes, absolutely. Property rights are the foundation of a market economy and intellectual property rights are the 21st-century version of that. The copyright directive is a good directive. We have to get the details right in its implementation, but it is a good step forward and I look forward to it becoming law.
Rebecca Pow (Taunton Deane) (Con)
It is great to hear so many references to cricket this morning. I am sure that you, Mr Speaker, and the Secretary of State are well aware that the cricket world cup will come to England next year. It will include games between New Zealand and Afghanistan and between Australia and Pakistan, at the glorious county ground in Somerset—in Taunton, indeed. What steps is the Department taking to ensure that the event will attract the maximum number of international visitors, as well as home visitors, including, perhaps, the Secretary of State himself?
Matt Hancock
It is almost as if my hon. Friend had some connection with Taunton. [Laughter.] She certainly speaks well for it.
We are absolutely determined that when the cricket world cup comes to this nation next year we will gain the full benefit, including all the business people who will come here. I went to India with the world cup trophy itself to encourage Indian tour operators to send as many people as possible from that fine nation to this country, and that includes Taunton.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
Matt Hancock
Yes, of course. We passed legislation to introduce the universal service obligation to ensure that everyone could have access to decent broadband by 2020. It has been harder in Scotland—we have been waiting five years for the Scottish National party Government to spend the £20 million that we promised them—but now we are just getting on with it and delivering directly to the people of Scotland.
Vicky Ford (Chelmsford) (Con)
Will the Secretary of State join me in thanking David Dimbleby for the role that he played for 25 years at the helm of “Question Time”, and does he agree that, in a year that marks 100 years of women’s suffrage, the baton should be passed to a woman?
Matt Hancock
I think the whole House will want to congratulate David Dimbleby on his achievement as he steps down. While of course the job must be awarded on merit, I do think it is about time there was a woman at the helm of “Question Time”.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Matt Hancock
There is no greater enthusiast for digital technology than me, and I warmly welcome the pupils and staff from Wick high school. Of course, technology must be used appropriately in schools. There are many incredibly bright schoolchildren in the Visitors’ Gallery, and I hope that they can make the most of all the digital technologies that are available.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Great Exhibition of the North, a summer-long celebration of the culture and science of the north, will open tomorrow evening in Gateshead, overlooking Newcastle. Does the Secretary of State agree that culture, science and engineering are essential parts of a vibrant economy, and will he tell us how that legacy will be ensured?
Matt Hancock
I am absolutely delighted that the hon. Lady has mentioned the Great Exhibition of the North, which will be launched tomorrow in Newcastle and Gateshead. I shall be going straight up there after questions, and the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Northampton North (Michael Ellis), will be going tomorrow. It will be a brilliant celebration of everything that the north of England has delivered to the nation in the past and will deliver in the future, and the hon. Lady is a great example of that.
Mr Speaker
On the subject of the north of England, let us hear from north Yorkshire. Mr Kevin Hollinrake.
Matt Hancock
My hon. Friend is also a great example of the future of the north of England, and I would be delighted to meet him to discuss these new technologies that are coming on stream that will help improve connectivity in Yorkshire.
Thangam Debbonaire (Bristol West) (Lab)
In Bristol, Bristol Plays Music and the Music Trust are developing a cultural curriculum with Bristol Old Vic and various other arts organisations. Will the Secretary of State or the Culture Minister, the hon. Member for Stourbridge (Margot James), visit Bristol when this curriculum is implemented, and will the Culture Minister support it being used in other schools across the country?
Stephen Kerr (Stirling) (Con)
John Rowbotham and his staff at the Stirling Observer play a crucial role in the life of the communities I serve. What is being done to support local newspapers?
Matt Hancock
The first thing we have done is fought off attempts to put more costs on to local newspapers, and now we have the Cairncross review, which I hope my hon. Friend will engage with, which is looking at how we can make them sustainable for the long term.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
Two fires in the last three months have destroyed three listed buildings in Glasgow, and over 100 listed buildings in Glasgow are at risk, so will the Minister engage with the Treasury and ensure they restore VAT relief on the renovations of listed buildings in this country?
Media Matters
Matt Hancock Excerpts(6 years, 5 months ago)
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The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
On 1 May 2018, I informed the House that I had issued a public interest intervention notice (PIIN) in respect of the acquisition by Trinity Mirror plc (now known as Reach plc) of certain publishing assets of Northern & Shell Media Group Ltd.
The PIIN triggered the requirement for the Competition and Markets Authority (CMA) to report to me on jurisdictional and competition matters, and for Ofcom to report on the following two media public interest considerations:
First, the need for, to the extent that it is reasonable and practicable, a sufficient plurality of views in newspapers in each market for newspapers in the United Kingdom or a part of the United Kingdom; and
Secondly, the need for free expression of opinion in newspapers.
I received the CMA and Ofcom reports on Thursday 31 May and have today published these on the gov.uk website.
I accept the CMA’s findings that while it is, or may be, the case that a relevant merger situation has been created, the merger does not give rise to a realistic prospect of a substantial lessening of competition in any market.
I have also accepted Ofcom’s conclusions that the merger does not raise concerns in relation to plurality of views, nor does it raise concerns in relation to free expression of opinion in newspapers.
In the light of this, and having considered representations submitted by interested parties in response to the PIIN, I have written to the parties today confirming my decision not to refer the merger for a phase 2 investigation.
I have also notified the CMA, in accordance with section 56(1) of the Enterprise Act 2002, to now deal with the matter from a competition perspective.
The role of the Secretary of State in this process is quasi-judicial and procedures are in place to ensure that I act independently and have followed a process which is fair and impartial.
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Media
Matt Hancock Excerpts(6 years, 5 months ago)
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The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
On 5 June I made a statement to the House in which I set out my decision in relation to the proposed merger between 21st Century Fox and Sky.
I announced that having considered the CMA’s report, I agreed with its findings on the public interest grounds and its finding that undertakings to divest Sky News to Disney or to an alternative suitable buyer could potentially remedy the adverse plurality public interest concerns identified.
I also noted that there remained a number of issues with the undertakings that had been offered and that these would require discussions between my officials and the parties in order to reach agreement on an acceptable form of the remedy.
Following the successful conclusion of these discussions and the resolution of these issues, I am today publishing updated undertakings offered by 21st Century Fox along with new undertakings offered by Disney for the divestment of Sky News to Disney.
These undertakings are offered on improved terms and will include:
a commitment from Disney to operate and maintain a Sky News branded news service for 15 years rather than 10 years
a restriction on Disney from selling Sky News for 15 years without the consent of the Secretary of State
an extension of the funding commitment from 21st Century Fox from 10 years to 15 years
an increase in the total funds available to Sky News, to at least £100 million per year, with operating costs protected in real terms; and
a formal commitment from Disney to preserve the editorial independence of Sky News
In my view, these revised undertakings meet the criteria that I set out to the House on 5 June and will help to ensure that Sky News remains financially viable over the long term; is able to operate as a major UK-based news provider; and is able to take its editorial decisions independently, free from any potential outside influence.
Under the legislation, I am required to consult formally for 15 days on the undertakings, which I propose to accept. Views as to whether these proposals are sufficient to remedy the adverse plurality public interest concerns raised by this merger are sought by 5pm on Wednesday 4 July 2018. The consultation can be found at:
https://www.gov.uk/government/consultations/sky-fox-merger-proposed-undertakings-by-21st-century-fox-inc-and-the-walt-disney-company.
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Education, Youth Culture and Sport Council
Matt Hancock Excerpts(6 years, 6 months ago)
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The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
The Education, Youth, Culture and Sport (EYCS) Council took place in Brussels on 22 and 23 May 2018. Lord Ashton of Hyde represented the UK at the Youth session of this Council on 22 May. The UK’s Deputy Permanent Representative to the EU, Katrina Williams, represented the UK on 23 May for the meetings on Culture and Audiovisual and Sport.
Youth
This session of the Council began with the adoption of Council conclusions on the role of young people in building a secure, cohesive and harmonious society in Europe. The Council adopted Council conclusions on the role of youth in addressing the demographic challenges within the European Union.
A policy debate was then held on the future priorities for EU Youth policy.
In addition, there was information from the Commission on European Youth Together, followed by information from the Belgian and French delegations on the Franco-Belgian declaration of Ministers responsible for youth on the prevention of violent radicalisation.
Culture/Audiovisual
This meeting began with the adoption of Council conclusions on the need to bring cultural heritage to the fore across policies in the EU.
There was also a policy debate on the long term vision for the contribution of culture to the EU after 2020, in particular looking forward to the next multiannual financial framework (2021-2027).
Additionally, there was a public deliberation of current legislative proposals. For this, the Council first welcomed information from the German delegation on the directive amending directive (2006/112/EC) as regards rates of value added tax—actively engaging in negotiations from a cultural policy perspective. In extension to this, information was provided by the French delegation on the regulation on the import of cultural goods. No legislative decisions were made in these debates, so there are no implications for the parliamentary scrutiny reservation.
Information was provided by the Lithuanian and Luxembourg delegations, on their respective hosting of the European Capitals of Culture 2022.
Sport
The sport session of EYCS began with the adoption of Council conclusions on promoting the common values of the EU through sport. This was followed by a policy debate on the commercialisation of elite sports and the sustainability of the European model of sport.
The EU member states represented in the World Anti- Doping Agency Foundation Board presented information on the Foundation Board meeting held on 16-17 May. The French delegation presented information on the informal meeting of the EU Minister for Sport (held in Paris on 31 May 2018), where there was the signing of a declaration for a Europe of Sport looking to the horizon of the 2024 Paris Olympic and Paralympic Games.
Other
The Austrian delegation set out their work programmes as the incoming presidency, for the second half of 2018. They highlighted a number of priorities for their presidency. These priorities included a focus on the work plan for culture 2018 plus, the successor programme to the Creative Europe programme and enhancing the principle of subsidiarity.
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Proposed Media Mergers
Matt Hancock Excerpts(6 years, 6 months ago)
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The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
With permission, Mr Speaker, I shall make a statement about the proposed merger between Comcast and Sky and the proposed merger between 21st Century Fox and Sky. In my quasi-judicial role I have considered the mergers separately, on their own merits, and wish to set out my decisions taken on the basis of the relevant evidence.
First, let me update the House on Comcast’s proposed acquisition. On 7 May, Comcast notified an intention to acquire Sky. As Secretary of State, I am required to consider whether the merger raises public interest concerns that meet the threshold for intervention set out in section 58 of the Enterprise Act 2002. As required, I considered the need for a sufficient plurality of people with control of media enterprises; the need for a wide range of high-quality broadcasting; and the need for a genuine commitment to broadcasting standards. Last month, I informed the House that I was minded not to intervene in the merger, on the basis that it does not meet the threshold for intervention. I gave interested parties time to make representations, but received no further representations. As a result, I have concluded that the proposed merger does not raise public interest concerns, so I can confirm today that I will not be issuing an intervention notice.
Turning to Fox’s proposed acquisition of Sky, in March 2017, my predecessor issued an intervention notice on public interest grounds, because of concerns about media plurality and the genuine commitment to broadcasting standards. The intervention notice triggered phase 1 investigations by Ofcom and the Competition and Markets Authority. In September, having considered their reports, along with further advice from Ofcom, my right hon. Friend referred the proposed merger to the CMA for a phase 2 investigation on both grounds. The CMA published its interim report in January and provided its final report to me on 1 May. I have published that report today and deposited a copy in the Libraries of both Houses. The report confirms, as previously set out, that the proposed merger does pass the threshold for a relevant merger situation, and provides recommendations on both public interest tests.
On broadcasting standards, the CMA carried out a thorough and systematic assessment, taking into account the approach of Fox and Sky to broadcasting standards, both in the UK and outside, and the approach of Fox and News Corp to wider regulatory compliance and corporate governance. The CMA concluded, in line with its interim findings, that the merger may not be expected to operate against the public interest on the grounds of a genuine commitment to broadcasting standards, and I agree with that finding.
On media plurality, the CMA’s final report confirms its interim findings that the proposed merger may be expected to operate against the public interest. The CMA found cause for concern in two areas: first, the potential erosion of the editorial independence of Sky News, which could in turn lead to a reduction in the diversity of viewpoints available to and consumed by the public; and secondly, the possibility of an increase in influence of the Murdoch family trust over public opinion and the UK’s political agenda. The CMA used a clear and logical approach and took into account Ofcom’s media plurality framework. It took great care to obtain a wide range of written and oral evidence, and I agree with its finding, too.
When the CMA finds that a merger is likely to operate against the public interest, it is required to consider what remedy would be appropriate. To address plurality concerns, the CMA considered a range of options, including those proposed by the parties. Specifically, the options were: first, a firewall of behavioural commitments to insulate Sky News from the influence of the Murdoch family trust; secondly, a ring fence, whereby Sky News would be separated structurally from Sky but still owned by Fox, along with the same behavioural commitments; thirdly, divesting Sky News to a suitable third party; and fourthly, prohibition of the transaction as a whole.
I have considered the CMA’s detailed assessment and its conclusions on how effective and proportionate the different remedies are. I agree with the CMA that divesting Sky News to Disney, as proposed by Fox, or to an alternative suitable buyer, with an agreement to ensure that it is funded for at least 10 years, is likely to be the most proportionate and effective remedy for the public interest concerns that have been identified. The CMA report sets out some draft terms for such a divestment, and Fox has written to me to offer undertakings on effectively the same terms.
The proposals include significant commitments from Fox, but some important issues on the draft undertakings still need to be addressed. I need to be confident that the final undertakings ensure that Sky News remains financially viable over the long term; is able to operate as a major UK-based news provider; and is able to take its editorial decisions independently, free from any potential outside influence. As a result, I have asked my officials to begin immediate discussions with the parties to finalise the details with a view to agreeing an acceptable form of the remedy, so that we can all be confident that Sky News can be divested in a way that works in the long term.
Under the legislation, I am required to consult formally on the undertakings for 15 days. Subject to the willingness of the parties to agree the details, I aim to publish the consultation within a fortnight. I am optimistic that we can achieve our goal, not least given the willingness that 21st Century Fox has shown in developing these credible proposals. However, if we cannot agree terms at this point, I agree with the CMA that the only effective remedy would be to block the merger altogether. That is not my preferred approach.
We have followed a scrupulously fair and impartial process, based only on the relevant evidence and objectively justified by the facts. I wish to thank Ofcom, the CMA, the parties, my predecessor and my fantastic team at the Department for Digital, Culture, Media and Sport for all their hard work. I hope we can reach a final agreement very soon. I want to see a broadcasting industry in Britain that is strong, effective and competitive. I commend this statement to the House.
Tom Watson (West Bromwich East) (Lab)
I thank the Secretary of State for advance sight of the statement, for which I had a little more time to read than usual; I suspect that was a benefit of the usual delays caused by Heathrow airport. [Interruption.] I had to get that gag in.
This is a saga which we have been living through for 18 months. In December 2016, when 21st Century Fox announced its bid for Sky, the world looked very different: the Tories were riding high in the polls; the Prime Minister was popular, even among her own Back Benchers; we had a different Culture Secretary; and I was six stone heavier. I do not think that even the Murdochs would have anticipated the changes that have happened since then.
To her credit, the previous Secretary of State, the right hon. Member for Staffordshire Moorlands (Karen Bradley), took her time over the bid. She ensured that it was subject to the full gaze of regulatory scrutiny and did not just provide the rubber stamp that Fox hoped for. During that time, Fox found itself not only covering scandals but embroiled in scandals, with sexual harassment allegations and high-profile dismissals at Fox News. A rival bidder, Comcast, has come forward. The approval of both bids today means that this is not the end of the story.
The Murdochs will be relieved that the old order is at least starting to reassert itself. Even before today, the new Secretary of State was doing what they asked of him, dumping the promises made to the victims of phone hacking by announcing that Leveson 2 would not go forward. Why is that relevant to this announcement? Well, the information that Leveson 2 would have revealed about corporate governance failure on an industrial scale is entirely relevant to the question of whether the merger would be good or bad for Sky’s adherence to broadcasting standards. Let us remind ourselves that the most recent allegations in the civil litigation against News Group Newspapers claim that senior executives at the top of the empire were not just culpably ignorant, but knowingly complicit about criminal conduct going on at News Group papers. Leveson 2 would have looked at that. The European Commission raided the London offices of 21st Century Fox just a few weeks ago as part of an investigation into violations of EU anti-trust rules. The Murdochs will be grateful that the Secretary of State is less curious than the officials who raided that building.
We on the Labour Benches understand that there are many commercial and technical elements of this bid to consider, but for us the priority has been to safeguard the future of Sky News. From Kay Burley to Adam Boulton, Sky News has some of the best presenters on TV and has always been a beacon for independent and rigorous journalism. Our priority is protecting that and ensuring that Sky News thrives going forward. The Secretary of State has given his approval for the Fox bid today subject to Fox’s proposed remedy that Sky News be divested to Disney or a suitable alternative. We have serious concerns about that, including how we ensure the long-term future of Sky News as a UK-based independent organisation under this option. Were the Fox-Disney deal to fail, it could leave Sky News isolated from Sky and owned by a foreign company with few news interests in the UK. It is hard to see how that would be in the public interest. Does the Secretary of State really think that this proposal of divestment is in the best interests of Sky News, or would it become isolated and at sea? He made it clear that he had no concerns about the broadcasting standards. Is he concerned that the civil cases that are currently being brought against Murdoch papers such as The Sun will reveal corporate maladministration that could have altered his decision?
Fox made many undertakings to get to this stage. Will the Secretary of State take personal political responsibility if Fox’s bid is successful and the guarantees that it made are broken, bearing in mind that the CMA opinion, expressed earlier this year, was that this deal was against the public interest? With Comcast now in the ring, the future for Sky is uncertain. A bidding war is on the horizon. That might be good for shareholders, but it is the Minister’s duty to protect the interests of the public. Sky is a gem of British broadcasting and is respected worldwide. Its future and global reputation for excellence is at stake in this process, so it is right that, if there is any doubt about whether the proposed solution is workable, it is the duty of the Secretary of State to ensure that this merger is blocked.
Matt Hancock
As I said in the statement, the analysis that I announced today and have put in the Libraries of the House follows a scrupulous process of scrutiny not just by me and Ofcom, but by the CMA. No matter how long debates over Heathrow took, I am sure that the shadow spokesman has not yet had the chance to read the full 410 pages of the CMA report. It goes into great detail in answering several of the questions that he raised. When it comes to the question of Leveson, it does take into account everything that was disclosed during the Leveson process and, of course, that which was made public by the many court cases since and it has looked over this area rigorously. The CMA concludes that what matters most in the broadcasting standards test is that which is most recent, so while it does take past behaviour into account, it ensures that that which is most recent is also weighted. The behaviour that was described and found under the Leveson inquiry was some time ago, as we have debated already.
I agree with the hon. Gentleman very strongly about the value of Sky News. This is very important to the UK broadcasting environment. I agree that we must be confident that the proposed solution and undertakings that have been given are robust. That is what I will be seeking to nail down over the next fortnight before consulting formally on those undertakings.
I am seeking to strengthen the undertakings that were given to the CMA and that have been repeated to me. When I am confident that those undertakings will ensure the long-term sustainable future for high-quality independent broadcasting at Sky News, as we know it now, I will be prepared to consult on those undertakings, take them and live by that decision.
Mr John Whittingdale (Maldon) (Con)
May I welcome my right hon. Friend’s statement and congratulate him and his predecessor on their handling of this matter? He will be aware that it is 16 months since the regulatory process got under way. Does he agree that it would be infinitely preferable if the future of Sky was determined by its shareholders and by the market, rather than by the regulatory timetable? Will he therefore give us an assurance that he will do his utmost to resolve the regulatory process before the summer recess begins?
Matt Hancock
Absolutely. My goal on the timeline is to consult within a fortnight. That consultation is required by law to take 15 days, which means that, hopefully, within a month, I will be able to get undertakings in which I have full confidence and can then consult on and conclude this process.
Hannah Bardell (Livingston) (SNP)
I thank the Secretary of State for an advance copy of his statement. I wish briefly to pay tribute to my predecessor in this role, my hon. Friend the Member for Argyll and Bute (Brendan O'Hara). He will continue his excellent work on the Digital, Culture, Media and Sport Committee and I feel sure that we will make a formidable team.
The primary concern of the Scottish National party and the Scottish Government was always around the potential impact of the proposals on media plurality. We firmly believe that it is unhealthy for too large a proportion of the media to be under the control of one single group. It is interesting to note that the CMA findings specifically cite public interest and the concern that there will be an erosion of Sky’s editorial independence as well. I am interested to hear the Secretary of State’s views on that issue, particularly on jobs at Sky. As the hon. Member for West Bromwich East (Tom Watson) has said, the Sky News brand is well known, particularly in Scotland and the other devolved nations, so I would like to hear about any impact on jobs. The Secretary of State will know, I am sure, that Sky is one of the biggest private employers in my constituency of Livingston, so I would be very keen to discuss any impact on the call centres there.
I welcome the statement. It has taken some time to get to this point. The concerns that have been raised, including over consultation, must be addressed robustly. Given the scandals that have happened and the families that have been damaged, it is in the public interest that the behaviour of these organisations is considered in this process and in this merger.
Matt Hancock
I agree with the hon. Lady about the importance of Sky News and about making sure that it remains financially viable over the long term. I want to ensure that we can have confidence in that in the final undertakings that are given. Of course Sky News has an excellent record for broadcasting. I am talking about its formal broadcasting standards and, as every Member in this House knows, its ability sometimes to reach the news faster than anybody else. Its interviews with those of us in public office are probing and invigorating. We thoroughly enjoy the service and I want it to be viable for the long term.
Michael Fabricant (Lichfield) (Con)
My right hon. Friend is absolutely right to praise Sky and Sky News. He will recall that it opened in 1989 and almost bankrupted, through its costs, the Murdoch family. What concerns me and the shadow Front-Bench spokesman is the long-term viability of Sky News. Ten years is a long time, and we are seeing a changing atmosphere and environment in broadcasting. How can he be assured that, over a 10 year period—and I hope many more years after that—Sky News will survive?
Matt Hancock
We have been given encouraging assurances thus far— not only in the bid directly before us, but in other bids associated with this takeover—that there will be long-term undertakings on the financial viability of Sky. I want to ensure that the organisation is robust, and that Sky News continues to do the brilliant job that it does now. I know that others have raised concerns about broadcasting standards within companies owned or part-owned by the Murdoch family trust, but Sky is an example of a brilliant broadcaster with incredibly high broadcasting standards, on a par with the BBC, ITV and Channel 4. That is why ensuring its long-term viability has so much resonance in the House, and it is also the reason why it matters so much to me.
Chris Bryant (Rhondda) (Lab)
The thing is, I can see exactly what is going to happen. The Secretary of State is going to accept any assurances that come in over the next few weeks and it will all be signed off. Then, in a few years’ time, Sky will be starved of money by whoever buys it and the broadcaster will end up coming to the next Secretary of State, or maybe even the same Secretary of State—I know he loves the job—to say, “Terribly sorry; it didn’t work out. Can we please now be subsumed back into Fox, or can we just let Sky die?” Kay Burley will then be out of a job, so she will stand in West Suffolk and defeat the Secretary of State, because most people in this country would prefer diversity of media ownership and want to keep Sky as independent as possible.
Matt Hancock
I relish the prospect of a contest against anybody in West Suffolk. I am not sure that the path set out by the hon. Gentleman, who is normally an optimist by nature, is the most likely one, not least because I will seek undertakings to ensure that Sky News remains viable over the long term and independent so that it can pursue us politicians without fear or favour.
Mr Nigel Evans (Ribble Valley) (Con)
Nobody could accuse the Secretary of State’s Department of rushing this decision; it has been made very carefully and cautiously, as it should, because Sky is well loved. I fought the Pontypridd by-election in 1989, which was the first by-election to be broadcast on Sky TV, so I have great fondness for the organisation. Sky has clearly weathered better than I did at the Pontypridd by-election. None the less, there is great plurality out there with the changing way in which people are accessing news these days. Given the diversification of Sky News and these guarantees, surely now is the time for the decision to be made so that the shareholders can make their decision.
Matt Hancock
I recognise the amount of time that has passed since we were first notified of this proposal. That is why I want to reach an agreement on the undertakings within a fortnight. I am absolutely certain that the parties will stand ready to meet that deadline, as my team and I also stand ready. We must then have the 15-day formal consultation, but I hope that will mean that the formal approval process from the Government side can be concluded within a month from now. There is a merger battle closer than on the horizon.
Christine Jardine (Edinburgh West) (LD)
Liberal Democrats have been consistent in expressing our concern about the Sky-Fox deal should it have gone ahead in its entirety. I therefore welcome the Secretary of State’s assurances that Sky News will be protected and sold off. Will he also reassure us that that there will be similar undertakings about the future of Sky News in the event that Comcast is the buyer?
Matt Hancock
Undertakings and assurances have been made by Comcast. By law, I was required to look at the Comcast bid because it is also of material size. We have done that and, as I set out, it does not raise the public interest concerns. I have therefore confirmed today that we will not be issuing an intervention notice. I know well the Liberal Democrats’ concerns in this area, having worked with the right hon. Member for Twickenham (Sir Vince Cable) in government. I hope that the resolution we come to over the coming weeks will be one that demonstrates with confidence that Sky News will be independent and viable, and that we can therefore be content with the media plurality.
Justin Tomlinson (North Swindon) (Con)
Although it was right that we had a thorough and transparent process, may I echo the comments that we need swiftly to come to a conclusion? The UK is a proud hub for investment in broadcasting and production, creating high-skill jobs. We need to demonstrate that the UK is both open to and welcoming of further investment.
Matt Hancock
I very much agree with the sentiment that my hon. Friend expresses. In coming to the House with this decision a week before the deadline and being clear about the rapidity of the next phases, I hope that we have demonstrated not only that we will be thorough and do this by the book, but also that we will get on with it.
Ian Paisley (North Antrim) (DUP)
I refer to my entry in the Register of Members’ Financial Interests.
I welcome the Secretary of State’s statement, particularly his most welcome comments about protecting Sky News. Will he assure us that Comcast will be put through the same rigorous tests that others have been put through? Will he also assure us that we are going to see not more tunnel but some light at the end of the tunnel, and that there will be a final and conclusive decision before the summer recess?
Matt Hancock
On the latter question, yes; I very much hope so, and I am optimistic, presuming that the parties engage in full and rapidly. I have deployed my team to take forward immediately after this statement the work that is needed to finalise the procedures.
On the hon. Gentleman’s first point, we have subjected Comcast’s bid to the law in exactly the same way. The truth is that Comcast’s existing UK media footprint is very small, so it simply does not raise the same concerns over plurality. The Murdoch family trust has very significant other media interests—not least in newspapers—whereas Comcast does not, so it is in a different situation, but we have applied the law in the same rigorous way.
Rebecca Pow (Taunton Deane) (Con)
Having been a journalist and broadcaster for most of my life, I was prompted to speak because I think we should speak up for maintaining the high-quality news and journalism that Britain is famous for. That should be at the heart of this decision. We need competition, and we need Sky News still to be giving a professional service, especially in these days of fake news. That is essential. I am sure that the Secretary of State is taking this to heart, because it is important.
Matt Hancock
It is an incredibly important point on which to end. You will know, Mr Speaker, as my hon. Friend does, that I am absolutely committed to high-quality journalism in the UK. The decisions that I have announced today, along with decisions—sometimes controversial ones—to protect the future of high-quality journalism are at the cornerstone of my approach to media policy. It is vital to have a free press and free media to ensure that we have high-quality journalism underpinning our high-quality political debate.
Mr Speaker
I entirely accept that the Pow moment was a magnificent one, but the Secretary of State erred in suggested that it was the conclusion of our proceedings, for it would be a very considerable deprivation to the House if we were denied the opportunity to hear the voice of Strangford; and we will hear the voice of Strangford, I am sure, in full force and now. I call Jim Shannon.
Jim Shannon (Strangford) (DUP)
Thank you, Mr Speaker; you are always very generous. It is always a pleasure to speak on behalf of the people of Strangford. I thank the Secretary of State for his statement. Avaaz has won permission to have its case for a judicial review of Ofcom’s decision heard in court on 19 and 20 June, so this statement is not the last word. Does the Minister accept that if Avaaz were to win the case, Ofcom would have to go back and reinvestigate the Fox-Sky bid, adding even more uncertainty to the outcome?
Matt Hancock
There are a number of ongoing court cases in this space, and they have all been taken into account up to their most recent stages. Everything relevant has been taken into account and we have followed the process scrupulously. Nevertheless, the decision that I have set out today is based on a thorough assessment of the relevant evidence. I hope that that means that we can now proceed with getting firm and final undertakings that secure the future of Sky News and allow this to go ahead.
Media Matters
Matt Hancock Excerpts(6 years, 6 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Digital, Culture, Media and Sport (Matt Hancock)
On 7 May 2018, Comcast Corporation formally notified the European Commission of its intention to acquire the entire issued share capital of Sky plc.
Under section 58 of the Enterprise Act 2002 (“the Act”), the Secretary of State has the powers to intervene in certain media mergers on public interest grounds.
Having reviewed the relevant evidence available, I can confirm that I have today written to the parties to inform them that I am minded not to issue an EIN on the basis that the proposed merger does not raise concerns in relation to public interest considerations which would meet the threshold for intervention.
This is a quasi-judicial decision and I am required to make my decision independently, following a process that is scrupulously fair and impartial, and as quickly as possible.
I will now allow until 5pm on Thursday 24 May for interested parties to submit written representations, and I aim to come to a final decision on whether to intervene in the merger shortly.
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