BSkyB

Oliver Colvile Excerpts

Thursday 3rd March 2011 Commons Chamber

[Mr Hunt]

Let me address the two points that the hon. Lady raises. First, the majority of the directors of the new company will be independent, as will the chairman. That is different from the situation now, where the non-executive chairman of Sky is James Murdoch. The second issue that she raised was the flow of cash from News Corp. That is part of the 10-year carriage agreement that is negotiated at the very start of the process. In a way, it is like the licence fee negotiations with the BBC, in that it secures the new organisation’s cash flow for 10 years. Sky cannot get out of supplying that cash except in extreme conditions, and where there is a dispute about it there is a dispute resolution procedure involving independent arbitration, so the new organisation will be as sure of that cash flow over the 10-year period of the carriage agreement as anyone could be.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

I should also declare an interest, in that I have a brother, Charles, who is a cricket correspondent for Sky television and, I am told, can be seen nightly presenting the world cup highlights.

Can the Secretary of State confirm that should the deal not go through for some reason, the Murdoch family would not have to dispose of their interest in Sky News to such an extent?

[Mr Hunt]

I am trying to make sure that I have understood that question. If the deal does not go through, we remain with the status quo, which is that Sky will be 39.1% owned by News Corporation. On the other hand, the independent safeguards and guarantees for Sky News envisaged in the deal would not be put in place.