21st Century Fox/Sky Merger

Lord Watson of Wyre Forest Excerpts

Thursday 29th June 2017 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

I thank the Secretary of State for advance sight of her statement, albeit in redacted form, which, quite honestly, Mr Speaker, is utterly ridiculous.

This decision was delayed as a result of the unexpected general election campaign. I hope that the Conservative party found those weeks as productive as we on the Opposition Benches did, but nothing about this decision is a surprise. It is the old playbook. The Secretary of State has known all along what she wants to end up doing, but she has to follow the established dance steps, so let me make a prediction now. The parties have proposed some pretty minor undertakings in lieu. They always knew that they were not going to be enough to satisfy Ofcom, so the Secretary of State will demand extra conditions, as a result of which she will get written up as a tough operator. The parties will offer something new, which they always had in their back pocket, the Secretary of State will accept them, as she always planned, and this merger will go ahead.

Let me tell the Secretary of State the problem with Murdoch’s undertakings in lieu—not just these undertakings in lieu, but any undertakings in lieu that have ever been offered by the Murdochs. They are not worth the newsprint they are written in. Ask Harold Evans or James Harding about the guarantees of editorial independence at The Times and The Sunday Times. Can the Secretary of State name any undertakings in lieu that the Murdochs have ever made that have been respected?

If the current rules mean that James Murdoch can pass a fit and proper person test, given everything we know about his and his companies’ behaviour over phone hacking, and given everything we know about Fox’s behaviour over the ongoing sexual harassment scandal in the United States, that says more about the rules than it does about Mr Murdoch. It is clear that the rules need to be reviewed, and if the current Conservative government will not do that, the next Labour Government will.

This company has been found guilty of significant corporate failure, yet this bid process can still go ahead. In fact, over the next 12 months, the Labour party will be reviewing media ownership rules in the UK, and let me put the media barons on notice: the days when citizens of other countries can dominate our media markets while paying their taxes overseas have to end.

The truth is, the world is changing and it is time the Conservative party realised it. We have seen what looks like an implicit bargain between the Conservative party and the Murdoch empire over recent years. The Conservatives would give Murdoch what he wanted—the Sky deal, stopping section 40, blocking Leveson part 2 —and Murdoch would deliver Theresa May the landslide victory she craved. Well, it has not quite worked out that way, has it? Rupert Murdoch has not delivered his side of the bargain, has he? His papers may have done their best to urge a Tory landslide, but he just could not follow through. He is not what he was. It was not The Sun wot won it. The country saw through him. The Sun told Britain: “Don’t chuck Britain in the Cor-bin”. Britain chucked the Tory manifesto in the bin instead.

Please let me give the Secretary of State some friendly advice: Murdoch was not any use to them. They do not need to be any use to him anymore. If I was speaking to the Minister outside the Chamber, I would say to her: “At long last, you’re free. You can do the right thing.” One way of signalling that freedom would be to go ahead and order part 2 of the Leveson inquiry. Notwithstanding Ofcom’s fit and proper assessment, the only way to get to the bottom of the corporate governance issues that are at the heart of the decision is for the Secretary of State to hold part 2 of the Leveson inquiry. She should get on and order it now. She does not have a mandate to drop Leveson 2.

Meanwhile, let me ask the Secretary of State this. Given that this autumn James Murdoch is facing a civil trial in the High Court over new allegations of hacking and blagging at The Sun, and destruction of evidence, does she think that she could come out of this process with egg all over her face? How can the process possibly proceed with these cases hanging over them? Before she makes her final decision, will she guarantee to let the House know what the Prime Minister discussed with Rupert Murdoch at their private meeting in New York last year?