Rupert Murdoch and News Corporation Bid for BSkyB

William Cash Excerpts

Wednesday 13th July 2011 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I beg to move,

That this House believes that it is in the public interest for Rupert Murdoch and News Corporation to withdraw their bid for BSkyB.

The motion stands in my name and those of right hon. and hon. Members across the House: the former leader of the Liberal Democrats, the right hon. and learned Member for North East Fife (Sir Menzies Campbell), the leader of the Democratic Unionist party, the leader of the Scottish National party, the leader of the Social Democratic and Labour party, the leader of Plaid Cymru and the hon. Member for Brighton, Pavilion (Caroline Lucas). I thank them all for joining me in tabling this motion. I also thank those Conservative Members who have set out their support for the motion in advance of the debate.

It is unusual, to put it mildly, for a motion in this House to succeed before the debate on it begins, but this is no ordinary motion, and this is no ordinary day. Make no mistake: the decision made by News Corporation was not the decision it wanted to make. It may have been announced before this debate, but it would not have happened without it. Above all, this is a victory for people: the good, decent people of Britain, outraged by the betrayal of trust by parts of our newspaper industry, who have spoken out up and down this country, and who have contacted Members across this House and told us of their concerns. The will of Parliament was clear, the will of the public was clear, and now Britain’s most powerful media owner has had to bend to that will.

This debate is an opportunity to understand how we got here and where we go from here. I will speak briefly, to allow others to speak in what has been a curtailed debate. The terrible revelations of the last week have shaken us all. They have caused immense pain and heartache to bereaved families, as they learned that their most private moments were stolen from them to sell newspapers. As each day has gone by, I am sure all of us will have felt the same: surely it cannot get any worse than this. But it has: the phone of Milly Dowler, the victims of 7/7, the families of our war dead, and the personal details of our former Prime Minister. And we are told that there is worse to come. These revelations have uncovered a pattern of sustained criminality that is breathtaking, and they have called into question our faith in the police’s capacity fully to investigate wrongdoing.

There are many things that we need to do to put these wrongs right. We have done one of them today. This was a time for the House of Commons to give voice to the views and feelings of the British public about the integrity of our media, which should be at the centre of our democracy. The principles at stake go to the heart of the country we believe in. They are about whether we allow power to be exercised without responsibility, about whether the responsibility we need goes right to the top of our society, and about the truth that no corporate interest should be able to write the law or be above the law.

[Mr William Cash (Stone) (Con)]

Does the right hon. Gentleman agree with the point that I put to the Prime Minister earlier, which is that it would be incongruous to have terms of reference for this particular inquiry—most of the terms of reference having been announced—that exclude the sound and visual medium? We talk of “the media” generally, but most of the argument turns on the question of the word “press” and newspapers. Should the definition not be extended?

[Edward Miliband]

I am sure that that point will be considered, but what I say to the hon. Gentleman is that the abuses that we have seen are in our newspaper industry, and we want this inquiry to get on and concentrate on where there have been abuses. It will, of course, examine cross-media ownership, and I think it is right for it to do so.

This debate is also about the relationship between private power and the power of people, given voice by this Parliament. We need strong entrepreneurial businesses in this country, but we need them to show responsibility, and in these highly unusual circumstances it was right that Parliament intervened. The case was clear about why the stakes were so high in this bid—I will say something about that—about why the revelations of the recent past comprehensively undermine this bid, and about why the motion was necessary. I will deal with those points briefly.

--- Later in debate ---

[Sir George Young]

It makes sense to allow the inquiry to take place before we pronounce a verdict on whether there is comparability with what happened in America, but the way that we have responded was the right way to respond, rather than to indulge in the sort of cover-up that happened over the Atlantic.

The House is clear that justice should be done. The Government are doing everything we can to make that happen. All Members will remember the scandal over parliamentary expenses that engulfed the House two years ago, almost to the day. Illegality and gross misconduct by a few, cover-ups and a lack of transparency, and the failure of self-regulation were a toxic mix that led to a dramatic change in how Parliament was perceived by the public, with the reputation of the majority tarnished by the actions of a minority.

I see parallels between what happened to us and what is now happening to another important pillar of any democracy, namely a free press. While there are parallels, there are also lessons. As with expenses, the right approach to the current situation is to reach political agreement on the right way forward, to ensure much greater transparency and to move away from self-regulation to independent regulation without impeding the media’s ability to fulfil its democratic role.

[Mr Cash]

Will my right hon. Friend give way?

[Sir George Young]

I will make progress, as many Members wish to speak. The police investigation, the inquiry that the Prime Minister launched today and the ongoing inquiries being carried out by Select Committees must now be allowed to get on with their crucial work.

[Mr Cash]

On a point of order, Mr Speaker.

[Mr Speaker]

I hope that it is a point of order.

[Mr Cash]

We have been told that there are published terms of reference and it would be helpful to have access to them. We do not know where they are and have not been told what they are.

[Mr Speaker]

That is a very important point, but it suffers from the disadvantage of not being a point of order.

--- Later in debate ---

[Mr Whittingdale]

My right hon. Friend the Secretary of State acted on the basis of the advice that he received from Ofcom. The original advice was that he should refer the bid, but Ofcom then came back and said that the undertakings being given by News Corporation were sufficient and that there was no longer a need to do so. At every stage, he has acted on the advice of the independent regulator.

I want to say a few words about BSkyB, which has been an extraordinarily successful company. It has pioneered choice in television and introduced the personal video recorder, high-definition television and 3D television. It has recently passed the 10 million home mark. It has been incredibly successful. It is right that its ownership should be subject to very close scrutiny. I would also like to commend it on its most recent announcement of £600 million of annual investment in UK content, which will do a tremendous amount of good.

The test that my right hon. Friend the Culture Secretary put up to be examined was that of plurality. That is about Sky News. It is worth saying that throughout this saga, Sky News has displayed the same objectivity and independence in its coverage of matters concerning its parent company—or the company that sought to become its parent company—as it has in other matters.

[Mr Cash]

We heard earlier about the published terms of reference set out by the Prime Minister. We got them from the Library and they refer to a

“judge-led inquiry into phone hacking”—

but it is confined to the press. Would my hon. Friend, having been consulted and with his Committee meeting tomorrow, agree to look into these terms of reference? Does he agree that sound and visual media journalism has to be included to make the inquiry fully comprehensive?

[Mr Whittingdale]

I have not yet heard any suggestion that similar activities have been undertaken by television or radio companies, but, should that be uncovered, I have no doubt that the judge would request a broadening of the terms of reference to include it. The important thing is that the judge should follow the evidence wherever it leads. As I understand it, that is the undertaking that the Prime Minister gave.

Some have expressed the concern that Sky News might go the way of Fox News. Fox News is very successful, but I do not believe that it would ever succeed in this country. We have an entirely different climate. Nevertheless, that was the key issue under consideration when we examined plurality. However, the revelations over the course of the last two weeks have raised a much more serious issue—the “fit and proper” test and whether or not News Corporation meets it, not just in respect of its 100% ownership, but now in respect of its 39% ownership of BSkyB. That is something that Ofcom will want to consider, but I believe that Ofcom is correct in saying that it should act on the basis of evidence rather than allegation. These matters need to be pursued to the very end. We need to discover the truth, and if it turns out that very senior executives in News Corporation are involved in, or had knowledge of, what has been going on, that will raise questions about the fit and proper test. I have no doubt that Ofcom will pursue them.

It might take years for us to find the full extent of what has been happening and to get to the truth, but if that is what it takes, that is what we must do. This episode must never be allowed to recur. We need to find out the full extent of it. We will try to begin to uncover some of the truth on Tuesday, if those people are willing to appear before us, but this judicial inquiry and the police inquiry must find the truth.