HC Deb 25 November 1987 vol 123 cc255-6
13. Mr. Bruce

To ask the Chancellor of the Duchy of Lancaster what representations he has received following the acquisition of a 14.7 per cent. stake in the Pearson group by News International; and if he will make a statement on competition policy for national newspapers.

Mr. Kenneth Clarke

Eight letters have been received by my Department, including one from the hon. Gentleman. Major newspaper mergers are regulated by special provisions in the Fair Trading Act 1973, and we shall rigorously examine all applications for consent which are put to us.

Mr. Bruce

Will the right hon. and learned Gentleman accept that there is real anxiety among people working in the Financial Timesat the implications of the acquisition of a 14.7 per cent. stake in the parent corporation by Rupert Murdoch's company? Does he accept that the increasing concentration of ownership of the British national press has reached a level which cannot be in the best interests of the freedom of the press? Is it not time the Government came forward with a review of the right way to deal with competition and ensure that we have a free national press?

Mr. Clarke

The matter would come to a head only if any attempt were made to acquire a controlling interest in the newspaper and in the group, which would trigger the provisions of the Fair Trading Act. That would involve the ability to own or control about 25 per cent. of the votes cast at a general meeting of the company. If that were to happen, the special newspaper provisions of the Fair Trading Act would come into play. My right hon. and noble Friend has already indicated that we are seeking to improve the workings of that part of the Act. We are asking the Monopolies and Mergers Commission to report back more quickly when references are made, and we are looking at ways in which this part of the Act can be made to work more effectively.

Mr. Aitken

While recognising that Mr. Murdoch's description of himself as a friendly investor in the Financial Timesgives a new and bloodcurdling meaning to that phrase, in all seriousness may I ask whether my right hon. and learned Friend accepts that there is an important public interest dimension to this which demands a firm assurance from the Government? Will my right hon. and learned Friend promise the House that in the event of Mr. Murdoch making a takeover bid for the Financial Times,the necessary Government consent under the Fair Trading Act will be debated in the House before a final ministerial decision is made, and not afterwards, as happened in such a shameful way in the cases of Today, The Sunday Timesand The Times?We must have decisions taken here first.

Mr. Clarke

I recognise that my hon. Friend is always a friendly questioner on the subject of this and similar acquisitions. I am being reasonably forthcoming on hypothetical questions which would arise only if Mr. Murdoch sought to exercise control over this newspaper. The Fair Trading Act 1973 covers that situation. I understand what the views of hon. Members on both sides of the House will be if this occurs and I assure my hon: Friend that we shall apply the Act as it is intended to be applied.

Mr. Buchan

Does the Minister recall the takeover of the Todaynewspaper earlier this year, which the Government meekly accepted, like lambs? This gave Mr. Murdoch 35 per cent. control over the popular press in this country. The triumvirate of Maxwell, Murdoch and Stevens controls over 80 per cent. of the popular press. Two hundred weeklies come under the control of Mr. Murdoch. Is this not a fearful control over ideas, opinions and attitudes? Should it not be prevented, and should the Government not operate a proper anti-monopoly policy?

Mr. Clarke

The special provisions of the Act do not apply, and were never intended to apply, where there is financial urgency. In the case to which the hon. Gentleman refers there was an imminent threat of the newspaper closing. It had only a small circulation. I cannot answer hypothetical questions, but the hon. Gentleman must ask himself whether that situation could apply to any attempted acquisition of the Financial Times.It is on that basis that we shall decide whether the Fair Trading Act applies and whether reference should be made to the MMC. No application for consent has been made, so there is a limit to how forthcoming I can be.

Mr. Dykes

Although I support the comments of my hon. Friend the Member for Thanet, South (Mr. Aitken), which received great support from both sides of the House, will my right hon. and learned Friend bear in mind that there is a big difference between a minority stake, which is equivalent to raising money or gaining financial support, or a rights issue, and seeking to intervene in the affairs of a newspaper? Will my right hon. and learned Friend undertake to ensure that the Financial Times,a masterpiece of objectivity and balance, remains truly independent?

Mr. Clarke

I share my hon. Friend's admiration for the Financial Times,which is one of this country's strongest journals and has a great international reputation. We shall have a duty to address the Act if anyone attempts to acquire a controlling interest. My hon. Friend can rely on Ministers to take their duties seriously if such an event occurs.

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