Cross-media Ownership (Hansard, 12 December 1994)

§ 10. Mr. Lidington
To ask the Secretary of State for National Heritage what representations he has received about the Government's review of cross-media ownership.

§ Mr. Dorrell
I have received 64 written representations from a wide range of individuals and organisations. These have been supplemented by a number of meetings at ministerial and official levels.

§ Mr. Lidington
Does my right hon. Friend accept that the making of programmes for broadcasting is now a very competitive international industry, and that there is therefore a strong case for relaxing the present rules on cross-media ownership to enable British companies to compete effectively in that international market?

§ Mr. Dorrell
That view has been argued by some in the context of the review, and we are currently examining that argument along with many others. Whatever happens in future to the cross-media ownership regulation, the programme-making industry in Britain will continue to grow substantially. It provides a major opportunity for Britain in business terms, because of the employment that it creates and the wealth that it generates. It is also important in terms of the wider exposure that it gives to our way of life and ideas. The programme-making industry is one of the success stories of recent years, and whatever emerges from the cross-media ownership review should be determined, at least in part, by a commitment to ensure that that continues.

§ Mr. Grocott
Before the Secretary of State makes any further decisions on media ownership, would it not be a simple matter of prudent common sense to have a thorough review of the disastrous decision on media ownership that was made by his predecessor almost 12 months ago today when he relaxed the rules on the ownership of television companies? The consequences of that have been a massive 51 per cent. increase in profits by Carlton since it took over Central, bosses making a great deal of money, studios closing, many people losing their jobs and many others moving to short-term working. In view of that, does it not make simple common sense to ensure that, before changes for the future are made, one looks to the mistakes that one has made in the past?

§ Mr. Dorrell
It is an interesting reflection on the hon. Gentleman's presentation of his case that he spoke about the impact of the change on the company, the shareholders, the directors, the employees and the company's cost base, but did not volunteer a word about the impact on the viewer. It is the viewer who should be the driver of our policy on cross-media ownership.

§ Mr. Fabricant
Does my right hon. Friend agree that some British companies are suffering disadvantages compared with companies in Europe? Does he not think it better that, if there is to be an expansion of cross-media ownership and the communications industry, it should be by British companies, and specifically not by Italian and German companies?

§ Mr. Dorrell
My hon. Friend is right to draw attention to the opportunities for British companies to expand and fill the fast-growing international market for programme making. In reply to my hon. Friend the Member for Aylesbury (Mr. Lidington), I spoke about our success in 604 that endeavour to date and about my commitment to ensuring that whatever emerges from the cross-media ownership review should be consistent with our continued future success in that sector.

§ Mr. Allen
Does the Secretary of State accept that we understand why he wishes to delay the cross-media ownership review further? Given the media coverage that his Government are getting at the moment, he does not want to upset anyone in the media. Will he look at two areas in the review? First, rather than imposing an inflexible solution, will he consider talking to those in the industry to see whether there is a possibility of securing agreement throughout the different branches of the media? Secondly, will he consider the viewers, readers and listeners who are the consumers of these various products and understand that they want clear plurality and diversity—a choice of different mediums? Will he ensure that whatever emerges from the review he will sustain that choice?

§ Mr. Dorrell
Yes and yes.

§ 12. Mr. Dalyell
To ask the Secretary of State for National Heritage if he will make a statement on his consideration of the problems of cross-media ownership and predatory pricing.

§ Mr. Dorrell
The Government are actively considering the way ahead on media ownership, and will make an announcement in due course. Alleged predatory pricing is a matter for my right hon. Friend the President of the Board of Trade.

§ Mr. Dalyell
What possible purpose do the right hon. Gentleman and the President of the Board of Trade imagine that Mr. Murdoch has in mind other than putting in jeopardy The Guardian or The Independent or even The Daily Telegraph by pricing his copies of The Times at 20p?

§ Mr. Dorrell
With all respect to the hon. Gentleman, I am not sure that Mr. Murdoch's motives are my concern. My concern is the enforcement of the law and the application of principles of public policy. The suggestion that Mr. Murdoch has been engaged in predatory pricing of The Times was examined by the Director General of Fair Trading within the terms of the law and he concluded that there was no evidence to support that. That seems to me, within the law as it stands, to dispose of the issue.