Media Ownership (Hansard, 10 May 1995)

§ 1. Mr. Hinchliffe
To ask the President of the Board of Trade what is his policy in respect of concentrations of ownership of the media. [21942]

§ The Parliamentary Under-Secretary of State for Corporate Affairs (Mr. Jonathan Evans)
The Government are currently reviewing their policy on media ownership and my right hon. Friend the Secretary of State for National Heritage will make the Government's views known once that process has been completed.

§ Mr. Hinchliffe
The Under-Secretary will be aware that, in a debate exactly a fortnight ago, hon. Members on both sides of the House expressed their concern about the serious implications of the Murdoch News Corporation's involvement in the proposed rugby super league. What steps have the Government taken to evaluate the implications of that development, especially for media coverage of British sport as a whole?

§ Mr. Evans
If a monopoly of televised rugby league emanates from any registrable agreement, that matter would be considered under the provisions of the Restrictive Trade Practices Act 1977, not under the monopolies legislation. In those circumstances, it would be for the Director General of Fair Trading to look into the new agreements. As I know that the lion. Gentleman has taken an exceptional interest in this matter, I am sure that he will draw his concerns to the attention of the director general.

§ Mr. Fabricant
Does my hon. Friend agree that there is a great deal of obsession in this place with News International, yet Longman Pearson, The Guardian group and Associated Newspapers all have a considerable degree of cross-media ownership covering newspapers, television and other media? Does he further agree that mechanisms exist—such as the Monopolies and Mergers Commission and the Office of Fair Trading—to ensure that there are no monopolies in the media?

§ Mr. Evans
I have already referred to the structure of our current competition law. However, within the context of the question asked by the hon. Member for Wakefield (Mr. Hinchliffe), the whole matter of cross-media ownership is complex. The issues outlined by my hon. Friend the Member for Mid-Staffordshire (Mr. Fabricant) make that clear. For that reason, the whole matter is currently the subject of a review and it would be wrong of me to pre-empt its outcome.

§ Mr. Wilson
Does the Under-Secretary agree that my hon. Friend the Member for Wakefield has raised a subject of considerable importance relating to monopoly and, in particular, the coverage of British sport? I understand that, in the case of rugby league, there is a monopoly issue because the contracts will exclude non-Murdoch players from international competition. Does the hon. Gentleman accept that the implications of that go far beyond rugby league? Is it not time to send out a strong signal that the Government are not prepared 730 to allow whole sports to be bought, with access to them then being conditioned by people whose interests are in the media rather than in the sport?

§ Mr. Evans
The question raises two distinct issues. The first relates to the review of cross-media ownership, and I have made it clear that my right hon. Friend the Secretary of State for National Heritage is deeply involved in that. The Government will announce their policy at the appropriate time.
Within the context of the issue raised by the hon. Member for Wakefield, I have outlined the current structure of competition law. If the hon. Gentleman feels that he has real concerns which he believes should be raised in relation to other sports, I have suggested to him that he draw those concerns to the attention of the Director General of Fair Trading.

§ Mr. Peter Bottomley
May I return my hon. Friend to the question of predatory pricing? If News International has 37 per cent. of the daily national newspaper market, and if the Director General of Fair Trading satisfies himself that a sustained price cut will increase the losses of The Times, why is it fair and reasonable to allow that media concentration to continue and to hit the other newspaper groups that are trying to compete in the broadsheet market?

§ Mr. Evans
I am aware of the concerns which my hon. Friend has outlined on previous occasions in relation to this issue. He will be aware that the Director General of Fair Trading is the appropriate person for considering allegations of predatory pricing. The director general looked at the issue when the pricing war between major national newspapers began, and it is a matter that will continue to excite his interest.