HL Deb 10 July 1989 vol 510 cc4-5

2.42 p.m.

Lord Morris asked Her Majesty's Government:

What is their view of the appropriateness of the proprietorship of British Satellite Broadcasting Ltd.

The Minister of State, Home Office (Earl Ferrers)

My Lords, British Satellite Broadcasting Ltd. is an IBA contractor and it is subject to the provisions in the Broadcasting Act 1981 concerning the ownership of contractors. It is for the IBA, and not the Government, to apply those provisions.

Lord Morris

My Lords, I thank my noble friend for that Answer. Can he confirm that Her Majesty's Government are not so naive as to believe that it requires in excess of 50 per cent. ownership of a company in order to exercise considerable influence over a company? Bearing that fact in mind, are the Government not concerned about the recent ruling of the Australian Broadcasting Tribunal in regard to the case of Mr. Bond?

Earl Ferrers

My Lords, I wish to disabuse my noble friend of the conception which he has. The Government are not naive. I should tell him that Mr. Bond has 36 per cent. of the shares but he does not control the company; he controls 28 per cent. of the voting strength. If there were any attempt to increase his holding in British Satellite Broadcasting Ltd., it would be subject to the approval of the IBA. I should tell my noble friend that the IBA is responsible for the regulations. It has considerable powers to enforce the ownership regulations.

Baroness Birk

My Lords, is it not the case that the safeguards available for controlling British satellite broadcasting, as outlined by the Minister, do not cover Sky Television, which has four channels aimed at this country? It is running its satellite operations from this country and its owner, News International, controls 34 per cent. of national newspapers in the country. How is that consistent with the Government controls—which we understand from the statements made by the Government are to be exercised by the IBA and then the ITC—to ensure that no newspaper proprietor has a controlling interest in any TV station? Will the Government legislate to block this loophole?

Earl Ferrers

My Lords, British Satellite Broadcasting Ltd. is the official UK company involved in direct broadcasting by satellite. It will be regulated by the Independent Broadcasting Authority and its sucessor, the Independent Television Commission. We intend to take powers, in the proposed broadcasting legislation, for the Independent Television Commission to regulate all independent television services which originate from this company.

The noble Baroness will realise that there is a difference between a company which is "up-linked" to a satellite from this country, as opposed to one like the BSB, which is indigenous to this country.

Viscount Montgomery of Alamein

My Lords, can my noble friend say how many people receive satellite broadcasting, and whether he knows anybody who has ever seen a satellite broadcast privately?

Earl Ferrers

My Lords, the department in which I have the honour to be a participant has a fund of information. However, I do not know that it has the number of people who receive BSB, or rather Sky Television, broadcasts or have receivers. I have no doubt that anything initiated starts in a small way and, if it proves to be successful, then more people will join in. It is up to the companies to make sure that they are successful.