HL Deb 19 November 1990 vol 523 cc572-4

3 p.m.

Lord Jay asked Her Majesty's Government:

Whether they will refer to the Monopolies and Mergers Commission the proposed merger between Sky Television and British Satellite Broadcasting.

The Minister of State, Department of Trade and Industry (Lord Hesketh)

My Lords, the case is currently being considered by the Office of Fair Trading in the normal way. My right honourable friend the Secretary of State for Trade and Industry will consider whether or not to make a reference to the MMC when he has received advice from the Director General of Fair Trading. Until he announces his decision, it would be inappropriate for me to comment on this merger.

Lord Jay

My Lords, do we really have adequate parliamentary authority in these matters when it is apparently possible for one man, who is not even a British subject, to control one-third of the British press and also a large slice of the television network?

Lord Hesketh

My Lords, the noble Lord, Lord Jay, will not be surprised when I say that I am unable to comment on his allegations.

Baroness Birk

My Lords, can the Minister tell us when the Government intend to put before Parliament the subordinate legislation promised during the passage of the Broadcasting Bill which would limit newspaper owners' interests in domestic and non-domestic satellite services? The delay is causing the IBA great difficulty in dealing with BSB's breach of contract by its merger with Sky.

Further, can the Minister say how the Government intend to protect the leading role taken by BSB in developing the D-MAC technology as the European standard? This provides a much better quality picture and would prevent the domination of European television by Japan.

Lord Hesketh

My Lords, as always, I am most interested in the noble Baroness's questions. However, I must point out that her questions, especially the latter one, are wide of the Question on the Order Paper, which specifically refers to the Monopolies and Mergers Commission.

Baroness Birk

My Lords, if the noble Lord does not want to answer the second question I shall return to it on another occasion. However, with the greatest respect, the first question is absolutely right and to the point. Is not the subordinate legislation meant to deal with the whole question of cross-media ownership and the monopoly situation? For the Minister not to answer a question on when the subordinate legislation is due to pass through Parliament is in my view somewhat remiss.

Lord Hesketh

My Lords, the noble Baroness will not be surprised to learn that I do not have the actual day and specific time in this respect. However, I am reliably informed that it will be within the next 12 months.

Baroness Phillips

My Lords, will the Minister accept what my noble friend said? I was in the studios of BSB on Saturday. We now have a situation where, once again, an entire staff is totally demoralised. The people do not know whether their jobs will last one week or two weeks, or one month or two months. The Government should realise that the BSB employees may well be their voters; and I can assure them that they will need some of those votes. I appeal to the Government: will they move forward as rapidly as possible and deal with the subject matter of the question?

Lord Hesketh

My Lords, the relationship between the two companies and their employees is a matter for them; it is not a matter for the Government.

Lord Cledwyn of Penrhos

My Lords, when Mr. Rupert Murdoch met the Prime Minister recently to discuss these matters, did she say that she was in favour of the merger or did she then consult the Home Secretary about the possibility of a reference to the Monopolies and Mergers Commission?

Lord Hesketh

My Lords, my right honourable friend the Prime Minister did not inform the Secretary of State for Trade and Industry about her meeting with Mr. Murdoch. On the only occasion that Mr. Murdoch tried to speak to the Secretary of State, he was not available.

Lord Jay

My Lords, if the Minister cannot answer my first Question, can he say whether Mr. Murdoch in his periodical visits to No. 10 Downing Street counts as a family friend?

Lord Hesketh

My Lords, a large number of people constantly visit Downing Street.

Baroness Birk

My Lords, I am sorry, but I cannot accept the last answer given to me by the Minister. It is absurd to say that the subordinate legislation will be introduced within a year. The IBA is having to delay the decision it must make about BSB and whether it should withdraw the contract. There are many people involved in this matter. Will the noble Lord rethink his answer? A decision is expected to be taken by Parliament within the next few weeks, and certainly before Christmas. Surely he cannot really mean that it will be within a year.

Lord Hesketh

My Lords, I gave that answer in order to be helpful to the noble Baroness. In my first reply to her, I pointed out that her question was wide of that on the Order Paper. I was in receipt of information which I hoped would be or help to her. I can go no further than the original answer I gave.