§ 3.18 p.m.
§ Baroness Miller of Hendon asked Her Majesty's Government:
§ What steps they consider that the Office of Telecommunications (Oftel) should take in the public interest to investigate and if need be to regulate the proposed £0.5 billion joint venture between Sky TV and British Telecom to subsidise set-top black boxes to receive digital TV and to develop interactive services.
§ The Minister of State, Department of Trade and Industry (Lord Simon of Highbury)My Lords, Oftel already regulates the operation of so-called "conditional access" services for digital television; that is, services which will control access to broadcast television through digital set-top boxes. Oftel has broad powers covering all questions relating to subsidy and operation of the set-top boxes in respect of broadcast services. I can also confirm that the Government intend, at the earliest opportunity, to extend the scope of the existing regulations to provide the same safeguards covering the use of the same "black boxes" to control access to interactive services.
The proposed joint venture will be subject to scrutiny by the European competition authorities and by the Director-General of Fair Trading; since Ministers may have some statutory role to play as part of this process, I cannot comment further at this time.
§ Baroness Miller of HendonMy Lords, I thank the Minister for that Answer, which is topical since the matter appeared in the Financial Times only yesterday. Perhaps I may take this opportunity to welcome the Minister to the Dispatch Box to answer our questions and tell him how pleased we are to see him here. Do the Government share the reported concern of the Independent Television Commission about the ever-increasing influence of Mr. Rupert Murdoch, a foreign citizen who controls five of our national newspapers with a readership of 26 million, and who, through cable and satellite television, also controls one of Britain's main news channels with worldwide viewers numbering 70 million? What do the Government propose to do about that?
§ Lord Simon of HighburyMy Lords, I thank the noble Baroness for her kind welcome. It is a pleasure to stand opposite her twice running. I congratulate her on the topicality of her Question. As to bidders and competitiveness, it is clear that the ITC also has a regulatory responsibility to ensure that there is quality in broadcasting, competitiveness in the market place and free choice. Therefore, let the ITC take its decisions, backed up, of course, by the OFT and the Commission. I believe that it is for them to judge at what point the offerers of services have too much power. I leave that to the authorities to whom it applies.
§ Lord Thomson of MonifiethMy Lords, is the noble Lord aware that we on these Benches welcome the Minister's response? However, the Question comes from a side of the House which when in Government steadfastly opposed any effective regulation of the Murdoch domination of these matters. Will the new Government take a fresh look at competition in the media field generally not only in the matter of black boxes but in the matter of the new award of multiplex franchises by the ITC, which has also been referred to in the press in the past few days? If I may put a Scottish point of view, Scottish Television is being allowed to have excessive domination not only in the west of Scotland but in taking over the excellent regional franchise holder, Grampian Television.
§ Lord Simon of HighburyMy Lords, I thank the noble Lord for his question. I cannot comment on the position taken on media bids in the past. I am so young in the House that I have not yet caught up. I believe that we must strike a careful balance between the capacity to bring on new technology, where there will be few players with the ability to fund these options, and the creation of opportunities that this wonderful revolution in information services provides. The challenge to look again at competition policy is probably an early one. We want to make the offers available and see who is there to bid, and then we will consider competition issues.
§ Lord InglewoodMy Lords, on 4th June the noble Lord, Lord McIntosh of Haringey, was asked by my noble friend Lord Lucas whether the Government had confidence in the ITC, which was taking crucial decisions about digital terrestrial television. The Minister's response was (how shall I put it?) somewhat 1344 opaque. I have advised the Minister now at the Dispatch Box—whom I should also like to welcome—of my intention to seek further clarification. Bearing in mind that confidence is like virginity—either it exists or it does not and there is no scope for qualification—can the Minister tell the House whether the Government have confidence in the ITC? I ask the Minister to bear in mind that in giving his reply any qualification must mean that his response is negative.
§ Lord Simon of HighburyMy Lords, I also thank the noble Lord for his welcome. I am still trying to assemble the full import of the last sentence of his Question. The answer is that the Government have full confidence in the ITC.
§ The Earl of NortheskMy Lords, do the Government have any plans to make use of set-top technology as the means of delivering their promise to install Internet capability in schools?
§ Lord Simon of HighburyMy Lords, I thank the noble Lord for his Question. Currently, we do not have any plans because the state of the development of the technology is still open. I believe that it is an extremely good suggestion and it is one that we shall take seriously and comment upon at a later stage when the technology is available.
§ Lord AnnanMy Lords, can the Minister confirm that after next year we will be unable to see rugger internationals involving England, Scotland, Ireland and Wales unless we watch them on Sky?
§ Lord Simon of HighburyMy Lords, I was unaware of it because of late I have been more inclined to watch football than rugby. However, the consumer should always have choice. If not, the competitive bidding process is not working correctly.
§ Lord AnnanMy Lords, in other words is the Minister willing to review the list of sporting events that should be available to terrestrial television?
§ Lord Simon of HighburyMy Lords, I ask the noble Lord to put the question to the appropriate department.