Cross-media Promotion (Hansard, 16 May 1991)

§ Mr. Lilley

I announced on 13 March that I welcomed the publication of the Sadler report, and that I would be willing, during a period of six weeks, to hear the views of interested parties before making any final decisions. I am grateful to those who responded, both to me and to the Home Secretary, with whom I have discussed the way ahead.

The newspaper industry

The report recommended that the newspaper industry should be invited to establish a code of practice on cross-media promotion and suggested the points that such a code should cover. Virtually all those who responded welcomed this recommendation in principle. There have been encouraging indications from the industry itself that it is willing to draw up a code.

The recommendation concerning premium rate telephone services attracted less comment in itself. Those who did mention it specifically were in favour.

I have therefore decided to pursue the Sadler recommendation: The newspaper industry should be invited to establish a code of practice on crossmedia promotion".

I also accept the related recommendation: The promotion of premium rate telephone services should be governed by the provisions of the general code of practice on cross media promotion which…the newspaper industry should be invited to establish".

I have written today to the chairman of the Newspaper Publishers Association and the director of the Newspaper Society, which between them cover national and regional newspapers, welcoming the recommendations that newspapers both individually and nationally should draw up codes of practice on cross-media promotion, and inviting them to take these recommendations forward on behalf of the industry.

The BBC's promotion of its magazines

The Sadler report recommended that the Director General of Fair Trading should be asked to consider referring to the Monopolies and Mergers Commission the BBC's practice in respect of the use of its air time to promote its magazines, because in his view this might be distorting competition. The overwhelming majority of those who responded to my invitation to comment strongly supported this recommendation. The Home Secretary and I have also seen the BBC.

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After reflecting carefully on all the arguments regarding the BBC's promotional activities, the Home Secretary and I have decided to accept the recommendation.

The issues are complex and a reference to the Monopolies and Mergers Commission will allow all sides of the argument to be heard by an independent body which has considerable experience in assessing the public interest where competition is in question. If I were to reject the Sadler recommendation I would be failing to acknowledge that such questions deserved careful consideration.

I have written to the Director General of Fair Trading today to tell him of my and the Home Secretary's views.