Government to relax local media ownership rules
The government is looking at introducing a fast-track legislation later this year to relax ownership regulations in a bid to help local newspaper and radio companies.
The quick-fix bill, which would have relatively few clauses, would allow the government to change existing laws without introducing new primary legislation, according to reports.
However, it is unlikely to extend to wider relaxation of UK media ownership rules but will allow greater consolidation within the press and radio industries.
If the government goes ahead with the short bill, it would also enable them to push through some of the recommendations made by Lord Carter in his interim Digital Britain report, which was published in January (see Broadband for all by 2012).
The fast-track legislation, which could be dealt with via committees as opposed to parliament, is thought to be a viable option as there is no time in the parliamentary schedule to push through primary legislation.
Any major changes to cross-media ownership rules would require primary legislation, however, culture secretary Andy Burnham is believed to have the power to relax rules that relate to regional and local newspapers and radio companies.
As requested by Carter, regional media ownership rules are being reviewed by the Office of Fair Trading (see OFT launches local media ownership review).
The OFT confirmed that the main focus of its review is on print media, looking at areas such as the extent to which regional newspaper markets are self contained either in relation to advertisers or readership, and the extent to which PSBs, local authorities and other public bodies that provide news are in competition with local commercial media companies.
If the OFT recommends a relaxation of ownership rules, there will be more room for consolidation in regional print, and newspaper publishers will have the opportunity to buy more local radio stations.
At the time, Amelia Fletcher, senior director of mergers at the OFT, said: “Local and regional media is an important part of the economy, which is currently subject to a range of pressures.
“Initially we are asking for views on the key issues the review should focus on. Following this we will engage in detail on how the current media merger regime is operating in both protecting competition for relevant audiences and advertisers, and maintaining media plurality,” she added.
The review is being overseen by a group of senior officials from the OFT, Ofcom, the Competition Commission and the Department for Business Enterprise and Regulatory Reform.
The OFT plans to submit the findings to the government ahead of Lord Carter’s final Digital Britain Report, which is due in the summer.
Last week, Ofcom also called for regulatory and legislative changes to ensure the future of local radio stations (see Ofcom calls for regulatory changes to ensure future of commercial radio).
In its submission to the government, in response to Carter’s report, the media regulator suggested restructuring “both the analogue and digital radio landscapes, in order to secure the future of commercial and community radio in the face of increasing financial and competitive pressures”.
A spokeswoman for Burnham’s department for culture, media and sport said: “The interim Digital Britain report made clear some areas are likely to need legislation but work on the final report is ongoing and ministers have made no final decisions.
“The final report is due this summer. Until then, we can’t speculate on the possibility or content of future bills.”
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