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Jowell Moves To Defend Foreign Ownership Deregulation

Jowell Moves To Defend Foreign Ownership Deregulation

Culture Secretary Tessa Jowell has strongly defended the proposed liberalisation of the UK media regulations, which will allow the foreign ownership of UK media assets.

Speaking at yesterday’s Westminster Media Forum, Jowell pledged her commitment to proposals put forward in the Communications Bill, saying: “Our policy is simple, we will remove ownership rules where possible because unnecessary regulation inhibits growth, investment and innovation.”

Jowell remains adamant that US ownership of UK television assets will not trigger a decline in programming standards, adding: “I object to any suggestions that I will preside over a dilution of quality TV. The media environment in the US is different – it has always had fewer content controls and has never had anything like our commitment to PSB. But US companies operating here will have to match our quality standards if they are to win an audience.”

Jowell’s comments come as the government prepares to face skirmishes with the House Of Lords (see Puttnam To Lead Media Ownership Rebellion), which is currently debating the bill. Critics claim it has one main function, namely to remove all obstacles to Murdoch seizing control of Channel 5, overshadowing ITV and becoming the main competitor to the BBC. The proposed bill will also remove existing laws that prohibit anyone who has 20% or more of newspaper readership from buying into a TV station.

News Corp chairman Rupert Murdoch maintains he has no plans to take over Channel Five (see Murdoch Denies Interest In Five) but Sumner Redstone, chairman of Viacom, has refused to rule out a bid for ITV (see Viacom Eyes Prospect Of ITV Takeover). Opponents of the bill believe US ownership will lead to a decline in programme quality and have huge ramifications for the already fragile media ecology in the UK.

Over half of the UK public is against the government’s proposals to allow the foreign ownership of UK media assets, according to research from Taylor Nelson Sofres. Commenting on the proposals, a spokesperson for the National Union Of Journalists (NUJ), said: “There is nothing to be gained and a lot to lose. These [US media groups] are companies that know nothing of the public broadcasting system and their sole interest is the extraction of profit to boost their currently dwindling fortunes.”

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