Influential Labour peer, Lord Puttnam, has strengthened his opposition to the Government’s Communications Bill, with a warning that it will face defeat in the House Of Lords unless plans to relax the UK media ownership regulations are abandoned.
In his toughest criticism yet of the proposed legislation, Puttnam is believed to have demanded that the Government ditch plans to allow foreign ownership of ITV and Channel Five, or face defeat at the hands of rebel peers that could quash almost three years of policy making (see
Puttnam To Lead Media Ownership Rebellion).
According to a report today’s Times, Puttnam said: “If there is no movement by the Government, I can absolutely promise there will be a vote and they could lose that vote. If they want their Bill they are going to have to have it without foreign ownership.”
Lord Puttnam led the Joint Scrutiny Committee on the Communications Bill and has been highly critical of plans to allow non-European investors to buy UK media assets or large newspaper groups to own Channel Five (see Puttnam Warns Of Defeat Over Channel Five Ownership). His campaign now threatens to delay the passage of the entire Bill, according to reports.
To be certain of becoming law by the end of this year, the Bill must make its way through Parliament before the summer recess in the third week of July. Failing this, the Government will have a final chance to pass the legislation in the early autumn. However, reports suggest that if this proves unsuccessful, the Bill will effectively be dead in the water.
So far, the Government has been unwilling to compromise on the issue of foreign ownership. Culture secretary Tessa Jowell recently issued a strong defence of the proposed legislation, claiming that the current regulations inhibit growth, investment and innovation (see Jowell Moves To Defend Foreign Ownership Deregulation).
However, it is now understood that the Government is so concerned about the possibility of losing the Bill, that it has begun discussions to see how much of the media legislation could be implemented by other means.
If the Communications Bill does fail to become law, it could scupper the proposed merger of Carlton and Granada and would prevent the much-anticipated consolidation of the commercial radio industry (see Forecasts).
