The Government now looks almost certain to bow to pressure from the House of Lords and accept Lord Puttnam’s plurality test amendment to the Communications Bill, in a move that will end the long running deadlock over the relaxation of the media ownership regulations (see Puttnam Threatens To Quash Communications Bill).
The proposal to impose a public interest test on any large media group wanting to buy ITV or Channel Five has been gaining growing support in the House of Lords and peers from all parties have vowed to vote down the Communications Bill if the amendment is rejected (see
Government Faces Growing Threat From Rebel Peers).
The Government has previously been unwilling to compromise on the issue and Culture Secretary, Tessa Jowell, claims the decision to open the UK media market to non-European investment is “right for the industry, the public and the country as a whole”. However, it now looks increasingly likely that ministers will be forced to accept the proposal if the Communications Bill stands any chance of gaining royal approval before the summer recess in the third week of July.
A spokesman for the Department of Culture Media and Sport, said: “We are concerned that Lord Puttnam’s plurality test may restrict competition for large media owners, but we are not ideologically opposed to the amendment and are giving it serious consideration.”
Reports suggest that Tessa Jowell and Lord Puttnam have already reached an agreement and are in the process of drawing up an amended clause. However, an official announcement not is expected to be made until next week when the issue is debated in the House of Lords.
The Government has already been forced to accept two amendments to the Bill (see Lords Flex Muscles In Communications Bill Debate). The first of which called for Ofcom to place a greater emphasis on protecting the rights of ordinary people and the second will require the new super-regulator to play a greater role in the promotion of broadband technology in rural and underprivileged areas.
