Liberal democrat peer, Lord McNally has narrowly failed to enforce changes to the Communications Bill which would have prevented Rupert Murdoch from buying a UK terrestrial TV channel, such as Channel Five.
Despite support from across the political divide, the proposed amendment (see
Lib Dems May Scupper Communications Bill Compromise) was defeated by 167 votes to 137.
Prior to the vote, Lord McNally gave the following warning, according to The Guardian: “In the 30s we used to fear fascists would take over the government, then control the press. In the 21st century we may be in danger of the fascists taking control over the press and then control of the government.”
He further claimed that failure to include the amendment in the bill would create a “gross concentration of power” and constitute a “threat to democracy”.
However, Labour loyalists won through with many peers attaching their support to the Government’s compromise measure, the “plurality test”, agreed with Lord Puttnam (see Government Ends Media Ownership Deadlock).
The test, which will form part of the new merger regime introduced by the 2002 Enterprise Act, will allow the Secretary of State for Trade and Industry to instruct Ofcom to report on the public interest implications of controversial mergers.
However, a cross party alliance of peers succeeded in a bid to to strip the new communications super-regulator, Ofcom, of its power to rule on misleading advertising. The Advertising Standards Authority will maintain its power and jurisdiction on appropriate advertising.
