Channel 5 Process Condemned By Labour

The Labour Party yesterday condemned the process for allowing bids for Channel Five. Chris Smith, Labour’s national heritage spokesman, criticised the government for using existing rules when new regulations are being finalised for cross media ownership.

Although Mr Murdoch was not mentioned by name, the fact that the old rules allow BSkyB, the satellite venture 40% owned by Murdoch’s News Corporation, the right to bid for channel 5 is causing growing political controversy.

The current rules stop newspaper groups with holdings in ITV franchises from owning more than 5% of shares in channel 5. Murdoch’s BSkyB is able to take 20% because this would be its sole venture in terrestrial television.

Mr Smith said special rules were needed to ensure plurality of ownership, diversity of content, quality and regional strength.

All Channel 5 bids need to be in to the ITC by May 2nd.