Government Remains Undecided Over Radio Regulation

The government is yet to make a decision over radio ownership regulation, according to Culture Secretary, Tessa Jowell.

Writing in today’s Financial Times, Jowell claims that the government has agreed to 120 of the 148 recommendations made by Lord Puttnam’s Joint Scrutiny Committee. However, she adds: “There are a few issues on which the government still has to make a final decision; the most important is radio ownership.”

As the bill stands, the commercial radio sector’s ability to consolidate is severely limited. Supporters of the bill see it preserving a plurality of voices and interests in the commercial radio sector. However, many in the radio industry believe the market would be suffocated by the proposed rule there must be three independent radio stations, plus the BBC in any given region (see Radio Ownership Rules May Be Relaxed). Heavyweight media groups such as Capital and GWR have publicly condemned the plans.

“I have heard loud and clear the industry’s call for us to think again and deregulate further,” said Jowell. “But there have been plenty of voices expressing the opposite opinion too and we need to weigh the call for deregulation against our indissoluble principle that ownership rules must protect plurality.”

The industry is expecting the Communications Bill to be included in the Queens Speech next week, leaving little room for manoeuvre. Industry analysts are expecting a compromise, which will see two independent radio stations plus the BBC in each region.

DCMS: 020 7211 6200 www.culture.gov.uk

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