Minister of State for E-Commerce and Competitiveness, Stephen Timms, has hinted that the Government is unwilling to reconsider its plans to allow foreign ownership of UK media assets, despite the threat of significant opposition in the House of Lords.
Earlier this week, head of the Joint Scrutiny Committee on the Communications Bill, Lord Puttnam, warned the Government that up to 60 Labour peers could rebel against the proposals (see
Puttnam Warns Of Defeat Over Channel Five Ownership), which effectively clear the way for non-EU corporations, such as Rupert Murdoch’s News International, to buy Channel Five.
However, speaking at ISBA’s Annual Advertising Conference yesterday, Timms insisted that there are “great benefits” to be had from opening UK business to overseas investment and said that the Communications Bill was “clearly intended to achieve this.”
The Government has previously been unwilling to compromise on the issue of foreign ownership and Timms expressed his confidence that the proposal will be included in the Communications Bill, when it becomes law later this year.
However, the Minister of State for E-Commerce and Competitiveness acknowledged that the issue would be a source of “lively debate” in the House of Lords and pointed out that the Government was willing to make improvements to the Bill, where strongly justified.
Timms went on to address the controversial issue of Ofcom’s power over the BBC, saying that the Corporation occupies a “distinctive position” in the broadcast market and as such will have a unique relationship with the new super-regulator.
This issue was also picked up by the Prime Minister’s senior policy advisor, Ed Richards, who assured advertisers that it would be a “great mistake” to assume that the BBC would not come under the regulation of Ofcom.
Richards insisted that the Corporation would be subject to tier one and tier two regulation and the full-force of the competition laws. However, he went on to explain that the BBC would not be exposed to the same backstop regulatory powers as commercial broadcasters due to the way it is funded.
He said: “The BBC differs fundamentally from its commercial rivals in that it receives public money. With this in mind the backstop regulatory powers must lie with the Secretary of State for Culture, Media and Sport.
The BBC’s licence fee has been the focus of much attention over previous weeks, after influential Government advisor, Barry Cox, called for its abolition, suggesting instead that the Corporation be partially funded by subscription
