The following declarations of relevant interests was made:

Baroness Cohen of Pimlico (Non-Executive Director (paid), Informed Sources Limited; BBC Governor, 1994-99)

Lord Crickhowell (Council member, EURIM, a non-profit-making company interested in IT issues and providing briefings for MPs, MEPs, companies and civil servants on IT issues (unpaid); former Chairman of HTV Group Ltd)

Paul Farrelly (Member of NUJ; City Editor, The Observer, 1997-2001, including two weeks after the June 2001 General Election)

Mr John Grogan (active in all-party groups on media, cable and satellite, commercial public service broadcasting and BBC)

Lord Hussey of North Bradley (Chairman of Governors of BBC, 1986-1986)

Mr Andrew Lansley (Consultant to the Newspaper Society on the Broadcasting Bill 1996, before entering the House)

Lord McNally (Member of Board of EURIM, a non-profit-making company interested in IT issues and providing briefings for MPs, MEPs, companies and civil servants on IT issues (unpaid); employed by the public relations company Weber Shandwick as Vice-Chairman in the Corporate Division, a company whose clients include some with media interests, but Lord McNally was not currently working personally for any such clients, not was Weber Shandwick advising any client in connection with the draft Communications Bill)

Lord Pilkington of Oxenford (Chairman of the Broadcasting Complaints Commission, 1992-96)

Lord Puttnam (Consultancy Agreements with the Department for Education and Skills (i) to provide consultancy to support and advise on the development of joint projects with the Department for Culture, Media and Sport and others (2 January 2002 until 30 June 2002) (ii) to provide consultancy to support and advice on the development of curriculum online and a range of related activities for promoting e-learning and innovation (2 January 2002 until 30 June 2002); Chair (paid), Spectrum Strategy Consultants; Spectrum had no relevant projects at present; Honorary member of BECTU; Director of Anglia Television Group, 1982-99)

Brian White (Chairman (unpaid) of EURIM, a non-profit-making company interested in IT issues and providing briefings for MPs, MEPs, companies and civil servants on IT issues.

Lord Puttnam was called to the Chair.

The Committee deliberated.

Ordered, That the public be admitted during the examination of witnesses unless the Committee otherwise orders.—(The Chairman.)

The Committee further deliberated.

[Adjourned till Monday next at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Resolved, That the Committee do commission the Hansard Society to undertake an Internet dialogue on the subject matter of the Committee's inquiry.—(The Chairman.)

The following further declaration of relevant interest was made:

Baroness Cohen of Pimlico (Non-executive Director of the Defence Logistics Organisation, that had ownership of the MOD share of the radio spectrum).

The Committee further deliberated.

Resolved, That the Committee do seek the opinion of the House of Lords Delegated Powers and Regulatory Reform Committee on the draft Bill.—(The Chairman.)

The Committee further deliberated.

[Adjourned till Thursday at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till Monday next at Six o'clock.

Lord Puttnam, in the Chair

Three Lords members not being present, the Chairman adjourned the Committee till Thursday 23 May at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Ordered, That Tom Gibbons, Paula Carter, Phil Kirby and Sir Bryan Carsberg be appointed Specialist Advisers to assist the Committee in its inquiry into the draft Communications Bill.

—(The Chairman.)

Resolved, That the Committee do commission Peter Kiddle to prepare an analysis of the radio issues in the Bill.—(The Chairman.)

Resolved, That the Committee do commission Julian Dickens to organise a breakfast meeting for the purpose of exploring the Bill's capacity to cope with market reality and its implications for investment.—(The Chairman.)

The Committee further deliberated.

Draft Communications Bill: Ms Patricia Hodgson, Chief Executive, Ms Sarah Thane, Director of Programmes and Advertising, and Mr Richard Peel, Director of Public Affairs and Regions, Independent Television Commission, were examined.

Mr Paul Bolt, Director, Mr Norman McLean, Deputy Director, and Ms Andrea Millwood Hargrave, Research Director, Broadcasting Standards Commission, were examined.

Mr Tony Stoller, Chief Executive, Mr David Vick, Deputy Chief Executive and Director of Development, and Ms Eve Salomon, Director of Legal Services, Radio Authority, were examined. Mr Stephen Pride and Mr Stuart Brand, Bill Team, were in attendance.

[Adjourned till Monday next at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: Mr David Edmonds, Director General of Telecommunications, Oftel, was examined. Ms Wendy Hardaker and Mr John Arnott, Bill Team, were in attendance.

Mr Mike Goddard, Chief Executive, Radiocommunications Agency, was examined. Mr Laurence Green and Mr Tony Susman, Bill Team, were in attendance.

Mr John Vickers, Director General of Fair Trading, and Ms Margaret Bloom, Director of Competition Enforcement, Office of Fair Trading, and Dr Derek Morris, Chairman, Competition Commission, were examined. Mr John Arnott and Ms Wendy Hardaker, Bill Team, were in attendance.

[Adjourned till Thursday 30 May at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till Monday next at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: Ms Viviane Reding, EU Commissioner for Education and Culture, and Mr Gregory Paulger, Chef de Cabinet, were examined. Ms Rachel Clark and Mr Anthony Susman, Bill Team, were in attendance.

Mr Stephen Carter, Chief Operating Officer, NTL, and Mr Malcolm Taylor, Public Policy Adviser, Mr Howard Watson, Head of Networks, and Mr David Doherty, Managing Director, Broadband Content, Telewest, were examined. Mr John Arnott and Ms Wendy Hardaker, Bill Team, were in attendance.

Mr Peter Dunn, Director of Regulatory Strategy and UK Public Policy, Orange, Mr Rob Borthwick, Regulatory Affairs Executive, Vodafone, Mr Frans Lijnkamp, Director of Public Policy, T-Mobile, Mr Richard Brown, Head of Public Affairs, O2, and Mr Richard Rumbelow, Director, Government/Regulatory Affairs, Hutchison 3G, were examined. Mr John Arnott and

Ms Wendy Hardaker, Bill Team, were in attendance.

Mr David Wickham, Chief Executive, Mr Carl Gibson, Director of Public Affairs, and Ms Penny Hieron, Director of Regulatory Affairs, Energis, Mr Philip Hargrave, Chief Scientist, Nortel, and Mr David McConnell and Mr Tom Phillips, Cable & Wireless, were examined. Mr John Arnott, Bill Team, was in attendance.

Mr Ben Verwaayen, Chief Executive, Ms Anne Heal, Director of Regulatory Affairs, and Ms Anne Fletcher, Group General Counsel, BT, were examined. Mr John Arnott and Ms Wendy Hardaker, Bill Team, were in attendance.

[Adjourned till Wednesday at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till tomorrow at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Lord McNally declared a non-pecuniary interest as a former paid adviser to BREMA, now part of Intellect.

Draft Communications Bill: Ms Karen Thomson, Chief Executive Officer, and Mr Simon Hampson, Director, European Affairs, AOL UK, and Mr John Frank, Director of Law and Corporate Affairs, and Mr Matt Lambert, Director of Government Affairs, Microsoft EMEA, were examined. Mr Michael Duggan and Mr Tony Susman, Bill Team, were in attendance.

Mr Nicholas Lansman, Secretary General, ISPA UK, Mr Stephen Collins, Yahoo UK! and ISPA Council Member, Mr David Melville, Director, Freeserve UK, and Mr Roland Perry, London Internet Exchange (LINX), were examined. Mr Michael Duggan and Mr Tony Susman, Bill Team, were in attendance.

Mr Anthony Parrish, Executive Chairman, Intellect, Mr Stuart Cooke, Head of Telecommunications Standards Policy, Nokia UK, Mr Tony Abbott, Managing Director, Sony UK Manufacturing, and Mr Simon Hochhauser, Managing Director, Video Networks, Intellect, were examined. Mr Michael Duggan and Mr Tony Susman, Bill Team, were in attendance.

Mr Roger Darlington, Chairman, Mr Peter Robbins, Chief Executive, and Mr Grahame Davies, Funding Council, Internet Watch Foundation, were examined. Mr Michael Duggan and Mr Tony Susman, Bill Team, were in attendance.

[Adjourned till Monday next at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: Ms Caroline Thomson, Director of Public Policy, BBC, Mr David Scott, Managing Director, Channel 4, Mr Clive Jones, Joint Managing Director, ITV, and Mr Arshad Rasul, Director of Engineering and IT, S4C, were examined. Mr Geoff Chapman and Mr Tony Susman, Bill Team, were in attendance.

Mr John Forrest, Chairman, Spectrum Management Advisory Group (SMAG), and Mr Philip Langsdale, former CEO, BBC Technology, Mr William Webb, PA Consulting, and Mr Andrew Sleigh, Managing Director, Defence Solutions, QinetiQ, members, SMAG, were examined. Mr Geoff Chapman and Mr Tony Susman, Bill Team, were in attendance.

Professor Martin Cave was examined. Mr Tony Susman, and Mr Geoff Chapman, Bill Team, was in attendance.

Professor Eric Barendt was examined. Mr Tony Susman, Mr Geoff Chapman and Mr Laurence Green, Bill Team, were in attendance.

[Adjourned till Thursday at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: Mr Gavyn Davies, Chairman of the Governors, and Mr Greg Dyke, Director General, BBC, were examined. Ms Caroline Thomson, Director of Public Policy, was further examined. Mr Peter De Val and Mr Christopher Woolard, Bill Team, were in attendance.

Mr Clive Jones, Joint Managing Director, was further examined and Mr Mick Desmond, Joint Managing Director, ITV Network Limited, was examined. Mr Peter De Val and Mr Tim Suter, Bill Team, were in attendance.

Mr Mark Thompson, Chief Executive, and Mr Tim Gardam, Director of Programmes, Channel 4, were examined. Mr David Scott, Managing Director, Channel 4, was further examined. Mr Peter De Val and Mr Christopher Woolard, Bill Team, were in attendance.

Ms Janet Lewis Jones, Acting Chair, Mr Huw Jones, Chief Executive, and Mr John Howells, Secretary, S4C, were examined. Mr Tim Suter and Mr Peter De Val, Bill Team, were in attendance.

[Adjourned till Monday next at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: Mr Tony Ball, Chief Executive, Mr Ray Gallagher, Director of Public Affairs, and Ms Sheila Cassells, Head of Economic Policy, BSkyB, were examined. Mr Alex Towers and Mr Peter De Val, Bill Team, were in attendance.

Ms Dawn Airey, Chief Executive, Mr Grant Murray, Finance Director, and Sue Robertson, Director of Corporate Affairs, Channel 5, were examined. Mr Alex Towers and Mr Peter De Val, Bill Team, were in attendance.

Mr David Mansfield, Chief Executive, Capital Radio, Mr Ralph Bernard, Executive Chairman, GWR Group, Lord Eatwell, a Member of the House of Lords, and Mr Chris Carnegy, South City FM, Commercial Radio Companies Association, were examined. Mr Peter De Val and Mr Stuart Brand, Bill Team, were in attendance.

Mr Gareth Littler and Ms Patricia Hargreaves, Co-Directors, Centre for Justice and Liberty, Mr J Peter Wilson, Evangelical Alliance, and the Reverend Jonathan Alderton-Ford, Church of England representative, were examined. Mr Peter De Val and Mr Stuart Brand, Bill Team, were in attendance.

[Adjourned till Wednesday at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till tomorow at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: Mr John McVay, Chief Executive, Mr Andrew Zein, Mr Peter Bazalgette and Ms Eileen Gallagher, Producers Alliance for Cinema and Television (PACT), were examined. Ms Liz Ager, Bill Team, was in attendance.

Professor Vincent Porter, Voice of the Listener and Viewer, Mr Steve Buckley, Chairman, and Mr Don Redding, Public Voice, and Mr Julian Petley, Chairman, Campaign for Broadcasting and Press Freedom, were examined. Mr Peter De Val and Mr Tim Suter, Bill Team, were in attendance.

Ms Anna Bradley, Director, and Ms Linda Lennard, Senior Policy Officer, National Consumer Council, were examined. Mr Peter De Val and Mr Tim Suter, Bill Team, were in attendance.

Mr Roger Darlington, President, Communication Workers Union, was further examined, and Mr Tony Lennon, President, BECTU, and Mr Ian McGarry, General Secretary, and Mr Andy Prodger, Assistant General Secretary, Equity, were examined. Mr Peter De Val and Mr Tim Suter, Bill Team, were in attendance.

[Adjourned till Monday next at Six o'clock.

The Committee deliberated.

[Adjourned till Wednesday at half-past Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till tomorrow at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: Mr Don Cruickshank, Chairman, Mr Andrew Flanagan, Chief Executive, Mr Donald Emslie, Chief Executive Officer of Television, and Mr John Pearson, Chief Executive, SMG Radio, were examined. Mr Alex Towers and

Mr Peter De Val, Bill Team, were in attendance.

Mr Roger Gilbert, Director, Dr Mike Stewart, Managing Director, Teletext, Daily Mail and General Trust, and Mr Harvey Kass, Legal Director, Associated Newspapers, were examined. Mr Alex Towers and Mr Peter De Val, Bill Team, were in attendance.

Mr Philip Graf, Chief Executive, Trinity Mirror, Mr Les Hinton, Executive Chairman, and Ms Alison Clark, Director of Corporate Affairs, News International plc, were examined. Mr Tony Metcalfe, Mr Alex Towers and Ms Isabel Taylor, Bill Team, were in attendance.

Mr Stephen Parker, Managing Director, Regional Newspapers, Trinity Mirror plc, Mr David Newell, Director, and Ms Santha Rasaiah, Political Editorial and Regulatory Affairs Director, The Newspaper Society, were examined. Mr Tony Metcalfe and Ms Navroza Ladha, Bill Team, were in attendance.

[Adjourned till Monday next at Six o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

Draft Communications Bill: The Rt Hon Tessa Jowell, a Member of the House of Commons, Secretary of State for Culture, Media and Sport, and the Rt Hon Patricia Hewitt, a Member of the House of Commons, Secretary of State for Trade and Industry, were examined.

[Adjourned till Thursday at Ten o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till Monday 22 July at Six o'clock

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till Wednesday at Five o'clock.

Lord Puttnam, in the Chair

The Committee deliberated.

[Adjourned till tomorrow at Nine o'clock.

The Committee considered the draft report.

Paragraphs 1 to 248 were agreed to, with amendments.

It was moved by Mr Lansley to leave out paragraph 249 and insert:

"249. If the economic case for permitting non-EEA investment is persuasive, the argument on reciprocity is no impediment. Given the existence of controls on UK broadcasters and in the light of our later recommendation on the programme supply and content markets, if OFCOM and the competition authorities act resolutely to prevent the abusive aspects of control over the value chain of content and rights, we see no case for continuing to restrict nationality of ownership."

The Committee divided:

The amendment was disagreed to accordingly.

It was moved by Brian White to leave out from "established" in line 8 of paragraph 249 to the end of the paragraph and insert:

"OFCOM will face an enormous range of challenges immediately after it assumes its regulatory functions. We feel that the additional pressure that would arise from the lifting of restrictions on non-EEA ownership of broadcasting licences means that such a decision should only take place following a review by OFCOM, and the competition authorities if appropriate, of the programme supply market in British broadcasting. Accordingly, we recommend that the provisions of the final Bill on lifting existing restrictions on non-EEA ownership of certain broadcasting licences should not be brought into effect until OFCOM has recommended such a change and Parliament has debated the issue."

The Committee divided:

The amendment was disagreed to accordingly.

Paragraphs 249 to 251 were agreed to.

It was moved by Mr Harvey to leave out from "recommended" in line 18 of paragraph 252 to the end of the paragraph and insert:

"but believe that the restriction on holding a Channel 3 licence and the Channel 5 licence should remain in place."

The Committee divided:

The votes being tied, the amendment was disagreed to in accordance with Standing Order 56(3) of the House of Lords.

Paragraphs 252 to 257 were agreed to, with amendments.

It was moved by Mr Lansley to leave out from "clearest" in line 11 of paragraph 258 and insert:

"scrutiny of this by the competition authorities will disclose an adverse effect on competition or, based on the plurality test we recommend, the Secretary of State herself will have the power to block such a merger or to impose undertakings or conditions. We therefore recommend that the prohibition on joint ownership of Channels 3 and 5 and a major national newspaper group should be lifted."

The Committee divided:

The amendment was disagreed to accordingly.

Paragraph 258 was agreed to.

It was moved by Mr Lansley to leave out paragraph 259.

The Committee divided:

The amendment was disagreed to accordingly.

Paragraphs 259 to 379 were agreed to, with amendments.

It was moved by Mr Lansley, at the end of paragraph 379, to insert:

"379A. Prior to renewal of the Charter and Agreement, the Communications Bill relates the functions of OFCOM and the BBC as proposed by the Government and as we recommend above. However, we found there to be strong views expressed that, once OFCOM has established itself as a competent and effective regulator for the communications sector, the functions of the BBC should be brought more fully within the regulatory scope of OFCOM. This implies that the Communications Bill, while not seeking to pre-empt the Charter and Agreement, should be framed in a way which is consistent with changes in the structure of the BBC and its relationship with OFCOM and other broadcasters. Clause 144 is intended to be flexible but it may not suffice.


379B. We recommend that in the Communications Bill, the Government should make it clear in Clause 144, and additional provisions as necessary, that, subject to the review of the BBC Charter, the legislation would be compatible with reform of the BBC's structure, including extending OFCOM's regulatory oversight of the BBC."

The Committee divided:

The amendment was disagreed to accordingly.

Paragraphs 380 to 399 were agreed to, with amendments.

The Committee agreed that the draft report, as amended, be the report of the Committee.

The Annexes to the report were agreed to.

The Committee ordered the Chairman to make the report to the House of Lords and nominated Nick Harvey to report to the House of Commons.