CHAPTER 9: SUMMARY OF RECOMMENDATIONS
374. The relationship between policy makers and
the media is a legitimate area of public interest. We therefore
propose that politicians in all parties are open and candid about
their meetings with media owners and editors. [para 197]
375. We do not accept that the increase of news
sources invalidates the case for special treatment of the media
through ownership regulation. There is still a danger that if
media ownership becomes too concentrated the diversity of voices
available could be diminished. [para 210]
376. An internal company structure cannot be
an adequate substitute for competition law and statutory regulation
in ensuring that no single voice becomes too powerful. Regulation
to ensure a plurality of media ownership is still relevant and
necessary. [para 220]
377. The public interest considerations for newspaper
mergers and broadcasting and cross-media mergers should be amended
to refer specifically to a need to establish whether a merger
will impact adversely on news gathering. [para 243]
378. The considerations set out in the Public
Interest Test for newspaper mergers should be reviewed by Ofcom.
This exercise should consider the rigour of the criteria and how
they can be assessed. Conducting such a review will give Ofcom
the opportunity to start building an expertise in advance of actually
having to look at a newspaper merger. [para 249]
379. The Government should be more flexible and
adopt a case-by-case approach when considering which media mergers
the Public Interest Test should apply to. We believe that it would
be essential to apply the test if a major international internet
company bought a stake in a UK news provider. [para 253]
380. Ofcom should be given the power to initiate
the Public Interest Test. This would sit more comfortably with
Ofcom's duty to promote the interests of the citizen. The
power to trigger a Public Interest Test should not be taken away
from Ministers. Along with Ofcom, Ministers should retain the
power in the event that they consider there is a risk to the public
interest that Ofcom has not fully recognised. Therefore, the power
to issue an Intervention Notice should be held by both Ofcom and
the Secretary of State. [para 261]
381. We recommend that legislation should be
amended so that Ofcom investigates media mergers only on the basis
of the public interest criteria, and the Competition Commission
considers only the competition aspects of a merger. They should
make their recommendations separately to the Secretary of State
on whether the merger should be blocked or go ahead (with or without
remedies). The Secretary of State would then have the final responsibility
for accepting or rejecting Ofcom's recommendations and remedies,
as they relate to the public interest criteria. As is the case
now, the Secretary of State would continue to be bound by the
Competition Commission's findings on the competition issues. [para
271]
382. When Ofcom considers the public interest
considerations of a media merger it should be required to put
the needs of the citizen ahead of the needs of the consumer. [para
275]
383. We are concerned that Ofcom is inadequately
implementing Section 13(3) of the Communications Act and believe
that it should review whether the Content Board has a significant
influence on Management Board decisions in respect of Ofcom's
duty to promote the purposes of public service television as laid
down by Section 3(4)(a) of the Communications Act. Ofcom should
publish the findings of this review so that they can be acted
on by Parliament if necessary. [para 279]
384. The analogue and digital local radio ownership
rules should be amalgamated. [para 283]
385. The local cross-media ownership restrictions
relating to local radio and local newspaper companies should be
lifted. Ofcom must carefully monitor any local cross-media mergers
and apply the Public Interest Test if any are likely to raise
public interest considerations. [para 289]
386. The current inequitable situation facing
UK companies is preventing their legitimate expansion into new
markets. The Government must continue its efforts to achieve reciprocal
rights for UK companies. Without further information it is difficult
to measure progress on this matter. We recommend that the Department
for Culture, Media and Sport publish an annual report on progress
towards securing reciprocal ownership rights. This should detail
the extent of ongoing negotiations with countries where the Government
is seeking to achieve reciprocal rights, and explain the reasons
why ownership limits remain in place. [para 295]
387. The strength of BBC news is its reporters
and those that support them. Between them they provide a depth
and range of news which is among the best in the world. We believe
that nothing should be allowed to reduce the BBC's ability to
sustain this high quality news operation. [para 301]
388. The BBC's spending on the salaries of its
presenters and personalities represents a considerable proportion
of the BBC's licence-fee funded budget. The BBC Trust should monitor
closely spending growth in this area to ensure that the Corporation
can adequately fulfil and fund all its public purposes and particularly
news and current affairs. [para 306]
389. We emphatically believe that Public Service
Broadcasting cannot be left to the BBC alone. We are very struck
by Ofcom's prediction that by 2012/13 the BBC will receive 91%
of all PSB funding. A continuing plurality of public service broadcasters
should be an aim of public policy. This is particularly crucial
for news and current affairs. Ofcom's research shows that the
public values this plurality, especially in news. It also serves
the valuable purpose of providing competition for the BBC. We
urge Ofcom to make news provision a priority on the PSBs when
it comes to negotiating future service obligations. [para 318]
390. Any residual funds left over from the BBC's
targeted help scheme should be used to support the commercial
PSBs in the medium term[129].
[para 321]
391. ITV's proposal for the abolition of the
Contracts Rights Renewal system merits further consideration.
[para 322]
392. We are sceptical of the various proposals
that have been put forward for top slicing the BBC licence fee.
[para 323]
393. We believe there is scope in the idea of
sharing BBC facilities with other public service broadcasters
and that this proposal should be further examined. The Government
should take forward this work. [para 324]
394. We remain to be convinced that the new BBC
corporate governance arrangements are more effective than those
they replaced. [para 325]
395. We are concerned about ITV's proposals to
scale back its regional news structure. Ofcom should carefully
examine whether ITV's policy will have an impact on local newsrooms
and their ability to quickly and accurately cover stories of national
importance. Ofcom should also consider the implications that a
cut in ITV regional news commitments will have on the news gathering
capabilities of ITN and in turn the overall quality of ITV and
Channel 4 news. Plurality of regional television news is important
and if ITV reduce their commitments in this area the BBC will
have very little effective competition. [para 332]
396. Ofcom should work to define more systematically
"high-quality" news and to agree a number of indicators
for assessing it. Ofcom should produce an annual report monitoring
the quality and quantity of PSB news and Ofcom should also develop
a mechanism for holding companies responsible if their news falls
short of quality thresholds. [para 337]
397. Ofcom should be given powers to check the
resourcing of all the commercial PSB news providers, rather than
just Channel 3's appointed news provider. Ofcom should also develop
a series of indicators against which to measure the resourcing
of a news organisation and should publish an annual report on
the resourcing of all the PSB news services (this could be published
as part of the annual report on quality recommended in para 337).
[para 341]
398. Ofcom should start monitoring the resourcing,
quality and quantity of news on the commercial PSB channels as
soon as possible and should also start publishing an annual report
as set out above. However, in the future we believe there should
be a statutory duty on Ofcom to undertake these new duties. [para
342]
399. The impartiality requirements of PSBs are
an important safeguard of the plurality of voices heard on broadcast
news. They will continue to be necessary post-digital switchover.
[para 349]
400. Any weakening of the impartiality requirements
as they apply to UK broadcasters would have a negative impact
in the quality and trustworthiness of the country's news. Such
a move would not benefit the public or journalists and could run
the risk of undermining the most important medium for news. [para
353]
401. When considering how to apply the impartiality
requirements to non-UK based news broadcasters licensed in the
UK, Ofcom should takes into account the size of their UK audience.
It should monitor the UK audience share of these channels and
set a viewing threshold that would guide its regulatory approach.
[para 358]
402. The public interest would be better served
by placing the BBC on a statutory footing by an Act of Parliament.
Parliament should have a greater involvement in the setting of
the licence fee. [para 363]
403. The procedure for compelling the attendance
of witnesses before Committees of the House of Lords is palpably
not fit for purpose at the beginning of the 21st century, and
should now be reviewed. If parliamentary inquiries are to serve
a useful function in guarding the public interest then a less
cumbersome procedure is necessary. We invite the Procedure Committee
to consider the options for streamlining the procedure whereby
select committees may compel the attendance of witnesses. [para
373]
129 Any such transfer of funds would need to conform
with European Union rules on State Aid in relation to public service
broadcasting. Back
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