:00:00. > :00:00.that really does provide first class educational materials and will
:00:00. > :00:07.happily host visits by schools and colleges here. Statement the
:00:08. > :00:16.Secretary of State for culture, media and sport. Karen Bradley. I
:00:17. > :00:19.came to this House on March six to give an update on the proposed
:00:20. > :00:25.merger between 21st Century Fox and Sky. At that time, I said I was
:00:26. > :00:30.minded to issue a European it intervention notice on the basis
:00:31. > :00:34.that I believe there to be public interest considerations are set out
:00:35. > :00:36.in the enterprise act 2002 that may be relevant to this proposed merger
:00:37. > :00:42.and which warrant further investigation. The grounds on which
:00:43. > :00:46.I was minded to intervene where as explained at that time, media
:00:47. > :00:49.plurality and commitment to broadcasting standards. I also
:00:50. > :00:52.confirmed that in line with guidance, I would be inviting
:00:53. > :00:59.further representations in writing from the parties and gave them until
:01:00. > :01:02.last Wednesday to provide these. Having carefully considered the
:01:03. > :01:06.representations from the parties, and the other representations I have
:01:07. > :01:10.received, I can now tell the House but today, I have issued a European
:01:11. > :01:14.intervention notice on the grounds of media plurality and commitment to
:01:15. > :01:19.broadcasting standards. I have written to the parties, Ofcom and
:01:20. > :01:24.competition markets authority informing them of my decision. The
:01:25. > :01:29.representations from 21st Century Fox highlighted areas where it
:01:30. > :01:32.contested the position taken in my letter, none of the representations
:01:33. > :01:35.have led me to dismiss concerns I have regarding the two public
:01:36. > :01:41.interest rounds I previously specified. I believe it still
:01:42. > :01:45.remains important giving the issues raised and wholly appropriate for me
:01:46. > :01:51.to seek comments of advice from Ofcom on these public interest
:01:52. > :01:56.considerations and from jurisdiction issues. I note over all the parties
:01:57. > :01:58.have welcomed a thorough regulatory review and that is what will now
:01:59. > :02:05.happen as a result of the intervention notice I've issued.
:02:06. > :02:10.Since mine decision, I've received over 700 representations from third
:02:11. > :02:15.parties, the vast majority of which supported intervention. A number of
:02:16. > :02:19.these called for me to create a new public interest considerations which
:02:20. > :02:22.would require a fit and proper assessment of the parties to take
:02:23. > :02:27.place as part of the intervention process. They also argued it should
:02:28. > :02:31.be made clearer matters of corporate governance, accountability and
:02:32. > :02:35.conduct should be and could be taken into account in assessing this
:02:36. > :02:38.merger. These issues relate to questions about the application of
:02:39. > :02:42.the fit and proper test by Ofcom and I will come to these shortly. As I
:02:43. > :02:47.previously set out, this decision will trigger action by Ofcom to
:02:48. > :02:51.assess and report to me on the public interest grounds I've
:02:52. > :02:55.specified. For the Competition and Markets Authority to report to me
:02:56. > :02:59.jurisdiction. They each have 14 working days to prepare these
:03:00. > :03:04.reports. This means will expect their reports by Tuesday 16th May. I
:03:05. > :03:10.will then resume my decision-making role in relation to the merger. To
:03:11. > :03:15.be clear, this interfering period and indeed any time after that until
:03:16. > :03:21.a final decision on the merger is taken, is subject to the constraints
:03:22. > :03:24.that apply to my role. I'm sure you understand I cannot nor can any
:03:25. > :03:31.other member of this Government comment substantively on the case as
:03:32. > :03:35.it proceeds. I will keep the House updated once I've considered the
:03:36. > :03:40.reports of Ofcom and the CMO. What I will comment on is that much of the
:03:41. > :03:44.discussion in the debate last week here and in the other place focused
:03:45. > :03:48.on the question of Ofcom's assessment of whether a licensee is
:03:49. > :03:52.fit and proper, including the ongoing duty which forced Ofcom
:03:53. > :03:58.under the broadcasting act 1990 and 1996. I've received representations
:03:59. > :04:02.from the honourable member for West Bromwich East and from Doncaster
:04:03. > :04:06.North as well as a number of other parties on adding fit and proper as
:04:07. > :04:11.a new public interest consideration in the enterprise act. I want to
:04:12. > :04:15.assure them I have very carefully considered the argument they have
:04:16. > :04:20.put forward. The grounds set out in the enterprise act allowing for
:04:21. > :04:24.intervention media mergers are aimed at ensuring plurality of the media,
:04:25. > :04:29.which is essential to a healthy democracy, something and are members
:04:30. > :04:33.of this has Duport. It is the view I fully endorse. I'm also clear the
:04:34. > :04:38.question of whether someone is fit and proper to hold a broadcasting
:04:39. > :04:43.licence is a different requirement and one that quite rightly sits with
:04:44. > :04:47.the independent regulator Ofcom. On Monday this week, Ofcom announced it
:04:48. > :04:51.will conduct its fit and proper assessment at the same time it would
:04:52. > :04:56.consider any public interest test in response to my decision to intervene
:04:57. > :04:59.in the merger. This means Ofcom will conduct its assessment within the 14
:05:00. > :05:02.working days it has to report to me on the public interest I've
:05:03. > :05:11.specified in the intervention notice. -- 40 working days. It will
:05:12. > :05:14.provide reassurance to those with concerns. That this is a matter
:05:15. > :05:22.which Ofcom will now consider before the merger takes place. I trust as
:05:23. > :05:26.before that this update is helpful to members and this statement is an
:05:27. > :05:28.opportunity to debate this issue but at the same time respecting the
:05:29. > :05:34.limits of what I can say as I mentioned earlier, given my ongoing
:05:35. > :05:43.role in relation to this merger. I commend this statement to the House.
:05:44. > :05:47.I thank the Secretary of State for her statement. She says she will go
:05:48. > :05:53.ahead with what she indicated she was going to do last week. It might
:05:54. > :05:58.not sound like the big deal but it's more than the Chancellor and Prime
:05:59. > :06:03.Minister managed yesterday. On the side of the House, we welcome the
:06:04. > :06:07.fact that the Secretary of State is intervening. She will have noticed
:06:08. > :06:11.that 21st Century Fox is happy also in a letter to her last week, they
:06:12. > :06:23.said, I quote, we welcome a thorough and thoughtful review. I have no
:06:24. > :06:28.doubt that is sincere and 20 this -- 21st Century Fox are thrilled. And
:06:29. > :06:33.that they will seek not to challenge it or impede any element of the
:06:34. > :06:36.Ofcom investigation. If they do, I trust she will make a new referral
:06:37. > :06:41.to put it beyond doubt that Ofcom could investigate what it needs to.
:06:42. > :06:48.Can she confirmed that in her view, the broadcasting standards ground of
:06:49. > :06:52.a referral gives Ofcom the power to investigate any corporate Government
:06:53. > :06:57.issues affecting 21st Century Fox, including the phone hacking scandal,
:06:58. > :07:01.any cover-up of illegality at News International, the rehiring of
:07:02. > :07:03.people responsible for governance failures and ongoing sexual
:07:04. > :07:11.harassment claims in the United States? Is it her view Ofcom should
:07:12. > :07:15.examine those issues? The Secretary of State referred to representations
:07:16. > :07:19.made by me and my right honourable friend, the member for Doncaster
:07:20. > :07:22.North and by others, about adding fit and proper of the new public
:07:23. > :07:29.interest consideration. She has regrettably chosen to reject those
:07:30. > :07:33.representations. I welcome the announcement that Ofcom will conduct
:07:34. > :07:37.a fit and proper assessment at the same time as considering the public
:07:38. > :07:46.interest test specified today. I have two concerns. The first is that
:07:47. > :07:50.there is only 40 days to conduct this assessment. Is she confident it
:07:51. > :07:54.can get to the bottom of all these issues in such a short time? And
:07:55. > :08:00.2012 Ofcom report on James Murdoch found his conduct repeatedly fell
:08:01. > :08:06.short of the exercise of responsibility to be expected of him
:08:07. > :08:10.as CEO and chairman, contained an important caveat. It said the
:08:11. > :08:14.evidence available to date does not abide a reasonable basis to find the
:08:15. > :08:19.new of widespread wrongdoing or criminality at News of the World.
:08:20. > :08:22.The reason for that lack of evidence was that Ofcom did not have the
:08:23. > :08:28.power to gather the evidence it needed. News Corporation, 21st
:08:29. > :08:33.Century Fox's predecessor company, was involved in one of the biggest
:08:34. > :08:36.corporate scandals and one of the biggest corporate governance
:08:37. > :08:43.failures of modern times. Just a few years ago. Many of the questions of
:08:44. > :08:46.corporate governance failures in 21st-century's predecessor company
:08:47. > :08:50.and much of the evidence of the role of James Murdoch within those
:08:51. > :08:55.failures, can only be answered by going ahead with part two of the
:08:56. > :09:00.Levenson enquiring Ofcom does not have the power to obtain documents
:09:01. > :09:04.and compel witnesses to appear before it. If it not the case that
:09:05. > :09:07.the easiest way of getting to the bottom of the corporate governance
:09:08. > :09:13.questions we all want answered, is to hold on enquiry in public using
:09:14. > :09:17.powers with terms of reference which have already been announced by
:09:18. > :09:27.Conservative Prime Minister as a promise to the victims of phone
:09:28. > :09:33.hacking, namely Levenson part two? Perhaps if I can address the final
:09:34. > :09:37.point he's made as I did last time I was at the dispatch box on this
:09:38. > :09:41.matter, namely the issue Levenson. He will know the consultation that
:09:42. > :09:46.we launched that closed in January is subject to a judicial review and
:09:47. > :09:57.therefore, I'm unable to comment on the consultation or any aspects of
:09:58. > :10:04.that enquiry. I'm pleased he welcomes the decision to refer this
:10:05. > :10:08.merger. I think it's important I make a couple of points in response
:10:09. > :10:12.to his questions. He made the point about broadcasting commitment to
:10:13. > :10:20.standards and whether it could look at corporate governance. I was clear
:10:21. > :10:24.that the corporate governance was one of the issues on which I was
:10:25. > :10:28.referring the matter to Ofcom. Therefore I would expect them to
:10:29. > :10:31.look at that. Ofcom is clearly an independent regulator and I've made
:10:32. > :10:36.the decision to refer to Ofcom but it is for Ofcom to decide what
:10:37. > :10:39.evidence they want to look at. They are open to look at whatever
:10:40. > :10:45.evidence they feel is appropriate to make their decision. He talked about
:10:46. > :10:48.the fit and proper test and I did carefully consider the
:10:49. > :10:50.representations made but I think it's important and independent
:10:51. > :10:55.regulator looks at fit and proper and the Government has a grounds on
:10:56. > :11:00.which to intervene under the enterprise act. Those two should be
:11:01. > :11:05.kept separate and we should not seek Government stepping in to where the
:11:06. > :11:09.regulator quite rightly should sit. He asked whether Ofcom have the time
:11:10. > :11:13.and resources and the ability to gather the evidence they need and I
:11:14. > :11:16.have been assured by them they have the time to do this and the ability
:11:17. > :11:23.to gather the evidence they need. I look forward to letting them get on
:11:24. > :11:30.with the job. It clearly sensible to ask regulator to examine this bid,
:11:31. > :11:35.will my right honourable friend agree that this transaction
:11:36. > :11:37.represents an ?11.7 billion investment by an international
:11:38. > :11:43.company enjoyed British broadcaster and that such is a fantastic vote of
:11:44. > :11:45.confidence that the UK will remain an international centre of
:11:46. > :11:51.broadcasting long after we leave the EU?
:11:52. > :12:00.He has significant experience in matters of culture, media and sport.
:12:01. > :12:05.He is right to say that the UK is a global Britain and will remain
:12:06. > :12:12.global Britain, open to business to the whole world after we have left
:12:13. > :12:15.the European Union. I would like to thank the Secretary of State for
:12:16. > :12:20.advanced sight of her statement. I'm pleased she will intervene in the
:12:21. > :12:29.merger of Sky/Fox and investigate the deal. We have voiced our support
:12:30. > :12:32.for media clarity and our commitment to broadcasting standards. There are
:12:33. > :12:36.valid concerns about this merger which will increase the influence of
:12:37. > :12:44.Rupert Murdoch on his family in the media and UK. There are now Bob
:12:45. > :12:48.reaches for broadcasting standards by Fox and the failures of News
:12:49. > :12:54.Corporation in the past. Many highlight the fact that part two of
:12:55. > :13:05.the Levenson enquiry -- inquiry has yet to be convinced -- commenced. We
:13:06. > :13:10.should be mindful way the previous bid courted such controversy and
:13:11. > :13:15.failed. At the same time it should be acknowledged that television is a
:13:16. > :13:22.daft thing to changes and competition and some will argue that
:13:23. > :13:27.investment in sky-macro might allow them to thrive and compete with
:13:28. > :13:37.competitors such as Netflix and Amazon prime. -- Sky. Ofcom will
:13:38. > :13:41.investigate on broadcasting standards as well as conducting a
:13:42. > :13:47.proper assessment. This will provide the Secretary of State with the
:13:48. > :13:54.recommendations on how to proceed. I look forward to Ofcom's conclusions.
:13:55. > :14:02.I refer to my earlier comments regarding the Levenson enquiry. I
:14:03. > :14:11.look forward to seeing the report from Ofcom to enable me to use my
:14:12. > :14:21.judicial role to make a fair and transparent decision in this matter
:14:22. > :14:27.it appears to me that the mention of the word, Murdoch, gets people
:14:28. > :14:33.frothing at the mouth. When James Murdoch was chairman or Chief Exec
:14:34. > :14:40.of Sky, we have seen their company grow to 20,000 people being employed
:14:41. > :14:47.in this country. Does she believe with me that sky -- Sky is an
:14:48. > :14:52.important part of this country and this merger has been proposed shows
:14:53. > :14:58.the confidence that the rest of the world has in Britain's original
:14:59. > :15:03.productivity and feature? Can I thank my honourable friend for his
:15:04. > :15:07.comments. It is important we have media plurality which is why I have
:15:08. > :15:14.asked -- asked Ofcom to look at this merger and make a decision on the
:15:15. > :15:20.grounds of the enterprise act whether media plurality is affected
:15:21. > :15:26.by the merger. I also am very optimistic that post Brexit, the UK
:15:27. > :15:31.broadcasting industry will continue to thrive and be the world leading
:15:32. > :15:37.broadcasting industry that it is today. Camera welcome the Secretary
:15:38. > :15:42.of State's decision to refer this bid. Many of us believe that if you
:15:43. > :15:47.look at the conduct of the Murdoch's and the power they already have, it
:15:48. > :15:51.is not in the public interest for them to take over Sky and have full
:15:52. > :15:56.control. On this question of fitness which she has thought about a lot,
:15:57. > :16:00.the Ofcom review took 15 months to look at the fitness of the
:16:01. > :16:04.Murdoch's. She is expecting them to report back to her within 40 days
:16:05. > :16:11.and there is a question of timescale and powers as my honourable friend
:16:12. > :16:16.said. Can she sure is that if Joan this period Ofcom seek more time or
:16:17. > :16:22.more powers to do this fitness required, she will grant their
:16:23. > :16:27.request? Ofcom have assured me they do have the time and powers they
:16:28. > :16:32.need and I look forward to seeing their report in due course. Does my
:16:33. > :16:38.right honourable friend agree with me that the freedom of press and
:16:39. > :16:43.press ownership is a bastion of our liberties and it is far Ofcom,
:16:44. > :16:51.objectively, not subjectively, to define, as a narrow turn of arts, a
:16:52. > :16:57.fit and proper person? It is not for ministers and politicians to get
:16:58. > :17:01.involved in this. He made the point that I concluded having considered
:17:02. > :17:05.the representations. There needs to be a distinction between the work of
:17:06. > :17:09.the independent regulator in determining fit and proper persons
:17:10. > :17:13.to hold broadcasting license versus their role of the Secretary of State
:17:14. > :17:20.when it comes to determining whether a media measure can go ahead under
:17:21. > :17:22.the terms of the enterprise act. Having encourage the Secretary of
:17:23. > :17:27.State to take this course of action, can I welcome the fact that she has
:17:28. > :17:32.done it and she deserves credit for doing the right thing. Many years
:17:33. > :17:36.ago I served on what was the standing committee of the enterprise
:17:37. > :17:40.Bill and as I recall, these provisions in this process was
:17:41. > :17:45.something supported by all parties at the time. It strikes me that in
:17:46. > :17:49.light of this experience, it might be appropriate that the conclusion
:17:50. > :17:53.of it to revisit whether we have the processes that we really need to win
:17:54. > :18:01.sure the ends that we want to achieve? If you would like to make
:18:02. > :18:05.representations to me regarding the enterprise act and areas where he
:18:06. > :18:10.feels there could be changes made in light of changing broadcasting and
:18:11. > :18:16.consuming habits, I would of course look at those carefully. I agree
:18:17. > :18:19.with the Secretary of State's view that the decision on whether is
:18:20. > :18:23.someone is fit and proper person should be the decision of an
:18:24. > :18:27.independent regulator, not a politician. Does she believe this is
:18:28. > :18:33.consistent with our goals of not politicising broadcasting landscape?
:18:34. > :18:38.I agree and it is the conclusion I reached when looking at the
:18:39. > :18:42.representations I received. Recognising and respecting what the
:18:43. > :18:47.Secretary of State has told the House and keeping the House up to
:18:48. > :18:54.date, we all appreciate that. Can I say it isn't a question any kind of
:18:55. > :18:59.vendetta against Mr Murdoch but it would be simply unacceptable that
:19:00. > :19:02.the amount of media ownership he already controls should be
:19:03. > :19:05.increased. That is the position and that is why I hope the right
:19:06. > :19:11.decision will be taken at the end of the day. These are matters that
:19:12. > :19:17.Ofcom will look at and I look forward to seeing their report. I
:19:18. > :19:22.welcome my right honourable friend's statement today but could she assure
:19:23. > :19:26.me that this question plurality is not one that is just examined
:19:27. > :19:30.occasionally one big merger like this comes up which is kept
:19:31. > :19:38.constantly under review by Ofcom and her departments? Ofcom have a
:19:39. > :19:43.responsibility to consider on a regular basis the fit and proper
:19:44. > :19:46.test for holding a broadcasting licence but clearly when we are
:19:47. > :19:55.looking at the whole media landscape and we have questions earlier about
:19:56. > :19:58.the status of Channel 4, the issue of media plurality is at the
:19:59. > :20:01.forefront of my mind when looking at what is the right decision to take
:20:02. > :20:10.regarding the future of Channel 4 and all matters regarding the media.
:20:11. > :20:13.I received a huge number of e-mails on this issue from many constituents
:20:14. > :20:19.and I work the intervention she details in her statement today.
:20:20. > :20:25.Press is important to democracy and I wanted to put on record that she
:20:26. > :20:30.understands the depth and strength of feeling on this issue and I look
:20:31. > :20:35.forward to hearing from her in due course. She will not be surprised
:20:36. > :20:38.that I suspect I have received more e-mails even than she has on this
:20:39. > :20:46.matter and I have taken note of them. I think the decision by my
:20:47. > :20:51.right honourable friend will be welcomed by all parties to this
:20:52. > :20:56.proposed merger and across the country. One of the considerations
:20:57. > :21:04.is the short time frame that Ofcom has to do this review. Will she take
:21:05. > :21:09.an interim report from Ofcom? There is any obstruction or need to extend
:21:10. > :21:15.the period of time, she will look sympathetically at that so Ofcom can
:21:16. > :21:21.do the proper job that we want? He makes an interesting suggestion that
:21:22. > :21:27.I have been in -- been reassured they have the time and resources
:21:28. > :21:31.required to be able to produce a report in 40 working days. For all
:21:32. > :21:37.parties, we want to make sure there is sufficient time and scrutiny but
:21:38. > :21:44.actually we can give certainty in a reasonable time frame so that the
:21:45. > :21:49.parties can get on with business as usual whatever that might be. I
:21:50. > :21:53.congratulate the Secretary of State on the decision she has made.
:21:54. > :21:59.Historically, what successive governments have done, says Mrs
:22:00. > :22:03.Thatcher, they have decided Rupert and James Murdoch fit and proper
:22:04. > :22:06.persons because they are newspapers that can support them in general
:22:07. > :22:12.elections. The concentration of ownership is the problem here. Sky
:22:13. > :22:17.now has four times as much money every year to spend as the BBC, so I
:22:18. > :22:23.hope we will end up with the position where we maintain that
:22:24. > :22:29.diversity in the British ecology. A strong BBC not being bullied by
:22:30. > :22:32.Murdoch and Sky. Am getting worried because this is the second time the
:22:33. > :22:36.honourable gentleman has been working with Government which does
:22:37. > :22:47.slightly concerned me. I do take note of the comments he has made. I
:22:48. > :22:50.welcome today's statement as many of my constituents who have been in
:22:51. > :22:55.contact with me regarding this matter and I'm sure they will be all
:22:56. > :23:00.happy the bid has been referred to the regulators. With the secretary
:23:01. > :23:03.agree that given Britain is one of the most concentrated media
:23:04. > :23:09.environments in the world with three companies controlling 71% of
:23:10. > :23:14.national newspaper circulation and five companies in command of 81% of
:23:15. > :23:23.local newspaper titles, now is an ideal time to properly reviewed the
:23:24. > :23:26.media landscape in Britain. I am proud of the incredibly diverse,
:23:27. > :23:30.free press that we have in this country. It is something I want to
:23:31. > :23:36.preserve and make sure we can enable. We have questions about
:23:37. > :23:41.local newspapers and I want to see local newspapers thrive and others.
:23:42. > :23:47.It is very important we make sure through this process that we do
:23:48. > :23:53.about plurality of media and broadcasting and that is why I have
:23:54. > :23:58.asked Ofcom to look at this issue. I welcome the Secretary of State's
:23:59. > :24:00.decision. You have to be a fit and proper person in order to be
:24:01. > :24:08.licensed as a London hackney carriage driver. With that in mind,
:24:09. > :24:13.it is not just a question of the amount of influence that the
:24:14. > :24:19.Murdoch's already have, it is their association with so much corruption
:24:20. > :24:22.and illegality that has gone on and even now is still being uncovered.
:24:23. > :24:27.It is incredulous that they are being considered to have 100%
:24:28. > :24:33.controlling share of Sky and this must not be allowed to go one. I'm
:24:34. > :24:38.sure Ofcom will have heard the honourable gentleman's comments. I
:24:39. > :24:42.hope his comments about fit and proper persons the taxi driving was
:24:43. > :24:49.not a reflection of experience he has had in the himself. Could I
:24:50. > :24:53.congratulate the Secretary of State on the way she is handling this
:24:54. > :25:04.which is better than any Secretary of State since 2010. When it comes
:25:05. > :25:09.to Levinson, she says she can't respond to any questions we have
:25:10. > :25:13.because it is under judicial review. When is that judicial review going
:25:14. > :25:21.to be resolved so we might come back to the issue of Levinson to? It is a
:25:22. > :25:31.matter for the courts and I am in their hands. Order. I will take the
:25:32. > :25:33.point of order now. There are a couple of Select Committee
:25:34. > :25:41.statements coming but we can await those with bated breath. Let's hear
:25:42. > :25:47.the point of order. In a section headed making commitments on the
:25:48. > :25:53.floor of the House, paragraph 23 of the Cabinet Office guide to making
:25:54. > :25:58.legislation published in 2015 in July 2015, it is stated parliament
:25:59. > :26:02.will hold ministers to any commitments they make on the floor
:26:03. > :26:06.of the House which are recorded in hands arts. Ministers must take care
:26:07. > :26:09.German debates not to make any commitments for which they do not
:26:10. > :26:11.have collective agreement. My