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BSkyB bid dropped – now we must push for media ownership reform

13/07/2011, 03:22:48 PM

by Anthony Painter

It would be lovely to think that the BSkyB bid has been dropped because of Parliamentary unity and clarity of voice. Unfortunately, this is not really the case. The reality is that two other factors are likely to have led to this decision.

The increasing political and media attention on the scandal in the US and the impact of this focus on News Corporation’s financial standing is undoubtedly a major factor. Questions posed yesterday by Senator Jay Rockefeller who has insisted that allegations that victims of 9/11 had their phones hacked should be investigated have forced the Murdochs into a rear-guard action. BSkyB is no longer the focus- News Corporation itself is the concern and the corporate share buy-back yesterday indicates the emerging crisis for the company.

The second issue is the ticking time-bomb of the Ofcom ‘fit and proper’ test. If they fail that, then not only would the bid have been stopped in its tracks, if may have had to divest itself of its existing highly lucrative 39% shareholding.

There is an important caveat to this. Rupert Murdoch is nothing if not tenacious. His thinking will be that this is the end of the battle but not the war: stabilise the situation in the US and come back later. So be it. However, next time the rules of the game must be different. This is not about one individual or a family or a single company. It is about understanding how we’ve been shown the consequences of allowing large concentrations of power to swell- corruption. Now we must say: never again.

It would be astounding in reality if News Corporation was able to launch another bid in the foreseeable future whatever Rupert Murdoch may be hoping. Nonetheless, if it does it should be on different terms. The Communications Act 2003 is now looking like a highly flawed piece of legislation: most particularly, its public interest test is too narrow. It is not good enough to wait for the public inquiry to report- we need to draft some amendments to our media ownership laws immediately. The following would seem to be sensible:

– Ofcom should be asked by the secretary of state to continue with its ‘fit and proper’ assessment of News Corporation executives with the evolving criminal investigations taken into consideration.

– ‘Fit and proper’ itself must be reviewed to ensure that it encompasses executives presiding over the types of malign and illegal behaviour we have seen within News International over the past few years.

– Cross-media ownership should be more heavily restrained. 20% ownership is the current limit. It should be reviewed with a view to lowering it and it must be revisited should a media company exceed the new limit even after a takeover has occurred.

– Content provision and carriage should be separated. In other words, no company should be both a content provider and media infrastructure service provider.

– The BSkyB plan could ultimately evolve its digital television into a walled and bounded internet platform- this is anti-competitive and should not be allowed. If a company provides access to any of the internet, it should be obliged to provide access to all of it on an equal footing (ie same ease of access and download speeds etc.)

These changes will ensure that corporate media power will be heavily constrained. It will not hamper free, fair and determined journalism which is a public good. It will create an open, diverse, and dynamic information market.

We can’t drag our feet in diluting concentrations of media power. We now have the opportunity to act with clear heads.

News International is the power lever; BSkyB is the cash machine. At least the bid has been stopped in its tracks. We are at the end of the beginning of this scandal. Now we can push for an open, competitive, plural, transparent, and dynamic media and an enriched public and commercial space. Time to get on with it before it’s too late again.

Anthony Painter is an author and critic.

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Commons sketch: PMQs

13/07/2011, 01:53:18 PM

by Dan Hodges

Westminster. Noon. Prime minister’s questions.

Or was it? The Commons was agog with anticipation. Would he show or wouldn’t he?

David Cameron once bestrode the chamber like a colossus. Back when the News of the World was Britain’s best selling newspaper, the Metropolitan Police was still renowned for its tenacious and fearless pursuit of criminals, and Kay Burley and Adam Boulton were united in mutual professional respect.

Not any more. Over the past week there’s been more chance of spotting a unicorn standing at the House of Commons dispatch box than the prime minister.

Some wild rumours were flying. David Cameron would be unable to attend because of a pressing prior engagement; like a speech on the big society, or washing his hair. William Hague would be standing in. Or poor Jeremy Hunt.

Personally, I was hoping he’d send Andy Hayman. “Nah, nah. I’m not ‘aving it. I’m not letting the right honourable gentleman get away with that”.

Sadly it wasn’t to be. Just before twelve a familiar figure appeared and took his seat on the government benches.

At least, it appeared it be a familiar figure. It looked like David Cameron. Spoke like David Cameron. Went pink in the face like David Cameron.

But could it really be him? Only the week before the old prime minister had accused Ed Miliband of opportunism for attempting to link phone-hacking to Rupert Murdoch’s BSkyB bid. Yet according to the new guy “It has become increasingly clear that while everybody to start with wanted in some way to separate what was happening at News International and what was happening at BSkyB that is simply not possible. What has happened at this company is disgraceful, it should be stopped at every level, and they should stop thinking about mergers and sort out the mess they’ve created”.

Old Dave had refused to call for Rebekah Brooks to resign. The new fella seemed to think she’d already done so, and what’s more, he welcomed it; “She was right to resign. That resignation should have been accepted”.

If Ed Miliband was fazed by the appearance of this prime ministerial doppelganger he didn’t show it. Then again, he’s undergone a bit of transformation himself. This time last week many in his own party were accusing him of being the new Ramsay McDonald for his betrayal of striking public sector workers. Today the public sector workers could go hang. The only pensions the Labour party was interested in were those of Murdoch and Brooks. And it wanted them drawing them in double quick time; “It would be quite wrong for them to expand their stake in the British media”, Miliband said, “Rupert Murdoch should drop his bid for BSkyB, should recognise the world has changed, and he should listen to this House of Commons”.

New Cameron agreed. He welcomed the cross-party approach being adopted by the leader of the opposition.

Ed Miliband rose again. This time he was wearing an expression of almost pained sincerity that left no one in any doubt that the time for cross party consensus was over. Could the prime minister clear up one specific issue. Why was his former press secretary Andy Coulson a liar, a cheat, a blagger, a bounder, a baby snatcher, a forger, a cattle rustler, a grave robber and a teller of tall tales. Oh, and why had the prime minister been so unbelievably stupid in employing him?

Last week this sudden switch from civility to attack had thrown David Cameron. But that was a lifetime ago. And New Cameron was ready.

When Coulson had been employed he’d given him assurances. Not only that, he’d given those same assurances to the police, a select committee and under oath to a court of law; “if it turns out he lied it wont just be that he shouldn’t have been in government, it would be that he should be prosecuted. But Mr Speaker, we must stick to the principle that you are innocent until proven guilty”.

It may be that Ed Miliband was expecting a more evasive response. Or that in the excitement of the last week, he’s begun to believe Cameron was a broken opponent. For whatever reason, the confidence visibly began to drip away from him; “Mr Speaker, he just doesn’t get it”, he said, falling back on that well worn phrase he uses when he can’t think of a more spontaneous riposte. The Tory back-benches, sensing it, bayed in relief.

“I’m afraid, Mr Speaker, the person who is not getting it is the leader of the opposition”, responded New Cam. “What the public want us to do is address this firestorm. They want us to sort out bad practices at the media. They want us to fix the corruption in the police. They want a proper public enquiry”.

The world had indeed changed. But maybe not quite as much as we thought.

Dan Hodges is contributing editor of Labour Uncut.

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We are communitarians, so Miliband can lead us as Cameron can’t

13/07/2011, 08:10:46 AM

by Jonathan Todd

“We know no spectacle so ridiculous as the British public in one of its periodical fits of morality”.

Denis MacShane sought to console speaker Martin by writing to him with the words of Thomas Babington Macaulay at the height of the expenses scandal. But was this quotation really appropriate?

Weren’t the British people right to be aggrieved by elected representatives defrauding them? Aren’t they also legitimately angry with, as Ed Miliband put it, “bankers who caused the global financial crisis” and “those on benefits who were abusing the system because they could work – but didn’t”? And can there be any doubt that the revulsion of the public against the News of the World is justified?

The spikes in outrage against fiddling politicians and phone-hacking journalists, as well as the slower burning resentment at welfare cheats and fat cat financiers, makes a nonsense of Macaulay. The people he mocks instinctively know right from wrong. And in this intuitive grasp we see ourselves for what we are: communitarians.

The philosopher Julian Baggini foreswore ivory towers and spent six months with the people of Rotherham before concluding that this is the philosophy of the English. It was, incidentally, in the same town that Gerry Robinson tried to “fix the NHS” and Jamie Oliver “taught the poor to cook”. This is a worldview that stresses the responsibilities of the individual to the community. Membership of the community entitles rights and privileges but responsibility demands that these be reciprocated.

We are a nation that wants to see itself made up of; hard working families who play by the rules. We want those who play by the rules to be supported and to get on. We want those who don’t to be punished. The ascendency of Thatcherism, with its win-at-whatever-cost individualism, has obscured the extent to which we see ourselves as members of social groups to which we owe allegiance and the execution of responsibility.

Those who can work have a responsibility to do so. Those who can work but don’t should be penalised. Law makers have a responsibility not to be law breakers. Just like everyone else, including journalists and bankers. And they should feel the full force of the law when in breach of it. These professions are, however, held to more exacting standards of responsibility than legal compliance alone. Their integrity demands more than this. The irresponsibility of hacking the phones of grieving families is about much more than breaking the law.

As Ed Miliband’s advisor Greg Beales tweeted last Wednesday: “Today Ed Miliband spoke for the country because David Cameron can’t. Very important moment”. Tony Blair drew applause from a Progress audience last Friday by saying: “Ed Miliband has shown real leadership this week”. (more…)

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Two kinds of brave

12/07/2011, 11:30:01 AM

by Rob Marchant

Steve Richards in the Independent – what seems like an age ago but in reality only last Thursday – defended yesterday’s Labour politicians from the easy criticism that they should have acted against Murdoch. Oh how Blair and Brown bowed and scraped, some are saying. Rubbish. They saw the world as it was, and they prioritised getting and maintaining a Labour government over dealing with a longer-term and mostly intractable problem, the risible regulatory framework which exists around the British media. As had all the other governments before them. Perhaps they shouldn’t have: but it is equally plausible to say that the opportunity to take on the empire just didn’t present itself. It has now.

And the game is changing so quickly, hour by hour, that it is safe to say that no-one, on any side of the debate, really knows how it’s going to end. The astonishing thing is that it could really be anything across a very broad spectrum, starting at dirty tricks bringing down a Labour leader or other key protagonists, and finishing at the other end with the fall of a government. For this reason, the British media has gone into headless-chicken mode and is looking on impotently.

Ed Miliband has done a first-class job in playing the hand he has been dealt. His Monday commons performance against Jeremy Hunt, for example, was well-planned and well-executed. Tony Blair said on Friday he has “shown leadership” and he is right.

Where the esteemed Mr Richards’ analysis falls down is in one phrase: “For the first time…Miliband could display authentic anger without fear of retribution from News International.”

So, you think News International is suddenly going to roll over and die after a few bad days in the press? Er, no. Even if the Armageddon scenario for Murdoch – a meltdown of his empire – is a possibility, it is by no means a guaranteed one at this point. (more…)

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Phone-hacking is not the magic bullet

12/07/2011, 07:00:49 AM

by Dan Hodges

It was the Sunny ‘wot won it. “We killed the News of the World!”, screamed Liberal Conspiracy on Thursday afternoon, via a headline, replete with slammer, of which Rebekah Brooks would be proud. “Vindicated – a win for Labour MPs and the left online”, gushed the slightly more restrained Labour List; “Uncovering the catalogue of misdeeds by the paper, and the work in recent days to encourage advertisers to distance themselves from the News of the World, has been nothing short of inspirational”.

Thanks. I’ll find my inspiration elsewhere.

Now that the dust is beginning to settle over the ruins of what, in my unfashionable view, was a once great British newspaper, perhaps it would be a good idea to step back. Actually, screw it, let’s not. Let’s have a quick dance on the rubble before we get another News International title in our sights.

We may not be any good at winning general elections, but boy, are we good at shutting newspapers. Not that we actually wanted to. When we called on advertisers to boycott the paper, and then threatened those that wouldn’t, we didn’t want anyone to lose their jobs. They’re unfairly paying the price for the greed and excess of others, you see. It was Murdoch that closed the News of the World, not us. What do you mean we said we killed it?

Enjoyable though the spectacle of the British establishment eating itself alive may be to some, we are heading in to dangerous waters. And by ‘we’, I mean the Labour party. (more…)

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Give Ed credit – his leadership has just changed gears

11/07/2011, 01:00:14 PM

by Kevin Meagher

Last week was a watershed for lots of reasons. It saw a recalibration of the relationship between the tabloid media and politics. It spelled the end of Rupert Murdoch’s infallibility; with the media Mephistopheles left looking vulnerable and hopelessly out of touch. And it marked the point where David Cameron’s teflon coating started to rub off. The familiar attacks on his poor judgement and his arrogance fusing in one perfectly resonant episode.

But it saw something else too; the point where Ed Miliband looked, sounded and acted like a leader. He was not the architect of the events that unfolded last week – opposition leaders seldom make the weather like that – but he has become the first leading politician in living memory to get up off his knees and challenge the malign hold Murdoch and his acolytes have on British politics.

Tentative at first, by the end of last week his positioning was assured. In calling for Rebekah Brooks’ head, the scrapping of the press complaints commission and then pressing for the appointment of a judge to lead the hacking-gate inquiry, Ed was on the front foot throughout. His robust performance at this morning’s press conference further evidence that this episode marks a change in gear for his leadership. (more…)

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BskyB vote: time to put your money where your mouth is

11/07/2011, 07:00:54 AM

by John Woodcock

After Ed Miliband made the running last week, members of parliament from all parties have said sensible things about the need for a new relationship between politicians and the press.

But the test of whether we understand the gravity of the current situation will come on Wednesday when the house of commons votes on Labour’s motion to delay the BSkyB takeover bid until the current criminal investigation into News International has concluded. I hope MPs on the government benches will put aside their differences and vote with us. They will have spent the weekend listening to constituents who simply will not understand if they talk a good game but fail to act.

Ed has been bold and astute. Over the past week he understood and communicated just how much changed with the revelation that this activity systematically targeted the public not just the famous. But of all the calls he has made, the most important may ultimately prove to be the way he has positioned Labour as champion of a continuing free press in Britain. (more…)

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In praise of… the Guardian

10/07/2011, 05:41:19 PM

by David Talbot

Since early 2008 the Guardian’s daily editorial encomium has praised some 841 men, women, organisations, objects and events. But given the extraordinary proceedings that have marked a seismic week in British journalism, no other entity deserves more praise than the Guardian newspaper itself.

If the paper’s revelations had only concerned lurid journalism it would be disgraceful but not sinister. However, the way that the News of the World, the police, the press complaints commission and some politicians appear to have prevented the exposure of systematic phone-hacking, is a reminder of just how much of a stranglehold the Murdoch empire has over British officialdom. The man is rarely seen, but his presence is always felt. Until now all Conservative and Labour leaders have served a rite of passage to canoodle with the Murdoch apparat with a desperation that demeans them and their office. This political corruption has often been rather more alarming than any duck island, and all together far more destructive.

This is one of the biggest scandals in British public life for decades, but the actions of many a hitherto respected institution has been feeble in the extreme. The Metropolitan police has been disgracefully uncooperative, which yet further highlights their sordid links to the media. Parliament, bar a noble few, so long beguiled by the power of the Murdoch press, has dared not speak out. The prime minister, speaking at the dispatch box on Wednesday, effectively evaded questions as to the complicity of the then News of the World editor Rebekah Brooks in the whole affair. And vast swathes of the British media turned a blind eye, in the knowledge that they too were indulging in the very same practices and fearful lest the forensic focus fall on them and their dealings. (more…)

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What the Lib Dem response to the News of the World meltdown tells us about the government’s political strategy

08/07/2011, 08:29:12 AM

by Atul Hatwal

For the moment, all eyes are on News International. Over the coming days, the focus will broaden as the political implications start to be fully felt.

At this stage, it’s difficult to tell definitively what the political fall-out will be, but one small political development has become apparent which will potentially have major consequences for Labour.

Note the position of the Lib Dems. They’ve staked out a distinctly more hawkish stance than Cameron, calling for tougher action, Rebekah Brooks’ resignation and a judge-led enquiry.

This follows on from a few weeks where Cameron and Clegg, last year’s political love birds, have been engaged in some seemingly sharper public exchanges.

The new mood was first evident on June 20th, when David Cameron subjected himself to the forensic questioning of Steve Wright in the afternoon on radio 2.

Out of the blue, he broke new political ground when he said that the Tories would have been tougher on immigration and welfare without the Lib Dems.

Apparently piqued, Clegg fired back two days later on his visit to Brazil saying that without the Tories the Lib Dems would have been tougher on the banks.

Looking at the change in tone, it’s easy to view this as a part of a linear process that starts with flowers in the Number 10 garden and ends in a bitter split. The New Statesman‘s Rafael Behr declared,

“With the prime minister now attacking his deputy openly on the radio, it’s clear that the early truce is over. How will the two parties convince voters that coalition is still a viable option for 2015“?

The Lib Dem position on hacking would seem to back this up. It has certainly been written up as such.

(more…)

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You cant reform a monster – News International must be broken up

07/07/2011, 12:26:59 PM

by Anthony Painter

When information empires become too powerful they have to be broken up. News International and connected companies have become too powerful. They should be broken up.

Tim Wu’s The Master Switch details many such moments in US history where communications and media companies have reached a size where they dominate the marketplace and begin to infect public and cultural space. Courts or the federal government have stepped in to either break up or place such behemoths in a regulatory stranglehold. It happened when the Nixon administration began the break up of AT&T in the 1970s for instance.

All this begs the immediate question: what is too powerful? It can take a number of different forms. In the case of News International, it is its ability to subvert democratic process and divert law enforcement from its proper course. In other words, it’s not the morally reprehensible and criminally abhorrent phone hacking that occurred at the News of the World per se. It is the fall out from hacking that makes clear the degree to which News International and the News Corporation have been able to prevent due process from occurring and its capability to resist political and public revulsion at its behaviour. (more…)

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