Lords Challenge UK Government Over Ownership Restrictions In Communications Bill

by Robin Pilgrim, LawAndTax-News.com, London

05 June 2003

According to reports in the UK media, a cross-party alliance of UK peers was this week gearing up to challenge provisions in the government's Communications Bill which restrict ownership of news supplier, ITN.

Although a number of members of the House of Lords involved with the media- and thus been dubbed the 'Luvvie Lords'- have protested planned changes to the UK's media ownership rules, the current group of rebel peers are arguing from a different perspective.

In the run-up to Tuesday's debate on the proposal to raise the cap on ownership of ITV news provider, ITN from 20% to 40%, reports revealed that the peers, whose numbers include Conservative shadow culture minister, Baroness Buscombe, and Liberal Democrat culture spokesman, Lord McNally were planning to call for the cap to be eliminated altogether.

Currently, ITN is owned by Carlton, Granada, Reuters, the Daily Mail, and General Trust and United Business Media, all of which hold the current maximum share of 20%.

However, the Guardian on Tuesday quoted Baroness Buscombe as observing that:

'If the government is prepared to rely elsewhere on content rules as the safeguard to liberalisation of media ownership, there is no reason why it should treat this area differently. Hamstringing ITN with ownership rules that will hamper its ability to secure investment will weaken competition in the news supply market and ultimately be to the detriment of viewers and democracy as a whole.'

The debate comes as it was announced that the US Federal Communications Committee had voted 3-2 in favour of greater liberalisation of media ownership in the United States.

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