Last gasp deal on UK comms law

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UK ministers have made a deal with Labour rebels led by Lord Puttnam, over the Government’s controversial media ownership proposals. The climb down came amid fears that a cross-party group in the UK’s upper chamber would block crucial clauses allowing US businesses to own ITV companies.

Culture Secretary Tessa Jowell, believed that the two sides were on the "verge of a breakthrough" which would prevent the Government’s Communications Bill suffering delay, disruption and even defeat in the House of Lords.

Jowell told The Times that the compromise deal with Lord Puttnam would give a "belt and braces guarantee" that the public interest would be protected. The new clause would see Ofcom, the new communications regulator, subjecting any merger or takeover to a stringent "plurality test, safeguarding the quality and independence of British programming".

Lord Puttnam wrote last night to peers saying that there had been "significant and welcome" developments. As a result he hoped to withdraw his own amendments on a "plurality test" and abstain on a measure designed to limit foreign ownership. He also promised to abstain on another specific rebel amendment protecting Five.

However, Ofcom’s newly appointed CEO Stephen Carter has said the eleventh-hour change to the remit of the new regulator marked a "considerable departure" from the role of the existing media regulators. It is far from clear how the ‘plurality test’ will be applied particularly as a media owners ‘dominance’ will have to be judged across mediums Ofcom has no remit over.

Another consequence of the deal is that ITV licence-holders will be able to own outright the commercial news provider ITN. Ministers had previously refused to contemplate lifting the restriction in the communications bill that prevents individual shareholders owning more than 40 per cent of ITN.