UK media law shake-up set to block Murdoch
By Cathy Newman, Political Correspondent
Published: April 28 2002 21:28 | Last Updated: April 29 2002 08:29



Rupert Murdoch (pictured) is to be barred from expanding into free-to-air television stations in Britain under a shake-up of media laws to be announced within weeks.

Downing Street is putting the finishing touches to the communications bill, which is to be published after this week's local elections.

Currently, media organisations such as Mr Murdoch's News Corporation that control more than 20 per cent of the national newspaper market are prevented from buying more than 20 per cent of ITV, Channel 5 or a national or local radio service.

Most of these cross-media restrictions are set to remain. However, according to details of the bill, the new laws will enable Mr Murdoch - whose newspapers have been courted by the New Labour government - to acquire more than 20 per cent of local radio stations, subject to strict conditions. But that is a small consolation prize, given his lack of interest in the sector to date.

Ministers hope to avoid alienating Mr Murdoch, whose News Corp owns The Times, The Sun and 36.3 per cent of pay-TV group British Sky Broadcasting, in the run-up to any possible euro referendum. But they are also keen to preserve the editorial independence of the country's media.

Downing Street could yet alter the fine print of the bill, which has been agreed by the trade and culture departments.

The ownership changes will clear the way for a merger of struggling ITV groups Carlton Communications and Granada by scrapping the rules limiting one company to 15 per cent of the television audience.

The radio changes will be a big relief to another national newspaper proprietor, Trinity Mirror, owner of the Labour-supporting Daily Mirror and a host of regional titles. The company will be free to pursue its long-stated aim of buying into local radio.

Trinity Mirror does not give direct political donations, but it paid £55,250 in sponsorship to the Labour party in 2001, and £65,000 in 2000.

An aide to Tessa Jowell, culture secretary, said that the new laws did not favour any one proprietor. "We are going to do this on principles rather than trying to be friendly to any media group."

The two big national newspaper groups will still be prevented from buying more than 20 per cent of Channel 5 for the time being. But the Whitehall insider indicated that Ofcom, the new communications regulator, could review restrictions on Channel 5 ownership "if competition increases". The insider said: "Ofcom will be able to look at Channel 5 if the time comes, if there are other channels that come along."

The changes to cross-media ownership rules were only recently agreed and will be published alongside the communications bill in a separate policy document.