Liberal Democrats in Business

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ITV Merger: With No Ofcom, Jowell Must Step Up

3.50.41pm BST (GMT +0100) Tue 21st Oct 2003

Lord (Tom) McNally, Liberal Democrat Broadcasting spokesman, speaking at the Creators Rights Alliance Seminar at the Royal Society of Arts today said: "Prior to the passing of the Communications Act both the Puttnam Committee and the Liberal Democrats argued that ITV should be given a breathing space following merger by empowering the new regulator Ofcom to examine the case for permitting a possible American takeover of the new company. The Government wilfully ignored that advice on the totally untested basis that American ownership would produce better management and more investment with no dilution of either quality or British content."

"We now see the consequences of such a pig in a poke approach. ITV comes immediately into play with Boardroom coups and rumours of shadowy American predators waiting in the wings."

"Given that Ofcom does not take up its duties until 29 December, Tessa Jowell must make it clear to both City speculators and American would-be buyers that any change of ownership of ITV will have to clear the hurdles of public service license commitments and the public interest safeguards written into the Communications Act by Parliament."

"The right to terrestrial commercial television licenses is a public asset and, as such, the Minister has a responsibility to protect ITV and its future from exploitation by those whose first motivation is profit rather than quality and public service."

"I have asked today for a statement from the Government clarifying any role the Minister will play will in advance of Ofcom taking up its duties on 29 December and whether she intends Ofcom to apply the public interest test in the Communications Act to any proposed American bid for ITV."

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