Plans to allow companies from outside Europe to buy UK television and radio stations are expected to be pushed through despite objections from MPs.
The forthcoming communications bill should make it possible for the major entertainment groups to buy into UK TV, while changes in cross-media ownership means that Murdoch – owner of The Sun and The Times – would be able for the first time to buy into terrestrial TV here, probably Channel 5.
A committee of MPs examining the draft bill said any relaxation of the rules on foreign ownership of UK media should not take place until new regulator Ofcom had reviewed the issue. They are worried foreign ownership would lead to a sophisticated attempt to shift expectations "away from domestic content produced primarily with a British audience in mind, towards a more US or internationally focused product mix.” They also argued it was unfair for Britain to open up its TV industry for sale when American legislation protected the interests of its own media groups.
But the government said today it intended to press ahead with its plans. "Obviously we'll listen to the select committee in terms of fine tuning but the government remains committed to the principles of the bill," said the prime minister's official spokesman. The government is still likely to face opposition in the Lords, especially as the committee’s head was Lord Puttnam, who is adamant it is not for the government to reject the report's recommendations.
Since the proposed bill was first put forward there have been rumours that Murdoch's News International and other international media organisations like Disney and AOL Time Warner might be interested in expanding their UK media, while US radio giants Clear Channel hinted they would take advantage of any changes in radio ownership legislation.