Government backs Labour call for Murdoch to ditch BSkyB bid

MPs from all parties likely to support motion calling on News Corporation to withdraw bid in wake of phone-hacking scandal The government will support Labour’s motion asking MPs to call on Rupert Murdoch’s News Corp to withdraw its BSkyB bid in a Commons debate on Wednesday. MPs from all sides seem likely to back the motion, which reads: “The house believes that it is in the public interest for Rupert Murdoch and News Corporation to withdraw their bid for BSkyB.” The vote would constitute an expression of Commons opinion and not be binding on a private company. However, Ed Miliband said it was necessary sometimes for parliament to speak on behalf of public opinion. Government sources said the Competition Commission review would continue for now and News Corp declined to comment. Shortly after the wording of the motion emerged the prime minister’s spokesman said: “We are intending to support it.” Asked whether the government believed that News Corp should heed the will of parliament, the spokesman replied: “Ultimately, that is a decision for News Corp but we would always expect people to take seriously what parliament has said.” News Corp withdrew on Monday an offer to spin off Sky News, triggering a referral of its bid to the Competition Commission. The commission’s inquiry will take a minimum of six months and then be referrred to the culture secretary, Jeremy Hunt. Many Liberal Democrat MPs will also support the motion, regarded as in order by the parliamentary clerks It also emerged that Miliband would meet David Cameron and Nick Clegg on Tuesday night to discuss the terms of reference of two government inquiries – one judicially led – into the multiplying scandals. Miliband is trying to ensure that the judicially-led inquiry in which witnesses will give evidence under oath, is broadly drawn, looking at relations between police and newspapers across Britain, as well as phone hacking and other illegal activities in all newspapers, not just the now closed News of the World. Miliband is also calling for the judicial inquiry to look more broadly at relations between the media and politicians. At his Friday press conference, David Cameron suggested the planned terms of reference meant that the non-judicial inquiry would look into issues of press culture and regulation, as well as media relations with politicians. Miliband said: “There are times when the House of Commons has got to rise to the occasion and speak for the public. “We have said the purchase of BSkyB should not proceed until after the criminal inquiries are complete. The simplest way to achieve this is for the Rupert Murdoch to recognise the feelings of the public and the will of the House of Commons and withdraw this bid. I am calling on parliament to show its will tomorrow.” One reason for the motion is that it would allow the bid to be deferred at least until the criminal investigation into phone hacking at News International has been completed, and even until the judicial inquiry has reported – which might take two years. Hunt has no power to defer a Competition Commission inquiry that will take between six and nine months. He can then take as long as he wishes to decide whether to accept the findings of the commission inquiry. If the motion is passed on Wednesday, the Murdoch group of companies will have to decide whether they want to defy parliament and press ahead with the bid. A long deferral of the bid would have damaging commercial consequences for the company because the full takeover of BSkyB is seen as important to create synergies across its worldwide satellite investments. Miliband added that a clear vote would be seen as a way of telling Hunt that the Commons regards a Murdoch takeover of BSkyB as not in the public interest, at the least until the extent of the criminality has been discovered. Phone hacking Newspapers & magazines National newspapers Newspapers Ed Miliband David Cameron Jeremy Hunt News International News Corporation Media business BSkyB Television industry Patrick Wintour guardian.co.uk

Posted by on July 12, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.