McNally - Ofcom should defend ITV

Lord McNally in an article for expNews said that the Communications Act provides ITV no protection from hostile US-led takeover, leaving - in his view - UK viewers and production at risk.

He writes:

“When the Puttnam Committee (the joint pre-legislative scrutiny committee on the Communications Bill) reported in July 2002, one of its key recommendations was that the new regulator, Ofcom, should be asked to examine the implications of non-EU ownership of ITV before any such transfer of ownership would be allowed.

Our reasons were threefold:

First we believed that such an exercise would provide a breathing space to allow a unified ITV (which we supported) time to settle down and establish some sort of track record before it was again thrown into the melting pot by take-overs and rumours of take-overs.

Secondly we wanted to give Ofcom time to settle into its new role as super regulator. Lord Currie, its chairman, and his team assume their responsibilities on 29 December of this year.

Thirdly, we wanted, to quote the Puttnam report, “evidence rather than a decision based on largely unproven expectations” to determine whether an American or other foreign financed take-over would provide the benefits ministers claimed would flow from such a management change.”

He also stated that:

“Lord Currie, even before he gets behind his desk at Ofcom, should make it clear that would be purchasers of ITV are not buying a vacant lot…it may be left to [him] and Ofcom to prove that they have more teeth than might previously have been thought and that he is willing to use them if the City makes ITV into a speculative football. ITV is a national asset with national responsibilities going beyond shareholder profit, and the regulator must be prepared to defend those interests against a City bounce.”