Commons Sense

House of Commons · Ministerial Statement

Telegraph Media Group Ltd: Acquisition

30 April 2024 · 15 other contributors

Opened by Lucy Frazer Con South East Cambridgeshire

Culture, Media & Sport

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Lucy Frazer raised concerns about telegraph media group ltd: acquisition in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Secretary of State for Digital, Culture, Media and Sport announced the proposed acquisition of the Telegraph Media Group by RB Investco Ltd is in contemplation.
  • The purchaser has notified its intention to withdraw from purchasing the Telegraph following a public interest intervention notice and a phase 2 investigation assessment.
  • The Secretary of State clarified she will not engage with prospective buyers or select a preferred bidder.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Lucy Frazer

The Secretary of State for Digital, Culture, Media and Sport announced the proposed acquisition of the Telegraph Media Group by RB Investco Ltd is in contemplation. The purchaser has notified its intention to withdraw from purchasing the Telegraph following a public interest intervention notice issued on January 26, 2024, and an assessment on March 19th that a phase 2 investigation may be required. The Secretary of State clarified she will not engage with prospective buyers or select a preferred bidder but will continue to oversee the process based on the public interest. She emphasised the importance of protecting accurate news presentation and free expression in newspapers under the Enterprise Act 2002, stressing that foreign state ownership is incompatible with these principles. The Government aims to limit foreign influence while maintaining an open economy.

Other contributors (15)
  • Thangam Debbonaire Lab Somerton and Frome

    Question

    The MP welcomed the statement but raised concerns about the Government's initial handling of the sale. She expressed disappointment in the Government not addressing public interest concerns from the start and questioned the timescale for the auction, discussions with trade unions, and measures to ensure a free and open sale.

    Minister reply

    The Minister reiterated her point that all foreign states are treated equally under legislation and welcomed the relationship with the UAE. She noted no previous record of the MP raising this matter directly or in the House. The Minister explained freedom of press is upheld through existing regulatory processes, including a pre-emptive order to restrict changes during the sales process, aiming for certainty and an open sale.

  • Caroline Dinenage Con Gosport

    Question

    The MP welcomed the Secretary of State's statement and inquired about RedBird IMI’s role during the period leading to finding a new buyer. She also asked if RedBird would hold a non-controlling stake after this process.

    Minister reply

    The Minister clarified that governance will remain as it was under existing regulations, ensuring independence for directors and managers. The sales process must follow regulatory requirements in place.

  • Kirsty Blackman SNP Aberdeen North

    Question

    Questions the process and timing of RB Investco and UAE involvement in Telegraph Media Group, suggests tightening up Enterprise Act and legislation to prevent foreign interference. Also asks if media freedom from foreign interference is important despite financial difficulties.

    Minister reply

    Tightened the process significantly through an amendment to the Lords, ensuring no foreign state can control or influence media. This protects democracy.

  • John Whittingdale Con Maldon

    Question

    Compliments on scrupulous handling of responsibilities and asks about progress in bringing media merger regime up to date with digital changes.

    Minister reply

    Acknowledges the need for updating laws due to digital transformations and mentions ongoing review of online news inclusion under Ofcom’s powers.

  • Sarah Owen Lab Luton North

    Question

    Concerned about Telegraph Media Group staff jobs and potential future impact on media jobs and competitiveness.

    Minister reply

    Implemented measures to protect TMG management, editorial team from changes until final decision. Current pre-emptive order prevents prejudiced decisions regarding staff changes.

  • Iain Duncan Smith Con Chingford and Woodford Green

    Question

    Suggests the current process is too slow for a digital world and recommends legislation that would prevent foreign state ownership of media. Also mentions online elements.

    Minister reply

    Reassures that upcoming amendment will clearly state inappropriate for foreign states to own news media, including broad definitions beyond direct ownership.

  • Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

    Question

    Expresses concerns about survival of local newspapers and asks Secretary of State to look into the issue.

    Minister reply

    Acknowledges importance of local media for democracy, mentions past initiatives like a local news fund and business rates measures.

  • John Redwood

    Question

    Asks for clear statement in proposals that foreign states include public authorities or companies with significant influence.

    Minister reply

    Amendment to legislation will broadly define 'foreign state ownership' including control and influence, not just direct ownership.

  • Kevin Brennan

    Question

    Presses the Secretary of State about staff changes under any potential deal and job losses.

    Minister reply

    Cannot pre-commit to decisions without looking at evidence, as it would be inappropriate given her quasi-judicial role.

  • Alexander Stafford

    Question

    Asks for clarification on how online and television media will be affected by the order and inquires about steps against disinformation.

    Minister reply

    Ofcom already has powers to ban certain entities from operating, especially foreign propaganda channels; government is looking at tackling misinformation.

  • Jim Shannon DUP Strangford

    Question

    Asks for steps to prevent scrambling in protection of British speech and media from international influences and legislative protections.

    Minister reply

    Emphasises importance of freedom of the press, considers points raised; will deliver a speech later on protecting free speech.

  • Rehman Chishti

    Question

    Welcomed the Secretary of State's statement and decision to protect free media. Asked for clarification on what key evidence influenced the decision.

    Minister reply

    Responded by mentioning that the threshold for intervention had been passed due to concern over interference with accurate news presentation and freedom of the press. Cited detailed reports from Ofcom and the Competition and Markets Authority, which were reviewed before making a decision. The letter detailing these considerations was published.

  • Christine Jardine Lib Dem Edinburgh West

    Question

    Welcomed the statement on press freedom but expressed concerns about ongoing foreign interference in media beyond just newspapers, including online and television. Asked if the Government would continue to monitor this situation regularly.

    Minister reply

    Stated that the Government always keeps matters under review. Highlighted a robust system for dealing with press freedom interference, mentioning powers under the Enterprise Act and upcoming legislation aimed at preventing foreign state influence in British newspapers.

  • Richard Foord Lib Dem Honiton and Sidmouth

    Question

    Welcomed intervention regarding UAE ownership of Telegraph Media Group but raised concerns about potential foreign government interference with free speech at universities hosting institutes partly funded by them. Mentioned a Government-appointed director’s warning on this issue.

    Minister reply

    Stated support for free speech and academic freedom, advising the MP to raise his concerns directly with university authorities responsible for these matters.

Shadow Comment

Thangam Debbonaire

The Shadow Secretary of State for Digital, Culture, Media and Sport welcomed the statement but criticised the Government's initial handling of the sale. She emphasised Labour’s commitment to safeguarding a strong and independent free press regardless of political persuasion. The shadow minister questioned the timescale for the auction process and requested updates from the Minister on discussions with trade unions representing Telegraph staff and measures to ensure an open and competitive sale.

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