The press release from the Newspaper Society says: “Setting out plans to ensure “a vibrant local media market in the future” this week, culture secretary Mr Hunt also announced that that the Government would not be continuing with the independently funded news consortia scheme, although he recognised the high degree of innovation and level of partnerships which emerged through the pilot procurement process;
He said: “The Government believes in localism and the enormous benefits of fostering local cultural, economic and political identities.”
“We are driving forward greater transparency at all levels of public life – and the challenge and scrutiny of local journalists is vital to that,” added Mr Hunt. “I want a modern regulatory environment which will help nurture a new generation of hungry, ambitious and profitable local media companies.”
The plans he set out involve:
• accepting Ofcom’s recommendations on reforming local cross-media ownership rules meaning they will be significantly relaxed and in addition asking Ofcom to now look at the case for removing all cross-media ownership rules at a local level, to enable local newspapers to own local commercial radio stations and set up local TV stations as well as benefit from economies of scale. Secondary legislation will be brought forward to enact the changes as soon as possible in the summer.
• looking at options for supporting new local TV stations in towns and cities.’ by conducting a full assessment of the regulatory and commercial context for local TV with strong independent input in order to identify the interventions which can best secure sustainable local television in this country’
Mr Hunt has appointed Nicholas Shott, Head of UK Investment Banking at Lazard, to conduct an independent commercial assessment of local TV over the summer. Following this assessment, the Department for Culture, Media and Sport will set out a local media action plan due to be published in the autumn.
Responding to Mr Hunt’s announcement, Sly Bailey, Trinity Mirror chief executive, said: “Given the Conservatives’ stance on independently funded news consortia while in opposition, today’s announcement has not come as a surprise.
“However, as part of one of the successful IFNC bidding consortia we’re naturally disappointed that the government has called time on these plans.
“We believed that the IFNCs’ capacity to tap the talent and expertise of regional media companies to provide a viable alternative to the BBC’s local news made sense for everyone.
“We look forward to seeing the results of the independent commercial assessment of local television but it’s worth noting at this point that we don’t see ‘City TV’ as a viable proposition. Our research suggests that the costs are too high and the revenues too low to support a sustainable business model.”
NS communications director Lynne Anderson said: “The NS has long campaigned for the liberation of cross media ownership rules at a local level. We believe that all local cross-media ownership rules, including the media public interest test, should be removed completely.
“Confirmation that the Government will not be going ahead with independently funded news consortia pilots for regional TV news will be a disappointment for a number of regional newspaper groups. Trinity Mirror has already commented that local city TV is not regarded as a commercially viable proposition.”
Funding for the independently funded news consortia pilots will now be used to support the roll-out of superfast broadband, Mr Hunt said."
Links:
• Media Keynote Speech by Jeremy Hunt MP (DCMS website)
• House of Commons Hansard Ministerial Statements for 08 Jun 2010 (Hansard)
