Blair faces backlash on TV free-for-all

TONY BLAIR today faced criticism over his proposals for a massive shake-up of the media with critics ranging from former minister Chris Smith to analysts in the City, who predicted a fierce free-for-all.

The proposals unveiled in the draft communications Bill allow the owners of British newspapers, for the first time, to bid for Channel 5. This ends the ban on any media group with a 20% share or more in the market from owning a terrestrial TV channel. The Bill also paves the way for non-European companies such as Disney or AOL to buy other TV stations and also buy into ITV.

However, the Government has decided that owners of British newspapers will not be allowed to hold a significant stake in ITV, to protect the diversity of news broadcasting. Another rule contained in the Bill will also prevent anyone from owning all the newspapers and the regional ITV licence in any region of Britain or major city.

Smith, former culture secretary and customarily a loyalist, raised concerns that plans for the BBC were not 'set in stone', amid unhappiness that the corporation will be allowed to carry on policing itself, rather than coming under the watchdog, Ofcom.

The City was bracing itself for a flurry of mergers and takeovers on the back of the changes. Media analyst Matthew Horsman, of Investec Securities, warned: 'It's a free-for-all.' There was also concern from groups representing viewers. Jocelyn Hay, chair of the Voice of the Listener and Viewer group, said it put commercial interests before those of the public. 'It is important that national radio and television stations should be separated from major newspapers.'

Several Labour MPs were also expected to voice anxieties about the relaxation of the ownership rules, which could allow Rupert Murdoch's empire to control Channel 5. There was suspicion among backbenchers that intensive lobbying by the media mogul's News International group had led to the Government deciding to abolish the ban on newspaper groups, which control more than 20% of the market, from owning radio stations or terrestrial TV channels.

Culture Secretary Tessa Jowell, publishing the draft communications Bill, said the legislation would 'liberalise the market, so removing unnecessary regulatory burdens and cutting red tape, but at the same time retaining some key safeguards that will protect the diversity and plurality of our media'.