MPs refuse to endorse Blair plan

Tony Blair today faced powerful opposition to his plans to open up terrestrial TV stations in Britain to Rupert Murdoch and other foreign-based media chiefs.

An influential committee of MPs and peers said restrictions preventing Mr Murdoch from taking over Channel 5 or parts of ITV should remain in place for several years.

The Prime Minister has already signalled he will push ahead with proposals to lift restrictions - sparking Tory claims he has done a pre-election deal with the media mogul. However, today's long-awaited report sets up a damaging clash between ministers and the leading media figures on the committee.

Its chairman is film producer Lord Puttnam, who said restrictions against Mr Murdoch should remain in place until they have been reviewed by Ofcom, the giant new media regulator.

Lord Puttnam said today: "Before Ofcom has established itself as an effective regulator the case for the lifting of certain existing restrictions has not been established to our satisfaction."

In practice, it could be several years before reviews take place. They would be expected no earlier than 2006 - after the expected date of the next general election.

In particular, Mr Murdoch, who is a US national, is held in check by bans on a non-European national owning a broadcasting licence for terrestrial television and on the proprietor of a big newspaper group taking over Channel 5.