Education, Culture and Sport Committee, 08 Oct 2002

Meeting date: Tuesday, October 8, 2002

Official Report 184KB pdf

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Scottish Media Group

I draw members' attention to another potential issue. It is not about the bill so I am probably abusing my position as convener by raising it. There is some concern about the proposed sale of the Scottish Media Group newspapers. Jackie Baillie has indicated that she wants to raise the issue. Given that the Parliament is about to go into recess for two weeks, I will allow her to raise it. I may be given a row later for doing that, but it is important that we do something at this stage, rather than wait three weeks before we act.

I thank the convener. It is with that time scale in mind that I feel that the committee should reflect on the issue and do so quickly. I understand that members who are not present today expressed a similar interest in the matter in the chamber.

My suggestion is that, given the amount of debate that there has been about the sale of the newspapers within the Scottish Media Group, we should consider the matter on the basis of wanting to preserve the independence of newspapers and the diversity of the media in Scotland. That needs to be reflected in the debate in the new post-devolution context. I suggest that we write to the minister responsible, Melanie Johnson, and perhaps copy the letter to Patricia Hewitt.

I will also make several points that have been made to me. First, my understanding is that the bidder in this case is Ellerman Investments. Although people will claim that it has no trade interests, Ellerman Investments has a direct association with The Scotsman Publications (Holdings) Ltd; they are both owned by David and Frederick Barclay. That is of trade interest. We should write to suggest that perhaps ministers might consider referring this to the Competition Commission.

The second point that has been made to me—I cannot pass judgment on it as I am not a business analyst—is that the bid is higher than was expected. There are fears, although I cannot comment on them, that attempts will be made to recoup a significant amount of those costs by changes further down the line. It would be appropriate for us to write to ministers to ask them to consider the matter.

Are members happy with that course of action? It does not preclude our placing the issue on the agenda for a meeting after the recess. It would be useful for us to copy the letter to the Secretary of State for Scotland, given her role in the negotiations on some of the issues.

I am not a member of this committee, but I am a member of the Enterprise and Lifelong Learning Committee. It strikes me that there is a comity of interests. Consideration of the plurality of the media is obviously a proper exercise of the Education, Culture and Sport Committee's remit in terms of its scrutiny role and its advice to the Executive.

The matter is also important to the Enterprise and Lifelong Learning Committee in that it has tremendous implications for jobs—high-value-added jobs. I am anxious about the unfolding situation. It strikes me that there is the risk of a challenge to the plurality of the ownership of an important section of our print media. I cannot bind other members of the Enterprise and Lifelong Learning Committee, not least because I gather that Alex Neil is out of the country, but I am able to say to this committee that the Enterprise and Lifelong Learning Committee has an interest in the matter. Perhaps we could do some joint work on it.

I do not want to get into a big discussion on the matter, because it is not an agenda item. I know that Cathy Peattie wants to comment. I will copy my letter to Alex Neil, for the information of the Enterprise and Lifelong Learning Committee.

I am obliged.

The convener may recall that in the past we have considered some issues to do with SMG. There were concerns about our remit, but it is clearly an important issue for us as it relates to culture and jobs in Scotland. I have to say that Mike Russell has said that he wants to be involved in any future discussions. I assume that that will happen because the matter may be on the agenda, if necessary. It is important that we take some action.

I thank members for their indulgence.

Meeting closed at 15:40.