I will certainly take a close look at that. The hon. Gentleman raises an important point.
There are dangers in the statutory underpinning of regulation. I agree with what the Prime Minister said last week. I have concerns about elements of the Leveson report and would like to see how the media can bring forward plans for a robust system of investigation.
If there is a system of regulation underpinned by Ofcom, the ultimate sanction will be what it always is with Ofcom: the withdrawing of a licence. That is the ultimate sanction that Ofcom has in the broadcast industry, and it has withdrawn the licence of a broadcaster. I think that we would find it difficult to see the chairman of Ofcom, who is appointed by a Secretary of State, or its chief executive being given the power to withdraw the printing rights of a national newspaper. It may be difficult to envisage the circumstances where that might happen, but the idea makes me slightly uncomfortable.
Like the Secretary of State, my professional experience is in the advertising industry, which has what it calls self-regulation through the Advertising Standards Authority.
That model is seen as very successful, but it is underpinned by statute. That has not prevented many lobbying organisations from routinely pressing for changes to the advertising code and the practices of the advertising industry. It has not prevented Parliament from deciding to ban certain types of advertising, such as adverts for smoking, because it thinks that the standards being practised by the industry are not sufficient to protect the public. There are lobbying groups that are concerned about the advertising of fast food and about the portrayal of women in advertising. I do not want to get into whether those debates are serious and should be considered, but they are matters on which Parliament may seek to intervene to change the advertising code and the industry’s practices. Lord Leveson raises some concerns about whether, as a result of legislation, there may be similar pressure from Parliament for changes to occur.
In his summary to the report Leveson states that
“consideration should also be given to Code amendments which, while fully protecting freedom of speech and the freedom of the press, would equip that body—”
the new regulator—
“with the power to intervene in cases of allegedly discriminatory reporting, and in so doing reflect the spirit of equalities legislation.”
That could mean that for future or existing legislation there could be a requirement on the regulator to reinterpret the editorial code. As a result of that underpinning by statute we could have a creep of changes to the editorial code and practices—whether it was delivered by Ofcom or a new body—which would put pressures and new obligations on the independent body that currently do not exist.
It is not clear that Lord Leveson understands how far that could go and he gives an example in his report:
“Those representing women’s and minority groups—”
it could apply to a number of groups—
“would be entitled to retort that if the Code as currently worded creates the kind of legalistic difficulties which have just been outlined, then the solution is a straightforward one: simply amend the Code. The force of this point is noted, but it should be considered in depth by any future regulator, rather than by this inquiry.”
That is not desperately helpful; it suggests that although he is creating something, he does not understand the full extent of where it might go or the full consequences of the changes that might be introduced. We should pause to reflect on that as there is some cause for concern about what direction it may ultimately take.
I believe that we should consider the advertising model and its consequences as an example of something that is independent yet underpinned by statute, and the changes that could come from that. Lord Leveson set out in his report some of the concerns about the potential impact of the legislation. The challenge remains for the newspaper industry to come up with a robust model of non-statutory regulation through which it can put its own house in order and demonstrate that it has robustness, the ability to inquire and investigate, and to fine people who fall foul of its code of practice. If it refuses to do that, of course Parliament will have the right to consider what further action should be taken. I am, however, concerned about that being underpinned by Ofcom or any regulator, and its being forced on the industry at that point.
7.32 pm