The Culture Secretary has ordered a new investigation into RedBird IMI's bid for The Telegraph. Photo: Rob Pinney/Getty Images
Two thirds of people think foreign governments should be banned from owning British newspapers, a survey has found, as ministers ordered a new investigation into the Abu Dhabi-backed takeover of The Telegraph.
The poll of more than 2,000 people found that 69 percent believe foreign governments should be legally prohibited from owning media outlets such as newspapers.
Among Conservative voters at the last election, three-quarters (75 per cent) said foreign governments should not be allowed to own British newspapers.
According to a poll by research agency Public First, 58 per cent of people said that There should be a legal requirement for British media owners to be based in countries where there are free elections and a free press.
The findings come after Lucy Fraser, the culture minister, ordered a further investigation into the attempted takeover of The Telegraph by RedBird IMI, a foundation that is 75 percent funded by Sheikh Mansour bin Zayed Al Nahyan, vice president of the UAE.
She has given media regulator Ofcom an extra six weeks to review the plan. The media regulator now has until March 11 to complete both the initial investigation and a second investigation that takes into account the new corporate structure created by RedBird IMI this week.
Ms Fraser said the change created a new merger situation that required new analysis. Earlier this week, she rebuked RedBird IMI for taking late-stage measures that were “not conducive to the full and proper functioning of the process.” Ofcom was due to present its findings on Friday.
RedBird IMI derailed the regulator by creating an English limited partnership as an additional layer in the proposed ownership chain. In this structure, the limited partner must be passive. RedBird IMI's actions were an apparent attempt to reassure Ofcom that IMI, the sheikh's investment company, would not be able to influence The Telegraph. He has a history of censorship and editorial interference with media companies.
The deal “may affect free expression”
However, Ms Fraser told RedBird IMI in a letter: “IMI remains the majority shareholder… and is privately owned by a member of the UAE government. Therefore, the Secretary of State remains concerned about the potential impact of IMI on TMG, which could impact free expression and accurate reporting of news.
In December, RedBird IMI helped the Barclay family pay off £1.2 billion. debt to Lloyds Banking Group, which seized control of The Telegraph in June and was preparing to sell it at auction. In return, he was given the option to convert the loan into ownership, but Ms Fraser's initial intervention prevented this from happening.
A new English limited partnership, RedBird IMI, sits above RB Investco, which holds the option. It was registered on July 13, just over a month after Lloyds' lawsuit against Barclay's family, through a little-known corporate services provider. As it stands, this means that if RedBird is successful, IMI could own The Telegraph through an office above a Wetherspoons pub in Altrincham, Cheshire.
“A strong argument to get involved”
Sir David Davis, the former Brexit secretary who urged Ms Fraser to block the takeover bid, said: “There is a very strong case for the Secretary of State to intervene in this matter and this poll reinforces those arguments.”He added: “It is clear that if a foreign state controls a very influential media organization in the UK, there are all sorts of democratic, constitutional and diplomatic consequences, but none of them are good.”
B The poll, conducted between 16 and 22 January, asked respondents which of a range of restrictions on British media ownership they would support if they were enshrined in law.
More than two-thirds (69 percent) of those surveyed said a ban on foreign governments owning British media should be in law, while 14 percent disagreed and 16 percent said they knew neither
Three-quarters (76 per cent) of respondents agreed with the statement that “it matters who owns British media”, compared with 11 per cent who disagreed.
When asked to name the most important benefits of independent media and freedom of speech, 73 percent of respondents said that “they can hold governments and politicians accountable,” 62 percent agreed that such media can “highlight the failures and crimes of the powerful,” and 54 percent said, that they can “provide important general news.”
Holding the powerful to account
James Frain, founding partner of Public First, said: “People complain about our media, but they know they play a critical role in holding the powerful to account.”
“So this is the most basic common sense for People: you don't sell newspapers to businesses associated with foreign countries, especially those that are not liberal democracies. It's as simple as that.”
It comes after Sir Iain Duncan Smith, the former leader of the Conservative Party, published the text of a letter sent to Ms Fraser by a cross-party group of MPs and peers saying they ” are deeply concerned about the prospect of a foreign government taking possession of the document.”
He and 27 other Conservative, Labour, Lib Dem and SNP politicians say Telegraph “plays a strategic, fundamental role in the functioning of our democracy” and that ownership of the company by any foreign government, even France or the US, would be a “major issue”.
The letter concludes: “The world is watching, and we must use every power at our disposal to make sure we give the right answer.”
Ofcom declined to comment on whether the evidence presented in the original investigation would remain valid or would need to be resubmitted.
An Ofcom spokesman said: “We will review the PIIN and determine next steps accordingly.”
Following a review by the media regulator, Ms Fraser must decide whether to accept RedBird IMI's press freedom commitments or submit the deal to an in-depth “phase 2” review by the Competition and Markets Authority lasting up to 32 weeks. .
A spokesman for RedBird IMI said: “RedBird IMI remains committed to acquiring and investing in the Telegraph and reiterates that maintaining the newspaper's editorial independence is essential to protecting its reputation, credibility and value.”
“On this In After all, we have made a commitment to the Government to create an editorial charter and trust for the Telegraph that will represent the strongest protection of editorial independence in the UK newspaper industry.
“In addition, IMI has a legal obligation to the Government that it will have no role in the management and operations of the business, a position reinforced by his status as a purely passive investor in the RedBird IMI fund that is acquiring Telegraph.”
Oliver Dowden, the deputy prime minister, intervened on Thursday. to protect UK national security after the UAE acquired almost 15% of Vodafone. On Friday, he issued an additional statement, emphasizing that the powers he used were “completely independent of the country.”
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