Lords approve legislation that would block takeover of UAE Telegraph

Lord Forsyth of Drumlin addresses the House of Lords

Foreign influence on British newspapers will be outlawed after House of Lords vote for effectively blocking the UAE's bid to acquire The Telegraph.

The Peers passed an amendment to exclude «ownership, influence or control» of newspapers and periodical news magazines by foreign governments.

Lord Parkinson Minister culture announced that the law will later be extended to online newspapers.

RedBird IMI, a fund 75 percent backed by Sheikh Mansour bin Zayed Al Nahyan, vice president of the UAE, positioned itself to take control of The Telegraph and The Spectator magazine by paying off the debts of the Barclay family, the current owners.

It The takeover was in limbo under the scrutiny of the government, which used existing powers to protect press freedom, but MPs and peers in parliament demanded tougher laws against foreign control.

Lord Parkinson said: «We have heard the strength of concern expressed in Parliament about foreign ownership of British newspapers and news magazines.

«His Majesty's Government agree that the importance of these publications to our democracy cannot be overstated.< /p>

“We are therefore taking steps to preserve press freedom, recognizing the risks that foreign government ownership of British newspapers may pose to democracy and freedom of expression. Foreign government ownership… could, over time, undermine the credibility of our media as a whole.”

He added that the government would consult on whether the law should be extended to online news sites in the future.

“This will update the regimes to reflect modern news consumption habits and better protect the freedom of our media,” he said.

Earlier this month, Lord Parkinson announced plans to «explicitly rule out mergers of newspapers and periodical news magazines that suggest foreign ownership, influence or control.»

Baroness Stowell supports blocking foreign countries from controlling or influencing the media

Baroness Stowell, the fellow Conservative whose campaign persuaded the government to introduce the amendment, declared in the House of Lords that she supported it.

“In my view, this is about the legal uncertainty that RedBird IMI proposed in its deal to buy The Telegraph and The Spectator, which was exposed when it comes to the involvement of foreign powers in our media,” she said.

Lord Forsyth, another Conservative peer, said recent revelations about Chinese attempts to hack Western interests showed why new legislation was needed, adding: «After yesterday's events, it is unacceptable that the Chinese government can own one per cent of a British newspaper.» /p>

The new legislation, which has yet to pass the House of Commons and receive Royal Assent, will be introduced as an amendment to the Digital Markets Bill. It will change the wording of the existing Business Law and should become law within weeks.

A consultation on extending the law to news sites will begin in June. It is not expected to be retrospective, so is unlikely to apply to the Independent, which is partly owned by Saudi Arabia.

The Telegraph was seized from the Barclay family by Lloyds Banking Group in a dispute over sterling. The outstanding debt amounted to $1.2 billion.

RedBird IMI helped pay off the family's debt in December with a new loan, which it intended to turn into ownership of The Telegraph and The Spectator.

The Barclay family have regained ownership but are prohibited by law from exercising any control over publications run by independent directors.

The UAE's involvement in Red-Bird IMI has raised concerns about press freedom. MPs and peers across the political spectrum.

The new laws received cross-party support. The Lib Dems' Lord Clement-Jones said: «This is a matter of principle, it is not about a particular country.»

Labour's Lord Bassam said: «This is not about one newspaper.» group – there is a fundamental principle involved.”