Murdoch's TV moves may be thwarted by Parliament

Rupert Murdoch could yet be thwarted in his ambition to take control of Channel 5.

The draft Communications Bill, published in May, proposed that the rules preventing non-European companies from owning British TV stations be scrapped.

However, the committee of MPs and peers charged with scrutinising the Bill is expected to oppose dramatic liberalisation. The group, headed by Lord Puttnam, will finalise its report this week and publish at the start of next month.

Opinion is mixed on the committee but insiders say a significant number are opposed to foreign ownership and cannot see the logic behind the plans.

News Corporation, Mr Murdoch's global media giant, is currently prevented from owning British terrestrial TV stations. The Australian group owns the Fox broadcasting businesses in the US. Other media giants thought to want a piece of the action are AOL Time Warner and Viacom.

"There has been quite strong evidence to the committee that the benefits of American ownership in terms of investment are not at all clear," said a Westminster source. "There have been fears expressed about the potential for big US companies such as Time Warner or Fox to dump second-rate American programming on British TV."

The prospect of another route for Mr Murdoch – of his part-owned BSkyB satellite TV service buying Channel 5 – is also opposed by some members due to the power it would give the company.

Recommendations to modify the proposals for the ownership of radio stations are also expected.