'Big bang' Media Bill misfires

When the Government launched its draft version of the Communications Bill in May, the media industry was agog.

The Bill was expected to be full of half-hearted attempts to liberalise the market, which would still prevent the likes of media mogul Rupert Murdoch and US giants such as AOL Time Warner getting their mitts on any more of the UK's media companies.

Instead, the Bill was radical, and hailed as the "big bang" of the media industry.

But the Government can never please everyone, and it is being persuaded to amend the Bill on some key points. One thorny issue is that of foreign ownership of our media outlets. Currently, no foreigners can get their hands on a large stake in our broadcasting companies, such as Carlton and Granada, which control ITV, Channel 5, and radio companies like GWR. The Bill proposes to scrap that rule.

As well as some patriotic backbench MPs, Channel 4 has been loud in its calls to change the proposal. It is concerned that US companies would flood our screens with cheap American programmes, which could reduce the quality of our TV. It also says countries that do not allow the UK into their media territory, such as the US, should be excluded from the Bill.

Another gang of vocal dissidents are the radio companies. They already have highly restrictive rules that no single company can own more than 15 per cent of the UK's audience share. It means most of our radio stations are owned by a sprawling and varied set of operators.

Although the Government has scrapped the restriction, it proposes to introduce another, equally disliked rule. Complex standards will regulate the ownership of rural stations, and some say these will limit choice in remote communities by preventing incumbent radio stations from launching new services. Tessa Jowell has hinted she will listen to these complaints, and the cross-party parliamentary committee that scrutinises the Bill is expected to recommend it is changed.

However, Westminster whisperers say there is a perception that backbenchers want to keep that proposal. When the MP for Wyre Forest was booted out in favour of an independent doctor, over services at the local Kidderminster Hospital, MPs became worried. Some insiders say concerns about the power of the local media on this issue was crucial to the result, and therefore they want a wide variety of operators.

Then there is the usual BBC versus everyone else debate. A new regulator, Ofcom, has been proposed to look at the media industry as a whole. However, the BBC will be left to its own devices, which has infuriated other commercial TV operators such as ITV and Channel 4.

This is unlikely to be changed, despite the best persuasions of the lobbyists. The Government's love affair with the BBC could survive the strongest disruption.