DIGITAL BRITAIN: Guardian's Carolyn McCall urges relaxation of media ownership rules

by Tristan O'Carroll, mediaweek.co.uk 14-Jan-09, 16:03

LONDON - Guardian Media Group chief executive Carolyn McCall has called on the government to relax media ownership rules to save the regional newspaper sector.

In a speech today to the Westminster eForum Keynote Seminar: Digital Britain, she also hit out at the BBC, arguing its "aggressive expansion, enabled by loosening of the rules governing its activity by the BBC Trust," is a cause for concern.

Her calls come as communications minister Lord Carter prepares to publish the Government's Digital Britain report, which aims to ensure future growth across the communications, technology and broadcasting sectors.

Referring to the future of the regional newspaper sector, McCall said that independent regional journalism is under threat, as it faced the combined effects of long-term structural changes and the economic downturn.

She warned: "The current model for the provision of quality local news and journalism is becoming increasingly uneconomic, reducing the incentive for commercial players to invest in UK content. Regulatory intervention is required to address this."

The loosening of Ofcom's local cross-media ownership rules, she concluded, would be a "welcome step in the right direction".

McCall also attacked what she labelled some of the BBC's "expansionary activities", arguing that they are undermining the commercial sector's ability and incentives to invest in UK digital content.

But she insisted: "GMG is a supporter of the BBC. We welcome the talk of partnerships, even though there needs to be more clarity and formality around what this actually means and how it should work."

Many in the commercial sector want the BBC Trust to regulate the BBC's commercial activity more closely. Last month, the Trust rejected the BBC's £68m plan for a nationwide network of local online news services. However McCall wants the Trust to "be a more credible regulator", noting that "we are looking for more oversight, not less, whatever happens to BBC Worldwide".

She said: "The Trust needs to be a more credible regulator - by improving its oversight, becoming more transparent and demonstrating its independence from the BBC Executive."

Carter is now a central figure in guiding government policy on the media and communications sectors. Appointed last year by Prime Minister Gordon Brown as Minister for Communications, Technology and Broadcasting, Carter reports to both culture secretary Andy Burnham and business secretary Lord Mandelson.

Among other issues, Digital Britain will consider future broadband development, digital radio, investment in content and media literacy.