ROYAL COMMISSION ON U.K. PRESS

Press, Volume C, Issue 29436, 11 February 1961, Page 13

ROYAL COMMISSION ON U.K. PRESS

Rival Groups Welcome Government’s Move (Rec. 10 p.m.) LONDON, February 10. The announcement of a forthcoming Royal Commission of Inquiry into the British press was welcomed last night by two rivals in a current press power struggle. They are Mr Roy Thomson, the Canadian head of a £27 million newspaper and commercial television chain, and Mr Cecil King, chairman of the £5O million “Daily Mirror” group.

Rivalry between Mr King and Mr Thomson in a struggle for control of the £4O million Odhams Press group was one of the factors behind press and Parliamentary calls for a Government inquiry into the press. Mr Thomson commented on the commission, announced in the House of Commons by the Prime Minister, Mr Macmillan: “Nothing but good can come of it.”

Mr King said he had advocated a commission publicly on January 30 and was “delighted” at the announcement. The commission also was welcomed by the Labour Opposition Leader, Mr Hugh Gaitskell, and a spokesman for the National Union of Journalists. Mr Macmillan said a commission was justified by developments in the newspaper, magazine and newsprint industries which had caused public concern, “particularly about the tendency towards concentration of ownership in the industry.” The Prime Minister made it clear to the Commons that the Government had no power to intervene in any individual legal transaction in the industry. Terms Of Reference

Explaining the commission’s terms of reference, the Prime Minister said it would examine:

The economic and financial factors affecting the production and sales of newspapers, magazines and periodicals. Their manufacturing, printing, distribution and other costs. Production efficiency. It would examine also advertising and other revenue, including any revenue derived from interests in television. The commission would consider whether • these factors tended to diminish diversity of ownership and control or the number or variety of such

publication, having regard to the importance, in the public interest, of the accurate presentation of news and the free expression of opinion To facilitate a speedy publication of the commission's report he would keep it small. Closure Of Papers

The battle for Odhams Press followed the closure in a fourmonth period of four major newspapers the “News Chronicle" (a national daily), the "Star” (its London evening companion), the "Empire News" and the "Sunday Graphic" (two Sunday news-

papers which had been published by the Thomson group).

Mr Macmillan said: “It has been suggested that I should invite the parties to these negotiations to call a halt, pending the institution of an inquiry. I cannot believe that it would be proper for the Government to interfere, even to this extent. "To do so would be to affect the interests and legal rights of the employees and shareholders of the companies concerned in a matter in which the Government has no authority to act. “Whether it may seem desirable to the parties concerned to call a halt to the negotiations in the light of what I have to say today is a matter for them and them alone to decide ” "General Unease’* Mr Macmillan added: "At the same time, there is a general feeling that these specific negotiations are symptomatic of some general unease tn the industry as a whole. The recent closure, through inability to pay its way, of a national daily newspaper with a circulation exceeding a million clearly came as a shock to the public.

"The more recent developments are widely taken to suggest that conditions in the industry are such as to lead inevitably towards concentration of ownership and a reduction in. to quote from the Royal Commission of 1949, •the number and variety of the voices speaking to the public through the press’.'• He added that he had decided to refer to a committee examining company law—the Jenkins Committee—a suggestion that in take-over bids a minimum proportion of the consideration offered should be in cash.

Some of these bids are on an exchange of shares basis. It has been suggested that the tendency towards take-over bids could be checked if part of the cash had to be produced.

Political quarters said last night that the names of members of the commission on the press would be announced in a week to 10 days It would have full authority to call witnesses and demand any papers it felt necessary for its work.

A Royal Commission set up by the Labour Government to inquire into the British press in 1947 found that it “was completely independent of outside financial interests and the direct influence of advertisers was negligible.”