How do we stop a new press regulator "going native"?

Lessons from the failings of the PCC.

If there was any question left that the British media establishment has failed to grasp the enormity of the issues raised by the hacking scandal this should have been dispelled by Presbof’s comprehensive plan for a new regulator.

There are some massive changes proposed in the new document which, if Presbof is allowed to proceed with them, will have huge ramifications for all professional journalists in the UK.

It now remains to be seen whether Lord Justice Leveson can be persuaded that the poachers really can turn gamekeepers and whether those who were ultimately responsible for the failings of the PCC are the right people to come up with a new system.

My view is that the document goes some way to addressing the failings of the PCC – particularly with its new powers to investigate major failings and ensure the industry learns the lessons of disasters like phone-hacking and the reporting of the McCann and Jefferies cases.

But there are also some  flaws in their proposals.

The document has come about as a result of private meetings between an elite group of individuals – namely the major press owners. There has been no public consultation and no effort event to canvas the views of ordinary journalists. Presbof clearly believes that he who pays the piper calls the tune – the owners are prepared to fund the £2.25m running costs of the new regulator and the no-doubt enormous set-up costs without seeking help from the State. But I doubt whether Leveson will wear a new system which remains pretty well controlled by the press owners.

The regulator’s board would comprise two public appointees, an “independent” chair and two Presbof appointees. The owners would also control the code committee by appointing the majority of editors to it and they would appoint five of the 13-member adjudications panel.

With such a large number of appointees to the regulator controlled by the owners and drawn from a small pool of elite journalists, is the new regulator really going to be able to ensure it doesn’t “go native” as has apparently been the case with the PCC?

The new regulator proposes retaining the existing PCC system for dealing with complaints – with the major sanction remaining the publication of a critical adjudication. The document does not state whether front page mistakes should now warrant front-page apologies. But I suspect for this aspect of the plan to fly that will have to be the case.

In cases of extreme wrongdoing the new regulator will be able to commission independent three-person inquiries comprising an industry representative and two independent figures. The strict terms of the contract that members of the body will sign up to should ensure compliance with these inquiries. The strictest censure will be a fine of up to one per cent of turnover to a maximum of £1m.

This detail must betray the fact that the likes of Telegraph Media Group and Associated Newspapers call the shots at Presbof. Why should massive publishers be insulated from the one per cent rule by virtue of the £1m maximum? £1m legal cases are not unusual for the big Fleet Street players.

It doesn’t seem to have occurred to Presbof that the views of ordinary journalists on the shop floor need to be incorporated into their thinking. To his credit PCC chairman Lord Hunt, whose proposals are subtly different, has suggested that they should via some sort of whistleblowers’ system.

At the heart of the hacking scandal, the treatment of the McCanns and the Jefferies case were systematic failings in the industry which go right to the top. At the News of the World there was a clearly a culture of ‘get the story at whatever the cost’ which emanated from Rupert Murdoch down through the senior executives to editors and journalists on the ground.

If Fleet Street is to change its culture, and place ethics above profits and scoops, the owners need to open up this process and accept that everyone in this country has a stake in the success of the press and the maintenance of journalistic standards – not just those who bank the profits. They do this to an extent via the public appointees but I’d argue that a broader range of industry voices needs to be heard as well.

The most dramatic changes proposed by Presbof are to lock publishers into the new system by controlling access to press cards, PA and major advertising. This solves the Desmond question while allowing mavericks like Private Eye to go their own way.

What follows now will be a high stakes game of poker. Presbof has shown its hand. Leveson cannot ignore the huge amount of work and thought that has gone into this offer of reform from the industry. But neither can he ignore the many other voices he has heard over the course of his huge inquiry. There is nothing in the Presbof proposals, for instance, to tackle the widespread concerns about allegations Rupert Murdoch has traded media power for political influence.

It will be fascinating to see how this all plays out in October when Lord Justice Leveson puts forward his proposals and Parliament is then left holding the casting vote.

This article originally appeared in Press Gazette.

Photograph: Getty Images

Dominic Ponsford is editor of Press Gazette

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Sooner or later, a British university is going to go bankrupt

Theresa May's anti-immigration policies will have a big impact - and no-one is talking about it. 

The most effective way to regenerate somewhere? Build a university there. Of all the bits of the public sector, they have the most beneficial local effects – they create, near-instantly, a constellation of jobs, both directly and indirectly.

Don’t forget that the housing crisis in England’s great cities is the jobs crisis everywhere else: universities not only attract students but create graduate employment, both through directly working for the university or servicing its students and staff.

In the United Kingdom, when you look at the renaissance of England’s cities from the 1990s to the present day, universities are often unnoticed and uncelebrated but they are always at the heart of the picture.

And crucial to their funding: the high fees of overseas students. Thanks to the dominance of Oxford and Cambridge in television and film, the wide spread of English around the world, and the soft power of the BBC, particularly the World Service,  an education at a British university is highly prized around of the world. Add to that the fact that higher education is something that Britain does well and the conditions for financially secure development of regional centres of growth and jobs – supposedly the tentpole of Theresa May’s agenda – are all in place.

But at the Home Office, May did more to stop the flow of foreign students into higher education in Britain than any other minister since the Second World War. Under May, that department did its utmost to reduce the number of overseas students, despite opposition both from BIS, then responsible for higher education, and the Treasury, then supremely powerful under the leadership of George Osborne.

That’s the hidden story in today’s Office of National Statistics figures showing a drop in the number of international students. Even small falls in the number of international students has big repercussions for student funding. Take the University of Hull – one in six students are international students. But remove their contribution in fees and the University’s finances would instantly go from surplus into deficit. At Imperial, international students make up a third of the student population – but contribute 56 per cent of student fee income.

Bluntly – if May continues to reduce student numbers, the end result is going to be a university going bust, with massive knock-on effects, not only for research enterprise but for the local economies of the surrounding area.

And that’s the trajectory under David Cameron, when the Home Office’s instincts faced strong countervailing pressure from a powerful Treasury and a department for Business, Innovation and Skills that for most of his premiership hosted a vocal Liberal Democrat who needed to be mollified. There’s every reason to believe that the Cameron-era trajectory will accelerate, rather than decline, now that May is at the Treasury, the new department of Business, Energy and Industrial Strategy doesn’t even have responsibility for higher education anymore. (That’s back at the Department for Education, where the Secretary of State, Justine Greening, is a May loyalist.)

We talk about the pressures in the NHS or in care, and those, too, are warning lights in the British state. But watch out too, for a university that needs to be bailed out before long. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.