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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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman