Why David Leigh's broadband tax plan is bonkers

Just a few of the reasons why this journalism subsidy wouldn't work.

I'm not sure if Guardian journalist David Leigh is being completely serious with his plan for a £2 a month levy on all broadband bills to subsidise journalism.

But here are a few reasons why I think the scheme is bonkers.

He proposes that the £500m a year windfall should be split between publishers depending on the size of their web audience.

So it means already highly profitable titles like the Daily Mail and The Sun would get £100m and £50m a year respectively in order to justify highly loss-making titles like The Guardian getting their beaks wet.

Under the Leigh system The Times - in my opinion just as fine and campaigning a newspaper as The Guardian  - would get nothing, because it has had the temerity to experiment with an alternative model and sought to charge readers to access its content online.

Regional newspapers, doing  the incredibly important job of holding local power to account, would get little - because reports of town and city council meetings are never going to drive as many web eyeballs as pictures of scantily-clad reality TV stars on the beach.

And while £2 a month may not seem like much, I suspect that many British households will take a degree of convincing that they should face a 10 per cent increase in their broadband bills to support a British journalism industry which still has something of an image problem following the hacking scandal and the Leveson Inquiry. 

That said, Leigh is right that something needs to be done and I suspect his piece is more about fostering a debate than anything else. Print circulations are plunging and while more readers are being found online, most titles are still miles away from finding an online model that pays anything like as much as the old print one did.

Without the work that national and regional newspaper titles do we would be left with a view of the world dominated by PR and advertising with some blogger propagandising thrown in for good measure.

So here's an alternative proposal: take on Google.

Currently UK publishers take a fairly relaxed view to the actions of the monopolistic US search engine giant because they love all the extra readers Google brings them.

But with Google UK ad revenues set to top £3bn this year the newspaper industry owners are increasingly looking like householders who, having been woken in the night by burglars, rush downstairs to make them a cup of tea before helping them into their van with the flatscreen TV and the silverware.

How well would Google do without all the free editorial content which it is indexing I wonder?

As the NLA versus Meltwater copyright case shows, UK publishers only have to say the word and they can stop Google reproducing their stuff. It’s a clear a breach of copyright if they want to stop it, a line of code inserted at the top of each website asking the Googlebots to keep out will suffice.

My alternative idea is for the Newspaper Publishers Association, the Newspaper Society, the PPA and the commercial broadcasters to get together and create their own news search engine. The accompanying search advertising could then be split between their members.

I suspect that professional publishers’ share of Google’s £3bn in UK advertising income would be more than the £500m brought in by the Leigh tax.

This article originally appeared in Press Gazette.

Photograph: Getty Images

Dominic Ponsford is editor of Press Gazette

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.