A Royal Charter for the benefit of newspaper editors, not the public

The ways in which the Government has altered Lord Leveson's recommendations is telling.

Crucially, it [the new regulator] must have the power to demand up-front, prominent apologies.

So said the Prime Minister, David Cameron, in his statement in response to the publication of the Leveson Report on 29th November 2012. This was one of a number of central recommendations in the report, one of what Cameron called the Leveson principles.

Yet the Royal Charter published by the Conservatives on Tuesday 12th February has removed all reference to apologies. Apologies has been replaced with the much weaker and more general remedies. This despite a key Leveson recommendation being that a new regulator should have The power to direct the nature, extent and placement of apologies. This has been changed, and replaced with the power to require (not direct) a remedy, and only after negotiations between the member of public and the newspaper have failed:

In the event of no agreement between a complainant and a subscriber, the power to require the nature, extent and placement of a remedy should lie with the Board (Royal Charter, Schedule 3, #16)

This dilution of Levesons recommendations is typical of much of the Royal Charter. Where Leveson proposed a system that would give power to members of the public and individual journalists, the government has watered down or even removed that power, and given it back to the editors and proprietors.

The journalists conscience clause, for example, which the National Union of Journalists fought so hard for, and which Leveson recommends a new regulatory body should consider requiring, is downgraded to an optional extra. The same with a whistleblowers hotline for journalists who want to report illegality, abuses of the Code or bullying in newsrooms.

The Charter, as published, reeks of a deal done behind closed doors between senior politicians and senior newspaper executives and lawyers. Almost all of the demands made by editors and publishers appear to have been acceded to. There is no statute to prevent the interference of the government in the Royal Charter. Nor is there a legal guarantee of freedom from interference in the press in the future. This would have provided, for the first time, Harold Evans said in his Cudlipp lecture, a legal duty of the government to protect the freedom of the press. No such duty has been proposed.

But the real evidence of press-political collusion is in the fine detail of the Charter. Schedule 3 sets out the so-called recognition requirements for a new regulatory body. These, according to Leveson, are the essential criteria that any new body has to adhere to or it will not be recognized as an independent and effective regulator.

It is these criteria that have changed markedly from the recommendations made by Leveson, and those changes bear a striking similarity to the parts of Leveson the editors were unhappy with.

For example, in their discussions shortly after the publication of Leveson at the Delaunay restaurant, the editors found Levesons recommendation that the Board of the new regulator be responsible for the Code of Practice unacceptable (from leaked Delaunay document). This Leveson recommendation, we then discover, has been transformed in the Royal Charter. So Leveson recommended that:

The standards code must ultimately be the responsibility of, and adopted by, the Board, advised by a Code Committee which may comprise both independent members of the Board and serving editors.

But in the Charter, control of the Code is given to the Code Committee as now for the Board simply to adopt. Indeed the Charter goes even further and removes the obligation to include independent Board members from the Committee, enabling the editors to choose whoever, and as few, 'independent members' as they want (exactly as the previous discredited Hunt/Black plan proposed):

The standards code must ultimately be adopted by the Board, and written by a Code Committee which is comprised of both independent members and serving editors.

The editors were also strongly against Levesons recommendation that a new regulator have the power to take complaints not just people directly referenced in an article, but from other people too, including representative groups. The Delaunay document shows that editors felt this was unacceptable. Instead, they agreed that third party complaints [are] only to be allowed at [the] discretion of [the] Complaints Committee where there is substantial public interest. Group complaints [are] only to be allowed on matters of accuracy.

And again we find that the recognition criteria in the Royal Charter have been changed to appease the editors. Instead of Levesons criteria #11:

The Board should have the power to hear and decide on complaints about breach of the standards code by those who subscribe. The Board should have the power (but not necessarily in all cases depending on the circumstances the duty) to hear complaints whoever they come from, whether personally and directly affected by the alleged breach, or a representative group affected by the alleged breach, or a third party seeking to ensure accuracy of published information. In the case of third party complaints the views of the party most closely involved should be taken into account.

The Royal Charter changes the criteria to:

'The Board should have the power to hear and decide on complaints about breach of the standards code by those who subscribe. The Board should have the power (but not necessarily in all cases depending on the circumstances the duty) to hear complaints: (a) from anyone personally and directly affected by the alleged breach of the standards code; or (b) where an alleged breach of the code is significant and there is substantial public interest in the Board giving formal consideration to the complaint from a representative group affected by the alleged breach; or (c) from a third party seeking to ensure accuracy of published information. In the case of third party complaints the views of the party most closely involved should be taken into account.'

In other words, it has been altered to map almost exactly to the demands made by the editors. It restricts complaints only to those directly affected, unless there is a significant breach and substantial public interest in doing otherwise (it does not detail who would define significant breach or substantial public interest).

For the last two months senior politicians from the government have been working secretly on a Royal Charter. The impression they gave was that they were working to achieve everything Leveson wanted through Charter rather than through statute. Now we know they were actually working to achieve everything the editors and proprietors wanted out of Leveson, regardless of the interests of the public or individual journalists.

A full comparison of the differences between the Royal Charter and Leveson's recommendations can be found here (pdf)

Martin Moore is the director of the Media Standards Trust

The Leveson Inquiry. Photograph: Getty Images
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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.