Press regulation: it ain’t over until the press barons sign up to it

March 18, 2013

Rupert MurdochOh Frabjous Day! Callooh! Callay! they chortled in their joy! The political class seems intoxicated with having finally, excruciatingly, achieved cross-party consensus on regulating the press.

Everyone, it appears, is a winner. Dave has gambled – with losing a vote in the House of Commons, and implicit in it a momentous amount of face – and won a few, paltry concessions on statutory regulation that can only be appreciated in their full complexity by a nit-picking lawyer. Ed, jubilant, with parliamentary plaudits ringing in his ears, has got what he always claimed he wanted: a Royal Charter backed by statutory regulation. And Nick’s just happy to be on the winning side (whichever that is, exactly).

But, resonant of the Cypriot banking crisis rumbling in the background, parliamentary accord in principle may be only the first, relatively easy, step in what promises to be an agonisingly long process.

Amid universal self-congratulation within the first three estates, what has been forgotten is the most important issue of all: the assent of the fourth. An eerie silence has settled over the land as the press barons – the mighty Murdochs, Rothermeres and Barclays – weigh up their options.

This is not the endgame they had in mind at all. The merest hint of statutory sacrament is abhorrent. And their objections to it are by no means groundless. Being men of the world, none expected to get away with a light slap on the wrist this time round (in other words, the moribund Press Complaints Commission being given a new set of falsies). What they have been served up, however, is enough to cause apoplexy.

Granted, the new press council will be self-regulatory in a manner of speaking: for instance, editors will still play a principal role in drawing up their own code of conduct. But the fact that this code is to be enshrined in law (however statute-lite) means – horror of horrors – the Street of Shame will for the very first time have to abide by it.

And there is worse. Newspapers are being expected to pay for this new regulatory body with their own hard-earned (and declining) advertising and circulation revenues. Yet they will be able to exercise no veto over those sitting in judgement upon them.

Now what is the point of self-regulation if you can’t game the system?

All sorts of humiliations beckon. For a start, there will be front-page retractions of a size and proportion equivalent to the original trumped-up story; in other words, no more “See page 94, bottom para, far right”. And then, if the press recuses? “Arbitrary” fines whose eye-watering size might actually get noticed by shareholders, and hit the owners where it really hurts – in the bank account.

Luckily, there are a few time-honoured principles that can be trundled out to muddy the waters, promote dissension and avert the awful day of reckoning. A very good one is our old friend Juvenal’s Quis custodiet custodes ipsos? – which might be loosely translated as: who will watch over the watchdog itself? A question that near two thousand years of repeated interrogation has failed to satisfactorily answer.

Juvenal’s oblique point, as far as I can make out, was that the powerful invariably stuff organs of governance with officials who are like-minded, obligated, compromised or compliant – leading to all manner of corruption and tyranny. A fine contemporary example would be the PCC, the illustrious members of whose committee quite recently included Tina Weaver – former editor of the Sunday People – who is now helping police with their inquiries into phone-hacking.

However much fog surrounds the future workings of the new press regulatory body, one thing is beacon-clear: the regulator will no longer be guided by the wisdom of serving newspaper editors with an axe to grind. But if not editors, then who? That is the question. Friends of politicians? The Good and the Wise from the upper house? Well-meaning but naive members of the judiciary, like Brian Hutton who was walked all over by the Blair government? Former senior civil servants who, like most lawyers, are instinctively inimicable to the whole concept of “unauthorised” leaks of information into the public domain? The publicly-wronged but narrowly-focused, like the McCanns, Dowlers, John Prescott and, er, Hugh Grant?

Who, in short, can – hand on heart – present themselves as an uncompromised and objective judge in the court of press ethics?

Without the compliance of the three aforementioned proprietors, whose newspapers account for the vast majority of national readership, these new Leveson-spawned regulations are going to go nowhere. Should they choose to prevaricate, Murdoch & Co will have ample opportunity to rail against disguised censorship. Real, or imagined.

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Police arrest four, including Tina Weaver and serving Mirror Group editor

March 14, 2013

Tina WeaverWhatever took them so long? Plod has finally pounced on four miscreant Mirror Group journalists in a dawn raid conducted by the Weeting (phone hacking) team. And what a haul it has proved to be.

The four include the first serving editor to be arrested: James Scott of the Sunday People. Better known is one of the Street of Shame’s favourite hackettes, Tina Weaver – former editor of the Sunday People. The other two are Mark Thomas, former editor of the Sunday Mirror; and Nick Buckley, current deputy editor of the Sunday Mirror.

Senior Trinity Mirror Group management – notably chief executive Sly Bailey and her successor, ex-HMVite Simon Fox – have long been in denial about a phone-hacking scandal within Mirror group portals. A denial which, though oft repeated over the past two years – notably during the Leveson Inquiry – seems to have deceived no one but themselves.

Over 18 months ago, Louise Mensch – a former MP who sat on the House of Commons media select committee – openly taunted Piers Morgan – once editor of the Daily Mirror, but now the fabulously remunerated host of CNN’s prime-time talk show – with complicity in a phone-hacking scandal involving Ulrika Jonsson’s affair with former England football manager Sven Goran Eriksson. Morgan furiously rebutted the accusation, but was reduced to fuming impotence by parliamentary privilege – the one thing protecting Mensch from being on the receiving end of a colossally expensive and probably indefensible libel suit. Later, she did make a mealy-mouthed apology. Sort of.

Few doubted that Mensch was on to something: it seemed highly improbable that Mirror tabloids were entirely immune to the hacking contagion that had reduced Rupert Murdoch’s News International to its knees. What was lacking was context and a basis in fact.

Piers MorganWe now have that, at least in outline form. And it should be said straight away that the facts do not in any way implicate Morgan. The statement from the Metropolitan Police makes this quite clear: “It is believed [the conspiracy] mainly concerned the Sunday Mirror newspaper and at this stage the primary focus is on the years 2003 and 2004.”  True, that does not exclude Morgan by date (he was editor of the daily title from 1995 to 2004), but there has been no mention of – still less arrests of former employees at – the Daily Mirror so far.

Nevertheless, I imagine Morgan will be anxiously reaching for his lawyers, lest the net spreads further.

Ironically, Trinity Mirror has just reported better than expected results, showing Fox’s cost-cutting measures are doing their work. How much damage the arrests – and those likely to follow in their wake – will do to TMG’s share price remains to be seen.

UPDATE 19/3/2013: Morgan’s insomnia will not have been improved by the news that Richard Wallace, a former Daily Mirror editor (and long-term partner of Weaver), has also been questioned by the Weeting team.


Supermarkets should remember the consequences of the Perrier scandal

February 18, 2013

Malcolm WalkerDuring the early part of 1990, health officials in North Carolina, USA, made an alarming discovery. Some Perrier bottled mineral water, whose purity was so legendary they had used it to benchmark other water supplies, was found to be contaminated with minute traces of benzene.

Benzene is a natural component of crude oil. Ingested in sufficient quantities, it can cause cancer in humans. Of course, there was no question of that happening in North Carolina. As a Federal Food and Drug Administration official drily observed at the time: “At these levels there is no immediate hazard. Over many years, if you consumed about 16 fluid ounces a day, your lifetime risk of cancer might increase by one in a million, which we consider a negligible risk.”

But no one was listening to the FDA’s voice of reason. Panic broke out all over the USA – and not just there. Perrier, at that time world leader in the mineral water category, was obliged to withdraw its entire global inventory of 160 million bottles. Brand integrity was further compromised by the discovery that the “natural” bubbles in the bottled potion were actually added back later. Perrier never fully recovered: it lost its leadership and became just another branded mineral water, albeit still a famous French one. Commercially, the crisis was if anything even more disastrous. The independent Perrier bottled water company was, within two years, sold to Nestlé.

I think you know where I’m leading with this. Fast-forward 23 years, to a full-page ad that appeared in yesterday’s national newspapers. It was inserted by Malcolm Walker, founder and chief executive of  leading UK food retailer Iceland. Its purpose was to divert responsibility for the horse meat scandal now engulfing our supermarkets by pointing the finger of blame at cheapskate procurement in local government, the National Health Service – and its equally unscrupulous counterpart in the catering industry – which has connived at bringing down processed food costs to their lowest possible denominator. Doubtless, judging from the ensuing squawks of indignation, the Iceland boss has a point – though how exactly his tirade exonerates the supermarkets from their own ruthless manipulation of supplier lines is not entirely clear. However, Walker does not stop there. Having scored some points on behalf of his sector, he then goes on to trash it by adopting a “holier than thou” approach:

“Iceland does not sell cheap food. We sell high-quality own label frozen food that is good value. We do not sell – and never sold – ‘white pack’ economy products.” Unlike, he carefully does not add, Tesco and Asda. And, just to ram the point home, he goes on to claim that “no horse meat has ever been found in an Iceland product”.

Well, almost none. At the bottom of the ad there is a mealy-mouthed admission that 0.1% of equine DNA was indeed found in two Iceland Quarter Pound burgers. But these don’t count, because the test, carried out by the Food Safety Authority of Ireland, was not an “accredited” one, and the discovered traces of horse were “well below the current accepted threshold level” of 1%. So, yaboo sucks to any critics.

Nice one, Malcolm. You’ve managed to spread, or at least smear, the blame far and wide, and thrown into the processor just a hint of xenophobia. Ireland, Romania, France – these horse-eating monkeys, they’re not like us – not to be trusted, whatever their professions of rigorously adhering to EU-wide standards. But, leaving aside the lowly populism of his message, Walker, in waxing eloquent about the infinitesimal amount of contamination in his own burgers, has committed a revealing tactical blunder.

Perrier logoThe current food scandal is not about parts per billion contaminants found in horse meat; it’s about trust in the brand. Just like the benzene found in Perrier all those years ago, consumers would have to ingest an awful lot of horse burger infected with “bute” equine painkiller (over 500 250 gram ones, to be precise) before experiencing any appreciable side effect. But that won’t prevent them passing summary judgement on those august brands – at the head of the supply chain – that have allowed this scandal to happen: namely the UK grocery multiples.

Possibly with devastating consequences for future sales.

One interesting aspect of this scandal is that its ramifications have now moved on from cheap lines of processed meat – in short, “poor people” – to ready-made meals. In the other words, the sort of thing consumed by affluent and articulate members of the middle-class. That’s bad news even for elite purveyors, such as Waitrose and M&S.

In all probability there’s nothing to worry about. But that’s not the point, is it? My local butcher tells me business has gone gang-busters over the past couple of weeks. And for good reason. In the past, there was a perception (false, as it happens, in many cases) that local businesses could not match supermarket fresh meat prices. Now, understandably, people seem a lot more concerned about local provenance. If you must have lasagne, it’s as well to see the meat being minced while you wait, rather than trusting the word of some supermarket about the integrity of its supply line.


Richard III gets a brand makeover

February 5, 2013

Richard IIIRichard III, the marketing angle? Incredible as it may seem, there is one – and Mediapost claims to have detected it.

The spectacular discovery of the last Plantagenet monarch’s remains under a Leicestershire car-park has been derided in some academic quarters as a stunt that offers little new insight into the historical record (unlike, for example, the discovery of Troy).

Not so. Instead of a cripple “Cheated of feature by dissembling nature, Deformed, unfinish’d, sent before my time, Into this breathing world, scarce half made up, And that so lamely and unfashionable, That dogs bark at me as I halt by them” we have been presented with incontrovertible evidence of a fit, 32-year old man, at 5ft 8in tall for his era but for a curvature of spine that set his right shoulder above his left, and possessed – according to the reconstruction of his skull – of a personable, sensitive appearance ill at odds with the psychopathic villain of Shakespeare’s imagination.

How much, then, was the Tudor “brand makeover” of Richard a carefully fabricated lie designed to cement the succeeding dynasty’s undoubtedly shaky claim to the crown of England?

The fact is, back in the 1480s anyone who was anyone – well, nearly anyone – was a bastard. The Princes in the Tower were bastards (or so Richard persuaded Parliament on acceding to the throne in 1483); Henry, Duke of Richmond – the victor of Bosworth Field – was most certainly a bastard, tracing his ancestry to King Edward III via the bar sinister on both sides of the family; and so – according to some – was Richard’s elder brother Edward IV: the son of an English archer rather than the 2nd Duke of York – though, understandably enough, no one was prepared to openly address the matter during the charismatic, 6ft 4in warrior’s lifetime.

In a country riven by a generation of civil war, legitimacy was a necessary though not sufficient qualification for long-term kingship. And Richard, unlike most other contenders to the throne during that period, had an unimpeachable claim to it. However, the paramount requirement in that anarchic and bloody era was ruthless leadership, on and off the battlefield. Edward IV had it, but his predecessor – mad, incompetent but very legitimate Henry VI – did not. Result: civil implosion and the Wars of the Roses. That was the thing about the Medieval state. Weak leadership was not simply a failing in a king, but a mortal sin: because sooner or later it plunged the country into internecine strife (note the reigns of Stephen, John, Henry III, Edward II and Richard II).

Henry VI eventually paid for his incompetence with his life – he was starved to death in 1471, probably on the orders of an exasperated Edward IV. Twelve years later, a similar succession crisis seemed to be shaping up when Edward himself died prematurely, at 40. The plan was that Edward’s son – known to history as Edward V – would succeed him. But Edward was only 12 and the substitute sibling, his brother Richard Duke of York, considerably younger. Either way, they would be puppets in the hands of the Nevilles, Stanleys, Woodvilles, de la Poles and Percys – the aristocratic “cousins” who were the powers behind the throne at that time. Another round of civil war loomed. Forseeing this, Edward had made Richard, then Duke of Gloucester, their protector. Richard had proved himself very competent, on and off the battlefield. A surprisingly enlightened administrator who in effect already ruled in the north of the country, he had also proved his martial valour at the decisive battles of Barnet and Tewkesbury (1471) which had ensured a Yorkist was put back on the throne. Later, Richard played a leading role in pacifying Scotland. Edward had every reason to be grateful. Most of all, he trusted Richard implicitly. What could possibly go wrong?

In placing the two princes in the protective “custody” of the Tower of London (then simply another royal palace) and subsequently disbarring them from the succession, Richard may have acted out of cruel necessity, or naked ambition. Conceivably both. Did he really believe the princes were illegitimate? We don’t know. Did he have suspicions that his own brother was illegitimate? We don’t know. Was his own dynasty likely to be strengthened by, in some way, disposing of potential rivals who might provide a rallying point for disputing his own position? Yes, it was. At that time, he had a son, also Edward (in those days they were all Edward, Richard or Henry, it seems), who died the subsequent Henry VIIyear, 1484. Did the Princes die in 1483 (thus effectively excluding the Duke of Richmond, later Henry VII (left), as their murderer – he was in France at the time, and in no position to gain access to the Tower)? Almost certainly – nothing more is heard of them after the summer of that year. What’s more Richard, though he denied killing them, failed to provide the living evidence that would have discredited any such claims. Did he, or his agent the Duke of Buckingham/ Sir James Tyrrell, do the heinous deed? Beyond reasonable doubt, no. On the balance of probability, yes. Did Richard have any defensible argument for doing what he probably did? Raison d’état, maybe. Pretenders purporting to be the young Duke of York were to cause Henry VII endless trouble during the earlier part of his reign.

Richard has been set up in history as the Arch-Infanticide. In reality, what use is it judging him by the standards of our own time? His code of conduct was not identifiably worse than that of his predecessor – himself a regicide – or his successor, a consummate Machiavellian who discreetly saw off many an opponent at the gallows. That’s what monarchs did then – if they wanted to survive. Richard’s misfortune was to be betrayed on the field of battle – by an ally connected through marriage to the other side. Even his enemies conceded he fought courageously to the end.

If the Battle of Bosworth had gone the other way – and it very nearly did – we can be tolerably sure we would not now be obsessing about the fate of the Princes in the Tower. To the victor the spoils.


Horse meat scandal puts grocers through the mincer

January 17, 2013

TescoUntil a couple of days ago, few outside the food retail and logistics business would ever have heard of Silvercrest. Now it has achieved household notoriety as the weak-link in the food chain that has served illegal horse meat up on British tables, in the guise of own-label supermarket beef burgers.

The reputational damage has, rightly, been severe for all those involved. Tesco – which fessed up to at least one line of its apparently legit beef burgers being contaminated with 29% horse meat – has seen £300m wiped from its stock market valuation overnight and has now taken out full-page ads in most national newspapers, grovelling abjectly. The timing could not have been worse, from a corporate point of view. Just days ago, a halfway decent set of financials had seemed to indicate that Tesco was on the ramp of recovery.

Luckily for Tesco, it is no longer alone. A host of other high street names – Aldi, Lidl, Sainsbury, Asda, the Co-Op, Morrisons, Burger King among them – have now opted to clear their shelves of the offensive products. In some cases because they use the same supplier, ABP/Silvercrest, in others merely as a “precaution” lest the same fate might befall their own supply chain. Only McDonald’s and Marks & Spencer have been able to stand aside, smugly waving a clean bill of health.

Their smugness is unwarranted. This disaster could so easily – in only slightly modified circumstances – have happened to them.

Some might argue that the horse-meat scandal is little more than a storm in a tea-cup, got up by the media. After all, no one died and no one is likely to: horse meat is eagerly consumed all over the globe, from Kazakstan to Argentina, as a tasty substitute for the tougher, stringier beef that can be bought for about the same price. Indeed, there’s not a little hypocrisy in this country about the cultural taboo surrounding horse meat. Until about 100 years ago, the Brits themselves were avid consumers of the stuff. Only more recently have we developed the refinement of conscience that prohibits national consumption, while allowing us to send up to 10,000 nags a year to specialist abattoirs, there to be despatched for the perverted pleasure of less civilised foreigners.

Alas, the ramifications of this affair go somewhat deeper. Imagine, for a moment, that instead of horse meat (and elements of pork), those eagle-eyed  inspectors at the Irish Food Standards Agency (FSAI) had found the minutest traces of human DNA. The uncontainable revulsion – far from affecting a few animal lovers, Muslims and Jews – would be universal. An official inquiry would, there and then, be instituted into how these three wise monkeys – the suppliers, the retailers and the regulator – had, through cavalier negligence and the unobstructed pursuit of greed, been allowed to corrupt the integrity of the food chain. Because, make no mistake, this little cock-up is all about money. The burgers most tainted were those from so-called “value” products where the cost of ingredients is at all times under pressure. Retailers want to satisfy their customers with the lowest possible prices consistent with food safety regulations. The suppliers – browbeaten by the retailers – seek low-cost substitutes (in this case from the less  punctilious Netherlands and Spain, where the consumption of horse meat is legal). And the UK regulator takes a passive, compliant attitude to anything that is outside its immediate remit (no conceivable threat to health, so why bother with DNA tests?), suggesting a “lite-touch” relationship that is too cosy with the industry it is supposed to govern.

It makes you wonder why the FSAI could be bothered with such tests, but the UK’s FSA could not. Or indeed, why the retailers didn’t carry out such DNA tests themselves. After all, it’s their brand reputation which is going through the mincer because they have not.


Sodastream ad controversy bubbles on

December 5, 2012

Sodastream adWhatever are the people at Sodastream complaining about? Having their ad pulled from television by the donkeys at Clearcast, the TV advertising vetting service, is a gift. It’s the sort of thing Rupert Howell and his team at HHCL used to have wet dreams about – the possibility of the regulator stepping in and banning their latest offering for Tango. Think of the attendant publicity, a priceless multiple of the original advertising budget.

And all the more so in Sodastream’s case. Back then, in the Tango era, YouTube and the viral were waiting to be discovered. What’s more Sodastream seems to have a case based upon rectitude rather than meretricious provocation. Any reasonable man on the Clapham omnibus would have difficulty in understanding the legitimacy of Clearcast’s complaint. Judge for yourselves:

What I see in this ad is each squirt of Sodastream saving you (and the environment) the cost of thousands of eco-unfriendly glass bottles a year. The claim is a trifle exaggerated perhaps, unless that squirt is a metaphorical one signifying a year’s usage of the soda-water maker, but its basis is surely unexceptionable. To any, that is, but those sitting in judgement at Clearcast, which represents the 5 major UK commercial TV companies.

And which bit of the governing Code of Advertising Practice (CAP), do the regulators believe Sodastream has transgressed? Well not, interestingly, 3.12   ”Advertisements must not mislead by exaggerating the capability or performance of a product or service.” No, they’ve gone for:  3.42  ”Advertisements must not discredit or denigrate another product, advertiser or advertisement or a trade mark, trade name or other distinguishing mark.”

Come again? Let’s look at that ad, in slow motion. Where’s the “product, advertiser or advertisement or a trade mark, trade name or other distinguishing mark”  – unless that last be a glass bottle? I’m one with Fiona Hope – the former Coke executive ultimately in charge of Sodastream’s UK advertising – here: it’s very hard to see how Clearcast, and subsequently its appeal committee, a) arrived at the notion that the ad “denigrates” the bottled drinks industry; and b) in what way article 3.42 of CAP is relevant justification for that view. Oddest of all is the fact that nowhere else in the world has the Sodastream campaign, devised by Alex Bogusky’s new advertising vehicle Common, fallen foul of the regulatory authorities.

One possible explanation for Clearcast’s bizarre behaviour is that the advisory committee suspected Bogusky of mounting a veiled assault on Coca-Cola – no small TV advertiser. As is well known, Bogusky – the former “B” in CP+B – was once creative servitor of the Coke Zero account. Now the breakaway wunderkind – and healthy-living freak – seems intent on war to the knife against his former paymaster. Note, for instance, this recent video for the Center for Science in the Public Interest that pillories Coke in all but name.

Clearcast, as a matter of tactics, would surely have been better advised to let the Sodastream ad air and allow the “bottled drinks industry” (whatever that may be) to complain to the Advertising Standards Authority – the proper forum for this kind of debate. Instead, the stubborn intransigence of its appeals committee has left Clearcast staked out in an indefensible Alamo.

Roll on Hope’s legal challenge to Clearcast’s judgement. Whichever way it goes, Sodastream can be confident of acres of free publicity – which should help UK sales no end.


Witch-hunt against corporate tax dodgers can damage jobs, as well as brands

December 3, 2012

StarbucksThere’s a grave danger that the witch-hunt against global brands who fail to pay their “fair share” of UK corporation tax will boomerang on the political class that has instigated it.

Google, Amazon and Starbucks have been chief whipping boys in an excoriating grilling by the powerful parliamentary Public Accounts Committee, headed by former Labour government minister Margaret Hodge. They are but the frontline of a phalanx of household multinational names – eBay, Facebook and Ikea prominent in the second rank – which are being prepped for humiliation in the court of public opinion. And behind the PAC’s bullying is a fully complicit Treasury – its head, George Osborne, desperately aware that falling corporation tax is contributing to the ruin of his re-election strategy.

Of course, what these brands are up to is hardly ethically defensible. To quote but a few examples, and bearing in mind that UK corporation tax on larger companies is currently levied at 24% of profits: Google claims to have a global profit margin of 33%, but its UK unit paid only £3.4m in tax last year; Starbucks paid just £8.6m on 13-year UK turnover of £3.1bn; Amazon’s UK tax bill last year was £1.8m on reported sales of £207m; and in 2010 eBay paid £1.2m in tax on UK sales of £800m.

Not the stuff of sincere corporate citizenry, and – consumer brands being peculiarly vulnerable to criticism – these companies are deservedly squirming as the rock is lifted from their unedifying activities.

But because we don’t like their behaviour that doesn’t make it illegal. Tax avoidance is something we would all get up to, if we had an army of tax accountants at our disposal. And maximising profits is one of the fundamental tenets of capitalism, as germane to the micro-entrepreneur as the multinational corporation. What hurts is the unfairness of it all. We small folk must contend with HMRC harassment, escalating fines and a brutal bailiff when we don’t pay our tax bills; big corporations, by contrast, merely cut a highly advantageous deal with the UK tax authorities who, to all appearances, are sycophantically grateful for anything they are given.

Margaret HodgeSo, what politicians are doing here is stoking the politics of envy: pitting the grievance of the many against the privilege of the few. It’s an easy populist game to play and amounts to a form of blackmail. You, Amazon, Starbucks et al, pay up or we will whip up a consumer boycott against you. Already, Osborne’s deputy, Danny Alexander, is “abstaining” from Starbucks coffee (although, in fact, admitting to only drinking tea) and Hodge (above) has knocked Amazon off her Christmas shopping list. How they’re going to hit Google in the googlies I’m not too sure, but the elements of a national campaign are there. Starbucks, for one, is already buckling and (in the words of the inevitable headline) waking up and smelling the coffee.

But wait. Enormously satisfying though this condign corporate punishment may be, could it not become a little, well, counter-productive if the trend really takes wing? Corporation tax, even if levied at the notional statutory level, makes – or would make – a fairly small contribution to the Exchequer when weighed against the other, less high-profile, benefits these companies bring to the national economy. Profitable companies create jobs, and the people who occupy these jobs pay income tax and national insurance contributions, which are of vastly greater importance as tax receipts. Though no economist, I’m tolerably certain that anyone who did the modelling would find that  ”zero-tolerance” enforcement of higher-level corporation tax is inversely related to job creation.

As for stirring up a consumer boycott, it’s merely killing the goose that lays the golden egg. Politicians, have a care.


How long before Leveson is kicked into the long grass?

November 29, 2012

LOL – now he knows what it means – must have been David Cameron’s reaction after reading Lord Leveson’s report on the culture, practice and ethics of the UK press. First came an audible sigh of relief over the vindication of his own reputation, which– despite inappropriate platonic text dalliance with La Brooks, now awaiting Her Majesty’s Pleasure on several criminal charges; oh, and former prime ministerial comms director Andy Coulson, let’s not forget him – received not a brickbat; then a guffaw over the exoneration of his health and former culture secretary Jeremy Hunt, once he realised Leveson had whitewashed his role in the BSkyB/Murdoch saga at the expense of Hunt’s mendacious adviser, Adam Smith.

But the biggest laugh of all was surely reserved for Leveson’s keystone proposal: a statutory “underpinning” to press regulation. Over Cameron’s dead body. The introduction of any such measure, however camouflaged, would be tantamount to the Tory leader committing political suicide.

This “underpinning” business is the crux of the report, and the reason why it  – like the 7 inquests into the power of the press over the last 70 years preceding it – will be kicked into the long grass as soon as dignity allows.

Let’s be quite clear. Neither Leveson nor any of the 300 or so witnesses called before the inquiry demanded explicit intervention by the state or politicians in the conduct of British newspapers. The debate is a lot more nuanced than that and concerns not whether – that is a given on all sides – but how the current, flaccid, self-regulatory apparatus – known as the Press Complaints Commission – should be given independent coercive force.

The newspaper proprietors and editors want PCC-Plus – no surprise there. While there are shades of difference between the Hunt/Black proposals (both these peers are prominent members of the PCC) and the axis represented by The Guardian, The Financial Times and The Independent, the press is united on one vital prerequisite to reform. Under no circumstances should there be any statutory element – direct or indirect – in the new, toughened regulatory framework, whatever final form it takes.

And that’s just where Leveson disagrees with them. His point is that no form of self-regulation can be credibly independent when newspaper proprietors – whatever their pious assertions about newspaper ethics in public – continue to pull the strings behind the scenes. PCC-Plus might enable them to do this in a number of ways. Though serving editors would now be excluded from any committee of the Good and the Wise, proprietors could exercise covert influence over the selection of those sitting in regulatory judgement over them through financial manipulation. One of the prime principles of self-regulation is, after all, the inalienable right of the industry being regulated to pay for its own regulation. Lack of financial love might well be shown towards any candidate considered even mildly resistant to the idea of uncurbed press freedom, in the form of a threatened funding boycott.

And that’s just for starters. What about speedy redress of wrongs? What of punishment that actually fits the crime – as opposed to a self-administered slap on the wrist, or impractically long and expensive court cases which are beyond the means of most would-be litigants?

For these and other reasons, Leveson seems to believe that only the veiled threat of statutory intervention will give the regulator the independence, public respect and muscle that is so clearly required. Most members of the public, according to recent YouGov opinion poll, agree with him. The trouble is, most of Cameron’s party – the party in power – do not. They know that the backing of newspaper proprietors can be vital to a successful election result; and, once in power, it is very difficult to succeed in the face of an unremittingly hostile press. They also know that whatever any future statute book might say, newspapers are a law unto themselves. And, when it comes down to it, they will portray legislative curbs on their activities as incipient tyranny – and brush it aside accordingly. One thing that hasn’t changed in over 70 years is the truth of then prime minister Stanley Baldwin’s observation that newspaper proprietors enjoy “power without responsibility – the prerogative of the harlot through the ages.” He was referring to Lords Beaverbrook and Rothermere, whose newspapers had just forced him from office. There’s still a Viscount Rothermere, but nowadays the Beaverbrook clan has been displaced by the Murdoch mafia.

So, statutory “underpinning” – forget it. As for Ofcom being allowed to do the underpinning, don’t make me laugh out loud. Ofcom is out of the frying pan into the fire, in regulatory terms. We can be certain the appointment of its executives will be untouched by the influence of press barons for one very good reason: they are picked by a minister of the crown (currently culture secretary Maria Miller). That aside, what conceivable qualification do a group of career bureaucrats have in passing judgement on press freedom?


BBC in uproar and not a Twitter from @rupertmurdoch

October 23, 2012

Considering the gloating opportunities, @rupertmurdoch has been abnormally restrained. Apart from a terse but prescient: ”Saville (sic)- BBC story long way to run. BBC far the biggest, most powerful organization in UK,” nothing has been said on the subject since October 14th.

Maybe the old boy has got bored with his favourite hobby, the British media. But I somehow doubt it. And his silence certainly can’t be attributed to not wanting to stick the knife in – as Hugh Grant, the “Scumbag Celebrity”, knows to his cost. No, @rupertmurdoch is surely waiting until the dish is sufficiently cold to make a mouthful of it.

And what a mouthful. The BBC has rightly made much of the fact that Savilegate (all crises these days are “-gates”, aren’t they?) has a silver lining. No other news organisation, they say, would be capable of an equivalently rigorous self-examination in the wake of such an error. “Mea culpa” is not, after all, a term you hear very often at News International – or anywhere else, for that matter, unless the lawyers so decree. But the BBC being more transparent is no guarantee that its senior executives are any less mendacious, self-serving and slippery than those of other media owners.

Today’s performance before the culture media and sport select committee by a nervous George Entwistle, now director-general, then director of vision (i.e. telly), left us in little doubt that Newsnight’s editor Peter Rippon is the one being lined up for the sacrificial knife. And it’s his blog what done it.

True, Rippon’s version of the facts leaves much to be desired. There are a number of errors in the post which make it apparent that, even looked at in the most charitable light, Rippon’s grasp of the situation was woefully inadequate. The point about not withholding information from the police, for instance, is downright misleading (whether deliberately so or not). That’s certainly conduct unbecoming in the editor of a programme of Newsnight’s calibre.

But all this proves very little, except that Rippon was desperate for some ex-post facto sticking plaster to justify a decision that he himself may have found incompatible with his professional ethics. The question is: how did he arrive at that decision? Hard evidence has yet to surface, but circumstantially there seem a number of things that just don’t add up. At one moment, Rippon is reported by the Newsnight editorial team to be upbeat about the Savile programme’s prospects; the next, he has decided to shelve it. Apparently, this happened very soon after he had informed the BBC’s head of news, Helen Boaden, of the programme’s content and intention. Boaden then told her boss, Entwistle. But, according to him, only in the most airy, abstract manner. With the result that this normally competent media professional entirely failed to recognise the Newsnight investigation might in, some way, undermine a lavish tribute programme shortly to be aired in Sir Jimmy’s honour – and make complete fools of the Corporation’s senior executives at the same time. That at least is what he is asking us to believe, since he clearly took no action to review the tribute programme.

Rippon, of course, is denying that Boaden gave him any advice beyond telling him to act according to his own lights. Whether that advice included a knowing wink and a nod, alluding to his future on the BBC career ladder, we shall probably never know. Boaden’s words are unrecorded, and she shows no sign of wishing to enlighten us further.

That said, maybe we should keep this affair in perspective. BBC executives may be dealing in half-truths and obfuscation, but they can hardly be accused of breaking the law. Unlike Trinity Mirror, publisher of the Daily Mirror, Sunday Mirror and The People, which is now facing civil actions over phone-hacking from former England manager Sven-Goran Eriksson and a number of other minor celebrities. Trinity Mirror’s senior management is, as it has routinely done since questions started to be voiced about Piers Morgan’s tenure as editor of The Mirror, denying any wrongdoing. But shareholders obviously don’t believe them. At one point, TMG shares dipped 12.5% today. Civil actions were the slow-burning fuse that eventually lit the powder-keg at News International.

As I say, the old boy is going to have a right old feast, once he gets round to serving it.


Lancing the boil of celebrity culture

October 18, 2012

For years he wove a cynical circle of deceit around the community, perpetrating the most heinous misdeeds while masquerading as a benefactor of mankind.

Of course, there were a few whispers. Doubters who thought the myth he had wrapped around himself was too good to be true. Alleged victims of his corruption who knew for certain he was a Wrong ‘Un (or so they claimed).

But who were these people? The spiteful and envious, endeavouring to poison the reputation of a noble celebrity with unfounded gossip. Or worse, Society’s sad losers maliciously fabricating tales of victimisation for their own financial gain. And why should we take any notice of them when their intended target was such a fine, upstanding, pillar of the community?

Jimmy Savile – for now, still a still a Knight of the Realm and Knight Commander of the Star, by order of the Holy See; Lance Armstrong – for now, still 7-times winner of the Tour de France: what’s the difference? They were gigantic frauds and they’ve had a good laugh at the expense of us all. But now it’s all over. Jimmy remains an untouchable – in a technical sense, at any rate, since he is beyond the grave. Lance is a little less fortunate. His life-expectancy, in view of the cancer challenge and toxic artificial stimulants religiously ingested over the years, must be severely foreshortened. Alas, not so foreshortened that he can escape the hand of Justice clamping his shoulder and calling him to account; or the incessant righteous ‘told-you-so’ opprobrium that will now rain down on his already mired reputation.

Because that’s the thing about reputations. Once trashed, there’s no rehabilitation, no going back. The evil that men do lives after them, the good is oft interred with their  bones.

Who, a few months on, will want to remember that Savile, the child molester and serial pervert, was also a doer of good deeds whose work for charity raised an estimated £40m?

Who now will wish to recall that Armstrong’s reputation and sporting prowess, however achieved, was indispensable to the success of the Livestrong, the cancer charity he founded 15 years ago?

Last year $35.8 million went through the charity’s books, 82 per cent of which was passed on directly to research programmes.

Yes, they were both self-serving hypocrites, in the sense they pretended to a piety they richly did not deserve. But weren’t we all complicit in that hypocrisy as well? Not just institutions like the BBC, Stoke Mandeville Hospital, or sponsors such as Nike, Oakley and Anheuser-Busch – who clearly had a vested interest in nay-saying whenever allegations of inappropriate conduct surfaced; but the rest of us too, who were gullible enough to believe that our idols really don’t have feet of clay? After all, who’s looking at the feet when the object of veneration is walking on water?

So, if Armstrong’s sponsors are heading for the exit as fast as their own feet of clay will carry them, and Savile’s charity is now studiously engaged in an act of collective amnesia over its founder’s name, can we really blame them? They are just as obsessed with, and as gullible about, celebrity culture as the rest of us.


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