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Ofcom chief says regulator has to be involved in politics to function Ofcom chief says regulator has to be involved in politics to function
(about 4 hours later)
Ed Richards, the outgoing Ofcom chief executive, has said it would be “delusional” to think the regulator is not involved in political circles. But in his dealings with six or seven culture secretaries over the past decade, none have overstepped the mark.Ed Richards, the outgoing Ofcom chief executive, has said it would be “delusional” to think the regulator is not involved in political circles. But in his dealings with six or seven culture secretaries over the past decade, none have overstepped the mark.
Speaking in front of the Lords communications committee late on Tuesday, Richards admitted he was often plagued by politicians “intensely interested” in the regulator’s business. Speaking in front of the Lords communications committee late on Tuesday, Richards said politicians were “intensely interested” in the regulator’s business.
He also said that it was too easy for media companies to appeal Ofcom’s regulatory decisions and on any given week it was defending up to 10 of its rulings in the courts.He also said that it was too easy for media companies to appeal Ofcom’s regulatory decisions and on any given week it was defending up to 10 of its rulings in the courts.
Richards added that when he joined Ofcom in 2003, it employed 10 lawyers, now it has a team of about 40.Richards added that when he joined Ofcom in 2003, it employed 10 lawyers, now it has a team of about 40.
Baroness Healy asked Richards if there was “a risk that Ofcom has become too close to the political process and policy development”.Baroness Healy asked Richards if there was “a risk that Ofcom has become too close to the political process and policy development”.
“The nature of the business and the area [in which the regulator operates] means that anybody who pretended that Ofcom could conduct itself in a typical year without any interface or interaction with the political world would in all honesty be delusional,” said Richards. “These issues are too important to people, in people’s lives, for their not to be interest of real significance in the political sphere.”“The nature of the business and the area [in which the regulator operates] means that anybody who pretended that Ofcom could conduct itself in a typical year without any interface or interaction with the political world would in all honesty be delusional,” said Richards. “These issues are too important to people, in people’s lives, for their not to be interest of real significance in the political sphere.”
Richards, who will leave Ofcom after more than a decade at the end of the year, said the question was how to handle the political pressure “and do it in the best and right way”.Richards, who will leave Ofcom after more than a decade at the end of the year, said the question was how to handle the political pressure “and do it in the best and right way”.
“I have had I think six or seven secretaries of state [for culture, media and sport] while I’ve been chief executive,” he said. “I’ve dealt with Labour ministers, Conservative ministers, Liberal Democrat ministers, and with the SNP in Scotland. I can say with complete honesty not a single one of those ministers has sought to overstep the mark in a way that has troubled me.”“I have had I think six or seven secretaries of state [for culture, media and sport] while I’ve been chief executive,” he said. “I’ve dealt with Labour ministers, Conservative ministers, Liberal Democrat ministers, and with the SNP in Scotland. I can say with complete honesty not a single one of those ministers has sought to overstep the mark in a way that has troubled me.”
He added that there has been a “clear acceptance” that Ofcom has been set up to be an independent regulator, and that has been “honoured by politicians of both sides in a way that I have found satisfactory.”He added that there has been a “clear acceptance” that Ofcom has been set up to be an independent regulator, and that has been “honoured by politicians of both sides in a way that I have found satisfactory.”
However, Richards complained that it was too easy for companies to appeal Ofcom decisions, which often resulted in years of legal red tape before a regulatory change could happen.However, Richards complained that it was too easy for companies to appeal Ofcom decisions, which often resulted in years of legal red tape before a regulatory change could happen.
He said that Ofcom has a “uniquely low” threshold for review and that “every day of every week” the regulator is defending between three and 10 of its decisions in court.He said that Ofcom has a “uniquely low” threshold for review and that “every day of every week” the regulator is defending between three and 10 of its decisions in court.
He said that while the Competition Appeal Tribunal, where cases that are appealed get scrutinised and ruled on, was meant to deal with appeals of cases across the spectrum of the UK economy, in reality it was bogged down by Ofcom’s broadcasting and media industry battles.He said that while the Competition Appeal Tribunal, where cases that are appealed get scrutinised and ruled on, was meant to deal with appeals of cases across the spectrum of the UK economy, in reality it was bogged down by Ofcom’s broadcasting and media industry battles.
“Look at the business in the CAT, it is looking at the whole economy supposedly, but I think we alone make up 85% to 90% of their work. Just us,” he said. “We alone make up a huge majority of their decisions. We win most of our cases but giving you an honest answer of whether for the UK this is a good position, is the balance right, it isn’t.”“Look at the business in the CAT, it is looking at the whole economy supposedly, but I think we alone make up 85% to 90% of their work. Just us,” he said. “We alone make up a huge majority of their decisions. We win most of our cases but giving you an honest answer of whether for the UK this is a good position, is the balance right, it isn’t.”
Richards said the issue is that cases can get held up for years – for example a battle with Sky over the price it offers its pay-TV channels to rivals is heading for its fifth year.Richards said the issue is that cases can get held up for years – for example a battle with Sky over the price it offers its pay-TV channels to rivals is heading for its fifth year.
“What I don’t think is right is what we are trying to do here is balance efficiency and justice,” he said. “What you shouldn’t do is have a system that emphasises justice to a degree you can no longer make timely decisions.”“What I don’t think is right is what we are trying to do here is balance efficiency and justice,” he said. “What you shouldn’t do is have a system that emphasises justice to a degree you can no longer make timely decisions.”
Richards argued that the solution was to scrap the “uniquely low” review threshold Ofcom is subject to, called a merits appeal, and adopt a system called enhanced judicial reviewRichards argued that the solution was to scrap the “uniquely low” review threshold Ofcom is subject to, called a merits appeal, and adopt a system called enhanced judicial review
“The system of enhanced [judicial review] is consistent with European law,” he said. “I am completely in favour of us being subject to appeal, totally, if we make a bad decision it should be overturned. Absolutely.”“The system of enhanced [judicial review] is consistent with European law,” he said. “I am completely in favour of us being subject to appeal, totally, if we make a bad decision it should be overturned. Absolutely.”
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