Trinity Mirror questions Hunt's local TV plans as local news consortia axed

Culture Secretary Jeremy Hunt dealt the final blow to plans for new local news networks set up by the previous government to replace local news provision by the ITV and STV networks.

In a speech yesterday, Hunt said the Independently Funded News Consortia (IFNC) were "misguided" and would not go ahead - an anticipated outcome after stiff opposition to the Labour government scheme from the Conservatives before the general election.

Three pilot consortia in Tyne Tees and Borders, Scotland, and Wales had been planned and a bidding process for these trials had been completed. Johnston Press was named as one of the preferred bidders for the Scottish pilot, as part of a joint proposal with the Herald and Times Group, DC Thomson and independent TV production company Tinopolis. In Wales, UTV and regional and local newspaper publisher NWN Media had their Wales Live approved; while a partnership between Trinity Mirror, the Press Association and independent TV production company Ten Alps was given the nod in the Tyne Tees and Border region.

"They [IFNCs] had the positive benefit of stimulating new and imaginative thinking amongst local media companies for which I am grateful - and I want to carry on talking to those who submitted bids about your ideas. But, fundamentally, they were about subsidising the existing regional news system in a way that would have blocked the emergence of new and vibrant local media models fit for the digital age," said Hunt.

"They risked turning a whole generation of media companies into subsidy junkies, focusing all their efforts not on attracting viewers but on persuading ministers and regulators to give them more cash."

Trinity Mirror chief executive Sly Bailey and UTV managing director Michael Wilson both said the decision to cull the consortia had not come as a surprise give the Conservatives' stance on the plans whilst in opposition.

But in a statement given to Journalism.co.uk, Bailey was skeptical of proposals outlined in Hunt's speech for local TV stations. The Culture Secretary has commissioned research into the potential for "commercially viable local television stations within the local media landscape" and will publish a local media action plan in the autumn.

"As part of one of the successful IFNC bidding consortia we're naturally disappointed that the government has called time on these plans. We believed that the IFNCs' capacity to tap the talent and expertise of regional media companies to provide a viable alternative to the BBC's local news made sense for everyone," she said.

"We look forward to seeing the results of the independent commercial assessment of local television but it's worth noting at this point that we don’t see 'City TV' as a viable proposition. Our research suggests that the costs are too high and the revenues too low to support a sustainable business model."

In a statement, Wilson added that UTV was looking forward to working with the new Culture Secretary on "new ways to deliver regional news which will be both high quality and sustainable".

"The concept of the Independently Funded News Consortia offered a real way forward in boosting news provision on channel 3 and multi-platform coverage across the whole of Wales. Wales Live - our partnership with UTV - saw this as an unrivalled opportunity to change the landscape of news provision in Wales where there is an urgent need for that change. We are disappointed with today's statement that the news pilots will not proceed," added David Faulkner, managing director of NWN Media, in a statement given to Journalism.co.uk.

The savings from the IFNC pilots will be used to fund plans for the roll out of superfast broadband, outlined by Hunt in the rest of his speech.

Changes to cross-media ownership
Hunt said he will accept industry regulator Ofcom's recommendations to relax cross-media ownership rules, enabling local newspapers to own commercial radio stations and set up local TV stations.

The Culture Secretary said he would look to update the current rules for cross-media ownership, including whether all cross-media ownership rules should be removed at a local level, and bring in new legislation including these changes by the summer.

"Consumers are hopping freely from platform to platform. Media companies need to be able to follow their customers - and a sensible regulatory environment would allow them to do just that whilst ensuring concerns about local monopolies were sensibly addressed," he said.

Relaxing cross-media ownership rules will be crucial to revitalising local media in the UK, former OFCOM deputy chairman Richard Hooper and Ten Alps founder Alex Connock, who were both involved in the IFNC process, said at an event last night.

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