House of Commons Public Bill Committee Proceedings

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Report Stage Proceedings: 18 March 2013
326

Crime and Courts Bill–[Lords], continued

Further appointments

26
Upon any person, including the Chair, ceasing to be a member of the
245
Recognition Commission for any reason, or the Recognition Commission

determining that the appointment of an additional member is desirable the

process for appointing a successor or additional member (as appropriate) shall

be fair and open, and meet the requirements specified above for appointments;

and the responsibility for making such an appointment (including selection)
250
shall be with the serving members of the Recognition Commission, and not the

Appointments Committee.

Money

27
The Secretary of State must within two months of Royal Assent set aside the

sum of £5 million for the purposes of this Schedule.
255
28
The sum set aside under paragraph 27 is to be invested by the Secretary of

State, and investment receipts are to be added to the capital and set aside for

the purposes of this Schedule.

29
The Appointments Committee and the Recognition Commission may apply to

the Secretary of State for sums to be made available in respect of expenditure
260
incurred or to be incurred by the Committee of the Commission; and

(a)
the Secretary of State shall grant applications;

(b)
but if the Secretary of State is concerned about sums expended or to

be expended, or the manner in which decisions about expenditure have

been or are to be taken, or the methods of procurement adopted, the
265
Secretary of State may refer the matter to, and comply with any

directions given by, the Comptroller and Auditor General.

30
The Appointments Committee and the Recognition Commission shall have

regard to any guidance given to them by the Treasury in relation to—

(a)
best practice in relation to procurement in the public sector;
270
(b)
any applicable European Union law relating to procurement;

(c)
accounting practice and record-keeping in the public sector; and

(d)
any other financial matters on which the Treasury think it appropriate

to give guidance.

Procedure
275
31
The Appointments Committee shall regulate its own procedure.

32
The Recognition Commission shall, subject to this Act, regulate its own

procedure.

Status of the Appointments Committee and the Recognition Commission

33
The Appointments Committee and Recognition Commission are not to be
280
regarded—

(a)
as the servant or agent of the Crown; or

(b)
as enjoying any status, immunity of privilege of the Crown.

Powers

34
The Appointments Committee and the Recognition Commission may do
285
anything calculated to facilitate, or incidental or conducive to, the carrying out

of any of their functions.

35
The Recognition Commission may charge fees to bodies which apply to be

recognised.

Report Stage Proceedings: 18 March 2013
327

Crime and Courts Bill–[Lords], continued

36
The Appointments Committee and the Recognition Commission may appoint
290
staff and engage services.

Part 4

Minimum Requirements for Recognised Regulators

Structure

37
A recognised regulator must be a company limited by guarantee.
295
Company objects

38
The principal objects of a recognised regulator must be to—

(a)
ensure the protection of freedom of expression of news publishers;

(b)
protect the public interest by ensuring ethical, accurate and truthful

reporting by news publishers;
300
(c)
maintain certain minimum ethical and professional standards among

news publishers; and

(d)
ensure that the privacy and dignity of the individual is protected.

Independence

39
A recognised regulator must be independent in the performance of its
305
functions.

Access to services

40
The regulatory system provided by a recognised regulator must be open to

subscription by any news publisher or other publisher on fair, reasonable and

non-discriminatory terms (although subscription should be made available on
310
different terms for different types of publishers).

Governing Board

41
A recognised regulator must be governed by an independent board, the

members of which are appointed without any influence of news publishers or

the Government.
315
42
The Board must be appointed by an independent panel which must—

(a)
be appointed in an independent, fair and open way;

(b)
contain a substantial majority of members who are demonstrably

independent of news publishers;

(c)
include at least one person with current experience of news publishers;
320
(d)
include no more than one current editor of a news publisher;

(e)
not include any Minister of the Crown, or any present or former

member of the House of Commons or the House of Lords or of any

devolved Parliament or Assembly who, while a member, has been

affiliated to any political party.
325
43
The Chair of the Board—

(a)
must be appointed by the independent panel by an independent, fair

and open process; and

(b)
must be independent of all political parties and all media

organisations.

Report Stage Proceedings: 18 March 2013
328

Crime and Courts Bill–[Lords], continued

330
44
The other members of the Board must be appointed by the independent panel,

and the Chair of the Board, using the same independent, fair and open process;

and the process must be designed to secure that the Board—

(a)
comprises a majority of members who are independent of news

publishers;
335
(b)
includes a sufficient number of members with experience of the media

who may include former editors and senior or academic journalists;

(c)
does not include any serving editor of a news publisher;

(d)
does not include any Minister of the Crown, or any present or former

member of the House of Commons or the House of Lords or of any
340
devolved Parliament or Assembly who, while a member, has been

affiliated to any political party; and

(e)
numbers among its members at least one third men and at least one

third women.

Finance
345
45
A recognised regulator must be funded under the terms of an agreement

between news publishers and the Board of the regulator, taking into account

the cost of fulfilling obligations of a regulator and the commercial pressures on

news publishers.

46
The Board of a recognised regulator must prepare an indicative budget which
350
it certifies is adequate for the purpose, in accordance with which funding

settlements—

(a)
cover five-year periods; and

(b)
are negotiated with a minimum notice period of 2 years excluding the

year of establishment of the regulator.
355
Standards Code

47
A recognised regulator must have a Standards Code which is the responsibility

of the Board, advised by a Code Committee which may comprise both

members of the Board and serving editors of news publishers.

48
The Code Committee—
360
(a)
must include members of the Board who are independent of news

publishers (“independent members”);

(b)
may include serving editors of news publishers; and

(c)
must have a simple majority of independent members.

49
The Standards Code must take into account the importance of freedom of
365
speech and the public interest.

50
The Standards Code must set out the ethical and legal context within which it

applies; together with a clear picture of how good journalism serves the public

interest and the implications that has for journalistic behaviour; and the Code

must cover standards for—
370
(a)
conduct, especially in relation to the treatment of other people in the

process of obtaining material;

(b)
appropriate respect for privacy where there is no sufficient public

interest justification for breach; and

(c)
accuracy and the need to avoid misrepresentation.
375
51
A recognised regulator must provide guidance, in the context of different

provisions of the Standards Code, on the interpretation of “public interest” that

justifies conduct that would otherwise be a breach of the Code.

Report Stage Proceedings: 18 March 2013
329

Crime and Courts Bill–[Lords], continued

52
The Standards Code must provide that news publishers will be held strictly

accountable for any material that they publish, including photographs
380
(however sourced).

53
A recognised regulator must establish a whistleblowing hotline for those who

feel that they are being asked to do things which are contrary to the Standards

Code.

Governance of subscribers
385
54
A recognised regulator must require all subscribers—

(a)
to maintain appropriate internal governance processes, in particular in

relation to the process of obtaining material for publication;

(b)
to provide transparency on what governance processes they have in

place, and
390
(c)
to give notice of any failures in compliance with the Code, as well as

details of steps taken to address those failures.

Complaints handling

55
A recognised regulator must—

(a)
require all subscribers to have an adequate and speedy complaints
395
handling mechanism;

(b)
encourage those who wish to complain to do so through that

mechanism;

(c)
not receive complaints directly unless or until the internal complaints

system has been engaged and the complaint has not been resolved
400
within specified time limits.

56
In relation to complaints—

(a)
a recognised regulator must have the power to hear and decide on

complaints about breach of the standards code by subscribers;

(b)
a recognised regulator must have the power (but not necessarily in all
405
cases, depending on the circumstances, the duty) to hear complaints

whoever they come from, whether persons personally or 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 which case the views of the party most
410
closely involved should be taken into account);

(c)
a recognised regulator must have the power to allow a complaint to be

brought prior to commencing legal proceedings, without prejudice to

any power of the court to order a stay of the regulator’s action if

continuing it would endanger the civil action;
415
(d)
decisions on complaints must be the ultimate responsibility of the

Board, advised by complaints handling officials to whom appropriate

delegations may be made;

(e)
serving editors may not have any role in determining the outcome of

individuals’ complaints, nor be members of any Committee advising
420
the Board on complaints and any such Committee must have a

composition broadly reflecting that of the main Board, with a majority

of people who are independent of the press; and

(f)
the mechanism must allow complainants to bring complaints free of

charge.

Report Stage Proceedings: 18 March 2013
330

Crime and Courts Bill–[Lords], continued

425
Investigations

57
The arrangements for subscription to each registered regulator must ensure

that—

(a)
the Board has authority to examine issues on its own initiative;

(b)
the Board has sufficient powers, and personnel with the necessary
430
experience and expertise and independence from news publishers, to

carry out investigations both into suspected serious or systemic

breaches of the Code and failures to comply with directions of the

Board;

(c)
subscribers are required to cooperate with any such investigation; and
435
(d)
the investigation process is simple and credible.

Breaches of Standards Code

58
A Board must have both the power and a duty to ensure that all breaches of the

Standards Code that is considers are recorded as such and that proper data is

kept that records the extent to which complaints have been made and their
440
outcome; and this information must be made available to the public in a way

that allows understanding of the compliance record of each subscribing

member.

59
In relation to breaches of the Standards Code which a Board finds to have been

established—
445
(a)
the Board must have the power to direct appropriate remedial action

for breach of standards and the publication of corrections and

apologies;

(b)
the Board must have the power to require publication of a correction

and an apology, both in relation to standards breaches affecting
450
individuals or groups of people, and in relation to matters of fact where

no single identifiable individual has been affected;

(c)
the Board must have the power to direct the nature, extent and

placement of apologies;

(d)
the Board must have the power to impose appropriate and
455
proportionate sanctions (including financial sanctions up to 1 per cent

of turnover, with a maximum of £1 million) on any subscriber found

to be responsible for serious or systemic breaches of the Standards

Code or governance requirements of the body; and

(e)
the Board must not have the power to prevent publication of any
460
material, by anyone, at any time although (in its discretion) it should

be able to offer a service of advice to editors of subscribing

publications relating to Standards Code compliance which editors, in

their discretion, can deploy in civil proceedings arising out of

publication.
465
Matters for consideration by the Board

60
The Board must demonstrate at the time of certification under paragraph 2(1)

that it has the ability and a timetable to consider all the matters set out in

paragraph 62.

61
The Board must demonstrate at the time of—
470
(a)
a review under paragraph 2(5)(a) that it has considered the matters set

out in paragraph 57 since certification; and

(b)
a review under paragraph 2(5)(b) that is has considered the matters set

out in paragraph 57 since the previous review.

62
The matters to be considered by the Board are—

Report Stage Proceedings: 18 March 2013
331

Crime and Courts Bill–[Lords], continued

475
(a)
the publication of compliance reports by papers in their own pages,

and requiring papers to have named senior individuals with

responsibility for compliance;

(b)
the establishment of a kite-mark scheme;

(c)
the holding of an early review of the Standards Code;
480
(d)
Standards Code amendments giving the recognised regulator the

power to intervene in cases of allegedly discriminatory reports, having

regard to the need to protect freedom of speech and the need to reflect

the purpose of equalities legislation;

(e)
the need to be explicit in its work that where public-interest
485
justification will be used, there should be a record of factors weighing

for and against publication, and of conclusions reached;

(f)
the provision of an advisory service to editors in relation to public-

interest considerations;

(g)
encouragement of its subscribers to be transparent with stories’
490
sources by providing information to help readers assess reliability of

the information provided, such as links to studies and poll results and

the names of photographers, subject to the condition that such

transparency does not undermine the protection of confidential

sources; and
495
(h)
a requirement for there to be a conscience clause in journalists’

contracts.

Annual report

63
The Board must publish an Annual Report identifying—

(a)
the body’s subscribers, identifying any significant changes in
500
subscriber numbers;

(b)
the number of complaints it has handled and the outcomes reached,

both in aggregate for all subscribers and individually in relation to

each subscriber;

(c)
a summary of any investigations carried out and their results;
505
(d)
a report on the adequacy and effectiveness of compliance processes

and procedures adopted by each subscriber;

(e)
information about the extent to which the arbitration service has been

used;

(f)
information relating to its financial arrangements in the exercise of its
510
functions and any changes to its financial arrangements.

Arbitration process

64
The Board must provide an arbitration service, for resolving publication

proceedings by arbitration which has rules which provides for a fair, quick and

inexpensive process, which is inquisitorial and free for complainants to use
515
(save for a power to make an adverse order for the costs of the arbitrator if

proceedings are frivolous or vexatious) and which has rules that—

(a)
allow complainants to recover their costs from persons subscribing to

the service, in circumstances where procedural fairness or access to

justice requires this;
520
(b)
give the arbitrator the powers in section 48(3) to (5) of the Arbitration

Act 1996;

(c)
allow either party to appeal to the High Court on a point of law in

accordance with section 69 of the Arbitration Act 1996;

Report Stage Proceedings: 18 March 2013
332

Crime and Courts Bill–[Lords], continued

(d)
allow the arbitrator to hold hearings where necessary or dispense with
525
them where not necessary; and

(e)
provide for frivolous or vexatious claims to be struck out at an early

stage.

Enforcement fund

65
The Board must establish a ring-fenced enforcement fund into which receipts
530
from financial sanctions are paid, for the purpose of funding investigations.

Advice to public

66
The Board must have the duty to provide advice to the public in relation to

issues concerning its subscribers and the Code.

Advice to media
535
67
The Board must have the duty to provide a service to warn its subscribers, and

other relevant parties such as broadcasters and press photographers, when an

individual has made it clear that they do not welcome press intrusion.

Duty to co-operate

68
The Board must have the duty to cooperate with any other recognised regulator
540
and must put in place procedures to enable such co-operation.’.

As an Amendment to Simon Hughes’s proposed New Schedule (NS4):—

Simon Hughes

Ian Paisley

Mr Ben Bradshaw

Mr Elfyn Llwyd

Not selected  (a)


Line  431,  after ‘carry out investigations’, insert ‘by a simple and credible

process’.

Simon Hughes

Not selected  NS6

To move the following Schedule:—

‘Royal Charter of Recognition body recognition criteria


The following requirements are the recognition criteria for the Scheme of

Recognition established under Article 4 of, and Schedule 2 to, this Charter.

1
An independent self-regulatory body should be governed by an independent

Board. In order to ensure the independence of the body, the Chair and members

of the Board must be appointed in a genuinely open, transparent and

independent way, without any influence from industry or Government. For the

avoidance of doubt, the industry’s activities in establishing a self-regulatory

body, and its participation in making appointments to the Board in accordance

with criteria 2 to 5, or in financing the self-regulatory body shall not constitute

influence by the industry in breach of this criterion.



© Parliamentary copyright	Revised 19 March 2013