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| Press regulation: newspapers may form breakaway bodies | Press regulation: newspapers may form breakaway bodies |
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| The cross-party political deal struck over Leveson press reforms is so controversial that it could lead to four separate breakaway regulatory groups, making a mockery of David Cameron's claim he has laid down a historic framework that would create a "good, strong self-regulatory" system. | The cross-party political deal struck over Leveson press reforms is so controversial that it could lead to four separate breakaway regulatory groups, making a mockery of David Cameron's claim he has laid down a historic framework that would create a "good, strong self-regulatory" system. |
| Less than 24 hours after politicians congratulated themselves on the new system, the industry was splintering further in its response with growing opposition among some sections of the press and local newspapers and magazines expressing serious concerns about a new arbitration system they fear could cripple their businesses. | Less than 24 hours after politicians congratulated themselves on the new system, the industry was splintering further in its response with growing opposition among some sections of the press and local newspapers and magazines expressing serious concerns about a new arbitration system they fear could cripple their businesses. |
| Cameron said on Tuesday he was "confident we've set up a system that is practical, that is workable, it protects the freedom of the press, but it's a good, strong, self-regulatory system for victims, and I'm convinced it will work and it will endure." | Cameron said on Tuesday he was "confident we've set up a system that is practical, that is workable, it protects the freedom of the press, but it's a good, strong, self-regulatory system for victims, and I'm convinced it will work and it will endure." |
| Four of the country's largest newspaper groups including the publishers of the Sun and the Daily Mail and the Daily Telegraph have already said they are taking "high-level legal advice" over concerns about statutory underpinning and powers the new watchdog would have, including the ability to force newspapers to published apologies. | Four of the country's largest newspaper groups including the publishers of the Sun and the Daily Mail and the Daily Telegraph have already said they are taking "high-level legal advice" over concerns about statutory underpinning and powers the new watchdog would have, including the ability to force newspapers to published apologies. |
| The deputy editor of the Daily Telegraph, Benedict Brogan, said on Tuesday that he believes the right course of action is to launch a breakaway regulator. | |
| "The biggest newspaper groups put their heads together and agreed to think about it, but you don't need to be Mystic Meg to work out that the drift is towards rejection. For my part – and this is a personal view – I've concluded that we should note the outcome, thank the politicians for their engagement, and quietly but firmly decline to take part," said Brogan in his morning briefing on the Telegraph website. | "The biggest newspaper groups put their heads together and agreed to think about it, but you don't need to be Mystic Meg to work out that the drift is towards rejection. For my part – and this is a personal view – I've concluded that we should note the outcome, thank the politicians for their engagement, and quietly but firmly decline to take part," said Brogan in his morning briefing on the Telegraph website. |
| If they set up a breakaway group, it would raise the prospect of the remaining newspaper groups including the Financial Times, the Guardian and the Independent being the only titles regulated by the government-backed watchdog. | If they set up a breakaway group, it would raise the prospect of the remaining newspaper groups including the Financial Times, the Guardian and the Independent being the only titles regulated by the government-backed watchdog. |
| Local newspapers and magazines could also set up on their own, insiders have warned, as all they can see is a financial downside to the new system. | Local newspapers and magazines could also set up on their own, insiders have warned, as all they can see is a financial downside to the new system. |
| Adrian Jeakings, chief executive of Archant, one of the country's local newspaper groups and owner of four daily local papers and 60 weekly titles, said he fears the system could "open the floodgates to compensation payments" and "would place a crippling burden on the UK's 1,100 local newspapers, inhibiting freedom of speech and the freedom to publish". | Adrian Jeakings, chief executive of Archant, one of the country's local newspaper groups and owner of four daily local papers and 60 weekly titles, said he fears the system could "open the floodgates to compensation payments" and "would place a crippling burden on the UK's 1,100 local newspapers, inhibiting freedom of speech and the freedom to publish". |
| One regional newspaper executive said regional papers do all they can to avoid court because of the prohibitive costs. | One regional newspaper executive said regional papers do all they can to avoid court because of the prohibitive costs. |
| "The Wolverhampton Express and Star is the biggest selling regional newspaper. It didn't pay out a penny last year to settle complaints and now under the arbitration system, it could be looking at a cost of £2,000, £3,000 or £4,000 per complaint," said one local newspaper executive. | "The Wolverhampton Express and Star is the biggest selling regional newspaper. It didn't pay out a penny last year to settle complaints and now under the arbitration system, it could be looking at a cost of £2,000, £3,000 or £4,000 per complaint," said one local newspaper executive. |
| "Most people just want corrections and are happy with that, but if you get ambulance-chasing lawyers trawling the local papers for libel and contacting people to tell them go to arbitration because you might get £500, then the costs could soon run to tens of thousands, if not more, and that would be a problem." | "Most people just want corrections and are happy with that, but if you get ambulance-chasing lawyers trawling the local papers for libel and contacting people to tell them go to arbitration because you might get £500, then the costs could soon run to tens of thousands, if not more, and that would be a problem." |
| "It would be worth looking at a body that deals with regional press and magazines which didn't seek recognition from the recognition panel," said another executive. | "It would be worth looking at a body that deals with regional press and magazines which didn't seek recognition from the recognition panel," said another executive. |
| Although less likely, there is a possibility of a fourth breakaway group in Scotland after a group appointed by First Minister Alex Salmond recommended that Scotland's press should have compulsory statute-backed regulation – even if the rest of the UK does not. | Although less likely, there is a possibility of a fourth breakaway group in Scotland after a group appointed by First Minister Alex Salmond recommended that Scotland's press should have compulsory statute-backed regulation – even if the rest of the UK does not. |
| So far, only one national newspaper, the Independent, has said it will agree to be regulated by the new body and one other group - Trinity Mirror is keeping its counsel. | So far, only one national newspaper, the Independent, has said it will agree to be regulated by the new body and one other group - Trinity Mirror is keeping its counsel. |
| Mirror Group Newspapers insiders say it is still considering its options, although it has serious reservations about the Westminster deal – particularly in relation to forced apologies and the plan to allow the regulator appoint the committee which writes the code of conduct for newspapers. | Mirror Group Newspapers insiders say it is still considering its options, although it has serious reservations about the Westminster deal – particularly in relation to forced apologies and the plan to allow the regulator appoint the committee which writes the code of conduct for newspapers. |
| MGN also has concerns over the cost implications for its portfolio of regional and local papers, including the Newcastle Chronicle and the Liverpool Echo because of the arbitration unit. | MGN also has concerns over the cost implications for its portfolio of regional and local papers, including the Newcastle Chronicle and the Liverpool Echo because of the arbitration unit. |
| The Department of Culture, Media and Sport, said there was nothing to stop a multi-tier regulatory system, but industry insiders say it would not be economically viable. | The Department of Culture, Media and Sport, said there was nothing to stop a multi-tier regulatory system, but industry insiders say it would not be economically viable. |
| Some 60% of the Press Complaints Commission's funding comes from national newspapers, but it is believed the Financial Times, Guardian and Independent, contribute only about 5% to 6% of the overall budget of around £2m and could ill afford to fund a new system whose costs have been estimated at £3m a year. | Some 60% of the Press Complaints Commission's funding comes from national newspapers, but it is believed the Financial Times, Guardian and Independent, contribute only about 5% to 6% of the overall budget of around £2m and could ill afford to fund a new system whose costs have been estimated at £3m a year. |
| Associated Newspapers, News International and the Telegraph Media Group, have much larger circulations and advertising revenue and could afford to go it alone, but would risk the imposition of exemplary damages in the high court. As part of the Leveson deal agreed in Westminster, newspaper groups who didn't sign up to the new watchdog would face punitive damages and the risk of having to pay a claimant's legal bills, even if they lost their case against the newspaper. | Associated Newspapers, News International and the Telegraph Media Group, have much larger circulations and advertising revenue and could afford to go it alone, but would risk the imposition of exemplary damages in the high court. As part of the Leveson deal agreed in Westminster, newspaper groups who didn't sign up to the new watchdog would face punitive damages and the risk of having to pay a claimant's legal bills, even if they lost their case against the newspaper. |
| However, the newspaper industry received legal opinion last month from three of the country's top media barristers – Lord Pannick, Desmond Browne and Anthony White – who concluded that the exemplary damages clauses were incompatible with Article 10 of the European Convention on Human Rights. | However, the newspaper industry received legal opinion last month from three of the country's top media barristers – Lord Pannick, Desmond Browne and Anthony White – who concluded that the exemplary damages clauses were incompatible with Article 10 of the European Convention on Human Rights. |
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| A report looking at how the Leveson Report should be implemented in Scotland, published today, comes after Prime Minister David Cameron announced he was putting the Tory party's Royal Charter to a vote in Parliament. | A report looking at how the Leveson Report should be implemented in Scotland, published today, comes after Prime Minister David Cameron announced he was putting the Tory party's Royal Charter to a vote in Parliament. |