News Corp closer to buying BSkyB

30 June 2011 Last updated at 12:47 GMT News Corp already owns 39% of BSkyB The government has said it is "minded to accept" News Corp's assurances about the spin-off of Sky News, but is to consult on some fresh conditions.

The spin-off of Sky News is the key condition if News Corp is to be allowed to take full ownership of BSkyB.

The conditions include having an independent editorial director at Sky News board meetings and for Sky News to continue to be promoted on other Sky channels.

The consultation will run until 8 July.

After that date, the Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt, will take a final decision on whether to allow the takeover or refer it to the Competition Commission.

Earlier advice from the Office of Fair Trading and media regulator Ofcom expressed concern about News Corp owning too much of the British media.

Continue reading the main story Torin Douglas BBC media correspondent

No-one can accuse the Culture Secretary of rushing into this.

It's over a year since News Corp announced it wanted to buy the 61% of shares in BSkyB it didn't already own.

It's three months since Jeremy Hunt - advised by regulators - indicated that News Corp could avoid a Competition Commission inquiry if it hived off Sky News into a separate company.

Now he's consulting for a further seven days on some slightly tougher conditions, including a requirement for Sky to continue to "cross-promote" Sky News on its channels.

Some time after 8 July, News Corp will be given clearance to proceed with its bid. At that stage, it becomes a battle over price.

A year ago, it bid 700 pence a share but BSkyB's share price has risen to around 850 pence.

Some of its shareholders want News Corp to pay much more.

Last June, News Corp offered 700 pence a share for BSkyB, but the board of BSkyB told it to come back with a higher offer.

Since then, BSkyB shares have risen significantly, and were 850p in early trading on Thursday.

Even if the takeover is cleared by the culture secretary next week, the deal could still stumble if a price cannot be agreed.

The company currently holds a 39% stake in BSkyB and owns the Sun and Times newspapers.

News Corp offered to spin off Sky News as an independent company, but continue to fund it, in order to prevent the takeover deal being referred to the Competition Commission.

Mr Hunt launched a consultation on the plans on 3 March, as a result of which he has added four extra conditions to the deal:

Sky News board meetings will be attended by an independent director with editorial experience when editorial decisions are to be madeA monitoring trustee will be appointed to make sure News Corp applies with its undertakings on Sky NewsOther Sky channels will continue to promote Sky NewsSky News' Articles of Association have to be approved by the secretary of state

The government received more than 40,000 representations in its consultation, but said there was nothing to change its earlier view that the spin-off of Sky News would make the BSkyB takeover acceptable.

The deal has been vigorously opposed by an alliance of other newspapers, including the publishers of the Guardian, the Daily Mail and the Daily Telegraph.

'Banana republic'

Mr Hunt was called to the House of Commons to answer an emergency question about BSkyB from former Labour MP Tom Watson.

"I'm sure the secretary of state will get his reward for this decision but he will pay a very high political price," Mr Watson said.

"This shady deal would shame a banana republic."

Mr Hunt responded by stressing that he had taken independent advice on the issue.

"I am perfectly well aware that on an issue like this, no-one is going to trust the motives of politicians," he said.

"That is why, at every stage, I have sought independent advice from Ofcom, the independent regulator, and from the Office of Fair Trading."

BBC business editor Robert Peston said the ruling meant that the culture secretary accepted that some of the critics of the deal were right, but that the criticisms were not enough for him to feel that he wants to block the takeover.

"He is, he thinks, taking steps to allay the concerns that Sky News will simply become another identikit voice within the News Corp stable rather than maintaining the kind of independence that it's had over many years," he said.

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Energy saving plan comes closer

2 June 2011 Last updated at 10:36 GMT The cost of the work will be added to electricity or gas bills The government has revealed more details of its Green Deal scheme to help people pay for home insulation and other energy saving measures.

The plan should be launched in the autumn of next year.

Under it, authorised companies will pay for the insulation work and homeowners will repay the money, plus interest, through additional charges on their energy bills.

The government hopes people will repay loans of up to ?10,000, over 25 years.

Climate change minister Greg Barker said: "The Green Deal is the government's flagship energy saving plan to transform the country's homes to make them warmer and cheaper to run.

"From next year, people will be able to access up to ?10,000 upfront to pay for energy efficiency work, repaying the costs through savings on energy bills."

Legal changes

The scheme still requires a lot of work before it is ready to start.

A few firms such as Marks & Spencer, B&Q, Tesco and British Gas have expressed an interest in marketing the scheme and providing the finance.

But the law will need to be changed so that energy firms will be obliged to collect the repayments from homeowners via their energy bills.

The law will also need to be altered so that anyone who buys after the work has been done, but before the bill has been fully paid, is obliged to take on the debt and repay it.

These legal changes are included in the current Energy Bill, which is going through parliament and should receive its Royal Assent this July.

It has also not yet been decided just how much interest will be added to the loans.

How will it work?

The firms who eventually market the Green Deal will employ assessors to estimate just how much a householder can save through various insulation or heating measures.

These may include loft insulation, condensing boilers, draught proofing, solar panels and double glazing.

Once the work is assessed and agreed, the installation work will be contracted out to accredited installers.

Then the homeowners will have to start paying.

A key feature is that homeowners must be able to save more on their energy bills than they pay back.

What is the attraction for the big firms that the government hopes will market the scheme?

"Companies will see it as a marketing opportunity to sell other things," said a spokeswoman for the Department of Energy and Climate Change.

Anne Robinson, of the price comparison website Uswitch, said: "People who have the Green Deal will be paying a lot less for their energy after a year or two."

But Richard Lloyd, of the consumers' association Which?, warned against the dangers of shoddy workmanship.

"Our latest research into cavity wall insulation uncovered inadequate inspections and poor advice," he said.

"For this scheme to be a success, Green Deal assessors need to be held to the highest standards."

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