Ministers accused of prioritising UAE interests in Telegraph ownership row
Ministers have been accused of prioritising the interests of the United Arab Emirates (UAE) over press freedom in a row over the ownership of The Telegraph.
Baroness Stowell, a Conservative peer, took aim at the Government for failing to say when it would introduce new laws that are crucial to the onward sale of the newspaper.
She said: 'We are left to assume that the Government are prioritising the sensibilities of a foreign government, who do not share our commitment to press freedom, over the news industry, the importance of press freedom and the survival of one of our national newspapers.'
RedBird IMI, the UAE-backed fund that owns The Telegraph, has been forced to sell the title after ministers intervened last year to ban foreign state ownership of newspapers.
However, secondary legislation creating limited exemptions to the ban is still yet to materialise and RedBird IMI has still not found a buyer.
The secondary legislation is considered vital across the news industry to address concerns that the foreign ownership ban could have unintended consequences for publishers such as Rupert Murdoch's News Corp and DMGT, the publisher of the Daily Mail.
A consultation into proposals that would allow sovereign wealth funds and pension funds to hold small minority stakes in British newspapers and magazines closed in early July last year.
Lady Stowell, who played a crucial role in blocking the UAE takeover, said the secondary laws were 'important to the whole news industry and to the sale of The Telegraph'.
Responding to the criticism, Baroness Twycross, culture minister, said the new legislation 'raises complex issues and involves multiple interests across government'.
She added: 'We are committed to considering this carefully and ensuring we understand the implications of such changes, including on the industry. It is important that we get this right.'
Pressed on a timeline for the new laws, Lady Twycross said they would be tabled 'very shortly'.
The Telegraph has been stuck in limbo for more than a year and uncertainty is growing over the newspaper's future ownership.
RedBird IMI, which does not control The Telegraph but owns the debt secured against it, last year ran an auction to sell the title, but a deal is yet to materialise.
Dovid Efune, the US news publisher who emerged as the leading bidder, has struggled to raise financing to meet the £550m price tag demanded by the UAE fund.
Ministers have previously refused to set a deadline for an onward sale, but insisted earlier this month that RedBird IMI had a 'clear intention' to sell up 'as soon as possible'.
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