Parliament gives the thumbs up to the new ASA

26 October 2004

All the main parties in both Houses of Parliament approved Ofcom's proposals to contract-out broadcast advertising regulation to a new ASA. The ASA's successful 40 year history in regulating advertising in non-broadcast media proved crucial in securing parliamentary support.

What the Commons said:

The Minister for Sport and Tourism, Richard Caborn, who moved the motion, stated "The ASA is an effective self-regulatory body whose arrangements enjoy national and international respect"

Malcolm Moss, speaking for the Opposition, welcomed the proposals saying "On the basis of the industry's long-demonstrated commitment to successful and effective self-regulation through the ASA, we have for some time viewed broadcast advertising as an early contender for contracting-out by Ofcom."

What the Lords said:

Lord McIntosh (Lab) explained that the one stop shop would make it "simpler and easier for the public to complain".

He went on to explain, "The ASA(B) will be able to require changes, restrictions or removal of advertisements. These are the day-to-day tools of broadcast advertising regulation. But it is not to be given wider enforcement powers beyond the regulation of advertising. If a code breach appears serious enough to merit further enforcement action, such as the imposition of a fine on the broadcaster concerned, that will revert to Ofcom. Broadcasters would still remain responsible to Ofcom for all broadcast content through their Ofcom licence conditions. Ofcom is proposing to make the contracting-out exercise subject to the condition that it would approve the standards code drawn up by the new body."

Baroness Buscombe (Con) cited her time at the IPA that convinced her of "the deep-seated belief within the advertising industry in the need for robust and effective self-regulation." She went on to say "the industry has funded the ASA via a levy on advertising space since its inception 40 years ago and yet it certainly does not demand that the ASA sings to the industry's tune; far from it. So, the ASA model, now being extended to broadcast advertising, has built-in safeguards to ensure a proper level of independence and effective funding."

Lord Thomson of Monifieth, a former Chairman of the ASA and of the old Independent Broadcasting Authority, believed that "if self-regulation is to work in the consumer field, it must enjoy several conditions that have been the background to the ASA's success...First, there must be an adequate and independent source of finance. That is why the proposed levy system - not going round with a begging bowl, but a levy system; independent of the regulatory body called ASBOF which is being replicated for these new arrangements - will be set up. Secondly, the regulatory body should have effective enforcement sanctions. I think that the ASA system has proved that it has those. Finally, through the quality of the ASA Council, it must command credibility from both the public and the industry. The ASA Council has always sought to provide that by ensuring that a majority of the Council are independent members. I can only report that when I became ASA Chairman - for which I thought my essential qualification was that I knew nothing at all about the advertising industry and was totally independent of it - I was struck by the fact that it was the advertising industry members of the council who - with their expert knowledge of what advertisers could get up to in stretching the code of standards to the limit - were most determined to maintain the industry's standards and reputation. That is why self-regulation, when you can make it work, as the ASA does, is so much better than the bureaucratic alternative."

He concluded by wishing the "new marriage between Ofcom and the ASA will prove a resounding success".

We intend to live up to the high praise and expectation of Parliament in carrying out our current and new duties from 1 November.

Click here to read the Hansard transcript of the Commons debate.

Click here to read the Hansard transcript of the Lords debate.