Investigative journalism would not be curbed by ability to fine newspapers, Ofcom chief says

Ed Richards told the Leveson inquiry into press standards that he was "not at all persuaded" that such an effect had been felt in broadcast journalism even though Ofcom has the power to fine broadcasters for breaches of its Broadcasting Code.

"There is no reason at all why the presence of a financial penalty should deter good, effective investigative journalism, because good, effective journalism stays within the code and is therefore not subject to it, and indeed there are plenty of examples of broadcast journalism, broadcast investigative journalism, which has been both controversial, highly challenging, which has been done entirely within the Broadcasting Code," Richards said.

"So the notion that it is simply not possible or somehow there is no investigative journalism in broadcasting because of the presence of the code or the possibility of a financial deterrent simply, to me, is not supported by the evidence," he said. "That is my perspective, that is a perspective borne from my experience here, it's a perspective borne from talking to dozens of journalists in broadcasting who I know, and you will have taken your own evidence from practitioners."

In July Prime Minister David Cameron announced an independent inquiry into the culture, practices and ethics of the press, led by Lord Justice Leveson, following allegations of phone hacking at the now-defunct News of the World newspaper.

The UK press is currently self-regulated by industry representatives under rules set out in the Editors' Code of Practice (Code). The Code is a set of standards journalists should observe when reporting and includes rules on accuracy, intrusion into grief and privacy and secret recordings.

Press watchdog the Press Complaints Commission (PCC) can 'name and shame' publications that break the Code and ask them to publish apologies, but it has no legal powers to enforce punishments such as fines for violations of the Code.

Leveson has heard from newspaper editors, reporters, celebrities, regulators and others with many suggesting that the existing regulatory regime needs to be replaced. Cameron previously branded the PCC "ineffective and lacking in rigour" and lacking in public confidence.

Richards said that the threat of fines made broadcasters more alert to their regulatory responsibilities.

"The advantage of a financial penalty is firstly the bottom line, obviously, but much more importantly, I think is that it tends to have far more significant reputational consequences, so a financial fine is not just a correction which the 5 million people watching that programme would see, but it's something which will then be reported by the rest of the media, and which a broader, far wider range of people would also be aware of, and therefore I think it has an additional deterrent benefit," Richards said.

Ofcom chairwoman Dr Collette Bowe, also giving evidence, agreed.

"The financial penalty is something that will probably gain the undivided attention of those who are responsible for the management of the business, as distinct from those who are responsible for the editorial side of the business, and that is another issue to bear in mind in thinking about how one constructs the appropriate sanction," Dr Bowe said.

Richards also told the inquiry that investigative powers Ofcom has to look into suspected cases of wrongdoing by broadcasters were vital to the success of the body as a regulator.

"It's difficult for me to conceive of doing our job effectively in the absence of effective investigatory powers. It's such a key tool, not necessarily because we routinely use it, but because the broadcasters know that we could. And what that means is that it massively helps with compliance, with record-keeping. I think it's an absolutely critical tool in the effectiveness of a regulator," Richards said.

Under the Communications Act Ofcom must set out standards relating to content and other aspects of broadcasts, such as fairness and privacy, in codes that licensed broadcasters are required to adhere to. Ofcom has a duty under the Act to set out procedures on how it will deal with complaints about breaches of those codes and has the power to undertake its own investigations into suspected rule violations.

Ofcom can issue commercial broadcasters with fines of up to £250,000 or 5% of their qualifying revenue, whichever is greatest, for breaches of the Broadcasting Code. Ofcom can fine the BBC up to £250,000 for breaches of the Code.

Ofcom's Broadcasting Code sets out what broadcasters can and cannot do when producing content. Some parts of the code govern aspects of the content the BBC produces, whilst commercial broadcasters must abide by the code in its entirety.

BBC staff must follow specific guidelines on accuracy and impartiality. These rules are set out in the BBC Agreement, which the corporation signed jointly with the Government.