Prescott calls for block on BSkyB takeover

John Prescott has called for broadcasting watchdog Ofcom to block Rupert Murdoch from taking full control of BSkyB after the Milly Dowler phone-hacking allegations.

The former deputy prime minister has written to the media regulator to ask it to assess whether Mr Murdoch and his directors are "fit and proper people".

Culture Secretary Jeremy Hunt has said that the hacking allegations are not relevant to his department's approval of the takeover as the issue can only be judged on the subject of media plurality.

The final deadline on the takeover is Friday when the latest consultation period closes. Mr Hunt announced last week that he had given the proposals clearance after Mr Murdoch made concessions regarding the control of Sky News.

Lord Prescott said to Ofcom in his letter: "Since the Secretary of State has said that he can only stop a takeover on the issue of plurality and competition, will you use your legal duties to assess whether Rupert Murdoch and News Corporation are fit and proper people to have outright ownership of BSkyB?" Under present legislation, Ofcom has the power to determine whether News Corp is a fit and proper owner of all of BSkyB, or even its current holding of 39 per cent."

But an insider at the regulator said: "There is a requirement that holders of broadcasting TV licences are fit and proper to do so.

At some point in the future we might therefore be required to consider whether the directors of BSkyB are fit and proper but this will only be after police inquiries are completed."