The transcripts of the official inquiry into the culture, practices and ethics of the press. More…

I think that's fair. I think it is, if you like, structural. So the safeguards and fire walls and internal structure of the body really needs to be looked at very carefully.

If I might just take a couple of steps back and refer to something that Ed Richards said in his evidence a couple of days ago. He made a quite brilliant point, I thought, about really understanding the fundamental incentives which apply in self-regulation. So we shouldn't assume all self-regulatory bodies are similar, and he made the point that, for example, advertising self-regulation -- there's a very clear self-interest, if you like, an enlightened self-interest, on the part of the advertising industry to regulate itself, because it's necessary in general terms to maintain, for example, trust in advertising. So accuracy and various other code articles can be applied. So advertising self-regulation tends to work quite effectively.

That's not the case, for example, in online gambling self-regulation, where it's my view that the industry does not have an interest in restricting its market by dealing, for example, with public policy issues of problem gambling.

So comparing self-regulatory bodies is not really comparing like with like. You have to understand whether the incentives line up and whether that magic of enlightened self-interest on the part of the industry to regulate itself actually comes into play.

I would take, in relation to the press, the logic just a step further and suggest that we should begin to think -- in relation, for example, to phone hacking or privacy violations more generally, begin to think about how the incentives line up for the industry, particularly in newspapers.

Privacy violations provide a huge amount of resource. They provide front pages, which sell newspapers. No economist, as far as I know, has actually valued that, but if you have a self-regulatory body which is not -- in some senses, it might have the value of keeping statutory regulation at bay, but it may not have, at its core, the objectives of actually dealing with those kinds of public interest issues.

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