LORD PUTTNAM, the Labour peer, said last night he was more hopeful of a compromise with the Government over controversial media ownership proposals within the Communications Bill.

The former film producer, who is leading the rebels in the House of Lords, is expected to be involved in ministerial negotiations over the next few days in an attempt to persuade the authorities to accept a “media plurality public interest test”. He wants to apply the test to all media mergers to ensure the interests of the public are considered alongside economic and competition issues.

If there is no compromise, an all-party coalition of peers is threatening to vote down two key provisions of the Bill.

The controversial clauses would allow main newspaper groups such as The News Corporation, parent group of The Times, and Trinity Mirror, publishers of the Daily Mirror, to buy Channel 5 for the first time. They would also allow US media groups to buy ITV.

Lord Puttnam is refining an amendment which he plans to re-submit in advance of a debate in the House of Lords next week. He plans to push the issue to a vote and believes he can win.

The new test would ensure “a plurality of media owners committed to a balanced and impartial presentation of news and to a balanced presentation of comment.” The amendment would also be designed to ensure there would be a wide range of voices to satisfy a range of tastes and interests.

“If we can get a plurality test we can make peace on everything else,” Lord Puttnam observed last night.

If the Government does not compromise there is, at the very least, a danger that the Bill will be delayed and pushed into an overspill session in the House of Lords in September.

The Puttnam amendment envisages Ofcom being able to comment on whether media plurality would be affected by any media takeover or merger.

It could mean fewer media mergers as a result.