Here in New Zealand the media, and in particular the state-owned broadcasters, show similar political partisanship. A few days ago I was in a taxi and the cabbie was listening to Radio New Zealand National's Morning Report programme, which has a heavy focus on coverage of local political affairs. Now, I stopped listening to National Radio during the 2008 election campaign when the station made no attempt to hide its hugely biased coverage in favour of then Labour Prime Minister Helen Clark over (successful) centre-right National Party challenger John Key. I was tempted to ask the cabbie to turn it off but decided it would be interesting to see whether National Radio's coverage of politics had become any more even-handed. There followed the most appalling radio interview I have heard in a long time. The reporter, unable to bait her cabinet minister interviewee into conceding what she wanted, resorted to the sort of petulant hectoring one would normally only hear in a drunken pub debate. This endured for five minutes with the cabinet minister maintaining her position calmly and the reporter becoming ever more belligerent.
Of course there is a very logical reason why state broadcasters should be biased towards left-wing political views and that is that state ownership and forcible tax-payer funding of broadcasting services only makes sense to those with Socialist views. It is simply self-interest and self-preservation.
There was perhaps a legitimate economic argument in favour of the state getting into broadcasting in the early days of radio and television, when the entry costs were a high barrier to the private sector, particularly in small countries like New Zealand. It could be argued that if the New Zealand Broadcasting Corporation hadn't established a television network in New Zealand in 1962 then this country may have gone without television for many years after that. Personally I think this is doubtful and in a free market it wouldn't have taken long for small, local television broadcasters to become established (and deregulation in 1989 proved this by quickly leading to the establishment of the privately-owned TV3). But even if such economic arguments had some legitimacy years ago, in the current environment when anyone with a personal computer can set up their own Youtube channel or streaming radio channel, such arguments are ridiculous.
The answer for David Cameron is that he should privatise the BBC. It is the dominance of the BBC and Radio New Zealand through state funding and protection that gives them their political power. In a highly competitive market, the biases of one broadcaster would not matter.