Trade secretary Patricia Hewitt has defended the government's communications bill, claiming that it will increase television programme quality rather than undermine it.

Earlier this year, the joint committee led by Lord Puttnam warned that foreign ownership of British media should only be allowed after the establishment of the OfCom regulator.

"Enabling foreign ownership means a wider investment pool and more competition. The existing distinction between European and non-European investment in UK television inhibits competition," Hewitt told the Royal Television Society yesterday.

However speaking at the same event, director general of the BBC Greg Dyke warned that the new proposals were "naive" and threatened programme quality on the independent television stations.

"It is more important that we have a media that reflects our indigenous culture," he said.