Tuesday, April 24, 2012

Leveson Inquiry: Murdoch says Hunt not NI cheerleader

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Ex-News International chairman James Murdoch has denied Culture Secretary Jeremy Hunt acted as a "cheerleader" for the company's bid for BSkyB.

Leveson Inquiry counsel asked about a comment on Mr Hunt's website: "Hunt is a cheerleader for Rupert Murdoch's contribution to British television."

Mr Murdoch said he did not think so: "I wouldn't describe it that way."

Earlier, Mr Murdoch said he "stood by" testimony he never saw an email showing phone hacking went beyond one reporter.

Mr Murdoch was questioned by counsel for the inquiry Robert Jay QC about his contact with politicians before and during News Corp's bid for BSkyB - which the company abandoned in July 2011 after the hacking scandal surfaced.

Mr Murdoch said he was "alive to the risk" that politics might influence his company's position, but added: "We rested on the soundness of the legal case."

In September 2010, BBC business editor Robert Peston blogged that Ofcom was expected to review News Corp's bid for the remaining shares in satellite broadcaster BSkyB.

The phone hacking saga, the hearing was told, was "well trodden ground".

James Murdoch remained on familiar turf. He made no new concessions and was left with the suggestion, which he rejected, that either he'd been involved in a cover-up or there'd been a failure of governance at the company he was responsible for.

The issue of James Murdoch's relationship with politicians may well prove to be more fertile territory for the inquiry to examine and for, ultimately, Lord Justice Leveson to pass judgement on.

The focus, which may prove to be a painful one, has been, in part, on News Corporation's links to the Culture Secretary, Jeremy Hunt. More than once, Mr Murdoch insisted the Tory Cabinet minister wasn't his company's "cheerleader".

It's a phrase that'll resonate; it's an issue which the politician's opponents may choose to exploit.

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Mr Murdoch said that it took just seven minutes for the story to be checked with Culture Secretary Jeremy Hunt or one of his advisors.

He described a meeting with David Cameron, then Leader of the Opposition, on 10 September 2009 at the George club to discuss the "Sun's proposed endorsement" of the Conservatives for the upcoming general election.

Mr Murdoch said he discussed the BSkyB bid with Mr Cameron at the home of former News International chief executive Rebekah Brooks on 23 December 2010 - seven months after he became prime minister.

The dinner was held two days after Business Secretary Vince Cable was stripped of his responsibility for overseeing the BSkyB bid, after he had been secretly recorded saying he had "declared war" on Rupert Murdoch.

Mr Murdoch said he spoke briefly to the prime minister about the removal of Mr Cable, saying it was a "tiny conversation" and not a discussion.

He denied the purpose of the meetings with Mr Cameron was partly to find out where he stood on issues which would directly affect Mr Murdoch's companies, such as TV and press regulation.

He said: "I might want to know but the purpose of these meetings wasn't necessarily to find out, they were discussions were on a broad range of subjects, from foreign policy to other things."

He added he had had been to Chancellor George Osborne's grace-and-favour home Dorneywood once and had had one discussion with Mr Osborne about the BSkyB bid.

The inquiry also considered emails by Frederic Michel, News Corp head of public affairs.

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One referred to a call James Murdoch made to Vince Cable on the day of BSkyB bid, saying it went well and "we should have recorded him".

Another said that Mr Michel had a note from Mr Hunt's adviser, Adam Smith, that "the UK government would be supportive throughout the process".

The inquiry discussed an internal News Corp note from Mr Michel in which he said Mr Hunt would be supportive of BSkyB bid.

On 15 November, 2011, Mr Michel told Mr Murdoch that Mr Hunt was "very frustrated" that it would be counter-productive for him to meet Mr Murdoch.

Mr Murdoch used an expletive in one email when when told it would be wrong to meet with Mr Hunt and he told the inquiry he had been "displeased".

The former News International chairman said he would not expect News Corp's interests to be helped by the company's support for politicians.

"That is absolutely not the case and the question of support of an individual newspaper for politicians one way or another is not something that I would ever link to a commercial transaction like this," he said.

"Nor would I expect that political support one way or another ever to translate into a minister behaving in an appropriate way, ever.

"I simply would not do business that way."

Mr Murdoch's father, News Corporation head Rupert Murdoch, will appear before the inquiry on Wednesday and Thursday.

It is the first time either of them have appeared in front of the Leveson Inquiry.

James Murdoch resigned from News International in February, having been appointed to run the company in 2007.

The inquiry is also tackling the Murdochs' awareness of allegations that the practice of illegally intercepting voicemails went beyond News of the World royal reporter Clive Goodman, who was jailed in 2007.

Last year James Murdoch told MPs he had no prior knowledge of the scale of wrongdoing on the newspapers he controlled.

On Tuesday Mr Murdoch told the inquiry that he "stood by" testimony he never saw an email revealing phone hacking went beyond a single reporter.

He said he had thought hacking a "thing in the past" when he took over his father's UK newspaper operations in 2007.

The Leveson Inquiry is now turning its attention to the relationship between the press and prominent politicians as part of its examination of the ethics, culture and practices of the UK's newspapers.

The inquiry, led by Lord Justice Leveson, was set up after outrage following allegations that the now-closed News of the World hacked into the voicemail of murdered schoolgirl Milly Dowler.



Source & Image : BBC

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