Hunt: News of the World closure forced me to re-evaluate BSkyB bid

Culture secretary Jeremy Hunt today told the Leveson Inquiry that the closure of the News of the World in the midst of the phone-hacking scandal had made him re-evaluate parent company News Corp’s bid for BSkyB.

Mr Hunt admitted that he had previously been in favour of the Murdoch takeover, but claimed he had been able to put personal bias aside when handed the “quasi-judicial” role of adjudicating on the bid, saying: “When I took charge of bid, my job was to ensure our democracy was safe.”

Addressing the resignation of his special adviser Adam Smith, Hunt blamed the “inappropriately” intimate language used by Smith on the volume of communication was subjected to by Murdoch lobbyist Frédéric Michel. However, he insisted Smith was “repeating stuff News International would already have known was my thinking”.

When asked about his views on the future of press regulation, Hunt said he would not wish to endanger free expression, but suggested that a future regulator may need to include digital and on-demand platforms as well as traditional publishing.

Hunt had been battling to save his political career following the revelation of close contact between his department and News Corp during the time of the BSkyB bid, leading to Smith’s resignation and pressure from Labour that the culture secretary had not been the “impartial arbiter” he was required to be.

Yet shortly after his appearance at the Inquiry, Downing Street announced David Cameron was satisfied Hunt had acted “properly” throughout the bid, and that he would not order an investigation into whether Hunt breached the ministerial code.

The Inquiry continues on Monday 11 June.

UPDATE 01/06: Labour said this morning it will call a vote in the House of Commons over Hunt’s conduct.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson

Leveson Inquiry reveals Jeremy Hunt congratulated James Murdoch on BSkyB progress

Jeremy Hunt texted George Osborne shortly before he was handed control of News Corp’s £8 billion bid for full control of BSkyB, telling the chancellor he was “seriously worried” the government would “screw up” the bid.

In evidence disclosed to the Leveson Inquiry this morning, it was also revealed that the embattled culture secretary texted James Murdoch on the same day, congratulating him for receiving approval from the European Commission on the company’s bid.

This text message was sent just hours before the BBC revealed that business secretary Vince Cable — at that point in charge of adjudicating the bid — had told undercover Telegraph reporters he had “declared war” on News Corp boss Rupert Murdoch, remarks that were seen as proof of bias. Cable was later stripped of his responsibility, which was passed over to Hunt and announced by Downing Street at around 6pm on 21 December 2010.

At 12:57pm on 21 December, Hunt texted James Murdoch: “Great and congrats on Brussels. Just Ofcom to go”, shortly after the European Commission’s approval of the bid.

At 2:30pm the BBC published Cable’s comments, which Hunt said were discussed in a phone call with James Murdoch at 4pm.

Eight minutes later Hunt texted Osborne, noting he was “seriously worried we are going to screw this up” regarding the bid. In a second message to the chancellor, he noted that Murdoch was accusing Cable of “acute bias” over the bid.

Osborne later texted Hunt: “I hope you like our solution”, shortly before Downing Street’s announcement that Hunt had been given charge for the bid.

Such revelatory messages place further pressure on Leveson to call the chancellor to give evidence before the Inquiry.

Elsewhere in an intense morning of evidence, Hunt defended his handling of the bid, saying he was .”sympathetic” to it rather than “supportive” of it”, and repeated his defence that he did not feel it presented a “major plurality” issue.

Hunt confirmed he received legal advice in November 2010 urging him that it would be “unwise” to intervene. Yet, explaining a memo he sent to David Cameron in the same month, in which he told the PM that it would be “totally wrong to cave in” to the bid’s opponents, Hunt said he had concerns about a situation “where we had a significant merger in my sector” that was encountering obstacles, adding that he sought to be “absolutely proper” in his approach.

“I had an absolute duty to be across the most important issue in that industry,” Hunt said.

He also defended as “appropriate” his 16 November phone call with James Murdoch, despite having received legal advice to avoid becoming involved in News Corp’s bid. Hunt told the Inquiry he “heard what was on his [Murdoch’s] mind.”

“I probably gave him a sympathetic hearing but I probably said I couldn’t get involved in that decision because I had taken legal advice that I couldn’t,” Hunt said.

A meeting between the two was cancelled the day before, following the legal advice, with Hunt explaining he did not see the telephone call as a replacement. “My interpretation of the advice was that I should not involve myself in a quasi-judicial process that’s being run by another secretary of state [Cable].”

Discussing the high level of contact revealed by the Inquiry last month between Hunt’s former adviser Adam Smith and News Corp lobbyist Fred Michel, Hunt said his department was not prepared for the “barrage” of messages from Michel.

“I doubt there’s a minister who worked more closely with a special adviser than I worked with Adam Smith,” Hunt said, explaining that Smith, who resigned in the wake of the revelations, was aware of his views but this did not mean he spoke for him.

He added that Smith was never given instructions on how to deal with News Corp. He repeatedly referred to the adviser as an “official point of contact” to answer questions on the bid process. He rejected counsel Robert Jay QC’s suggestion that the Michel-Smith contact — which included over 1,000 text messages over the course of the bid — was an “extra layer”.

The Labour party has since upped the volume on its calls for Hunt to resign, arguing he was not the “impartial arbiter” he was required to be.

Hunt has maintained he acted properly and within the ministerial code. David Cameron said last week he did not regret handing the bid to Hunt, stressing he acted “impartially”, but has said he will take action if evidence to the Inquiry suggests Hunt breached the code.

The Inquiry continues with further evidence from Hunt this afternoon.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson