Mogul’s piece of humble pie

Rupert Murdoch’s grilling has a nation transfixed, Karen Kissane reports from London.

It is not often Rupert Murdoch is backed into a corner, but it happened this week at the Leveson inquiry into press standards.
He was being questioned about a story in the News of the World, the Sunday tabloid he closed last year over the phone-hacking scandal. The then-formula one chief Max Mosley once sued the paper over an article that claimed he had taken part in a Nazi-themed orgy. Mosley contended that the orgy had no Nazi theme. In 2008 the High Court ruled he was right and awarded him damages.
Murdoch was questioned about a related issue, the paper’s posting on its website of a video of the sexual encounter. In his judgment of the case, Justice Eady wrote that the newspaper had offered to pixilate the face of one of the women in the video, and to pay her money, if she would give an interview about the incident. She was told that if she refused, her privacy would not be protected. Justice Eady said this amounted to blackmail.
Did Murdoch think his journalists had committed blackmail?
Murdoch replied, “A journalist doing a favour for someone in return for a favour back is pretty much everyday practice.”
Justice Brian Leveson pressed him, saying he found it disturbing that a woman whose actions did not touch on the public interest would be treated that way.
Murdoch insisted, “It’s a common thing in life, not just in journalism, for people to say, ‘You scratch my back and I will scratch your back … “‘
Leveson asked him to read the Mosley judgment and to make a submission about his view on the blackmail claim. Murdoch agreed.
And then, to double his trouble, lead counsel Robert Jay, QC, took the opening to ask Murdoch whether back-scratching was a part of his dealings with politicians. But on this issue of political influence Murdoch was adamant that his hands were clean, a stance he upheld all through his day and a half of questioning: “I don’t ask any politician to scratch my back.” He had never asked a prime minister for anything, he maintained.
Jay put it to him that he would never have been so “cack-handed” as to ask directly for anything; that perhaps politicians worked out what he wanted and gave it to him.
“Whether Rupert ever asked for anything or got anything is only one question,” the media analyst Steve Hewlett later told the BBC. He said Jay did “out” Murdoch on a number of issues: among them, influencing Tony Blair over the euro and buying The Times and The Sunday Times without the sale being referred to Britain’s Competition Commission.
“Once politicians believe he is essential to electability, and that’s been the case since [prime minister Margaret] Thatcher, the process is corrupted,” Hewlett said. “It’s not only what did they do in return but what didn’t they do for fear of Rupert Murdoch and his newspapers.”
Hewlett argued that the issue was not Murdoch lobbying for his commercial interests, or allowing his political interests to shape the content of his newspapers; all proprietors did that. “The problem was that he was 40 per cent of the market and way, way over-mighty. There wasn’t anything of significance that didn’t involve, ‘What did Rupert make of this?’ … for the last 30 years.”
But the appearances of James and Rupert Murdoch this week are about much more than an analysis of where the British media have gone wrong. This was the second time that Murdoch, one of the world’s richest and most powerful men, agreed to be publicly interrogated. The first time was when he appeared last year before a committee of British MPs over phone-hacking.
The Leveson inquiry asked him about phone-hacking, too, but its main focus was his relationships with politicians. He would have agreed to appear at least partly because it was in the interests of his company, News Corp, that he eat this particular humble pie with a semblance of good grace.
Because underneath all the claims and counter-claims about hacking and bribery, cover-ups and failures in corporate governance, simmers a potentially deadly question: are the Murdochs and their companies fit and proper to be holding the positions they do?
The answer to this could prove expensive, on both sides of the Atlantic.
The same day Rupert Murdoch gave evidence, news broke that Britain’s media regulator, Ofcom, had asked News Group newspapers for more documents disclosed in the civil cases related to phone-hacking. This was the first confirmation that the malpractices at News of the World were important to Ofcom’s investigation into whether BSkyB is fit and proper to hold a broadcasting licence.
Worst-case scenario for the Murdochs: News Corp could be forced to reduce its 39 per cent share in BSkyB so that it would no longer be seen as having a material influence over the broadcaster.
Ofcom might also be watching with interest the 46 arrests from the two police investigations related to News-related scandals (one into phone-hacking and one into bribery of officials), as well as the work of the parliamentary select committee on the media, which is due to release its report into the phone-hacking scandal next week.
The British scandals are reverberating in the US, too. Last year, the FBI launched an investigation into News Corp after a report that employees might have attempted to hack phone conversations and voicemails of survivors of the September 11 attacks.
Separately, US authorities are considering action against News Corp under the Foreign Corrupt Practices Act, legislation that allows prosecution of US firms which might have bribed foreign officials. This would relate to the claims by British police that The Sun newspaper had “a culture of illegal payments” to “a network of corrupted officials” – including police.
Worst-case scenario for the Murdochs: a US court case, with a guilty verdict leading to hundreds of millions of dollars in fines.
James Murdoch has claimed he knew nothing of the extent of the phone-hacking scandal at the time the company denied it went beyond a single reporter. This week, Rupert Murdoch admitted there had been a cover-up but pointed the finger at an editor, believed to be Colin Myler, and a “smart lawyer”, believed to be News International’s former head of legal affairs, Tom Crone.
A furious Crone denied this charge as a “shameful lie”. He pointed out it was “perhaps no coincidence” that the two people Murdoch named as involved in a cover-up also happened to be the same two people who had said his son’s evidence to the parliamentary select committee last year was inaccurate.
Crone and Myler told the committee they had warned James of evidence that hacking was widespread, and he had understood what it meant. James is adamant he was not told.
Meanwhile, Britain is transfixed by the political fallout from this week’s hearings. During James’s evidence it was revealed the special adviser to the Culture Secretary, Jeremy Hunt, kept the Murdochs briefed daily on Hunt’s thinking about last year’s News Corp bid for a full takeover of BSkyB. This continued during the months Hunt was meant to be acting impartially, in a quasi-judicial role, supervising the process.
The special adviser, Adam Smith, has now walked the plank, apologising for having “gone too far” in briefing News Corp, but Labour is baying for the minister’s blood.
The Opposition Leader, Ed Miliband, said the idea Smith had acted as a “lone wolf” beggared belief. The phone-hacking Hydra continues to grow more heads.

First published in The Sydney Morning Herald.

Murdoch admits hacking cover-up

LONDON

MEDIA magnate Rupert Murdoch last night admitted there had been a “cover-up” over phone hacking at News International, that he had failed, and that he deeply regretted it.
Mr Murdoch said he was “misinformed and shielded” from what was going on at News of the World: “I do blame one or two people for that, who perhaps I shouldn’t name, for all I know they may be arrested.
“There is no question in my mind, maybe even the editor, but certainly beyond that someone took charge of a cover-up which we were victim to, and I regret [that].”
Asked where the “culture of cover-up” had come from, Mr Murdoch said, “I think from within the News of the World, there were one or two very strong characters there who I think had been there many, many, many years and were friends of the journalists, or the person I’m thinking of was a friend of the journalists and a drinking pal and a clever lawyer, and forbade them . . . this person forbade people to go and report to [chief executive Rebekah] Brooks or to [my son] James.”
He said there was no attempt at cover-up at his level, or for several levels below him.
“That’s not to excuse it on our behalf at all. I take it extremely seriously that that situation had arisen.”
He said, “I also have to say that I failed, and I’m sorry about it.”
He said he was guilty of not having paid enough attention to News of the World all the time he had owned it because he was more interested in the excitement of building a new newspaper and in the problems of The Times and The Sunday Times.
“All I can do is apologise to a lot of people including all the innocent people at the News of the World who have lost their jobs as a result of that.”
He said he had spent hundreds of millions of dollars and hired outside law firms to investigate the phone-hacking scandal but that he should have taken over the matter himself in 2007, when the royal reporter of News of the World, Clive Goodman, wrote a letter saying others were involved. “I should have gone in and thrown all the damn lawyers out of the place and seen Mr Goodman one on one — he had been an employee a long time — and cross-examined him myself and made up my mind whether he was telling the truth.
“If I had reached the conclusion he was telling the truth, I would have torn the place apart and we wouldn’t be here today.”
He said “the business of” News of the World “is a serious blot on my reputation”. He killed the paper because there had been a nationwide response to the news that the paper had hacked the phone of a murdered schoolgirl and “you could feel the blast coming in the window”.
Mr Murdoch said he thought he had never met Jeremy Hunt, the government minister now under fire following leaks from his office while he was arbitrating the Murdoch bid for satellite broadcaster BSkyB.
“I don’t believe I ever met him. I am not sure whether he came to a dinner once a couple of years ago, but no, I certainly didn’t discuss [the bid with him].”

Murdoch admits to phone-hacking ‘cover-up’

LONDON

THE media magnate Rupert Murdoch last night admitted there had been a “cover-up” over phone hacking at News International, that he had failed and that it was a matter of deep regret.
Mr Murdoch said he was “misinformed and shielded” from what was going on at the News of the World: “I do blame one or two people for that, who perhaps I shouldn’t name, for all I know they may be arrested.
“There is no question in my mind, maybe even the editor but certainly beyond that, someone took charge of a cover-up which we were victim to and I regret [that].”
Asked where the “culture of cover-up” had come from, Mr Murdoch said:”I think from within the News of the World, there were one or two very strong characters there who I think had been there many, many, many years and were friends of the journalists, or the person I’m thinking of was a friend of the journalists and a drinking pal and a clever lawyer, and forbade them … this person forbade people to go and report to Mrs [Rebekah] Brooks [chief executive of News International] or to James [Murdoch].”
“That’s not to excuse it on our behalf at all. I take it extremely seriously that that situation had arisen … I also have to say that I failed, and I’m sorry about it.”
Mr Murdoch said he was guilty of not having paid enough attention to the News of the World all the time he had owned it. “All I can do is apologise to a lot of people including all the innocent people at the News of the World who have lost their jobs as a result of that.”
Mr Murdoch said he thought he had never met Jeremy Hunt, the minister under fire following leaks from his office while he was arbitrating the Murdoch bid for the satellite broadcaster BSkyB.
“I don’t believe I ever met him. I am not sure whether he came to a dinner once a couple of years ago, but no, I certainly didn’t discuss [the bid with him].” He said he did not discuss with his son, James, whether Mr Hunt would be favourable towards the bid.
Asked about the 163 pages of emails between Mr Hunt’s office and the office of Fred Michel, the public affairs adviser to News International, Mr Murdoch said he thought Mr Michel might have exaggerated.
Mr Murdoch said the company would have achieved the Sky takeover had it not been caught up in the phone-hacking scandal.
He stood by his previous evidence that the former prime minister Gordon Brown had “declared war” on his media empire when it switched its endorsement to the Conservatives and he appeared to be “unbalanced” at the time.
Mr Murdoch said he gave his evidence under oath, “and I stand by every word of it”.
Meanwhile, fallout continued from earlier evidence given by James Murdoch, whose testimony on Tuesday revealed News International had received detailed leaks from the office of the Secretary of State, Mr Hunt, while Mr Hunt was overseeing the Murdoch bid for BSkyB.
The Opposition Leader, Ed Miliband, continued to ramp up the pressure on Mr Hunt, refusing to accept the resignation of his special adviser, Adam Smith, was enough. Mr Smith said he had “gone too far” when dealing with News International.
But Mr Miliband said the idea that Mr Smith had acted as a “lone wolf” beggared belief: “To believe Mr Hunt should stay in his job you have to believe that his special adviser was acting for six months with text messages and daily email exchanges … and that the secretary of state had no idea this was going on …
“I believe the reason Jeremy Hunt is being kept in his post is because [Prime Minister David] Cameron knows questions will move to him, his meetings with Mr Murdoch … what he said to James Murdoch and Rebekah Brooks about the bid News Corp was making for BSkyB.”First published in the Sydney Morning Herald.

Murdoch denies seeking help from politicians he met

LONDON

“I HAVE never asked a prime minister for anything,” Rupert Murdoch, the chairman and chief executive of News Corporation, told the Leveson inquiry into press standards last night.
Questioned about a lunch he had had with the former British prime minister Margaret Thatcher, he denied its purpose had been to show her he was “on the same page” as her politically, or that the tacit understanding was that she would then help him with his bid to buy the Times newspapers.
“No, I didn’t expect any help from her, nor did I ask for anything,” Mr Murdoch said. He denied he had wanted the lunch partly because he was concerned the bid might be delayed if it were referred to the Monopolies and Mergers Commission: “That didn’t worry me in the least.”
After a pause he agreed he was “on the same page politically” as the then US president-elect Ronald Reagan and Mrs Thatcher.
But he denied the proposition by Robert Jay, QC, that the purpose of the lunch was to demonstrate “how very much you were ‘one of us’?” He said the purpose was to explain to Mrs Thatcher what was at stake in his bid for one of Britain’s iconic assets.
He strongly denied rumours that he had not forgiven the Prime Minister, David Cameron, for setting up the Leveson inquiry: “Untrue”.
He said he welcomed the inquiry and the opportunity to “put some myths to bed”.
Mr Murdoch was appearing in his first day of evidence before the inquiry, which is looking at the relationship between media proprietors and politicians.
He said of the power relationship between editors and proprietors: “Let’s face it – if an editor is sending a newspaper broke it is the responsibility of the proprietor to step in for the sake of the journalists, for the sake of everybody … and particularly his responsibility to his many thousands of shareholders.”
Meanwhile, Mr Cameron was continuing to resist demands to sack one of his ministers after evidence on Monday from Mr Murdoch’s son James about routine leaks from the government during News Corporation’s bid to take over the satellite broadcaster BSkyB.
The Opposition Leader, Ed Miliband, said the evidence showed the Culture Secretary, Jeremy Hunt, the final arbiter of whether the takeover should be allowed, had given “advice, guidance and privileged access” to News Corporation and acted “as a back channel for the Murdochs”.
Mr Hunt denies the claims, saying he behaved with complete integrity while overseeing the £8 billion proposal. It was for Mr Hunt to decide whether it should be referred to the Competition Commission, which the Murdochs were keen to avoid.
The inquiry had heard the leaks included information about a statement Mr Hunt was to make on how he wanted to negotiate with News Corporation. On January 24 last year, James Murdoch, then the chief executive of News International, received an email from an employee crowing that he had “managed to get some infos [sic] on the plans for tomorrow (although absolutely illegal!)” The email set out the timetable for Mr Hunt’s announcement and quoted from it.
This and other evidence related to extracts from 163 pages of emails James Murdoch had received from Fred Michel, News Corp’s director of public affairs for Europe, during the Sky bid. The emails detailed alleged communications with Mr Hunt, many of them through Mr Hunt’s adviser Adam Smith.
Last night Mr Smith stepped down from his role. He said in a statement: “I appreciate that my activities at times went too far.”
The emails indicated Mr Hunt was not independent and already supported the Murdoch bid. Mr Michel told Mr Murdoch that Mr Hunt “said we would get there in the end and shared our objectives” and that the minister wanted Mr Murdoch “to understand he needs to build some political cover on the process”.
Mr Hunt’s aides said Mr Michel had exaggerated the degree of contact he had with the minister’s office. They said evidence given to the inquiry was inaccurate and meetings and messages that had been claimed had never happened. Mr Hunt planned to ask Justice Leveson if he could appear before the inquiry to defend himself. Mr Cameron said Mr Hunt, who has been dubbed “the minister for Murdoch”, had his full confidence.
Mr Miliband demanded Mr Hunt’s resignation: “If he refuses to resign, the Prime Minister must show some leadership and fire him.”

First published in the Sydney Morning Herald.

Murdoch admits his paper backed Tony Blair for PM

LONDON

THE media magnate Rupert Murdoch last night agreed under questioning at the Leveson inquiry that his newspapers had endorsed Tony Blair’s bid to be prime minister after Mr Blair had assured him media regulation would not be onerous under a Labour government.
He agreed that The Sun had endorsed Mr Blair the day after an article was published in which Mr Blair took a euro sceptic view that chimed with Mr Murdoch’s dislike of the euro.
Robert Jay, QC, asked Mr Murdoch: “You had extracted as much as you could from Mr Blair in terms of policy promises. He had gone a considerable distance in your direction, you assumed he had gone as far as he was going to go and you endorsed him?”
“I think so,” Mr Murdoch said. “I don’t think this all followed in this way so logically, but yes.”
Mr Murdoch also agreed that he had told Mr Blair: “If our flirtation is ever consummated, Tony, I suspect we will end up making love like porcupines, very, very carefully.”
But Mr Murdoch denied a report that, while no deal was made about support from The Sun in return for Mr Murdoch’s media empire being left untouched, the two had an implicit understanding.
“That’s not true,” Mr Murdoch said. If there had been such an understanding, Mr Blair “certainly didn’t keep to it because he appointed [the media regulator] Ofcom with wide powers to interfere with us in every way.”
The Leveson inquiry into media ethics is examining the relationship between media proprietors and politicians.
Evidence on Tuesday from Mr Murdoch’s son James suggested that the Culture Minister, Jeremy Hunt, had leaked information to James Murdoch in 2010-11 during the News bid to take over the satellite broadcaster BSkyB.
Last night Mr Hunt was resisting demands that he resign over apparent breaches of the ministerial code, but his adviser, Adam Smith, who had been involved in the unofficial email exchanges with News, did step down. He said in a statement: “I appreciate that my activities at times went too far.”
Lord Justice Leveson told the inquiry when it opened last night that it was important the email exchange not be judged until all sides had been heard.
In his evidence Rupert Murdoch, who is the chairman and chief executive of News Corp, became testy about what he saw as “sinister inferences” in the questioning about his relationships with politicians.
He beat his hands on a bench to emphasise his words as he said: “I, in 10 years he was in power, never asked Mr Blair for anything, nor did I receive any favours.”
Mr Jay said the relationship between a sophisticated politician and the proprietor would be rather more subtle than that. Mr Murdoch said: “I’m afraid I don’t have much subtlety about me.”
Mr Murdoch denied he was the power behind the throne of the Conservative prime minister Margaret Thatcher but agreed that he was politically sympathetic to her and to the former US president Ronald Reagan.
Questioned about a lunch he had had with the then British prime minister in 1981, he denied its purpose had been to show Mrs Thatcher he was “on the same page” as her politically, or that the tacit understanding was that she would then help him with his bid to buy the Times newspapers.
“No, I didn’t expect any help from her, nor did I ask for anything,” Mr Murdoch said. He denied he had wanted the lunch because he was concerned the bid might be delayed if it were referred to the Monopolies and Mergers Commission: “That didn’t worry me in the least.”
Mr Murdoch was asked about a report that he had told an editor on The Sunday Times : “We owe Thatcher a lot as a company. Don’t go overboard in your attacks on her.”
Mr Murdoch said he had no memory of the conversation. Did he say it? “I don’t think so.”
Mr Murdoch said he had strongly disapproved of a Sun front page in 1992 that claimed credit for John Major’s election win with the headline: “It was the Sun wot won it!” He said he gave the editor “a hell of a bollocking” over it.
Mr Jay asked whether he disliked it because it suggested newspapers were powerful and anti-democratic. “Anti-democratic is too strong a word,” Mr Murdoch said. “It was tasteless and wrong for us. We don’t have that sort of power.”

First published in the Sydney Morning Herald.

Rupert’s revenge: Ex-PM denies ‘war’ cry as the hits keep coming at Leveson inquiry

Former British prime minister Gordon Brown last night strongly denied Rupert Murdoch’s claims that he had once declared war on the media empire.

London

Former British prime minister Gordon Brown last night strongly denied Rupert Murdoch’s claims that he had once declared war on the media empire.In evidence to the Leveson inquiry, Mr Murdoch said Mr Brown had phoned him after the front page of The Sun newspaper published the headline “Labour’s Lost It”, on a day in 2009 when Mr Brown was due to make an important speech.Mr Murdoch said he told Mr Brown his newspapers would support a change of government at the upcoming election and that Mr Brown replied, “Well, your company has declared war on my government and we have no alternative but to make war on your company.”Mr Murdoch told the inquiry he said, “‘I’m sorry about that, Gordon. Thank you for calling.’ End of subject. I don’t think he was in a very balanced state of mind. I don’t know.”But Mr Brown released a statement saying the two men had not spoken and that Mr Murdoch “was wholly wrong? The Sun declared for the Conservatives on 30 September 2009. I did not phone Mr Murdoch or meet him, or write to him about his decision.”I hope Mr Murdoch will have the good grace to correct his account.”As Mr Murdoch, chairman and chief executive of News Corporation, appeared for the first time before the inquiry into press standards and the relationships between proprietors and politicians, the shockwaves intensified from the hearing on Tuesday. Then, his son James discussed emails that appeared to show News International had routinely been leaked information from the office of Culture Minister Jeremy Hunt while Mr Hunt was overseeing the company’s bid to take over satellite broadcaster BSkyB.In developments last night:- Mr Hunt’s special adviser stepped down, admitting he had gone too far in his dealings with News International.- Documents revealed Mr Hunt visited News Corp in the US while the company was deciding whether to bid for BSkyB.- Scottish First Minister Alex Salmond admitted he planned to lobby Mr Hunt to back the Murdoch bid only days after winning the support of the Scottish Sun for his election campaign.Rupert Murdoch told the inquiry that after the alleged declaration of war, Mr Brown had gone on to make a “totally outrageous” claim “which he had to know was wrong” that The Sun had hacked the medical records of his sick child. Mr Murdoch said Mrs Brown had been phoned before the story was published and told that the informant was a fellow parent at the same hospital.He said he and Prime Minister David Cameron had not discussed Mr Cameron’s hiring of former News of the World editor Andy Coulson, later arrested over phone hacking, as his director of communications in 2007. Mr Murdoch said the appointment had left him “just as surprised as everybody else”.He agreed that Mr Cameron had dropped in to visit him on a yacht at the Greek island of Santorini in 2008 – he could not recall whether it was his own or his daughter’s yacht – but said Mr Cameron had wanted to meet him, not the other way around: “Politicians go out of their way to impress people in the press and I don’t remember discussing any heavy political things with him at all. They may have been some issues discussed passingly; it was not a long meeting.”Mr Murdoch said he had never sought to use political influence for commercial advantage and had always decided editorial views on the basis of issues and candidates.  It was a “complete myth” that his company ever had preferential treatment from politicians because of the power of his newspapers, he said.If he were driven purely by business priorities he would always have told his newspapers to support the Conservatives because they were always friendlier to big business, but he said it was also in his newspapers’ interests to attract and hold readers.He denied being a major power behind the throne for former prime minister Margaret Thatcher and said of Tony Blair, “In the 10 years he was in power I never asked Mr Blair for anything.”Mr Murdoch was also asked about reports of comments made about him by former Australian Prime Minister Paul Keating. “‘You can do deals with him without ever saying a deal is done?”‘ asked Robert Jay, QC.Mr Murdoch denied this: “I don’t understand what you’re saying but it isn’t true. Mr Keating is given to extravagant language.”Mr Jay asked about another quote: “‘The only thing he cares about is business and the only language he respects is strength’? Is that fair?””Certainly not,” Mr Murdoch said. Meanwhile, Labour continued to demand the resignation of Culture Secretary Jeremy Hunt. When Mr Hunt’s special adviser Adam Smith resigned, he said in a statement that he had acted without the authority of the minister and that he had allowed the impression to be created of too close a relationship between News Corp and the Department of Culture, Media and Sport.He said, “While it was part of my role to keep News Corporation informed through the BSkyB bid process, the content and extent of my contact was done without authorisation from [Mr Hunt]? I appreciate that my activities at times went too far.”But he insisted, as did Mr Hunt, that the process had been conducted scrupulously fairly.Mr Hunt’s position was further endangered by revelations in official documents that he had spent five days in the US in 2009 holding meetings with News Corp at the same time Rupert and James Murdoch were first deciding whether to bid for Sky.Almost immediately after Mr Hunt’s trip, James Murdoch visited Mr Cameron in London and privately told him that News Corp had agreed to switch support to the Conservatives in the coming election. Mr Hunt then became culture secretary in the victorious Tory Government. In yet another response to James Murdoch’s day of evidence, Scottish First Minister Alex Salmond admitted he planned to lobby Mr Hunt in favour of the Murdoch bid for BSkyB only days after the Scottish Sun promised it would back his election campaign.A spokesman for Mr Salmond confirmed he had booked a call with Mr Hunt _ which did not take place _ two days after Mr Salmond had dinner with the editor of the Scottish Sun.Last year the paper backed Mr Salmond’s Scottish National Party for the first time in 20 years and it won an unprecedented landslide.

First published in the Sydney Morning Herald.

Rupert Murdoch denies receiving political favours

LONDON

”I HAVE never asked a prime minister for anything,” Rupert Murdoch, the chairman and chief executive of News Corporation, told the Leveson inquiry into press standards last night.THE media magnate Rupert Murdoch last night agreed under questioning at the Leveson inquiry that his newspapers had endorsed Tony Blair’s bid to be prime minister after the politician assured him media regulation would not be onerous under a Labour government.

He agreed that The Sun had endorsed Mr Blair the day after an article was published in which Mr Blair took a euro sceptic view that chimed with Mr Murdoch’s dislike of the euro.

Robert Jay, QC, asked Mr Murdoch: “You had extracted as much as you could from Mr Blair in terms of policy promises. He had gone a considerable distance in your direction, you assumed he had gone as far as he was going to go and you endorsed him?”

“I think so,” Mr Murdoch said. “I don’t think this all followed in this way so logically, but yes.”

Mr Murdoch also agreed that he had told Mr Blair: ”If our flirtation is ever consummated, Tony, I suspect we will end up making love like porcupines, very, very carefully.”

But Mr Murdoch denied a report that, while no deal was made about support from The Sun in return for Mr Murdoch’s media empire being left untouched, the two had an implicit understanding.

“That’s not true,” Mr Murdoch said. If there had been such an understanding, Mr Blair “certainly didn’t keep to it because he appointed [the media regulator] Ofcom with wide powers to interfere with us in every way.”

The Leveson inquiry into media ethics is examining the relationship between media proprietors and politicians.

Evidence on Tuesday from Mr Murdoch’s son James suggested that the Culture Minister, Jeremy Hunt, had leaked information to News Corporation in 2010-11 during the company’s bid to take over the satellite broadcaster BSkyB.

Last night Mr Hunt was resisting demands that he resign over apparent breaches of the ministerial code, but his adviser, Adam Smith, who had been involved in the unofficial email exchanges with News Corporation, did step down.

Lord Justice Leveson told the inquiry when it opened last night that it was important the email exchange not be judged until all sides had been heard.

In his evidence Rupert Murdoch, who is the chairman and chief executive of News Corporation, became testy about what

he saw as “sinister inferences” in the questioning about his relationships with politicians.

He beat his hands on a bench to emphasise his words as he said: ”I, in 10 years he was in power, never asked Mr Blair for anything, nor did I receive any favours.”

Mr Jay said the relationship between a sophisticated politician and the proprietor would be rather more subtle than that. Mr Murdoch said: ”I’m afraid I don’t have much subtlety about me.”

Mr Murdoch denied he was the power behind the throne of the Conservative prime minister Margaret Thatcher but agreed he was politically sympathetic to her and to the former US president Ronald Reagan.

Questioned about a lunch he had with the then British prime minister in 1981, he denied its purpose had been to show Mrs Thatcher he was ”on the same page” as her politically, or that the tacit understanding was that she would then help him with his bid to buy the Times newspapers.

”No, I didn’t expect any help from her, nor did I ask for anything,” Mr Murdoch said. He was asked about a report that he had told an editor on The Sunday Times : ”We owe Thatcher a lot as a company. Don’t go overboard in your attacks on her.”

Mr Murdoch said he had no memory of the conversation.

Mr Murdoch said he had strongly disapproved of a Sun front page in 1992 that claimed credit for John Major’s election win with the headline: “It was the Sun wot won it!”

Mr Murdoch said: ”It was tasteless and wrong for us. We don’t have that sort of power.”

Mr Murdoch also told the inquiry that then-prime minister Gordon Brown was ”not in a balanced state of mind” when he attacked the mogul over the phone after learning that The Sun would support a change in government.

”He [Brown] said, and I must stress no voices were raised, he said: ‘Well, your company has declared war on my government and we have no alternative to make war on your company.’ I said ‘I’m sorry about that Gordon, thank you for calling,’ and that was that.”

First published in the Sydney Morning Herald.

Ex-PM denies ‘war’ cry as the hits keep coming at Leveson inquiry

LONDON

Former British prime minister Gordon Brown last night strongly denied Rupert Murdoch’s claims that he had once declared war on the media empire.In evidence to the Leveson inquiry, Mr Murdoch said Mr Brown had phoned him after the front page of The Sun newspaper published the headline “Labour’s Lost It”, on a day in 2009 when Mr Brown was due to make an important speech.

Mr Murdoch said he told Mr Brown his newspapers would support a change of government at the upcoming election and that Mr Brown replied, “Well, your company has declared war on my government and we have no alternative but to make war on your company.”

Mr Murdoch told the inquiry he said, “‘I’m sorry about that, Gordon. Thank you for calling.’ End of subject. I don’t think he was in a very balanced state of mind. I don’t know.”

But Mr Brown released a statement saying the two men had not spoken and that Mr Murdoch “was wholly wrong? The Sun declared for the Conservatives on 30 September 2009. I did not phone Mr Murdoch or meet him, or write to him about his decision.”I hope Mr Murdoch will have the good grace to correct his account.”As Mr Murdoch, chairman and chief executive of News Corporation, appeared for the first time before the inquiry into press standards and the relationships between proprietors and politicians, the shockwaves intensified from the hearing on Tuesday. Then, his son James discussed emails that appeared to show News International had routinely been leaked information from the office of Culture Minister Jeremy Hunt while Mr Hunt was overseeing the company’s bid to take over satellite broadcaster BSkyB.

In developments last night:- Mr Hunt’s special adviser stepped down, admitting he had gone too far in his dealings with News International.- Documents revealed Mr Hunt visited News Corp in the US while the company was deciding whether to bid for BSkyB.- Scottish First Minister Alex Salmond admitted he planned to lobby Mr Hunt to back the Murdoch bid only days after winning the support of the Scottish Sun for his election campaign

.Rupert Murdoch told the inquiry that after the alleged declaration of war, Mr Brown had gone on to make a “totally outrageous” claim “which he had to know was wrong” that The Sun had hacked the medical records of his sick child.

Mr Murdoch said Mrs Brown had been phoned before the story was published and told that the informant was a fellow parent at the same hospital.

He said he and Prime Minister David Cameron had not discussed Mr Cameron’s hiring of former News of the World editor Andy Coulson, later arrested over phone hacking, as his director of communications in 2007. Mr Murdoch said the appointment had left him “just as surprised as everybody else”.

He agreed that Mr Cameron had dropped in to visit him on a yacht at the Greek island of Santorini in 2008 – he could not recall whether it was his own or his daughter’s yacht – but said Mr Cameron had wanted to meet him, not the other way around: “Politicians go out of their way to impress people in the press and I don’t remember discussing any heavy political things with him at all. They may have been some issues discussed passingly; it was not a long meeting.”

Mr Murdoch said he had never sought to use political influence for commercial advantage and had always decided editorial views on the basis of issues and candidates.  It was a “complete myth” that his company ever had preferential treatment from politicians because of the power of his newspapers, he said.If he were driven purely by business priorities he would always have told his newspapers to support the Conservatives because they were always friendlier to big business, but he said it was also in his newspapers’ interests to attract and hold readers.

He denied being a major power behind the throne for former prime minister Margaret Thatcher and said of Tony Blair, “In the 10 years he was in power I never asked Mr Blair for anything.

“Mr Murdoch was also asked about reports of comments made about him by former Australian Prime Minister Paul Keating. “‘You can do deals with him without ever saying a deal is done?”‘ asked Robert Jay, QC.

Mr Murdoch denied this: “I don’t understand what you’re saying but it isn’t true. Mr Keating is given to extravagant language.”Mr Jay asked about another quote: “‘The only thing he cares about is business and the only language he respects is strength’? Is that fair?”

“Certainly not,” Mr Murdoch said.

Meanwhile, Labour continued to demand the resignation of Culture Secretary Jeremy Hunt. When Mr Hunt’s special adviser Adam Smith resigned, he said in a statement that he had acted without the authority of the minister and that he had allowed the impression to be created of too close a relationship between News Corp and the Department of Culture, Media and Sport.

He said, “While it was part of my role to keep News Corporation informed through the BSkyB bid process, the content and extent of my contact was done without authorisation from [Mr Hunt]? I appreciate that my activities at times went too far.”But he insisted, as did Mr Hunt, that the process had been conducted scrupulously fairly.

Mr Hunt’s position was further endangered by revelations in official documents that he had spent five days in the US in 2009 holding meetings with News Corp at the same time Rupert and James Murdoch were first deciding whether to bid for Sky.

Almost immediately after Mr Hunt’s trip, James Murdoch visited Mr Cameron in London and privately told him that News Corp had agreed to switch support to the Conservatives in the coming election. Mr Hunt then became culture secretary in the victorious Tory Government.

In yet another response to James Murdoch’s day of evidence, Scottish First Minister Alex Salmond admitted he planned to lobby Mr Hunt in favour of the Murdoch bid for BSkyB only days after the Scottish Sun promised it would back his election campaign.

A spokesman for Mr Salmond confirmed he had booked a call with Mr Hunt _ which did not take place _ two days after Mr Salmond had dinner with the editor of the Scottish Sun.Last year the paper backed Mr Salmond’s Scottish National Party for the first time in 20 years and it won an unprecedented landslide.

First published in The Age.

Rupert Murdoch denies receiving political favours

LONDON

THE media magnate Rupert Murdoch last night agreed under questioning at the Leveson inquiry that his newspapers had endorsed Tony Blair’s bid to be prime minister after the politician assured him media regulation would not be onerous under a Labour government.
He agreed that The Sun had endorsed Mr Blair the day after an article was published in which Mr Blair took a euro sceptic view that chimed with Mr Murdoch’s dislike of the euro.
Robert Jay, QC, asked Mr Murdoch: “You had extracted as much as you could from Mr Blair in terms of policy promises. He had gone a considerable distance in your direction, you assumed he had gone as far as he was going to go and you endorsed him?”
“I think so,” Mr Murdoch said. “I don’t think this all followed in this way so logically, but yes.”
Mr Murdoch also agreed that he had told Mr Blair: “If our flirtation is ever consummated, Tony, I suspect we will end up making love like porcupines, very, very carefully.”
But Mr Murdoch denied a report that, while no deal was made about support from The Sun in return for Mr Murdoch’s media empire being left untouched, the two had an implicit understanding.
“That’s not true,” Mr Murdoch said. If there had been such an understanding, Mr Blair “certainly didn’t keep to it because he appointed [the media regulator] Ofcom with wide powers to interfere with us in every way.”
The Leveson inquiry into media ethics is examining the relationship between media proprietors and politicians.
Evidence on Tuesday from Mr Murdoch’s son James suggested that the Culture Minister, Jeremy Hunt, had leaked information to News Corporation in 2010-11 during the company’s bid to take over the satellite broadcaster BSkyB.
Last night Mr Hunt was resisting demands that he resign over apparent breaches of the ministerial code, but his adviser, Adam Smith, who had been involved in the unofficial email exchanges with News Corporation, did step down.
Lord Justice Leveson told the inquiry when it opened last night that it was important the email exchange not be judged until all sides had been heard.
In his evidence Rupert Murdoch, who is the chairman and chief executive of News Corporation, became testy about what he saw as “sinister inferences” in the questioning about his relationships with politicians.
He beat his hands on a bench to emphasise his words as he said: “I, in 10 years he was in power, never asked Mr Blair for anything, nor did I receive any favours.”
Mr Jay said the relationship between a sophisticated politician and the proprietor would be rather more subtle than that. Mr Murdoch said: “I’m afraid I don’t have much subtlety about me.”
Mr Murdoch denied he was the power behind the throne of the Conservative prime minister Margaret Thatcher but agreed he was politically sympathetic to her and to the former US president Ronald Reagan.
Questioned about a lunch he had with the then British prime minister in 1981, he denied its purpose had been to show Mrs Thatcher he was “on the same page” as her politically, or that the tacit understanding was that she would then help him with his bid to buy the Times newspapers.
“No, I didn’t expect any help from her, nor did I ask for anything,” Mr Murdoch said. He was asked about a report that he had told an editor on The Sunday Times : “We owe Thatcher a lot as a company. Don’t go overboard in your attacks on her.”
Mr Murdoch said he had no memory of the conversation.
Mr Murdoch said he had strongly disapproved of a Sun front page in 1992 that claimed credit for John Major’s election win with the headline: “It was the Sun wot won it!”
Mr Murdoch said: “It was tasteless and wrong for us. We don’t have that sort of power.”
Mr Murdoch also told the inquiry that then-prime minister Gordon Brown was “not in a balanced state of mind” when he attacked the mogul over the phone after learning that The Sun would support a change in government.
“He [Brown] said, and I must stress no voices were raised, he said: ‘Well, your company has declared war on my government and we have no alternative to make war on your company.’ I said ‘I’m sorry about that Gordon, thank you for calling,’ and that was that.”First published in the Sydney Morning Herald.

Murdoch admits his paper backed Tony Blair for PM

LONDON

THE media magnate Rupert Murdoch last night agreed under questioning at the Leveson inquiry that his newspapers had endorsed Tony Blair’s bid to be prime minister after Mr Blair had assured him media regulation would not be onerous under a Labour government.
He agreed that The Sun had endorsed Mr Blair the day after an article was published in which Mr Blair took a euro sceptic view that chimed with Mr Murdoch’s dislike of the euro.
Robert Jay, QC, asked Mr Murdoch: “You had extracted as much as you could from Mr Blair in terms of policy promises. He had gone a considerable distance in your direction, you assumed he had gone as far as he was going to go and you endorsed him?”
“I think so,” Mr Murdoch said. “I don’t think this all followed in this way so logically, but yes.”
Mr Murdoch also agreed that he had told Mr Blair: “If our flirtation is ever consummated, Tony, I suspect we will end up making love like porcupines, very, very carefully.”
But Mr Murdoch denied a report that, while no deal was made about support from The Sun in return for Mr Murdoch’s media empire being left untouched, the two had an implicit understanding.
“That’s not true,” Mr Murdoch said. If there had been such an understanding, Mr Blair “certainly didn’t keep to it because he appointed [the media regulator] Ofcom with wide powers to interfere with us in every way.”
The Leveson inquiry into media ethics is examining the relationship between media proprietors and politicians.
Evidence on Tuesday from Mr Murdoch’s son James suggested that the Culture Minister, Jeremy Hunt, had leaked information to James Murdoch in 2010-11 during the News bid to take over the satellite broadcaster BSkyB.
Last night Mr Hunt was resisting demands that he resign over apparent breaches of the ministerial code, but his adviser, Adam Smith, who had been involved in the unofficial email exchanges with News, did step down. He said in a statement: “I appreciate that my activities at times went too far.”
Lord Justice Leveson told the inquiry when it opened last night that it was important the email exchange not be judged until all sides had been heard.
In his evidence Rupert Murdoch, who is the chairman and chief executive of News Corp, became testy about what he saw as “sinister inferences” in the questioning about his relationships with politicians.
He beat his hands on a bench to emphasise his words as he said: “I, in 10 years he was in power, never asked Mr Blair for anything, nor did I receive any favours.”
Mr Jay said the relationship between a sophisticated politician and the proprietor would be rather more subtle than that. Mr Murdoch said: “I’m afraid I don’t have much subtlety about me.”
Mr Murdoch denied he was the power behind the throne of the Conservative prime minister Margaret Thatcher but agreed that he was politically sympathetic to her and to the former US president Ronald Reagan.
Questioned about a lunch he had had with the then British prime minister in 1981, he denied its purpose had been to show Mrs Thatcher he was “on the same page” as her politically, or that the tacit understanding was that she would then help him with his bid to buy the Times newspapers.
“No, I didn’t expect any help from her, nor did I ask for anything,” Mr Murdoch said. He denied he had wanted the lunch because he was concerned the bid might be delayed if it were referred to the Monopolies and Mergers Commission: “That didn’t worry me in the least.”
Mr Murdoch was asked about a report that he had told an editor on The Sunday Times : “We owe Thatcher a lot as a company. Don’t go overboard in your attacks on her.”
Mr Murdoch said he had no memory of the conversation. Did he say it? “I don’t think so.”
Mr Murdoch said he had strongly disapproved of a Sun front page in 1992 that claimed credit for John Major’s election win with the headline: “It was the Sun wot won it!” He said he gave the editor “a hell of a bollocking” over it.
Mr Jay asked whether he disliked it because it suggested newspapers were powerful and anti-democratic. “Anti-democratic is too strong a word,” Mr Murdoch said. “It was tasteless and wrong for us. We don’t have that sort of power.”First published in the Sydney Morning Herald.