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

Jeremy Hunt and Tony Blair to appear at Leveson Inquiry

Next week is set to be one of the most gripping yet in the Leveson Inquiry into press standards.

Monday has been reserved for former prime minister Tony Blair, who will likely be questioned about his close relationship with media mogul Rupert Murdoch, whose tabloid the Sun famously switched its long-standing Conservative allegiance to back the Labour party ahead of the 1997 general election.

Business secretary Vince Cable is scheduled to appear on Wednesday. It is likely he will be quizzed about News Corp’s £8bn bid for the takeover of satellite broadcaster BSkyB, particularly his admission that he had “declared war” on the Murdoch-owned company, which led to his being stripped of responsibility for the bid.

But the highlight will surely come from Thursday’s sole witness, culture secretary Jeremy Hunt, who is fighting for his political life after the revelation of a November 2010 memo he sent to David Cameron in support of News Corp’s £8bn bid for control of the satellite broadcaster one month before he was handed the task of adjudicating the bid.

In the memo Hunt emphasised to Cameron that it would be “totally wrong to cave in” to the bid’s opponents, and that Cable’s decision to refer the bid to regulator Ofcom could leave the government “on the wrong side of media policy”.

The memo has further weakened Hunt’s grip on power, already in doubt after last month’s revelations that his department gave News Corp advance feedback of the government’s scrutiny of the BSkyB bid. Evidence shown to the Inquiry yesterday during News Corp lobbyist Frédéric Michel‘s appearance showed over than 1000 text messages had been sent between the corporation and Hunt’s department, along with 191 phone calls and 158 emails.

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, while David Cameron said today he does not regret handing the bid to Hunt, stressing he acted “impartially”.

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

Andy Coulson gives evidence at Leveson Inquiry

Anyone looking for a lesson in deadpan testimony could have done worse than tune into Andy Coulson’s appearance at the Leveson Inquiry today.

It was an unedifying session with the former News of the World editor and ex-Number 10 communications chief, who was protected from having to discuss the phone hacking scandal due to his July 2011 arrest and subsequent bail as part of Operation Weeting.

Lord Justice Leveson and Robert Jay QC trod particularly heavily on his meeting with George Osborne in March 2007 to discuss the communications role with the Conservative party. “Did it not occur to you — why are they asking me?” Jay asked.

Coulson, who said he entered into the conversation with a “degree of reluctance” and that he “wasn’t thinking about politics at all”, reiterated that he had been in the newspaper industry for a long time, running campaigns and managing a team. Given the “electoral mountain” the party had to climb, these were seemingly useful credentials.

“The conversation was very much, ‘What do we need to do to get elected?'” Coulson said, clarifying that his role was to build relationships across media (he stressed more than once the “fundamental” role of television in explaining policy).

Pressing him further over his News International background, Coulson said his time at the media organisation might have been “considered useful” by the Tory party when considering him for the position, but “was not specifically discussed as being an advantage.” He also any refuted any suggestion that former NI chief executive Rebekah Brooks — due to give evidence tomorrow — had any influence in his recruitment.

Coulson was keen to stress that contact between the party and the media was above board. In his witness statement he wrote that “there was no quid pro quo” between them and NI or any other media organisation.

“I would certainly have taken every opportunity, to the point of becoming a bore, to sing the praises of David Cameron and the Conservative Party and to encourage them to support us. That was my job,” Coulson wrote.

He conceded that he was “not minded to disagree” with David Cameron that the relationships between some of the media and the government had become too cosy. Yet he warned Leveson against erecting more barriers, arguing that the public was already disengaging with politics and further restrictions would exacerbate “what is already a difficult process.”

Coulson ended his terse but lengthy afternoon session by noting the Inquiry has suggested that “a friendship is always based on some ulterior motive”. On the contrary, Leveson responded, arguing that the key was to maintain clarity in relationships.

The Inquiry continues tomorrow.

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