Senior civil servant criticises Smith NewsCorp relationship

A senior civil servant said today that culture secretary Jeremy Hunt’s former aide was drawn into a “web of manipulation and exaggeration” in the circumstances surrounding News Corp’s bid for a full takeover of BSkyB.

Jonathan Stephens, Permanent Secretary at the Department of Culture, Media and Sport (DCMS) told the Leveson Inquiry this afternoon that special adviser Adam Smith, who resigned after a series of emails between the department and News Corp revealed that the company was being given advance feedback of the government’s scrutiny of the bid, was “inadvertently drawn beyond what he intended to do”.

Stephens, who confirmed he had told Hunt he felt Smith should resign due to the level of “clearly inappropriate” level of contact between the department and News Corp, said it was “matter of intense regret” that the episode occurred. Lord Justice Leveson suggested it was a “calamity” for the DCMS.

“I thought the nature, context, extent and depth of the emails meant this was far beyond what could be considered appropriate,” Stephens told the Inquiry.

He added that he was aware Smith had been in touch with the corporation, but did not know News Corp lobbyist Frederic Michel was his individual point of contact.

Events over the past month have left Jeremy Hunt fighting for his political life. Yesterday a crucial memo came to light that Hunt had sent to David Cameron in support of News Corp’s £8bn bid for control of the satellite broadcaster, sent one month before he was handed the task of adjudicating the bid in December 2010.

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

It was also revealed that his department and News Corp had exchanged 1,000 text messages, 191 phone calls and 158 emails as the bid was under scrutiny from June 2010 to July 2011.

Over the past two days, Smith has been scrutinised about his contact with Michel, and expressed regret for the “perception of collusion” the contact created.

He revealed today that once the emails between him and News Corp were released at the end of April, Hunt had reassured him he would not need to resign, only to be told by him the next day, “everyone here thinks you need to go”.

He resigned from his post last month following the emails’ release, conceding that his contact with News Corp “went too far”.

Hunt, who is scheduled to face questioning over the matter at the Inquiry next Thursday, has contended he acted impartially and within the ministerial code. Today David Cameron said he does not regret handing the bid to Hunt, stressing he acted “impartially”.

The Inquiry continues on Monday.

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

Paxman recalls Piers Morgan hacking conversation

Newsnight presenter Jeremy Paxman has claimed former Daily Mirror editor Piers Morgan once showed him how to hack a phone.

Speaking at the Leveson Inquiry this afternoon, Paxman recalled a September 2002 lunch at Mirror headquarters during which  Morgan was “teasing” Ulrika Jonsson, former partner of ex-England football manager Sven-Göran Eriksson, telling her “he knew what had happened in the conversations between her and Sven-Göran Eriksson”.

He added that Morgan asked him if he had a mobile phone, explaining: “the way to get access to people’s messages was go to the factory default setting and press either 0000 or 1234, and that if you didn’t put on your own code — his words — ‘you’re a fool’.”

“It was clearly something that he was familiar with and I wasn’t”, Paxman said, adding he “didn’t know that this went on.”

He said he did not know if Morgan was “repeating a conversation he had heard or he was imagining this conversation”, but suggested accepting both possibilities because Morgan “probably was imagining it.”

The Newsnight anchor added that he felt the atmosphere of the lunch was “bullying”.

“I didn’t like it,” he said.

Morgan has said several times that he has “no reason to believe” that any phone hacking occurred at the Daily Mirror under his editorship from 1995-2004.

Also appearing this afternoon was former Home Secretary John Reid, who said he was not briefed on Operation Caryatid — the original phone-hacking investigation — until 8 August 2006, around the time of the arrests of the News of the World’s royal reporter Clive Goodman and private investigator Glenn Mulcaire.

“When I say that throughout this I wasn’t receiving briefings, it’s not a complaint,” Reid said, stressing that he knew “what the counter-terrorist unit had on its plate.”

Reid said the country was facing up to 70 terrorist plots when he took office in May 2006, and the timing of the Mulcaire-Goodman arrests coincided almost exactly with the arrest of the ringleader in a plot to bring down 10 trans-Atlantic airliners.

He added that it was “completely untrue” that he knew other reporters at the now-defunct tabloid might have been involved in phone hacking in 2006.

The Inquiry continues tomorrow.

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

Alan Johnson lashes out at "spiteful" press, but warns against over-regulation

A former home secretary has attacked elements of the British press as “spiteful”, telling Lord Justice Leveson today that problems of nastiness were rooted in culture.

“Why are some elements of the media in this country so spiteful?” Alan Johnson MP asked the Leveson Inquiry today.

“It’s the nastiness, real nastiness you have to face. That’s a cultural thing,” he said. He pointed to the singling out of female politicians as subjects of spite, adding that he felt the sections of the press’s attempts to attack politicians’ families was “concerning”.

Johnson, who was home secretary from June 2009 to May 2010, told the Inquiry about a story the News of the World was due to run in January 2008 while he was health secretary alleging he had had an affair with a district nurse in Exeter.

“I’d never been to Exeter,” Johnson said, adding that he rang the paper’s editor to tell him the story was “absolute rubbish”.

“Run the story — it will be a good pension fund when I take you to court,” Johnson told the editor. The story — which was untrue — was never published.

On the topic of future regulation, Johnson toyed with the idea of a Parliament-backed system similar to the Independent Police Complaints Commission, which oversees complaints made about police forces in England and Wales, but stressed the need to avoid “doing anything North Korean”.

“It is important that the press is not dragged kicking and screaming to a regime they fiercely disagree with,” Johnson said.

Also appearing this morning was Labour MP Tom Watson, one of the fiercest critics of News International, describing the publisher as the “ultimate floating voter” that behaved “with menace”.

Watson, a member of the Culture, Media and Sport select committee, said there was a sense of “mystique about the News International stable” and of it having “unique access to Downing Street.”

“They were the ones that had the connections and everyone was aware of it,” Watson said. “As a minister when I discussed issues or policy, there was always a conversation about how this would play out in the Sun,” he added.

When asked by Leveson if there was a similar concern about other titles, Watson described the Daily Mail as more “constant” in its editorial position. “There were no surprises,” he said.

He named justice secretary Ken Clarke as one of the Murdoch-owned Sun’s “target MPs” and subject of “frequently harsh comment” in the redtop due to his willingness to “swim against the tide”.

Watson admitted he had “no hard evidence that there was a craven understanding” between politicians and executives at NI, but said he believed this was the “general view” among the public. He stressed that reforms were needed to restore public confidence in relations between the two.

Watson also revealed he had been contacted by a dozen MPs who had told him of their intimidation by NI titles and other British tabloids. He said they feared “ridicule and humiliation over their private lives or political mistakes”.

He also briefly described the surveillance the now-defunct News of the World subjected him to. An email trail between investigative journalist Mazher Mahmood and two executives at the tabloid suggests private investigator Derek Webb had been commissioned to survey Watson at a Labour Party conference in the hopes of proving he was having an affair; an allegation Watson said was untrue.

When asked about the phone hacking scandal that has engulfed the Murdoch empire, Watson argued that politicians had “closed their minds to the potential of a major scandal at one of the key outlets for their message.”

“Relations between them [NI and politicians] were too fibrous, so politicians couldn’t divorce their objective thinking,” he added.

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

Mandelson argues for press regulation

Former Labour cabinet minister Lord Mandelson has accused the British newspapers of feeling they are “above the law”, arguing that it is “politically suicidal” for any prime minister to consider taking them on.

In an afternoon at the Leveson Inquiry in which he lamented a “loss of deference” in society, Mandelson compared the press to Britain’s trades unions in feeling “untouchable” and wanting to “operate above the law”. He wrote in his witness statement:

Like the trades unions, when you try to apply the law, they shout from the rooftops about basic freedoms and fundamental rights. (…) Perhaps, because of all that has now happened and been revealed about the invasions of privacy, law-breaking and deceptions, the time for the press has also finally arrived. But it will take a brave government and I would not bank on their nerve holding.

Mandelson, one of the key architects of New Labour, lamented what he termed the “tabloidisation” of the British press, suggesting News International titles and others had “pioneered” a shift from “conventional news to a pre-occupation with celebrity, scandal, gossip and sexual revelation”.

“There are barely any broadsheets left, figuratively or literally,” he said, adding later that he felt the country would be “better off” if newspapers “spent more time looking into corporate misbehaviour and general wrongdoing rather than celebrity tittle tattle and gossip”.

He also expressed fears over the challenges presented by digital media. “Media business models are being ransacked, governments are losing control of the information flow and the public are being given access to a flood of undigested and unmediated ‘news’, all in the name of free speech,” he wrote.

He stressed a need to maintain standards in the press. “The media has to be challenging,” he said,”but it seems that every journalist wants to turn themselves into a [Bob] Woodward or a [Carl] Bernstein. They have to accept that sometimes people haven’t done wrong.”

Mandelson spoke out in favour of a body enforcing higher standards, but argued that corporate governance and transparency were equally important. “Just in the case of banks, you need regulation, but for banks to uphold proper standards they need better people running them,” he said.

He advocated independent, statute-backed regulation controlled by neither the press nor the government, disagreeing with Lord Justice Leveson’s suggestion that it might be seen as infringing free speech.

Elsewhere in his three hours of evidence, Mandelson described his time in dealing with the press in the run up to the 1992 elections and Labour’s takeover of power in 1997, when the Murdoch-owned Sun famously switched its previous Conservative party allegiance.

He compared dealing with media in the 1980s as “like living in a jungle, engaging in almost daily hand to hand combat with people who never seemed prepared to give you a break”, and described Labour’s relations with press around 1992 elections as “pretty dire” due to their antagonism with the party.

Ahead of the 1992 elections, Mandelson said, “we didn’t want to make permanent enemies of News International”, as the party tried to forge a friendlier relationship with the publisher.

However he was firm in rejecting the view that “some sort of Faustian pact” had been struck between the Murdoch-owned group and Labour at the time of the Sun supporting the party ahead of its 1997 landslide win.

On his dictum of press-politicians relations, which the Inquiry is currently examining, Mandelson said: “You can be friendly with journalists, but journalists are never your friends.”

The Inquiry continues tomorrow.

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

SUPPORT INDEX'S WORK