Leveson Inquiry

Baroness Jones of Whitchurch Excerpts

Wednesday 25th April 2012 Lords Chamber

[Baroness Jones of Whitchurch]

My Lords, I thank the Minister for repeating the Statement.

It has not come as a great surprise to many on this side of the House, and perhaps around the Chamber, that we are debating this issue this afternoon. For those of us who over the past 18 months have been regularly debating the wisdom of allowing one media organisation to own 40 per cent of market share, it has often felt that the Secretary of State has interpreted the rules so as to give maximum advantage to News Corp’s bid. We may be surprised by the source of the new allegations—old friends settling scores, perhaps—but not the substance.

The Secretary of State’s current predicament might have been averted if he had listened to those of us around this Chamber, and many in the wider media world, who urged him to refer the merger of News Corp with BSkyB directly to the Competition Commission in the first instance. Instead, he chose the quasi-judicial role in overseeing the process that his previous support for the Murdochs would always have left open to question. The serious allegations made in yesterday’s e-mails seem to bear out the concerns that he proved unable to carry out this role in a suitably impartial and transparent way.

There are serious questions at the heart of this issue about the operation of the Ministerial Code, to which the Secretary of State must now be held to account—which is why it is important that he give a full and frank explanation to Parliament rather than waiting for Leveson to take its course. As we have seen over the past few months, many other careers have foundered on the evidence presented to Leveson in advance of his findings, and there is no reason for MPs to be immune from facing up to their immediate responsibilities and failings. Ultimately, it is not the job of the Leveson inquiry to oversee the implementation of the Ministerial Code.

First, therefore, in the light of the Statement, perhaps I may ask the Minister whether the Cabinet Secretary has been consulted on the process now being pursued to scrutinise Mr Hunt’s role, and is he happy that the Secretary of State continues to have responsibility for overseeing the BSkyB bid rather than Parliament? Is it the view of the Cabinet Secretary and the Prime Minister that consideration of any breaches of the Ministerial Code should now be put on hold until the end of the Leveson inquiry? If not, what steps have been put in place to pursue this issue further?

Secondly, in the light of the resignation of Adam Smith, Mr Hunt’s special adviser, does the Minister accept that this does not absolve Mr Hunt from responsibility for the actions of his adviser as set out in paragraph 3.3 of the Ministerial Code? Can she clarify what instructions were given to Adam Smith by Mr Hunt throughout the negotiating period, and whether he specifically disobeyed those instructions? Can we also be told the precise reasons for Mr Smith’s resignation?

Thirdly, can the Minister confirm whether the DCMS Permanent Secretary sanctioned the use of Adam Smith as a go-between with News Corp over that period? Did Mr Smith keep notes of his discussions, and, in the interests of transparency, can she assure us that they will be published?

Does the Minister accept, with the benefit of hindsight, that if there was to be any liaison between News Corp and the department during this highly sensitive period, it would have been better carried out by a departmental official? Does she also accept that it would have been improper for the Prime Minister to have any private discussions with Mr Murdoch on the subject of the bid regardless of whether he had direct quasi-judicial responsibility for the decision? Can she now tell us what the nature of that discussion was and whether it was minuted? If it was, should it not also now be published?

Next, can the Minister explain the rationale of giving News Corp private advance notice of Ofcom’s advice and the Secretary of State’s intentions before they were presented to Parliament, and can she state categorically that those opposing the bid were given equal access to the advance information?

Finally, what is the Government’s response to the question raised today by Robert Peston about the potential involvement of the Financial Services Authority in assessing whether there has been a leak of price-sensitive information? Mr Peston suggests that if Fred Michel did indeed receive advance information on 24 January that Mr Hunt intended to make an announcement the following day that he was minded to accept undertakings in lieu in order to prevent a referral to the Competition Commission, then that had price and market sensitivity and the FSA should investigate. Does the Minister agree that the FSA should be asked to check whether any breaches of financial trading rules were involved?

I do not apologise for raising a range of significant questions on this issue today, as there are important issues of propriety and confidence in government processes at stake. I look forward to hearing the Minister’s answers and would ask her to write if she does not have the full details and responses to hand.