Privileges

Paul Farrelly Excerpts

Thursday 27th October 2016 Commons Chamber

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

My initial reaction on the day of the report’s publication was that I was pleased that the Privileges Committee had agreed with our 2012 report saying that Colin Myler and Tom Crone had misled us and were in contempt. I made those comments, which are on my website, following a statement by Les Hinton, the former executive chairman of News International that led to claims that he had been exonerated. Clearly, this Privileges Committee report provides no substance for that statement, and nor does it provide any substance for Mr Hinton’s claims that the CMS Committee reached false findings in 2012. In my comments, I also said that I found the second half of the report more disappointing and I want to explain why. I also have questions about an aspect of the Privileges Committee’s methodology.

I join the right hon. Member for Maldon (Mr Whittingdale) in expressing my sympathy for the Committee. During its long, interrupted inquiry, it clearly received only grudging, and certainly not full, co-operation from three of the subjects: Colin Myler, Les Hinton and News International, and their solicitors. That was an all-too-familiar experience through all our reports into phone hacking.

I turn to chapter 6 of the report and Les Hinton. Mr Hinton, often described as Rupert Murdoch’s right-hand man, was the executive chairman of News International until December 2007. He resigned as chief executive of Dow Jones, another News Corp subsidiary in New York, in July 2011, within a week of the closure of the News of the World—that fact should speak for itself. We found that he was not full and frank in his evidence to our Committee about the payments made to the convicted royal reporter Clive Goodman; about their purpose, which was to buy silence; or about suspicions that were communicated to him about the extent of phone hacking beyond one rogue reporter and one hacker. One only has to look at the detailed memo from Harbottle & Lewis, the lawyers to the group, to see that he also misled us over claims that a full and rigorous investigation into phone hacking at the News of the World happened on his watch—it certainly did not.

On Mr Hinton, the Privileges Committee made three findings, each of no contempt. First, on payments to Clive Goodman, the report concludes that he failed to tell us, but would certainly have remembered, his role in authorising a £90,000 pay-off to a convicted criminal. The Committee says that it found its conclusion of no contempt “particularly difficult”. I, for one, find that a little confusing and surprising, because we certainly, and unanimously, did not find it difficult to reach our conclusion.

Secondly, on knowledge of the allegations about the extent of phone hacking at the News of the World, the report documents that Mr Hinton received a letter in 2007 from Clive Goodman appealing his dismissal, in which he implicated other senior members of staff. Mr Hinton subsequently told our Committee that he had never been provided with any suspicions of wider involvement, and he never sought to correct that comment. Paragraph 269 of the Privileges Committee report says:

“On that basis we agree that Les Hinton’s evidence was misleading because it did not reveal that Clive Goodman was the source of one of those allegations.”

Yet in paragraph 270—the following paragraph—the report goes on to conclude that the allegations that Mr Hinton misled us were not

“significantly more likely than not to be true”,

so it made no finding of contempt. I am not the only person to find that conclusion rather contradictory and confusing.

I will not delay the House in relation to the third finding in this chapter of the report, about the payment of Mr Goodman’s legal fees—the hon. Member for Shipley (Philip Davies) may want to ask questions about it—as I have said enough about Mr Hinton. I will say, however, that throughout our investigations we found a pattern of payments, settlements and confidentiality clauses that clearly had one aim in mind: to suppress the truth about phone hacking.

Chapter 7 of the report deals with News International, which has since been renamed News UK. It was the parent company of News Group Newspapers, which ran and published the News of the World and The Sun. I must say that, at the outset of the chapter, the Privileges Committee took a narrow approach to the question of whether News International itself was in contempt. It

“looked to identify the individual who could be said to be a controlling mind such that their written or oral evidence could fairly be said to be on behalf of and bind the company.”

That is tantamount to saying that statements by the company, individual senior employees or its lawyers, with plenty of chance to correct the record, are not binding. The report concludes that, by that test, only the executive chairman or the chief executive giving direct evidence at the relevant time—Les Hinton, James Murdoch or Rebekah Brooks—fits the bill. That is rather contestable.

On corporate liability, the report says that it was unclear why our Committee chose to focus on the parent company, News International, rather than News Group Newspapers. That, too, is a rather narrow point. The Privileges Committee did not ask us about that before it issued its report, but I hope to shed some light on why we chose that route. The issue was not raised before we reached our findings, when the Clerk of Committees was acting as our Committee Clerk and the recently retired Speaker’s Counsel was giving us advice. The title of our 2012 report was, indeed, “News International and Phone-hacking”.

I should mention some of my uncertainties about the Privileges Committee’s methodology. It reviewed, inter alia, oral and written evidence formally given to us, but that was clearly not the sum of our knowledge. It says that it reviewed “other publicly available documents”, but it is unclear from the report whether those included, in particular, court evidence in the myriad civil phone hacking claims and press releases from News International. We certainly considered those documents, as well as the whole behaviour of the organisation over a long period, when reaching our findings. They were not allegations; they were findings.

Throughout, we sought the truth beyond the initial “one rogue reporter” defence. We were clearly not alone in doing so. Along with media investigations, notably by The Guardian and The New York Times, a raft of hacking victims sued in the civil courts. In each case, the pattern of behaviour in the whole organisation was always the same—denials, misleading statements and evasion, until being forced, grudgingly, to make admissions. That extended to out-of-court settlements with strict confidentiality clauses to avoid cross-examination in the witness box and, in the case of the investigator Glen Mulcaire, to indemnities and costs being paid as long as he played ball. We know that, as we knew it then, from all the court documents.

In July 2011, but only after closing the News of the World, News Corporation and News International changed tack, setting up the so-called management and standards committee to handle the scandal. Any notion that afterwards a so-called “zero tolerance”, as the report describes it, equated to openness and full co-operation in reality is completely wrong. We had to probe, dig and cajole, as did lawyers in the civil cases. During our inquiries, News International issued misleading and false corporate statements, including press releases on 10 July 2009 denying a key story in The Guardian and, on 24 February 2010, savagely attacking our earlier report. At the time of that report, News International’s chief executive was Rebekah Brooks, to whom I will turn in a moment. As far as Les Hinton is concerned, I have said enough.

I will not dwell too much on James Murdoch, save to note his “lack of curiosity”, as we termed it, about the key items and events about which he was made aware during his tenure, including the damning opinion from Michael Silverleaf, QC, in June 2008, and the settlement with Gordon Taylor of the Professional Footballers Association to which that related. In evidence, the Murdochs rested on a letter from their lawyers, Harbottle & Lewis, claiming that there had been a proper investigation. In a key memo to us, the lawyers told us that the Murdochs were not entitled to do so. They said that the Murdochs were either mistaken or confused.

Those senior people were far from being the only News International executives from whom we took evidence. Tom Crone, for instance, who is found in the Privileges Committee’s report to be in contempt, was the legal manager for both News Group Newspapers and News International. In key ways, our 2012 report was unfinished business. Owing to the imminent criminal charges, we, on advice, made no findings about the former editor of the News of the World, Andy Coulson, or Rebekah Brooks. Whether the Committee will wish to do so now, raking back over old ground, is clearly a matter for the Chair and its members.

In June 2014, Andy Coulson was convicted of conspiracy over phone hacking, while Rebekah Brooks was acquitted. However, those charges were not related to the evidence given to us about whether she had misled our Committee. On page 112 of its report, the Privileges Committee mentions that her evidence in criminal cases and to the Leveson inquiry was “constrained”, as was her oral evidence to us on 19 July 2011. That was four days after she had resigned as chief executive, and the report says that

“as such her answers cannot be said to be on behalf of News International.”

She was sitting alongside the Murdochs at the time. The report concludes:

“There are therefore no particular matters arising from her oral evidence in 2011.”

I am afraid to say that I am not the only one who would beg to differ with that narrow, premature conclusion. Ms Brooks is now, of course, the chief executive of News UK—so much for Rupert Murdoch’s penitence when he said:

“This is the most humble day of my life.”

[Chris Bryant]

Is it not a curious irony that, because of the Bill of Rights, neither Lord Justice Leveson nor the courts could, when interrogating Rebekah Brooks, ask her why, in an answer to a question from me on 11 March 2003 about whether she had ever paid a police officer for information, she said yes?

[Paul Farrelly]

I agree with my hon. Friend. That highlights the long record of Ms Brooks coming—or declining to come—to give evidence in this House. We have taken issue with such evidence.

In evidence to our Committee in July 2011, Ms Brooks repeated one central assertion:

“the fact is that since the Sienna Miller…documents came into our possession at the end of December 2010, that was the first time that we, the senior management of the company at the time, had actually seen some documentary evidence actually relating to a current employee.”

The Sienna Miller civil case was seminal in terms of disclosure. Ms Brooks went on to say:

“It was only when we saw the Sienna Miller documentation that we realised the severity of the situation.”

Yet we know that, by then, News International had plenty in its possession to suggest that hacking was widespread, including the Silverleaf opinion. We know that Rebekah Brooks personally negotiated the big out-of-court settlement with Max Clifford, which was all wrapped up in confidentiality, just days after our 2010 report. As the Privileges Committee report records, we know that she was present with other people from News International at the meeting of its lawyers Farrer and Co. on 20 January 2010 that was held to discuss Mr Clifford’s civil claim.

[Damian Collins]

Does the hon. Gentleman agree that Tom Crone’s role as legal manager would surely be to act on behalf of the company to gather whatever advice he needed to advise whoever within the company—senior executives at all levels—of impending issues and problems, and that it is therefore right to assume that he would have made his opinion and that of Michael Silverleaf available to anyone he felt he had to make them available to?

[Paul Farrelly]

I thank the new Chair of the Culture, Media and Sport Committee. There are disputes within the company about who told what to whom at what time. If he will bear with me, in a moment I will come on to something about which there has been no dispute.

We know, too, that back in 2006, when Rebekah Brooks was editor of The Sun, the police informed her that her own phone had been hacked. Courtesy of evidence submitted to the Leveson inquiry in February 2012, we know that she had a long conversation with a police source that was relayed to Tom Crone and then by him in an email to Andy Coulson on 15 September 2006. That email referred to more than 100 victims across all walks of life, not just the royal family, who would have been of interest to royal reporter Clive Goodman.

On reviewing all the lengthy correspondence the Culture, Media and Sport Committee received at the time, it is clear that Rebekah Brooks led us a merry dance for nine months before our 2010 report, saying that she would give evidence in person and then declining. In her final written reply to the right hon. Member for Maldon, on 8 February 2010, she had this to say about what had been known at News International from the police about the extent of hacking:

“I understand that, at some stage between the arrests of Mr Mulcaire and Mr Goodman on 8 August 2006, and their first appearance in court on 29 November 2006, it became known, from information provided by the police, that Mr Mulcaire had accessed the voicemails of people other than Royal Household employees. It was not known how many.”

Compare that to the email from 15 September 2006 that was cited at Leveson. She does not say that it was she herself who received the information from a police source, and the final sentence appears to be a complete untruth. The email cites 100 to 110 victims—a very precise number. Did Mr Crone simply make that number up for Mr Coulson after talking to Ms Brooks? It all certainly contradicts the central assertion that the Sienna Miller case was Ms Brooks’s moment of epiphany about the severity of the situation, four years later. Along with the other replies that Ms Brooks gave us—not least over the cost indemnity arrangements with Mr Mulcaire after he was sacked—this also merits closer analysis than was evident, I am afraid to say, in the Privileges Committee’s report. On all those grounds, I believe that the Privileges Committee is wrong in being “unable to draw” the conclusion that News International misled us, and is rather premature in not considering it

“to have committed a contempt.”

As far as parliamentary privilege is concerned, what is important now is what happens in the future. In chapter 8 of its report, the Privileges Committee is quite right to note that the work of the 2013 Joint Committee has not been taken forward. When we on the Culture, Media and Sport Committee were finalising our 2012 report, as the right hon. Member for Maldon mentioned, we summoned the Murdochs to appear in front of us, as we knew they were in the country to apologise to the family of the murdered teenager Milly Dowler over phone hacking. The uncertainty over our step was what to do if they declined to come. While we were finalising our report, we asked time and again for advice on what sanctions might apply in this day and age for misleading a Select Committee. Too often, I am afraid we found that in the reality behind the rhetoric, the parliamentary emperor apparently had no clothes. That situation needs to be readdressed urgently.

Question put and agreed to.

Resolved,

That this House—

(i) approves the First Report from the Committee of Privileges (HC 662);

(ii) having regard to the conclusions of the Committee in respect of Mr Colin Myler, considers that Mr Myler misled the Culture, Media and Sport Committee by answering questions falsely about his knowledge of evidence that other News of the World employees had been involved in phone-hacking and other wrongdoing, and therefore formally admonishes him for his conduct; and

(iii) having regard to the conclusions of the Committee in respect of Mr Tom Crone, considers that Mr Crone misled the Culture, Media and Sport Committee by giving a counter-impression of the significance of confidentiality in the Gordon Taylor settlement and by answering questions falsely about his knowledge of evidence that other News of the World employees had been involved in phone-hacking and other wrongdoing, and therefore formally admonishes him for his conduct.

That the matter of the exercise and enforcement of the powers of the House in relation to select committees and contempts be referred to the Committee of Privileges.