Leveson Inquiry

John Bercow Excerpts

Wednesday 25th April 2012 Commons Chamber

[The Secretary of State for Culture, Olympics, Media and Sport (Mr Jeremy Hunt)]

With permission, Mr Speaker, I would like to make a statement following yesterday’s developments at the Leveson inquiry. Although I intend to respond fully to allegations about my conduct and that of my Department when I present my evidence to Lord Justice Leveson, I believe that it is important to update the House on actions that have been taken as a result of evidence released yesterday.

We are 273 days into a process whose first stage will last until October. This is not the time to jump on a political bandwagon—[Interruption.] What the public want to hear are not my views or those of the right hon. Gentleman the Leader of the Opposition, but the views of Lord Justice Leveson when he has considered all the evidence. I do, however, think that it is right to set the record right on a number of issues, in the light of the evidence heard yesterday at the inquiry. Specifically, on the merger of News Corp with BSkyB, I would like to remind the House of the process that I followed. Throughout, I have followed due process, seeking the advice of independent regulators—something I did not have to do—and after careful consideration, acting on their advice. I have published all advice that I have received from Ofcom and the Office of Fair Trading, together with correspondence between myself and News Corporation, including details of all meetings that I have held in relation to this process.

As part of this process, my officials and I have engaged with News Corporation and its representatives, as well as other interested parties—both supporters and opponents of the merger. Transcripts of conversations and texts published yesterday between my special adviser, Adam Smith, and a News Corporation representative have been alleged to indicate that there was a back channel through which News Corporation was able to influence my decisions. That is categorically not the case—[Interruption.]

[Mr Speaker]

Order. The House must calm down a bit. The statement must be heard. There will be a full opportunity for questioning of the Secretary of State, as he would expect. Whether he expects it or not, that is what will happen. That is right and proper, but it is also right and proper that the statement should be heard with courtesy.

[Mr Hunt]

However, the volume and tone of those communications were clearly not appropriate in a quasi-judicial process, and today Adam Smith has resigned as my special adviser. Although he accepts that he overstepped the mark on this occasion, I want to set on record that I believe that he did so unintentionally and did not believe that he was doing anything more than giving advice on process. I believe him to be someone of integrity and decency, and it is a matter of huge regret to me that this has happened.

I only saw the transcripts of these communications yesterday. They did not influence my decisions in any way at all—not least because I insisted on hearing the advice of independent regulators at every stage of the process. I will give my full record of events when I give evidence to Lord Justice Leveson. However, I would like to resolve this issue as soon as possible, which is why I have written to Lord Justice Leveson asking if my appearance can be brought forward. I am totally confident that when I present my evidence, the public will see that I conducted this process with scrupulous fairness throughout.

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[Mr Hunt]

I am hugely disappointed by the right and learned hon. Lady’s response today. She had the opportunity to rise above party politics and work towards a solution to a problem that has bedevilled British politics for many years; instead, she has chosen to jump on the political bandwagon. Let me remind her that the Labour party spent over a decade in power and did nothing other than cosy up to the press barons and their families. She speaks for a party whose Prime Minister, when in opposition, flew half-way round the world, in Rupert Murdoch’s words, to “make love” to him “like a scorpion”. [Interruption.] This is a party whose Prime Minister was godfather to Rupert Murdoch’s daughter and whose Prime Minister’s wife organised a sleepover at Chequers. [Interruption.] I will come on to deal with all the right hon. and learned Lady’s points.

[Mr Speaker]

Order. I appeal to the House to calm down. I politely but explicitly suggest to the Secretary of State that in addressing these matters, he seeks to address the questions put to him and to address the matters for which he is responsible, which obviously does not include the conduct of other political parties.

[Mr Hunt]

I will happily do that, Mr Speaker, but I do think that Opposition Members need to show a degree of humility when they deal with these issues because if we are going to solve this problem, it is necessary for the whole House to work together and not to jump on bandwagons.

Let me now deal with the specific points made by the right hon. and learned Lady. She said that I was backing the bid—that I had made up my mind. That is not true. Let me say this. When I was appointed to be responsible for the bid, my views about the bid, some of which had been made public, were explicitly reported to the Cabinet Secretary, who decided that it was appropriate for me to take responsibility for it in a quasi-judicial role, but—this is the crucial point: it is very important—the right hon. and learned Lady must understand that because I had expressed some sympathy for the bid when I was not responsible for it, I changed the process so that at every stage before I made a decision, I obtained the advice of independent regulators, which I carefully considered and which I followed. I put it to the right hon. and learned Lady that if I had been backing the bid, I would not have sought the advice of independent regulators who might well have opposed it.

I made four decisions in this process, and each of those decisions was contrary to what News Corporation wanted. [Interruption.] If Opposition Members are making the very serious allegation that I was supporting this bid and not acting quasi-judicially, they must at least listen to the evidence of what happened.

The first decision I made was that I was minded to refer the bid to the Competition Commission, which is precisely what James Murdoch did not want me to do. I said that I was minded to do it. I then had an obligation to consider undertakings in lieu of a reference to the Competition Commission, and I made my second decision, which was that I would not accept those undertakings until I had received and considered the advice of Ofcom and the OFT on whether they dealt with the plurality concerns. That was something about which James Murdoch was extremely angry. [Interruption.] I had a meeting which was minuted.

The third decision that I made was to extend the period of consultation—again, at any stage I could have accepted those undertakings—and to insist again that Ofcom and the OFT must have full sight of the undertakings, that I would see their advice, and in practice I followed their advice after careful consideration.

My final decision, at the very end of the process, was made at the time of the Milly Dowler revelations. At that stage, I wrote to Ofcom and asked it whether those allegations should have any impact on my decision with respect to accepting the undertakings, because I thought that there was a question mark over corporate governance procedures which might affect any decision to accept them.

Those four decisions were contrary to what News Corporation wanted. The idea that I was backing the bid is laughable.

The right hon. and learned Lady talked about the e-mails between Frederic Michel and me. In his evidence to the inquiry, Frederic Michel also said—[Interruption.] I think that Opposition Members should listen to the evidence that was presented yesterday. Frederic Michel said:

“some of my emails… may incorrectly suggest to a reader that I had contact with the Secretary of State for Culture, Media and Sport, Jeremy Hunt, when in fact my contact was solely with Mr Hunt’s adviser”.

[Interruption.] I accept, and my adviser accepts, that those communications overstepped the mark. However, I am telling the House today that all the evidence makes it absolutely clear that none of those conversations influenced the decisions that I made.

Let me just say this. The right hon. and learned Lady’s party had 13 years in which to do something about this. During the last year of the last Labour Government, the Cabinet discussed the issue of press behaviour and decided to do nothing. In contrast, she faces a Prime Minister and Culture Secretary who set up the Leveson inquiry within two weeks of the Milly Dowler situation, who therefore have put in place a process that, while fully protecting freedom of expression—which is the foundation of our democracy—will oversee some of the most fundamental reforms of press practices in a generation, and who have shown more commitment to transparency and openness than her Government ever did.

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[Mr Hunt]

I think that the hon. Gentleman needs to be very careful about declaring someone guilty before there has been due process. He described—[Interruption.] He accepts—[Interruption.]

[Mr Speaker]

Order. The question has been asked. The answer must be heard.

[Mr Hunt]

The hon. Gentleman used the word “incriminating.” I said he overstepped the mark, and I think it is very important in situations such as this that due process is followed. The hon. Gentleman wanted an inquiry. He has got an inquiry. Let us listen to the results of that inquiry.

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[Several hon. Members]

rose—

[Mr Speaker]

Order. Whatever strong views Members hold on this subject—as on many others—let me just remind them of the importance, as “Erskine May” has exhorted us, of moderation in the use of language in this House.

[Jake Berry (Rossendale and Darwen) (Con)]

Did the Secretary of State write on his website that he was a cheerleader for the Murdochs?

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[Hon. Members]

Answer!

[Mr Speaker]

Order. Let us calm down. Let us hear the answer.

[Mr Hunt]

I knew about his contact—that was authorised. He was authorised to be the point of contact between my Department and News Corporation. What I did not know was the communications themselves—the first time I saw them was yesterday. Nor did I know the volume of those communications or their tone.

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[Bill Esterson (Sefton Central) (Lab)]

The more that Government Back Benchers claim that the Secretary of State is a man of integrity, the less the public are likely to believe them. My hon. Friend the Member for Halton (Derek Twigg) asked whose suggestion it was that a special adviser—

[Mr Speaker]

Order. The hon. Gentleman should not impugn integrity. [Interruption.] Order. I do not require any assistance from any Government Back Bencher; I am perfectly capable of handling this matter myself and that is what I am doing, and they should be quiet. The hon. Member for Halton (Derek Twigg) asked a question; it was answered. The hon. Member for Sefton Central (Bill Esterson) should now ask his question, but without the aspersions. Let us just have the question.

[Bill Esterson]

Thank you, Mr Speaker. To answer the question, we need to know whose suggestion it was that Adam Smith should be the point of contact for News Corporation and why the key contact was a special adviser, not a civil servant.

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[Nadhim Zahawi]

Get your hand out of your pocket!

[Mr Speaker]

Order. The trouble with the hon. Gentleman is that he is as excitable as he is good-natured. He is a very amiable fellow, but we do not need the hon. Gentleman’s advice on decorum. He should calm himself and take whatever tablets are required for the purpose.

[Robert Flello]

Thank you, Mr. Speaker. The Secretary of State has had three opportunities to answer the question about why Adam Smith was appointed to be the lead contact. Let me give him a fourth opportunity to stand up and give some information to the House, unlike last year, when he was supposed to release documents to the House.

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[Jason McCartney (Colne Valley) (Con)]

Why did the former Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown)—I would never refer to him in an ungracious and ungentlemanly way as “dodgy Gordon”—never once raise the issue of phone hacking with Rupert Murdoch?

[Mr Speaker]

Order. I was just waiting to see what part of the question engaged the responsibility of the Secretary of State, but I am afraid the answer was none of it.

[Gavin Barwell (Croydon Central) (Con)]

I have a high regard for the work that the Secretary of State has done, particularly in relation to the Olympics, which are coming to our great city in a few weeks. On the specific issue of the statement that he has given, can he tell the House when he hopes to give evidence to the Leveson inquiry? It is in his interest and in the interest of us all that we hear his full evidence as soon as possible.

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[Mr Ben Wallace (Wyre and Preston North) (Con)]

Does my right hon. Friend share my curiosity as to why it was the deputy leader of the Labour party who chose to respond to his statement today, rather than the hon. Member for Bury South (Mr Lewis), the shadow Secretary of State? Could it—

[Mr Speaker]

Order. The hon. Gentleman is asking a question that is completely irrelevant to the terms of the statement. [Interruption.] It is simply not relevant. The hon. Gentleman should go and do his homework.

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[Mr Hunt]

I made absolutely no interventions seeking to influence a quasi-judicial decision that was at that time the responsibility of the Secretary of State for Business. However, it is my responsibility to understand what is going on in the media industry and the impact of this very important sector, which employs thousands of people. That is why I was interested to find out what was going on.

[Mr Speaker]

Order. For the benefit not of the House, but of those who are listening to and interested in our proceedings, I make the factual observation that a request for a statement by the Secretary of State for Culture, Olympics, Media and Sport very properly comes from the shadow Secretary of State for Culture, Olympics, Media and Sport, rather than from the shadow Secretary of State for International Development.

[Sheila Gilmore (Edinburgh East) (Lab)]

The very many people throughout the country who wrote to us when the responsibility for the decision was transferred to the Secretary of State will now feel that they were absolutely right and the Government were absolutely wrong. Can the Secretary of State explain why he is such a poor manager of his staff that he did not know what messages were going out under the authority of the special permission to communicate?

[Mr Hunt]

I manage my staff closely but I do not know every—[Interruption.] Excuse me. I—

[Mr Speaker]

Order. The proceedings are becoming rather rowdy. [Interruption.] Order. The Secretary of State’s answers must be heard with proper courtesy.

[Mr Hunt]

I do not know every single text message and e-mail that every single person in my Department sends. When I found out yesterday about the text messages that were sent, it was a matter of profound regret, which is why Adam Smith has taken the decision to resign today.

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[Gavin Williamson (South Staffordshire) (Con)]

Will my right hon. Friend tell the House whether he is a godfather to any of Mr Murdoch’s children and whether he agrees that the Labour party is showing a fair amount of brass neck?

[Mr Speaker]

Order. For the benefit of the hon. Gentleman and as a reminder to the Secretary of State, I point out that the statement the Secretary of State has offered the House is on the Leveson inquiry, not godparents. I think that we are clear on that.

[Lilian Greenwood (Nottingham South) (Lab)]

Responsibility for the management and conduct of special advisers rests with the Minister. Will he admit that he showed poor judgment and failed properly to manage Mr Smith in such a sensitive role?