- David Cameron stands by his man - but for how long?
- Ed Miliband ridicules Jeremy Hunt's 'lone wolf' defence after adviser quits
- Murdoch tells Leveson Inquiry he has no recollection of meeting Mr Hunt
- No 10 defends accuracy of its record of PM's meetings with Murdoch
- Affair has cast 'shadow of sleaze' over the Government, Mr Miliband says
- Top Tory Bernard Jenkin breaks ranks and calls for investigation
- Labour veteran: 'When posh boys are in trouble, they sack the servants'
Labour leader Ed Miliband today accused David Cameron of using Culture Secretary Jeremy Hunt as a 'firewall' to protect himself from the growing scandal over secret collusion with the Murdoch empire.
Mr Miliband said it is 'incredible' that the beleaguered Mr Hunt has not resigned or been forced out of office.
He told BBC Radio 4's Today programme: 'It beggars belief that he's still in his job, because to believe that he should stay you have to believe that his special adviser was, if you like, a lone wolf, who spent six months in collusion with News Corporation, passing information that was to be announced in the House of Commons, providing information about discussions with the regulator, providing information about what opposing parties were saying.
'I think it's incredible that Jeremy Hunt hasn't resigned and that that David Cameron has kept him in his job.'
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Fall guy? Adam Smith (left), pictured with Culture Secretary Jeremy Hunt (right), resigned from his position yesterday after admitting he 'went too far' in negotiations with the Murdoch empire
But he added: 'There is a world of difference between being too close to the Murdochs and the pattern of behaviour we've seen revealed in the past few days.'
He added: 'Why is Jeremy Hunt still in his job? Because David Cameron has questions to answer, and Jeremy Hunt is, if you like, acting as a firewall, and if he goes the questions will then move to David Cameron's conversations with Rebekah Brooks, with James Murdoch and others.'
Mr Miliband's scathing remarks came as Rupert Murdoch today revealed that he has no recollection of ever meeting Mr Hunt.
Speaking at the Leveson Inquiry into media standards, he denied that he saw Mr Hunt as an ally in his company's battle to take over the satellite broadcaster BSkyB.
He told the hearing that he expected Mr Hunt to be a 'fairer' judge of the bid than Business Secretary Vince Cable, who was stripped of the role after being secretly recorded saying he had 'declared war' on the News Corp boss.
But he said that he was not aware that Mr Hunt had publicly expressed 'sympathy' for the £8billion bid and did not regard him as a 'pro-Murdoch' minister.
He said: 'Did I assume that Mr Hunt was on our side? No. I assumed that any responsible minister would be responsible and deal with it in a completely unbiased way. I thought that Dr Cable was an exception.'
In the line of fire: Mr Hunt leaves his London home this morning as Labour leader Ed Miliband continues his calls for him to quit
NO 10 DENIES CAMERON HAD SECRET MEETINGS WITH MURDOCH
Downing Street has defended the accuracy of its record of David Cameron's meetings with News Corporation chairman Rupert Murdoch after it was called into question by evidence given to the Leveson Inquiry into media standards yesterday.
Labour MP Chris Bryant told the House of Commons yesterday that a list of meetings submitted by Mr Murdoch suggested that the pair had met more often than was admitted by Downing Street.
However, Lord Justice Leveson this morning indicated that the list, which has not yet been published, may be revised by lawyers before being released to the public.
And he issued a warning against leaks by 'core participants' in the inquiry, such as Mr Bryant, who have advance access to documents and witness statements via a secure computer system called Lextranet.
Mr Cameron's official spokesman this morning told reporters: 'We are confident that the list we published was correct.
'As I understand it, there is some revised evidence being presented to the inquiry this morning detailing meetings. I haven't seen that because it hasn't been published.
'Our list is based on our diary records and we believe those diary records are comprehensive.'
Labour MP Chris Bryant told the House of Commons yesterday that a list of meetings submitted by Mr Murdoch suggested that the pair had met more often than was admitted by Downing Street.
However, Lord Justice Leveson this morning indicated that the list, which has not yet been published, may be revised by lawyers before being released to the public.
And he issued a warning against leaks by 'core participants' in the inquiry, such as Mr Bryant, who have advance access to documents and witness statements via a secure computer system called Lextranet.
Mr Cameron's official spokesman this morning told reporters: 'We are confident that the list we published was correct.
'As I understand it, there is some revised evidence being presented to the inquiry this morning detailing meetings. I haven't seen that because it hasn't been published.
'Our list is based on our diary records and we believe those diary records are comprehensive.'
Mr Hunt had hoped the decision of Adam Smith to throw himself on his sword would buy him some breathing space.
But the Financial Services Authority is looking at claims that Mr Smith’s giving News Corporation price-sensitive information about its BSkyB takeover bid constitutes the serious offence of ‘market abuse’.
In addition, Mr Hunt will have to hand over copies of paperwork on the takeover and transcripts of his emails to Mr Smith to the Leveson Inquiry into press standards.
And Labour is demanding that David Cameron launch an investigation into whether Mr Hunt broke the Ministerial Code of Conduct because he is responsible for the behaviour of his special adviser.
But Mr Cameron's official spokesman this morning said he had no intention of asking Sir Alex to launch an investigation of the Culture Secretary's conduct.
The spokesman said: 'He has not done. He has no plans to do so. The PM has made very clear that he believes the Secretary of State acted properly.
'There is an inquiry ongoing that is looking at some of these issues and we should let that inquiry take its course.'
And today senior Conservative Bernard Jenkin, who chairs the Commons Public Administration Committee, joined Labour in calling for the matter to be referred to Sir Alex.
'There was clearly something of a breakdown of good process and good governance,' he told BBC Radio 4's The World at One.
'I think is is extraordinary that any special adviser should have anything to do with a secretary of state's quasi-judicial role in a matter such as a takeover bid and whether to refer that bid.
'We have a new Cabinet Secretary, Sir Jeremy Heywood, and he should demonstrate his independence and advise the Prime Minister. If he thinks there has been prima facie case of breach of the ministerial code, it should go straight to the independent adviser.
'It should be referred to Sir Alex Allan and he should decide whether there is a case to answer.'
Shadow Commons leader Angela Eagle, meanwhile, today claimed that Mr Hunt behaved like a 'dodgy football ref', as Labour sought to maintain pressure on him.
She said: 'Far from acting in a quasi-judicial capacity, the Culture Secretary has been acting like a dodgy football ref who not only favours one team but is in the dressing room with them planning the tactics.'
Riding the storm: Mr Hunt speaks at the launch of the London 2012 Cultural Olympiad at the Tower of London this morning
Under pressure: Jeremy Hunt reads out a statement to the House Of Commons yesterday in which he defended his actions as Culture Secretary during negotiations with News Corp to take full control of BSkyB
The widening of the crisis threatens David Cameron with new questions about the probity of his and other senior ministers’ contacts with Murdoch. The problem threatens to linger for months while Lord Justice Leveson continues his hearings.As Ed Miliband said the affair had cast a ‘shadow of sleaze’ over the Government, Mr Hunt gave a nervous and unsteady statement in the Commons. On a turbulent day at Westminster:
■ Mr Hunt acknowledged he publicly supported the Murdoch takeover before he was given responsibility for ruling on it in 2010;
■ Coalition sources conceded that Chancellor George Osborne and his closest adviser Rupert Harrison will have to hand over documents about their own roles in the affair;
■ Lord Leveson indicated he was not minded to grant Mr Hunt’s request to have his appearance at the inquiry brought forward;
■ David Cameron insisted Mr Hunt acted appropriately – despite failing to order his own investigation into his Cabinet colleague.
The crisis was triggered on Tuesday by the release of emails which indicate that Mr Hunt’s office operated a secret ‘back channel’ with the Murdochs to push through the takeover.
Mr Smith sought to save his boss yesterday by resigning and admitting that he went ‘too far’ in handing over highly detailed information about Mr Hunt’s plans for the bid to News Corp public affairs boss Fred Michel.
He insisted he acted ‘without authorisation’ from Mr Hunt, who was supposed to act as an impartial ‘quasi-judicial’ figure, rather than a politician, in deciding whether to refer the deal to the Competition Commission.
Dejected: Aide Adam Smith, Mr Hunt's special adviser, leaves the Department for Culture, Media and Sport after handing in his resignation yesterday
On the attack: Mr Miliband today accused David Cameron of using Mr Hunt as a 'firewall' to protect himself from the growing scandal
But the hopes of senior Tories that his departure would insulate the Culture Secretary were swiftly undermined. Sources close to the FSA confirmed that a January 2011 email in which Mr Michel said Mr Smith gave him ‘absolutely illegal’ advance information of a Commons announcement about the deal could fall foul of City rules.
Mr Murdoch today said he saw ‘nothing wrong in the activities’ of Mr Michel, but he was ‘surprised’ by the length of contact and number of emails with Mr Hunt’s office.
But the information could have affected the share price of both News Corp and BSkyB or could have allowed someone to trade shares using insider information.
FSA rules state: ‘It is an offence to disclose inside information to another person other than in the proper course of their employment, profession or duties. This is the Market Abuse offence of “improper disclosure”.’
Any investigation would be conducted in secret, would last a year and would become public only if wrongdoing was discovered.
Mr Smith might ultimately escape censure since FSA insiders say the announcement did not have a great effect on the share price. But that would not be the end of Mr Hunt’s problems.
The Culture Secretary insisted he did not know the ‘tone and volume’ of Mr Smith’s communications with Mr Michel.
He was unable to explain, however, why he did not keep closer control over his special adviser or why Mr Smith rather than an impartial civil servant was made the main point of contact with the Murdochs.
'Dear Fred': Text messages from Mr Hunt to Frederic Michel who is pictured, right, at his London home
Defence: David Cameron has taken a political gamble by standing by Mr Hunt
Mr Hunt said: ‘I will give my full record of events when I give evidence to Lord Justice Leveson. I am totally confident that when I present my evidence, the public will see that I conducted myself scrupulously throughout.’
Fighting for his political life: Mr Hunt arrives at the House of Commons yesterday
If the emails showed that Mr Hunt authorised his special adviser to leak the information, he would have to resign. Coalition sources also warned that the Chancellor and his special adviser could be asked to hand over documents relating to their involvement in the case.
Mr Michel said in one email to James Murdoch that he discussed the takeover bid with Mr Harrison, who said the case for the deal ‘would be made’ to the Department of Business and that they would have ‘an ongoing dialogue’.
Coalition officials say the Treasury lobbied for Mr Hunt to be given the job of deciding the fate of the bid after Vince Cable was stripped of the role when he was secretly recorded saying he had ‘declared war on Murdoch’. A Treasury source said: ‘If Leveson asks anything from us then of course we will provide it but George has repeatedly made clear he wasn’t involved in the process and wasn’t party to any of the decision making.’
Yesterday Mr Cameron took a political gamble by defending Mr Hunt to the hilt. He said: ‘In judging this important bid, the Culture Secretary sought independent advice from independent regulators at every stage, although he did not need to, and took that independent advice at every stage, although he did not need to.’
But the Prime Minister effectively admitted that the process of oversight run by Mr Hunt was flawed. Mr Cameron asked Cabinet Secretary Sir Jeremy Heywood to write to all Whitehall departments to remind them of the ‘rigorous process’ for dealing with quasi-judicial cases and the rules governing ‘all contacts with interested parties’.
Labour veteran Dennis Skinner mocked Mr Cameron over the resignation of Mr Smith. ‘When posh boys are in trouble they sack the servants,’ he said.
The Prime Minister’s official spokesman said Mr Cameron believes Mr Hunt acted properly, but was forced to concede that he had conducted no investigation into the affair.
The PM sought to kick the issue into the long grass by saying he would not respond to the affair until the Leveson conclusions have been published. But he faced demands that Mr Hunt face an investigation by Sir Alex Allan, the watchdog who polices the ministerial code of conduct, rather than Lord Justice Leveson.
Labour deputy leader Harriet Harman wrote to Mr Cameron identifying what she said were three specific breaches of the Ministerial Code by Mr Hunt. They were: failing to take responsibility for a special adviser, disclosing the contents of a parliamentary statement to News Corp before informing MPs, and failing to give ‘accurate and truthful’ information to Parliament on the release of communications between his department and News Corp.
‘These must now be referred to the independent adviser on ministers’ interests as a matter of urgency,’ she said.
Ed Miliband added: ‘While his Culture Secretary remains in place, while he refuses to come clean on his and the Chancellor’s meetings with Rupert Murdoch, the shadow of sleaze will hang over this Government. When is he going to realise it is time to stop putting his cronies before the interests of the country?’
Clegg's tennis connection with top News Corp lobbyist
by NICK MCDERMOTT
Tennis partner: Nick Clegg occasionally plays tennis with Frederic Michel and lives just a few streets away from him in Putney, London
At Prime Minister’s Questions, Mr Cameron said: ‘I think hand on heart, we all did a bit too much cosying up to Rupert Murdoch.’
The Deputy Prime Minister, who was sitting next to him, was seen to mouth: ‘No we didn’t’.
Senior Tories admitted that Mr Cameron was referring to the Tories and Labour Party, rather than Mr Clegg’s Lib Dems.
But questions were asked about Mr Clegg’s own links after it emerged that he is a some-time tennis partner of Fred Michel, the Murdochs’ chief lobbyist.
The pair, who both have young families, live a few streets apart in upmarket Putney, south-west London.
Despite their busy schedules, they have been known to play a few sets on one of the National Tennis Centre’s 22 courts in nearby Roehampton, according to friends.
They also send their children to the same primary school in the London borough of Wandsworth and meet at events.
Their warm relations might surprise many within Mr Clegg’s party, since last year the Deputy Prime Minister was firmly opposed to Rupert Murdoch’s plans to take full control of BSkyB.
A friend of 39-year-old Mr Michel said: ‘Fred was always boasting about how close he is to people in power. He couldn’t resist name-dropping, and said he knew Clegg really well.’
Mr Clegg, a keen tennis player since his days at Westminster School, has regularly been spotted playing on the Roehampton courts, which are run by the Lawn Tennis Association.
‘Tennis is a real passion for him and he has supported grassroots initiatives to get more young people playing,’ said a friend. ‘He likes to get a regular game in, and has been on the court with Mr Michel in the past.’ A spokesman for Mr Clegg denied last night that the two men have talked about the News Corp takeover bid for BSkyB.
‘The Deputy Prime Minister and Mr Michel both live in Putney and their children attend the same school,’ the spokesman said.
‘Mr Clegg has not met Mr Michel in his capacity as Deputy Prime Minister. The Deputy Prime Minister has no recollection of Mr Michel raising the bids when they have seen each other at the school gates but if Mr Michel had raised the bid with the Deputy Prime Minister, he would have made clear that the bid was a quasi-judicial matter for the Secretary of State.’
No one answered the door yesterday at the £1million terrace home Mr Michel shares with his wife Julia, 39, and their young family a short walk from the Thames.
An anglicised Frenchman, Mr Michel has become one of James Murdoch’s most trusted lieutenants since he was appointed News Corp’s director of public affairs for Europe in 2009.
His role was to network with government ministers and their special advisers to ensure the Murdochs gained full control of BSkyB.
The scores of emails exchanged between Mr Michel and Jeremy Hunt’s office during the bid process underscores his effectiveness.
Despite the deal eventually falling through after it was revealed the News of the World, which was also owned by the Murdochs, had hacked into Milly Dowler’s voicemail, Mr Michel was promoted within News Corp earlier this year.
Six vital questions that remain for Jeremy Hunt and David Cameron
Feeling the pace: The Prime Minister yesterday
Coalition insiders say it would have been better to appoint a more impartial figure such as Justice Secretary Ken Clarke instead. They claim the Treasury played a key role in ensuring Mr Hunt got the job. No 10 says that, as Culture Secretary, Mr Hunt was the obvious choice since his department covers the media. But he could have said his personal views ruled him out.
What conversations did Mr Hunt have with David Cameron and Andy Coulson (the PM’s former spin doctor and ex-editor of the Murdoch-owned News of the World) – about the BSkyB bid?
Mr Hunt has denied that he had any conversations with the Prime Minister or the No 10 communications director after he took control of the bid. But that does not preclude conversations with both men before December 2010. Opponents say that if Mr Cameron and Mr Coulson knew he supported the BSkyB bid they would have been more likely to put him in the key position.
Did Mr Hunt request his political special adviser Adam Smith – rather than a politically neutral civil servant – to be the main point of contact between the Department of Culture, Media and Sport and the Murdoch empire?
Mr Hunt was asked this question five times in the Commons yesterday and failed to provide a clear answer. He said Mr Smith was ‘one of many’ points of contact with the Murdochs, adding: ‘I don’t think the process was me asking for certain people to do certain roles. I think it was a fluid process.’ But he has not explained how Mr Smith became the key figure.
What did he authorise Mr Smith to tell the Murdochs?
Mr Hunt said he was unaware of the ‘tone and volume’ of Mr Smith’s emails to his News Corp contact, Fred Michel. But, crucially, that statement does not say the Culture Secretary was not aware of the content. The wording means Mr Hunt could have authorised the release of some information. Emails between Mr Hunt and Mr Smith are now expected to be handed to the Leveson Inquiry.
If Mr Hunt did not authorise Mr Smith to go as far as he did, why did he not pay far closer attention to what the adviser was doing?
The Ministerial Code of Conduct makes clear that as a Secretary of State Mr Hunt had the responsibility for Mr Smith’s actions. But he has failed to explain why he let Mr Smith go ‘rogue’. The code reads: ‘The responsibility for the management and conduct of special advisers, including discipline, rests with the Minister who made the appointment. Individual Ministers will be accountable to the Prime Minister, Parliament and the public for their actions and decisions in respect of their special advisers.’
How did News Corporation get highly detailed information about a Parliamentary statement on the takeover two days early in January 2011?
Mr Hunt yesterday made the astonishing claim that he and his office did not ‘leak’ his statement to the Murdochs. But Mr Michel was able to send James Murdoch a highly detailed account of Mr Hunt’s intentions before they were published. Mr Hunt told MPs he could not reveal the ‘true story’ of events until he testifies before Lord Justice Leveson.
Read more: http://www.dailymail.co.uk/news/article-2135234/Hunt-bay-Tories-crisis-Minister-faces-THREE-inquiries-adviser-quits-damning-Murdoch-emails.html#ixzz1tALtznzr
