Tuesday, July 19, 2011

Rupert Murdoch And James Murdoch Appear Before Parliament To Take Questions On Phone Hacking

Rupert Murdoch and his son James are being questioned by MPs at a hearing over the phone hacking crisis, in an appearance that the News Corporation chairman has described as the "most humble day" of his life.

The dramatic session, where an intruder attempted to attack Murdoch with a plate of foam, began with an apology.

Taking questions about the News of the World phone hacking scandal, James Murdoch was accused by the chair of the culture media and sport select committee, John Whittingdale, of misleading parliament.

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“It’s a matter of great regret … these actions do not live up to the standards that our company aspires to around the round”, the deputy chief operating officer and chairman and chief executive of News Corp’s international operations told MPs.

The younger Murdoch said they'd relied on reports from the Press Complaints Commission, independent lawyers and others, saying when the scandal broke it was unclear how widespread phone hacking he was. He said it was a matter of “deep regret” that “the facts could not emerge".

“We have established a group in the company cooperating very closely with the police on their investigation”, James Murdoch said. He highlighted the fact that News International had provided new information to the police.

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He defended Rebekah Brooks and Les Hinton, saying there was no evidence that either had been aware of the practice.

"Nonetheless, those resignations have been accepted."

Rupert Murdoch added that both top executives had asked to resign. He said Brooks had "insisted" on going as was "at a point of extreme anguish", and said he did not initially accept her resignation because he trusted her.

The chairman said he was "clearly" misled about phone hacking but did not know by whom. Pressed on Brooks' previous admission that she had paid police officers, Murdoch said he had not investigated the claims.

In a dramatic admission, Rupert Murdoch said he may have "lost sight " of the News of the World. He said he would only speak to the News of the World editor once a month or so, but would speak to the Sunday Times editor every Saturday.

Tom Watson, the Labour MP who pursued claims about phone hacking at the paper, asked Rupert Murdoch a series of questions about events at the company.

The News Corp CEO replied that:

  • He was unaware of News of the World reporter Neville Thurlbeck being found guilty of blackmail.

  • He was shocked and appalled when he heard about the Milly Dowler case
  • He was unaware of payments made to Gordon Taylor for privacy claims
  • James Murdoch also defended the £700,000 payout to Taylor, who is chief executive of the Professional Footballers Association, saying there was no new information about how widespread phone hacking was when he signed off the payment.

    "It was quite clear and quite likely that if litigated the company would lose that case."

    He told MPs that if he had known then what he now knew he still would have made the payment, but would have contacted police and put a process in place for admitting liability and apologising to the victims for phone hacking which was "absolutely inexcusable".

    "We would have taken more action around that and moved faster to get to the bottom of these allegations."

    James Murdoch said he was "surprised" that News International had contributed to the legal fees of Clive Goodman and Glenn Mulcaire, who were jailed in 2007 for tapping the phones of royals.

    He said he was "as surpised as you are" that payments had been made to help Glenn Mulcaire's legal fees. He said he knew certain legal fees had been paid but did not know if they were ongoing, and had asked them to be ceased.

    Rupert Murdoch said the payments "could have been" authorised by the then chief legal officer, Tom Crone, or Les Hinton.

    He also replied to questions about the closure of News of the World. He said his company was making every effort to give jobs to former journalists at the paper who were not guilty of wrongdoing

    He also said he felt "ashamed" of what had happened at the News of the World.

    "We had broken our trust with our readers," he told the committee.

    Murdoch senior also told the ministers that he had no recollection of meeting former News of the World executive Alex Marunchak, who worked for the Metropolitan Police for 20 years as a translator.

    Questioned over his relationship with Prime Minister David Cameron, Rupert Murdoch said he was "told" to enter Number 10 from the back door after the 2010 election.

    "I was asked, would I please come in through the back door".

    He also said that switching the Sun support to David Cameron away from Labour had cost the paper 200,000 readers.

    He added that he would "absolutely" co-operate with further investigations, including any examining claims that the paper attempted to hack the phones of 9/11 victims.

    Murdoch said he was not ultimately responsible for the scandal and blamed it on the people he "trusted", and the people they in turn trusted. But he stood by Les Hinton, the recently resigned Dow Jones chief and former News International chief executive, saying that he would trust him with his life.

    live blog

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    Today 11:02 AM

    JonnieMarbles

    @ JonnieMarbles : It is a far better thing that I do now than I have ever done before #splat

    Today 11:01 AM

    charltonbrooker

    @ charltonbrooker : I don't think I can stand the weirdness of this whole thing any more. It's like the news is melting.

    Today 11:01 AM

    jamesrbuk

    @ jamesrbuk : Got to wonder what kind of *moron* thinks attacking an 80-year-old helps *his* side of the argument look good.

    Today 10:55 AM

    Somebody has interrupted the sitting and the police have rushed towards Rupert Murdoch.

    Television cameras show police holding a man in the hearing room.

    The man is young and wearing a checked shirt. He appears to have a bandage or paint on his face.

    The committee has been suspended for ten minutes.

    In the replay it appears that Murdoch has white paint of some other substance on his shoulder. The panic is evident on James Murdoch's face in the clip.

    The BBC's Nick Robinson says it was shaving foam and that he shouted the word "greedy" as he threw the plate at Murdoch.

    Today 10:53 AM

    paulwaugh

    @ paulwaugh : RMurdoch on prime minsters:"I wish they would leave me alone." Funniest line of the hearing.

    Today 10:46 AM James and Rupert Murdoch

    Rupert: "We’re a very big company, I’m sure there are people who try and please me, that could be human nature, it’s up to me to see through that."

    Damian Collins asks him if his company pushes its editors too far and causes them to break the law.

    "There is no excuse for breaking the law at any time" Murdoch says.

    "There is an excuse to campaign for changing the law, but never to break it."

    "I was brought up by a father who was not rich but was a great journalist. Just before he died he bought me a small paper, specifically saying he wanted to give me the chance to do good."

    Today 10:45 AM James and Rupert Murdoch

    James steps in on the journalism question. He says that "breaking the law is a serious matter" and that as for phone hacking and other techniques they are totally unacceptable.

    Today 10:44 AM James and Rupert Murdoch

    Murdoch is asked about the limits of investigative journalism. He brings up MPs expenses. He says that it "caused a huge outcry, one that hasn't been properly addressed". He says that Singapore is the most open society in the world where "ministers are paid over a million dollars" and there is subsequently no temptation for corruption.

    Today 10:41 AM James and Rupert Murdoch

    Rupert is asked if James' position is an indication of nepotism.

    He says that when James took over at News International "the press all had a field day". When he was promoted he says he had calls from shareholders who all approved of the job he had done at News International.

    Today 10:37 AM Yates

    Number Ten have released the emails sent between Ed Llewellyn and Yates that were referred to in the earlier hearing. They have also said that arrangements for entering and leaving the building are made by mutual consent.

    10 September 2010: John Yates to Ed Llewellyn Ed, Hope all well.

    I am coming over to see the PM at 12.30 today regarding [redacted: national security] matters. I am very happy to have a conversation in the margins around the other matters that have caught my attention this week if you thought it would be useful.

    Best wishes, John

    Response:

    10 September 2010: Ed Llewellyn to John Yates John - Thanks - all well.

    On the other matters that have caught your attention this week, assuming we are thinking of the same thing, I am sure you will understand that we will want to be able to be entirely clear, for your sake and ours, that we have not been in contact with you about this subject.

    So I don't think it would really be appropriate for the PM, or anyone else at No 10, to discuss this issue with you, and would be grateful if it were not raised please.

    But the PM looks forward to seeing you, with Peter Ricketts and Jonathan Evans, purely on [redacted: national security] matters at 1230.

    With best wishes,

    Ed

    Today 10:34 AM James and Rupert Murdoch

    James Murdoch is asked how a paper like the News of the World is run.

    "I can't say I was ever intimately involved."

    It is suggested that for instance he receives revenue, sales, subscriptions. Rupert jumps in and says he gets that every week.

    Today 10:32 AM

    piersmorgan

    @ piersmorgan : Rupert called me every week for 18ms on News of the World - rarely asked about anything but what stories we had that week. #Murdoch

    Today 10:22 AM

    gilescoren

    @ gilescoren : Is Rebekah pacing the corridor outside, chugging fags, looking at her watch and saying, "What the FUCK are they doing in there?"

    Today 10:21 AM James and Rupert Murdoch

    Farrelly asks:

    "The Sunday Times said in a recent article that the new paperwork discovered by News International, and disclosed to the police, named various News International figures who were "gatekeepers" to the phone-hacking information. The article said they included Alex Marunchak, Greg Miskiw, Clive Goodman, Neville Thurlbeck and Ian Edmondson. Was that right"

    James Murdoch says that he does not want to answer for legal reasons.

    Today 10:19 AM

    Lord_Sugar

    @ Lord_Sugar : Bloody stupid questions to Rupert about micro detail when N.O.W represents 1% of his empire. Waste of time trying humiliate the old man.

    Today 10:18 AM

    campbellclaret

    @ campbellclaret : Don't know whether to be flattered to be confused by Rupert Murdoch with the Prime Minister. Ps the invite came from News International

    Today 10:16 AM

    Lord_Sugar

    @ Lord_Sugar : Bloody stupid questions to Rupert about micro detail when N.O.W represents 1% of his empire. Waste of time trying humiliate the old man.

    Today 10:16 AM

    Lord_Sugar

    @ Lord_Sugar : Bloody stupid questions to Rupert about micro detail when N.O.W represents 1% of his empire. Waste of time trying humiliate the old man.

    Today 10:13 AM James and Rupert Murdoch

    Farrelly asks: was there an expletive you used when you read these emails?

    "My immediate reaction was to agree with the recommendation of the executives involved."

    Today 10:12 AM

    arusbridger

    @ arusbridger : James M : I was 'surprised and shocked' we were paying Mulcaire's fees Doesn't read the Guardian then http://bit.ly/gCn8gy

    Today 10:12 AM

    alexheard

    @ alexheard : What a small (lying) hole they're successfully running through: Too dumb to know this was hap'ning; smart enuff to still run the biz.

    Today 10:11 AM

    emilybell

    @ emilybell : Farrelly now on the email issue: 'tell us when you first came to know about email file?' JM ' a few months ago'

    Today 10:07 AM James and Rupert Murdoch

    On the payments to Mulcaire James said "I asked for a way to make that cease".

    Rupert says that unless it leads to a breach of contract he will stop paying any legal fees, if those fees are still being paid.

    Today 10:05 AM James and Rupert Murdoch

    James again confirms that News International did pay legal fees for Glenn Mulcaire.

    Today 10:04 AM

    JeffRandallLive

    @ JeffRandallLive : 4pm update: News Corp up 4.3% at $15.61. BSkyB up 2.3% at 730p

    Today 10:04 AM James and Rupert Murdoch

    At the Guardian Matt Wells says James is 'breezing through' this hearing:

    "Murdoch Jr is breezing through the answers. He's appearing humble, regularly expressing regret and apologising. He has adopted a tone of helpful contrition - appearing more like a Church of England parson than the brittle, short-tempered man that those who work with him would find hard to recognise. And Rupert Murdoch hasn't said much for a while: good move, as News Corporation stock is up 3%."

    Today 10:03 AM James and Rupert Murdoch

    Does Rupert wish he had accepted Brooks' resignation earlier due to the people who lost their jobs?

    "I regret very much the failure of the people who will not be able to find work. The two decisions were totally unrelated."

    Rupert says he doesn't really remember if he did say Brooks was his "priority" when he first arrived in London. He doesn't deny that he said it, he just says he was jumped by reporters.

    Today 10:00 AM James and Rupert Murdoch

    Why did Les Hinton resign, Davies asks.

    Rupert says Hinton felt responsible.

    Why did Rupert not accept Brooks' resignation the first time around?

    "I believed her and I trusted her and I do trust her."

    What was different second time around?

    "In the event she just insisted. She was in extreme anguish."

    Today 9:58 AM James and Rupert Murdoch

    James is asked is any payments were made to Glenn Mulcaire and others after 2007.

    James says he was "very surprised" to find the company had paid some legal fees.

    "They were done as I understand it in accordance with legal counsel."

    James says he doesn't have the details.

    Rupert intervenes to say that it would have been "above" managing editors. James re-intervenes to say it would have been legal advice.

    Philip Davies says he is "getter further" with Rupert.

    Asked if it was Les Hinton, Rupert says "it could have been". He says it would have been a chief legal officer.

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    My favorite moment, Wendy Murdoch the Elder Murdoch's wife jumping up to defend hubby from pie attack.

    Posted via email from Brian's posterous

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