BRITAIN’S CULTURE secretary sent James Murdoch a message of support for a major takeover on the day he was put in charge of adjudicating on the bid, a public inquiry has heard, piling pressure on a government already accused of colluding with the media boss.
Evidence given yesterday to the Leveson inquiry into media ethics and standards showed that government ministers, including culture secretary Jeremy Hunt and chancellor George Osborne, worked frantically one day in 2010 to reassure Mr Murdoch that they supported his $12 billion (€9.7 billion) bid to buy a pay-TV company in which he held a minority stake.
The government’s handling of the News Corp bid for a majority stake in BSkyB has become a key aspect of the controversy over whether James Murdoch and his father, Rupert, had excessive influence on politicians, enabling them to bypass the regulatory process and promote their business interests.
“Great and congrats on Brussels, just Ofcom to go!” Mr Hunt texted to James Murdoch, referring to a decision by EU regulators in Brussels to approve the BSkyB takeover and to a decision yet to be taken by the British regulator, Ofcom.
Mr Hunt was trying to reassure “a furious” James Murdoch after the minister originally overseeing the takeover, Vince Cable, was removed after being secretly recorded saying he had “declared war” on Mr Murdoch over the bid, the inquiry was told.
When News Corp complained about the government’s conduct, Mr Hunt contacted Mr Osborne and officials in the prime minister’s office to rally support for Mr Murdoch. Hours later Mr Hunt, who had already made it clear he supported the bid, was put in charge of ruling on the takeover.
“Cld we chat about Murdoch Sky bid? Am seriously worried we are going to screw this up,” Hunt said in one text to Mr Osborne. Mr Osborne responded that he hoped Mr Hunt “liked the solution”, a reference to the decision to put Mr Hunt in charge of the bid.
The opposition Labour Party called on Mr Hunt to resign after evidence submitted to the Leveson inquiry revealed that a Hunt aide leaked sensitive information to News Corp after Mr Hunt had been put in charge of the matter.
Labour has accused the Conservative/Liberal Democrat government of wanting to approve the deal to ensure it continued to receive favourable treatment from the Murdoch newspapers in Britain.
The evidence has also raised questions over prime minister David Cameron’s judgment in putting Mr Hunt in charge of the bid. – (Reuters)