Jeremy Hunt sent text congratulating Murdoch over BSkyB ruling

 
Leveson questions: Jeremy Hunt arrives at the Inquiry today

Jeremy Hunt sent a congratulatory text message to James Murdoch on the day he took over News Corporation’s £8 billion BSkyB bid, it emerged today.

The Culture Secretary wrote to the News Corp chairman hours before he was put in charge of media competition issues, warmly welcoming the European Commission’s decision not to block the takeover.

“Great and congrats on Brussels. Just Ofcom to go,” Mr Hunt texted on December 21, the day Business Secretary Vince Cable was removed from presiding over the bid.

The text was disclosed as Mr Hunt gave evidence under oath to the Leveson inquiry. It heard that he also sent a number of messages the same day to Chancellor George Osborne and former No 10 spin doctor Andy Coulson, saying he was “seriously worried” Mr Cable was damaging the Government.

His panicky text to Mr Osborne warned: “Am seriously worried we are going to screw this up”. The Chancellor responded, as Mr Hunt was being put in charge of the BSkyB decision: “I hope you like solution!”

The reply suggested Mr Osborne was involved in the decision to hand responsibility for the bid to the Culture Secretary, even though he had previously supported the Murdoch takeover.

The exchanges came after Mr Cable had been caught by undercover reporters saying he had “declared war on Mr Murdoch” by referring the BSkyB bid to media regulator Ofcom.

In a dramatic day of evidence, Mr Hunt admitted making errors of judgment but insisted he handled the bid without bias. The inquiry also heard:

Mr Hunt accepted he should not have had a phone call with James Murdoch without an official listening in to take notes. He admitted he was “broadly sympathetic” to the bid from the very start as he could not see a major media plurality problem.

He insisted he could rule on BSkyB with fairness, setting aside his personal views, as no one made a quasi-judicial decision with a “brain wiped clean”.

Mr Hunt used a personal Googlemail account — a device that has faced accusations it is a way for Whitehall to avoid freedom of information laws.

He denied claims he hid behind a tree to escape journalists just before he had dinner with Mr Murdoch. Labour accused Mr Hunt of “colluding” with News Corp and lying to Parliament, claims denied by Tories.

The inquiry was told of extraordinary exchanges on December 21, 2010, the day Mr Cable was stripped of his responsibility for the BSkyB bid at about 5pm. Some five hours earlier, Mr Hunt had texted James Murdoch, chairman of BSkyB, saying: “Sorry to miss your call. Am on my mobile now. Jeremy.”

Six minutes later Mr Murdoch, re-sponded: “Have to run into next thing. Are you free after 2.15. I can shuttle after this.” At 12.57pm Mr Hunt texted: “Great and congrats on Brussels. Just Ofcom to go.” By mid-afternoon news broke of Mr Cable’s comments. Mr Hunt’s special adviser Sue Beeby sent him details at 3.50pm and the Cabinet minister spoke to James Murdoch at about 4pm. “That was Mr Murdoch expressing his concern that there was bias in the quasi judicial process because of what Mr Cable had said,” Mr Hunt told the inquiry. “I think he was just saying he was totally horrified that this seemed to show ... acute bias.”

Mr Hunt sent two texts to Mr Osborne at 4.08pm. The first said: “Can we chat about Murdoch Sky bid. Am seriously worried we are going to screw this up. Jeremy.”

The second said: “Just been called by James Murdoch. His lawyers are meeting now and saying it calls into question legitimacy of whole process.” At 4.10pm Mr Hunt emailed Mr Coulson saying: “Could we chat about this, I’m seriously worried Vince will do real damage to Coalition with his comments.”

Q&A

How important is today’s hearing?

Jeremy Hunt’s survival as a Cabinet minister is at stake and any slip today could see him fired as Culture Secretary. That in turn puts the spotlight on the judgment of David Cameron, who will appear in the witness box on June 14. The potential for political fall-out is massive.

Why is Mr Hunt’s job on the line?

The 45-year-old was given responsibility for judging Rupert Murdoch’s BSkyB takeover bid in December 2010. Business Secretary Vince Cable lost the role after saying that he had “declared war” on Mr Murdoch.

But the Leveson inquiry has heard claims that Mr Hunt had himself shown bias by writing a memo backing the bid, remaining friendly with a Murdoch lobbyist while sitting in judgment, and having his special adviser Adam Smith act as a secret back channel with the lobbyist.

How close were these contacts?

Mr Hunt and his officials exchanged 799 text messages with News Corp lobbyist Frédéric Michel during the takeover saga, as well as 191 telephone calls and 158 emails. Mr Smith resigned after it emerged that he gave Mr Michel advance information on a key announcement.

What was Mr Hunt’s relationship like with Mr Michel?

By a staggering coincidence, their wives gave birth in the same hospital ward at the same time. Mr Hunt called the French lobbyist “papa” and “mon ami” in friendly texts. In one, he said: “Merci, hopefully when consultation over we can have a coffee like the old days!”

Who was the memo sent to?

Directly to the Prime Minister, which critics say showed Mr Hunt intervening to influence the process of judging the planned takeover while Mr Cable was still in charge. Dated November 19, 2010, it said: “James Murdoch is pretty furious at Vince’s referral [of the bid] to Ofcom. He doesn’t think he will get a fair hearing from Ofcom.”

Mr Cameron later put Mr Hunt in charge, despite knowing that he had firm views on the issue.

Did Mr Hunt break any rules?

The Ministerial Code states that ministers are responsible for the conduct of special advisers such as Mr Smith, so Mr Hunt could have been in breach despite his insistence that he did not know what was happening.

However, if Mr Hunt can convince Leveson that he put his friendships and former views to one side when he judged the bid, he might be safe.

Hunt’s allies say that he was tough on the bid, putting up hurdles and referring it to Ofcom. He has insisted he acted with “total integrity” and “scrupulous fairness”.

Day of twin dramas makes ministers look less competent

Commentary: Joe Murphy

First it was an omnishambles. Now it is looking über-cynical.

Today was the biggest event so far in the Leveson inquiry, the grilling under oath of a nervous-looking Jeremy Hunt about his over-friendly dealings with the Murdoch empire.

No killer facts had emerged at the time of writing but the masses of texts and memos revealed are pretty bad for the Culture Secretary, a likeable man who seems to have been pulled too deep into the News Corp web.

A big surprise was the disclosure of text messages between Hunt, Andy Coulson and George Osborne on the day that Vince Cable was caught saying he had “declared war” on Murdoch.

Osborne hoped that Hunt would like the “solution” they had cooked up — putting the Culture Secretary in charge of the bid in Cable’s place. Any hint that Osborne, who is David Cameron’s closest ally and probable successor, is tainted is simply dynamite.

Just as this was emerging, the Treasury was announcing its climbdown on the charity tax.

It was obviously decided in a hell of a rush — as recently as Tuesday sources close to Mr Osborne flatly denied that any U-turn was in the offing on this issue, in the vain attempt to dissuade the Standard from running a story that the Chancellor was under pressure to stage one.

The overall effect of today’s twin dramas is to make the Government look less competent and less trustworthy — the two attributes that its leaders need most of all if they are to win in 2015.

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