Public Confidence in the Media and Police

We heard yesterday from people who said that they did not know about hacking and that they did not authorise payments for it. It is extraordinary that those executives did not take their responsibilities for corporate governance seriously enough to determine who did know about hacking, who authorised it and who paid for it. This question is not just for the House, but for the shareholders of News Corp and News International. How can those shareholders have confidence in a management that, six years on, has failed to find out those simple facts and to hold people to account? The £500,000 settlement to Gordon Taylor was discussed at the time by James Murdoch and Rebekah Brooks in a meeting with other officers of News Corp and News International. They were discussing a payment to someone who was the victim of the company's illegal practices, so the House must consider whether it is at all credible that at that meeting James Murdoch did not put one simple question: why do we have to pay this money? Any chairman would want to know the full details of why he was being asked to make such a payment, so of course he was told the details of the breaches of privacy suffered by Gordon Taylor and others. However, any semi-conscious corporate lawyer would ask a further question: what is the full extent of our liability? When James Murdoch asked that question, it is inconceivable that he would have accepted anyone answering, ““We don't know,”” or, ““We haven't bothered to find out,”” yet in effect that was the response that he and his father gave to the Culture, Media and Sport Committee yesterday. Had he received such a response, I think that his answer would have been swift and sharp. If the House accepts that that question must have been asked and then fully and honestly answered, it follows that James Murdoch knew that Jon Chapman and Daniel Cloke had full knowledge of the extent of the phone hacking because, of course, they reviewed the files given to Harbottle & Lewis. James Murdoch told the Select Committee that he did not tell his father about the £500,000 payment to Gordon Taylor until after it had been made in 2009. He did not explain why he had failed to tell his father that he knew what Chapman and Cloke knew, namely that widespread hacking and illegality had taken place, and that that was why they had to buy Gordon Taylor's silence. The files at Harbottle & Lewis are crucial. Yesterday, James Murdoch told Parliament that the actions of News Corp did"““not live up to the standards that our company aspires to…and it is our determination to put things right””," yet News Corp has refused to allow Harbottle & Lewis to release those documents to the police. Being determined ““to put things right”” starts with releasing those files. Why, in 2009, did Deputy Commissioner Yates decide that there was no new evidence in The Guardian's revelations about the hacking of Gordon Taylor? Mr Yates has been at pains to insist that this was not a full-scale review. I accept that, but it takes not even eight minutes, never mind eight hours, to appreciate that the reason why there was new material evidence was that a royal correspondent—the subject of the original investigation—would not have been doing an investigative story on the chief executive of a football association. In other words, that gave the lie to the widespread assumption that this was just one rogue reporter.