Tuesday 19 July 2011

Murdoch empire starts to fall apart

THE PHONE-hacking scandal has moved onto a new level in the last two weeks with arrests, resignations, apologies and recriminations.

Since my last post 12 days ago, the 168-year-old News of the World officially closed on 7 July and Rupert Murdoch withdrew his bid for full control of BSkyB on 13 July.

On 15 July, 11 days after it was revealed Millie Dowler's phone had been hacked, Rebekah Brooks - the chief executive of News International - eventually fell on her sword.

Two days later, on Sunday, she was arrested by the Metropolitan Police on suspicion of phone-hacking and making illicit payments to police officers. She was released on bail until October.

Just hours on from that, the country's most senior police officer, Met Police Commissioner Sir Paul Stephenson then resigned.

Stephenson had received criticism for hiring former News of the World executive editor Neil Wallis as an advisor and for using a luxury health spa owned by a company for which Wallis also worked.

But the Commissioner departed with a stinging criticism of his own in the direction of Prime Minister David Cameron for the PM's ill-judged appointment of former News of the World editor Andy Coulson as his director of communications.

It is worth noting here that Coulson had been arrested on 8 July for conspiring to intercept communications. On 14 July, Wallis was arrested under suspicion of committing the same offence.

Before Brooks' arrest on 17 July, News International used their own newspapers and others to print a full-page apology.

The apology took the form of a letter from Murdoch in which he wrote: "The News of the World was in the business of holding others to account. It failed when it came to itself.

"We are sorry for the serious wrongdoing which occurred. We are deeply sorry for the hurt suffered by individuals affected. We regret not acting faster to sort things out."

However, in the next line, Murdoch added: "I realise that simply apologising is not enough." Even the 80-year-old Australian media mogul appears to think he is a busted flush in Britain.

That so much was evident by spiking of the BSkyB bid, although Murdoch and News International took it upon themselves to give the government and Parliament perhaps one last run around.

First, Culture secretary Jeremy Hunt looked less than impressive in referring the bid to the Competition Commission shortly after Murdoch confirmed he was happy to do this.

And then Murdoch pre-empted a special debate in the House of Commons on the bid by withdrawing it before proceedings started anyway.

Nevertheless, the debate went ahead and the MPs acted as if a millstones had been removed from their necks and spoke against Murdoch and News International without fear of reprisal.

These were quite extraordinary moments with members on all sides of the House lining up to pour scorn on the man who has indirectly controlled British politics since the rise of Margaret Thatcher in 1979.

The British political system may remain far from perfect, to say the least, but it seems now to be free of the clutches of Murdoch at last.

Even former Prime Minister Gordon Brown was in the chamber for only the second time since his general election defeat last May.

And the former Labour leader used his rare appearance to lay into News International.

He accused NI of "law-breaking on an industrial scale" and claimed it had "descended from the gutter to the sewers".

Mr Cameron had pointed out earlier at Prime Minister's Questions that, despite there being questions over his relationship to Coulson, he had at least set up an independent inquiry which his predecessor Mr Brown had failed to do.

However, Mr Brown attempted to defend himself saying his moves to set up a judicial review were blocked by senior civil servants.

Meanwhile, his successor Ed Miliband has had his strongest few weeks since gaining the Labour leadership last September.

Mr Miliband was written off as a weak performer after mixed May election results.

But, in this scandal, he has been judged to have set the agenda, giving his personal poll ratings a much-needed boost to the heady heights of -28 'approval'. Mr Cameron remains ahead of Mr Miliband on -13, though.

And, of course, the Labour leader has not emerged entirely squeaky clean from the scandal himself after confirmation he had also attended events in Brooks' lair.

I guess the mere fact that Mr Miliband was even present as Leader of the Opposition just goes to show how deep Murdoch and the other top brass at News International had their claws into British politics.

Ah, Murdoch and Brooks - back to them, inevitably.

Inevitable because they will provide the next development of this fascinating story when they appear before a House of Commons Select Committee tomorrow.

There, we will see if Parliament really will show its teeth having been freed from the leash of the Murdoch empire.

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