24 Jan 2011

Impartiality questions over Prime Minister and BSkyB deal

The Prime Minister’s private dinner with News Corporation executives raises questions over his impartiality in the light of News Corp’s attempt to take over BSkyB, one MP tells Channel 4 News.

David Cameron had a private dinner with Rebekah Brooks and James Murdoch (Reuters)

The Labour MP, Tom Watson, demanded to know whether Prime Minister David Cameron would be holding any meetings with Rupert Murdoch, the head of News Corporation, on his visit to the UK over the next few days.

Mr Watson told Channel 4 News that “deep questions” over impartiality had been raised by the news revealed in the Independent, that Mr Cameron and his wife dined privately with Mr Murdoch’s son and chairman of News Corp in Europe and Asia, James Murdoch, as well as News International Chief Executive Rebekah Brooks and her husband, over Christmas.

A spokesman for Number 10 declined to comment on what meetings Mr Cameron would be having in the following days, and also declined to comment on his attendance at the dinner – adding that any such meeting would have “no bearing” on the Government’s handling of the News Corp bid for full control of BSkyB.

Shadow Culture Secretary Ivan Lewis has written to the Prime Minister about the meetings.

He said: “David Cameron’s decision to attend this dinner with James Murdoch and Rebekah Brooks in the middle of a quasi-judicial process raises serious questions about his judgment. I am writing to the Prime Minister today asking him to give straight answers to five key questions. The integrity of our media is central to our democracy. That is why his answers are of significant public interest.”

Impartiality

The Murdochs’ company, News Corp, is attempting to take over the remaining 61 per cent of BSkyB that it does not already own, in a deal worth around £7.5bn.

The deal has already been referred to Ofcom over the risk to the plurality of the media, and Business Secretary Vince Cable’s comments that he had “declared war on Murdoch” over the deal cost him his role overseeing it – with the responsibility transferred to Culture Secretary Jeremy Hunt. Mr Hunt is expected to announce in the next few weeks – or even days – whether he will refer the deal to the Competition Commission.

Infographic - who met who for dinner in the context of the News Corp and BSkyB deal

“David Cameron took Vince Cable off this deal over the question of impartiality,” Mr Watson told Channel 4 News. “And now there are deep questions about his impartiality.”

The dinner took place just days after Mr Cable was stripped of his responsibility for the deal, which Mr Watson said “raises questions about David Cameron’s judgement.”

Mr Watson has written to the Cabinet Secretary, Sir Gus O’Donnell, about the dinner, asking whether he was aware of it and what his advice was – as he believes a civil servant ought to have been present due to the “political and legal sensitivity”.

His Labour party colleague Mr Lewis has also sent a letter, in his case to the Prime Minister. His asks five questions, including: “Can you clarify whether you discussed News Corp’s bid for BSkyB with Mr Murdoch? Can you confirm the date of the dinner, and whether you informed the Cabinet Secretary of your intention to attend in advance and what advice you received? Can you confirm whether attending such a dinner, in the middle of a quasi-judicial process being conducted by one of your ministers, is consistent with the Ministerial code?”

He also asks: “Can you disclose whether you – or any of your officials – have had, or intend to have, any discussions with Jeremy Hunt regarding the acquisition of BSkyB since the 31 December? Can you confirm whether or not you will be meeting with Rupert Murdoch prior to Jeremy Hunt making the decision on whether to refer the acquisition of BSkyB to the Competition Commission?”

The pressure on the Prime Minister and Mr Murdoch comes the week after the Prime Minister’s Director of Communications Andy Coulson resigned amid allegations that he oversaw a culture of phone hacking while he was editor of the News of the World – a paper owned by the Murdoch media empire.

Despite Mr Coulson’s resignation, the spotlight on phone hacking has continued – with other papers, as yet unnamed, potentially being drawn into the scandal.

Read more from Channel 4 News - Phone hacking: the story that won't go away 

Visit

Rupert Murdoch is visiting the UK en route to the World Economic Forum in Davos.

Mr Watson told Channel 4 News questions should be asked over whether Mr Cameron would also meet the senior member of the family after his private dinner with James.

“I want to know does the Prime Minister plan to meet Rupert Murdoch? Will he meet him in private? And if it is in private, will he guarantee that a civil servant will be present?” he said.

A spokesman for David Cameron declined to comment on the Prime Minister’s meetings, saying that commenting ahead of meetings was not the process.