Political sketch: Filleting Murdoch fils

At Leveson, Robert Jay QC questions James Rupert Jacob.

 

It was always going to be difficult to take seriously someone who sound like Montgomery Burns but an exception has to be made for James Murdoch.

He may have gone from Murdoch minor to Murdoch minus in the last eight months but he turned up at the Leveson inquiry still able to cause trouble just by saying yes or no. With his dad due as the main course tomorrow, James was always going to be a thin sort of hors d’oeuvre and not much for the audience to snack on.

Indeed, after his mafia-mauling at the hands of Labour MP Tom Watson he must have thought he’d faced the worst that Britain had to offer —but that was before he met the man with the yellow-framed specs.

Step forward Robert Jay QC, lead counsel and bearded tormentor-in-chief to the good, bad and sometimes irrelevant who have meandered their way through mostly Murdoch-matters since Leveson began his inquiry into media standards.

It was standing room only at the Royal Courts of Justice as Murdoch fils entered the nearest thing to a dock the inquiry has, and proceeded to kick off by admitting his full-name was James Rupert Jacob Murdoch.

That was probably the only willing admission made over the next five hours as Mr Jay proceeded to slice and dice his way through the email trail which marked Mr Murdoch’s journey from hero to zero during his four years at the helm of the British end of the global empire.

Earlier, the Press Association had confirmed it was a real story by issuing a flash that James had entered the gates of the Royal Courts "in a black Range Rover".

Even his wife had turned up, raising reporters' hopes of a repeat of the "left-hook" incident in the Commons when Rupert’s missus laid out a pie-waving protestor who sought his 15 seconds of fame. But there were no obvious marks to be seen from the forensic filleting of her husband by the quietly-speaking silk, although the thin Mr Murdoch did appear to be thinner still once the examination was over.

What we did discover was the length and breadth of the political contacts of the man who ran four British newspapers and BskyB on behalf of his dad.

And even before Mr Jay let him off the hook the Prime Minister had been forced into pledging “total confidence” in his Culture Secretary Jeremy Hunt in the fashion so beloved on football chairmen talking about their errant managers.

Well before we got to that, we discovered that James still knew nothing about phone hacking by journalists on the News of the World. Indeed, he told the inquiry he did not read the paper on a regular basis — nor the Sun — thereby giving him at least something to share with most of the people in the room.

But we did find out that James pledged the Sun’s support to David Cameron and the Tory Party over “drinks at The George” in September 2009, and agreed to let the news out for maximum effect the day after Gordon Brown was due to address the Labour Party conference.

And we learned he discussed the Scottish Sun’s support for Alex Salmond with a very supportive SNP leader at several social events north of the border before the general election.

We also learned that James would be shocked if anyone thought that pledging editorial support required a quid pro quo from News International. Lots of people in the room certainly looked shocked at something.

So James must have been even less shocked as Jay led him though a series of emails — note to company chiefs: never write it down — detailing the contacts between him, his office and that of Jeremy Hunt during the "quasi-judicial" consideration of the now-aborted bid by Murdoch et al. to buy up full control of BSkyB.

James headed for the hills of high principle as he was reminded of Business Secretary Vince Cable’s unfortunate boast that he was out “to get Murdoch” in the Telegraph sting that got him dropped from the decision.

But he was much less comfortable as Jay read from a series of messages implying close contact between him and his office and the Culture Secretary, then in charge of adjudicating on the bid. Jay said James was “somewhat blind” to the apparent horse trading between the Sun’s support for the Tory Party and its subsequent backing for the BSkyB takeover. James had his shocked look on again.

Tomorrow the inquiry finally turns its attention to the organ grinder and has set a day and a half aside to grill the octagenarian who has had his hand up the backs of British politicians for much of the last 40 years.  

Rupert Murdoch’s many and varied enemies will celebrate this rare chance to get him in court. 

But they should remember Rupert does not shock quite so easily.

Murdochs Major and Minor. Photo: Getty Images

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions

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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump