Political sketch: committee round two and beyond

Four dull, suited men take to the stage; eyes now turn to Leveson.

Those who had seen Murdoch the Movie were always going to be disappointed by the sequel. No Capo di tutti capi, no Consiglieri, and certainly no Momma with Attitude. Just a box, and someone called Pandora.

The House of Commons has played host to a number of memorable women in recent years: Maggie's friend Tina, Gordon's inamorata Prudence; but Pandora may turn out to be the best remembered of all. She comes in many guises and chose yesterday to be portrayed as four rather dull men in suits who share one thing in common: they all used to work for Rupert, his boy James, and a close friend called Rebekah.

The venue was Portcullis House and the same room where but a few short weeks ago the Murdochs and Co. appeared in front of MPs from the Culture, Media and Sport committee to deny all knowledge of the industrial scale phone-hacking going on at the News of the World; not to mention confusing facts like News International paying convicted criminal and former reporter Clive Goodman £240,000 to go away after his sentence, and continuing to pick up the legal bills of equally convicted non-employee Glenn Mulcaire.

It was these matters and others which brought former senior execs, ranging from the Head of HR to the Legal Manager of NI, in front of the committee to cast light on the darkness and end the confusion.

Basically, the MPs wanted one questioned answered: Was James Murdoch right when he said he had no knowledge that the scandal which has so far led to 15 arrests involved only Goodman. After three and a half hours of forensic questioning, MP Louise Mensch (chick-lit novelist Louise Bagshawe, as was) summed it up thus: "It's a clear as mud".

To be fair to the not-so-famous four, they seemed willing to give the right answers but you were never sure all the members of the committee were going to ask the right questions.

The first two out of the traps were the HR man, Daniel Cloke, and ex-Director of Legal Affairs, Jon Chapman, who both had obviously decided on the "no recollection" defence. Mr Chapman got a laugh out of admitting he came to be News International's legal man after cutting his teeth at Enron.

No one asked them why they had so recently quit the employment of the Murdochs, and when they left after an hour Pandora wondered why she had bothered to turn up.

But the one that the MPs wanted to let loose on was still to come. The wonderfully named Tom Crone was the News of the World's legal backstop for 20 years until he, too, found himself at home permanently, as the hacking and bribery scandal reached out to the highest echelons of the empire.

Mr Crone was accompanied by the only ex-Murdoch employee happy to be there: the last editor of the News of the World, Colin Myler, who enjoys the pleasure of having been working abroad when his predecessors Rebekah Brooks and Andy Coulson were at the helm. Myler also had the pleasure of ten minutes notice when Brooks told News of the World employees the paper was closing, but she was staying.

Mr Crone was clearly not popular with the committee and spent most of the next two hours staring down at the table in front of him, as if praying it might morph into the Tardis and whip him off.

Instead, he sweated his way through 120 minutes revealing little gems such as Andy Coulson wanting to give Clive Goodman a job back at the News of the World after his prison sentence, and that he got his quarter of a million pound pay off out of "compassion"; a word clearly much bandied about at the News of the World. He admitted that giving £450,000 to Professional Football Association Chief Gordon Taylor was "large", but that it wasn't to buy his silence.

But had James Murdoch been right when he told the committee in July that he had never been told there was anyone other than Goodman involved in phonehacking? Not so, said Tom Crone. There was "clear evidence" that hacking went further, and that was why the Taylor case had to be settled:

We had to explain the case to Mr Murdoch and get his authority to settle, so clearly it was discussed.

An hour later, James Murdoch said he stood by his original testimony, which is "an accurate account of events". Meanwhile, down the road Lord Leveson made the first moves in his inquiry into just how bad things were in the Street of Shame. He invited interested parties to apply to be "core participants"; willing to provide evidence.

A host of newspapers immediately said they would; apart for the Mail and the Mirror. The Mail can't yet, because editor-in-chief Paul Dacre is still on holiday.The Daily Mirror said it would not be seeking to testify before the inquiry.

Pandora just smiled.

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

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

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.