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News Corporation subsidiary fined $300m

News America Marketing must pay damages to a newspaper coupons company after losing law suit

A News Corporation subsidiary was yesterday ordered to pay a newspaper coupons company $300m (£182m) in damages after it lost a law suit in the US.

A Michigan court judge awarded Valassis Communications the damages after the firm filed a lawsuit against News America Marketing alleging that it had engaged in unfair competition and “tortious interference” (when an individual or company wrongfully interferes in the business interests of another firm).

A jury in the Wayne County circuit court in Michigan found News America Marketing liable on both counts, Reuters reported Valassis as saying.

News America Marketing will appeal the decision. Chris Mixson, the company’s president, said. “We are disappointed with today’s decision, which rewards a company that turned to litigation as its business strategy rather than compete,” Mixson added.

Mixson said the jury was “hampered” by the court’s decision not to allow News America Marketing to introduce to the court a Federal Trade Commission analysis that Valassis had made an “effort to induce collusion” when it announced a new pricing policy in a conference call with investors.

“This information would have shown that this lawsuit was merely part of a larger strategy to get News America Marketing to raise its prices, a move that would have affected both our clients and their consumers by reducing the number of coupons available – a consequence that would be extremely unfortunate in this economy,” he added.

Valassis also has lawsuits pending against the News Corp subsidiary in a federal court in the eastern district of Michigan and the California supreme court in Los Angeles.

The company’s share price jumped as much as 64% in morning trading after the court decision was made public in the US yesterday before slipping back to 45% higher by the afternoon, according to Reuters.

Valassis shares were up $3.17 to $10.20 on the New York Stock Exchange, while News Corp shares were up 3.1%, at $9.97 on the Nasdaq stock market.

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CPS to ‘urgently review’ News of the World case

• Metropolitan Police rules out new investigation
• News International: ‘Confidentiality obligations’ prevent comment on ‘certain’ Guardian allegations
• Andy Coulson may face Commons culture select committee
• David Cameron defends his communications chief
• Gordon Brown: ‘This raises serious questions’

The Crown Prosecution Service today said it would undertake an urgent review of evidence in the News of the World phone hacking case, after the Metropolitan Police revealed it did not plan a further investigation of the allegations.

However, Andy Coulson, the former News of the World editor, now the Tory communications chief, could be grilled by MPs for a Commons inquiry into the affair.

Keir Starmer QC, the director of public prosecutions, said he had ordered an “urgent examination” of material provided by the police in the News of the World case three years ago. He added that the process will take time but he hopes to make a further statement in coming days.

“I have no reason to consider that there was anything inappropriate in the prosecutions that were undertaken in this case,” Starmer added.

“In the light of the fresh allegations that have been made, some preliminary inquiries have been undertaken and I have now ordered an urgent examination of the material that was supplied to the CPS by the police three years ago.

“I am taking this action to satisfy myself and assure the public that the appropriate actions were taken in relation to that material.”

John Yates, the Metropolitan Police’s assistant commissioner, said that no further evidence had come to light since Scotland Yard’s original investigation, which led to the News of the World’s royal editor, Clive Goodman, and a private investigator, Glenn Mulcaire, being jailed for four and six months respectively in January 2007 after they were found guilty of hacking into the mobile phones of royal household staff. Coulson also resigned after Goodman was jailed in January 2007.

Speaking outside Scotland Yard in central London, Yates said he was not involved in the original Mulcaire and Goodman investigation and had reviewed the facts of the case with “an independent mind”.

He added that Mulcaire and Goodman targeted potentially “hundreds” of people, but the pair “used the tactic [of phone-hacking] against a … small group of individuals”. He said all those individuals were notified that their phones had been targeted. “Where there was tapping they were contacted by police,” Yates said.

“In the vast majority of cases [the Met originally looked into] there was insufficient evidence to show that tapping had actually been achieved. No additional evidence has come to light since this [case] was concluded … no further investigation is required.”

Yates added that the original investigation had “not uncovered any evidence that John Prescott’s phoneline had been tapped”.

John Whittingdale MP, the Conservative chair of the Commons culture select committee, said today it was “highly likely” to call Coulson to give evidence as part of an investigation into how journalists at the paper obtained information and whether executives knew about the methods they employed.

The investigation has been prompted by the Guardian’s revelations that News Group Newspapers, the News International subsidiary that publishes the Sunday tabloid, has paid a total of £1m in out-of-court settlements to three people whose mobile phones were hacked into. They included Gordon Taylor, the chief executive of the Professional Footballers’ Association, who received £700,000.

That has prompted a political storm today, with Home Office minister David Hanson forced to take emergency questions from angry MPs on the matter during a hastily-convened session at the House of Commons this morning.

News of the World parent company News International today broke its silence on the phone-hacking affair, but did not deny any of the Guardian’s allegations.

The company said its journalists fully complied with relevant legislation and codes of conduct since February 2007, after the Goodman case and Coulson’s resignation, but that it was legally bound to not discuss some of the Guardian’s allegations.

“News International is prevented by confidentiality obligations from discussing certain allegations made in the Guardian newspaper today,” the company said.

“Since February 2007, News International has continued to work with its journalists and its industry partners to ensure that its journalists fully comply with both the relevant legislation and the rigorous requirements of the PCC’s Code of Conduct. At the same time, we will not shirk from vigorously defending our right and proper role to expose wrongdoing in the public interest.”

Gordon Brown, the prime minister, has also mentioned the row about phone-hacking today at a press conference in L’Aquila, Italy, where he is attending the G8 summit.

“I am not aware of the details of what is being talked about, other than that there is an issue on this in London,” Brown said. “I think this raises questions that are serious and will obviously have to be considered, but I understand that the police are looking at a statement later today and I do not think I should say any more than that.”

David Cameron, the Conservative leader, is facing calls for Coulson to quit as his director of communications. This morning Cameron was forced to defend the former News of the World editor, telling reporters outside his home in London: “It’s wrong for newspapers to breach people’s privacy with no justification. That is why Andy Coulson resigned as editor of the News of the World two and a half years ago.

“Of course I knew about that resignation before offering him the job. But I believe in giving people a second chance. As director of communications for the Conservatives he does an excellent job in a proper, upright way at all times.”

Some of the most powerful figures in Rurpert Murdoch’s News Corporation media empire will also be asked to give evidence by MPs on the culture select committee when they begin their phone-hacking investigation next Tuesday.

They include Rebekah Wade, the outgoing Sun editor who has been promoted to News International chief executive; Stuart Kuttner, the News of the World’s outgoing managing editor; Colin Myler, the current News of the World editor; and Les Hinton, the former chairman of News International.

Whittingdale also said that Nick Davies, the Guardian journalist who broke the story, will be asked to appear at the hearing about the controversy. Coulson will be asked to give evidence after that hearing has taken place.

The select committee quizzed Hinton, who ran Rupert Murdoch’s stable of British newspapers until the end of 2007, about phone hacking at the News of the World during an inquiry earlier that year into self-regulation of the press.

That was prompted, in part, by the arrest of former News of the World royal editor Clive Goodman in August 2006 on charges of obtaining information illegally. Goodman was jailed in January 2007, prompting Coulson’s resignation.

Two months later, Hinton told MPs on the culture select committee: “I believe that Clive Goodman was the only person who knew what was going on.”

Hinton is now based in New York as chief executive of Wall Street Journal owner Dow Jones, part of Murdoch’s News Corporation.

The Press Complaints Commission has today said it may reopen its 2007 investigation into phone hacking by newspaper journalists. The PCC also said it would investigate any new allegations about potentially illegal activity “without delay”.

Culture secretary Ben Bradshaw has said the affair raises questions for the Tory leader. “David Cameron, the police and the Press Complaints Commission all have questions to answer in relation to today’s Guardian revelations,” he said in a message posted on Twitter this morning.

The Guardian revealed yesterday that Rupert Murdoch’s News Group Newspapers, the News of the World’s parent company, has paid out more than £1m to settle legal cases that threatened to reveal evidence of his journalists’ repeated involvement in the use of criminal methods to get stories.

Gordon Taylor, the chief executive of the Professional Footballers’ Association, received a £700,000 payment from News Group.

The methods used by the News of the World came to light after Goodman was jailed. Coulson was editing the paper at the time and resigned when Goodman was jailed.

News International executives, including Coulson, said they did not know about Goodman’s actions and that he was acting alone.

Former home secretary Charles Clarke told Radio 4′s Today Programme this morning: “I think it is outrageous. I think we do need action immediately.

“News International has to publish the full list of those that they have bugged. I think that David Cameron has to sack Andy Coulson because his denial is very narrow in the extreme. I think David Cameron himself has to be much clearer about the situation.”

Former cabinet minister Geoff Hoon said: “It is hard to see how in these circumstances Andy Coulson can continue as David Cameron’s communications chief while such a cloud hangs over his reputation. David Cameron must make clear what action he intends to take on this matter.”

The Liberal Democrat home affairs spokesman, Chris Huhne, said: “At the very least Andy Coulson was responsible for a newspaper that was out of control and at worst he was personally implicated.”

Clarke also told the BBC the police should be asked why they failed to take action after learning about the extent of the phone hacking and the number of people targeted by News of the World journalists.

They included Taylor, former culture secretary Tessa Jowell, Lib Dem MP Simon Hughes, celebrity PR Max Clifford, model Elle MacPherson and football agent Sky Andrew. News Group denied all knowledge of the hacking, but Taylor last year sued them on the basis that they must have known about it.

“I think that the home secretary should be asking the chief inspector of constabulary for a full report about the police behaviour in this whole incident,” Clarke said.

Former deputy prime minister John Prescott, one of the alleged targets of the hacking, also said he wanted answers from the police. “I find it staggering that there could be a list known to the police of people who had their phone tapped.

“I’m named as one of them. For such a criminal act not to be reported to me, and for action not to be taken against the people who have done it, reflects very badly on the police, and I want to know their answer.”

Prescott also called on Cameron to dismiss Coulson.

Coulson said yesterday: “This story relates to an alleged payment made after I left the News of the World two and half years ago. I took full responsibility at the time for what happened on my watch but without my knowledge and resigned.”

John Whittingdale, chairman of the Commons culture committee, said he wanted to summon newspaper editors to answer “serious” questions about the allegations.

“There are a number of questions I would like to put to News International on the basis of what the Guardian has reported,” he said.

His committee would examine the issue “as a matter of urgency” at a scheduled meeting later today, he said. “It may well be that we decide we wish to have somebody from News International to appear before us.”

He said he had seen no “direct evidence” that assurances previously given to the committee by the publisher on the matter had been untrue.

But Whittingdale added: “If that is the case it does beg the question why News International have apparently paid huge sums of money in settlement of actions in the courts. That is a question I would wish to put to News International.”

It is possible that Coulson could be called to give evidence if the committee decides to reopen its investigation into the affair.

News International executives told the committee in 2007 that they were unaware of Goodman’s activities or those of Glenn Mulcaire, a private investigator who worked for the company.

He was jailed along with Goodman in January 2007.

The Press Complaints Commission investigated the allegations but failed to find evidence of wrongdoing. It did not question Coulson as part of its investigation.

The payments to Taylor and two other individuals secured secrecy in three cases that threatened to expose evidence of Murdoch’s journalists using private investigators who illegally hacked into the mobile phone messages of numerous public figures to gain unlawful access to confidential personal data, including tax records, social security files, bank statements and itemised phone bills. Cabinet ministers, MPs, actors and sports stars were all targets of the private investigators.

The evidence unearthed by the Guardian may open the door to hundreds more legal actions by victims of News Group, the Murdoch company that publishes the News of the World and the Sun, as well as provoking police inquiries into reporters who were involved and the senior executives responsible for them.

• To contact the MediaGuardian news desk email editor@mediaguardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000.

• If you are writing a comment for publication, please mark clearly “for publication”.

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Met investigates phone hacking

Commissioner to ‘establish the facts’ about claims News of the World journalists used criminal methods to get stories

The Metropolitan police is to examine allegations that journalists from the News of the World and other newspapers repeatedly used criminal methods to get stories through mobile phone hacking.

The assistant commissioner, John Yates, is to “establish the facts” about the claims and will report back later today, the police commissioner, Sir Paul Stephenson, said today.

The move came after the Guardian revealed Rupert Murdoch’s News Group Newspapers had paid out more than £1m to settle legal cases that threatened to reveal evidence of the journalists’ activities.

The payments secured secrecy over out-of-court settlements in three cases that threatened to expose evidence that Murdoch journalists used private investigators to illegally hack into the mobile phone messages of public figures to gain unlawful access to confidential personal data, including tax records, social security files, bank statements and itemised phone bills. Cabinet ministers, MPs, actors and sports stars were all targets of the private investigators.

The suppressed legal cases are linked to the jailing in January 2007 of a News of the World reporter, Clive Goodman, for hacking into the mobile phones of three royal staff, an offence under the Regulation of Investigatory Powers Act. At the time, News International said it knew of no other journalist who was involved in hacking phones and that Goodman had acted without their knowledge.

Scotland Yard and the Crown Prosecution Service now face serious questions over their handling of the inquiry into phone hacking and the News of the World, which led to the jailing of Goodman and Glenn Mulcaire, a private investigator who had worked for News Group.

The questions the police face include:

• Did Scotland Yard detectives find evidence that Mulcaire had hacked into the mobile phones of people other than the shortlist of those who were named when he and Goodman came to court?

• If so, did these targets include MPs and cabinet ministers; and why did Scotland Yard not inform all of those who appeared to have been targeted for hacking?

• Did the detectives find evidence that News of the World journalists other than Goodman were implicated in commissioning this hacking or handling the material derived from the hacking?

• If so, was all of that evidence presented to the Crown Prosecution Service; and why were no charges brought against any other News of the World staff?

• Did Scotland Yard attempt to investigate the role of other private investigators who have worked for the News of the World?

• Did anybody at any level of Scotland Yard or the Crown Prosecution Service interfere in any way to protect the interests of the News of the World and its parent company?

Stephenson said: “Clearly I am aware of this story and I think as everybody knows this relates to an investigation that the MPS [Metropolitan Police Service] undertook back in 2006. That investigation was undertaken by the Specialist Operations Directorate as it related very much to a matter of complaint from the royal household.

“I think we have got a track record of doing exactly what we are supposed to do. If we need to investigate, we will investigate. We will do the right thing and do what we have to do to investigate crime wherever it exists.”

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MPs to investigate hacking claims

• Les Hinton and Nick Davies will be asked to give evidence
• Andy Coulson, Cameron communications chief, will “almost certainly” be called

An inquiry into the Guardian revelations about the use of illegal surveillance techniques by News International newspapers was launched this morning by the Commons culture, media and sport committee.

John Whittingdale, the committee chairman, said that the former News International boss Les Hinton and the Guardian’s reporter Nick Davies would be asked to give evidence at a hearing next Tuesday about the controversy.

Whittingdale also said it was “almost certain” that his committee would subsequently want to take evidence from Andy Coulson, the former News of the World editor who now works as David Cameron’s communications chief.

After Clive Goodman, a News of the World reporter, was jailed in 2007 for illegally hacking into the mobile phones of three royal staff, Hinton told the committee that he was “absolutely convinced” that Goodman was the only person who knew about phone hacking at the paper.

Whittingdale said that, in the light of what Hinton said at the time, his committee was “completely shocked” to read that News Group, the News International parent company, had paid out more than £1m to settle legal cases involving illegal surveillance.

Hinton will be asked if he wants to “add to or amend” anything he told the committee in 2007.

The Guardian will also be asked to supply all the evidence acquired in the course of its investigtion to the committee.

Whittingdale, Conservative MP for Maldon and East Chelmsford, said: “The Guardian report raises a lot of questions. If News International did not have any knowledge of these practices, it begs the question as to why they paid more than £1m. The committee is extremely concerned about this.”

After the hearing next Tuesday, the committee will decide what other witnesses it wishes to call. Whittingdale said that the committee would probably want to hear from Stuart Kuttner, the News of the World’s outgoing managing editor, Rebekah Wade, the former Sun editor who has been promoted to News International chief executive, Colin Myler, the News of the World editor, and “almost certainly” Coulson.

The committee discussed the affair this morning before its members started considering a draft report containing the conclusions of its ongoing inquiry into press standards.

More details soon …

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Murdoch papers paid £1m to phone-hacking victims

• News of the World bugging led to £700,000 payout to PFA chief executive Gordon Taylor
• Sun editor Rebekah Wade and Conservative communications chief Andy Coulson – both ex-NoW editors – involved
• News International chairman Les Hinton told MPs reporter jailed for phone-hacking was one-off case

Rupert Murdoch’s News Group News­papers has paid out more than £1m to settle legal cases that threatened to reveal evidence of his journalists’ repeated involvement in the use of criminal methods to get stories.

The payments secured secrecy over out-of-court settlements in three cases that threatened to expose evidence of Murdoch journalists using private investigators who illegally hacked into the mobile phone messages of numerous public ­figures to gain unlawful access to confidential personal data, including tax records, social security files, bank statements and itemised phone bills. Cabinet ministers, MPs, actors and sports stars were all targets of the private investigators.

Today, the Guardian reveals details of the suppressed evidence, which may open the door to hundreds more legal actions by victims of News Group, the Murdoch company that publishes the News of the World and the Sun, as well as provoking police inquiries into reporters who were involved and the senior executives responsible for them. The evidence also poses difficult questions for:

• Conservative leader David Cameron’s director of communications, Andy Coulson, who was deputy editor and then editor of the News of the World when, the suppressed evidence shows, journalists for whom he was responsible were engaging in hundreds of apparently illegal acts.

• Murdoch executives who, albeit in good faith, misled a parliamentary select committee, the Press Complaints Commission and the public.

• The Metropolitan police, which did not alert all those whose phones were targeted, and the Crown Prosecution Service, which did not pursue all possible charges against News Group personnel.

• The Press Complaints Commission, which claimed to have conducted an investigation, but failed to uncover any evidence of illegal activity.

The suppressed legal cases are linked to the jailing in January 2007 of a News of the World reporter, Clive Goodman, for hacking into the mobile phones of three royal staff, an offence under the Regulation of Investigatory Powers Act. At the time, News International said it knew of no other journalist who was involved in hacking phones and that Goodman had acted without their knowledge.

But one senior source at the Met told the Guardian that during the Goodman inquiry, officers found evidence of News Group staff using private investigators who hacked into “thousands” of mobile phones. Another source with direct knowledge of the police findings put the figure at “two or three thousand” mobiles. They suggest that MPs from all three parties and cabinet ministers, including former deputy prime minister John Prescott and former culture secretary Tessa Jowell, were among the targets.

Last night, Prescott said: “I think Mr Cameron should be thinking of getting rid of Coulson.”

However, a spokeswoman for Cameron said the Tory leader was “very relaxed about the story”.

News International has always maintained it had no knowledge of phone hacking by anybody acting on its behalf.

Murdoch told Bloomberg news last night that he knew nothing about the payments. “If that had happened I would know about it,” he said.

A private investigator who had worked for News Group, Glenn Mulcaire, was also jailed in January 2007. He admitted hacking into the phones of five other targets, including the chief ­executive of the Professional Footballers’ Association, Gordon Taylor. Among the phones he hacked were those of the Lib Dem MP Simon Hughes, celebrity PR Max Clifford, model Elle MacPherson and football agent Sky Andrew. News Group denied all knowledge of the hacking, but Taylor last year sued them on the basis that they must have known about it.

In documents initially submitted to the high court, News Group executives said the company had not been involved in any way in Mulcaire’s hacking of Taylor’s phone. They denied keeping any recording or notes of intercepted messages. But, at the request of Taylor’s lawyers, the court ordered the production of detailed evidence from Scotland Yard’s inquiry in the Goodman case, and from an inquiry by the Information Commissioner’s office into journalists who dishonestly obtain confidential personal records.

The Scotland Yard files included paperwork which revealed that, contrary to News Group’s denial, Mulcaire had provided a recording of the messages on Taylor’s phone to a News of the World journalist who had transcribed them and emailed them to a senior reporter, and that a News of the World executive had offered Mulcaire a substantial bonus for a story specifically related to the intercepted messages.

Several famous figures in football are among those whose messages were intercepted. Coulson was editing the paper at this time. He said last night: “This story relates to an alleged payment made after I left the News of the World two and half years ago. I have no knowledge whatsoever of any settlement with Gordon Taylor.

“The Mulcaire case was investigated thoroughly by the police and by the Press Complaints Commission. I took full responsibility at the time for what happened on my watch but without my knowledge and resigned.”

The paperwork from the Information Commission revealed the names of 31 journalists working for the News of the World and the Sun, together with the details of government agencies, banks, phone companies and others who were conned into handing over confidential information. This is an offence under the Data Protection Act unless it is justified by public interest.

Senior editors are among those implicated. This activity occurred before the mobile phone hacking, at a time when Coulson was deputy and the editor was Rebekah Wade, now due to become chief executive of News International. The extent of their personal knowledge, if any, is not clear: the News of the World has always insisted that it would not break the law and would use subterfuge only if essential in the public interest.

Faced with this evidence, News International changed their position, started offering huge cash payments to settle the case out of court, and finally paid out £700,000 in legal costs and damages on the condition that Taylor signed a gagging clause to prevent him speaking about the case. The payment is believed to have included more than £400,000 in damages. News Group then persuaded the court to seal the file on Taylor’s case to prevent all public access, even though it contained prima facie evidence of criminal activity.

The Scotland Yard paperwork also provided evidence that the News of the World had been involved with Mulcaire in his hacking of the mobile phones of at least two other football figures. They filed complaints, which were settled this year when News International paid more than £300,000 in damages and costs on condition that they signed gagging clauses.

Taylor declined to make any comment. Goodman, now out of jail, said: “My comment is not even ‘no comment’.” A spokesman for News International said: “News International feels it is inappropriate to comment at this time.”

Last night, John Whittingdale, the Conservative MP who chairs the culture, media and sport select committee, said the revelation “raises a number of questions that we would want to put to News International”.

He added: “The fact that other people beyond the royal family had their calls intercepted was well known. But we were absolutely assured by News International that none of their journalists were aware of that, that Goodman was acting alone and that Mulcaire was a rogue agent”.

Asked if the committee would reopen the issue, he said: “The committee will want to discuss it very urgently. I think we will do so tomorrow morning, and if we decide that there are further questions to ask, then certainly we would summon back witnesses and ask those questions.”

Former Sunday Times editor Andrew Neil described the story last night as “one of the most significant media stories of modern times”. “It suggests that rather than being a one-off journalist or rogue private investigator, it was systemic throughout the News of the World, and to a lesser extent the Sun,” he said. “Particularly in the News of the World, this was a newsroom out of control.

• To contact the MediaGuardian news desk email editor@mediaguardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000.

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Met pressed to investigate hacking

• John Prescott says allegations reflect badly on police
• David Cameron resists calls to sack communications chief
• News International is not above the law, says Charles Clarke

The Metropolitan police was coming under mounting pressure today to launch a new investigation into Guardian allegations that the News of the World and other newspapers used criminal methods to get stories by hacking the phones of numerous public figures.

The former deputy prime minister John Prescott, one of the alleged targets of illegal phone-hacking, said he wanted answers from the police. “I find it staggering that there could be a list known to the police of people who had their phone tapped.

“I’m named as one of them. For such a criminal act not to be reported to me, and for action not to be taken against the people who have done it, reflects very badly on the police, and I want to know their answer.”

Prescott called on the Conservative party leader, David Cameron, to dismiss his director of communications, Andy Coulson, who was the deputy editor and then editor of the News of the World when journalists were using illegal methods. Coulson said yesterday: “This story relates to an alleged payment made after I left the News of the World two and half years ago. I took full responsibility at the time for what happened on my watch but without my knowledge and resigned.”

But Prescott said: “I think that David Cameron has to sack Andy Coulson because his denial is very narrow in the extreme. I think David Cameron himself has to be much clearer about the situation.”

This morning Cameron resisted calls to remove Coulson, telling reporters outisde his home in London: “It’s wrong for newspapers to breach people’s privacy with no justification. That is why Andy Coulson resigned as editor of the News of the World two and a half years ago.

“Of course I knew about that resignation before offering him the job. But I believe in giving people a second chance. As director of communications for the Conservatives he does an excellent job in a proper, upright way at all times.”

Earlier, the PR agent Max Clifford, who is also one those whose phones was allegedly hacked into, asked: “Why has this just come out? According to the Guardian, it’s come from police sources. If the police had this information, why didn’t they act on it?”

Speaking to the BBC, he said: “There are lots of questions that need to be answered, serious questions.”

Responding to the claims, the Metropolitan police service (MPS) pointed out that its original investigation led to the conviction of the News of the World reporter Clive Goodman in 2007. “The MPS carried out an investigation into the alleged unlawful interception of telephone calls. Officers liaised closely with the Crown Prosecution Service. Two people were charged and subsequently convicted and jailed. We are not prepared to comment further.”

The London mayor, Boris Johnson, who was one of the figures allegedly targeted and is chairman of Metropolitan Police Authority, was challenged on the issue on BBC Radio 4′s Today programme. “As chairman of the MPA it would not be right to interfere in an operational decision they [the Met] might make.” He added that he was “confident” that if the police had a duty to investigate they would.

He said there was no need for him to contact the police over the matter. “It sounds like there is a full account in the Guardian,” he said.

John Whittingdale, the chairman of the Commons culture committee, said he wanted to summon newspaper editors to answer “serious” questions about the allegations.

“There are a number of questions I would like to put to News International on the basis of what the Guardian has reported,” he said.

His committee would examine the issue “as a matter of urgency” at a scheduled meeting later today, he said. “It may well be that we decide we wish to have somebody from News International to appear before us.”

He said he had seen no “direct evidence” that assurances previously given to the committee by the publisher on the matter had been untrue.

But he added: “If that is the case it does beg the question why News International have apparently paid huge sums of money in settlement of actions in the courts. That is a question I would wish to put to News International.”

The former Cabinet minister Geoff Hoon said: “It is hard to see how in these circumstances Andy Coulson can continue as David Cameron’s communications chief while such a cloud hangs over his reputation. David Cameron must make clear what action he intends to take on this matter.”

The Liberal Democrat home affairs spokesman, Chris Huhne, said: “At the very least Andy Coulson was responsible for a newspaper that was out of control and at worst he was personally implicated.

“Either way, a future prime minister cannot have someone who is involved in these sort of underhand tactics. The exact parallel is with Damian McBride.

“If it is more than a thousand [phone taps] it seems most unlikely to me to have been just one journalist. There needs to be a full investigation.”

The former home secretary Charles Clarke said: “The home secretary should be asking the chief inspector of constabulary about police behavior in this whole incident. Serious questions need to be answered.”

He questioned why the police did not launch a wider investigation after the discovery that Goodman had been tapping phones for stories.

He told the Today programme: “News International needs to publish a full list of all those who it has bugged. The suggestion that News International is above the law is simply not acceptable … I think Murdoch is such a powerful figure that people don’t want to take him on gratuitously.”

He also called for Coulson to be sacked from his Conservative party role.

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Andrew Neil: ‘NoW out of control’

Former Sunday Times editor says tabloid did not have a public interest defence and Andy Coulson has questions to answer

One of Rupert Murdoch’s former leading editors said last night the Guardian’s revelations of the News of the World’s phone hacking represented one of the “most significant media stories of modern times”.

Andrew Neil, who edited the Sunday Times, said the News of the World did not have a public interest defence for its practices, exposed by the Guardian.

Neil said: “I think it is one of the most significant media stories of modern times. It suggests that rather than being a one off journalist or rogue private investigator, it was systemic throughout the News of the World, and to a lesser extent the Sun.

“Particularly in the News of the World, this was a newsroom out of control … Everyone who knows the News of the World, everybody knows this was going on. But it did no good to talk about it. One News of the World journalist said to me … it was dangerous to talk about it.”

Neil was one of Murdoch’s closest aides for over a decade. He edited the Sunday Times from 1983-94, then became chairman of Sky Television from 1988-90, and was entrusted by the media tycoon to be the executive editor of Fox Television News in 1994.

Neil said he saw no public interest in the methods used against any of the politicians or celebrities targeted by the Murdoch owned newspapers: “It is illegal. That doesn’t mean it should never be done, you may have a public interest defence. But that’s not the case in any of this, it was a fishing expedition; let’s listen to who we can. It was corrupt.”

“If you imagine there was something of real major importance, you could have a public interest defence. But breaking into Gwyneth Paltrow’s voicemail after she’s just had a baby is not in the public interest. I’m at a loss to know what the public interest might be.”

He also said the police had to explain why they failed to tell top politicians that their phones had been hacked into.

Neil said the story raised serious questions for Scotland Yard, top prosecutors and for judges: “It’s not just a media story, it raises serious questions about the police.

“The police learn that the deputy prime minister has had his mobile phone compromised and they don’t tell him. I just don’t understand that.

“The police investigation unearthed evidence of clear wrongdoing and the Crown Prosecution Service does nothing.”

He added: “The court is faced with evidence of conspiracy and systemic illegal actions and agrees to seal the evidence. All that is completely wrong, I just don’t understand it.”

Speaking earlier, on the BBC’s Newsnight programme: “This is our criminal justice system in the dock.”

Neil also said News International may face legal action from those who were victims of the phone hacking, a so called class action: “News International could face a class action by people who want to mount a class action to unseal those documents. There could be the most almighty class action, you’re talking about multimillion pound losses. That gets scary.

“If this was in the US, shares in News International would collapse tonight.”
Neil said that former News of the World editor Andy Coulson, now director of communcations at the Conservative party, had questions to answer: “If a journalist comes to you with a great story, one of the first questions you ask is how did you get it. How you got it is relevant to judging its accuracy and preparing yourself for any legal challenge.

“If this behaviour was systemic in the newsroom, why would you not know about it, why would you of all people, not know about it? Either you’re incompetent or complicit.”

Asked if Murdoch himself knew of the practice, Neil, formerly one of his closest lieutenants, said: “That we will never know.”

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