1 February 2012

Leveson Inquiry: Hearings - Day 35

LEVESON INQUIRY:CULTURE, PRACTICE AND ETHICS OF THE PRESS

"I want this inquiry to mean something", not end up as "footnote in some professor of journalism's analysis of 21 century history." LJ Leveson in reply to A Rusbridger's submission to Inquiry.

Lord Justice Leveson

From Guardian:
Here's a quick reminder of the four modules within this first year of the inquiry.
Module 1: The relationship between the press and the public and looks at phone-hacking and other potentially illegal behaviour
Module 2: The relationships between the press and police and the extent to which that has operated in the public interest
Module 3: The relationship between press and politicians
Module 4: Recommendations for a more effective policy and regulation that supports the integrity and freedom of the press while encouraging the highest ethical standards.

Witness list for this week (30th January to 2nd February) to be found HERE
Video Recordings of each day's proceedings HERE
Live Feed From Leveson Inquiry Site HERE
BBC Democracy Live Feed HERE 



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Today's links to articles, info and comments relevant to the Leveson Inquiry (frequently updated) :
  •  From Guardian Live Blog: (10.15 a.m.)
Private investigator Glenn Mulcaire has lost his High Court appeal against orders that he cannot rely on privilege against self-incrimination in the phone-hacking proceedings.Our media correspondent, Lisa O'Carroll (@lisaocarroll), is at the high court and we will point you to her story when we have it.
    Here is more from Press Association on Glenn Mulcaire's failed appeal on privilege against self-incrimination:
    The private investigator at the centre of the phone-hacking scandal today lost his appeal against orders that he cannot rely on privilege against self-incrimination in the proceedings.
    Glenn Mulcaire, who was jailed for six months in January 2007 for illegally accessing the voicemails of members of the royal household, challenged rulings that he did not have the right to refuse to say who asked him to intercept voice messages.
    The orders were made in response to applications made by comedian and actor Steve Coogan and PR consultant Nicola Phillips in the run-up to their civil damages claims for breach of confidence against both News Group Newspapers (NGN) and Mulcaire, whom NGN had exclusively retained.
    Three judges in the Court of Appeal, headed by the Lord Chief Justice, Lord Judge, refused Mulcaire permission to appeal their ruling, but granted a stay until 5pm on Monday pending an application for permission to the Supreme Court itself.
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      Wednesday 1st February 2012
      ( Link to Hearing Day 34 HERE )

      Today's Witnesses:

      Lord Black (Press Board of Finance)
      Colette Bowe (Ofcom)
      Guy Parker (Advertising Standards Agency)
      Ed Richards (Ofcom)

      Statements to be read:
      Philip Graf ( Ofcom ) Full Witness Statement
      Tim Suter ( Ofcom ) Full Witness Statement
      Kip Meek ( Everything Everywhere ) Full Witness Statement

      (Updated Witness List for Thursday 2nd February HERE)


      Lord Black


      Guardian Live Blog 
       

      Hacked off
      Black: Editors' Code of Practice Committee is a sub-committee of PressBoF and not part of the PCC.

      Ross Hawkins
      Black accepts it's not clear which publishers pay most into the Press Board of Finance (PressBof)

      Hacked off
      PressBoF entirely comprises press members, says Jay. Nationals pay 54%, regionals 39% and magazines 7%.

      Hacked off
      Schillings solicitors made suggestion on prior notification to avoid code breaches. Dacre as chairman said difficult to codify.

      Ross Hawkins
      suggests News of the World won't accept a pre notification rule because it doesn't trust judges

      Hacked off
      Report (pre-Black) says PCC has proved to be an efficient and accessible regulator. says could be seen as difficult to justify.

      Hacked off
      Black: I have never believed the PCC to be a regulator.
      From Guardian Live Blog:
      Jay asks about the Pressbof's chairman report from 2009.It describes the PCC as an "efficient and accessible regulator". Jay says that the general reflection is "supportive of the status quo". Lord Justice Leveson describes it as "rather self-congratulatory".
      Lord Black contests that there has been "marked improvements" in press standards over the years.
      He adds that in light of recent events self-regulation "is not a perfect mechanism and the industry fully recognises that".
      National newspapers' cooperation with Pressbof had been "universal" until 2008 when Northern & Shell withdrew from the system, Black says.Black says he has never met an editor or proprietor "who would ever dream" of taking Private Eye to the PCC, after Leveson raises evidence given by Ian Hislop, editor of the satirical magazine, earlier this month.

      Mike Jempson
      Black replaced his partner Mark Bolland as Dir of PCC without advert. MB went to work for prince Charles then NoW. All very cosy.

      Hacked off
      Black: I've always been opposed to fines, I don't think they would have done much in the past to strengthen the PCC.

      Ben Fenton
      Black says he was against fines, but now he has heard Ld Hunt proposals he has changed his mind. Hacking showed lack of PCC power

      Ross Hawkins
      Black at : phone hacking scandal changed his mind, made him realise system needed urgent reform

      Hacked off
      Black: The PCC has changed in every year of it existence. Now looking at starting from scratch. 

      Hacked off
      Black: Lord Hunt selected as PCC chairman by PressBoF from a longlist of 40-45 people and shortlist of 6 people in 2011.

      From Guardian Live Blog:
      Lord Black tells the inquiry that the PCC chairman, Lord Hunt, was selected by Pressbof from a longlist of 40 to 45 people and a shortlist of six people last year.
      Jay asks to what extent the process was "geared towards" a candidate in favour of self-regulation.
      Lord Black says a belief in freedom of the press and self-regulation were "fundamental" specifications. "It would be impossible for someone to do the job if they started from a position of hostility [to those principles]," Black says.

      Hacked off
      Black: Belief in self-reg and belief in freedom of press fundamental to being chairman.


      Hacked off
      : Are you appointing someone to find best solution for the problem or an advocate for self-regulation?

      Ross Hawkins
      says PCC's own work is being approached from a particular perspective - ie that self regulation shd continue


      Ben Fenton
      [Black is talking as though Hunt's proposals are just going to happen without further consultation. Sounded a bit odd.]


      Guardian Live Blog:
      Lord Justice Leveson asks if Pressbof is looking for a PCC chairman to reform the industry or a chairman who is "first and foremost" an advocate of self-regulation.Lord Black says that there would be a "starting point" of a belief in self-regulation was important.
      He describes Lord Hunt as "open minded" and points out that his proposals represent a "very dramatic shift" for the industry.
      Pressbof exerts no control over the PCC, Lord Black says, other than promulgating its code and managing its funding."While there is a perception in some quarters that some form of control exists, that does not exist," he says.

      Ross Hawkins
      Jay : we see a preponderance of Conservative peers wherever we look , suggests that might not create full public confidence

      IndexLeveson
      Black says PCC chairmanship is not a political appointment


      Guardian Live Blog:
      Lord Black is asked about a "preponderance" of Conservative peers on Pressbof and the PCC.
      He does not accept that Tory peers exert a suprerior influence on the bodies, adding that the appointment of Lord Hunt, a Tory peer, was not a political one.

      Hacked off
      Black: There should be preponderance of serving editors on a self-regulatory committee. We could introduce a public element.

      Hacked off
      Black: Editors are the ones who understand real newsroom dilemmas and what code of practice needs to reflect.

      Ross Hawkins
      Black at : some of L Hunt PCC reform proposals particularly for regional press will be painful but real desire for change

      Ross Hawkins
      I will press on with inquiry, doesn't mean you (the press & regulator) shouldn't equally press on


      Hacked off
      Black: We will press on with the issues that were put to you and will keep in touch with the inquiry.


      Guardian Live Blog:
      Lord Black says there should be a preponderance of serving editors on the reformed self-regulatory committee.Lord Hunt's proposals – outlined yesterday – have the support of the industry as a whole, he says.
      Lord Black says he was "surprised by some of the strength" of support for Lord Hunt's proposals, which he adds are "potentially painful" for the regional press.
      Lord Justice Leveson says he will not sit back and consider himself redundant, reiterating that he wants a "system that works for everyone".

      Hacked off
      Black: I haven't spoken to Mr Desmond recently but Lord Hunt has been in touch. N&S eds and legal reps supportive at Dec meeting.

      Ben Fenton
      Black says next stage must be for PCC to move towards a model of a contract binding papers inc Express to PCC2.


      Ben Fenton
      says devil may be in detail. Language of contract wd have to be well known before one cd reach a conclusion about it.


      Colette Bowe





            IndexLeveson
            Ofcom chairman Colette Bowe and CEO Ed Richards now up

            IndexLeveson
            Richards joined Ofcom in 2003. Formerly senior policy advisor to Tony Blair

            Hacked off
            Bowe was appointed to main board in 2008 and chair of Ofcom's advisory consumer panel in 2003.

            IndexLeveson
            Carine Patry-Hoskins going through statutory underpinning of Ofcom

            IndexLeveson
            Ofcom Chairman appointed by Secretary of State. CEO appointed by Chairman

            IndexLeveson
            P-H asks how Ofcom can be independent

            Hacked off
            Bowe: I was appointed following open competition by permanent secretaries, not ministers, advised from outside Parliament.

            IndexLeveson
            Richards says importance of independence is most prized characteristic of all of Ofcom


            Hacked off
            Bowe: We do not think it appropriate to have people actively engaged in industry as members of the board, because of conflicts.


            Guardian Live Blog:
            Bowe is asked whether the independence of Ofcom would be greater if the chief executive was not ultimately selected by the culture secretary.Bowe says: "In practical terms the answer is no."
            A better model has never been proposed, she adds, and a "well-informed" parliamentary committee serves to hold the regulator to account for its decisions.

            Ben Fenton
            Bowe says they are held to account by Parliament NOT government & on their public duties. [NB newspapers don't have public duties]

            Hacked off
            Bowe: We undertake a large amount of research into what the viewing public wants.


            Guardian Live Blog:
            Ofcom determines high-quality broadcasting by measuring factors including the level of original British programming, Richards says.Bowe adds that the regulator will carry out research into Britons' interests and what 'high quality' means to them.

            IndexLeveson
            Richards: we need to find least burdensome way of achieving public interest objectives in non-intrusive way

            Hacked off
            Richards: We adopt least intrusive mechanism of achieving the public interest objective. Bowe: Our "touch" should be proportionate.

            Ross Hawkins
            Richards of Ofcom - we don't ever intervene in advance of broadcast, would take you potentially into area of censorship

            Guardian Live Blog:
            Ofcom is a "post-broadcast regulator" and does not attempt to intervene with broadcasts before they are aired, Richard says.He is asked whether Ofcom should be able to intervene pre-broadcast.
            "You are then into a very difficult territory which takes you potentially takes you into the area of censorship and suppression," he says. "I would feel extraordinarily uncomfortable discharging a duty of that kind."


            Ross Hawkins
            Ofcom regulates BBC in relation to privacy rules


            Hacked off
            Richards: Audience expectation is now equally as important as any technological justification when it comes to licencing.

            Hacked off
            Richards: Press is technological and historically different to broadcast, although with digital environment this is changing.

            IndexLeveson
            Richards: Internet publishing world starts from different set of orthodoxies to broadcasting world

            IndexLeveson
            Richards says no formal guidance on meaning of F&P, but questions asked that form background of test 

            IndexLeveson
            Richards says qu's include issues of criminality, propriety, past breaches. Plurality not involved in F&P test

            Hacked off
            Edwards: It wouldn't a be primary focus if a proprietor withdrew from a different regulator to them holding licence (eg Desmond).


            Guardian Live Blog:
            Richards is asked whether Richard Desmond could be described as "fit and proper" in the context of his withdrawal from the system of self-regulation for the press.There is a general catch-all which permits some discretion, he says, but adds: "I wouldn't want to say things of that kind could never be considered ... but it wouldn't necessarily be our primary focus.


            IndexLeveson
            Richards: license would not be revoked for single breach of code unless extreme

            IndexLeveson
            Richards on revoking licenses: don't like doing it, feel element of failure that we've reached this point

            Hacked off
            Richards is discussing the Bang media case, involving serious and repeated breaches of the code (48 breaches in 2009).


            Guardian Live Blog;
            Richards says revoking a license is not something Ofcom likes doing. The regulator feels a sense of "failure" if it has to revoke a licence because it means that the broadcaster has fallen through several of its boundaries.
            He is asked about Bang media, the broadcaster the ended up having its license revoked. Richards says that Band media made 48 breaches in 2009.


            Hacked off
            Richards: They could have appealed to satellite operators or set up an internet TV service.

            Hacked off
            Richards: We've tried to simplfy code and ensure people ensure the principles of it.

            Hacked off
            Richards: There is a 'case law' of judgments that have developed and programme makers are very aware of these.


            Guardian Live Blog:
            Bowe says that the broadcasting code is an attempt to get away from a "box-ticking compliance culture".Journalists and programme makers should be encouraged to think about what they are doing, Bowe says, not whether they have ticked a box.



            Hacked off
            [ seems particularly interested in Bowe's last point.]

            Hacked off
            Richards: There is a 'case law' of judgments that have developed and programme makers are very aware of these.

            Hacked off
            Carine Patry-Hoskins asks Bowe and Edwards about public interest and privacy in broadcasting.


            Guardian Live Blog:
            The Ofcom pair are asked what legitimate justifications could be made for a breach of privacy.Richards says there should be a "clear public interest" justification but "not many" more.

            Hacked off
            Carine Patry-Hoskins asks Bowe and Edwards about public interest and privacy in broadcasting.

            Hacked off
            Richards: Primary expectations of a broadcaster is that privacy invasion has a clear public interest justification.

            Hacked off
            Richards makes a distinction between doorstepping someone in news and "aggressive and surprising" intervention.

            Hacked off
            Richards: Our focus is individuals affected but in exceptional circumstances we can initiate investigation from external complaint.

            Hacked off
            Richards: Some broadcasters feel this should be restricted but we wouldn't embark upon a case like this without consideration.

            Ross Hawkins
            Richards of Ofcom at : says in Ross Brand case took up case because of extreme, repeated nature of infringement & sarky apology

            IndexLeveson
            Richards: important for us as regulator to send clear signal that this sort of behaviour was wholly unacceptable


            From Guardian Live Blog:
            The inquiry has resumed. Richards suggests that the statutory role of Ofcom does not necessarily slow the regulator down when dealing with complaints.
            Opponents of statutory regulation have argued that it would slow down the operation of a complaints-handling body.
            But Richards says Ofcom can deal with complaints "relatively swiftly".
            Richards says the Ofcom has to exercise its power "carefully and with due process" because of its ability to be challenged by judicial review.He adds that it is much more important "that there is respect for the decisions at the end of the process."

            Hacked off
            Richards: There is an obligation for broadcasters to keep records. We are able to require material as evidence.

            Hacked off
            Richards: The right of the complainant is not really a right if it costs a lot, the core activity is free at point of use.

            Hacked off
            Richards: In many cases we do not consider a sanction at all, just clarity that there has been a breach of the code.


            Guardian Live Blog:
            Richards is asked to what extent Ofcom's ability to fine has a "chilling effect" on broadcasters.He says that "it focuses the mind, has a reputational impact, has an economic impact and is a very effective deterrant". However, he does not believe it has a chilling effect on legitimate investigative journalism.
            "There is no reason why the presence of a financial penalty should have an impact on good, investigative journalism," Richards says.
            Bowe suggests that the inquiry read the Channel 4 newscaster Jon Snow's recent Cudlipp lecture in which he challenges the notion that statutory regulation has a harmful impact on good journalism.Richards adds that he disputes the idea that "robust investigative journalism" is impacted by statutory regulation.



            Hacked off
            Richards: We determine form, location and visibility of corrections and statements, and that is non-negotiable. 

            Ben Fenton
            Ed Richards says the broadcasting of corrections with due prominence is "non-negotiable" expresses interest.

            IndexLeveson
            Bowe: financial penalty may gain undivided attention from those responsible for management of business (i.e. not just editorial)

            Hacked off
            Richards: Financial penalties have far more significant reputational consequences, will be reported and more people aware.

            Hacked off
            In 2011 Ofcom had 25000 complaints, 9031 published decisions, 168 breached code, 36 resolved. 8827 not in breach.

            Ross Hawkins
            Richards of Ofcom recalls complaint about Tom & Jerry (Tom had set fire to Jerry), an example of a trivial concern

            Ross Hawkins
            Richards of Ofcom at - in Ross / Brand case there were originally hardly any complaints at all



            Hacked off
            3 standards cases 2010/11 attracted statutory sanctions. Teletext (£225,000), DM Digital Ltd (£17,500) and Bang Media (£157,250).

            Hacked off
            Richards: Other 165 cases would have been in-breach findings. Not necessary to impose sanctions.

            Hacked off
            171 fairness and privacy adjudications published 2010/11: 9 breaches, 36 not breaches, 13 resolved, 113 not considered.

            Ross Hawkins
            Now onto the Jonathan Ross comments about Margaret Thatcher during Cameron iv - lawyer doesn't repeat said comments

            Hacked off
            CPH asks about a standards case against Jonathan Ross's chat show, where he made comments about Margaret Thatcher to David Cameron.

            Ross Hawkins
            Richards - Cameron went on Ross show knowing Ross is a provocative interviewer, was shown at 2330

            Hacked off
            Richards: Cameron went on programme voluntarily and was aware Ross is a provocative interviewer. Not case with Sachs/Bailey.

            Hacked off
            Bowe: Breach reports are extremely useful to people in indicating where the boundaries are for a working journalist.

            Hacked off
            Richards: Jon Gaunt case appealed under judicial review and rejected. Regarded Talksport interview in 2009.

            Hacked off
            CPH asks about a series of investigations into use of premium rate phone services on TV programmes 2006-8.

            Hacked off
            Patry-Hoskins: "I won't call this the phone hacking of Ofcom..although I just have."


            Hacked off
            Richards: There was an element of invisibility to it. I voted in some of these competitions and you did not had a clue.


            Guardian Live Blog:
            Richards and Bowe are asked about Ofcom's investigatory powers.Richards raises the TV phone-in scandal of 2007. He says that there was an "air of invisibility" about it but suddenly whistleblowers started exposing the practice to newspapers and Ofcom.

            Hacked off
            Richards: We used our investigatory powers to secure data from broadcasters - they were in full collaborative mode at that point.

            Hacked off
            Richards: Some were modest sums, others were highest fines we have ever levied in our history and involved millions.


            Guardian Live Blog:
            Richards says that Ofcom's investigatory powers meant that it could require witness statements and audit data from the broadcasters. The regulator then did a thorough inquiry into what had gone wrong."The outcome of that was this series of sanctions. Some were fairly modest, others were the highest fines we've levied in our history," Richards says.
            He describes the sanctions as an "effective deterrant". The regulator then recast its relationship with broadcasters in relation to premium rate phone-in competitions, he says.

            Ben Fenton
            Richards says investigatory powers were total because they were statutory. Extremely effective, but limited to broadcasters.

            Ben Fenton
            Investigatory powers are key tool because broadcasters know we could use it; helps with compliance & record keeping by b'casters


            Hacked off
            CPH: Intervention notices served when BSkyB acquired 18% stake in ITV and proposed acquisition of BSkyB shares by News Corp. 

            Hacked off
            Ofcom provided reports in these cases but did not make any decisions.

            Ben Fenton
            Richards & Bowe say govt is sympathetic to Ofcom view that system for monitoring media ownership is incomplete

            Ben Fenton
            Richards says political influence has to be part of measurement of media ownership . says that cuts across what he is looking at.

            Hacked off
            Richards: At heart of peoples' concerns are risks around concentration of ownership and media influence.
            Guardian Live Blog:
            Patry Hoskins asks about Ofcom's role in media mergers and plurality.Richards' statement says that the culture secretary, Jeremy Hunt, issued an intervention notice to Ofcom in respect of News Corporation's proposed takeover of BSkyB. The merger was abandoned at the height of the phone-hacking affair last year.
            Ofcom concluded that the merger would have "significantly increased News Corp's ability to influence opinion", Patry Hoskins says.
            Ofcom was asked to provide two specific reports into the takeover before News Corp eventually withdrew the bid.
            Richards says that the process of the merger involved a "vigorous exchange" between Ofcom and News Corp. "It was not a benign exercise," he says.
            Richards says there has been discussion of the takeover with the culture secretary since it was abandoned.
            The government appears to be considering Ofcom's proposal for a system of monitoring media ownership, he adds.
            "There has been discussion about it. Our impression is the government is considering it. It certainly appears to understand the point we're making," Richards says.
            Ofcom has often looked at media ownership in terms of what impact a merger would have on the public.
            But Richards says there is now another issue:
            "What influence in the political process might I have by virtue of the control of particular media assets. I think we will also look at that where in the past we have often looked at the former."

            Hacked off
            says he hopes to be discussing various options in July and would be grateful for Ofcom's input on plurality by then.

            Hacked off
            Richards: Current legislation has no means of addressing power gain by organic change or companies bowing out of media market. 

            Hacked off
            Bowe: We will look at our timetable and make sure we get report (for Secretary of State) on plurality to you on time.


            Ben Fenton
            [I'm checking to see if we knew Ofcom is including political influence in plurality review. Don't think we do. Quite a revelation.] 


            Hacked off
            Richards: Incentives most important issue. If public interest at odds with commercial interest, should be sceptical about self reg.

            IndexLeveson
            Richards: sceptical about self regulation if public interest at odds with commercial interests

            IndexLeveson
            Richards says need to look at incentives e.g. in advertising industry. Says ads would be undermined if consistently misleading

            Ross Hawkins
            Richards of Ofcom (on ad regulation) "There have been one or two moments when we've ensured the big stick is visible" 


            Hacked off
            Richards: The boundaries of digital media are highly blurred and fairly invisible to the viewer.

            Ross Hawkins
            Richards of Ofcom - people still like "ordinary television", can take that as a fact for next decade or two 

            Hacked off
            Richards: It's a fool's errand to try and regulate the internet.  

            IndexLeveson
            Richards: digital form is as much part of the future if not the future 


            Ross Hawkins
            Richards making point Ofcom's £115m budget covers lots of different areas ; spends c.£3.4m-£3m on broadcasting standards

            Hacked off
            asks Ofcom to think about how press could be regulated, preserving its independence and rights of free expression.

            Ed Richards



                  IndexLeveson
                  Ofcom chairman Colette Bowe and CEO Ed Richards now up


                  Guy Parker 



                  Hacked off
                  Parker has worked for the ASA since 1992.


                  Hacked off
                  Parker is stepping in for chairman Lord Smith, who is unable to attend the hearing.


                  Hacked off
                  ASA works by "persuasion and consensus" and has no legal or statutory powers.

                  Hacked off
                  Parker: The rules which appear in advertising codes are subject to full public consultation.

                  Hacked off
                  Parker: Majority of ASA council members are independent (8 of 12). Not allowed to have worked in advertising or marketing.