BSkyB deal 'incomprehensible'

The public will find it "incomprehensible" if the government does not delay its decision on allowing News International to take control of BSkyB in light of the phone hacking scandal, Labour has said.

In an urgent question in Parliament this afternoon Labour's leader in the Lords, Baroness Royall, asked: "In the light of the loss of public and commercial confidence in News International and the imminent closure of the consultation period, whether they will suspend consideration of News Corporation’s bid to takeover BSkyB?"

Speaking for the government, Baroness Rawlings insisted "hacking has nothing to do with the plurality".

She told peers that culture secretary Jeremy Hunt believed there were "sufficient safeguards" to make certain News Corporation complied with the undertakings it had given

"News Corp. have taken serious undertaken and discussed them in good faith," she told peers.

But Baroness Royall said Hunt did have the legal right to delay the decision if he wanted to.

"I think the House and indeed the country will know that that is the wrong answer," she told Baroness Rawlings.

She told peers the public, as well as News Corporation's advertisers and investors, would find it "incomprehensible" if the government did not delay its decision.

Baroness Rawlings said Hunt would "not be rushed, he will be fair" but said he had to make the decision "strictly on media plurality within the law".

"Hacking is illegal. And wrong. And these cases are disgraceful and shocking," she said.

But the shadow Attorney General, Baroness Scotland, said there was no reason for Hunt to take the decision now and that it would be "quite wrong" for him to take a decision about the validity of accepting the undertakings from News Corp. before "properly considering the impact of the horrendous allegations that are now being made".

"This government chose to restrict the referral simply to plurality but they wee perfectly entitled and should have referred this matter also on broadcasting standards," she added.

According to the BBC the culture secretary has received 100,000 submissions on the takeover bid.

Baroness Rawlings said Hunt would receive the submission tomorrow and it would "take time" to study them, suggesting Hunt does have some breathing room.

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