Government to review NOTW advertising

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The government is to review its advertising contracts with the News of the World, the Commons has heard.

Commons leader Sir George Young said he would address the issue as a "matter of urgency" with the Cabinet Office following the decision of a number of big companies to withdraw their advertising with the newspaper.

During questions on forthcoming parliamentary business, Lib Dem Stephen Williams called on the government to disclose how much it spends on advertising with the Sunday publication.

The Bristol West MP told MPs that companies including Ford, the Coop, Butlins and the state controlled Lloyds banking group had withdrawn advertising form News International following phone hacking claims.

He asked: "Could you ask a Cabinet Office colleague to come to the House and make a statement on the level of government expenditure on advertising with News International titles?

"And where private businesses and private investors have given a lead, couldn't the government now follow?"

In response, Sir George said the MP had raised an "important issue" of whether the government should continue to sponsor advertisements at a time when the private sector has acted in such a way.

He told MPs: "I will raise the matter urgently with my right honourable friend who has responsibility for this in the Cabinet Office and see if the House can be kept in the picture."

In his opening remarks, shadow Commons leader Hilary Benn called for a judicially led public inquiry.

He referred to the "terrible pain" felt by the 52 victims of the July 7 bombings and their bereaved families.

Benn told MPs: "That anyone could have tried to exploit their raw grief in order to sell newspapers shows exactly why yesterday's debate was so important.

"The best way to uphold the kind of journalism we respect is to root out the kind of journalism that none of us can stomach."

He said yesterday's response in the Commons had shown the House would not accept the culture secretary Jeremy Hunt's plans to approve the News Corporation takeover of BSkyB.

"In the light of what has been revealed about the activities at News International, this matter must now be referred to the Competition Commission," he argued.

Sir George said the government is now planning two inquiries, one into the original flawed police investigation and a wider probe into the actions of the media.

"The first is on the specifics of the original police investigation and why this did not uncover some of the allegations that are now emerging," he told MPs.

"The second is on the wider issue of media ethics. There is a relationship between those two inquiries which means that we will have to give careful thought to terms of reference and also to their relationship to the ongoing police investigation."

He added that the government will now consult widely on the inquiries’ term of reference and that a further announcement will be made to the House before the Summer recess.

On the BSkyB takeover, he said yesterday's debate had marked a "sea change in the perception of this House towards certain sections of the press".

Sir George added that the culture secretary was acting in a quasi-judicial role over the takeover and ministers should not interfere.

Bill Esterson (Lab, Sefton Central) called for a government statement on meetings between the prime minister and News International chief Rebekah Brooks.

The Commons leader said all ministers were obligated to publish details of meetings held with commercial organisations.

He said he was sure the government, as with the previous government will "continue to observe the relevant parts of the ministerial code".

Duncan Hames (Lib Dem, Chippenham) called for an urgent debate on media regulation due to Ofcom not examining the fit and proper person test in relation to the BSkyB bid.

Sir George said the culture secretary had stressed that before making a final decision he would "seek once again the advice of the independent external regulators", including Ofcom and the Office of Fair Trading.