UNCUT: BSkyB bid dropped – now we must push for media ownership reform

13/07/2011, 03:22:48 PM

by Anthony Painter

It would be lovely to think that the BSkyB bid has been dropped because of Parliamentary unity and clarity of voice. Unfortunately, this is not really the case. The reality is that two other factors are likely to have led to this decision.

The increasing political and media attention on the scandal in the US and the impact of this focus on News Corporation’s financial standing is undoubtedly a major factor. Questions posed yesterday by Senator Jay Rockefeller who has insisted that allegations that victims of 9/11 had their phones hacked should be investigated have forced the Murdochs into a rear-guard action. BSkyB is no longer the focus- News Corporation itself is the concern and the corporate share buy-back yesterday indicates the emerging crisis for the company.

The second issue is the ticking time-bomb of the Ofcom ‘fit and proper’ test. If they fail that, then not only would the bid have been stopped in its tracks, if may have had to divest itself of its existing highly lucrative 39% shareholding.

There is an important caveat to this. Rupert Murdoch is nothing if not tenacious. His thinking will be that this is the end of the battle but not the war: stabilise the situation in the US and come back later. So be it. However, next time the rules of the game must be different. This is not about one individual or a family or a single company. It is about understanding how we’ve been shown the consequences of allowing large concentrations of power to swell- corruption. Now we must say: never again.

It would be astounding in reality if News Corporation was able to launch another bid in the foreseeable future whatever Rupert Murdoch may be hoping. Nonetheless, if it does it should be on different terms. The Communications Act 2003 is now looking like a highly flawed piece of legislation: most particularly, its public interest test is too narrow. It is not good enough to wait for the public inquiry to report- we need to draft some amendments to our media ownership laws immediately. The following would seem to be sensible:

–      Ofcom should be asked by the secretary of state to continue with its ‘fit and proper’ assessment of News Corporation executives with the evolving criminal investigations taken into consideration.

–      ‘Fit and proper’ itself must be reviewed to ensure that it encompasses executives presiding over the types of malign and illegal behaviour we have seen within News International over the past few years.

–      Cross-media ownership should be more heavily restrained. 20% ownership is the current limit. It should be reviewed with a view to lowering it and it must be revisited should a media company exceed the new limit even after a takeover has occurred.

–      Content provision and carriage should be separated. In other words, no company should be both a content provider and media infrastructure service provider.

–      The BSkyB plan could ultimately evolve its digital television into a walled and bounded internet platform- this is anti-competitive and should not be allowed. If a company provides access to any of the internet, it should be obliged to provide access to all of it on an equal footing (ie same ease of access and download speeds etc.)

These changes will ensure that corporate media power will be heavily constrained. It will not hamper free, fair and determined journalism which is a public good. It will create an open, diverse, and dynamic information market.

We can’t drag our feet in diluting concentrations of media power. We now have the opportunity to act with clear heads.

News International is the power lever; BSkyB is the cash machine. At least the bid has been stopped in its tracks. We are at the end of the beginning of this scandal. Now we can push for an open, competitive, plural, transparent, and dynamic media and an enriched public and commercial space. Time to get on with it before it’s too late again.

Anthony Painter is an author and critic.

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UNCUT: Commons sketch: PMQs

13/07/2011, 01:53:18 PM

by Dan Hodges

Westminster. Noon. Prime minister’s questions.

Or was it? The Commons was agog with anticipation. Would he show or wouldn’t he?

David Cameron once bestrode the chamber like a colossus. Back when the News of the World was Britain’s best selling newspaper, the Metropolitan Police was still renowned for its tenacious and fearless pursuit of criminals, and Kay Burley and Adam Boulton were united in mutual professional respect.

Not any more. Over the past week there’s been more chance of spotting a unicorn standing at the House of Commons dispatch box than the prime minister.

Some wild rumours were flying.  David Cameron would be unable to attend because of a pressing prior engagement; like a speech on the big society, or washing his hair. William Hague would be standing in. Or poor Jeremy Hunt.

Personally, I was hoping he’d send Andy Hayman. “Nah, nah. I’m not ‘aving it. I’m not letting the right honourable gentleman get away with that”.

Sadly it wasn’t to be. Just before twelve a familiar figure appeared and took his seat on the government benches.

At least, it appeared it be a familiar figure. It looked like David Cameron.  Spoke like David Cameron. Went pink in the face like David Cameron.

But could it really be him? Only the week before the old prime minister had accused Ed Miliband of opportunism for attempting to link phone-hacking to Rupert Murdoch’s BSkyB bid. Yet according to the new guy “It has become increasingly clear that while everybody to start with wanted in some way to separate what was happening at News International and what was happening at BSkyB that is simply not possible. What has happened at this company is disgraceful, it should be stopped at every level, and they should stop thinking about mergers and sort out the mess they’ve created”.

Old Dave had refused to call for Rebekah Brooks to resign. The new fella seemed to think she’d already done so, and what’s more, he welcomed it; “She was right to resign. That resignation should have been accepted”.

If Ed Miliband was fazed by the appearance of this prime ministerial doppelganger he didn’t show it. Then again, he’s undergone a bit of transformation himself. This time last week many in his own party were accusing him of being the new Ramsay McDonald for his betrayal of striking public sector workers. Today the public sector workers could go hang. The only pensions the Labour party was interested in were those of Murdoch and Brooks. And it wanted them drawing them in double quick time; “It would be quite wrong for them to expand their stake in the British media”, Miliband said, “Rupert Murdoch should drop his bid for BSkyB, should recognise the world has changed, and he should listen to this House of Commons”.

New Cameron agreed. He welcomed the cross-party approach being adopted by the leader of the opposition.

Ed Miliband rose again. This time he was wearing an expression of almost pained sincerity that left no one in any doubt that the time for cross party consensus  was over. Could the prime minister clear up one specific issue. Why was his former press secretary Andy Coulson a liar, a cheat, a blagger, a bounder, a baby snatcher, a forger, a cattle rustler, a grave robber and a teller of tall tales. Oh, and why had the prime minister been so unbelievably stupid in employing him?

Last week this sudden switch from civility to attack had thrown David Cameron. But that was a lifetime ago. And New Cameron was ready.

When Coulson had been employed he’d given him assurances. Not only that, he’d given those same assurances to the police, a select committee and under oath to a court of law; “if it turns out he lied it wont just be that he shouldn’t have been in government, it would be that he should be prosecuted. But Mr Speaker, we must stick to the principle that you are innocent until proven guilty”.

It may be that Ed Miliband was expecting a more evasive response. Or that in the excitement of the last week, he’s begun to believe Cameron was a broken opponent. For whatever reason, the confidence visibly began to drip away from him; “Mr Speaker, he just doesn’t get it”, he said, falling back on that well worn phrase he uses when he can’t think of a more spontaneous riposte. The Tory back-benches, sensing it, bayed in relief.

“I’m afraid, Mr Speaker, the person who is not getting it is the leader of the opposition”, responded New Cam. “What the public want us to do is address this firestorm. They want us to sort out bad practices at the media. They want us to fix the corruption in the police. They want a proper public enquiry”.

The world had indeed changed. But maybe not quite as much as we thought.

Dan Hodges is contributing editor of Labour Uncut.

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UNCUT: We are communitarians, so Miliband can lead us as Cameron can’t

13/07/2011, 08:10:46 AM

by Jonathan Todd

“We know no spectacle so ridiculous as the British public in one of its periodical fits of morality”.

Denis MacShane sought to console speaker Martin by writing to him with the words of Thomas Babington Macaulay at the height of the expenses scandal. But was this quotation really appropriate?

Weren’t the British people right to be aggrieved by elected representatives defrauding them? Aren’t they also legitimately angry with, as Ed Miliband put it, “bankers who caused the global financial crisis” and “those on benefits who were abusing the system because they could work – but didn’t”? And can there be any doubt that the revulsion of the public against the News of the World is justified?

The spikes in outrage against fiddling politicians and phone-hacking journalists, as well as the slower burning resentment at welfare cheats and fat cat financiers, makes a nonsense of Macaulay. The people he mocks instinctively know right from wrong. And in this intuitive grasp we see ourselves for what we are: communitarians.

The philosopher Julian Baggini foreswore ivory towers and spent six months with the people of Rotherham before concluding that this is the philosophy of the English. It was, incidentally, in the same town that Gerry Robinson tried to “fix the NHS” and Jamie Oliver “taught the poor to cook”. This is a worldview that stresses the responsibilities of the individual to the community. Membership of the community entitles rights and privileges but responsibility demands that these be reciprocated.

We are a nation that wants to see itself made up of; hard working families who play by the rules. We want those who play by the rules to be supported and to get on. We want those who don’t to be punished. The ascendency of Thatcherism, with its win-at-whatever-cost individualism, has obscured the extent to which we see ourselves as members of social groups to which we owe allegiance and the execution of responsibility.

Those who can work have a responsibility to do so. Those who can work but don’t should be penalised. Law makers have a responsibility not to be law breakers. Just like everyone else, including journalists and bankers. And they should feel the full force of the law when in breach of it. These professions are, however, held to more exacting standards of responsibility than legal compliance alone. Their integrity demands more than this. The irresponsibility of hacking the phones of grieving families is about much more than breaking the law.

As Ed Miliband’s advisor Greg Beales tweeted last Wednesday: “Today Ed Miliband spoke for the country because David Cameron can’t. Very important moment”. Tony Blair drew applause from a Progress audience last Friday by saying: “Ed Miliband has shown real leadership this week”. Read the rest of this entry »

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UNBOUND: Wednesday News Review

13/07/2011, 07:00:00 AM

Police pile pressure on News International

Senior executives at News International could be investigated by police after the company was accused by detectives of deliberately attempting to thwart the first phone hacking investigation. Deputy Assistant Commissioner Sue Akers, the officer leading Scotland Yard’s new inquiry, yesterday suggested to MPs that the scope of the investigation could be widened beyond journalists at the News of the World to include the “criminal liability of directors”. Broadening the inquiry could implicate more senior managers at the defunct tabloid’s owners, including James Murdoch, the chairman of News International, and Rebekah Brooks, its chief executive. The Metropolitan Police yesterday accused News International of “lying” during the original investigation into phone hacking at the News of the World. Senior officers told MPs that Mr Murdoch’s company had deliberately undermined a criminal inquiry, a move that could leave senior executives facing prosecution. Peter Clarke, the former deputy assistant commissioner of the Met, said: “If at any time News International had offered some meaningful co-operation instead of lies, we would not be here today.” – the Telegraph

PM attempts to regain control

David Cameron will announce on Wednesday that a judge will oversee a full-blown inquiry into the background to phone hacking and a panel that will examine media regulation, as Downing Street scrambles to regain the initiative after a series of decisive interventions by Ed Miliband. In a statement to MPs, shortly before all parties unite behind a Labourmotion calling on Rupert Murdoch to abandon his bid to take full control of BSkyB, the prime minister will announce that he reached broad agreement on Tuesdaynight with Miliband and Nick Clegg over the scope of the judge’s work. The judge, who will be named on Wednesday, will lead the main inquiry into the background to phone hacking, which is expected to be modelled on the Hutton inquiry into the death of Dr David Kelly in 2003. It will be established under the 2005 Inquiries Act, which means that witnesses may be compelled to appear and will give evidence under oath. – the Guardian

The Prime Minister will make a Commons statement ahead of a debate in which all three parties are backing calls for Rupert Murdoch to withdraw the News Corp bid for BSkyB. According to Sky sources, he will broaden the scope of the inquiry beyond just hacking by the NOTW and the bungled police investigation. The inquiry is also expected to include the relationship between police and the Press – which came under attack from MPs on the Home Affairs Select Committee on Tuesday as they quizzed present and past police chiefs – and between politicians and the media. It is understood that the inquiry will have the power to compel witnesses, including past and present senior politicians, to give evidence under oath. – Sky

In other news… Libya

Efforts to find a political solution to the Libyan crisis are intensifying as France, Britain and the US acknowledge that Nato military action alone is unlikely to force Muammar Gaddafi to step down. The UN and western countries are urging formal talks between the Benghazi-based rebels and the Gaddafi regime amid new signs that Tripoli might agree to discuss a transition of power. Alain Juppé, France’s foreign minister, provided the strongest indication yet of optimism about the outcome. “Emissaries are telling us Gaddafi is ready to go, let’s talk about it,” he said on Tuesday. “The question is no longer about whether Gaddafi goes but when and how.” François Fillon, the French prime minister, told the national assembly that a “political solution is taking shape”. Al-Baghdadi Ali al-Mahmoudi, Libya‘s prime minister, told the French daily Le Figaro that the regime was ready to negotiate “unconditionally” as long as Nato action ended. Gaddafi would not be involved in talks, he said, and would “respect the will of the people”. – the Guardian

Ireland’s credit rating cut

Europe’s debt woes escalated yesterday as Ireland’s credit rating was cut to junk status, and the crisis threatened to engulf its biggest victim yet in Italy. Moody’s Investors Service cut Ireland’s ratings by one notch to Ba1 from Baa3 and kept a negative outlook. It added that there was a danger that the country will need more bailout aid in late 2013 when the current European Union-International Monetary Fund support program ends. Italy and Spain both insisted last night that their economies, and with them the future of the euro, were secure from the debt crisis that has already floored Greece. Speculators have stepped up attacks on the two southern European economies – the third and fourth largest in the eurozone. In both countries borrowing costs soared, while stock markets and the euro fell back – despite pledges from finance ministers that Italy and Spain were committed to slashing their debt levels. – the Independent

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UNCUT: Two kinds of brave

12/07/2011, 11:30:01 AM

by Rob Marchant

Steve Richards in the Independent – what seems like an age ago but in reality only last Thursday – defended yesterday’s Labour politicians from the easy criticism that they should have acted against Murdoch. Oh how Blair and Brown bowed and scraped, some are saying. Rubbish. They saw the world as it was, and they prioritised getting and maintaining a Labour government over dealing with a longer-term and mostly intractable problem, the risible regulatory framework which exists around the British media. As had all the other governments before them. Perhaps they shouldn’t have: but it is equally plausible to say that the opportunity to take on the empire just didn’t present itself. It has now.

And the game is changing so quickly, hour by hour, that it is safe to say that no-one, on any side of the debate, really knows how it’s going to end. The astonishing thing is that it could really be anything across a very broad spectrum, starting at dirty tricks bringing down a Labour leader or other key protagonists, and finishing at the other end with the fall of a government. For this reason, the British media has gone into headless-chicken mode and is looking on impotently.

Ed Miliband has done a first-class job in playing the hand he has been dealt. His Monday commons performance against Jeremy Hunt, for example, was well-planned and well-executed. Tony Blair said on Friday he has “shown leadership” and he is right.

Where the esteemed Mr Richards’ analysis falls down is in one phrase: “For the first time…Miliband could display authentic anger without fear of retribution from News International.”

So, you think News International is suddenly going to roll over and die after a few bad days in the press? Er, no. Even if the Armageddon scenario for Murdoch – a meltdown of his empire – is a possibility, it is by no means a guaranteed one at this point. Read the rest of this entry »

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UNCUT: Phone-hacking is not the magic bullet

12/07/2011, 07:00:49 AM

by Dan Hodges

It was the Sunny ‘wot won it. “We killed the News of the World!”, screamed Liberal Conspiracy on Thursday afternoon, via a headline, replete with slammer, of which Rebekah Brooks would be proud. “Vindicated – a win for Labour MPs and the left online”, gushed the slightly more restrained Labour List; “Uncovering the catalogue of misdeeds by the paper, and the work in recent days to encourage advertisers to distance themselves from the News of the World, has been nothing short of inspirational”.

Thanks. I’ll find my inspiration elsewhere.

Now that the dust is beginning to settle over the ruins of what, in my unfashionable view, was a once great British newspaper, perhaps it would be a good idea to step back. Actually, screw it, let’s not. Let’s have a quick dance on the rubble before we get another News International title in our sights.

We may not be any good at winning general elections, but boy, are we good at shutting newspapers. Not that we actually wanted to. When we called on advertisers to boycott the paper, and then threatened those that wouldn’t, we didn’t want anyone to lose their jobs. They’re unfairly paying the price for the greed and excess of others, you see. It was Murdoch that closed the News of the World, not us. What do you mean we said we killed it?

Enjoyable though the spectacle of the British establishment eating itself alive may be to some, we are heading in to dangerous waters. And by ‘we’, I mean the Labour party. Read the rest of this entry »

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UNBOUND: Tuesday News Review

12/07/2011, 06:50:56 AM

Brown systematically targeted

The crisis engulfing Rupert Murdoch’s global media empire dramatically worsened last night when it was claimed that private investigators working for The Sun and The Sunday Times targeted the former prime minister Gordon Brown. In another extraordinary day in the phone-hacking scandal, News International’s denials that illicit newsgathering techniques stretched beyond the News of the World came under strain in the face of well-sourced claims that two of its other best-selling titles were also involved in serious wrongdoing. As Scotland Yard launched a fierce attack on News International for undermining its new inquiry into the alleged bribery of police officers by reporters, it was claimed that private investigators for Britain’s largest newspaper group attempted to access Mr Brown’s phone, medical records and bank account. – the Independent

Medical records disclosing that Gordon Brown’s infant son had cystic fibrosis were illegally obtained by The Sun newspaper as part of a News International campaign against him and his family, friends of the former prime minister claims. Mr Brown was a repeated target for investigators working for the tabloid and its sister newspapers, The Sunday Times and the News of the World, it was alleged. The newspapers obtained highly personal medical and financial information about him and his family. The most emotive claim relates to Mr Brown’s son, Fraser, diagnosed with cystic fibrosis in 2006, soon after his birth. His condition was disclosed on The Sun’s website in November 2006, when he was four months old. Mr Brown and his wife, Sarah, had only recently learned of their son’s condition, which often leads to a shortened lifespan. They were dismayed the paper had details of his illness. – the Telegraph

Journalists from across News International repeatedly targeted the former prime minister Gordon Brown, attempting to access his voicemail and obtaining information from his bank account and legal file as well as his family’s medical records. There is also evidence that a private investigator used a serving police officer to trawl the police national computer for information about him. That investigator also targeted another Labour MP who was the subject of hostile inquiries by the News of the World, but it is not confirmed whether News International was specifically involved in trawling police computers for information on Brown. Separately, Brown’s tax paperwork was taken from his accountant’s office apparently by hacking into the firm’s computer. This was passed to another newspaper. Brown was targeted during a period of more than 10 years, both as chancellor of the exchequer and as prime minister. Some of the activity clearly was illegal. – the Telegraph

Further accusations of cover up

A dossier of 300 emails, allegedly implicating staff and senior executives in illegal activity, was presented to detectives at a meeting on June 20. But it has now emerged that the emails were in the possession of News International’s troubleshooting team, led by Will Lewis, in April. Crucial evidence of widespread phone hacking and illegal payments to police officers, was allegedly discovered during an internal trawl of emails that began after the News of the World royal reporter Clive Goodman was arrested in 2006. More than 2,500 emails, which could implicate staff and senior executives in alleged wrong doing, were collected during the review. But when representatives from the newspaper met with Scotland Yard detectives last month the dossier of evidence handed to detectives contained just 300 emails. In addition it is also unclear whether a large amount of information – extracted by lawyers acting for News International from jailed private investigator Glenn Mulcaire’s financial records – has been made available to detectives. The company has already faced criticism over the fact that crucial emails identified four years have only just been handed to police. – the Telegraph

A leader is born

This time last week we reported that, nine months after becoming leader of the Labour Party, Ed Miliband had so dismally failed to make his mark that Iain Duncan Smith’s leadership of the Conservative Party was looking good by comparison. What a difference seven days make. For the first time since the two first faced each other across the despatch box, Mr Miliband is regularly besting David Cameron. He grasped, before the Prime Minister, how the Milly Dowler allegations had transformed the phone-hacking scandal in the public mind. He lost no chance to remind the Conservative leader of the liability that his former media chief, Andy Coulson, represented, hammering home the point about poor judgement. By taking the battle to Mr Cameron, Mr Miliband has almost magicked away New Labour’s 13-year courtship of Rupert Murdoch, while stamping his own authority on what he is presenting as post-Murdoch politics. So far, so good. The country needs a strong opposition, and Mr Cameron has had it easy hitherto. Now, Mr Miliband must show he can keep up the pressure, even when the opportunities are less obvious than this. – the Independent

Mandelson: we should have done more to reform the press

It should be a source of regret for everyone associated with the last Labour government that the only action in relation to the media for which we will be remembered is going to war with the BBC following the Iraq invasion in 2003. Of course, Downing Street hated the negativity of the press – what government wouldn’t? – but to say that, with all our other priorities, the prime minister decided that reform of the press would have to take a back seat is far-fetched. The truth is, no issue of priority or principle was involved. We simply chose to be cowed because we were too fearful to do otherwise. And David Cameron took up where Tony Blair and Gordon Brown left off. It has taken the News International crisis for politicians to discover their courage. Now they have to ensure that it is not primarily they who are protected from the “feral beast”, but the public. This requires not statutory regulation but a robust, independent process to enable individuals to make right the falsehoods that slip through, or slander that sometimes gets pumped out by news rooms in the name of “press freedom”. – the Guardian

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UNCUT: Give Ed credit – his leadership has just changed gears

11/07/2011, 01:00:14 PM

by Kevin Meagher

Last week was a watershed for lots of reasons. It saw a recalibration of the relationship between the tabloid media and politics. It spelled the end of Rupert Murdoch’s infallibility; with the media Mephistopheles left looking vulnerable and hopelessly out of touch. And it marked the point where David Cameron’s teflon coating started to rub off. The familiar attacks on his poor judgement and his arrogance fusing in one perfectly resonant episode.

But it saw something else too; the point where Ed Miliband looked, sounded and acted like a leader. He was not the architect of the events that unfolded last week – opposition leaders seldom make the weather like that – but he has become the first leading politician in living memory to get up off his knees and challenge the malign hold Murdoch and his acolytes have on British politics.

Tentative at first, by the end of last week his positioning was assured. In calling for Rebekah Brooks’ head, the scrapping of the press complaints commission and then pressing for the appointment of a judge to lead the hacking-gate inquiry, Ed was on the front foot throughout. His robust performance at this morning’s press conference further evidence that this episode marks a change in gear for his leadership. Read the rest of this entry »

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GRASSROOTS: Blue Labour is a red herring

11/07/2011, 11:30:06 AM

by George Bevis

Maurice Glasman’s work on the increasingly popular Blue Labour concept is a feat of brilliance; it echoes even the cleverness of Keynes.   I think it’s correct, but I also think it’s a distraction.

The problem with Blue Labour isn’t what it says, but what it is.  It is another political philosophy based primarily on growing social capital, reminiscent of the big society, stakeholder capitalism and many other more-or-less communitarian philosophies before them.

Such social capital approaches have proved problematic in that they can be too slow to solve many major socialist concerns: building enough hospitals; paying enough teachers and bringing enough people out of poverty. Although it may seem vulgar, Labour proved in government that the only kind of capital able to achieve those things quickly is financial capital.

Labour’s defining philosophy for government must therefore start with economic growth.  Growing social capital is very important, but it won’t achieve enough without a buoyant economic foundation.  And in the current period of austerity we cannot expect Britons to be enthusiastic about any philosophy which doesn’t primarily promise to alleviate the squeeze they feel.

Labour should be the natural party of growth economics.  Under Harold Wilson it was just that; the political champion of innovation and industry.  Labour’s argument back then remains valid today: we recognise and address the externalities that our extremist free-marketeering opponents refuse to acknowledge. Read the rest of this entry »

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UNCUT: BskyB vote: time to put your money where your mouth is

11/07/2011, 07:00:54 AM

by John Woodcock

After Ed Miliband made the running last week, members of parliament from all parties have said sensible things about the need for a new relationship between politicians and the press.

But the test of whether we understand the gravity of the current situation will come on Wednesday when the house of commons votes on Labour’s motion to delay the BSkyB takeover bid until the current criminal investigation into News International has concluded. I hope MPs on the government benches will put aside their differences and vote with us. They will have spent the weekend listening to constituents who simply will not understand if they talk a good game but fail to act.

Ed has been bold and astute. Over the past week he understood and communicated just how much changed with the revelation that this activity systematically targeted the public not just the famous. But of all the calls he has made, the most important may ultimately prove to be the way he has positioned Labour as champion of a continuing free press in Britain. Read the rest of this entry »

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