1                                          Tuesday, 10 July 2012

             2   (10.00 am)

             3   LORD JUSTICE LEVESON:  I have misstated the position in

             4       relation to Associated Newspapers Limited, for which

             5       I apologise.  I intend now to hand down a ruling dealing

             6       with the way forward in connection with the issue that

             7       has been raised.

             8   MR JAY:  Sir, we're continuing with Lord fr.

             9   LORD JUSTICE LEVESON:  Thank you very much.

            10                 LORD HUNT OF WIRRELL (continued)

            11                 Questions by MR JAY (continued)

            12   MR JAY:  May we look now at paragraph 42 of your statement,

            13       our page 00812, where you deal with the issue of

            14       coverage.  You say that universal application is utopian

            15       but the credibility of the new system could be fatally

            16       undermined if any genuinely big fish seek to escape the

            17       net.  Northern & Shell, I suppose, would be a genuinely

            18       big fish, would it?

            19   A.  I think I mentioned yesterday that there was a previous

            20       large publisher who had threatened to withdraw.  I am

            21       not sure it's a good idea to try and concentrate on one

            22       or the other when they have all told me that they are

            23       ready, willing and able to sign up.

            24   Q.  I'm just seeking to define your terms.  I mean, there

            25       are bigger fish in the pond, but it's pretty big,


                                             1






             1       Northern & Shell, isn't it?  It would meet this

             2       criterion?

             3   A.  Well, I've met their editors, I've met Richard Desmond,

             4       I've met Paul Ashford, and I'm impressed with their

             5       determination now to move ahead with the new body and to

             6       make a fresh start.

             7   Q.  Have you had anything in writing --

             8   LORD JUSTICE LEVESON:  With great respect, Lord Hunt, that

             9       doesn't actually answer Mr Jay's question.  Mr Jay's

            10       question was, I think, comparatively straightforward: do

            11       you agree that Northern & Shell are big fish within the

            12       terms that you seek to identify in paragraph 42 of your

            13       statement?

            14   A.  Yes.

            15   LORD JUSTICE LEVESON:  Thank you.

            16   MR JAY:  Have you had anything in writing from them on

            17       Lord Black's proposal, in particular, whether all

            18       aspects of that proposal are acceptable to

            19       Northern & Shell?

            20   A.  I have seen a letter, just seen a letter, where

            21       Northern & Shell express doubt as to whether the press

            22       card solution is the right way forward.  This echoes

            23       something that -- someone I also respect, Dr Moore, had

            24       made the point to me that any system of licensing or

            25       press cards is something that he too would find


                                             2






             1       difficult to accept, but the letter from

             2       Northern & Shell reiterated the point that they are

             3       ready, willing to sign up to the new body.

             4   Q.  May I ask you, to whom was that letter addressed?

             5   A.  To the -- my recollection is it was to the Press Card

             6       Authority.

             7   Q.  And its approximate date?

             8   A.  Last week.  I don't have it with me, but I can arrange

             9       for you to have a copy.

            10   Q.  Well, the Inquiry will have to consider that issue, but

            11       of course if they don't sign up and the devil is in the

            12       detail, then immediately the credibility of the new

            13       system would have been fatally undermined.  That must

            14       follow, mustn't it?

            15   A.  Yes.  Mr Jay, you've asked me whether a statute-backed

            16       system might not achieve the same outcome as a voluntary

            17       contract-based system.  Well, the answer is yes, on

            18       paper it might.  But from day one, I believe it would be

            19       a fundamentally different beast from the one I'm

            20       proposing and I would turn the question around.  Any

            21       system founded in statute would be adversarial, and

            22       I could expand on that as and when you would like me to

            23       do so, but on balance I far prefer going down the

            24       contractual route.

            25           But as Dr Moore pointed out to me, the jury -- and


                                             3






             1       indeed if I'm allowed to add, also the judge -- is still

             2       out on that issue.

             3   LORD JUSTICE LEVESON:  Yes, well, you're absolutely right

             4       about that, but why would a system necessarily be

             5       adversarial simply because it was underpinned by

             6       statute?

             7   A.  Yes, it's the question of what does "underpinning" mean.

             8       The system which would be based in statute would, I'm

             9       sure, inevitably cost more.  It would have to be funded

            10       by the hard-pressed taxpayer, by complainants or by an

            11       industry in decline.  Its boundaries would be set.

            12       No one would ever join it voluntarily so it could take

            13       little or no account of rapid technological and social

            14       change, and unlike the contract-based system which I'm

            15       advocating, which could be up and running in a matter of

            16       months, any statutory underpinning would take years.

            17       I confidently predict that, and what in the meantime are

            18       we to do?

            19   MR JAY:  May we look at those?  Why would it inevitably cost

            20       more?  That would depend on what it did, wouldn't it?

            21   A.  I suppose I'm just giving you the benefit of my 36 years

            22       in Parliament.  I've never known a statute underestimate

            23       the cost of any system it seeks to impose.  I've no

            24       need, I hope, to go into the Dangerous Dogs Act or the

            25       Dangerous Dogs Amendment Act or indeed the Industrial


                                             4






             1       Relations Act, which was on the statute book when

             2       I first entered politics.

             3           There are numerous examples, whereas if I put

             4       anything across, it is that I'm enthusiastic to proceed.

             5       I think we have a wonderful opportunity to get this

             6       system up and running, and my fellow commissioners on

             7       the PCC have given me authority to say to this Inquiry:

             8       if we receive a green light, we will immediately move to

             9       set up the new body.

            10   Q.  In terms of funding, is there anything wrong in

            11       principle with a system which has a mixture of state and

            12       industry funding?

            13   A.  Yes, because as Ofcom has discovered, state funding is

            14       always limited and usually cut.  My greatest arguments

            15       when I was a departmental minister were never with the

            16       Opposition; they were always with the Treasury.

            17   Q.  If we're talking about a system which, on any view,

            18       would cost less than £10 million a year, or, on your

            19       calculation, significantly less than that, and the

            20       funding pot were derived from a mixture of state funding

            21       and industry funding, would there really be a debate

            22       over quite small amounts of money?

            23   A.  I believe whenever a penny of public money is spent,

            24       there comes into play a system of, quite rightly,

            25       scrutinising the validity of every penny.  Of course,


                                             5






             1       under corporate governance that should happen anyway,

             2       but in corporate governance it does not require an

             3       appearance before the public accounts committee and

             4       indeed an accounting officer who can be subjected to

             5       very close scrutiny.  I just want the voluntary system

             6       to move ahead by consensus, by agreement and by

             7       contract, not requiring public subsidy.

             8   Q.  It might be said that public subsidy, or at least

             9       a degree of such subsidy, is a virtue insofar as (a) it

            10       contributes to the pot, and (b) insofar as there is

            11       a public element, it is subject to public

            12       accountability, if necessary before a committee in

            13       Parliament, so that rigour is maintained over the level

            14       of spending.  Do you agree with that?

            15   A.  Most of it, yes.  My concern, really, on behalf of the

            16       taxpayer, so to speak, is to see some meat on the

            17       arbitral arm, which is as yet unclear as to how that

            18       would benefit the taxpayer by moving a system of

            19       compensation away from court-dominated and

            20       lawyer-dominated argument, and I personally find the way

            21       the Calcutt privacy committee was looking at some form

            22       of tribunal-based system -- and indeed a number of

            23       commentators saying that there would be a senior figure

            24       but flanked by a member of the public, an independent

            25       person and by someone who represents the industry -- if


                                             6






             1       that could be done, I think that would justify the

             2       taxpayer investing in such a scheme for the benefit of

             3       the public, but at the moment I can't see that I could

             4       persuade the taxpayer, and indeed the public, that they

             5       should dip their hands in their pockets at this

             6       particularly difficult time to find money to finance the

             7       regulation of the press.

             8   Q.  You have a fundamental objection as well.  You say:

             9           "Any statutory system would be adversarial."

            10           You may mean "confrontational".  But might it be

            11       said that that's the wrong characterisation?  It would

            12       be wholly independent, it would be wholly at arm's

            13       length from the regulated entities, and although that

            14       may create a degree of constructive tension, to use

            15       someone else's phrase, that is desirable rather than

            16       undesirable.  Would you accept that?

            17   A.  Not -- not -- not really.  I think it's up to others to

            18       judge.  Perhaps I'm too close to this subject, but I do

            19       know that there are a number of Parliamentarians who are

            20       intent on clipping the wings of the press, and we've

            21       heard from a number of senior political figures at this

            22       Inquiry.  All of them have made it clear that they would

            23       support statutory intervention against the press only

            24       reluctantly and only as a last resort, which is why I'm

            25       pleading for an opportunity to make progress now.


                                             7






             1   Q.  But doesn't that statement, though, from

             2       Parliamentarians who have testified -- and

             3       ex-Parliamentarians -- indicate that they wouldn't in

             4       fact clip the wings of the press if a statute were

             5       introduced because they are so respectful of the

             6       principle of freedom of the press?  So doesn't that

             7       point the other way?

             8   A.  Well, I do speak as a former deputy chief whip and I can

             9       assure this Inquiry that there's nothing very edifying

            10       or democratic about MPs voting for a measure that deep

            11       down they believe to be wrong and ultimately

            12       unnecessary.

            13   LORD JUSTICE LEVESON:  Well, if that's right that they do

            14       consider it ultimately unnecessary -- and of course,

            15       ultimately, this whole issue will revert back to the

            16       politicians.  You say, "If we receive a green light,

            17       we'll set up a new system"; I'm afraid I don't have

            18       coloured lights in my armoury.  I will provide a report

            19       which will make a recommendation but it won't be my

            20       decision, as I'm sure you appreciate.

            21   A.  I do appreciate, sir, but I do think you have an

            22       unrivalled opportunity now to set the agenda.  Whether

            23       others will accept that agenda -- and I hope I can

            24       influence you in what that agenda should be.

            25   LORD JUSTICE LEVESON:  I understand.  Just on the


                                             8






             1       adversarial side, isn't there some value to be obtained

             2       from a system that is inquisitorial?  In other words,

             3       whether you have a mechanism that is resolving disputes,

             4       it doesn't necessarily have to be adversarial; it can be

             5       whoever is responsible for resolving the dispute, as it

             6       were, taking up the cudgels, rather as these inquiries

             7       or inquiries under the Inquiries Act have undertaken.

             8       I'm not suggesting you want a system like this, but it's

             9       a different process.

            10   A.  Yes.

            11   LORD JUSTICE LEVESON:  Could that work?

            12   A.  I just -- my basic premise is that I believe the

            13       sensible approach would be to avoid all government

            14       involvement in this process.  That's my instinctive

            15       reaction but I recognise there are others who will come

            16       to a different conclusion.  But I certainly don't like

            17       the idea of setting up what, in effect, would be

            18       censorship and licensing powers over a constituent part

            19       of the press to a body vested with responsibilities for

            20       the whole of the press.  There are a number of elements

            21       here which I find very difficult to absorb at a time

            22       when I see the way ahead so clearly.

            23   LORD JUSTICE LEVESON:  Well, I hope I've made it clear that

            24       I have absolutely no truck with anything that's going to

            25       lead to censorship.  That I don't mind revealing


                                             9






             1       immediately.  I think I've said it many times.  Yes?

             2   MR JAY:  I must say, juridically, Lord Hunt, I have

             3       difficulty with even grasping your fear.  If the

             4       statutes -- and it would be in the primary

             5       legislation -- said in terms that the regulator would

             6       expressly have no role over matters of taste, decency

             7       and editorial content, save as expressly provided for,

             8       and that would be specifically in the areas of

             9       correcting inaccuracy, dealing with harassment and

            10       intrusions into privacy, then this wouldn't be

            11       censorship; it would be merely doing that which your

            12       contractual system aims to do in any event.  I don't

            13       even see how the concern can sensibly be articulated,

            14       with respect.  Do you see my slight frustration on this?

            15       It's tilting at a windmill, frankly, which simply

            16       doesn't exist, with respect.

            17   A.  I certainly don't want to be quixotically chivalrous,

            18       but I think you have in fact answered your own question

            19       because you raised so many issues in the question.

            20       Taste and decency are not part of the regulatory process

            21       that I'm envisaging.  Certainly editorial content

            22       vis-a-vis the editorial code is a key feature of any

            23       cultural change that needs to take place, but it doesn't

            24       need a statute to back it up.  Do we really need a press

            25       law to highlight the need for a cultural change,


                                            10






             1       which -- I find everyone to whom I've spoken accepts the

             2       need for that cultural change.

             3   Q.  Okay, if you forgive me, I'm going to move on from that

             4       point.  But would you agree with this point: that if,

             5       for the sake of argument, this Inquiry were to recommend

             6       some form of contractual solution, Lord Hunt, but before

             7       that moment publishers have not signed up to the system

             8       because they might be awaiting the outcome of this

             9       Inquiry and its report, isn't there then a danger that

            10       the more difficult members of the constituency, as it

            11       were, would say, "We're not going to sign up to

            12       Lord Black's proposal as currently constituted; we're

            13       going to sign up to a weaker version, a softer version",

            14       and at that point there would be nothing anyone could do

            15       about it.  Would you agree?

            16   A.  Well, there's always opportunity to do something about

            17       it.  The only time you can't do anything is what you've

            18       got a law, a statute, on the statute book, which is

            19       completely inflexible.

            20           But if I may for a moment take the Irish Press

            21       Council as an example, that was set up before the

            22       Defamation Act.  Is there any reason why we shouldn't

            23       now proceed to set up this new body?  I'm just at a loss

            24       to understand why we can't make progress but I'm only

            25       here to make a proposal, not to make decisions.


                                            11






             1   Q.  But I think you're saying, Lord Hunt, that in fact the

             2       publishers are almost pen poised, ready, willing and

             3       able to sign up almost tomorrow the current version of

             4       the Lord Black proposal.  Is that your understanding?

             5   A.  Yes, but the problems are caused by -- am I allowed to

             6       say "the lawyers"?  Who may well say, "Before you sign,

             7       you need a bit more detail on this or a bit more detail

             8       on that." The publishers that I've met just want to get

             9       on with it.

            10   LORD JUSTICE LEVESON:  Problems with lawyers.  Yes?

            11   MR JAY:  Paragraph 46 now of your statement, Lord Hunt.  Our

            12       page 00813.

            13   A.  Yes.

            14   Q.  You plead:

            15           "The new regulator must invest significantly in

            16       improving the mediation service it offers."

            17           To what extent is this investment covered by

            18       Lord Black's proposal and the proposed budget for a new

            19       model?  We had the figures yesterday: 1.95 million for

            20       the PCC as is, 2.25 plus an enforcement fund for the new

            21       regulator as will be.  Is there enough money for this

            22       significant investment you're referring to?

            23   A.  Yes.  May I add to what I said yesterday?  I was asked

            24       how many complaints had been resolved since I was last

            25       here and I gave the figure of 260.  I was asked whether


                                            12






             1       that was to the satisfaction of the complainant and I'm

             2       told by my colleagues in the Press Complaints Commission

             3       that 77 per cent of complainants have returned forms

             4       saying they're very satisfied.  But I should point out

             5       that during that period we have actually received 2,900

             6       complaints and issued 1,011 rulings, and also pointed

             7       out, particularly to those who want to object to the

             8       postman delivering the newspapers, that certain

             9       complaints fall outside our remit.  But I'm not sure

            10       there is a depth of understanding of the valuable work

            11       still being done by the Press Complaints Commission

            12       that -- my eight staff have said to me they would be

            13       very happy if anybody wished to visit the Commission to

            14       see how this ongoing work is proving to be so

            15       successful.

            16           But of course we can invest more in mediation, and

            17       that's very much their wish, as long as -- and they are

            18       united on this -- please don't extend compensation as

            19       one of the options, because that would get in the way of

            20       mediation.

            21   LORD JUSTICE LEVESON:  Could I just understand the numbers

            22       and what the number 260 means or whether it was just an

            23       error.  When you say you've issued 1,011 rulings or

            24       2,900 complaints received and you've had 77 per cent of

            25       complainants who have returned forms saying they're


                                            13






             1       satisfied, is that 77 per cent of 1,000, 77 per cent of

             2       3,000?  What are we talking about?

             3   A.  No, it's 77 per cent of the 260.  The 1,011 rulings will

             4       include decisions where there's no breach of the code,

             5       where there is a breach of the code, where matters

             6       proceed to adjudication.  If I erred, it was in

             7       answering the question, which I thought was: how many

             8       complaints have been resolved?

             9   LORD JUSTICE LEVESON:  All right.  Well, I'll consider

            10       whether it's appropriate to visit the PCC.  At the very

            11       beginning of this exercise -- it seems a very long time

            12       ago -- I did visit a number of newsrooms and I'll think

            13       about that.  Thank you.

            14   MR JAY:  Can I ask you about one aspect of the Irish system,

            15       which you touch on in paragraphs 47 to 49 of your

            16       statement, page 00814.

            17   A.  Yes.

            18   Q.  This is a point of principle, really.  In the Irish

            19       statute, which is the defamation bill 2009:

            20           "The court may take into account, amongst other

            21       things, the extent to which the person adhered to the

            22       codes of standards of the Press Council and abided by

            23       determinations of the press ombudsman and determinations

            24       of the Press Council."

            25           So, in other words, someone who signed up to the


                                            14






             1       regulatory system may well be in a better position than

             2       someone who's not; is that right?

             3   A.  Why correct, yes.

             4   Q.  But the point of principle is this, I suppose: why, in

             5       a defamation case, should a responsible publisher be

             6       treated differently depending on whether he or she or it

             7       was or was not a member of the relevant Press Council?

             8   A.  I think there are a number of questions relating to the

             9       Irish model, and I did my best to seek to understand any

            10       questions in my mind when I went to Dublin.  I don't

            11       believe the Irish model would work as a sufficient

            12       incentive.  Self-regulation should, in my view, be

            13       a sufficient incentive, but nonetheless, all the big

            14       players have signed up, and so this model can work and

            15       there are benefits which could read across, which

            16       I think could be justified, such as linking

            17       a Reynolds-style defence to membership of a recognised

            18       regulatory structure.  I don't see any unfairness in

            19       that.  It is a recognition that that is the right thing

            20       to do.

            21   Q.  I suppose my point is that, judged objectively, the

            22       behaviour of the non-regulated person is exactly the

            23       same as the behaviour of the regulated person, but the

            24       regulated person has an additional advantage in relation

            25       to a defence which it can deploy in court proceedings,


                                            15






             1       but if there is no objective difference between the

             2       behaviour of person A, who is regulated, and person B,

             3       who is not regulated, why is the former in a better

             4       position?

             5   A.  Because there is a behaviour one wishes to encourage,

             6       and that behaviour is to subscribe to an ethical code,

             7       to a code which is clearly laid out, and relates to

             8       every part of the actions of the publisher, so isn't it

             9       a good way forward to encourage everyone to sign up?

            10       Which is really back to my contract-based solution.

            11   Q.  I suppose the justification may be one of two things.

            12       Either it could be said as a matter of principle:

            13       because the person has signed up to a code, although its

            14       behaviour in the individual case may be exactly the same

            15       as the non-regulated person's behaviour, it's

            16       demonstrated a commitment to a standard of ethical

            17       comportment, which requires recognition.  I suppose that

            18       may be one justification.

            19           The other may be a purely pragmatic one: that you

            20       want people to join the system, and rightly or wrongly,

            21       this is one carrot which entices people so to join.

            22       Would that accurately summarise the issue, do you think?

            23   A.  I think it demonstrates that there is a very strong case

            24       for a significantly greater alternative dispute

            25       resolution offering within the regulatory structure,


                                            16






             1       whether it's arbitration or mediation, and that was the

             2       main conclusion I came away with from Dublin, but there

             3       is no direct read across, and much will depend on the

             4       Defamation Act next year when it finally emerges.

             5   Q.  If we look at one other possible carrot or stick,

             6       however you want to characterise it.  Paragraph 50 of

             7       your statement, 00815.  When you say that "the question

             8       of whether or not a publication has signed up might also

             9       be taken into account by the courts when making awards",

            10       you're referring to awards of damages.  Do you have in

            11       mind the ability to award exemplary damages if you're

            12       not a signed-up person?  Or what do you have in mind

            13       there?

            14   A.  I think this is not an area where please rely on my

            15       expertise, but all I'm really making the point here is

            16       that I think this is an additional method of taking into

            17       account good behaviour.  No doubt we may come on to my

            18       concept that there should be a badge or kite mark

            19       associated with those publications online and in the

            20       press who subscribe to the code.

            21   Q.  So paragraph 51 is really a marker?  You're asking us to

            22       think about the detail?

            23   A.  51 or 50?

            24   Q.  50, pardon me.

            25   A.  Yes, it's a suggestion, but --


                                            17






             1   LORD JUSTICE LEVESON:  It's been suggested that when

             2       I raised this question that I'm seeking to punish those

             3       who aren't in a system.  That's not the purpose at all,

             4       and one has to be very careful that somebody who is

             5       libelled or whose privacy is invaded is just -- has been

             6       just as libelled and their privacy has just as much been

             7       invaded whether it's been by a good publisher or by a

             8       "bad publisher".  The issue that I was raising -- and if

             9       you have any comment, I'd be very interested to receive

            10       it -- was whether one couldn't say that it was relevant

            11       to the assessment of culpability for the purposes of

            12       damages that a publisher did have a system of checks and

            13       balances internally for the way in which they decided

            14       what stories to publish and could demonstrate that they

            15       had such a system, one way of which being that they were

            16       part of a regulated regime.  Not necessarily the only

            17       way, but the easiest way.

            18   A.  Yes, I agree with every word you've just said.

            19       I wouldn't want to divert you into any other route than

            20       finding a way of recognising good behaviour but

            21       certainly I would not want to influence judicial opinion

            22       on what constitutes a libel or slander or an unjustified

            23       invasion of privacy.  But I'm hoping that the system

            24       which I'm seeking to set in place would mean

            25       a substantial reduction in those cases.


                                            18






             1   LORD JUSTICE LEVESON:  But the snag with the system that

             2       you've suggested is that it's quite difficult to see how

             3       the law could take account of what was simply a private

             4       arrangement between members of the press.  That's the

             5       issue.  There has to be some touchstone which the law

             6       can recognise.

             7   A.  Yes.  I agree.  That is really what I would very much

             8       want to see, that touchstone recognised by the law.

             9   MR JAY:  You say that, don't you, towards the end of

            10       paragraph 49.  You would like to see recognition in the

            11       statute, but there is a fundamental difference of

            12       principle between recognition and creation?

            13   A.  Yes.

            14   Q.  We're not going to go back into the philosophical

            15       debate.  We've flogged that one.  May we move on,

            16       though, to pick up a point which you raised in relation

            17       to the badge system?  It's paragraph 53 of your

            18       statement.  It's a form of kite mark, I suppose.  People

            19       wear it with pride.  May I ask you, please, to explain

            20       why you think that would be an advantage?

            21   A.  I've just had a very productive meeting with

            22       representatives from the BSI, and I found there that we

            23       were discussing the same agenda and I certainly believe

            24       a proposed badge would be crucially important, greatly

            25       increasing the credibility and visibility of the system


                                            19






             1       and restoring public confidence as well as promoting

             2       accountability in the industry.  Adherence to the new

             3       regulator just really has to be demonstrated much more

             4       visibly -- with much more visibility than it is at the

             5       present time.

             6   Q.  Wouldn't some publications almost wear the absence of

             7       the badge as an insignia of pride, if I can put it in

             8       those terms, that they are metaphorically cocking

             9       a snook at the system and saying, "We aren't signed up

            10       to this, it's an old boy's network" -- or whatever

            11       disparaging term they choose to deploy -- "Read us

            12       because we are outside the system"?  Isn't there that

            13       risk?

            14   A.  Yes.  It doesn't mean we change our minds about how the

            15       system should be fashioned, because in my experience

            16       there are always those who wish to make a feature of the

            17       fact that they do not subscribe.

            18   Q.  Looking at the public as a whole, is it your view that

            19       the public would be more likely to read or want to read

            20       the badged publication as opposed to the unbadged

            21       publication?

            22   A.  I would want to encourage that.

            23   Q.  I'm sure, but would they?

            24   A.  One thing which I had been contemplating is that at some

            25       stage we ought to have a public consultation, but I felt


                                            20






             1       that to do anything in that direction would be wrong

             2       pending the result of this Inquiry.  But certainly my

             3       experience in meeting people is that there are very few

             4       I've met who would say that they would prefer to read

             5       a publication which had no badge of respectability,

             6       accuracy or adherence to the Editors' Code.  But they

             7       exist, I'm sure.

             8   Q.  Yes.

             9   A.  But not in huge numbers.

            10   Q.  Well, I'm sure some publications would take a pride in

            11       it and it's possible even to name one or two, but I am

            12       not going to now.  We all have in mind one in

            13       particular, but let's move on.

            14   A.  Well, Shrewsbury School has produced a lot of good

            15       papers.  The magazine to which you might be referring is

            16       just one of them.

            17   Q.  May I move on now, please, to paragraph 62 of your

            18       statement, Lord Hunt, at page 00818.  You're dealing

            19       with the Editors' Code.  You make the perfectly fair

            20       point -- and others have picked up on this and will

            21       elaborate it next Monday -- that:

            22           "Much of the language of or in the code is negative,

            23       detailing what journalists must not do."

            24           And you believe the regulator must do yet more

            25       positively to promote recommended practice across the


                                            21






             1       industry.  So are you saying that the code could be

             2       improved not merely to identify that which is bad but to

             3       accentuate that which is good?

             4   A.  Yes.  This was very much a feature of the work that

             5       Sir Ian Kennedy did with the General Medical Council and

             6       indeed the Law Society has done: concentrate on what

             7       makes a good doctor or a good solicitor, rather than

             8       seeking to identify the features of someone who could be

             9       described as a bad doctor or bad solicitor.  I would

            10       like to see much more positive emphasis in the code.

            11   Q.  Do you feel that a Code Committee, however designated,

            12       substantially comprised of editors, would achieve that

            13       aspiration?

            14   A.  Yes.

            15   Q.  And why do you say that?

            16   A.  Well, I have attended meetings of the Code Committee and

            17       I'm impressed by their determination to set the gold

            18       standard, to set a code which everyone can subscribe to

            19       and which can justify the preamble, which is part of the

            20       code, that all members of the press have a duty to

            21       maintain the highest professional standards.

            22   Q.  These are all statements of aspiration.  Have you

            23       explained, though, your idea to editors, that that which

            24       is necessary is not merely the denigration of the bad

            25       but the upholding of the good?  Have you grappled with


                                            22






             1       this particular point?  If so, what has been editorial

             2       reaction to it?

             3   A.  Well, I have discussed it with a number of editors who

             4       do not seek to contradict, but I'd be unfair on them if

             5       I didn't say they felt there were other priorities.

             6   Q.  Another point you make is the expectation that editors

             7       on this committee will leave their baggage at the door,

             8       as it were, if I've correctly summarised what you --

             9       it's not quite how you put it, to be fair to you.  It's

            10       paragraph 68.  You say:

            11           "They must undertake to divest themselves of all

            12       sectional and/or special interests and considerations in

            13       their work for the regulator."

            14           That, of course, has been the position to date,

            15       hasn't it?

            16   A.  We're not talking about the Code Committee any more;

            17       we're now talking about the complaints and mediation

            18       arm?

            19   Q.  Yes.

            20   A.  Yes.

            21   Q.  But it applies equally to the Code Committee, doesn't

            22       it, the same principle?

            23   A.  Yes, I think that in the handling of complaints and

            24       mediation, that is where I can testify that I find the

            25       contribution of the editors in dealing with each and


                                            23






             1       every complaint which has been adjudicated on where

             2       I have been in the chair -- the contribution is

             3       exceedingly valuable and you cannot predict, because of

             4       their background, where they will be coming from, nor

             5       indeed where they feel that the adjudication should go,

             6       and I am very impressed with their contribution.

             7           May I just point out that the majority of the

             8       editors on the Commission represent not only local and

             9       regional press, press outside London, but also magazines

            10       and agencies, so there is a broad spread.  As we dealt

            11       yesterday with the numbers of editors, there are huge

            12       numbers of editors now, and indeed one argument, if

            13       you're coming on to other suggestions as to how we

            14       proceed -- just to take in isolation what is referred to

            15       sometimes as a London-centric problem is to

            16       misunderstand the nature.  About 50 per cent --

            17       45 per cent, 50 per cent -- of all the complaints we

            18       receive are against local or regional newspapers and

            19       magazines.

            20           My head of complaints reminded me that often local

            21       and regional newspapers will go down the road of

            22       identifying victims of sexual-oriented crime -- perhaps

            23       sometimes that is the essence of the complaint of the

            24       member of the public -- and identifying addresses.

            25       That's always quite a key part of our work.  So


                                            24






             1       I wouldn't want to try and put across that we are just

             2       dealing with problems amongst larger newspapers in

             3       isolation.

             4   Q.  Thank you.

             5           Moving forward through your statement, paragraph 77,

             6       when you talk about -- this is our page 00823:

             7           "All regulated publishers will be expected to put in

             8       place effective internal compliance procedures.  There

             9       should be a named senior member of staff responsible for

            10       overseeing standards within each publisher."

            11           How do you believe that that will be brought about,

            12       Lord Hunt?

            13   A.  Initially by agreement -- and some have taken this step

            14       already -- but certainly it should be a matter for the

            15       contract and for the regulator, and we would want

            16       a requirement to provide accurate, comprehensive

            17       information reporting on the internal compliance and

            18       complaints-handling mechanism.

            19   Q.  In your discussions with publishers, have many or most

            20       of them accepted that there are issues, problems in

            21       relation to the culture, practices and ethics of the

            22       press which this Inquiry has demonstrated and/or

            23       otherwise been established to their satisfaction?  Or

            24       are many or most of them saying that these are isolated

            25       matters which really have been overstated, overblown by,


                                            25






             1       for example, this Inquiry?

             2   A.  I think there's a ready acceptance that there is

             3       a perception that the culture, ethics and practices of

             4       the press need to be improved.  The publishers I meet

             5       accept that perception and want to do something about

             6       it.

             7           Again, I mustn't go too far back, but when I had the

             8       responsibility of setting up the Nolan Inquiry into

             9       conduct in public life, I remember Michael Nolan

            10       reminded the world that it was the perception that was

            11       the problem, not the actual bad behaviour, and I think

            12       the same is present today.

            13   LORD JUSTICE LEVESON:  Well, it's not merely the perception.

            14       Whatever might have been the position in relation to

            15       Lord Nolan, there's certainly a fair amount of evidence

            16       I've heard which suggests that this perception is

            17       entirely well grounded.

            18   A.  Yes, I think that my example would be to exclude any

            19       criminal activities, any activities which are directly

            20       contrary to the law, in particular the criminal law, but

            21       I was with Mr Jay referring to the perception that

            22       there's something wider and deeper in the culture,

            23       ethics and practices of the press, which I don't think

            24       is justified, but that perception has to be tackled.

            25   LORD JUSTICE LEVESON:  Could I take you down a slight


                                            26






             1       tangent in relation to the criminal law?  Would you

             2       agree that it isn't entirely satisfactory simply to say,

             3       "Well, if an offence has been committed, that's a matter

             4       for the police and nobody should be concerned with

             5       that"?

             6   A.  I strongly agree.  I'm enthusiastic to see the Editors'

             7       Code becoming very much part and parcel of the ethical

             8       code which governs the whole industry, and I think here

             9       we have a very good start, and therefore any -- and

            10       I know there are disagreements about whether journalism

            11       is a profession or an industry or a trade.  Whatever it

            12       is, those journalists I meet want to subscribe to the

            13       highest possible professional standards and are

            14       embarrassed by the fact that those standards are not

            15       observed by what I would refer to as a small minority.

            16       But that gives rise to the perception which I think

            17       Mr Jay was asking me about.

            18   LORD JUSTICE LEVESON:  Yes.  Sorry to go down a side road.

            19   MR JAY:  May I move forward to what you say in relation to

            20       whistle-blowing, paragraph 92.  Each regulated

            21       publisher, you say, should be required by the new

            22       regulator to provide an externally run whistle-blowing

            23       service for all employees, but this would require

            24       prescription under the terms of the PIDA, so it would be

            25       some form of statutory underpinning but by secondary


                                            27






             1       legislation of a regulator which had already been

             2       created by agreement.  Have I correctly understood it?

             3   A.  I want anyone who feels that the code is not being

             4       observed, that they are being asked to do something

             5       contrary to the code as well as the criminal law, that

             6       there should be the opportunity to communicate on

             7       a strictly private and confidential basis with the

             8       regulator to share the problem.  But equally, I would

             9       hope that the industry had provided that individual with

            10       a mechanism within the organisation to do that first.

            11   Q.  On a related theme, may I go back to a point which was

            12       touched on yesterday, that when one is looking at press

            13       representation, either in the trust board or in the Code

            14       Committee or in the complaints body, one is looking

            15       always, on Lord Black's model and your proposal as well,

            16       at editors.  There's an absence of any reference to

            17       journalists.  You say, I think, journalists can come in

            18       through the lay representations provisions, but isn't

            19       it, as a matter of principle, desirable that there

            20       should be representation of journalists, possibly on the

            21       board but certainly in the complaints-handling wing of

            22       the regulator and also in the Code Committee wing of the

            23       regulator?

            24   A.  Yes, I have had representations from the Chartered

            25       Institute of Journalists and the National Union of


                                            28






             1       Journalists that there should be more representation and

             2       that's certainly something the industry should consider,

             3       but I wouldn't want to dictate how they should respond

             4       to that request.

             5   Q.  At the moment, we see from Lord Black's proposal that

             6       consideration has already been made to that possibility

             7       and journalists are not going to be represented; it's

             8       only going to be editors.  Shouldn't there be

             9       a mandatory requirement that we see the largest group of

            10       journalists, which I understand to be the NUJ, clearly

            11       represented on not the trust body -- but that could be

            12       open for debate -- but the Code Committee and the

            13       complaints-handling wing?  That would offer a fresh and

            14       a different perspective, perhaps, from that which we

            15       would see from editors, wouldn't it?

            16   A.  I find it very difficult to answer this question because

            17       I'm seeking to retain my independence from the industry

            18       response.  But I did set out, right at the start, in

            19       that document I presented to a range of people, not just

            20       editors but over 50 people representing the industry.

            21       I did hallmark editors as key, and I think editors are

            22       key.  The extent to which other sections of the industry

            23       are represented I think must be a matter for the

            24       industry, and I realise that there are areas of

            25       divergence between Lord Black's proposal and my


                                            29






             1       proposal, but that's for others to judge, and I do

             2       include this whistle-blowing as a possible trigger for

             3       a standards investigation, whereas I see that's not --

             4       and there are other -- I also believe critical

             5       adjudications should be flagged on the front page.

             6           What I don't want you to feel is that I'm just

             7       accepting whatever the industry comes forward with, but

             8       I do think editors are key and they set the standards

             9       and they set the ethical code and that's where I think

            10       the very foundation of the new structure that I'm

            11       proposing must be based.

            12   Q.  But you've only spoken really to proprietors and

            13       editors.  You defined your own terms by saying the

            14       editors are the key, but journalists would say, "Well,

            15       we are the keys, and there are many more of us than

            16       editors." You've created a system which is

            17       self-defining, self-limiting, and really

            18       establishment-minded, haven't you?  Isn't it essential

            19       that you burst it open, not to have the majority of

            20       journalists -- I'm not suggesting that; others might,

            21       however -- but to have some mandatory representation by

            22       journalists, really to shake the cage, which is what

            23       this industry arguably needs, Lord Hunt; isn't that

            24       fair?

            25   A.  Well, I think anyone who's had my experience with


                                            30






             1       journalists would know that journalists feature right at

             2       the heart of my career and my experience.  It's only on

             3       very rare occasions that I have the opportunity to talk

             4       to editors.  Most of my discussions have taken place

             5       with journalists, and indeed the National Union of

             6       Journalists laid on a public meeting, which I attended,

             7       which I found to be one of the most useful meetings,

             8       mainly because it came on at the time I was seeing

             9       Chris Jefferies and talking through with him how we are

            10       going to resolve matters.

            11           Please don't feel that I am overinfluenced by

            12       editors, but they are the leaders and they are widely

            13       respected within their publications, and often, sadly

            14       because of the decline of the industry, they remain the

            15       main individuals who are responsible for editorial

            16       content in the local and regional press.

            17   LORD JUSTICE LEVESON:  I understand that, but could I just

            18       pick you up on something you said just a moment ago?

            19       You made it clear that you're not necessarily just

            20       accepting whatever the industry comes forward with, and

            21       that, of course, is an important mark of independence,

            22       not just for independence sake but because you're

            23       bringing a fresh mind to it.  But doesn't that mean that

            24       your observation in the same answer, that the extent to

            25       which other sections of the industry are represented


                                            31






             1       must be a matter for the industry, doesn't really work?

             2       Aren't you able to say, "Well, actually, I want an

             3       independent operation, I'm going to be independent, and

             4       I think it needs this, that and the other"?

             5   A.  I agree.

             6   MR JAY:  Well, there's a mismatch then between what

             7       Lord Justice Leveson was putting to you and your

             8       position.  If it's a matter for the industry, one ends

             9       up with a system which principally they want but of

            10       course they'll understand that they have to move

            11       a certain distance to arguably a more liberal position,

            12       otherwise they face the clashing of the sword of

            13       Damocles on their heads.  But if you have a system which

            14       the public want or might meet a more objective standard

            15       of desirability, then you need some other entity to

            16       create that and we're back to our statute, aren't we?

            17   A.  Oh no, I don't think we're back to the statute, but

            18       I recognise that all these points are right at the heart

            19       of what I'm soaking to propose, that the new body, the

            20       fresh start, should be seen as just that.  It's not

            21       a PCC2 or PCC Plus.  It is a new body and it does have

            22       to be staffed, manned and worked by an amalgam of the

            23       best possible independent people, chosen and appointed

            24       by a widely recognised, completely independent process,

            25       and representatives of the industry who are clearly seen


                                            32






             1       as such and represent all the best parts of the

             2       industry, and I detect, certainly from the Society of

             3       Editors, that they feel there is widespread support for

             4       what is proposed by Lord Black.  I just keep repeating,

             5       perhaps too often, that the industry has come a very

             6       long way.

             7           When I had my meetings with journalists -- and one

             8       of the main editors asked me to meet all his

             9       journalists -- at what is known as quite a testing time

            10       for any individual -- and it's a great privilege to be

            11       asked to speak to all the journalists.  I did that.  The

            12       main problem they identified was that it was very

            13       difficult to visualise a new body which would seek to

            14       regulate such a diverse industry as the full newspaper

            15       and magazine industry.  But no one said, "Don't try",

            16       but everyone's aware that it's going to be a difficult

            17       and challenging process.

            18   Q.  Can we look at the complaints function of the new

            19       regulator.  You make it clear, Lord Hunt, in

            20       paragraph 101 of your statement that in your view, the

            21       existing complaints function of the PCC is very

            22       effective, from which starting point I suppose is might

            23       be said that very little needs to be done to the current

            24       complaints system to make it entirely fit for purpose;

            25       is that right?


                                            33






             1   A.  Well, I feel strongly that the complaints should be

             2       directed at the newspaper first.  I've had some very

             3       fruitful discussions with publishers on that point.  Of

             4       course people who are aggrieved should have an immediate

             5       point of contact and the newspaper or magazines should

             6       alert them to the direct telephone number, the direct

             7       email address to which an aggrieved person, even before

             8       a story has appeared but after a reporter or

             9       a photographer had been involved -- they should have the

            10       opportunity of getting straight through, and I think

            11       that would be a major improvement.

            12           At the moment, although it's -- important people

            13       should still have the option to come to the regulator

            14       first if they want to, that is at the moment the present

            15       position.  I do believe that as publications improve

            16       their internal systems, perhaps appointing readers

            17       editors, publicising contact details more effectively,

            18       encouraging feedback and so on, that will encourage

            19       readers and publications to build constructive

            20       relationships directly.

            21   Q.  In terms of what the new regulator would be doing, you

            22       describe what the PCC currently does at paragraph 104 as

            23       a process of brokered or proxy negotiation, not

            24       mediation.  Do you see that?

            25   A.  Yes.


                                            34






             1   Q.  Is that what you think should happen under the new

             2       system?

             3   A.  Well, I -- face-to-face mediation, for example, at the

             4       PCC is very rare.  I think it is a process that has

             5       brought some notable successes in the past and I think

             6       it would be very valuable for the new body to develop

             7       that work further, and I think there are a number of

             8       ideas of that nature which I would want to see take

             9       place.

            10   LORD JUSTICE LEVESON:  Is this brokered or proxy negotiation

            11       driven by the person from the PCC who is operating it or

            12       is it simply a postbox?  I don't mean that term too

            13       derisively, but I am concerned that individuals who

            14       complain do not have the knowledge, the understanding,

            15       the background to take on a newspaper that is well used

            16       to this sort of problem, and therefore may rather more

            17       easily be -- I was going to say "fobbed off", but let me

            18       be more polite -- be more prepared to accept a solution

            19       where somebody who understood what had gone on would

            20       say, "No, that's not good enough."  I'm just keen to

            21       know whether the PCC sees itself as passing the

            22       complaint on and making sure there is communication, or

            23       whether it sees itself also as advising a person who is

            24       complaining about how far they can and perhaps should go

            25       in relation to a particular complaint.


                                            35






             1   A.  Well, sir, I think you would find, if you were to sit

             2       with our team who answer the telephone, that they do

             3       guide, they do help, they do advise as to the best way

             4       forward, and they do refer a complaint to the

             5       publication and do so with the necessary background

             6       expertise.  But I have found in my visits particularly

             7       to local and regional press that they would far prefer

             8       the individual to have telephoned them first,

             9       particularly in cases of clear inaccuracy.  I've heard

            10       from those local and regional press: "Please, just tell

            11       us and we'll sort it and we'll sort it quickly."

            12           There is now this culture, which has improved beyond

            13       measure, of a willingness to try and rectify any

            14       immediate problems straight away, and therefore there is

            15       no need for the public to be diverted via the PCC.

            16       There should be a far better system of complaints

            17       handling within the publication.

            18   LORD JUSTICE LEVESON:  I agree with that as well but that's

            19       not quite what I was trying to drive at.

            20   A.  Please, if I haven't --

            21   LORD JUSTICE LEVESON:  My point is that the independent

            22       member of the public simply won't know what he or she

            23       can do, what it is appropriate to accept or not accept,

            24       and so, for example, may accept that the publication

            25       of -- I'll give an example that's been given in the


                                            36






             1       Inquiry -- a one inch by one inch comment on

             2       page whatever it is actually is sufficient, whereas

             3       anybody who understands what's happening and the nature

             4       of the error that's made would be saying, "Actually,

             5       I think you should be insisting on rather more than

             6       that."

             7   A.  Yes, and where that -- as I understand it, that is

             8       precisely the sort of advice that is given when somebody

             9       contacts the PCC, but I do know that our highly

            10       qualified staff would want there to be, alongside them,

            11       a standards and compliance arm which is learning from

            12       every case, and indeed setting standards which mean that

            13       there will be a substantial reduction in the number of

            14       complaints because the errors won't occur in the first

            15       place.

            16   LORD JUSTICE LEVESON:  Yes.

            17   MR JAY:  I just want to understand, Lord Hunt, how you see

            18       one other important issue being resolved under the new

            19       system.  This is the point about prominence of

            20       corrections and apologies, paragraph 110 of your

            21       statement.  Basically, you feel that there isn't a great

            22       problem with the present system and four lines down,

            23       your preference is therefore for the contract to allow

            24       for the right of the regulator to dictate prominence of

            25       any correction if and only if there's failure to


                                            37






             1       agree -- that's between the complainant and the

             2       publisher, of course -- or a publication reneges on such

             3       an agreement.  But why shouldn't the regulator always

             4       have power to dictates where a correction or apology --

             5       or an adjudication even -- should go in a newspaper?

             6       Why should it be the first port of call for the parties

             7       to agree?

             8   A.  I think that, to my mind, is the sensible way forward.

             9       Demanding equal prominence in all instances is just

            10       simply too prescriptive and the emphasis is the

            11       prominence must be reasonable but it must be to the

            12       freely expressed satisfaction of the individual and/or

            13       organisation adversely affected by the original story.

            14       But a critical adjudication is a different matter.

            15       I think that's a meaningful and highly visible sanction

            16       in a competitive industry.  I don't think anyone likes

            17       to have to publicise to their readers and rivals that

            18       they've been caught asleep at the wheel, and I think

            19       therefore my view is that there is a case for all

            20       critical adjudications to be flagged up on the front

            21       page or home page of the publication concerned.  I think

            22       that would increase the effectiveness of the

            23       adjudications and the awareness of the new regulatory

            24       system.

            25   Q.  Your starting point always, if I may say so, Mr Hunt, is


                                            38






             1       what might be acceptable to the publishers.  After all,

             2       they're buying into this system.  Why shouldn't it be:

             3       it's always for the regulator to decide; who cares what

             4       the publisher thinks?  If the regulator publishes an

             5       adjudication, it says, "You publish this on a particular

             6       page, there's no argument about it", and if a complaint

             7       is made and something less than an adjudication arises,

             8       again, it's for the regulator to decide.

             9           Why are we giving such weight to the feelings, the

            10       view of the publisher at every stage?

            11   A.  I thought I said prominence must be reasonable and it

            12       must be to the freely expressed satisfaction of the

            13       individual and/or organisation adversely affected by the

            14       original story.  That's the hallmark of the way in which

            15       complaints are handled.

            16   Q.  But it may be the hallmark of good regulation that the

            17       upshot is not to the freely expressed satisfaction of

            18       the regulated person.  It may be deeply disappointing to

            19       the regulated person, but the regulated person has to do

            20       as its told.  That's the advantage of a truly

            21       independent system where the regulator is at arm's

            22       length from the regulated entity and moreover can wholly

            23       dictate what the regulated entity has to do.  But your

            24       system always has a tinge of what the regulated entity

            25       might want, because you're using terms like "freely


                                            39






             1       expressed satisfaction".  What's their satisfaction got

             2       to do with it?

             3   A.  Freely expressed satisfaction of the public?

             4   Q.  No, of the regulated --

             5   A.  My words were:

             6           "Prominence must be reasonable and it must be to the

             7       freely expressed satisfaction of the individual and/or

             8       organisation adversely affected by the original story."

             9   Q.  So the publisher is not within this --

            10   A.  No, it's what the individual and/or organisation wants

            11       who are adversely affected by the original story.  And

            12       I realise that there is some divergence from what the

            13       industry is suggesting, particularly so far as critical

            14       adjudications are concerned.  I want those to be flagged

            15       up on the front page and I think that is what the public

            16       would want.

            17   Q.  Mm.

            18   A.  So it's always a balance.  I think the whole system I'm

            19       suggesting is constantly trying to balance, but it is

            20       a system that is so far untried and untested,

            21       I recognise that.

            22   Q.  I'm not sure all your ideas have been reflected in

            23       Lord Black's proposal, have they, in terms of --

            24   LORD JUSTICE LEVESON:  I think Lord Hunt has said in terms

            25       they haven't been, but that's where we are.


                                            40






             1   MR JAY:  Thank you.  Moving forward, the issue of

             2       third-party or group complaints.  Paragraph 115 and

             3       following, particularly paragraph 117.  What exactly is

             4       your proposal here, Lord Hunt?

             5   A.  On third-party complaints?

             6   Q.  Yes.

             7   A.  Well, the PCC's policy on dealing with third-party

             8       complaints has evolved over time and I think the true

             9       position is often misunderstood.  As I set out in the

            10       submission, our first-party rule is not substantially

            11       different from the rules on standing promulgated by all

            12       tribunals.  The PCC does generally take forward

            13       complaints about matters of fact for which there is no

            14       first party or for which the information needed to reach

            15       a determination is already in the public domain.

            16           Now, in circumstances where there is an individual

            17       involved and that individual has not complained

            18       or perhaps pursuing an investigation or negotiating

            19       a remedy could be potentially intrusive to that person

            20       or impose other difficulties, complainants are now

            21       offered the opportunity to argue that there is an

            22       exceptional public interest, meaning the Commission

            23       should take forward an independent, own volition

            24       investigation.

            25           In practice, the PCC rarely chooses to proceed in


                                            41






             1       such cases but I think the current position is sensible.

             2       But I think the new regulator, the new body, should

             3       clarify the policy and make an increasing effort to

             4       communicate it effectively.  That's what I'm suggesting.

             5   LORD JUSTICE LEVESON:  I'm sure you've had the opportunity

             6       to see the evidence I've heard.  I've heard from

             7       immigrant groups, from transgender groups, from other

             8       groups, and indeed I'm pressed to hear from disabled

             9       groups, but it's the same point and I recognise it very,

            10       very clearly: that they feel that there is simply no

            11       mechanism through the PCC whereby they can get redress

            12       for what are considered to be egregious distortions of

            13       fact and unbalanced stories.

            14           Of course, one has to allow for freedom of

            15       expression but there is some way between freedom of

            16       expression on the one hand, simply so expressed, and the

            17       type of complaint that you will have seen I have heard,

            18       and in respect of which there are many other submissions

            19       that I have received.

            20   A.  Yes.  The notion of group complaints is a tricky one,

            21       I accept that, and there's a delicate balance we have to

            22       try and achieve because it wouldn't be in the public

            23       interest to open up the possibility of allowing the code

            24       to be systematically abused by those whose principal or

            25       sole aim is to restrict freedom of expression.  But


                                            42






             1       having now held many meetings with individuals and

             2       organisations from all sections, including several who

             3       have given evidence to this Inquiry -- I know that many

             4       people are concerned that clause 12 of the code,

             5       discrimination, relates only to individuals, but I think

             6       we've already within the PCC taken a more flexible

             7       position than many people would recognise.

             8           Of course, much of the problem can be addressed by

             9       means of clause 1, where a first party is not necessary,

            10       but I believe that when a body of evidence has mounted

            11       suggesting that any publication has been engaged in

            12       repeated or systematic vilification of any vulnerable

            13       group, the new standards arm might well have a role in

            14       publishing clear guidance.  I accept that.

            15   LORD JUSTICE LEVESON:  Yes.

            16   MR JAY:  So you're really arguing for the maintenance of the

            17       status quo, save that the new standards arm may have

            18       a role if it thinks the problem is systemic; is that

            19       correct?

            20   A.  Yes, a clear pattern of complaints might reasonably be

            21       taken as possible evidence of a systemic breakdown in

            22       standards, and the regulator could regard this as

            23       a sufficiently serious issue of public interest to

            24       justify a pre-investigation by the standards arm, and

            25       the complaints arm would draw any such pattern of


                                            43






             1       complaints to the attention of the standards arm where

             2       appropriate.

             3   Q.  At the end of the five years of your commercial

             4       contractual regime, Lord Hunt, what's to stop the

             5       industry en masse agreeing to new contracts which are

             6       much less stringent?

             7   A.  Well, I have already made it clear to those who are

             8       looking at the contractual terms that I never really

             9       liked the idea of five years.  I want a binding

            10       contract.  I'm told, however, to take a period of five

            11       years would be a sensible way forward, but I would add

            12       the word "rolling", so there is always a five-year

            13       commitment.  But as I understand it at the moment, no

            14       further work is being done in developing the contracts

            15       pending the result of this Inquiry, which is a very fair

            16       position for the industry to take, but I'm just keen to

            17       get on with this.

            18   Q.  Yes, whatever you get on with, though, Lord Hunt, would

            19       have to be for a fixed-term because that's the legal

            20       advice that Lord Black has received, and it's correct

            21       advice.  You can't have a contract which is indefinite

            22       or indeterminate.  At the end of the fixed-term, there's

            23       nothing, is there, to stop the industry en masse getting

            24       together and agreeing a less stringent regime, is there?

            25   A.  Well, I understand the very best brains are being


                                            44






             1       engaged on this and I would have thought you could have

             2       a period of notice which would have to be given by

             3       anyone or any party seeking to withdraw, and I suppose

             4       any contract can be revisited, subject to what the

             5       provisions allow, but I hadn't wanted to get into all

             6       that.  I just want to get on, set up the new body.

             7           But you're quite right; we must make sure it can't

             8       be suddenly -- it can't be met with a brick wall one

             9       day.  It has to be -- and I want to see a new body which

            10       gathers strength over the years and establishes

            11       a completely new and strengthened culture, which the

            12       overwhelming majority in this great -- I would call it

            13       profession -- want to see.

            14           And so, I suppose in a way I seriously commend to

            15       you the model I propose.  I don't think it's perfect,

            16       I don't think any model can be perfect, but what I can

            17       do is to suggest and to assure you that this model would

            18       mark a fundamental shift in the balance of power between

            19       the regulator and the regulated, which I'm presently

            20       encouraged to believe that the newspaper and magazine

            21       industry is now willing to endorse.

            22   Q.  Of course, in five years' time, all of us will have

            23       moved away from this, won't we?

            24   A.  Well, if I'm still here in five years' time, I would

            25       hope that people will look back and see this Inquiry as


                                            45






             1       having set the agenda to which the industry has

             2       responded constructively.  This system can achieve

             3       whole-hearted commitment by the regulated community, and

             4       above all I believe it can restore trust in British

             5       journalism.

             6   MR JAY:  Well, I think on that note, Lord Hunt, those were

             7       all the questions I -- I'm mindful of the fact I've set

             8       myself a timetable for today and I've now hit the end of

             9       that time.

            10   LORD JUSTICE LEVESON:  Right.  Is there anything you feel

            11       that you've not had the chance to develop that you

            12       wanted to develop, Lord Hunt?

            13   A.  No, sir, but I would hope that perhaps there could be

            14       some opportunity to share with the Inquiry the actual

            15       workings and handling of complaints as they occur today.

            16   LORD JUSTICE LEVESON:  I have had the benefit, as you know,

            17       of an enormous volume of material from the PCC, which

            18       admittedly hasn't included visual sight of people

            19       working, but it's certainly included the paper

            20       consequences of all they've done, so I'm very mindful of

            21       what's been happening, unless you tell me something is

            22       very different today than it was from last summer when

            23       all this evidence was submitted.

            24   A.  It's just, sir, I felt that the questions about how

            25       complaints are handled would be far better understood if


                                            46






             1       it was possible to see the way in which complaints are

             2       handled at first hand rather than the documentation

             3       relating to it.  It's the one thing that really has

             4       impressed me, which is why I'm determined that we will

             5       maintain the existing complaints and mediation system.

             6       It's the one thing that has impressed me about all that

             7       has been achieved so far, and I have seen victims, and

             8       the complaints, generally speaking, about the existing

             9       system are that there aren't yet sufficient powers to

            10       enable things to be done which should be done, and when

            11       I've sat down with victims with this key question of:

            12       "What can the new body do to ensure that what happened

            13       to you will never be allowed to happen again?" -- that

            14       has been the key question, and I think we are now poised

            15       in being able to do something about it and to restore to

            16       the regulator, which in my view is the regulator for the

            17       first time ever, the ability to strengthen public trust

            18       and confidence in British journalism.

            19   LORD JUSTICE LEVESON:  All right.  Thank you very much

            20       indeed.  We'll take a break.

            21   (11.25 am)

            22                         (A short break)

            23   (11.36 pm)

  
            25


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