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Phone hacking: Prime minister reveals inquiry powers Phone hacking: Prime minister reveals inquiry powers
(about 1 hour later)
  
The judge leading the phone hacking inquiry will have powers to call media proprietors, editors and politicians to give evidence under oath, the PM said.The judge leading the phone hacking inquiry will have powers to call media proprietors, editors and politicians to give evidence under oath, the PM said.
Lord Justice Leveson will oversee the public inquiry into the News of the World scandal and media regulation.Lord Justice Leveson will oversee the public inquiry into the News of the World scandal and media regulation.
David Cameron said those who sanctioned wrongdoing should have no further role in running a media company in the UK.David Cameron said those who sanctioned wrongdoing should have no further role in running a media company in the UK.
Meanwhile, the NoW's parent company News Corporation has dropped its bid to take full control of BSkyB. The family of murdered Milly Dowler, whose phone was allegedly hacked, said they were "delighted" at the inquiry.
In a statement, the company's chairman Chase Carey, said: "We believed that the proposed acquisition of BSkyB by News Corporation would benefit both companies, but it has become clear that it is too difficult to progress in this climate. The prime minister held talks in Downing Street with Milly's parents, Bob and Sally Dowler, and sister Gemma - the third such meeting the family has had with senior politicians since revelations emerged that Milly's phone messages were allegedly accessed after she went missing in 2002.
"News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and out contribution to it." Meanwhile, NoW's parent company News Corporation has dropped its bid to take full control of BSkyB.
The Commons had been due to debate a Labour motion - backed by the Conservatives, the Lib Dems and smaller parties, calling on Rupert Murdoch's company to drop its bid. Following fresh revelations about alleged malpractice at News International - News Corp's UK newspaper arm - Culture Secretary Jeremy Hunt had referred the company's bid to acquire the 61% of shares it does not already own in the broadcaster to the Competition Commission.
In a statement to the Commons, Mr Cameron said the inquiry would begin as "quickly as possible" and would be in two parts - an investigation of wrongdoing in the press and the police and a review of regulation in the press. The Commons was due to debate a Labour motion - backed by the Conservatives, the Lib Dems and smaller parties, calling on Rupert Murdoch's company to drop its bid.
Meeting editors
In a statement, Lord Justice Leveson said his "inquiry must balance the desire for a robustly free press with the rights of the individual while, at the same time, ensuring that critical relationships between the press, Parliament, the government and the police are maintained".
He added: "The press provides an essential check on all aspects of public life. That is why any failure within the media affects all of us."
Earlier, Mr Cameron told MPs the inquiry would begin as "quickly as possible" and would be in two parts - an investigation of wrongdoing in the press and the police and a review of regulation in the press.
He said Lord Justice Leveson, assisted by a panel of senior independent figures, would make recommendations for a better way of regulating the press which "supports their freedom, plurality and independence from government but which also demands the highest ethical and professional standards".He said Lord Justice Leveson, assisted by a panel of senior independent figures, would make recommendations for a better way of regulating the press which "supports their freedom, plurality and independence from government but which also demands the highest ethical and professional standards".
He will also make recommendations about the future conduct of relations between politicians and the press.He will also make recommendations about the future conduct of relations between politicians and the press.
Mr Cameron told MPs he will require all ministers and civil servants to record meetings with senior editors and media executives to help make the UK government "one of the most open in the world".Mr Cameron told MPs he will require all ministers and civil servants to record meetings with senior editors and media executives to help make the UK government "one of the most open in the world".
Labour leader Ed Miliband welcomed the proposal, arguing it must be imposed retrospectively, so that he and Mr Cameron publish all details of meetings with media executives dating back to the last general election. Mr Miliband welcomed the proposals, arguing it must be imposed retrospectively, so that he and Mr Cameron publish all details of meetings with media executives dating back to the last general election.
Mr Cameron was previously criticised for meeting Mr Murdoch in Downing Street soon after the election, because Mr Murdoch did not walk through the front door. Mr Cameron was previously criticised for meeting Mr Murdoch in Downing Street soon after the election, partly because Mr Murdoch did not walk through the front door.
Newspapers which did not support the government ran stories of "secret meetings".Newspapers which did not support the government ran stories of "secret meetings".
Earlier at prime minister's questions, Mr Cameron said a "firestorm" was engulfing parts of the media and police, and those who had committed offences must be prosecuted. Earlier, at prime minister's questions, Mr Cameron said a "firestorm" was engulfing parts of the media and police, and those who had committed offences must be prosecuted.
Mr Miliband said it was an insult to the family of murdered schoolgirl Milly Dowler, whose phone was allegedly hacked, that Rebekah Brooks was still News International's chief executive. Mr Miliband said it was an insult to the family of Milly Dowler that Rebekah Brooks was still News International's chief executive.
Mr Cameron responded: "She was right to resign, that resignation should have been accepted. There needs to be root and branch change at this entire organisation.Mr Cameron responded: "She was right to resign, that resignation should have been accepted. There needs to be root and branch change at this entire organisation.
"What has happened at this company is disgraceful - it's got to be addressed at every level.""What has happened at this company is disgraceful - it's got to be addressed at every level."
Mr Cameron also told MPs that his former head of communications Andy Coulson should be prosecuted if it is proved that he lied when he claimed to know nothing about phone hacking at the News of the World while he was editor.
On Tuesday, Mr Cameron met Deputy Prime Minister Nick Clegg and Labour leader Ed Miliband at Downing Street to discuss the hacking scandal.On Tuesday, Mr Cameron met Deputy Prime Minister Nick Clegg and Labour leader Ed Miliband at Downing Street to discuss the hacking scandal.
Metropolitan Police Commissioner Sir Paul Stephenson is believed to have updated the three men on the current state of the police inquiry into hacking claims when he visited Number 10.Metropolitan Police Commissioner Sir Paul Stephenson is believed to have updated the three men on the current state of the police inquiry into hacking claims when he visited Number 10.
In other developments:In other developments:
Following fresh revelations about alleged malpractice at News International - News Corp's UK newspaper arm - Culture Secretary Jeremy Hunt referred the company's bid to acquire the 61% of shares it does not already own in BSkyB to the Competition Commission.
But MPs wanted News Corp to pre-empt the regulator's inquiry - and Mr Hunt's final decision on whether to approve the deal - by agreeing to withdraw the bid.
Meanwhile, Labour's communications chief Tom Baldwin is facing renewed questions over claims he handled private information which was gained illegally during his years at the Times newspaper, another News International publication.Meanwhile, Labour's communications chief Tom Baldwin is facing renewed questions over claims he handled private information which was gained illegally during his years at the Times newspaper, another News International publication.
The former Conservative deputy chairman Lord Ashcroft makes the allegations in a blog posting on ConservativeHome, which he owns. Mr Baldwin has not responded to the claims.The former Conservative deputy chairman Lord Ashcroft makes the allegations in a blog posting on ConservativeHome, which he owns. Mr Baldwin has not responded to the claims.
On Tuesday, former senior police officers told MPs the original inquiry into phone hacking did not get the attention it deserved because other duties would have been neglected, and News International failed to co-operate with them.On Tuesday, former senior police officers told MPs the original inquiry into phone hacking did not get the attention it deserved because other duties would have been neglected, and News International failed to co-operate with them.
Sir Hugh Orde, president of the Association of Chief Police Officers (Acpo), said it was now time for News International to explain themselves - as the police had done, and hand over any evidence of corruption among police officers.Sir Hugh Orde, president of the Association of Chief Police Officers (Acpo), said it was now time for News International to explain themselves - as the police had done, and hand over any evidence of corruption among police officers.
"Let's not play around with legal games here - if they have names, dates, times, places, payments to officers, we would like to see them so that we can lock these officers up and throw away the key," he said.