Prime Minister Julia Gillard yesterday warned Rupert Murdoch’s Australian arm it faced some “hard questions” as calls intensified for a media inquiry following the British hacking scandal.

Ms Gillard declined to comment on Mr Murdoch’s grilling by British MPs over the outcry that saw him close tabloid News of the World and dump his bid for satellite broadcaster BSkyB, but said the Australian public was concerned.

“I’m not going to engage in running commentary on testimony but I do believe Australians... are looking at News Limited here and are wanting to see News Limited answer some hard questions,” the prime minister said.

The Australian operation of Mr Murdoch’s News Corp., News Limited, dominates the local media, with extensive newspaper, television, internet and other holdings.

Its Australian chief John Hartigan hit back at the Prime Minister’s comments, describing them as “unjustified and regrettable”.

“There is absolutely no connection between events in the UK and our business in Australia,” he said in a statement. “There is no evidence that similar behaviour has occurred at News in Australia.”

News Limited has launched a review of all payments made over the past three years to ensure they were legitimate and Mr Hartigan said the company would be happy to respond to any questions from Ms Gillard.

“No one is more appalled or is more concerned about what has happened in the UK than we are,” he said.

Mr Hartigan has also vowed to cooperate with any Australian media inquiry after Greens party leader Bob Brown said he would call for a review of ownership and regulation – a bid backed yesterday by Australia’s journalists’ union. Ms Gillard indicated she was open to the idea, and said the scale of what happened in Britain prompted reflection in Australia.

“I’m certainly not making any conclusions, quite the reverse,” she said.

“All I’m saying is when... people have seen telephones hacked into, when people have seen individuals grieving (who) have to deal with all of this, then I do think that causes them to ask some questions here in our country, some questions about News Limited here.

“And obviously News Limited’s got a responsibility to answer those questions when they’re asked.” Mr Brown wants the government to convene a parliamentary or independent inquiry to examine media ownership, regulation and privacy issues following the News Corp. scandal.

Attorney-General Robert McClelland has ruled out regulating the media.

Mr Murdoch controls about two-thirds of Australia’s regional and metropolitan newspapers, has a stake in broadcasters Sky News and Fox Sports, and is angling to run the Australia Network, the international public TV channel. Meanwhile, the latest news about the issue appeared on the front pages of the major UK newspapers.

“The Murdoch family gave as good as they got during the Commons select committee hearing into what they knew (or didn’t know) about the phone-hacking scandal,” The Daily Telegraph argued. Despite a largely positive performance, the broadsheet concluded that the duo’s chastening appearance meant: “The spell that Rupert Murdoch has held over British politics was broken in three hours.”

Murdoch-owned title The Times struck an unsurprisingly upbeat tone, but conceded that James Murdoch’s admission that the company paid the legal fees of Glenn Mulcaire, the private investigator at the heart of the scandal, was cause for concern.

“Rupert and James Murdoch struck an apologetic tone...but the session left a number of questions unanswered,” its editorial said. “There is clearly a great deal of heat left in this scandal.”

The left-leaning Guardian, a constant thorn in News International’s side throughout the crisis, was less impressed, accusing the duo of showing “little contrition” and exploiting the attention to further commercial goals.

“The drama and the symbolism of the day should not blind us to the fact that the family’s minds remain on a bigger game: impressing on Parliament and public opinion their fitness to retain and expand their control of the British media market. On this they failed,” the paper reasoned.

Mr Murdoch interrupted proceedings to announce he was suffering “the most humble day of my life”, which was soon made even worse when his face was splattered by an activist’s plate-full of shaving foam.

“What an embarrassment for the country that some fool thought he could improve the civil inquiry by attacking an 80-year-old man,” The Times said.

Joining in the condemnation of the attack, Murdoch-owned tabloid The Sun ran with the headline Moron’s foam pie on Mr Murdoch.

“It’s embarrassing for Britain. And mortifying for the Met (police force),” bemoaned the daily.

Meanwhile, the Daily Mail’s Max Hastings extended criticism to members of the committee.

“These dripping wet inquisitors achieved the impossible feat of making us feel sorry for Rupert Murdoch,” he scoffed.

The Independent, Guardian and Express succumbed to the pun temptation, all splashing “Murdoch’s humble pie” across their front pages.

Factbox of Murdochs’ questioning by British MPs – Quotes

Some of the highlights of the session in front of Parliament’s Culture, Media and Sport committee.

“I just want to say one sentence. This is the most humble day of my life.” Rupert Murdoch’s opening remarks.

“No Rupert Murdoch’s remark when asked by Labour lawmaker Jim Sheridan if he accepted that “ultimately you are responsible for this whole fiasco?” When asked whom he blamed, Murdoch said: “The people that I trusted to run it (his media empire) and then maybe the people they trusted.”

“We felt ashamed at what happened. We had broken our trust with our readers.” Rupert Murdoch explains why the News of the World tabloid was shut down after 168 years.

“We have seen no evidence of that at all and as far as we know the FBI haven’t either,” Mr Murdoch said when asked about allegations the paper hacked 9/11 victims.

“I would like to say just how sorry I am and how sorry we are, to particularly the victims of illegal voicemail interceptions, and to their families.” James Murdoch’s opening statement.

“The News of the World is less than one percent of our company. I employ 53,000 people around the world who are proud and great and ethical and distinguished people, professionals in their work. I’m spread watching and appointing people whom I trust to run those divisions.” Rupert Murdoch on his empire.

Opposition Labour party lawmaker Tom Watson asked Rupert Murdoch when he became aware that criminality was “endemic” at the News of the World.

“Endemic is a very hard, a very wide ranging word,” Murdoch replied. “I also have to be very careful not to prejudice the course of justice that is taking place now.”

“I was absolutely shocked, appalled and ashamed when I heard about the Milly Dowler case only two weeks ago.” Rupert Murdoch on allegations that the News of the World hacked into a murdered teenager’s phone.

Rupert Murdoch revealed he had been invited to have a cup of tea with Prime Minister David Cameron within days of the general election in May last year, which brought Cameron to power at the head of a coalition government.

“I was invited within days (of the election) to have a cup of tea to be thanked for the support by Mr Cameron,” he said. “No other conversation took place.”

James Murdoch said no plans were afoot for News International, the British newspaper wing of News Corp., to launch a new Sunday tabloid to replace News of the World: “There are no immediate plans for that.”

Asked why he did not accept former News International chief executive officer Rebekah Brooks’ original offer to resign before she finally quit last Friday, Rupert Murdoch replied: “Because I believed her and I trusted her and I do trust her.

“In the event she just insisted. She was at a point of extreme anguish.”

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