News International crisis deepens as paper closes

ANDY COULSON, former communications chief to British prime minister David Cameron, faces questioning by the Metropolitan Police…

ANDY COULSON, former communications chief to British prime minister David Cameron, faces questioning by the Metropolitan Police on suspicion he led the hacking of voicemail messages by the News of the World.

The disclosure last night came just hours after News International chairman James Murdoch stunned the Sunday tabloid newspaper’s 200 staff in Wapping and 32 staff in Dublin by telling them the paper would close after this weekend’s edition.

Mr Murdoch, the son of media baron Rupert Murdoch, pulled the plug on the paper after claims that it paid private investigators to illegally intercept the voicemail messages of murdered schoolgirl Milly Dowler, bereaved military families and relatives of 7/7 bombing victims. It is also accused of paying thousands of pounds illegally to corrupt police officers.

The dramatic decision was taken in an attempt to ensure that the widening scandal does not threaten the complete takeover by News Corp, owned by Rupert Murdoch, of satellite broadcaster BSkyB.

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British culture secretary Jeremy Hunt said he would not make a final decision on whether to sanction the BSkyB deal until September, following nearly 100,000 complaints that it would reduce plurality in the British media.

The title's Irish edition employs 22 full-time staff and 10 others on a part-time basis. Latest figures from the Audit Bureau of Circulation show it had a circulation of 113,463 in May. This was the highest sale achieved by a British newspaper in this market and would place it third overall behind the Sunday Independentand the Sunday World,both of which are published by Independent News & Media.

In a tweet, showbusiness editor Eoin Murphy said he was “gutted”.

“We are all still in shock but your tweets are much appreciated.”

The closure was described as hitting the newsroom like a “whirlwind” by one News International employee.

Despite the loss of a 168-year-old title, some senior figures, including British justice secretary Ken Clarke, believe News International will remain in the Sunday “red-top” tabloid market by transforming the Sun into a seven-day paper. “All they are going to do is rebrand,” said Mr Clarke.

However, subeditors on the Sunnewspaper walked out of their offices in Wapping shortly before 9pm last night, in protest at the treatment of their colleagues, accusing Mr Murdoch of "a cynical deceit", the National Union of Journalists said.

Staff at the News of the Worldwere in tears after Mr Murdoch jnr told them of the decision to close the title, which had lost more than 30 major advertisers in recent days and faced a campaign to get readers to boycott it.

Saying that many of the paper's staff had not worked there during the hacking scandal when "egregious behaviour occurred", Mr Murdoch said: "You may see these changes as a price loyal staff at the News of the Worldare paying for the transgressions of others."

However, both Mr Murdoch and his father are standing by News International's chief executive, Rebekah Brooks, who edited the News of the Worldat the time the hacking took place, and who may yet face criminal prosecution given evidence that police were bribed during her time in charge of the title.

Documents sent by News International to the Metropolitan Police show that five officers received £100,000 in return for information, with news of the scale of the payments leaving senior Scotland Yard officers stunned.

Clearly concerned by the failings of the police in the affair, the Independent Police Complaints Commission said it would monitor the investigation into the five and take control of it, if necessary.

Mr Coulson has been told he will face questions by police in the coming days, over whether he knew about, or controlled, the phone hacking.

There are rumours a second former journalist is also about to be arrested.

Labour leader Ed Miliband said he believed News International did not have to shut down the newspaper.

“It’s a big act but I don’t think it solves the real issues.”

Labour MP Chris Bryant, one of the few MPs to press for an investigation of the tabloid’s activities in recent years, said the closure was “another attempt to evade responsibility” by the Murdochs and other senior people. “Everything today proves that there is another layer of despicable behaviour there. People carrying the can are the writers,” he said, adding that Mr Murdoch jnr had shown “a singular lack of judgment” in not sacking Ms Brooks.

Despite reports to the contrary, she did not offer to resign on Wednesday.

Downing Street is clearly concerned about the damage the affair is doing to Mr Cameron’s reputation.