News Corp Australian arm reviews spending after allegations

The Australian arm of News Corporation, News Limited, is to conduct a review of all editorial expenditure in the past three years, following what it claims are false accusations of wrongdoing.

In an open letter published on the Herald Sun website today, News Limited chairman and chief executive John Hartigan, insists he has "absolutely no reason to suspect any wrongdoing at News Limited".

"However, I believe it is essential that we can all have absolute confidence that ethical work practices are a fundamental requirement of employment at News Limited".

He said the review will confirm "that payments to contributors and other third parties were for legitimate services".

The move comes as the government plans to back a Labour motion in parliament which will call on News Corporation boss Rupert Murdoch to withdraw his company's bid for the remainder of BSkyB.

This followed reports of further allegations against the now closed News Corp title the News of the World, in relation to both phone hacking and payments to police.

In his letter today Hartigan referred to events unfolding in London as "disturbing" and said he sought to keep his colleagues "up to date with our position in Australia".

"Some media outlets, certain commentators and some politicians have attempted to connect the behaviour in the UK with News Limited's conduct in Australia. This is offensive and wrong.

"... However erroneous the allegations, I believe it is important to deal with these perceptions constructively.

"Our code of editorial conduct is available to all journalists; indeed all staff can access it. It is on our intranets and available in hard copy. The code is given to journalists who are required to read it and abide by it as a condition of their employment.

"Yesterday I asked divisional managers to publish the editorial code on each of our masthead websites to neutralise even the most ludicrous assertions that we are somehow afraid to disclose it."

He added that every employee of News Corporation across the world also recently received a copy of the updated standards of business conduct.

"These standards which are already on the News Corp website are being posted on all of our intranets," the letter adds.

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