The Prime Minister has insisted there was no deal between the Conservatives and Rupert Murdoch to smooth the way for the tycoon’s takeover of BSkyB.
But David Cameron admitted he was embarrassed in hindsight by some of his personal contact with the Murdoch media empire.
The Prime Minister offered only qualified support for his beleaguered culture secretary Jeremy Hunt, who faces calls for his resignation over the BSkyB deal.
Mr Cameron told the BBC’s Andrew Marr Show he had discussed the proposed merger with Mr Murdoch’s son James Murdoch at a Christmas party at the Oxfordshire home of then News International chief executive Rebekah Brooks.
The conversation took place in December 2010 after the business secretary, Vince Cable, was secretly recorded by undercover reporters from the Telegraph saying that he had “declared war” on Rupert Murdoch.
The Lib Dem minister had the power to block the BSkyB takeover at the time, but the job was handed over to Mr Hunt after Mr Cable’s comments came to light.
Clearly, after all that’s been written and said about it, yes of course one might do things differently. David Cameron
Asked what he had said to James Murdoch at the party, Mr Cameron said: “What I recall saying, although I can’t remember every detail of the conversation, is saying something like: clearly that was unacceptable.
“It was embarrassing for the Government, and to be clear from now on this whole issue would be dealt with impartially, properly, in the correct way, but obviously I had nothing to do with it, I recused myself from it.”
Asked whether he was embarrassed that he was even at the party, Mr Cameron said: “Clearly, after all that’s been written and said about it, yes of course one might do things differently.”
The Prime Minister admitted he had courted the Murdochs while in opposition but denied that he agreed to further their business interests in return for support from the Murdoch press.
He said: “The thing that people are asking is was there some big deal, some big agreement between me and Rupert Murdoch or James Murdoch that in return for support for the Conservative Party I would somehow help their business interests or allow this merger to go through.”
“That is not true. Rupert Murdoch said it under oath at the Leveson Inquiry, James Murdoch said it under oath, I will say it under oath.
“I did want the support of as many newspapers and television commentators for the Conservative Party because I wanted to take the country in a different direction.
“When it comes to the Murdoch newspapers, I was trying to convince a set of newspapers with largely centre-right, conservative views anyway, that they would be better off with the Conservative Party running the country.
“There is no great mystery here – that is what I was trying to do.”
He added: “There was no grand deal.”
If he did breach the ministerial code – than clearly that’s a different issue and I would act. David Cameron
The Prime Minister offered qualified support for Mr Hunt but said he could fire the minister if new evidence of improper behaviour emerged.
Mr Cameron said: “As things stand, I don’t believe Jeremy Hunt broke the ministerial code.
“He does a good job. I think he’s a good Culture, Media and Sport Secretary. I think he’s doing an excellent job on the Olympics and frankly I do think people deserve to have these things looked into properly.”
He called for “natural justice” to take its course so Mr Hunt could “explain his actions” and “all the information comes out”.
“If evidence comes out through this exhaustive inquiry where you’re giving evidence under oath – if he did breach the ministerial code – than clearly that’s a different issue and I would act.”
Shadow chancellor Ed Balls said: “The Prime Minister is refusing to investigate whether the ministerial code was broken and the code is very clear.”
He added: “I’m afraid the Prime Minister is trying to brush this away. He’s trying to push it into Leveson, because he’s afraid of scrutiny and he knows the allegation of side deals with News International is about Jeremy Hunt and the Prime Minister himself. That is the charge.”