Murdoch blasts Brown over services

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RUPERT Murdoch has criticised Gordon Brown, saying the Chancellor has made a mistake in 'locking out the private sector' from the provision of health services and education.

The media tycoon also disclosed that his News Corp group, due to report half-year figures today, had enjoyed a 'great quarter'.

In an interview with an Australian magazine, Murdoch repeated the criticism, familiar to readers of his group's Sun newspaper, of Tony Blair's euro policy. But he appeared more concerned by Brown's stance on the public sector.

'We are more against Gordon Brown than we are Tony Blair, and Gordon is, if anything, more of a friend,' Murdoch told The Bulletin. 'No one government, one Cabinet or one person can run a health service with over a million employees. It's just impossible.'

Murdoch was extremely upbeat about News Corp's performance. 'Business is extremely good at the moment,' he said. 'We had a great quarter. I probably shouldn't even say that, since we're within days of reporting our quarterly figures. But we're very happy. The advertising outlook for the next few months is extremely good.'

The figures are due tonight. Analysts predict that News Corp will report a rise in earnings from 17 cents per share to 23 cents in its second quarter, with most of the growth coming from Fox Entertainment.

Revenues are forecast to have risen by around 8% to $4.5bn (£2.8bn) and earnings before interest to have grown by 35% to $665m.

Murdoch said he would not let up in his drive to expand BskyB, the group's satellite pay-TV operation, as fast as possible.

'They're still growing at a healthy clip, very little churn. So if we take our foot off the accelerator and say that's enough, then of course the profits would jump,' he added. 'I don't believe this is the time to do it.'

Murdoch also dismissed concerns about stagnation at his British newspaper interests. 'In Britain it's only down on our forecast because of a price war and it's fine,' he said.

He denied he had made a new offer for US satellite company DirecTV, which was snatched from his grasp by a rival bid a little over a year ago. 'Right now there is no play. I mean, we would like it, or a part of it, but the answer is not at any price. I don't lie awake at night about it.'

Most US analysts rate News Corp and Fox shares as a buy with both expected to outperform their rivals in a steadily improving market for advertising. Merrill Lynch's Jessica Reif Cohen said that of the two, Fox was the more leveraged play and the better bet.

 

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