MUMBAI: Media baron Rupert Murdoch who is fighting to save his media empire could face questions about his business in Australia.

Australia‘s Prime Minister Julia Gillard has said that News Limited must answer hard questions in light of the phone hacking scandal. A hearing was conducted in the UK in this regard where both Murdoch and his son James were grilled.

"When there has been a major discussion overseas, when people have seen telephones hacked into, when people have seen individuals grieving 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," said Gillard.

News Limited chairman, CEO John Hartigan responded saying that the company was happy to answer questions that the Prime Minister had regarding its operations. He, however, said that it was unjustified and regrettable that the Prime Minister‘s comments tried to draw a link between News Corporation‘s operations in the UK and those in Australia.

MUMBAI: While facing the parliamentary committee yesterday, Rupert Murdoch admitted that News of the World had been "caught with dirty hands", though he was not to blame for wrongdoing at the paper and "clearly" had been misled by his staff.

Murdoch started the session with an apology saying it was the "most humble day of my life".

Murdoch also hit out at his rivals for the failure to land the BskyB bid.

During the three-hour grilling by MPs on the Culture, Media and Sport committee, Murdoch stated: "A lot of people had different agendas I think in trying to build this hysteria. All our competitors in this country formally announced a consortium to try to stop us and they caught us with dirty hands and they got the story around."

Murdoch claimed that he was "absolutely shocked, appalled and ashamed" by the hacking of murdered schoolgirl Milly Dowler‘s phone.

But saying that he had no intention to resign, Murdoch refused to take responsibility for the scandal. "I do not accept ultimate responsibility. I hold responsible the people that I trusted to run it and the people they trusted. Because I feel people I trusted, I?m not saying who, let me down and behaved disgracefully. They betrayed the company and they betrayed me and it?s for them to pay."

Murdoch insisted he had no knowledge of the out-of-court settlements made by News International with chief executive of the Professional Footballers? Association Gordon Taylor and PR consultant Max Clifford ? despite them receiving hundreds of thousands of pounds.

Murdoch also claimed that he didn?t know that former News of the World editor Rebekah Brooks had admitted that journalists paid the police for information.

Labour MP Tom Watson, who has led the crusade against phone hacking, asked why he had not investigated these claims.

Murdoch said: "I didn?t know of it. This is not an excuse. Maybe it?s an explanation of my laxity. The News of the World is less than 1 per cent of this company; it employs 53,000 people around the world."

Both senior and junior Murdoch denied the company had tried to cover up on the phone-hacking crisis.

Murdoch junior added: "It is appalling to think that anyone associated with one of our papers would have done something like that."

Labour MP Tom Watson said it was "revealing in itself" that Rupert Murdoch did not know about the payments to hacking victims. The Murdochs began and ended their evidence session with an apology. James said: "I would just like to say how sorry we are to the victims of the illegal voicemail interceptions and to their families."

His father said: "I would just like to say one sentence?this is the most humble day of my life." He added: "James and I would like to say how sorry we are for what has happened. especially with regard to listening to the voicemail of victims of crime. At no time do I remember being as sickened as when I heard what the Dowler family had to endure ? nor do I recall being as angry as when I was told that the News of the World could have compounded their distress.

"Apologising cannot take back what has happened. Still, I want them to know the depth of my regret for the horrible invasions into their lives. I fully understand their ire. And I intend to work tirelessly to merit their forgiveness."

An alliance of media companies including the Telegraph group, the Guardian, Trinity Mirror ? the owners of the Daily Mirror ? and Associated Newspapers, has opposed Mr Murdoch?s takeover of the 61 per cent of BSkyB he does not already own.

Meanwhile, during the session Rupert Murdoch?s third wife Wendi Deng exhibited some of her boxing skills when her husband was attacked with a paper plate covered in shaving foam. She reacted quicker than anyone else including James. The man is a British comedian, popularly known as Johnie Marbles. He was arrested for suspicion of assault.