It was the day during which the UK prime minister became the latest News of the World victim, with PM David Cameron badgered for 139 minutes in parliament with questioning over his close relationships with News International executives.

Cameron conceded that he had spoken to News International execs regarding the now defunct BSkyB deal but declares that he “never had one inappropriate conversation” with News International execs.

He also admitted that he was aware of putting himself in a “compromising” situation with his relationship with News International, telling parliament:”I specifically asked to be taken out of any of the decision-making [of the BSkyB deal] and any of the information because I didn’t want to put myself in any sort of compromising position.”

This is a serious issue, writes Dan Sabbagh in The Guardian:

“David Cameron’s apparent admission that he did discuss Rupert Murdoch’s bid for BSkyB with unnamed executives of News International casts the first serious doubt about the conduct of the prime minister and the government over the proposed £8bn takeover that would have led to the creation of most powerful media group in Britain.”

Cameron hired former NotW editor Andy Coulson as his personal communications chief — before Coulson’s high-profile resignation earlier this year — and yesterday Cameron “edged towards the much-demanded apology” over the hiring of Coulson, reports The Guardian.

As Cameron told parliament: “Of course I regret, and I am extremely sorry, about the furore it has caused. With 20/20 hindsight, and all that has followed, I would not have offered him the job, and I expect he would not have taken it.” To watch Cameron duck and weave the consistent examination by his opponents check out this transcript of exchanges at The Guardian.

Back here in Oz, PM Julia Gillard spoke of the impact of NotW scandal in the UK, indicating that Murdoch’s Australian arm News Limited may have to answer some “hard questions” about its own conduct.

In a fairly rambling press conference, Gillard told journalists: “Looking at all of these events in the United Kingdom, I think Australians have been disturbed by them and I think they’ve been disturbed to see the reports in the UK and the kind of things that have been happening with telephone hacking and the like and I think that does mean that Australians here look at News Limited and they’ve probably got some hard questions that they want answered.”

It’s important to note the full transcript of what Gillard said, because she was “a little less bolshie” in the later half of her comments, writes Margaret Simons on Content Makers. Gillard continued (this is only a partial transcript, head to Content Makers for the rest):

JOURNALIST: I guess I’m asking, are you casting aspersions on News Limited papers here?

PM: Well, all I’m saying is when big things happen overseas, I’m certainly not making up any conclusions, quite the reverse. All I’m saying is when there’s been a major discussion overseas, when people have seen telephones hacked in to, when people have seen individuals grieving, had 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, and obviously New Limited’s got a responsibility to answer those questions when they’re asked, and I would say if the boot was on the other foot and there was some major political scandal in the United Kingdom involving politicians, journalists from all newspaper stables, including News Limited, would be beating a path to my door to ask me all about it and what the implications are for Australia.

So, I’m really saying no more than what journalists themselves would view as proper conduct if there was a political scandal overseas.

News Limited CEO John Hartigan quickly responded to the comments against News Limited — although his press release only notes Gillard’s “I do believe that Australians watching all of that happening overseas with News Corp are looking at News Ltd here and are wanting to see News Ltd answer some hard questions” line — declaring Gillard’s claims “unjustified and regrettable”.

“There is absolutely no connection between events in the UK and our business in Australia. There is no evidence that similar behaviour has occurred at News in Australia,” said Hartigan in a statement.

“We have answered every question put to us on this issue openly. If the Prime Minister has more questions we would be happy to respond.

“No one is more appalled or is more concerned about what has happened in the UK than we are. It is an affront to everyone at News in Australia and a slur on the professionalism of our people, especially our journalists,” said Hartigan.

The latest bickering between the government and News comes as the government launches a discussion paper examining privacy laws and the possibility of Australians suing those who invade their privacy.

Federal privacy minister Brendan O’Connor said the government was ”very serious about having this discussion” in light of the UK hacking scandal. But as Michelle Grattan, political editor for The Age, pointed out on Radio National’s AM this morning, this plan to examine privacy laws has been in the works for a long time and it’s just convenient timing for the government to pursue the issue now.

Just last week Bob Brown called for a media inquiry in Australia to examine media ownership, methods of information gathering and media ethics.