A senior police officer who resigned in the wake of the phone hacking scandal denied that he had been "plied with champagne" in return for exclusive stories by News of the World journalists.
John Yates' evidence to the Leveson inquiry came on the same day as former colleagues Peter Clarke and Andy Hayman also spoke to the investigation into press standards and as the 23rd person - The Sun's defence editor Virginia Wheeler - was arrested as part of the police's inquiry into corruption and the payment of public officials.
The inquiry heard that NOTW crime reporter Lucy Panton had been told to call in "all those bottles of champagne" by her editor to get an "exclusive splash line" from Yates in October 2010, three years after her colleague Clive Goodman had been jailed for phone hacking.
But Yates said it was a "turn of phrase" - although he admitted he "may well" have drank champagne with Panton, telling Robert Jay QC: "I hadn't been plied with champagne by Lucy Panton, and I think it's an unfortunate emphasis you're putting on it."
Yates, who was giving evidence via video-link from Bahrain, claimed he had always had a "good relationship" with the media, and defended his links to News of the World journalists and executives but admitted it was clear there had not always been a "healthy relationship" between the police and the press.
The former Met Police assistant commissioner was also questioned about his "good friend", the former News of the World executive Neil Wallis.
"I have always been completely open that he's a good friend," Yates told the Inquiry. "He certainly was a good friend - I haven't seen him for nigh on a year."
Yates also give a "guarantee" that his friendship with Wallis did not influence him, saying: "My conscience is completely clear on that."
Wallis, whose PR firm had worked for the Met, was arrested and bailed in 2011 on suspicion of phone hacking.
Lord Justice Leveson told Yates he was "disturbed" by his failure to find out that the then-deputy prime minister John Prescott had been a victim of phone hacking.
In response to his evidence, Prescott tweeted: "Yates reviewed the phone hacking case in less than 6 hours. Rang me saying couldn't find evidence & was going straight to a press conference."
Yates described the incident as "deeply regrettable".
Former Met Police deputy assistant commissioner Peter Clarke said that phone hacking was not a priority for the police in 2006, when the original charges against News of the World royal reporter Clive Goodman and Glenn Mulcaire emerged, and accused News International of closing ranks.
"In terms of the investigation, it became immediately apparent that we weren't going to get any co-operation whatsoever from News International.. This was a closing of the ranks from very early on."
Defending the decision not to widen the scope of the inquiry, he said that the Yard's counter-terrorist activities were more of a priority in 2006.
"The circumstantial evidence against journalist A, B or C is a minor consideration in comparison with the consideration of what poses a threat to the lives of the British public," he said.
"Invasions of privacy are odious, obviously. They can be extraordinarily distressing and illegal but they don't kill you. Terrorists do."
His sentiments were echoed by a retired top police counter-terror officer, Andy Hayman, who told the inquiry: "I feel terrible for victims of phone hacking, it must be awful, but at the same time I'd rather be facing questions about that than more loss of life."