Prime Minister Julia Gillard has demanded the Murdoch-owned newspaper group News Limited answer questions about its conduct in Australia in the wake of the British phone hacking scandal.

On Tuesday night, News Corporation boss Rupert Murdoch and his son James fronted a British Parliamentary inquiry into the scandal, where celebrities, politicians and even murder victims had their telephone voicemail intercepted.

Ms Gillard told reporters people are "disturbed" by what they have seen happen in the United Kingdom.

The scandal has lead to the closure of the 168-year-old News of the World paper, the first masthead Mr Murdoch bought in Britain.

Ms Gillard says Australians want answers.

"I do believe Australians, watching all of that happening overseas with News Corp, are looking at News Limited here and wanting to see News Limited answer some hard questions," she said.

But News Limited chairman and chief executive John Hartigan has rebuked the Prime Minister's comments, saying they are "unjustified" and "regrettable".

"The Prime Minister's comments seek to draw a link between News Corporation operations in the UK and those here in Australia," he said in a statement.

"The comments were unjustified and regrettable."

Mr Hartigan said he would be happy to answer any questions the Prime Minister may have.

"There is no evidence that similar behaviour has occurred at News in Australia," he said.

"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."

Mr Hartigan has previously said he is "hugely confident" that no improper conduct has occurred in his newsrooms.

"I've worked in newspapers for 45 years, a lot of that as an editor. I know the newsrooms, I know how cultures develop, and I'm hugely confident that there is no improper or unethical behaviour in our newsrooms," he told ABC1's 7.30.

But Ms Gillard says News Limited still has questions to answer.

"When people have seen telephones hacked into, when people have seen individuals grieving... then I think that causes them to ask some questions here in our country - some questions about News Limited here and obviously News Limited's got a responsibility to answer those questions when they're asked," she said.

Opposition frontbencher Simon Birmingham says Ms Gillard has issued a general slur against News Limited newspapers in Australia.

He says the Prime Minister should not have made the comment unless she has evidence to back it up.

"I don't like every story that appears in every newspaper I read but I don't go around suggesting there needs to be new inquiries or new measures to control the media," he said.

News Limited tabloid The Daily Telegraph has come under sustained attack by the Government in the last week, with two Government ministers accusing it of political bias.

Communications Minister Stephen Conroy has said the Sydney daily is running a campaign on regime change.

"I think the Daily Telegraph is probably the worst of the examples at the moment where it is running a campaign," he said.

Senator Conroy says the paper is determined to force an early election.

"Ignore the fact we had an election nine or 10 months ago. Ignore the fact the Australian people put in place a Parliament with a minority government and is demanding that it knows best and that people should just fall into line with what the Daily Telegraph tells it," he said.

On Friday, Treasurer Wayne Swan began the attack on the newspaper, describing it as "unbalanced".

"The Daily Telegraph in Sydney is constantly opposing a price on carbon. It doesn't care how it does it," he told reporters.

"There are some outlets that have a political agenda. They've made that very clear. They say it openly. They just shouldn't pretend that they're balanced."

Greens leader Bob Brown last week called for an inquiry into the ownership and ethics of Australian media.

Senator Brown has had some celebrated run-ins with News Limited journalists and calls News' flagship paper, The Australian, the "hate media".

He wants "fit and proper" character tests for newspaper proprietors and a review of ownership regulation in the light of News' domination of the capital city newspaper market.

Ms Gillard has said she is open to an inquiry, but Opposition Leader Tony Abbott and communications spokesman Malcolm Turnbull say there is no need for one.