As new evidence on Tuesday revealed that phone-hacking was 'widely discussed' at the News of the World, Labour leader Ed Miliband questioned Prime Minister David Cameron's judgement over hiring the former editor of the now defunct tabloid.

Cameron had hired Andy Coulson as his director of communications. Coulson resigned earlier this year and was last month arrested and bailed in the phone-hacking case. It was during his editorship of the tabloid that convicted royal correspondent Clive Goodman alleged that the illegal practice was 'widely discussed' in editorial meetings.

In a statement, Miliband said: "This evidence raises serious questions about the extent of the cover up at News International and the judgement of David Cameron. It says phone hacking was widely discussed at the News of the World".

He added: "The problem for Mr Cameron is that he was already warned by the article in the New York Times last year about the same behaviour that today's evidence claims went on at the News of the World when Andy Coulson was the editor. Yet he continued to employ Andy Coulson as his Director of Communications".

Cameron, according to Miliband, took no action and looked the other way amid allegations that he had brought someone aware of criminal activity into 10 Downing Street. "Every new bit of evidence shows how catastrophic his judgement was," he said.

Cameron has so far insisted that he wanted to give Coulson a 'second chance' by hiring him as the director of communications, first when he was leader of the Conservative party and later when he took over as the prime minister after the coalition formed the government last year.