The chairman of the Press Complaints Commission has said any "statutory regulation" of the press would be "adversarial".Lord Hunt gave evidence to the Leveson Inquiry yesterday and this morning, to outline his proposal for a reformed self-regulatory system. Yesterday, Press Board of Finance chairman Lord Black said any attempt to regulate the press under statute would be met with “constant challenges” by the industry.Robert Jay QC, inquiry counsel, said today he could not understand Hunt’s fears that a statutory framework would stifle press freedom after the chairman said he was concerned such a body would result in “censorship and licensing”.The lawyer added: “I have no grasp of your fear. I don't even see how the concern can be sensibly articulated, with respect. It's tilting at a windmill which simply doesn't exist."Hunt told the inquiry some politicians would want new legislation to restrict the media and those who had accepted the need for a statutory framework had done so reluctantly. He told Lord Justice Leveson the current PCC would start forming a new body - formed by contracts with publishers - if given the go-ahead by the inquiry.He said: “It could be up and running in a matter of months. Any statutory underpinning would take years. I confidently predict that, but what in the meantime are we to do?""We have a wonderful opportunity to get this system up and running and my fellow commissioners on the PCC have given me authority to say to this inquiry, if we receive a green light we will immediately move to set up the new body.”He later added: “This system can achieve whole-hearted commitment by the regulated community, and above all I believe it can restore trust in British journalism.”The judge – who will make his recommendations to the government later this year - reminded Hunt the final decision will be made by the home secretary and culture secretary.Yesterday, Hunt praised the industry for accepting the need for regulation, which Hunt said was for the first time ever with teeth, the ability to fine and bound under contract. He proposed powers allowing the regulator to levy fines of up to £1 million.He added: “It’s just appropriate, I think, to recognise the distance that the press has come, albeit faced by unacceptable and disgraceful behaviour by a comparatively small number of journalists than others.”In his written statement, Hunt recognised the failure of the PCC to properly address the concerns of several victims of press intrusion and noted the treatment of some high-profile cases had fallen short of what a genuine regular could do.Hunt’s proposal advocates a whistleblowing hotline for journalists to report on failing standards and internal governance, and an ombudsman for handling appeals of decisions made by the complaints arm of the body. He told the inquiry it was right third-party complaints should be handled by the regulator.He admitted the credibility of the system would be undermined if any “big fish” chose not to join up – referencing Northern & Shell owner Richard Desmond. Hunt said he had spoken to the publisher, who he has claimed are keen to sign up to a future regulator, but said the group had been critical of a proposal to restrict press cards to journalists falling under the body’s remit.