Dominic Mohan was questioned at the Leveson Inquiry over comments made at an awards ceremony alluding to phone-hacking.

When speaking at the 2002 Princess Margaret Awards - also known as the 'Shaftas' - the Sun editor was reported as thanking event sponser Vodafone's "lack of security" for Mirror showbiz exclusives.

Mohan said he couldn't remember his exact words but that he had said something "along those lines" to undermine the journalism of the rival publication. "I said it as a joke," he said. "It was a cheap shot at the Mirror."

Questioned by inquiry counsel Mr Jay, Mohan said that there had been rumours in the industry and allegations had been printed in several publications at the time.

The editor added: "I am proud that as editor I have only partial PCC complaint upheld against the paper." It was then pointed out by Jay that the correction relating to this complaint, about two front page stories, had been published on page six of a later issue. This is despite Mohan's evidence stating that corrections relating to a front page story should appear on page two.

Mohan admitted that the Sun had become more cautious in its approach to certain stories since last year, putting this down to the effects of the inquiry and the introduction of the Bribery Act. He referred to the paper as "vibrant and humorous" in a difficult social and economic time for its readers.

He also said that he had "seen mistakes made over the years" and had learnt from them, and urged Lord Justice Leveson to exercise caution when considering how to reform press regulation.