Senior staff 'despaired' over warring editors

Chief among these was Mr Guthrie's inability to get on with managing director of The Herald and Weekly Times, Peter Blunden. Mr Hartigan thought the rift between editor and manager might do the company commercial harm.

There was also a "sense of despair within the senior editorial ranks", Mr Hartigan told the Supreme Court yesterday during Mr Guthrie's $2.7 million unfair dismissal claim against News Ltd.

". . . Mr Guthrie used to lock himself away in his office and he didn't communicate with senior staff," Mr Hartigan said.

There was also a decline in the number of the newspaper's exclusive news stories, which Mr Hartigan classed as a key element of the newspaper.

Mr Hartigan also said that the newspaper had, under Mr Guthrie, "lost its news-breaking ability" and was "often following the stories of its competitor, The Age".

A former "fan of Mr Guthrie both as an individual and a journalist", Mr Hartigan felt he had also neglected sports coverage and was "either unable or unwilling to support promotions", which had been essential to boosting circulation at the Herald Sun, he said.

It had been Mr Blunden the newspaper's former editor of 11 years who had nominated Mr Guthrie for the editorship, but the pair began to clash almost as soon as Mr Guthrie was appointed.

In his evidence, Mr Guthrie told the court he could not recall whether Mr Blunden told him, "You are clearly not very hungry to sell newspapers," during a dispute over a National Geographic DVD giveaway designed to boost circulation figures.

There were other clashes over coverage of Crown Princess Mary of Denmark's visit to Australia, coverage of the 2008 football finals and a children's computer game promotion in August 2008.

According to Mr Hartigan, Mr Blunden wanted Mr Guthrie to go in early 2008, but Mr Hartigan asked him to give the editor more time.

Mr Hartigan said it was Mr Blunden's view that during Mr Guthrie's editorship "there were decisions being made which were causing significant missed opportunity in the circulation of the Herald Sun, which at that time was in a particularly parlous state".

Mr Hartigan agreed with Norman O'Bryan, SC, for Mr Guthrie, that before he recruited Mr Guthrie he may have told him he wanted the Herald Sun to be more "aspirational".

"My view was its opinion and editorial pages weren't intelligent enough and there was greater opportunity to be competitive with The Age in that regard," Mr Hartigan said.

Mr Hartigan admitted telling Mr Guthrie he "thought it was unfortunate a company of the size of HWT didn't have a number of editors who could walk straight into that job [of editor]."

There was no clear succession plan at HWT at the time, and "there was every chance" he said this to Mr Guthrie.

The case continues.

EDITORS CALL

AUGUST 2008 Peter Blunden tells Bruce Guthrie he did not do enough to promote the Spore computer game promotion.

AUGUST 29, 2008 Princess Mary of Denmark attends dinner in Melbourne as international patron of Alannah and Madeline Foundation. Blunden, a foundation director, complains about story being placed on page 18. Says better placement would increase circulation. Guthrie says someone else decided on the storys placement but he was accountable.

SEPTEMBER 19, 2008 John Hartigan says Blunden told him the Friday night game between the Western Bulldogs and Geelong was given only a small pointer on page one despite an unprecedented four Victorian teams competing in the finals.

SEPTEMBER 20, 2008.

Hartigan says Blunden told him news section contained no mention of that days final involving St Kilda and Hawthorn. Guthrie says Blunden never raised concerns with him.

OCTOBER 2008 Blunden complains to Guthrie he had not promoted a National Geographic DVD promotion early enough.

Guthrie blames advertising department but Blunden says TV advertisement is already promoting it.