Ken Cowley retreats on News criticism

FORMER CEO of News’s Australian arm, Ken Cowley, is seeking legal advice over a Fairfax Media article that quoted him criticising News Corp.

THE former chief executive and chairman of News Corporation’s Australian arm, Ken Cowley, is seeking legal advice over an article published by Fairfax Media that quoted him criticising News Corp, its executives and The Australian newspaper.

Mr Cowley, 80, said he was misled, misquoted and verballed by The Australian Financial Review journalist Anne Hyland, who he claims told him he was being interviewed for a small business story on iconic bush outfitter RM Williams, of which he is chairman.

Speaking to The Australian yesterday from his farm near Maitland, west of Newcastle in NSW, Mr Cowley, who was a senior executive at News from 1964 to 1997, said he and his wife, Maureen, were devastated by the article.

He denied entirely some of the remarks, such as calling The Australian newspaper “pathetic”, did not recall other comments and said some were off the record. Yesterday, he described The Australian as “the best newspaper in the country”.

In the article, Mr Cowley was quoted as saying News Corp executive chairman Rupert Murdoch had chosen the wrong child in Lachlan to elevate to non-executive co-chairman of the company. He was also quoted being apparently critical of News Corp Australia chief executive Julian Clarke, saying: “Rupert has not ... been careful enough to have picked the right person to run Australia.”

Asked whether he stood by these remarks, Mr Cowley said he had a high regard and respect for Lachlan Murdoch and the comments were “not a true reflection” of his views.

News Corp and Mr Murdoch yesterday declined to comment. But The Australian reveals today that Lachlan Murdoch last year turned down a request from Mr Cowley for News Corp to invest $30 million to $40m in his private carbon farming and cattle company, which subsequently went into administration.

Michael Stutchbury, editor-in-chief of The Australian Financial Review, last night stood by the article, saying Mr Cowley had been accurately quoted. He said the interview had been set up to discuss RM Williams but that Mr Cowley had made other “unprompted” comments.

He said Mr Cowley was aware the hour-long conversation in his Sydney office was being recorded, and he had been quoted accurately by the newspaper.

“Mr Cowley has a half a century experience working in the media,” he said.

“Anne Hyland is a very experienced and accomplished business journalist. Mr Cowley was not verballed or ambushed ... There is nothing to correct.”

Hyland said it was “disappointing” Mr Cowley now denied his statements, but she stood by her story. She said Mr Cowley had agreed to an on-the-record interview. “After initially discussing his business RM Williams, Mr Cowley — unprompted by me — offered opinions on a range of other subjects,” she said.

“As any self-respecting journalist would, I reported these.

“It’s disappointing Mr Cowley has denied his statements and it’s not for me to speculate why. Nonetheless, I stand by the story.”

Mr Cowley said he was not asked for permission for the conversation to be recorded and was shocked to discover comments on the Murdoch family and News Corporation had been attributed to him — comments that, he claims, were taken out of context or that he did not recall.

“I have great respect for Lachlan Murdoch and Julian Clarke. I’ve got a very high regard for him, Lachlan, and I’ve always enjoyed his friendship,’’ he said. “Julian, he was one of my senior executives so I’ve always had a great regard and respect for him and I don’t remember saying those negative things about Lachlan.”

He was seeking legal advice. “I was not aware the lady was interviewing me. I just thought it was a short story about RM Williams.

“She did not make it clear to me she was going to write an in-depth story about News Limited and the Murdochs ... I have been misquoted. I didn’t make any adverse comments about The Australian newspaper or News Limited. Why would I?”

Mr Cowley is quoted as describing The Australian, which he helped establish 50 years ago, as “pathetic”. He said he did not recollect the comments.

“I’m prepared to refute it,’’ he said. “I didn’t say The Australian newspaper was pathetic. I’d never say that. That’s ridiculous. I do, of course, think it is the best newspaper in the country. It has always been good but (editor-in-chief) Chris (Mitchell) is doing an excellent job with it at the moment. I don’t get the financials any more, because I’m not on the News Corp board, but it not only looks very strong editorially, but it looks strong in the advertising area as well.”

Mr Mitchell said Mr Cowley had phoned him to apologise for the article and to reassure him he loved the country’s only national broadsheet.

“From my long relationship with Ken, I very well understand his position on the newspaper editorially and on its financial performance two years ago,’’ Mr Mitchell said. “I have spoken to Ken a couple of times a year about RM Williams stories since he left the company. I know he regards The Australian as the best paper in the country.”

Mr Cowley told The Australian he had attempted to contact Mr Stutchbury to complain about the article. “I would like them to concede this shouldn’t have happened,’’ he said.

Former News Corporation chief executive and chairman John Hartigan said that if correct, Mr Cowley’s comments “seem to me to be the words of a corporate revisionist”.“It is a truly sad bookend to a long and significant contribution to the inexorable growth of the News Corp empire,’’ he said.

“I’m sure my many former colleagues share with me in offering sympathy to someone so gripped by delusion.”