Former News of the World managing editor Stuart Kuttner knew a colleague had information taken from the voicemail of missing schoolgirl Milly Dowler – but denied asking reporters to target mobiles, the phone hacking trial has heard.

Kuttner was giving evidence despite suffering ill-health.

Kuttner was giving evidence despite suffering ill-health.

He described accusations that he conspired with others to hack phones – allegations which ultimately brought an end to the Sunday tabloid – as “completely false” and “utterly baseless”.

The veteran former journalist also said the concept of using private detectives and research agencies was “far removed” from his idea of newspaper reporting, and wanted his staff to use traditional means of generating stories instead, the Old Bailey heard.

Kuttner said he was aware of only one example of a NotW journalist being in possession of a hacked voicemail message – that of 13-year-old Milly, who was abducted and killed by Levi Bellfield on her way home from school in March 2002.

He told the court he contacted Surrey Police on April 13, 2002, the day before the Sunday tabloid was due to hit shelves as the search for missing Milly continued, saying the paper may have “significant information” relevant to the inquiry.

The information came from a voicemail on Milly’s phone appearing to offer “Mandy” a job out of the county – the message turned out to be left on the schoolgirl’s phone erroneously by a recruitment agency who had called the wrong number.

Kuttner said: “The NotW appeared to have, by some method, information that might lead to a missing schoolgirl.

“It was my view… The first and right thing to do was to speak to police.”

He told the court the information had been accessed through her voicemail, but denied he “agreed in advance that somebody at the NotW” should hack the phone.

Defence counsel Jonathan Caplan QC asked: “Did you know (convicted phone hacker Glenn) Mulcaire had accessed her voicemail?”

Kuttner replied: “No, I did not.”

He said he had no idea when disclosing to police that day about the method of obtaining the information may have constituted a crime.

He also denied being personally involved in phone hacking and said he did not know if it was a means of extracting information used at the tabloid.

Kuttner added: “My role may have changed from journalist to managing editor, but it is not a form of newspaper journalism I recognise.”

Kuttner told the phone hacking trial he wanted his reporters to “knock on doors” and find their own leads, rather than pay private detectives and investigation agencies.

The 74-year-old said his views were considered “out of date” by some, but said he believed journalists should be out speaking to people instead of relying on outside help.

The now-retired tabloid boss also denied authorising weekly payments to Mulcaire in an effort to “cook the books” and conceal the true cost of annual reimbursement for Mulcaire’s work.

Kuttner said: “I wanted [journalists] to go and knock on doors, to go to corner shops, to get out and about and do what was necessary.

“I was told that on some occasions my method was somewhat out-of-date because electoral registers were readily available to journalists. I don’t accept that.”

The Old Bailey heard Kuttner sent a memo to senior staff – including co-defendant, former royal editor Clive Goodman – back in 1999 asking them to cut down on detective agency spending. The payments, he said, would have included trying to find out where people live, work and if they are subject to court proceedings.

Kuttner said he believed payments to Mulcaire’s companies – Euro Research and Nine Consultancy – were for their work as legitimate research agencies, the same as those employed by newspapers across Fleet Street, he said.

Defence counsel Mr Caplan QC said prosecutors claimed that Kuttner was complicit in conspiring with others to hack phones “from the beginning”.

He said: “[Prosecutors say] that you knew that he (Mulcaire) and his companies were being paid to hack voicemails on mobiles of celebrities, princes and anyone of note so that cheap stories could be gleaned from the messages listened to.”

Mr Caplan said allegations had been made that Kuttner knew about the size of payments to Mulcaire and that they were “concealed” so as not to alert executives.

The defendant, in his second day giving evidence, replied: “They (the allegations) are, from start to finish, completely false.”

Asked to respond to allegations that Kuttner knew about payments to Mulcaire for his work hacking phones, Kuttner said: “The idea that I would conceal payments from the management… Is completely baseless.

“It is not me. I did not do that – in this case or any case.”

He added: “I’m pausing because I cannot answer too strongly.

“It is so far removed from my concept of journalism. It (the allegation) is entirely and truly false.”

Kuttner, of Woodford Green in Essex, denies conspiring with former NotW editors Rebekah Brooks and Andy Coulson and others to hack phones between 2000 and 2009.