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The News of the World offered £25,000 to a dominatrix to smuggle a camera into a basement flat and make a secret film of the motor racing chief Max Mosley in an alleged Nazi group spanking session, the court was told.
The newspaper paid Woman E only half. Its Editor denied that this was because he was disappointed with the film and suggested that it was because of the global economic downturn.
Colin Myler told the court that he was particularly aware of the sensitivity of using hidden cameras because he had been editing another Sunday paper when it published covert shots of Diana, Princess of Wales at a gym.
James Price, QC, for Mr Mosley, asked why the woman had not been paid the full sum. Mr Myler said: “We are in a credit crunch and the newspapers are in the same situation.” Woman E was offered £12,000.
The case continues.
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