 He continued to head the team under Wilson's successor, James Callaghan, and he held the office until the defeat of the Labour Party in 1979.He was an admirer and close friend of Callaghan, whose relaxed 'beer and sandwiches' approach to political interaction contrasted to the intensity of successive prime ministerial conceited wisdom that demanded heavy studying.Out of government from 1979 to 1981, Donoughue was development director of the Economist Intelligence Unit, and in 1982-83 was assistant editor of "The Times" until his dismissal by a new right-wing owner Rupert Murdoch.