Hi,
My Grammar book recommends not changing the subordinate verb when the main (reporting) verb is in present tense:
He says, �I never saw it �
He says that he never saw it
but when the main verb is in past tense, the rules for changing tense of the subordinate verb apply:
He said, �I never saw it �
He said that he had never seen it
Also, bear in mind that some facts remain true, even if you report them years later:
He said, �London is the capital of the UK �
He said that London is the capital of the UK
...but I stand to be corrected!
Regards