In both cases, we would use the first sentence as a direct report, and the second sentence may be used as a clarification. A: "Rupert says that dogs make a lot of mess on the beach." B: "Does that mean that owners should clean up after their dogs?" A: "No, Rupert is saying that dogs shouldn't be allowed on the beach at all." We use this kind of construction a lot when referring to ourselves. For example, sentences like: "What I would like to say is this: kittens are cute" "I'm trying to say that I love you, but I'm too shy" "I'm not saying that I hate pizza, just when it has too much cheese on it." One main reason for the difference in meanings between 'says' and 'is saying' is that 'says' doesn't refer to a specific timepoint, while 'is saying' is specifically talking about right now. For example, even if I haven't talked to my father in a week, it is still valid to write: "My father says that eating too much pizza makes you fat" Because it is something that he has said in the past (that I believe is still true). Similarly, we might use 'says' to describe what has been written (in the past) in a book, even though the person clearly isn't saying it.