asked the Minister for Finance if he is aware of the difficulties that exist in relation to the operation of provincial newspapers and in particular the fact that the reduction as announced in the national plan will only mean a very small financial reduction for these newspapers; if he is aware of the substantial employment that is involved and the importance from the democratic point of view of the operation of local newspapers; if he will consider a special situation in their regard; and if he will make a statement on the matter.
Written Answers. - Provincial Newspapers.
658.
I am aware of the importance, from various points of view, of the continued operation of provincial newspapers and I appreciate the difficulties facing them and newspapers, generally. The special position of the newspaper industry has, however, been recognised in the national plan which indicates the Government's intention to bring the VAT rate on all newspaper sales here more into line with the rates of VAT applying elsewhere in the EC to the extent that this is possible. The proposed first phase of the reduction, to which I assume the Deputy is referring, will bring the rate on newspapers back to the 18 per cent level introduced in May 1982. It would not be feasible to introduce different VAT rates for daily, weekly and Sunday newspapers on the basis of their relative contributions to democracy or employment etc.