Dáil Éireann debate -
Thursday, 28 Apr 1994

Vol. 442 No. 2

Ceisteanna—Questions. Oral Answers. - Newspaper Take-over.

Proinsias De Rossa

Question:

10 Proinsias De Rossa asked the Minister for Enterprise and Employment if the Government has received applications for approval of a newspaper take-over as required under the Mergers, Take-overs and Monopolies (Control) Acts; if so, if he will give details of any such take-over; his views on whether the powers available to him are adequate to prevent an unreasonable concentration of media ownership in the hands of a small number of people and the desirability of ensuring editorial diversity; and if he will make a statement on the matter.

Mr. Quinn

I have not received any such notification.

Merger control in Ireland is governed by the Mergers, Take-overs and Monopolies (Control) Acts, 1978 and 1987, as amended by the Competition Act, 1991. Any proposed merger or take-over involving enterprises at least one of which is engaged in the printing or publication of a newspaper must be notified to me under this legislation and in accordance with the Mergers, Take-overs and Monopolies (Newspapers) Order, 1979.

On receipt of a proposal I have the power under the legislation either to approve the proposal, refer the proposal to the Competition Authority for investigation, on receipt of the report of the Competition Authority, either allow the proposal to proceed, or, if I think the exigencies of the common good so warrant, may make an order prohibiting the proposal either absolutely or except on conditions.

The Competition Act, 1991 states that any abuse by one or more undertakings of a dominant position in trade for any goods or services in the State is prohibited. Any person aggrieved as a consequence of an abuse of a dominant position has a right of action in the courts including damages.

In addition, I will shortly be introducing a Bill in the Oireachtas to amend the Competition Act to provide the Competition Authority with additional powers of enforcement.

While I am satisfied that the existing legislation, taken with the proposed amendment to the Competition Act, provides for adequate regard to be had for all relevant issues including concentration of ownership and editorial diversity when proposed mergers or take-overs are being considered, I am keeping the matter generally under review.

Mr. Rabbitte

Does the Minister consider the Italian experience could conceivably be repeated here and perhaps be the only way to dislodge the Government? Is he concerned about the extent of concentration of media ownership in the hands of a small number of people? Is that in the best interest not merely of editorial diversity but of democracy? Will he indicate what his attitude would be if the Independent group sought, as part of a consortium, to take over the troubled Irish Press?

Mr. Quinn

I have at last determined the real motivation behind Deputy Rabbitte's intended departure to the European Parliament. Obviously it is to study the Italian model.

Miss Quill

And to come back and apply it.

Mr. Quinn

Perhaps in more ways than one.

Mrs. O'Rourke

Watch out for Mr. Berlusconi.

Miss Flaherty

I would be concerned about the Canadian model.

Mr. Quinn

It would appear from all the reports I have read that Mr. Berlusconi unashamedly used his control of the media to create a tail wind which led to the success of his newly created political party. I do not want to answer a hypothetical question and as I would have to make the final judgment I do not wish to give an indication in respect of a specific proposal that might come before me. Regarding the principle in the question, anyone in my position or in this House would want to ensure we have free and independent media and that no one person or group of people would have dominant control of ownership, notwithstanding undertakings given about editorial freedom and diversity. I believe owners dictate or have the power to dictate editorial policy in the newspapers or publications which they control. I would be anxious to ensure that no group or combination of peoples would be in a position to obtain effective dominant ownership of the print media which could in turn lead to exploitation that would not be healthy in a democracy.