Dáil Éireann debate -
Wednesday, 29 Jun 1994

Vol. 444 No. 6

Written Answers. - Newspaper Industry.

Jim O'Keeffe

Question:

31 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment his views on whether Irish newspapers are disadvantaged compared to imported newspapers from the United Kingdom; the proposals, if any, he has in this regard in the context of safeguarding the employment involved; and if he will make a statement on the matter.

Jim O'Keeffe

Question:

103 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment whether his attention has been drawn to concerns expressed by Irish national newspapers about the future of the newspaper industry in Ireland; his policy on this issue; and if he will make a statement on the matter.

Minister for Enterprise and Employment (Mr. Quinn)

I propose to take Questions Nos. 31 and 103 together.

I am aware of the concerns of Irish national newspapers, particularly their concerns about competition from newspapers published abroad.

In relation to VAT, which is primarily a matter for the Minister for Finance, in Ireland all newspapers are subject to the same rate, regardless of where they are published. The rate of VAT on newspapers is the reduced rate of 12.5 per cent.

Newspapers became subject to that rate in the 1993 budget as part of a general realignment of the VAT rate structure whereby a single reduced rate was introduced.

The 1993 Finance Act provided an important concession to the newspaper sector, in the form of an extension of the 10 per cent manufacturing tax rate to newspaper advertising revenue, which should be of major benefit to the industry. RTE and the independent radio stations are liable for the 40 per cent tax rate on revenue from advertising sales.

The Competition Act, 1991 prohibits anti-competitive arrangements which prevent, restrict or distort competition and the abuse of a dominant position. An abuse of a dominant position could take the guise of predatory pricing which was designed to eliminate competition. I am not aware, however, that any British newspaper has a dominant position in the Irish market.

On 23 June last I met representatives of the Irish newspaper industry and we had a discussion on the problems in relation to the industry. I am examining whether there are ways in which the industry's problems can be addressed.