Dáil Éireann debate -
Thursday, 6 Nov 1997

Vol. 482 No. 5

Written Answers - Newspaper Industry.

Willie Penrose

Question:

15 Mr. Penrose asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce legislation to regulate the alleged practice of below cost selling by the major British newspaper publishers in Ireland; and if she will make a statement on the matter. [18363/97]

John Browne

Question:

22 Mr. Browne (Carlow-Kilkenny) asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce a newspaper Bill; and the areas it will cover. [18240/97]

Jim O'Keeffe

Question:

52 Mr. J. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on a ban on below-cost selling in the Irish newspaper industry; and if she will make a statement on the matter. [18252/97]

Olivia Mitchell

Question:

60 Ms O. Mitchell asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce a newspaper Bill; and the areas it will cover. [18242/97]

Billy Timmins

Question:

75 Mr. Timmins asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce a newspaper Bill; and the areas it will cover. [18241/97]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney)

I propose to take Questions Nos. 15, 22, 52, 60 and 75 together.

The Commission on the Newspaper Industry reported to my predecessor in June 1996. One of the recommendations called for the introduction of legislation to outlaw below average marginal cost selling of newspapers. The recommendation was framed along similar lines to proposals by the national newspapers of Ireland, the umbrella representative group for Irish-owned newspapers.

The commission was satisfied that there were considerable grounds for supporting the NNI's contention that some UK newspaper publishers were selling newspapers at prices less than their average marginal cost. However, the commission also recognised that the detection and proof of such selling is complicated. The complications arise in particular from the difficulty in ascertaining the true extent to which advertising revenue can, with accuracy, be described as being derived from or targeted at the Irish market.

My predecessor clearly stated that any legislative provision in this area would have to be both robust and legally safe. He indicated further that it would have to prove effective and workable as well as being in compliance with European Union law. For example, it could and should not discriminate against any newspaper based on specific "nationality" criteria.

Quite a considerable amount of legal and economic work was available to my predecessor on this matter. On assuming office, I requested that this work be brought to a speedy conclusion. Given all the advice received to date by my Department in respect of this recommendation of the Newspaper Commission, I am not convinced that the foregoing requirements can be adequately met. While I will continue to discuss the matter with the Attorney General, it may not be possible to overcome the variety of difficulties encountered. In these circumstances, I am not at this stage in a position to proceed with the recommendation in respect of below cost selling. I should add that I have asked the mergers and review group, chaired by Michael Collins, SC, to advise me on how best to implement other recommendations of the Newspaper Commission on regulation of ownership, merger control, and concentration of media ownership.