Vol. 504 No. 5
21 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment when she will receive the report of the Competition and Mergers Review Group on the newspaper industry; and if she will make a statement on the matter. [12240/99]
The Competition and Mergers Review Group published a discussion document on the newspaper sector on 3 March 1999. I asked the group to take account of and advise me on how best to implement certain recommendations of the Commission on the Newspaper Industry dealing with competition issues. The recommendations concern: the factors to be considered in regulating changes of ownership of newspapers; an amendment to merger law to enable consideration to be given to the acquisition of control over newspapers by means other than the acquisition of shares; and consideration of the issue of concentration of ownership on a media-wide as well as a single media basis.
The Competition and Mergers Review Group invited comments on its document by 30 April 1999. This issue forms but one part of the overall work of the review group. In July 1998 the group published a discussion document on mergers and work continues on its wider consideration of competition policy. When the review group has assimilated and considered all the comments of the public and interested parties it expects to submit its final report and recommendations to me later this year.
Does the Minister expect to be in office when this long process concludes? Does she recall how persistent she was on this side of the House in demanding that her predecessor take action on the central issues involved? When does she anticipate receiving the final report of the review group?
The review group chaired by Michael Collins SC was established by my predecessor in September 1996.
That is my point.
Unfortunately, because of the comprehensive nature of the work and, perhaps, the pressure of time, it has not been possible to complete that work. I wish matters were different but I expect to receive the final report later this year.
The Deputy asked about ownership and plurality of ownership of the media. These are issues about which I feel strongly, not just concerning single media issues but also the wider media and cross-media ownership. It is important to any democracy that there is not excessive control or ownership in the hands of one group or individual. That is why it is important that if we are going to change the law we do so after due consideration.
The mergers group published its initial report and invited comments. I do not know if the Deputy made any comment but the recommendations in the initial report should form part of the law. These recommendations give wider powers to the Minister, including powers to refer matters to the Competition Authority, a power which does not exist currently.
Does the Minister accept that it has taken an unconscionably long time to address this issue? Does she recall giving a reply in the House on 30 June 1998 to the effect that she expected the review group to report later that year? It is three years since the original commission was established which made certain findings regarding dominant positions or, more accurately, abuses of dominant positions in the industry. Unfortunately, it looks as if the Minister, who has strong views on this area, will be out of office before being required to introduce legislative changes.
The review group was put in place by my predecessor. When the Commission on the Newspaper Industry reported, the then Minister and Government, of which Deputy Rabbitte was a member, was free to change the law but chose not to do so. The matter was then referred to this group which published an initial draft report in the past few weeks.
The group made recommendations and invited submissions by the end of April. I presume it has received a number of submissions and I expect to receive the final report shortly. If that report is in line with the intermediate report it should be legislated for in this House and I will be in office to do so.
The central finding of the original report was that there was an unhealthy situation in the print media, at least, which derives from abuses of dominant positions. Does the Government support the Minister's position?
No Government has done more in the area of competition across a range of sectors than this one, and the Government will continue to do so. Competition changes matters faster than anything else. It is clear that we do not have sufficient competition in this sector. That is not healthy for this democracy. We have to take seriously the recommendations of the group which comprises a range of individuals who have considered the commission's report and consulted widely.
The group will make recommendations to strengthen the Minister's hand concerning matters which can be referred to the Competition Authority. For example, the Minister will not have to have formed an opinion to instigate an investigation. The requirement under existing legislation is that the Minister must have formed an opinion. It is extremely difficult to form an opinion and that is why nothing happened under previous Governments. The recommendations are worthy of consideration and should form part of the legislation.
The matter has not been considered by the Government. However, I have no reason to believe that the Government does not share my views on competition.
