Dáil Éireann Debate, Thursday - 24 February 2005
3 Mr. Morgan asked the Minister for Enterprise, Trade and Employment the reason the Government has failed to ensure the enforcement of the Competition Authority’s ruling that a company (details supplied) must divest itself of its 24.9% shareholding in another company. [6433/05]
View answerIn October 1994 the then Minister for Enterprise and Employment requested the Competition Authority to undertake a study into competition in the Irish newspaper industry. On 30 March 1995, the Competition Authority reported its findings to the then Minister. One of the conclusions and recommendations of the Competition Authority was to the effect that the acquisition by Independent Newspapers plc of a 24.9% interest in Irish Press Newspapers Limited and Irish Press Publishing Limited and the provision by Independent Newspapers plc of loans totalling IR£2 million to Irish Press represented an abuse of a dominant position by Independent Newspapers plc contrary to section 5 of the Competition Act 1991 and also an anti-competitive agreement under section 4 of the Act. However, it is important from the point of view of legal precision to point out that a study of this type does not lead to a ruling of the sort mentioned in the question. The Irish Press newspapers ceased publishing in May 1995, two months after publication of the report, and no action was taken on foot of the authority's recommendation. Legal proceedings have been initiated against the Minister arising out of a statement made by my predecessor in 1996 concerning the Irish Press titles. Those proceedings remain extant and in these circumstances I consider it inappropriate to comment in more detail in regard to this matter.
I understand the Irish Press group cannot go back into business even if it desired to do so because of the ownership situation. Does the Minister agree that in no other area of Irish business is there a situation to match that of the tax exile, Tony O'Reilly, and his almost complete domination of the newspaper market? For example, Independent News and Media plc owns 67% of Irish daily newspapers and almost 87% of Irish Sunday newspapers. Is there a commitment from the Government to deal with abuses of market power in the newspaper industry? Does the Minister agree that the media monopoly operated by Independent News and Media plc involves an abuse of its dominant position and in which it can influence the political process? This was alluded to in the Moriarty tribunal.
This question refers specifically to one company.
It relates to a monopoly or a dominant position within the market.
I do not accept the broad thrust of the Deputy's argument. If anything has happened since 1995 it has been that a broad proliferation of new companies has emerged on the Irish media scene in both broadcasting and the print media and more publications are now produced.
The company has a dominant position of 67% and 87% ownership.
I can understand the Deputy may have concerns from his point of view in light of the current trends and perhaps the particular newspaper's coverage of the Deputy's party's activities.
I can take that; it is not a problem.
The Competition Authority advises on issues pertaining to competition law. In terms of the media the legislation provides for my role as Minister. Any comments or recommendations by the Competition Authority are considered as it is best placed to examine and research these matters.
What are the Minister's proposals? Will he bring forward any proposals to tackle this monopoly and the problem of media cross-ownership and dominant position given the unique influence capable of being exerted by those in a position of dominance, particularly relating to the political process? I refer to the broad political process and what came out of the Moriarty tribunal, not in respect of my party, where a particular newspaper threatened the then rainbow Government——
This does not arise out of this question and we are running out of time.
——if it did not behave itself. On the day of the election that newspaper subsequently published on its front page a request to its readers not to vote for that Government. That is what I mean by distortion of the political process.
The Deputy's concern for the rainbow Government is touching and is noted.
The Department has no plans on the matter. I remind the Deputy that we are faced with a variety of media from national and international sources. There are potential difficulties down the line in terms of regulation of the domestic media, almost to the exclusion or independent of what is happening globally. The world has changed dramatically.
I referred to newspapers.
In regard to newspapers the market is increasingly competitive and difficult in light of the growth and advance of——
New newspapers are being launched.
As Deputy Howlin reminded me, there has been a new entry to the market recently——
It is Daily Ireland, and long may it last.
——whose editorial content may be of assistance to other parties in the House from time to time.
It will not threaten the Minister's party.
We do not know that yet.
