Deputy Rabbitte has been given permission to raise on the Adjournment the question of the purchase by the Independent Group of a stake of almost 30 per cent in The Sunday Tribune newspaper, the desirability of one group achieving such a dominant position and the steps the Minister intends to take to ensure that no one group or individual will achieve a monopoly in the industry.
Adjournment Debate. - Purchase of Stake in the Sunday Tribune.
First, I thank you for permitting me to raise this important matter of public interest. The unexpected purchase by the Independent Group of newspapers of a stake of almost 30 per cent in The Sunday Tribune group of newspapers raises very serious questions about the desirability of allowing one group, or individual, acquire such a dominant position in the newspaper market.
The media in modern society is an immensely powerful and influential force. Despite the growth in the popularity of radio and television the print media remains a powerful force in moulding public opinion. Its power was demonstrated graphically once again during the recent Presidential election. It is fair to say that matters raised in the newspapers during the course of that campaign had a significant influence on the outcome of that election. I do not believe that it is in the interests of democracy that a Government should monopolise or control the press. Neither do I believe that it is in the interests of democracy that any one commercial group or individual should be able to use its wealth to control or monopolise so much of the press that gives that group or individual a disproportionate power over public opinion. Certainly, the experience in the United Kingdom where individuals like Rupert Murdoch has managed to gobble up whole sections of the media, has not been a positive one. All one has to do, for example, is to look at the headlines in today's national newspapers to see how differently the other titles covered the current internal difficulties at Abbey Street as compared with the treatment of these issues by the Irish Independent.
The Independent Group is already immensely powerful and controls the biggest selling national daily newspaper, the Irish Independent, and has a substantial share in another, The Star. It controls two of the biggest selling Sunday newspapers, the Sunday Independent and the Sunday World and in the evening market it has the Evening Herald. I understand that it controls almost one third of the provincial press and in the electronic area it is also bidding to buy into the MMDS system.
It has now acquired a stake of just under 30 per cent in an independent newspaper, the Sunday Tribune. Many media observers believe this may be a preliminary step to a full takeover bid. This acquisition will mean that the Independent Group will now control, or have a controlling interest in 75 per cent of the entire Irish Sunday newspaper market. It is now getting dangerously close to a monopoly and the Minister should carefully consider if there is any basis on which he could intervene. The independent Group is immensely powerful and makes no secret about its political views and attitudes. It is a right of centre newspaper group which is generally economically conservative, pro-business and anti-trade union in its editorial line. The group is headed by an immensely wealthy individual who has himself expressed strong political opinions and who has on occasion been rumoured to have political ambitions.
Whatever one thinks about the Sunday Tribune, and it is no secret there is little love lost between The Workers' Party and its editor, Mr. Vincent Browne, it has to be acknowledged it has generally pursued——
The Deputy appreciates that he cannot praise or criticise an individual who is not here.
I stand corrected.
He did neither, Sir. I thought he was being quite neutral.
I thought I was very balanced.
I was adverting to the tradition.
Having regard to history I was very balanced but if the Chair thinks I offended I withdraw.
Notwithstanding that it has to be acknowledged that the Sunday Tribune has generally pursued a fairly independent line in its editorial position even if this has sometimes been unpredictable and occasionally eccentric. It would be unfortunate, and not in the interests of the press or society in general, if it were to fall under the control of the entirely predictable Mr. Tony O'Reilly. It is also mildly surprising that at a time when the Independent Group is stressing the need to cut its costs and seeking 300 redundancies it should consider it appropriate to invest £800,000 in the Sunday Tribune. I acknowledge that because the Independent Group's acquisition falls below 30 per cent that the Minister's powers to intervene may be somewhat restricted. However, I would ask him to keep these developments under close scrutiny. There may also be a need to look again at our monopolies legislation to see if it needs to be updated and take account of recent developments to deal with this sort of situation where one group will now control or have controlling interest in 75 per cent of the Sunday newspaper market.
In conclusion, I should like to demonstrate the power that can be held in situations like this. In the recent political crisis it was claimed in The Irish Times of 3 November that following a telephone call — I do not want to raise the question of telephone calls again — put through to Pittsburg by the Taoiseach he was successful in causing the Irish Independent to change its attitude to that political crisis. It specifically exhorted the Minister, Deputy O'Malley, to stick by the Republic, pointed out that Ireland Incorporated was doing very well and said, “we should make every effort to see that it stays that way.” I am not implying that the Minister, Deputy O'Malley, was influenced in the slightest by the exhortations but, nonetheless if a phone call can achieve that can you imagine in a situation where the Taoiseach——
The Deputy is now in injury time.
I was about to say, a Leas-Cheann Comhairle, that it is believed that the Taoiseach and Mr. O'Reilly are not the closest of friends. Can you imagine if they made it up how they could run the country between them?
Every Deputy has his own credo.
The Independent Group are taking a stake of just less than 30 per cent of the Tribune Newspapers plc. A stake at that level does not constitute control under the terms of the Mergers, Take-Overs and Monopolies (Control) Act, 1978. The proposal, therefore, does not come within the scope of the Act. If the Independent stake were to be increased above 30 per cent it would require notification to me under the Act. In that event the options which the Act provides would be open to me. These options are either to allow the proposal to proceed or to refer it to the Fair Trade Commission for examination. After examination by the commission the Act allows the Minister for Industry and Commerce to prohibit a transaction either absolutely or subject to conditions.
In the absence of a notifiable proposal I would not prejudge the particular course that would be taken by me. What I have to say from now on is on the basis that I am not prejudging any particular course. I might mention at this stage, for the information of the House, that in the new competition Bill which I expect to be in a position to publish within, hopefully, the next couple of weeks — when I get it from the draftsman — I will be proposing to the Dáil to reduce the control percentage cut-of point from 30 per cent to 25 per cent because that is the percentage at which a special resolution can be blocked under the Companies Act. I might add that that decision was made many months ago and has nothing to do with this present proposal.
In regard to the question of dominant position, since at this stage we are not talking about a change in control of the Sunday Tribune the question of whether a dominant position is being strengthened does not arise.
In the notice the Deputy gave when raising this matter he referred to the share of the Sunday newspaper market which the Independent Group might have which he indicated would be 75 per cent. This is not the complete picture. Newspapers from the United Kingdom also compete on this market, not least on Sundays. This factor must be borne in mind. At the moment these points are somewhat academic since control of the Sunday Tribune is not changing. I share with the Deputy the view that society needs outlets for diverse views and that the public needs access to as many different kinds of opinion as possible.
The Oireachtas has given to the Minister for Industry and Commerce a role to ensure that this will be the case. It is a role of importance but it is a burden I am glad to bear. As I indicated earlier the Mergers, Take-Overs and Monopolies (Control) Act, 1978, requires that changes in control of newspapers along with other enterprises must be notified to me. This role is strengthened by an order which I made under that Act in January 1979. Under that order all changes in control of newspapers, even if they fall below the standard asset and turnover thresholds of the Act which are £5 million and £10 million respectively, must be notified to me. I then have the powers which I outlined earlier.
A change in market share can come about other than by takeover or acquisition; competition can produce increased market share, closures or other withdrawals from the market give the same effect. The 1978 Act does give the Minister for Industry and Commerce power to control monopolies. The Act provides that the Minister can order the investigation by the Fair Trade Commission of an apparent monopoly. Once he has the report the Minister then has the power to prohibit the continuance of the monopoly except in conditions he specifies or to require the division of the monopoly by a sale of assets or otherwise. At present, I see no need to utilise these extensive powers in the area of newspapers. However, if events were to occur which might require that, I would remind the House that these powers exist and that they certainly will be applied should the need arise.