Vol. 460 No. 5
4 Mrs. O'Rourke asked the Minister for Enterprise and Employment if his attention has been drawn to any plans for the relaunch of the Sunday Press; and if he accepts the views of the IBEC Competition Council in relation to Independent Newspapers involvement in the Irish Press Group. [1600/96]
15 Mr. E. Byrne asked the Minister for Enterprise and Employment his views on the recent IBEC study of the newspaper industry. [1583/96]
16 Mr. O'Malley asked the Minister for Enterprise and Employment the current position regarding the report of the Competition Authority on the newspaper industry; the action, if any, he proposes to take in relation to this report; and if he will make a statement on the matter. [1573/96]
17 Mr. B. O'Keeffe asked the Minister for Enterprise and Employment if he is concerned at the lack of progress in the relaunch of the Irish Press; and his views on the investment of the Independent Group in that particular title. [17820/95]
I propose to take Questions Nos. 4, 15, 16 and 17 together.
A relaunch of Irish Press titles is a matter for the promoters of such a venture and I have no direct role in their actions. However, I am anxious to see a revised Irish Press or other new titles on the market in order to assist in achieving diversity and plurality in the newspaper industry. My main legislative responsibility is, of course, to ensure that competition law is complied with.
I have not seen any plans for a relaunch of the Sunday Press. Any such relaunch must comply with competition law. To make a judgment, it would be necessary to see what is proposed. In this connection, I have not received a comprehensive or satisfactory reply from Independent Newspapers in relation to its future plan vis-á-vis the Press. I have made it very clear to the Press and Independent that competition legislation will be upheld by the State.
I do not accept the views of the IBEC Competition Council. It did not address or rebut the conclusion of the Authority in regard to section 4, anti-competitive agreements. The Authority considered that the acquisition by Independent Newspapers plc of a 24.9 per cent shareholding in Irish Press and the provision by Independent of loans totalling £2 million to the Irish Press represented an anti-competitive agreement contrary to section 4 of the Competition Act.
In addition, the views of the IBEC Council seem deficient in a number of areas including: much of what it says concerns its general policy concerns and not the issue of dominance by Independent in Ireland as concluded by the Authority; it questions whether the media should be subject, like all other sectors, to our competition law, while elsewhere in its document it says it fully supports the application of competition rules to all sectors of Irish business and that this is essential for Ireland's long-term competitive position. There is an inherent contradiction in this; our Competition Act, 1991, is based, by analogy, on the EU Treaty and the principles that underpin it are EU based. The Authority has relied heavily on EU — Commission and European Court of Justice — decisions and principles in its work.
I am seriously concerned to find prevailing in the council's document a sentiment that contends that if there is a lack of competition, market forces will solve the problem in time. This takes no account of the burden on consumers and the economy generally of the lack of competition, whether it be prices or lack of choice. I am further aware that grave misgivings were expressed by Deputies on all sides of the house in the debate on the Competition (Amendment) Bill concerning alleged abusive conduct by dominant firms in oppressing and abusing their positions in the market, particularly in regard to smaller more vulnerable firms. The council notes that other newspaper interests disagree with its analysis.
I am on record as accepting the findings of the Competition Authority which concluded that the agreement involving the acquisition by Independent Newspapers of a 24.9 per cent shareholding in Irish Press and its provision of loans to Irish Press is anti-competitive and an abuse of a dominant position. A continuation of these or similar arrangements into the future would be unlawful. The State will take the necessary action to ensure compliance with the Competition Act.
My question was useful in drawing a response from the Minister as to his opinion of the Competition Authority's report on Independent Newspapers. As he was not satisfied with the responses he received from Independent Newspapers, will he indicate how many times he wrote to it, the number of replies he received and in what way they were not fully comprehensive?
I take it the Deputy is referring to Independent Newspapers plans to relaunch the Irish Press. I wrote to it twice and received two replies. They were deficient in that it is not clear what its involvement might be in a relaunch of the Irish Press. I cannot interpret precisely what it intends from its replies. It would be necessary to establish what it proposes to form a judgment on whether its proposals would comply with competition law.
Given that the Minister considers the written responses from Independent Newspapers deficient, will he consider seeking a meeting with directors and others to flesh out its responses?
I am available to meet them. However, I pointed out to them that they have an obligation to respect competition law and it is my duty to ensure that law is enforced. It is not for me to work out what possible relaunch of the Irish Press may emerge, that is an issue for those involved. My task is to ensure that competition law is complied with. I have made it clear to all parties concerned that the requirements of competition law must be respected in any relaunch proposal. It is up to them to work on whatever relaunch proposal they consider appropriate, but they must do so against that background.
In light of the standoff position now appertaining with Independent Newspapers proceeding with its plans and the Minister having adopted a precautionary role of watching and waiting, would it not be better to have a more open debate between the Department and the newspaper at which the Minister could request details of its plans? Otherwise people will raise further matters after the plans are implemented.
We have had a number of meetings. Independent Newspapers understand my position. I am open to meeting its representatives, but it is up to it, particularly the shareholders of the Irish Press, to decide on the type of relaunch it might undertake. It is not my task to get involved in any relaunch of that nature, but to ensure that competition law is complied with.
Will the Minister comment on the delay in sanctioning payments owed to some former Irish Press employees for work done?
I regret I am not briefed on that matter but I will arrange to send the Deputy a reply on it.
That disposes of Priority Questions and we will now proceed to other questions.
