Vol. 480 No. 2
34 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise and Employment her views on the need to introduce legislation to deal with competition issues in the newspaper industry; and if she will make a statement on the matter. [13992/97]
Competition is essential if we are to have diversity and plurality in the newspaper industry. How that can be achieved effectively is a matter for debate. I am considering the best approach to take in this area, having regard to the views of the Competition Authority, the Newspaper Commission and others. The enforcement powers in the Competition (Amendment) Act, 1996, could play an important role in promoting competition in this sector.
Does the Minister accept the recommendation of the newspaper commission that there should be a ban on below cost selling in the Irish newspaper industry?
I was amused when this question was tabled because, when in Opposition, I spent much time asking my predecessor about this matter and he considered it for almost two years. I have not yet had two weeks to consider it. I am aware of the difficulties involved because I read the files concerning below cost selling. It is clear that the Attorney General's office has not finalised its view in that regard. Without breaching the famous Cabinet confidentiality rule or the rules applying to Ministers, I must inform the Deputy that I am aware of the difficulties relating to this issue. However, I am anxious to ensure that competition is encouraged. A free and healthy press is an essential pillar in a democracy and we will do everything necessary and possible to bring that about.
Does the Minister believe there is a high risk of abusive dominance in the newspaper market?
When the Competition Authority encouraged my predecessor, namely Deputy Bruton, to take certain enforcement proceedings he did not do so. Therefore, he presumably believed that people were not abusing their dominant position. I have an open mind in respect of these issues. It is clear that the closure of the Irish Press Group in recent years caused most damage to the newspaper industry. I regret that different decisions were not made during the Deputy's time in my Department. However, my mind remains open. The Competition Authority has been given new powers which, in addition to other related issues, I want to examine in connection with this matter before reaching a final conclusion about how we can ensure competition and diversity in the Irish newspaper industry.
Is it correct that the Minister intends to exercise her powers in respect of competition law?
I may do so. When Ministers are given powers they should seriously consider using them. We want to ensure that there is competition but I want to examine the range of issues involved and consider the matters at stake. Despite the fact that the Deputy served as Minister in my Department for more than two years he did not take action in this difficult area. I will not be found wanting with regard to what needs to be done in connection with this matter.
I hesitate to contradict my successor but in her reply the Minister referred to the specific action I took, namely the introduction of the new competition enforcement powers, as one of the pillars of her response in this area. Perhaps she is being somewhat economical with the truth when suggesting that I did not take action in this area. The Tánaiste suggests that I, as Minister, did not accept that there was a high risk of abusive dominance. What are her views on this issue and, given her long apprenticeship in this area, does she believe there is a high risk of abusive dominance in the Irish newspaper industry?
I have noticed a change of heart on the part of the Deputy's party, and the Labour Party, since the publication of the famous front page leader newspaper story before the general election. I am no stranger to criticism in the media and I do not believe we should allow it to influence the way——
Dominance and abusive dominance do not involve editorials.
The enthusiasm for bringing about change seemed to come about following the newspaper story to which I referred.
Certain recommendations were made to Deputy Bruton in respect of enforcement matters following the closure of the Irish Press Group. The Deputy did not follow the advice given to him as Minister and he clearly believed it was not necessary to do so. I intend to pursue this issue but I do not intend to be drawn on the way in which I proposed to do so. I have been in office less than two weeks and it would be wrong of me to commit myself to a particular direction in respect of this matter.
