Newspaper Society Attacks Government Over Regional Plans

The Newspaper Society (NS) has criticised the Government’s plans to overhaul the regional and local newspaper industry and has called for a series of amendments to the Communications Bill.

The organisation has rubbished the Government’s assertion that the Communications Bill, which is due to become law later this year (see Government To Press On With Communications Bill), will help to deregulate the industry and is claiming instead that it will have a detrimental effect on the market-place.

The Newspaper Society argues that the Communications Bill, in its current form, posses a significant threat to the market shares of local and regional newspaper companies, which it claims are vital if the industry is to meet the needs of readers and advertisers.

It goes on to argue that the Bill will make it increasingly difficult for existing newspaper companies to make newspaper purchases, without facing extensive public interest tests or scrutiny from the Competition Commission.

According to the Newspaper Society, Ofcom’s advisory involvement in this process will have a “chilling effect” on acquisition strategies for all newspaper companies and will make it difficult for the regional press to compete against other markets.

It states: “[The Communications Bill] will damage the strength of local editorial content, by making it harder for the regional and local newspaper industry to compete for the advertising revenue which funds that content.”

The Society is calling for a number of amendments to the Bill. These include the removal of Ofcom’s role in relation to newspaper mergers, restricting the exceptional public interest jurisdiction to national daily and Sunday newspapers and amending share of supply clause so that it only applies to the acquisition of national daily or Sunday newspapers.

Earlier this year, Tim Bowdler, president of the Newspaper Society, claimed that the Communications Bill places an “unnecessary regulatory burden” on the regional press (see Newspaper Society ‘Wary’ Of Ofcom’s Power).

Newspaper Society: 020 7636 7014 www.newspapersoc.org.uk

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