The Big Issues magazine is expected to close next week with the loss of nearly 100 jobs. A further 300 to 400 sellers of the magazine, who receive 80p on every copy sold, will also be severely affected. The magazine has been in financial difficulty for some time.
Yesterday the editor, Mr Niall Skelly, said the decision to close follows the withdrawal of a Government grant of £200,000. He said that the Taoiseach, Mr Ahern, had promised the money and that, as late as Monday, officials of Mr Ahern's Department had assured him that "it was only a question of crossing the Ts and dotting the Is, and we should receive the cheque shortly."
He believed that the Department of Finance had objected and he asked why the Taoiseach had "allowed himself to be overruled by his Minister for Finance."
However, a spokesman for the Taoiseach strongly rejected Mr Skelly's claims last night.
He said that Mr Ahern "had always supported the objectives of The Big Issues magazine and was sympathetic and supportive in trying to help them find a way out of their difficulties." He added that the company had debts of £600,000, of which £250,000 was owed to the Revenue Commissioners.
The Big Issues had already received over £1 million in Government funding through FAS. "Officials of the Taoiseach's Department had attempted to assist the company in restructuring and bringing in a break-even plan. The company was told a grant would be requested from the Department of Finance on the basis of that plan.
"This was on the understanding that the company had provided full information and gave a commitment that it would concentrate solely on the production and distribution of the magazine." The spokesman said that neither the Taoiseach's Department nor the Department of Finance was satisfied that these requirements had been followed.
Mr Skelly said the magazine's printers had agreed to produce the last edition, due out next Thursday. After that he would make arrangements for sellers to receive the Scottish edition of the British magazine.