NEWSPAPER INDUSTRY sources have given a guarded welcome to the decision of the Minister for Enterprise and Employment, Mr Bruton, to prepare legislation that would ban below cost selling of newspapers and ensure tight control of mergers.
The director of National Newspapers of Ireland, Mr Frank Cullen, said the industry would welcome the Minister's proposals but reminded him that there were many other recommendations in the report of the Newspaper Commission that should be addressed.
Mr Bruton is preparing a memorandum for Government which will lead to specific legislation on below cost selling by British newspapers in the Republic and on the question of mergers and share purchasing among newspaper companies.
Mr Cullen said the Government should address the question of defamation and should reform outdated laws.
It was also necessary to address the tax disadvantage that the Irish newspaper industry suffered. The president of the European Newspaper Publishers' Association and chief executive of Examiner Newspapers, Mr Alan Crosbie, said it was a pity that once the Minister established the Newspaper Commission he should now "cherry pick" from among its recommendations.
He also said that both the level of VAT and libel laws should be dealt with. The Government's failure to reform the libel laws was "irresponsible".