THE DEPARTURE of Gavin O’Reilly from the position of chief executive of Independent News Media is a landmark event in the history of Irish media, ending 39 years of direct control by his family of the country’s largest newspaper group. In the days since the resignation, speculation has focused on the intentions of Denis O’Brien, INM’s largest shareholder, whose struggle with the O’Reillys over control of the company has provided one of the most fascinating, bitter and enduring dramas in recent Irish corporate history.
At any time, such changes at the top of Ireland’s largest media company would be a cause for debate. The fact that the key protagonist is Mr O’Brien, whose prominent position on the Irish media landscape already includes the ownership of both national commercial radio stations, raises the most serious questions about the further concentration of media ownership in Ireland, and what it means for diversity in our civic discourse.
Whatever Mr O’Brien’s short-term plans, these events throw into sharp relief the failure of successive governments to put in place a regulatory framework which is fit for purpose in safeguarding the strong public interest in media plurality. No meaningful consideration of the commercial broadcasting landscape can overlook the dominant position of RTÉ, with its guaranteed state funding through the licence fee. But no debate on the future funding and structure of public service broadcasting can ignore the transformational impact of the internet and digital technology, which challenges many of the traditional revenue models on which media companies have been based, and which throw broadcasters, newspapers and new media into competition with each other for the first time. In considering these issues, the question of ownership and/or control is central.
The Advisory Group on Media Mergers completed its report to the previous government on this issue almost four years ago. That report made a number of sensible recommendations, including for a statutory recognition of the important role of the media in a democracy and a reduction in the role of the Competition Authority, with its narrow market focus, in favour of a more robust and sophisticated defence of the importance of diverse ownership and voices. It also suggested a statutory test to guide the relevant minister in making decisions.
Last October, the Minister for Communications, Pat Rabbitte, announced that draft legislation on the “pressing issues” raised by media mergers would be published in early 2012. The legislation would be informed by the recommendations of the advisory group, would cover all forms of media including the internet, and would have the objective of ensuring the continuing existence of an active and diverse media sector, in terms of both ownership and content.
It is unfortunate that the Minister’s timetable appears to have slipped since then, since recent events in the boardroom of INM make these proposals more pressing than ever.