- CRISIS IN THE SCOTTISH PRESS INDUSTRY -

The Scottish Affairs Committee at Westminster has concluded that our nation's newspapers are highly valued by both their readers and the institutions which they hold to account.

In its inquiry into the Crisis in the Scottish Press Industry (1), the results of which were published this week, the MPs also cautioned the Scottish Government not to undermine the viability of the industry through overbearing competition from public sector advertising. The Committee cited the jobs portal, developed with public funding under the encouragement of the Scottish Government by the Convention of Scottish Local Authorities (COSLA), as one such example of overbearing competition.

Not only does the portal divert recruitment advertising revenue away from local titles but, committee members conceded, there are concerns that it is failing to attract job applications from outwith the public sector.

The Committee also expressed concern at suggestions of a move to remove Public Notices from local newspapers, contributing further to the economic crisis facing publishers. It noted that household access to broadband is relatively low in Scotland and, therefore, removing public notices from newspapers might disadvantage substantial parts of the population. It called on COSLA to produce evidence to the contrary.

Simon Fairclough, director at SNPA, the organisation which represents Scotland's 130 local newspapers (2), comments: "Over recent months, we've put our case face-to-face to COSLA, the First Minister, the Minister for Economy Energy & Tourism and to other MSPs. We've also written to every MSP, urging them to recognise the many contributions which local papers make to community life in Scotland and the damage which government-funded initiatives like the jobs portal will inevitably inflict on the local press, which remains heavily reliant on advertising income.

"Many individual MSPs have lent support to parliamentary motions which endorse our arguments, but the Scottish Government chooses to avoid the issue by falling back on the need to cut spending. It is surely ironic that a Westminster-based committee has brought these issues to the fore, while Scotland's ministers seem content to see their indigenous newspaper sector suffer."

While pleased that the Committee appeared sympathetic to some of the difficulties facing newspapers, SNPA's President, Michael Johnston, expressed disappointment that other crucial concerns had been ignored: "In its report, the Committee failed to highlight the market distortion caused by the BBC's approach to delivering local news content. It also ignored the equally serious potential distortions proposed by the Scottish Broadcast Commission for a state-funded digital channel and Digital Britain's proposal for supporting local news on television.

"On this second point, the Scottish regional and local press would be extremely disappointed if politicians used the proposal to top-slice the BBC licence fee to provide public support for STV, allowing it to divert a significant part of the cash to fund its digital ambitions in direct competition with the newspaper industry, which has never sought a penny of public subsidy. Such a move would be extremely damaging to local newspapers, which play such an important part in Scotland's democracy."

Notes to editors:
1. Crisis in the Scottish Press Industry, House of Commons Scottish Affairs Committee, was published on Monday, 13 July 2009.
2. The Scottish Newspaper Publishers Association (SNPA) has 13 newspaper publisher members representing nearly every weekly, bi-weekly, paid-for and free local newspaper in Scotland.

- ends -

Issued by Scottish Newspaper Publishers Association
Download in Word format
For further information, please contact:
Simon Fairclough

t 0131 220 4353
m 07710 472731
e sfairclough@spef.org.uk