Local press could receive subsidies to develop digital content
Jan 22 2009 by Jonathan Walker, Birmingham Post
Local newspapers could receive subsidies to help them develop new websites and digital products, a Black Country MP has revealed.
Business Minister Ian Pearson (Lad Dudley South) revealed that support for local and regional newspapers could be in a Government Green Paper, due on Monday.
He was speaking in a House of Commons debate after MPs highlighted the important role played by the local press, but warned they were concerned about the future of the industry, as papers faced falling advertising revenue.
Mr Pearson said local newspapers had “a key role”, adding: “A thriving press is important to the health of local communities and democracy.”
But he said the industry was facing major challenges because of the growth of internet access, which had provided an alternative outlet for advertisers and because of the downturn. He added: “Although readership of newspaper websites is rising, the circulation of print is suffering; year on year, it is declining by 5.2 per cent. Furthermore, the share prices of two out of four of the major regional news groups have dropped by more than 95 per cent. in the past 12 months.
“Classified advertising revenue in the regional and local press is estimated to have fallen from £1.8 billion in 2007 to £1.4 billion in 2008.”
Next week’s green paper, entitled Digital Britain and setting out the Government’s plans to promote internet and other digital businesses, may include plans to subsidise local newspapers, he said. Any support is likely to apply specifically to new services offered by newspapers, such as websites or mobile telephone services.
Solihull MP Lorely Burt, a Liberal Democrat business spokesman, suggested the BBC work with local newspaper groups to create websites while Daniel Kawczynski (Shrewsbury and Atcham) urged the Government to continue placing advertisements, in local newspapers. Conservative culture spokesman Ed Vaizey said local newspapers had been slow to adapt to the challenges of the internet. He warned: “There is an argument that local newspapers, like other industries, have been slow to catch up with the implications of the internet.
“I am grateful that I do not have to run a local newspaper, because it is an extremely difficult job, but local newspapers must completely rethink their business model.”
