Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

In early September 2016, Independent News & Media, INM, announced that it had agreed a deal to purchase the portfolio of regional newspapers owned by the Celtic Media Group. The titles that were to be included in the deal were The Anglo-Celt, The Meath Chronicle, Forum, the Westmeath Examiner, the Westmeath Independent, The Connaught Telegraph, and the Offaly Independent. On 3 September 2016, after the public announcement by INM, the National Union of Journalists, NUJ, issued a statement calling on me, as Minister for communications, to investigate the implications of the proposed acquisition. According to Mr. Séamus Dooley of the NUJ:

In approving the acquisition the minister is required to consider the issues of media diversity and plurality. This is the first time these powers can be used by the minister, in addition to the powers of the Competition and Consumer Protection Commission.

In a further statement on 5 September 2016, Mr. Dooley called on me as Minister "to set up a panel of experts to investigate the acquisition and to ask the Broadcasting Authority of Ireland to carry out a fully statutory inquiry, as provided for in guidelines". He argued that in light of "INM's dominant position in the national newspaper sector and the dominant role of the chief shareholder in the independent broadcasting sector there are compelling reasons for an investigation into the full implications of this proposed acquisition".

On 26 October, Deputy Brian Stanley said in this House that "the media landscape [was] on the verge of losing more diversity owing to the possible purchase of Celtic Media Group by Independent News & Media which is controlled or owned by Mr. Denis O'Brien". He also raised media concentration concerns on foot of a European Parliament report, compiled by Lynn Boylan, MEP, which found that Ireland had one of the most concentrated media markets in any democracy. On 10 November, the NUJ said in a statement that I as Minister had power "to examine every aspect of the proposed acquisition" and urged me "to display political leadership and courage". It went on to say: "failure to do so would represent an act of political cowardice, something we have experienced many times when it comes to challenging media interests".

The Competition and Consumer Protection Act 2014, which sets out the powers of the Minister with regard to media mergers, states: "the undesirability of allowing any one undertaking to hold significant interests". The guidelines define "significant interests" as interests in excess of 20% within a sector, or across different sectors of the media business in the State.

Independent News and Media, INM, publishes the Irish Independent, the Sunday Independent, the Herald, The Sunday Worldand the Belfast Telegraph, and it has a 50% stake in the Irish Daily Star. Communicorp Group Limited, which is owned by the same shareholder, controls Newstalk, Today FM, 98FM, Spin 1038 and Spin South West, and this was approximately 20% of the entire market. The Minister, in making his initial assessment, must have regard to the relevant criteria provided for in the Act and the guidelines on media mergers, among other matters.

The Independent News and Media decision to purchase a further seven regional titles with a significant online presence was always likely to lead to a phase 2 assessment. I would have failed in my responsibilities under the law if I did not do so and I would have been criticised in the House for not doing it. I have not seen the contents of the affidavit referred to in The Irish Times, nor am I aware of its specific contents other than the manner in which it is dealt with in the article. As this is a matter that is before the courts I cannot comment on the affidavit itself. However, I confirm that I received a phone call from Mr. Eoghan Ó Neachtain, former press secretary to a number of Governments, on 10 or 11 November 2016 informing me that the Competition and Consumer Protection Commission had approved the Independent News and Media acquisition of the Celtic Media Group. This was in advance of the Competition and Consumer Protection Commission communicating the decision to me.

It was common knowledge that this was a very significant acquisition with a significant geographical impact. I expressed a purely personal view that the likely course of action would be a referral to a phase 2 assessment in accordance with the guidelines in light of the diversity and media plurality assessments required and in light of the scale of the proposed acquisition, its geographical concentration and the extent of ownership of regional media by Independent News and Media at that point. According to advice from the Office of the Attorney General, in the context of there being a decision by the Competition and Consumer Protection Commission, the legislation about such referrals to the Broadcasting Authority of Ireland is clear that referral is an option to me as Minister when there is a planned media merger. If this is so, there is nothing wrong or inappropriate with me as Minister saying to anyone or to the public that if the plan for the merger continued I would take advice on sending it to the Broadcasting Authority of Ireland, BAI. This is not inside information but simply a reflection of the legislation. I had no inside information to give.

It may have been preferable if the conversation had not taken place but I was by no means expressing a definitive view, nor could I do so at that time. Nor did I state that the view expressed was a confidential one as the article seems to assert. I clearly stated that I had made all previous decisions solely based on the advice provided to me by my officials and I reiterated that I would adhere to that approach in this case as well.

There seems to be a misunderstanding about the nature of the media merger process. It is not a secret process. Guidelines on the process are publicly available on my Department's website. The same guidelines were subject to a detailed public consultation prior to their finalisation. Prior to the phase one decision I answered six parliamentary questions in the Dáil on the acquisition and was, for example, exhorted by the National Union of Journalists and certain political parties to use all powers available to me to examine all aspects of the acquisition. The mergers process went through the full rigour required by the Act and the guidelines after it was received by me on 21 November 2016 and a recommendation was made by my officials on 4 January 2017 that the acquisition be referred to a phase 2 examination. This was approved by me on 10 January 2017. The vast majority of the documentation has been on my Department's website since last July but I would be very happy for any Member of Dáil Éireann to come to my Department and view the full file on this merger as I have acted to the letter of the law throughout this process.

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