Shane Cassells (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Cathaoirleach for selecting this matter and I thank the Minister of State for being present.

Last Friday evening with no advance warning to employees or to the National Union of Journalists, a large number of journalists across a range of well-known local newspapers were laid off. These included the well-known titles, The Midland Tribuneand The Tullamore Tribune, the Clonmel Nationalist, the Tipperary Star, the Donegal Democrat, the Leinster Express, and the Leitrim Observer, all of which are part of the stable of the Iconic Newspapers group, owned by UK businessman Malcolm Denmark.This stable also includes other famous titles such as theKilkenny People, the Dundalk Democratand the Longford Leader. These lay-offs are in addition to a reduction in working days and hours in the remainder of the newsrooms in these titles. This comes at a time when the public in all of these communities are depending on newspapers and journalists to give them a factual position on what is happening in their local areas in regard to Covid-19 and the impact on their communities. At a time when people are being asked to stay at home, the local newspaper provides them, in particular the elderly, with a connection to their community and, most important, to factual news as opposed to the unreliable dribble that can pop up on social media feeds. To put it in context, a cut of one reporter to a newsroom of a local newspaper can cause news reporting ability to drop by 25% and so the content drops accordingly and a community consequently suffers as well.

No business is being left untouched by the harshness of this pandemic, as the Minister of State, Deputy Troy, well knows in the context of his portfolio. Bar our healthcare teams, there is nobody more deserving than others in that line. I am not arguing that this morning. However, there are 50 plus local newspaper titles across this country, many of them in their third century of operation, which provide coverage of local news, courts, council meetings and sports. They are a record of our local democracy. If one takes that away, one is diluting local democracy and local accountability.

I have two asks of the Minister of State, Deputy Troy. The media landscape in this country and the world has changed massively in terms of how people access their news. I accept that. Many of these local newspapers were previously family-owned operations. In this particular case, some 26 titles are owned by one UK media mogul, Malcolm Denmark. By all accounts the holding company is profitable and so using of the cover of Covid-19 to lay off people is wrong and it needs to be called out as wrong. Business owners who seek to slash employees while remaining profitable need to be called out.

There is another backdrop to this issue. Prior to Christmas, the Joint Committee on Media, Tourism, Arts, Culture, Sport and the Gaeltacht committee held two special sessions on the future of local newspapers in this country with the National Union of Journalists and Mr. Frank Mulrennan of Local Ireland, which represents 46 local newspapers across the country. They had been excluded from the Government supports that were allocated to local radio stations, also much deserving and providing local news coverage and local content to those who listen to them, and they were seeking parity in terms of those supports to the tune of €2.5 million. I remind the House that 91% of advertising revenue, which is the backbone of the income of local newspapers, comes from local shops, businesses and planning notices, all of which have ceased since Christmas and as a result a huge part of their revenue has been taken away. My caveat in respect of that is that profitable companies and newsrooms which seek to lay off employees should not be in receipt of the supports for which I am calling this morning. I made that point to the National Union of Journalists at the committee meeting. We cannot have a situation where a business is taking Government support and at the same time laying off employees.

I ask the Minister of State to address the concerns I have raised this morning and to confirm if Iconic Newspapers is in receipt of the employment wage subsidy scheme that has been made available to many companies around this country. I know that the Minister of State has a passion for local democracy and local reporting such as is provided by the businesses about which I am speaking this morning. I am interested to hear his comments on same.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I share Senator Cassells's view on the importance of our media. It is important at any time but it is particularly important at a time of pandemic that we can rely on factual, reputable media outlets. I am familiar with many of the newspapers in this particular group, particularly the Longford Leader, which is exemplary in terms of its factual reporting, and is anxiously awaited on a weekly basis in so many households across Longford and Westmeath, as is the case in regard to some of the other provincial papers.I extend my sympathy to all the workers who are facing job losses at this time. I fully appreciate how difficult the situation is for those involved and their families in this time of uncertainty. I understand the Iconic Newspapers group has announced a number of proposals, including staff lay-offs and cuts to hours and pay. The Government hopes that these difficult measures may mean that permanent job losses can be avoided as much as possible.

It is normal for businesses to run their own affairs and to respond to challenges in their own way. Government cannot dictate how any business is to be run. Our rule is to ensure there is a framework of legislative protection for workers' rights.

On changing hours and pay, the Terms of Employment (Information) Act 1994 provides that an employer must provide the employee with a written statement of the particulars of the employee's terms of employment. The Act also provides that an employer must notify the employee of any changes in the particulars given in the statement. The Act provides a right of complaint to the Workplace Relations Commission where an employer fails to comply. While an employer may negotiate the terms and conditions of the contract, it is best practice that it should be undertaken in consultation with the affected employee and taking a long-term view of the employment relationship.

Senator Cassells referred to the Future of Media Commission, which was established by the Government in September 2020 to examine the future of media in Ireland. This includes public service broadcasters, commercial broadcasters, print and online media platforms. The commission is examining the challenges faced by public service broadcasters, commercial broadcasters, print and online media. These challenges include sustainable funding sources, changes in audience behaviour and changes in technology. The commission has undertaken a public consultation to which it received more than 750 submissions. It is putting in place number of online events to explore key themes with stakeholders and the public. The commission is due to report within nine months and its report will inform future media policy, including print media.

In the context of the Government's stated commitment to support independent media into the future, it is regrettable that a company such as Iconic Newspapers is making a restructure of this nature in advance, especially considering the range of financial supports the Government has made available to all businesses across various sectors during the pandemic to sustain them and protect the livelihoods of employees who rely on their employers.

Shane Cassells (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister of State correctly stated that there should be consultation in scenarios such as this. That is the exact point. There was no consultation, none. On Friday night, Ian McGuinness, the Irish organiser of the National Union of Journalists, stated, "At a time when we need solid, public service journalism more than ever, we have seen Iconic Newspapers announce their intention to impose another round of savage cuts." These cuts were taken without prior consultation.

I very much welcome the commitment the Government has shown to the media in establishing the Future of Media Commission. This will be extremely worthwhile and it is a very good expert group. The autumn could be too late for many of the businesses in the local newspaper industry in this country. There are 46 paid-for publications employing some 1,000 reporters that are read by 1.5 million people across the country. There has been a staggering decline of €6.3 million, or almost 22%, in revenues arising from the drop in circulation and advertising revenue. I ask the Minister of State again to clarify where we stand on the call from those newspapers to be treated the same as local radio stations. Will the Government make a decision on the €2.5 million sought from the Minister, Deputy Catherine Martin, before Christmas?

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The pandemic has taken a terrible toll on many businesses and livelihoods right across various sectors in the economy. The Government has committed an unprecedented level of financial supports to keep businesses afloat and save jobs. The Senator referenced the employment wage subsidy scheme, which was introduced on 1 September. This replaced the temporary wage subsidy scheme and it addresses one of the biggest overheads that any business faces on a weekly basis, which is the wage bill. This Government is underwriting the wage bill of so many businesses in order to protect them and the livelihoods of the employees relying on them. The Government also reduced the VAT rates from 23% to 21% and from 13.5% to 9%. The Covid restrictions support scheme, CRSS, is also available for businesses that have had to close their doors.

The Senator's query relates in particular to Iconic Newspapers and the request made before Christmas for €2.5 million to the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Deputy Catherine Martin, and I cannot answer that question. I give an undertaking that I will raise it with the Minister today and revert to the Senator.