THE Government has decided to refer some of the key issues in the report of the Commission on the Newspaper Industry to a committee of programme managers for further study.

The Minister for Enterprise and Employment, Mr Bruton, is expected to report back to Cabinet in September on the key issues, including its recommendations on libel and on VAT.

The Government is believed to have given the go ahead for the formal publication of the report, the details of which have already been published in the national newspapers.

Mr Bruton is expected to indicate support for many of the proposals, but to refer a number of them for further study to programme managers.

Among the issues which the programme managers will examine are the recommendations on libel, which included significant changes in the libel laws.

They will also examine the recommendation that VAT on newspapers be removed. Government sources have indicated that to do so would breach EU laws. However, the VAT level could be reduced as low as 5 per cent without breaking EU rules.

The other recommendations in the commission's report include the creation of a working group to report on the problems of training, the establishment of a special unit within the Labour Relations Commission to deal with the industry and the outlawing of below cost newspaper selling.

Mr Bruton is expected to indicate support for some of these proposals when the report is formally published, probably next week.

A majority of the commission also recommended the amendment of existing merger controls so as to widen the powers to regulate the acquisition of shares and the acquisition of control over newspapers by other means.

The committee of programme managers, which will examine the crunch issues, is likely to include the representatives of the three party leaders and of the Minister for Enterprise and Employment.