Nobody should fear new entrants to the Irish newspaper market who have no political baggage or axe to grind, Mr Richard Findlay, chief executive of Scottish Radio Holdings (SRH), said yesterday.

Speaking at the Institute of Directors, Mr Findlay said further consolidation in the media was a fact of life across the world. SRH, which recently acquired the Kilkenny People Group for €35.6 million, is due to complete the takeover of Ireland on Sunday later today.

Consolidation would not reduce choice for the consumer but could actually increase it and the only cloud on the horizon, which was not specific to Ireland, was too much red tape and regulation by governments, he added.

Mr Findlay argued that editorial integrity should be protected and supported by a strong profit-orientated management.

Scottish Radio Holdings was interested in expanding its media business further in the Republic and the company had a profound belief in the future of the Irish economy. Local newspapers in the Republic were of the highest quality in terms of layout, technical, and writing style. SRH's acquisition of the Kilkenny People group last month makes it the second-largest regional newspaper group in the State.

It already owns the Leitrim Observer and holds a 22 per cent stake in radio station Today FM. It will formally complete a deal to take over Ireland on Sunday today following regulatory approval.

Mr Findlay refused to comment on whether the group was involved in discussions with the Midland Tribune. He said such discussions were best left confidential.

Asked if the company would consider increasing its stake in Today FM, Mr Findlay, said: "There is no reason why we couldn't in legal terms but we are quite happy with what we have."