Below-cost selling

THE Tanaiste and Minister for Enterprise, Trade and Employment said she was not in a position to introduce a ban on belowcost…

THE Tanaiste and Minister for Enterprise, Trade and Employment said she was not in a position to introduce a ban on belowcost selling in the newspaper industry.

Ms Harney said one of the recommendations of the Commission on the Newspaper Industry was for legislation to outlaw below average marginal cost selling of newspapers. However, it recognised that detection and proof was complicated.

"My predecessor clearly stated that any legislative provision in this area would have to be robust and legally safe. He indicated further that it would have to prove effective and workable as well as being in compliance with European Union law. For example, it could and should not discriminate against any newspaper based on specific nationality criteria."

She told Mrs Nora Owen, the deputy leader of Fine Gael, that it might not be possible to to overcome the variety of difficulties.

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She had asked the Mergers and Review Group to advise her on how best to implement the other recommendations of the Newspaper Commission on regulation of ownership, merger control, and concentration of media ownership.