IF re-elected, the Coalition Government has pledged a $10 million lifeline to help regional newspapers in the face of dramatically rising costs, driven by global pressures that are affecting print production.
If the predicted cost of newsprint prices rises by up to 80 per cent, hundreds of journalists would lose their jobs, according to industry bodies.
However, the establishment of a new $10 million round of the Public Interest News Gathering program will allow eligible regional newspaper publishers to apply for funding to support their sustainability from July 1, 2022.
The Country Press Association (CPA) teamed up with the Australian Community Media (ACM) last week to lobby the Federal Government to assist regional newspapers to mitigate the threat of rising newsprint costs.
ACM - Australia's largest publisher of regional news - ran a campaign on the plight of the industry on the front-page of every one of its newspapers across the country, with the headline, "Your Paper in Peril".
The story told readers that “the news you’ll read in today’s newspaper is worth more than the paper it’s printed on,” with a dire warning that the very existence of newspapers was under threat as newsprint costs were “about to skyrocket”.
ACM and CPA called on the Federal Government for immediate financial assistance to ensure the ongoing viability of regional newspaper publishing.
As a result of the campaign, the Coalition made the commitment of $10 million, albeit dependant on being re-elected.
The role a country newspaper plays in rural and regional communities is vital for communication, something that was particularly heightened during the recent pandemic lockdowns, with country people turning to their local newspaper for credible and up-to-date information.
However, with some local and national businesses closing during the pandemic, advertisements were also withdrawn which was a vital source of income, at a time when it was most needed.
Government advertising and public notices have also been declining in regional newspapers in favour of online outlets or larger, metropolitan newspapers, which has further exacerbated the decline in revenue.
If the cost of a newspaper increases sharply to cover the rising cost of paper, readers may make the decision not to buy their local publication.
If that happens, frequency of paging and publishing of regular publications will drop off and that would mean hundreds of journalists, printers, and other occupations in the industry, would be lost.
Profits for regional newspapers are already paper thin, and are now doing it tougher than ever before, according to a joint parliamentary committee inquiry into their viability.
In addition to this support, the Federal Government would also undertake further work on the long-term sustainability of the sector, following the election.
Up to $2 million would be provided to fast-track an investment ready analysis for the replacement of the coal-fired boiler at Norske Skog’s Boyer Mill. The analysis is part of a larger investment in partnership with the Tasmanian Government and Norske Skog to help secure the Boyer Mill’s long-term future as Australia’s only producer of publication grade paper.
Minister for Communications, Urban Infrastructure, Cities and the Arts, Paul Fletcher, said the Coalition Government had provided critical support for regional media during the COVID-19 pandemic and is standing with them again now.
“Regional newspapers provide a vitally important role in bringing regional communities together and keeping them informed of local news and events,” he said.
“I have met with major regional publishers on the issues they are facing and the support they require.
“We will move urgently to deliver this new round following the election, working closely with the sector, with payments expected to be made from 1 July when newsprint prices are due to increase.”
Incumbent Wannon MP and Liberal Party candidate, Dan Tehan, said regional newspaper publishers in Wannon, such as Casterton News, The Hamilton Spectator, and Portland Observer Newspapers play a significant role in our local community.
“They write stories that matter to our regional communities and keep us connected,” he said.
“Regional newspapers provide a voice for our local community – that is simply something you don’t get without the presence of a local paper.”
“The Liberals understand the importance of regional media and will continue to support our country newspapers through their challenges.”
“By having a strong economy, we can continue to back our regions and build a stronger future.”
The Coalition’s pledge of funding would be contingent on no newspaper closures or job losses due to increased newsprint prices.
Funding amounts would be based on the demonstrated cost impacts to eligible applicants of newsprint cost increases.
