Independent move brings Press nearer the edge

INDEPENDENT Newspapers decision not to support the relaunch of the Sunday Press, once again puts a major question mark over the titles future. The decision was conveyed to those working on the project yesterday but not confirmed by Independent itself.

Sources say Irish Press plc chairman, Mr Vincent Jennings, told those working on the projected relaunch that it has now been abandoned.

Although the directors said they intended to relaunch all three titles, plans had only been advanced in relation to the Sunday Press, with a tentative launch date of this March. This was later postponed until the summer. Irish Press plc the overall group holding company and Independent Newspapers were to be the key players and investors in the £5-£6 million estimated cost in relaunching the Sunday Press title, the groups most successful newspaper.

However, the Irish Press directors said at the groups a.g.m. last month that it was hoping to attract other investors apart from Independent Newspapers.

Independent had already been wamed by Enterprise Minister, Mr Richard Bruton, that he did not want to see them invest further in the Press Group.

In fact, he had written several times, demanding details of their plans for the relaunch which Independent had categorically stated it would support both financially and otherwise.

To date the Minister has not received detailed answers to all the questions he asked, concerning the Independent's plans for the Press.

Independent chairman, Dr Tony O'Reilly, Warned last year that his group would take legal action if moves were made to force it to divest from the Press.

There had been some investment already in setting up offices, paying consultants and looking at computer systems for the relaunch. However, the time had come to go ahead with major expenditure in offices and computer systems if the launch was to proceed.

Sources say the Independent baulked at the idea of the substantial investment needed.

With the Sunday Independent making, large circulation gains since the demise of the Sunday Press the Independent may simply have decided on commercial grounds not to support the new project.

The prospect of a row with the Government if it had supported the relaunch may also have influenced the Independent's decisions.

The titles future must now be discussed by the plc and they may come on the market although the Irish Press directors have steadfastly resisted attempts to sell them to date.

In December 1994, Independent Newspapers took a 24.9 per cent stake in Irish Press Newspapers, the company which published the titles and Irish Press Publications, which owned the titles.

Following the financial crisis in the company late last year, the Minister, Mr Bruton, asked the Independent to provide details of its contribution towards an £850,000 settlement made by the Press group with Ingersoll Irish Publications. It emerged that Independent had contributed £350,000 towards the settlement.

Ingersoll was the former partner of the Press group and settlement was vital to allowing the Irishness group directors, Mr, Vincent Jennings and Dr Eamon De Valera to retain control of the titles.

The key question now is what happens to the titles. They may be put on the market and it remains to be seen whether any investors are willing to put up the money to buy them.

The titles have been off the streets for so many months now that their value to any new investor is questionable. To date Irish Press plc's attempts to secure investors apart from Independent have been, largely unsuccessful.

It is now up to Irish Press plc to decide the next move. The titles are one of Irish Press plc's major assets, although they are held in Irish Press Publications, a separate company. It is probable that shareholders will want the papers put on the open market.

However, as a 24.9 per cent share holder in Irish Press Publications (IPP), Independent will still have an influence on determining the final destiny of those A CONSULTATION paper calling for major changes in the way the electricity industry in the North is run has been welcomed by NIE and one of the leading generating companies, Premier Power.