VAT on newspapers should be removed immediately in order to deal with the "scandalously" high price of Irish newspapers, the Institute of Advertising Practitioners in Ireland (IAPI), has said in a submission to the Commission on the Newspaper Industry.
The submission, one of more than 40 believed to have been received, also calls for the "problem" of newspaper production costs to be tackled and points out that a number of "excellent" publications are being produced in Belfast far more cheaply.
Given the price structure of Irish newspapers, IAPI found it "remarkable" that Irish readers had remained so loyal to Irish newspapers, "but with the pressure from expansion in other media" (presumably a reference to British newspaper sales in Ireland) it says "this is not the time to be complacent."
The submission is also critical of the Competition Authority in relation to Independent Newspapers: "The Competition Authority does not seem to have understood the real problems in the marketplace.
"A large operator ought to be able to achieve important cost reductions and improve service, but this must not be at the expense of diversity, nor should it allow a company to dictate costs and advertising rates. Healthy competition should help to keep prices down, but in such a small market this may need some outside controls to ensure fair-play."
The IAPI submission said that without strong local titles advertising decisions may increasingly be taken on a pan-European basis from outside the country and funds could be transferred to non-Irish media.
The Commission on the Newspaper Industry was established last September by the Minister for Enterprise and Employment, Mr Bruton. It was expected to report by the beginning of this year, but found that the amount of work was far greater than envisaged. Weekly meetings have been scheduled until the end of May to try to finalise the work.
It is believed that the commission is unlikely to recommend the establishment of a press council. One submission, from the National Union of Journalists, favoured the setting up of such a body, but in return for a number of legal reforms, especially in the area of defamation.
Commissioned research is thought to have indicated that, despite the high sales of British newspapers in Ireland, there still exists huge confidence in Irish newspapers.