THE Farmers Journal has said it may have to pull out of the Radio Ireland consortium because of its status as a charitable trust, writes Siobhan Creaton.

The paper's editor and chief executive, Mr Matthew Dempsey, said yesterday that while it was committed to the concept of the project, it had been advised that it may be forced to withdraw.

The Journal was to take a 6 per cent shareholding in the new radio station which plans to begin broadcasting in March 1997.

Under the terms of the trust, the Farmers Journal was obliged to invest only in projects of an agricultural nature. In a statement, Mr Dempsey said while it had regarded the investment as an agricultural one, based on the station's agricultural radio programming content, it had now been advised this may not be sufficient to satisfy the requirements of the trust.

The station's chief executive and programme controller, Mr Dan Collins, said the paper's 6 per cent interest would be absorbed by its other shareholders if it was forced to withdraw.

Radio Ireland is headed by former RTE television producer and producer of Riverdance, Mr John McColgan. Its main shareholders include another producer of Riverdance, Ms Moya Doherty and Mr Robbie Wootton who owns The Factory recording studios.