§ 3.50 p.m.
§ THE MINISTER OF STATE, DEPARTMENT OF HEALTH AND SOCIAL SECURITY (LORD ABERDARE)My Lords, with your Lordships' permission this may be a convenient time for me to reply to the Private Notice Question of the noble Lord, Lord Shepherd, on the impending closure of the Daily Sketch. I will do so in the words used by my right honourable friend the Secretary of State for Trade and Industry:
"The Associated Newspapers Group have announced that they will merge the Daily Mail and the Daily Sketch by mid-May. Although I very much regret the disappearance of a National newspaper, it was not unexpected, particularly in view of the failure of the national newspaper industry to come to grips with its well-known problems. The Department of Employment are in touch with management about arrangements to give all possible assistance to those who need help in finding other jobs."
§ LORD SHEPHERDMy Lords, we are most grateful to the noble Lord for that Answer. May I say that we on this side of the House share with the Secretary of State deep regret that yet another national newspaper is disappearing. We also must regret the consequent unemployment, particularly in an industry where one can only say that it is already overstaffed. I wonder whether, particularly with regard to the importance of newspapers within the public media, the Government should not now have urgent talks with the employers and the trade unions to see whether rationalisation of the industry can be speeded up. Can the noble Lord say whether the Government have assessed in any way the effect on loss of revenue from advertising, if the "leaks", to the effect that there is going to be a national commercial radio service are true, and what effect this will have on the other national newspapers which are already struggling?
§ LORD WADEMy Lords, may I also join in thanking the noble Lord for repeating this Statement? May I ask one short question? What had he in mind when he used the expression "well-known problems"?
§ LORD ABERDAREMy Lords, I am grateful to the noble Lord, Lord Shepherd, and the noble Lord, Lord Wade. The "well-known problems" are the problems of overstaffing which were mentioned by the noble Lord, Lord Shepherd, and which have been highlighted by at least one Royal Commission and two subsequent Reports of the National Board for Prices and Incomes. I will certainly take note of the views of the noble Lord on the rationalisation proposals. He will not expect me to comment on what is, after all, only an uninspired "leak" about commercial radio.
§ LORD SHEPHERDMy Lords, may I assume that there has been no assessment as to the consequences of such a set-up?
§ LORD ABERDAREMy Lords, it would be impossible for me to commit myself on that.
§ LORD SHINWELLMy Lords, I should like to put two questions to the noble Lord. First of all, can he indicate what will be the scale of the redundancy 32 payments to the redundant journalists, and how it compares with the redundancy payments which are common to work-people who have become redundant in general industry? Secondly, since the noble Lord refers to the desirability and intention of the Government to seek other employment alternatives for these redundant journalists, can he indicate in view of the state of the "unemployment market" at the present time, where these men are likely to be placed?
§ LORD ABERDAREMy Lords, in reply to the first question, as the noble Lord is aware there are statutory entitlements to redundancy pay. I understand from Associated Newspapers that they are in discussion with representatives of their employees on the whole question of redundancy payments, and that they are hoping to find a way of paying more than the strict minimum. On the second question, as I said in the Statement, the Department of Employment will give all assistance to these men to find alternative employment, in so far as they are able to do so.
§ LORD SHINWELLMy Lords, is the noble Lord aware that, according to a Press report in a reputable quality newspaper this morning, it was stated that the cost to Associated Newspapers, who are responsible for the absorption of the Daily Sketch, will amount to almost £4 million? That seems a vast sum of money in redundancy payments proportionately to the number of men who are to be made redundant.
§ LORD ABERDAREMy Lords, I cannot comment on that; this is a commercial matter for Associated Newspapers.
§ BARONESS WHITEMy Lords, Associated Newspapers gave as one of their reasons for their difficulties the loss of advertising revenue. This is not just a question of overmanning, important though that may be. Would the noble Lord therefore not agree that the question put by my noble friend Lord Shepherd is very much germane?
§ LORD ABERDAREMy Lords, I agree that the loss of advertising revenue has been partly responsible for the collapse of this newspaper, but I cannot go any further than that.
§ LORD SHEPHERDMy Lords, would not the noble Lord agree that if advertising revenue is to be creamed off to yet another medium, there will be less for the national newspapers, with the result that those newspapers will be in greater jeopardy than they are at present?
§ LORD ABERDAREMy Lords, that is a rather speculative question and I should not like to speculate on it; but of course the same applies to commercial television.
§ LORD HAMNETTMy Lords, would not the noble Lord agree that the death of any national newspaper at any point is a threat to social democracy? As the remaining ten national newspapers are practically dependent for their existence not on circulation but on advertising revenue, is it not time for the Government to take a look at the allocation of national advertising on the lines suggested by the second Royal Commission on the Press (this is particularly so with regard to the allocation of Government advertising), so that the remaining national newspapers may not be in such a perilous state as they are at the moment?
§ LORD ABERDAREMy Lords, I am grateful to the noble Lord for his suggestions. I will certainly see that they are drawn to my right honourable friend's attention.
THE DUKE OF ATHOLLMy Lords, would not my noble friend agree that the introduction of commercial radio is likely to give employment to quite a number of journalists?
§ LORD ABERDAREMy Lords, we are now getting rather far away from the original Statement.