A trade union has accused the Sir Anthony O’Reilly-led Independent News Media (INM) group of subsidising losses from its British business with profits from its Belfast operation.
The Belfast branch of the National Union of Journalists (NUJ) said in a statement yesterday that profits from the group’s Belfast Telegraph operations are being exported to “subsidise the multimillion pound loss-making London Independent title”.
The NUJ issued the statement to coincide with the Invest Northern Ireland conference. Branch chairman Bob Miller said the Belfast business is the subject of an ongoing jobs and cost-cutting programme.
“Our members have been left to battle against the odds to protect editorial standards,” he said.
“Meanwhile, O’Reilly and his fellow directors are awarded colossal pay and bonus packages each year – making a nonsense of their rhetoric on cost.”
However, an INM spokesman said the group has invested almost €60 million in its Northern Ireland operations. He pointed out the Belfast Telegraph operations, which include the flagship title, Sunday Life and the Community Telegraph series, and the London Independent are part of the group’s profitable “UK entity”.
He added that the company’s executives have repeatedly made clear that “mild” losses from the London Independent are offset within the group. He said all INM titles benefit from the London paper’s international syndication service, which they receive free. “If they charged for that tomorrow it would be very profitable,” he said.
The spokesman added the London Independent title was also instrumental in securing printing contracts for the group and facilitated its expansion into India and South Africa.
INM executive Gavin O’Reilly was recently appointed chairman of APN, the Australia/New Zealand regional newspaper group, in which the Irish company has nearly a 40 per cent stake.
He warned in yesterday’s Australian newspapers the country’s media stocks could be in for a difficult time. APN and its peers have seen share prices drop to four-year lows in recent days as investors fear advertising is dropping.
