Australia's oldest newspaper publisher, John Fairfax, has reported a 17 per cent fall in annual profits, blaming a slow economy and higher costs from a new printing plant for the slide.

Fairfax, about 22 per cent owned by New Zealand's Brierley Investments, said net profit was Aus$85 million (£42 million) in the year to June 30th, 1997, down from Aus$102.2 million a year ago.

Independent Newspapers lost a bitter battle for Fairfax five years ago when the newspaper group was sold to a group headed by Canadian newspaper magnate, Mr Conrad Black.