Coalition pledges $10m funding boost for news gathering program in lifeline for regional newspapers

The federal government will provide a much-needed financial boost to regional newspapers if it wins the May 21 election.

From July 1, some newsprint prices will rise by up to 80 per cent, putting immense pressure on publishers in the new financial year. Picture: Chris Ison

Targeted financial support will be distributed to regional newspapers to help cope with rising newsprint costs, which are set to worsen in the coming months.

The Coalition has announced if it wins the federal election this month it will establish a fresh $10m round of funding for the Public Interest News Gathering program that will enable regional newspaper publishers to apply for economic support.

From July 1, some newsprint prices will rise by up to 80 per cent, putting immense pressure on publishers in the new financial year.

Communications Minister Paul Fletcher said the new funding would provide a much-needed fin­ancial boost to regional publishers burdened by rising printing costs.

“Regional newspapers provide a vitally important role in bringing regional communities together and keeping them informed of local news and events,” he said.

The Australian previously reported that in the second half of 2021 newsprint prices continued to rise internationally as a result of paper mills being hit with higher energy, transport and fibre costs.

Some companies also implemented surcharges on stock, and costs continue to be pushed up by factors including rising oil charges and the ongoing war in Ukraine.

In Australia and New Zealand, the only local manufacturer of newsprint, Norwegian-owned Norske Skog, closed two paper mills in recent years – in Albury in NSW and its Tasman mill in NZ.

Communications Minister Paul Fletcher has announced a new $10 million round of funding for the Public Interest News Gathering program. Picture: John Appleyard

Its remaining paper mill operates at Boyer in Tasmania. Up to $2m will be provided by the federal government to fast-track the replacement of a coal-fired boiler at the mill.

Country Press Australia president Andrew Manuel said the federal government’s new funding announcement “will save jobs”.

“We only had a three-month notice period that newsprint was going through the roof,” he said.

“We needed a short burst of funding to make sure we don’t lose any mastheads.” CPA represents more than 190 regional publications and Mr Manuel said he had many members contacting the association recently to voice concerns about their financial viability amid fears that jobs might be lost.

Last week some regional publications owned by Australian Community Media – including Ballarat’s The Courier, Albury-Wodonga’s The Border Mail and Wagga Wagga’s The Daily Advertiser – ran simultaneous front pages with the headline: “Your Paper in Peril”.

They went on to plead for emergency government support to ensure their survival.

“The local news you’ll read in today’s newspaper is worth more than the paper it’s printed on,” the front pages read. “But the cost of the paper it’s printed on is about to skyrocket, threatening our very existence.

“ACM and industry association Country Press Australia – between them representing 330 newspapers – fear the impact will be catastrophic for regional news and journalism jobs.”

In an article in ACM newspapers, executive chairman Antony Catalano said the steep rise in newsprint costs could be “catastrophic for regional newspapers and journalism jobs”.

ACM has 140 newspapers, including The Canberra Times and Newcastle Herald. It employs more than 1300 people nationally including 600 journalists.

A parliamentary inquiry report into newspapers in March featured 12 recommendations to help the sector including implementing alternative and sustainable business practices and ways to ensure the longevity of local newspapers.

Recommendations included measures such as a federal government review of advertising spending across all departments and agencies to ensure 20 per cent of print advertising was placed in regional newspapers.

Earlier this year Mr Fletcher also established a new $10m fund to help assist regional media organisations hire cadet journalists and provide upskilling for existing journalists.

Originally published as Coalition pledges $10m funding boost for news gathering program in lifeline for regional newspapers