National newspapers could close unless the government finds a way to support the industry, according to the general secretary of the National Union of Journalists, who has said many outlets are facing financial ruin as a result of coronavirus.
The NUJ is calling for an immediate windfall tax on tech companies to help support the journalism industry through the crisis, with the money provided on the condition that large publishers rethink how how the industry operates.
Michelle Stanistreet told the Guardian: “Many, many local titles and some national titles will go to the wall if nothing is done. I think we will see national newspaper titles being casualties.”
“This sector plays a unique role in our communities and underpins our democracy – it can’t be treated like any other business. What this crisis demonstrates very very clearly is the vital need for trustworthy news. We need to find a way of reimagining this industry.”
Media analysts at Enders Analysis have warned of widespread destruction of the British news industry, with the loss of thousands of journalists’ jobs, as a result of the pandemic and expected economic convulsions that will follow.
Thousands of staff at big publishers have already been furloughed, while the advertising market has collapsed.
As a result, the NUJ is calling for a 6% tax on the revenues of tech companies such as Google and Facebook, with the proceeds used to rescue and reimagine the journalism industry.
The NUJ is also calling for tax credits and interest-free loans to support journalists’ jobs and investment in hyperlocal outlets – plus a ban on public money for media firms making redundancies, cutting pay, giving executive bonuses or blocking trade union organisation.
In the medium term, the union is also asking for the government to confer “asset of community value” status on local newspapers – in the same manner as pubs – ensuring that financially stricken local newspapers are preserved for potential community ownership, rather than closed completely.
Ministers are holding weekly meetings with representatives of the journalism industry, with the government upping its spending on public information advertising to support local outlets.
Stanistreet said new funding should be provided to news organisations on the condition that they change how they operate, especially at local newspaper groups where low wages and understaffing are common.
“We don’t want those businesses to be allowed to carry on as normal with the same inadequate practices which sacrifice journalistic content and the people who make it for shareholder self-interest.”
She said she was not seeking handouts or compensation to maintain the status quo but wants funding to ensure it survives to be rebuilt in a new manner.
Stanistreet added: “I absolutely think there’s a need for a profound rethinking of the society we live in. In that mix of essential public services is journalism, information, and news that the public depend upon for something that’s trustworthy, accurate, and ethically produced.”
