NEWSPAPERS (Price increase)

Mr Chiam See Tong asked the Minister for Communications and Information whether the Government was consulted before clearance was obtained by the local newspaper companies before they raised the prices of their newspapers recently.

The Minister of State for Communications and Information (Mr Wong Kan Seng) (for the Minister for Communications and Information): I am replying on behalf of my Minister, Mr Speaker, Sir.

The answer to the question is "No".

Mr Chiam See Tong: Sir, does the Government realize that the newspapers, especially the English newspapers, have a complete monopoly of the advertisements which is where their main revenue comes from, and that they are, in fact, enjoying hefty profits, before giving the clearance?

Mr Wong Kan Seng: Mr Speaker, Sir, the implication of that question is that the Government has encouraged the creation of that monopoly. This is far from the truth. The House was informed on 19th October last year and 23rd July this year that the Government neither directed nor initiated the merger of the newspaper companies. The newspaper companies decided to merge on their own, purely on business grounds. Like any company, newspaper companies are directly accountable to their readers and it is for them to persuade their readers that that is the price they should pay. Even though they may have a monopoly of the advertisements, it is up to the advertisers themselves whether to use their services or not.

Mr Jeyaretnam: Would the Minister say whether the reason for the Government's complete inaction on this matter is that the Straits Times serves it very well?

Mr Wong Kan Seng: Mr Speaker, Sir, I think the question is left for the public to decide because from what we see in the papers ---

Mr Jeyaretnam: Answer the question.

Mr Wong Kan Seng: From what we see in the papers, the papers also report on the Member for Anson and the Member for Potong Pasir. So it is not just reporting news regarding the Government.

Mr Jeyaretnam: Please answer the question.

Dr Wang Kai Yuen (Bukit Timah): Question No. 14, Sir.