Business
Conn. Considers Newspaper Bailout
By John P. Connolly, The Bulletin
A plan in Connecticut to provide government support for newspapers has generated controversy from critics who believe government funds could create a conflict of interest for the press.
Connecticut lawmaker Frank Nicastro, of Connecticut’s 79th assembly district, is spearheading an effort to save two papers run by the Yardley-based Journal Register Company. The Bristol Press, which serves Bristol, a town outside of Hartford, and The Herald, in the town of New Britain, both could close down within days as Journal Register suffers under crippling debt.
Mr. Nicastro and fellow legislators hope to save the papers and petitioned the state government to do something about it. The request has caused a flurry of objections, as critics say that government involvement in a paper will endanger the political function of a newspaper: holding politicians accountable.
The state is offering tax breaks, training funds, financing opportunities and other incentives for publishers, but not cash.
“We’re not saying ‘Come to Bristol, come to New Britain, we’ll give you a million dollars,’” Mr. Nicastro told reporters.
Newspapers have suffered through 2008, as large publishers have faced a shrinking number of subscribers and a credit-dry financial market. Tribune Co., which publishes papers around the country that include the Chicago Tribune and the Los Angeles Times, filed for bankruptcy on Dec. 11.
Journal Register owns 22 daily newspapers and 300 non-daily publications, including a cluster in the Philadelphia area. Journal Register currently has debt in the hundreds of millions, and its stock currently trades for one cent per share. It has also cut back staff in the Philadelphia area and closed several local weeklies.
John P. Connolly can be reached at jconnolly@thebulletin.us
Connecticut lawmaker Frank Nicastro, of Connecticut’s 79th assembly district, is spearheading an effort to save two papers run by the Yardley-based Journal Register Company. The Bristol Press, which serves Bristol, a town outside of Hartford, and The Herald, in the town of New Britain, both could close down within days as Journal Register suffers under crippling debt.
Mr. Nicastro and fellow legislators hope to save the papers and petitioned the state government to do something about it. The request has caused a flurry of objections, as critics say that government involvement in a paper will endanger the political function of a newspaper: holding politicians accountable.
The state is offering tax breaks, training funds, financing opportunities and other incentives for publishers, but not cash.
“We’re not saying ‘Come to Bristol, come to New Britain, we’ll give you a million dollars,’” Mr. Nicastro told reporters.
Newspapers have suffered through 2008, as large publishers have faced a shrinking number of subscribers and a credit-dry financial market. Tribune Co., which publishes papers around the country that include the Chicago Tribune and the Los Angeles Times, filed for bankruptcy on Dec. 11.
Journal Register owns 22 daily newspapers and 300 non-daily publications, including a cluster in the Philadelphia area. Journal Register currently has debt in the hundreds of millions, and its stock currently trades for one cent per share. It has also cut back staff in the Philadelphia area and closed several local weeklies.
John P. Connolly can be reached at jconnolly@thebulletin.us
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