Newspaper Supply Chain

Debate between Priti Patel and Jim Dobbin

Wednesday 19th March 2014 Westminster Hall

[Priti Patel]

The hon. Gentleman makes a really interesting point. I make it my business to visit many independent shops, particularly newsagents, and I always ask about the number of newspapers they are selling. The figures are staggering, because they are declining at such a rate. I remember, when I was a child, the bundles of our Sunday newspapers being enormous—we were dealing with hundreds and hundreds of newspapers on a weekend alone. That landscape really has changed completely.

Along with all the additional costs, independent retailers are frustrated by the appalling service that they receive from wholesalers. Of course, that has a knock-on effect on their business and the quality of service that they can offer to their customers. When their newspapers are delivered late, people stop going to those shops. I hear many reports from newsagents about late paper deliveries. Other newsagents find that the wholesaler has given them the wrong order or the wrong number of newspapers, or that the supplier has gone to the supermarket down the road, and not to their shop.

Although there is a process by which a newsagent can complain, it does not change a thing. It just adds to the stress and frustration of running a business. Newsagents feel increasingly powerless to get redress for their situation. With the latest promotion by one supermarket chain—it gives away free newspapers to customers spending more than £5—the squeeze is being felt even more. Will the Minister update us on what action the Government are taking to investigate possible abuses in the supply chain and to ensure that independent retailers are not unfairly disadvantaged?

In conclusion, independent newsagents, some of which are dependent for 75% of their business on newspaper sales, deserve to be treated with fairness—the debate is all about fairness in the supply chain. Unless changes are made to boost competition and give them a fair deal, including involvement in negotiations and decision making, more and more newsagents will struggle to compete. We will see more withdraw from the marketplace because they will not be able to survive, and our communities will be much poorer as a result. One newsagent put it clearly:

“the big point that needs to be made is that falling sales, shrinking margins and disproportionately high carriage charges will before long drive many smaller news retailers out of the market, to the detriment of consumers—notably the elderly who may not be tech-savvy and digitally aware of the alternatives to print editions.”

I hope that the Minister will give due consideration to the points I have made, and will help us to see what can be done to support the future of independent newsagents. These are small and micro-businesses, and the Government are doing great things for similarly sized companies. The issue should be reviewed by the Competition and Markets Authority, and the Government should work with newsagents to assess the reforms that are long overdue. I look forward to hearing what the Minister has to say.

[Jim Dobbin (in the Chair)]

I call the Minister to speak in her second debate this afternoon.