In his announcement yesterday, Local Government Minister Simeon Brown said local councils would no longer be required to publish their notices in local newspapers. He said this would drive efficiency and cost savings.

“What the Minister fails to realise is that risks local government money going to big tech companies like Google and Meta,” said the Director of Public Affairs for the News Publishers’ Association, Andrew Holden.

“The advertising market has been manipulated by these companies to ensure they receive the lion’s share of advertising revenue. It is not an even playing field, and what seems on the surface to be a simple decision will have a profound impact on local communities.

“We encourage local councils to continue using New Zealand media to reach local people with important messages relevant to their communities. New Zealand media companies effectively reach large audiences, but unlike global platforms they also employ local people and invest in local communities.

“Less revenue for local newsrooms means there will be fewer journalists working in those communities, making sure people are kept informed and organisations like the local council are placed under proper scrutiny.

“This is just another blow for New Zealand journalism, after Media and Communications Minister Paul Goldsmith announced last week that the Fair Digital News Bargaining Bill was now on hold.

“Sadly, it seems this Government doesn’t believe New Zealand journalism is important to New Zealanders.”

In Canada, the province of Ontario recently announced that it would direct 25 per cent of its government and crown corporation advertising spending to local publishers. Ontario is not the first jurisdiction to adopt an “earmark” approach when it comes to government advertising. New York’s Local Law 83 mandates spending up to 50 per cent of advertising on ethnic and community media.

The Australian Federal Government yesterday (Monday) also announced it was investing A$180.5 million to deliver on its commitment to support local news and community broadcasting. The funding includes A$153.5 million over four years for a News Media Assistance Program because ‘the Government recognises local media and community broadcasting as critical to the health of our democracy, social cohesion and informing communities’.
“This has been an incredibly tough year for media in New Zealand,” Mr Holden said. “We have seen the loss of hundreds of journalists’ jobs right across the spectrum, from television to online and newspapers and magazines, affecting both large and small companies.

“Government leaders in countries like Australia and Canada realise that journalism needs urgent support at the moment because of its value to their communities. In New Zealand, our media companies instead are facing 2025 wondering when similar support from our Government will come.”

News links:

https://npa.co.nz/news/sustaining-journalism-in-new-zealand/
https://ministers.pmc.gov.au/mccarthy/2024