CAB129-37 — Page 564

Page 564

Printed for the Cabinet. November 1949 ··

SECRET

C.P. (49) 227

8th November, 1949

CABINET

Copy No. 31

SIZE OF DAILY NEWSPAPERS AND PERIODICALS

MEMORANDUM BY THE PRESIDENT OF THE BOARD OF TRADE

The size of newspapers is at present formally governed by a Statutory Order limiting the penny dailies to eight pages. The detailed rationing of newspapers is carried out by the Newsprint Rationing Committee, a body of newspaper proprietors representative of all sections of the industry. It is they who from time to time fix the size of newspapers, with my approval, within the maximum allowed by the Statutory Order, a system which allows flexibility as the supply of newsprint permits. Since 24th April last the penny daily newspapers have been restricted to six pages with corresponding variations for other types of newspaper. I have now received a request from the Newspaper Proprietors that they should be allowed from 1st November to 31st December to increase the size to seven pages, that is alternate days at six and eight pages. Owing to doubt on the exact figures of newsprint supply and requirements, it has not been possible to bring forward this proposal to the Cabinet earlier, and any concession now made would have to operate from 14th November or thereabouts.

2. Although there will be no Canadian imports of newsprint next year, the newsprint budget up to the middle of 1950 now appears more favourable than it did some months ago. There will be a slight increase in home production in the last two months of this year in addition to the increase originally forecast during 1950, while the consumption of newsprint by periodicals following the authorised increase in their total paper consumption from 45 to 70 per cent. has been less than was originally estimated.

3. I have already informed the newsprint mills that they may accept export orders in 1950 up to 65,000 tons. This is the same figure as I authorised for 1949, though that figure has not been realised. It is probable that we could secure orders from Australia alone up to about 90,000 tons, but in deciding upon the figure of 65,000 tons I had in mind the possible objection of our own newspaper proprietors to our supplying Australian newspapers with all the newsprint they require for their much larger publications, and the views of the Canadians that we might be supplying too much to what they appear to regard as their export markets. On the other hand, if we do not supply reasonable quantities to the Australians they will be forced to buy against us in the Scandinavian market, and in addition our own balance of payments with Australia will worsen at a time when it is desirable to imit

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Pag the afsumption that the exports will be spread over the year 1950, and if there were no increase in home consumption of newsprint above current levels, the newsprint budget to the end of June 1950 would be as follows:-

Tons

Second Half 1949

Stock at 3rd July

Supply--

124,500

United Kingdom manufacture Imports

Consumption-

Newspapers (six pages)

226,500

109,000

►

335,500

267,800

Periodicals (at 70 per cent.)

33,000

Exports

15,000

315,800

Estimated stock at 31st December (+ 19,700)

144,200

First Half 1950

Stock at 31st December, 1949

Supply-

United Kingdom manufacture Imports (Canada nil)

Consumption

Newspapers (six pages)

Periodicals (at 70 per cent.) Exports

144,200

280,000

65,000

345,000

267,800

33,000

32,500

333,300

155,900

Estimated stock at 30th June (+11,700)

5. This shows that our stocks would rise during the period by approximately 32,000 tons. I am anxious on general grounds to free periodicals from control. With larger issues they could make a better showing in the export field, and the types of paper which they mainly use are plentiful. The additional newsprint required to give complete freedom to existing and new periodicals would not exceed 10,000 tons in a full year. It would be desirable, when freeing periodicals, to make some concession to the newspapers also, but (as explained in paragraph 6) it would not at present be practicable to grant an extra page as a permanent feature-hence the modified proposals which I am making.

6. The newspaper industry has at present approximately £31 million invested in stocks, and there are indications that a number of newspapers, particu- larly the smaller ones, are reaching their limits of capital outlay, with the result that the industry might have to take steps to avoid its stocks rising to the value of approximately £4 million by refusing or postponing deliveries of newsprint, which would be a serious matter for the home mills. We shall have to allow the newspapers an extra page probably for four weeks for the election, which would cost 6,000 tons. The short-term increase for which they are now asking would cost about 12,000 tons, and this consumption is well within the safety margin of our Ragles 565nof fo year, an extra page would Reage 7600 ftan97f newsprint, which could not be fitted in to the "budget."

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