Finance commission rejects cheaper newspaper transport taxes
From 2008, the federal government should no longer help to reduce newspaper transportation taxes. The National Council's Finance Committee FK is against an initiative by the State Policy Committee SPK, which would like to continue this indirect press subsidy.
From 2008, the federal government should no longer help to reduce newspaper transportation taxes. The National Council's Finance Committee FK is against an initiative by the State Policy Committee SPK, which would like to continue this indirect press subsidy. The decision was made by a narrow margin of 12 votes to 11 with one abstention, as reported by SDA. The opinion of the FK corresponds to the position of the Federal Council. The latter wants to discontinue the federal government's contribution to distribution costs next year, even though the councillors have passed a motion to the contrary.
The majority of the Finance Committee warns against a watering can from which the large publishers would benefit more than the small ones. The diversity of newspaper titles cannot be equated with a material diversity of the press. The financial situation of the Confederation also speaks against a continuation of the regime. In the opinion of the minority, the previous system - despite reservations - has proved its worth. In the short term, it is the only way to continue supporting the local and regional press. Additional discounts for subscribed daily and weekly newspapers with a small circulation could mitigate the watering can effect.
The one-third model
The so-called one-third model currently applies to indirect press subsidies, according to which the Confederation, publishers and Swiss Post jointly reduce newspaper transportation taxes. With the 2003 austerity package, Parliament reduced the annual federal contribution from CHF 100 million to CHF 80 million and limited it to the end of 2007.
According to the SPK's proposal, Swiss Post would continue to be obliged to grant preferential prices for the transportation of newspapers and magazines regardless of distance. In return, it would be compensated by the Confederation with a maximum of CHF 60 million per year. In addition, Swiss Post would receive CHF 20 million to make the transportation of small-circulation titles even cheaper.
The majority of the Finance Committee warns against a watering can from which the large publishers would benefit more than the small ones. The diversity of newspaper titles cannot be equated with a material diversity of the press. The financial situation of the Confederation also speaks against a continuation of the regime. In the opinion of the minority, the previous system - despite reservations - has proved its worth. In the short term, it is the only way to continue supporting the local and regional press. Additional discounts for subscribed daily and weekly newspapers with a small circulation could mitigate the watering can effect.
The one-third model
The so-called one-third model currently applies to indirect press subsidies, according to which the Confederation, publishers and Swiss Post jointly reduce newspaper transportation taxes. With the 2003 austerity package, Parliament reduced the annual federal contribution from CHF 100 million to CHF 80 million and limited it to the end of 2007.
According to the SPK's proposal, Swiss Post would continue to be obliged to grant preferential prices for the transportation of newspapers and magazines regardless of distance. In return, it would be compensated by the Confederation with a maximum of CHF 60 million per year. In addition, Swiss Post would receive CHF 20 million to make the transportation of small-circulation titles even cheaper.
