1-7-02

Barrett launches campaign to save local newsagents

John Barrett, Scottish Liberal Democrat MP for Edinburgh West, today launched a major campaign against the unfair trading practices and bureaucracy that threatens the future of newsagents throughout Edinburgh.

Mr Barrett has sent petition forms to newsagents throughout his constituency, calling on the Trade & Industry Secretary to tackle the problem.

In a statement, John Barrett said:

"Government red-tape has had a devastating impact on small businesses and local newsagents in Edinburgh are no exception.

"I have spoken to many in my own constituency and have been struck by the number who are so burdened by regulation, it prevents them from actually getting on with running their business. Many have said they are considering closing down.

"In addition, the dramatic increases over the last 10 years in carriage charges for the delivery of publications, have had a major impact. With only three major companies dominating the wholesale market, local newsagents have no choice but to accept the increases, with no power to alter their fixed cover prices to recoup the losses.

"Newsagents are often at the heart of communities and should be supported. This is why I have started this local campaign to try and make the Trade Secretary take notice. I hope my constituents will support the campaign by signing the petition in their local newsagent."

ENDS

Notes to Editors

* John Barrett has backed the following two Early Day Motions

EDM 408 - Competition in the Newspaper Distribution Industry (247 signatures)

That this House notes with concern the contents of the National Federation of Retail Newsagents' Report, 'Ending anti-competitive practices in the national newspaper industry'; recognises the important role that independent retail newsagents play within our communities; further recognises that high carriage charges relating to newspaper distribution present a substantial threat to the viability of these small businesses; and urges The Office of Fair Trading to investigate whether high charges on carriage are a result of geographical monopolies operating between publishers and wholesalers by examining the agreements made between them under the terms of the Competition Act 1998 and to ensure, at the very least, that transparency applies to all such arrangements by making agreements subject to a fair and open bidding round.

EDM 1045 - Carriage Charges and Small Newsagents (78 signatures)

That this House notes the very high percentage increases in carriage charges which are hitting particularly small, independent newsagents; believes that this is putting at risk the viability of local shops and the availability of home-delivery, especially in more socially excluded and remote locations; further notes that many of the largest retailers have announced their intention to refuse to pay these increases; backs the action of those small independent newsagents who similarly refuse to pay; and calls upon the competition authorities to ensure that powerful dominant wholesalers are not allowed to abuse their position by withholding supplies, especially if they are not taking comparable action against the supermarket chains.

ENDS