Friday, September 6, 1991 - North Shore News - 3 Federal competition hearing opens a Sees Southam’s purchase of local community papers challenged NORTH VANCOUVER Teachers’ Association president Linda Watson told her membership esday in fromtce pad nai darts Stabilization commissioner Ed Lien’s Lonsdale Quay office a e union will not go back to the bargaining table to renegotiate a new coliective agreement. ACOUISITIO ; Lien rejected the two-year deal between the H th i Q N OF the North Shore News, the Courier | ¥ union and the North Vancouver District 44 | ana ‘the Real Estate Weekly by the Southam Newspaper Group was made last year to prevent erosion of advertising revenue at Pacific Press (publisher of the Sun and Pro- School Board, calling it excessive. vince), to block the possible start-up of a new Lower socred Baker tells rally she is opposed to Bill 82 NDP candidate Schreck says she should resign from race THE NEW Democratic Party candidate in North Vancouver-Lonsdale has called for the riding’s Social Credit candidate to drop out of the election race because she opposes her party’s controversial Bill 82 legislation. But Socred Marilya Baker said she has always been op- posed to Bill 82 and has made her position clear on several occasions to Premier Rita Johnston and the province’s education and finance ministers. Baker, NDP candidate David Schreck and West Van- couver-Capilano Liberal can- didate Jeremy Dalton each gave their views on Bill 82 Tuesday at a rally called by ihe North Vancouver Teachers’ Association (NVTA) in front of compensation stabilization commissioner Ed Lien’s Lons- dale Quay office. The provincial government has given Lien the power to roll back any public-sector col- lective agreements he considers excessive, In Jue, Lien gave a failing grade to the two-year collective agreement reached in February between the NVTA and the North Vancouver District 44 School Board (NVSB). The settlement gives North Vancouver teachers a 7% wage increase in zach year of the contract’s two-year term. Schreck said if Baker oppcs- ed Bill 82, she should step out of the election race and work with him “to defeat the gov- ernment.” “*I know she (Baker) has taken a major step in diverting herself from her party and for that reason I have called on her @ Automotives ® Classified Ads By Surj Rattan News Reporter to resign,’’ said Schreck. ‘*Her candidacy is a threat to the teachers, § don’t know what her reasons are for saying she is opposed to Bill 82.”’ But Baker said her opposi- tion to Bill 82 is the same posi- tion taken by her Social Credit constituency executive. Baker also dismissed Schreckh’s cai! for her to drop out of the election race. “I’m astounded,’’ Baker said. ‘‘This is the second time the NDP candidate has ad- monished me to toe the party line or resign. If that’s a reflec- tion of how the NDP operates, it’s a sad state of affairs,’’ said Baker. “I have said before and will say again, Pili 82 is a bad law. It is unfair legislation that has a disruptive and negative im- pact on the education system in North Vancouver and throughout the province,’’ Baker said. She added that Bill 82 creates ‘have and have not’’ school districts. Baker said that while the North Vancouver school district ‘thas one of the top education programs and some of the best teachers in the province, ’’ it is the most highly taxed school district in B.C. “Confrontation and head bashing between teachers and Index @ Home & Garden 8 Paul St. Pierre Trevor Lautens Second Class Registration Number 3885 64 Bill 82 is a bad law. It is unfair legislation that has a disruptive and negative impact on the education system. ¥F ~ NV-Lonsdale Socred candidate Marilyn Baker the provincial government must stop for the sake of our children,’’ said Baker. ‘My job is to represent the views and best interests of residents in North Vancouver-Lonsdale. I believe my stance on Bill 82 does just that.’’ Baker also wrote a letter to Education Minister Stan Hagen in August urging him to scrap Bill 82. ‘As a consequence of this (Bill 82) teachers in the (North Vancouver) school district are without a contract and have received no increase saice June 1990. This is a community that pays the highest school taxes in the province. Something is very wrong,’” wroie Baker. Daiton also opposed Bill 82. He cailed the legislation unfair and said the collective agree- ment reached between the NVSB and the NVTA should be honored. NVTA president Linda Wat- son said Baker’s opposition to Bill 82 ‘‘points out how bad this Jaw is.” Weather Saturday and Sunday mostly cloudy with 30% chance of showers. Highs 20°C. Mainland daily newspaper and to cut net losses to Southam Inc. in the event of Pacific Press strikes, the fed- eral Competition Tribunal heard Wednesday. In his opening statement before the tribunal, Stanley Wong, the lawyer for the federal competition bureau, said he will present evi- dence over the course of the two-month Vancouver hearing to show that Southam's controlling acquisition of Lower Mainland Publishing Ltd. (LMPL) affiliates the North Shore News, the Courier and the Real Estate Weekly is worth much more to Southam than the $25 million to $30 million combined purchase price paid for the papers. In addition to expected profits, Wong said Southam anticipates the realization of strategic benefits from its community newspaper purchases. The bureau wants Southam to sell the North Shore News, the Courier and the Real Estate Weekly if the tribunal determines that the common control of community and daily newspapers within the Lower Mainland substantially reduces competition. Wong’s opening statement iden- tified as one of the key issues in the case the extent to which the Sun and Province compete with community newspapers and the Real Estate Weekly for retail advertising dollars. In early 1989, Southam entcred into an agreement to purchase the North Shore News in two steps. The media corporation obtained a 49% interest of the paper in January 1989 and 100% in Sebru- ary of this year. Southam owns the paper in- directly through LMPL, which owns 100% of the North Shore News. In May 1990 Southam secured a 63% interest in LMPL, a group of community and real estate papers. The bureau contends that Southam’s common control of Noth Shore News, the Courier, the Real Estate Weekly and the Sun and Province lessens competi- tion substantially for retail adver- tising services. In a January 1989 Southam document addressing the proposed acquisition of the North Shore News, the community paper is identified as being strategical- ly located as an anchor for a unit- ed community newspaper entity in the Lower Mainland. Wong told the tribunal he will show that acquisition of local community newspapers is a strategic defence against potential competitive thrusts by other groups. Wong said the acquisitions were also considered a move to preserve the advertising revenues of Pacific Press in the event of strikes. In the past, community papers thriv- By Michael Becker News Reporter ed during strikes at Pacific Press. In another Southam document the corporation addresses the pro- active defence of ‘‘existing fran- chises."? The acquisition of com- munity newspapers is seen as a move to support the core daily newspapers, which lost advertising dollar market share in the [980s. It was noted that ‘‘further bomb-proofing is required."’ Wong told the tribunal that he will show proactive defence of Pacific Press revenue was neces- sary because it has posted one of the lowest rates of profit return of all 17 major dailies owned by Southam. He attributed low prof- itability to a combination of low circulation growth, low household penetration, low retail advertising revenues and high costs. Wong said Sun circulation fig- ures for the North Shore showed a decrease of about 4.6% between 1988 and 1990, from 27,000 copies to 25,000. Household penetration dropped 5.7% for the same period, from 47.6% down to 42%. For the same period Province circulation figures increased 2.8%, from 13,800 to 14,200 copies on the North Shore. The North Shore News pro- duces 60,000 copies per issue locally and delivers to every door on the North Shore. Meanwhile, Southam and LE‘PL contend that local adver- fsers are not at risk as a result of the 1990 mergers. In a prepared statement, Southam said concerns about any adverse effect on ad- vertisers from the mergers are un- founded. Southam argues that dailies and community newspapers serving the North Shore attract essentially different advertisers. Local retailers prefer to advertise in local community newspapers because such papers more thoroughly cover the local retailer's trading zone and are delivered to nearly all households in the community. Southam and LMPL will pres- ent evidence that the market for retail advertising in the Lower Mainland is not limited to news- papers and that retailers view other electronic and print outlets as suitable substitutes should price or service change at newspapers. Southam says it invested in LMPL properties because they are “*excellent investments which woul be enhanced even further by Southam’s expertise in news- paper publishing."’