U.S. senator calls hearing on newspapers

Posted by Simon Day on April 20, 2009 at 5:40 AM

U.S. Senator John F. Kerry has called a hearing in Washington next week to assess the financials of the U.S. newspaper industry, as advertising revenue continues to plummet amid the suffering global economy, Boston.com reported Monday.

Highlighted by the potential closure of most recent industry victim, The Boston Globe, the Senate Commerce Committee hearing, led by Kerry, is the latest effort from Capitol Hill to examine the struggling U.S. industry.

Earlier this month The New York Times Co. said it may close The Boston Globe, which is set to lose US$85 million this year, unless it could get $20 million worth of concessions from its labour unions.

In a letter addressed to "the Boston Globe family," Kerry gave his support to union leaders currently negotiating the concessions: "America's newspapers are struggling to survive and while there will be serious consequences in terms of the lives and financial security of the employees involved, including hundreds at the Globe, there will also be serious consequences for our democracy where diversity of opinion and strong debate are paramount," Kerry wrote in a letter sent to union leaders Friday, Boston.com reported. The union released the letter yesterday.

"The increase in media conglomerates has resulted in an increase in agenda-driven reporting and over time, if those of us who value a diversity of opinion and ideas, and are unafraid to be confronted with pointed commentary and analysis, do not act, it is a situation which will only get worse," Kerry wrote, according to Boston.com.

Negotiations between union representatives and the Times Co. start again on Tuesday.