OTTAWA, Feb. 25 /CNW/ - The Harper government should immediately review
the purchase of Canada's largest newspaper chain by foreign investors,
says Canada's media union in a formal request to James Moore, Minister
U.S. investment companies own 92% of Postmedia shares and since their
purchase of the Canwest papers last summer, 500 jobs are gone and work
is being outsourced to the Dominican Republic and the Philippines.
"This is hardly of net benefit to Canadians, their communities or the
critical flow of information in a democratic society," says Peter
Murdoch, Vice-President, Media, for the Communications, Energy and
Paperworkers Union of Canada. The Postmedia papers include major
Canadian dailies and weeklies across the country.
"The Investment Canada Act requires a foreign purchase of Canadian
companies to meet the test of a 'net benefit' to Canada, but we fail to
see how it helps Canada to see these papers damaged by foreign
investors carrying heavy debt loads, particularly when there were
Canadian companies ready to buy them.
"Surely the newspapers that keep millions of Canadians informed are as
much strategic national assets as potash companies or the stock
Murdoch pointed out that the current ownership structure of Postmedia
fails to even meet the requirements for Canadian ownership under the
Income Tax Act. He says the union fears further job losses and even
closures may be on way unless the government takes action.
SOURCE COMMUNICATIONS, ENERGY AND PAPERWORKERS UNION OF CANADA
For further information:
Peter Murdoch 905 516-5720 (cell) 613 230-5200, ext. 249 (office)