NAA to Congress: Government Handouts Not Appropriate

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By: Jennifer Saba The head of the newspaper industry's largest association for publishers and executives told a congressional committee this morning that newspapers are not looking for government aid.

John Sturm, the president and CEO of the Newspaper Association of America, testified in front of joint economic hearing economic hearing on "The Future of Newspapers."

In a statement released by the NAA, Sturm told the group that the "industry is not seeking a financial 'bailout' or any other kind of special subsidy, something that would not be appropriate for an industry whose core mission is news gathering, analysis and dissemination."

Sturm did make the following points as to what the NAA supports:

*Legislation already introduced that would expand the net operating loss provisions to five years instead of two years benefiting all businesses.

*Change current funding regulations that require businesses to use cash reserves to fund pension plans. The NAA backs legislation that would spread out pension obligations.

*Allow newspapers to operate as non-profit entities while continuing to generate advertising revenue, legislation that "has merit and could work in certain situations."

*Finally, the NAA said it expects that several solutions to obtain fair and reasonable compensation for content to hit the marketplace next year.

Representative Carolyn Maloney of New York convened a House committee in Washington D.C. this morning "to examine contraction in the newspaper industry, the economic impact of the changing media landscape, as well as the future of the industry at large."

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