News

Ottawa - 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 of Heritage.



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 exchange."



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.



FOR MORE INFORMATION: Peter Murdoch 905 516-5720 (cell) 613 230-5200,

ext. 249 (office)