'Last straw' for troubled paper

By Mark Reynolds

Horton Media's dalliance with the evening newspaper market in Auckland appears to have been sunk by the threat of an increase in the charge for news content supplied by the New Zealand Press Association.

Horton Media, publisher of the Manukau-based Daily News until its closure yesterday, was in dispute with the NZPA over use of news supplied by the national agency.

The NZPA is a cooperative organisation. Its newspaper members subscribe for news and information content based on the paid circulation of their publications.

The Daily News had a paid circulation of only 2000 copies, but was regularly distributing up to 50,000 newspapers free throughout Auckland, using stories supplied by the NZPA to fill its pages.

Paul Cavanagh, chief executive of the NZPA, confirmed he had had discussions with Horton Media executive Matthew Horton about the use of material in free papers.

"We made it clear that we were unhappy because the NZPA service is not available to free papers," said Mr Cavanagh. "He was told that the options were to either stop doing that, or not to use PA material in those free papers."

Mr Horton was not available for comment yesterday, but staff at Horton Media's East Tamaki headquarters said the threat of having to pay more for news content was the final financial straw for the paper.

"The costs of getting the NZPA feed was expected to escalate and that was unacceptable," said one staff member, who spoke on condition of anonymity.

Mr Horton said in a short statement to about 30 staff at the newspaper yesterday that continued trading losses at the paper were unsustainable and it was being closed immediately.

The level of losses has not been disclosed, but staff said they had been told that the plug had been pulled by a family trust that operated the paper.

"To be completely honest, I don't think Matthew Horton knew until this morning that it would have to close. It was a family trust decision," the staff member said.

The newspaper was launched as a South Auckland daily afternoon newspaper in March 1998 but struggled to attract enough retail advertising to be a viable business.

Horton Media will continue to operate its other commercial printing and newspaper operations, including the Northland Times, based in Dargaville.

The publishing company was set up by Michael Horton in 1996, after he sold his 7 per cent stake in Wilson & Horton, which publishes the New Zealand Herald.

His son Matthew Horton assumed ownership of the enterprise on April 1 last year.