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| Ms Rinehart now has an 18.67% stake in Fairfax media |
Australian
officials have expressed concern that billionaire Gina Rinehart's increased
stake in Fairfax Media may compromise its independence.
The mining
magnate, who now has an 18.67% stake, has asked for three board seats and the
right to make editorial decisions, Fairfax newspapers report.
Acting
Prime Minister Wayne Swan says this may have "very big implications for
our democracy".
Fairfax has
said it is cutting 1,900 jobs over three years to save on cost.
Ms
Rinehart, who enlarged her stake in the company from 12.58% last week, is now
Faifax's largest investor.
Aside from
the three board seats, Ms Rinehart also wants to be able to hire and fire
editors, Fairfax newspapers report. Fairfax journalists have written to her
asking her to respect the company's editorial independence policy.
Ms
Rinehart, who oversees an iron-ore prospecting empire, is a vocal opponent of
the government's mining and carbon tax plans.
Both Mr
Swan and Communications Minister Stephen Conroy urged Ms Rinehart to respect
Fairfax's charter and editorial independence.
"If
she was to directly interfere and breach that charter, it would actually lead
to a crisis of confidence among the readership and if the readership deserted,
then the share price for every shareholder would decline," Mr Conroy said.
Mr Swan
said: "I think that has very big implications for our democracy, I think
we should all be very concerned at this turn of events."
"She
certainly has a commercial right to do what she has done, but it appears to be
that she will go a step further, not respect the charter of independence, and
reserve her right to direct journalists with instructions that follow her
commercial imperatives."
Fairfax,
one of Australia's biggest media companies, announced major changes on Monday
as part of cost-cutting measures to save A$235m ($237m, £151m) annually by
mid-2015.
Aside from
the job cuts, two printing facilities in Sydney and Melbourne are to be closed
by 2014.
The Age and
The Sydney Morning Herald broadsheets are also going tabloid, with its websites
adopting pay walls from 2013.
 |
News Ltd
said the changes would help the company
invest and innovate
|
Related Articles:
Murdoch's Australian arm News Ltd sets out change plan
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