Newspaper postage rates increase

Out of the blue, as from September 1, Maltapost announced that local newspaper postal rates were being raised from 18 cents to 38 cents (+ 111 per cent) for up to 50 grams weight and to 56 cents (+ 211 per cent) if that exceeds 50 grams. Most newspapers exceed this latter figure in weight. 

Thus, these have been hit hard by such an abnormally high increase in postage costs. The weekly Catholic Action newspaper Il-Leħen depends very much on the postal service for circulation to its subscribers and very limitedly on direct sales from shops. 

An editorial in that newspaper stated that the additional postage costs total about €34,000 per annum. This additional cost came soon after the publishers of Il-Leħen were excluded by the government from the subsidy given to other newspaper publishers to cover the increase in price of imported newsprint. I understand no reason was given for its exclusion.

An abnormally high increase in postage costs will impact the weekly Catholic Action newspaper Il-Leħen.

Moreover, the publishers were not consulted by the Malta Communications Authority before the massive increase in newspaper postal rates was announced although the authority claimed that all publishers had been given advance notice. 

The editor of Il-Leħen has made an appeal to its subscribers for donations so as to ensure its survival until it makes an inevitable substantial increase in 2024 subscription rates that would hit hard especially members of religious orders and the elderly who comprise a good part of subscribers.

Apart from the lack of consultation by the MCA and the fact that Il-Leħen was excluded from receiving any government grant to cover higher newsprint costs, I consider it very odd also that the authority saw it fit, without due explanation, to increase newspaper postage rates so substantially without paying due regard to the much higher profitability announced by Maltapost’s owners, Lombard Bank Malta.

In September, the bank announced its financial results for the first half of 2023. These revealed an increase of €6.64 million (+23.2 per cent) in operating income. According to an analysis of that figure, ‘postal sales and other revenue’ rose by no less than €4.75 million (+31.5 per cent).

Therefore, one is bound to ask on what criterion did the MCA approve newspaper postage rates, for weights in excess of 50 grams, three times higher than the previous flat rate of 18 cents?

As it is most unlikely that the authority will make a U-turn, I humbly suggest that Lombard Bank’s board of directors makes an annual donation to Il-Leħen at least to cover the newspaper’s totally unexpected additional postage costs of €34,000. 

How about making such a noble gesture, which will make negligible impact on the banks’ financial results?

Anthony Curmi – St Julian’s