Published: February 23, 2012

A HOUSE of Lords select committee report on the future of journalism has peppered its findings with evidence from the New Journal.

The Communication Committee inquiry said it was looking to safeguard the best in investigative journalism in the future, especially against the backdrop of poor economic conditions and the industry’s expansion online.

In a report released this week, peers said: “We have heard evidence that there are some local free newspapers such as the Camden New Journal which provide useful information and expose issues in the public interest which are unlikely to be investigated by other titles. These appear to be the exception rather than the rule.”

The newspaper’s editor Eric Gordon appeared before the committee in October, talking about the New Journal’s history and almost unique independent model.

Deputy editor Richard Osley, who was among the reporting team on the scene during the unprecedented rioting in Camden Town last year, also gave evidence about how the newspaper had reported the violence.

Other contributors to the inquiry included Guardian editor Alan Rusbridger, Nick Davies, the reporter credited with exposing phone hacking, and Private Eye editor Ian Hislop.

Mr Gordon is repeatedly quoted in the final report, having warned peers that too many local newspapers are swept up in a handful of group owners.

In the findings, Mr Gordon said: “What has happened with local newspapers is that they have been slimmed down by large groups in order to cut overheads.

“In my opinion, in order to maintain a good net return, the large groups were seeking 25 per cent or even more in the good buoyant years of the 1990s – whereas we would get along with 10 per cent or so – have cut overheads by slimming down the editorial staff, which in turn means that local courts and councils are no longer covered as well as they should be. Sometimes they are not covered at all.”

In their recommendations, the committee said an alternative to being run by groups seeking profits for shareholders could see newspapers be run by “employee-owned models”. The peers added that the Charities Commission could provide clarity as to whether newspapers conducting good, public interest investigative journalism could at some stage gain charitable status.

The Commission also suggested investigative journalism could be funded by fines paid by errant newspaper should the Press Complaints Commission be given more power to impose penalties. It also recommends newspapers get zero VAT ratings.

Committee chairman Lord Inglewood said: “Investigative journalism plays a vital role in the UK’s system of democratic governance and accountability.

“However, its role and practices have received unprecedented scrutiny over recent months and it faces a number of profound economic, legal and regulatory challenges.

“We are encouraged, nonetheless, by the number of new funding and organisational initiatives that have started to materialise as a means of promoting investigative journalism, and believe it is vital that measures are taken to support and foster further initiatives which are independent of public subsidies or state support.”