I’m not suggesting newspaper advertising as a new model to save the economy. I suggested that this advertising, while objectionable, wasn’t a 100% net loss to the taxpayer. Obviously SME funding is of more benefit, but this feeds into my previous point, that advertising may help get them in through the door.

The need for advertising suggests that the €3.5bn hasn’t been used up quite yet, and there’s probably some left for SMEs at this stage.
You argument about INM not paying tax doesn’t hold water. INMPLC paid in the region of €33million in tax in Ireland for the year ended 2007. What Tony himself does with his personal affairs is not really relevant.

And as for the advertising – it’s hard to argue with the father of modern advertising.
The print adverts made a very particular point, one you would never make in a TV ad, which are driving brand image and recognition rather than having a direct message-to-consumer focus. The paper ads were a ‘strike while the iron is hot’ campaign, as opposed to a long, slow branding burn.

Right, regarding the money filtering back into the Irish economy through the newspapers. Interesting take on it. Why filter it through the newspapers though?

Taking a macro viewpoint, which benefits the economy more?

- allowing 6/8 SME access to say, €13,000 worth of capital each.

- purchasing adverts in the major newspapers that will work out at a maximum of 10% or 15% of their advertising total for that week, 10/15% that they presumably were not expecting or had budgeted for anyway.

I’d argue the newspapers could survive for quite a while without the (estimated average) €20,000 each but could the SMEs who were supposed to benefit from the fund?

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Secondly, after the VAT of €28,615 goes straight back into the Irish economy the newspapers are left with €131,970. Of the newspapers involved, all except The Sunday Times are predominantly Irish owned, but The Indo, The Sindo, The Herald and the The Tribune are owned by Sir Tony O’Reilly who doesn’t pay his taxes here. Two of the three most expensive advertisers are owned by Anto so even putting the Sunday Times aside, it’s not all getting pumped back into the economy, although I accept about some of it will by coming through income taxes of journalists, advetising salespeople etc etc.

But once the profit taken by Tony O’Reilly from his four newspapers is removed, we’re down another few grand of (for the sake of argument) taxpayers money. Why? 1 more SME…

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I dont think your argument about “the man who stops advertising to save money is like the man who stops the clock to save time” holds water.

AIB were advertising before they were recaptialised, you’ve seen the bloke on the surf board taking about how his local bank manager understands his business and the horse breeder who goes on about his local AIB branch knowing exactly what is involved in producing the next Shergar.

These print adverts came on top of the campaign they were already running. They could of pulled the TV ads and put up a static or cheaply-shot text-centred ad in their place at no extra cost (or at last not at a cost of €160,585).

Your arguement about it staying in the Irish economy has some merit although I’m sure about the other points. It was still a ridiculous waste of money.

*apologies for how poorly this was written. Just banged it into the text box off the top of my head, haven’t had a chance to sub-edit/re-read.