Media denies alleged pressure over property reports

Newspaper bosses reject claims of real estate industry heavying over bad publicity on the property market and real estate reforms.

Cabinet minister Clayton Cosgrove, spearheading real estate industry reforms, claimed yesterday that industry bosses met senior Fairfax and other media executives and threatened to pull millions of dollars in advertising unless more favourable reports appeared.

He had been told this by "senior editorial people" in a number of newspapers.

"One used the term the `gang of eight', another used the term blackmail [describing how] they had come in and allegedly threatened the editors with pulling millions of dollars of advertising."

Fairfax New Zealand group executive manager Paul Thompson confirmed a meeting occurred with real estate bosses.

They were "feeling bruised at the moment" over negative headlines about the property market and industry reforms.

But no threats were made about advertising. The group was told at the outset that Fairfax's editorial independence was "never for sale".

"I've never heard a threat to pull advertising and it would be a pointless and futile threat ... we're just not open to that kind of interference because the minute you're open to that kind of commercial heavying your independence is gone."

The controversy has surfaced as a bill to reform the real estate industry heads back to Parliament for fresh debate.

Mr Cosgrove's claims were sparked by a letter, released to The Dominion Post under the Official Information Act, claiming Real Estate Institute president Murray Clelland told a Palmerston North gathering that the bill would not pass till after the election.

He also said the institute expected the National Party to make changes in the industry's favour.

National is voting against the bill, but spokesman Simon Power said that was because it wanted its scope widened to bring property managers under the power of a new independent complaints body.

A spokeswoman for Mr Clelland said the meeting with media involved industry leaders and was not an institute initiative.

It sought more balance in some reporting. "It was absolutely nothing to do with Clayton's [legislation]. There was no heavying involved and it was just a discussion around the way the market is reported."

- © Fairfax NZ News