The Hong Kong Newspaper Dealers Association (HKNDA) withdrew its suggestion to raise the price of Chinese newspapers yesterday amid strong objection from its members and the public.

HKNDA Vice-Chairman Cheung Tak-wing said the proposal was only initiated by a few of the association's members without thorough consideration.

Last Saturday, some members of the HKNDA suggested a HK$2 price hike for Chinese newspapers, citing fierce competition from convenience stores and free newspapers.

After a consultation within the association, Cheung said more than 90 percent of HKNDA members objected to the suggestion.

A man buys a newspaper from a vendor in Mong Kok yesterday. Edmond Tang

Instead, the association called on the industry to unify the selling price of Chinese newspapers at HK$6 as some vendors lower the price to HK$5 to compete with chain stores.

Among the 2,300 newspaper vendors in Hong Kong, about 30 percent are selling the newspapers at HK$5.

About 200 to 300 newspaper vendors have lost their jobs as they failed to survive the strong competition.

Amid the current inflation, the HKNDA does not prefer raising the newspaper price, Cheung said.

"The emergence of free newspapers has already affected our business, and the price increase would only drive more readers away," he added.

He expected the sales to drop by approximately 30 percent if the price is raised by HK$2 to HK$8, while newspaper vendors in residential areas would bear the brunt.

In addition to reaching a consensus within the industry, Cheung hopes convenience stores, supermarkets as well as gas stations would understand the plight other vendors have been suffering.

The public generally objects to the price increase.

A retiree named Lee who buys two to three newspapers everyday said it is unacceptable to raise the price to HK$8. Yet he would not switch to free newspapers as he found their contents not rich enough. He may buy only one newspaper in case of a price increase.

Another retiree named Tang only buys newspaper the day before a horse race day. He normally opts for newspapers that are priced at HK$5 as he finds anything more expensive unreasonable.

To Yiu-ming, assistant professor of the department of journalism at the Hong Kong Baptist University, said the HKNDA's withdrawal of its proposal signifies a dilemma.

A price increase is impossible as the public would not accept it, but most vendors can hardly compete with free newspapers and convenience stores.

Vendors may therefore have to widen their range of commodities to help make up the loss, To added.

(HK Edition 05/07/2008 page1)