Having defended press freedom to the death, News Limited’s daily ‘Fiji Times’ appears set to pay the ultimate price. Chairman and chief executive John Hartigan says the paper – one of the oldest and most respected in the world – will close as a result of the Fiji government’s Media Industry Development Decree. The decree gives overseas publishers three months to sell their holdings down to ten per cent or face being shut down by the military-backed government. Australian foreign minister Stephen Smith, New Zealand prime minister John Key and chief executive of the country’s Newspaper Publishers Association Mark Hollands are among those who have condemned the decree which provides for the imposition of fines or jail sentences if disobeyed. Smith says the move was another example of the Pacific nation's military rulers impinging on the democratic rights of its people, and would also hurt investment in Fiji. "We worry very much that this arbitrary move sends a very bad signal as far as future investment in Fiji is concerned, let alone the very bad signal it sends in terms of freedom of expression, freedom of speech, and democratic rights," he said. New Zealand prime minister John Key called the decree “very heavy-handed” and reiterated a call for a speedy return to democracy. “When you start banning media and telling organisations to sell their newspapers, to me it sounds like a step too far,” he said. Effective immediately, the decree imposes fines and jail terms of two years for journalists and editors and orders that all media outlets must be 90 per cent owned by Fijian citizens who live permanently in the island nation. Founded in 1869, the ‘Fiji Times’ is wholly owned by News Limited, but has its own board which includes several Fijian nationals. Fiji's attorney-general Aiyaz Sayed-Khaiyum says the decree had been misunderstood, and denies it prescribed jail terms for journalists. He says media organisations need to have a stake within the country itself: “They don't need to be pro-government but pro the country.” John Hartigan, who is chief executive and chairman of News Limited, says the decree further eroded the "basic tenets of democracy" in Fiji. "This illegal government has retrospectively withdrawn permission for foreign media investment in Fiji, which is not only grossly unfair but will inevitably be enormously damaging to Fiji's reputation as an attractive investment opportunity," he said. He said he doubted whether there would be a prospective buyer for the newspaper, which employs 180 journalists and up to 1000 people indirectly, in the face of the "draconian restrictions". A new "independent" Media Tribunal will police all articles and broadcasts and impose fines or jail terms on material "which is against the public interest or order, is against national interest, offends against good taste or decency or creates communal discord". "One of two things is likely to result from this: Closure of the ‘Fiji Times’ or a takeover by a compliant new party by the end of September," he said. “Either of these scenarios means a voice of democracy that has campaigned tirelessly on behalf of the people may be silenced." The Pacific Area Newspaper Publishers’ Association (PANPA) as anti-democratic and a crushing blow to free speech that sullies the reputation of Fiji and the region. PANPA’s Mark Hollands says the future of the ‘Fiji Daily Post’ – majority-owned by Australian Alan Hickling – is also in question. The ‘Fiji Sun’ is understood to meet the criteria to be 90 per cent locally-owned. “This is deeply sad and a blow to a free press,” said PANPA chief executive Mark Hollands. “It was never in doubt the Fijian regime would follow through on its threat to remove foreign newspaper publishers. “The only way to address such matters meaningfully is through government-to-government interaction. Despite concerns expressed by the Australian and especially the New Zealand governments, no headway has been made and they have nearly run out of time.” Hollands says he hopes local buyers could be found for the two newspapers to ensure the continuation of the newspapers and protection of more than 200 media jobs in the country. “It is not a seller’s market,” he says. “It would be beneficial to all for current publishers to be given sufficient time to exit – if that is what must happen – in a way that respects the decades of investment in Fiji, as well as to ensure there is an infrastructure and expertise in place to allow the papers to continue to be going-concerns. “Not only has the regime carried out its threat against foreign publishers, whose intent has always aligned with democratic principles, but it has continued with its disgraceful threats of punishment for journalistic error, no matter how unintended or unproven the error might be.” He says the Media Decree has toned down the penalties, but journalists, editors and media organisation still face fines for transgressions. “The Fijian people will ultimately pay the greatest price for this abuse of power,” Hollands says. “They have been denied transparency of the political process that is essential in every democracy.” In the News-owned daily, ‘The Australian’, John Hartigan wrote: “As many newspapers struggle to avoid closure because of the movement of readers to new digital platforms, it is ironic that one of the oldest and most respected newspapers in the world may be forced to shut its doors - by government decree. “This now seems to be the inevitable result of the Media Industry Development Decree the Fiji military government made law this week. “In simple terms, the decree forces foreign media owners to sell down their stakes to 10 per cent or less and imposes more government control, further eroding the basic tenets of democracy in Fiji. “For News Limited, the owner of the ‘Fiji Times’, it means a forced divestment of 90 per cent of the company's interests within three months, but there are greater issues at stake for Fijians. If we can be tossed out of the country, what will stop the regime targeting foreign investors in other industries? While the forced sale of the ‘Fiji Times’ is of concern, it is the punitive sections of the decree that provide the greatest threat. “The decree states that content of any media must not include material ‘which is against the public interest or order, is against national interest, offends against good taste or decency or creates communal discord’ - in other words any story the government does not like. “Of course, these standards will be determined by an authority to be set up by the government. “Any breach of the provisions will constitute an offence, and the media organisation will be liable on summary conviction to a fine not exceeding $100,000, or in the case of a publisher or editor, a fine not exceeding $25,000, or for a journalist a fine not exceeding $1000 or imprisonment for a term not exceeding two years. “There will not be too many potential publishers wanting to purchase a newspaper with these draconian restrictions hanging over their head - even at a fire-sale price. “One of two things is likely to result from this: closure of The Fiji Times or a takeover by a compliant new owner by the end of September. Either scenario means a voice of democracy that has campaigned tirelessly on behalf of the people may be silenced. “It is not just the ‘Fiji Times’ that has been singled out: other media largely owned by Fijian interests will have to conform to the government's wishes or face the penalties outlined. “The ‘Fiji Times’, however, is the largest publication involved and is truly independent. “The ‘Fiji Times’ - a member of the News Limited stable since the Herald and Weekly Times takeover in 1987 - has been a fearless critic of the coup staged by Commodore Frank Bainimarama in 2007 and challenged the legitimacy of his government. It argued for a restoration of democracy through proper elections and provided a voice for the people through its Letters to the Editor. “For its trouble, staff of the ‘Fiji Times’ suffered verbal and physical intimidation, threats of violence, saw the deportation of two managing directors and faced threats of closure. “Pressure has been brought to bear by the government to force the paper's major clients to advertise elsewhere. “The situation in Fiji deteriorated markedly after April 9 last year, when the country's Appeal Court handed down its verdict that the 2007 military coup was illegal and ordered the reinstatement of democracy. The following day, the constitution was thrown out by the Bainimarama regime and a ‘new legal order’ established. Censors were set up in the ‘Fiji Times’ office. “Four days later, the ‘Fiji Sunday Times’ of April 13 appeared with empty spaces where stories banned by censors should have appeared. Those white spaces carried the message: ‘The stories on this page could not be published due to government restriction.’ The next day, the interim government ordered that any repetition would lead to the closure of the paper. “For its part, the Australian government has brought little pressure to bear on the military government to hold elections, restore democracy or re-establish the depleted power of Fiji's judiciary, apart from imposing travel bans on regime leaders. “The ‘Fiji Times’ has proudly served its community since it was founded in 1869. If it is forced to close, the impact on the people of Fiji and the country's economy will be profound. “This is a sorry day for press freedom, for democracy and for the people of Fiji.”