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What follows is former Hawaii Island Journal Editor Peter Serafin's testimony to the Hawaii County Planning Commttee on Tuesday:

1 July 08

Peter's Council Testimony:

Members of the council, ladies and gentlemen, good morning. My name is Peter Serafin; for the past 2 1/2 years it's been my great pleasure and privilege to have served as editor of Hawai'i Island Journal. I'd like to start off by thanking Chairman Naole for providing me this opportunity to discuss the recent closure of the Journal, a locally owned newspaper which many on this island and elsewhere consider a valuable local resource.

In certain lines of work, the rewards are not exclusively, nor even primarily, financial. Firefighters. School teachers. Police officers. Health care workers. They certainly earn enough to support their families, but nobody gets rich doing these jobs. However, for a certain kind of person the additional reward provided is much more valuable than money: the opportunity for some type of community or public service.

So it is with journalists. Our function is to provide the most complete information we can, so citizens can make the best decisions they can. This is essential to a functional democracy. In fact, the Founding Fathers of the United States considered an independent press so important that it is the only profession protected, by name, in the Constitution.

For the past nine years, HIJ has served the community as a small, locally-owned newspaper. Then, as now, most local news coverage was provided by Stephens Media Group, a conglomerate of approximately 65 newspapers nationwide that is ultimately controlled from the company's headquarters in Las Vegas. On this island they owned both daily papers and a few smaller ones.

When the Journal started, the two Stephens dailies – West Hawaii Today and Hawaii Tribune-Herald — seldom ventured far from either Kailua-Kona or Hilo, respectively. The activities and concerns of people in Ka'u, Hamakua, Puna and other areas were ignored or, at best, underreported. To an extent, that has changed. We believe that the fact that the dailies are doing a bit better in covering these previously forgotten districts is a direct result of the Journal's example.

We morphed from Ka'u Landing into the Journal in 1998, and by 2005 were publishing biweekly, ultimately distributing 24,000 copies of each issue island wide. Over the years we'd built a reputation of looking deeper into local issues than the dailies did. We took the time to investigate without the pressure of daily deadlines, nor the requirement that a reporter write one story per day.

The Journal grew steadily, and eventually began getting attention beyond this island. Last summer in Honolulu we received top honors from the Hawaii Chapter of the Society of Professional Journalists for Best Community Reporting and Best Feature Writing. We won two of the four statewide categories we were eligible for. During the year no other Hawai'i Island paper was considered the best in any category. We were batting .500 -- not bad in any league. Then just last month, on our third attempt, we were accepted into the highly selective national organization the Association of Alternative Newsweeklies.

Despite these journalistic successes, we faced challenges on the business side. To print a paper like ours requires a Web press, which can cost over $1 million. Through the country, daily newspapers are the ones that an afford this expensive equipment. But their presses are busy only a few hours a day printing the paper. To maximize revenue from this expensive asset, virtually every newspaper company in the country takes on additional contract printing jobs in their off hours. For example, the New York Times press always printed the New York City phone book, and dozens of other outside jobs. It's standard in the industry.

Stephens Media owns the only two Web presses on this island, where they print the Trib-Herald and West Hawaii Today. Lane Wick, HIJ's previous owner, approached Stephens with a contract job to print the Journal. Their response: We'll only print the Journal if you sell us a controlling interest. As a believer in independent journalism, Wick turned them down. With the new publisher, it was the same story – we won't print you unless we own you. The Journal continued to be printed in Honolulu at the Star-Bulletin press.

Although they couldn't buy us, Stephens still wanted a monopoly. A year and a half ago they launched Big Island Weekly, a copycat paper specifically created to drive the Journal out of business. They pursued a strategy similar to the one go! airlines used against Aloha Air. Sell the product – be it advertising space or airline tickets – below cost, and make up the shortfall with cash infusions from the parent company on the mainland. Since the local company has to actually earn the money it costs to operate, keep it up and you'll eventually drive them out of business.

I'd like to make it perfectly clear that the local staffers of Big Island Weekly have nothing to do with this strategy of their bosses. Like the local go! Airlines workers, they're happy to have a job here doing something they enjoy. But make no mistake: just because the local BIW employees didn't know what their bosses on the mainland were up to doesn't mean it wasn't happening. It most certainly was. And a news monopoly serves no one – except, of course, the one holding the monopoly.

This isn't the only place independent newspapers are being attacked like this. In San Francisco, the Bay Guardian newspaper has been publishing every week for almost 40 years. A few years ago a media conglomerate came in from out of town. They launched the competing San Francisco Weekly and sold extremely cheap advertising. The Bay Guardian sued, charging the Weekly was using predatory pricing and cash infusions from the parent corporation intended to unfairly damage their paper. A court agreed and awarded the Bay Guardian $15 million in damages. The ruling stood on appeal.

Besides being targeted by Stephens, the Journal also faced industry-wide challenges. Like all other newspapers – free or paid – the bulk of our revenue came from advertising. Industry wide, newspaper classified ad revenues dropped 5% last year – a continuing trend over the past decade. Print ads were similarly affected nationally.

So what now? Do the people of this island want and deserve multiple news sources? We think they do. Are they content to get all their local news from one off-island company that owns both our dailies, the only commercial TV station and most of the other papers? We think not. I believe people here are smarter than that and want more than that.

Despite their best efforts, corporate media hasn't managed to control everything yet. Blogging is still in its infancy, but locally Hunter Bishop, Aaron Stene and others are giving us online alternatives to the monopoly, as does the new Island Sun.

As for the Journal, it may not be completely dead after all. I was off-island at the beginning of a long-planned vacation when the publisher called and said she was suspending publication. Since then I've been overwhelmed with calls and emails of support – strongly urging us to carry on. A number of investors are in discussion to buy the paper and relaunch publication. Anyone interested in participating in this effort, or anyone with any questions is welcome to contact me at SaveTheJournal@mac.com. As I've always said, I love hearing from readers.

Mahalo for your attention and for this opportunity to speak here.

Peter Serafin

Editor

Hawai'i Island Journal

SaveTheJournal@mac.com