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ANNUAL REPORT 2015
2015-52. Refusal of application for distribution subsidy for
association’s periodical – interpretation of provision in executive
order and explanatory notes to enabling act
An association complained to the Ombudsman because the Allocation Committee for the Pool for Certain Magazines and Periodicals had refused the association’s application for a distribution subsidy for its periodical on the grounds
that the association operated a professional publishing house. In its complaint
to the Ombudsman, the association stated, among other things, that under the
Executive Order on Distribution Subsidies, the Allocation Committee could
only refuse its application if, in addition, its periodical was published for a commercial purpose.
The Ombudsman was of the opinion that the wording of the Executive Order
did not in itself provide a completely clear answer to the question of what was
required in order for the association’s application to be refused.
However, based on the explanatory notes to the enabling act, the Ombudsman
concluded that the will of the legislature had been to preclude publications
published for a commercial purpose from receiving subsidies. The provision was
therefore to be interpreted to mean that an application could be refused only if
the applicant was a professional publishing house/a professional publisher and
the specific publication was published for a commercial purpose.
The Ombudsman also disagreed with the Committee’s understanding of the
phrase ‘for a commercial purpose’. In the Committee’s opinion, the mere fact
that a publication was sold was enough for the publication to be regarded as
published for a commercial purpose. However, the Ombudsman noted that
the Committee’s understanding of the phrase differed markedly from the usual
linguistic understanding of the phrase as meaning ‘for financial gain’. As the
explanatory notes did not provide grounds for a different interpretation, the
Ombudsman was of the opinion that the phrase was to be understood in accordance with the usual linguistic understanding of the phrase – that is, the
publication was to be published for financial gain.
The Ombudsman recommended that the Allocation Committee reopen the
case and make a new decision. In this connection, the Ombudsman recommended, among other things, that the Committee include in its considerations
that according to the available information the association was a non-profit
organisation with an educationally-related object and that the editorial staff
and the other contributors to the periodical were unpaid.
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