In defence of local newspapers...

Ms Enders said local newspapers would see a reduction in advertising revenue of 52% from 2007 to 2013, equal to £1.3 billion.

The rise of the internet and digital television had created over-capacity for advertising, she said, and newspaper circulation was falling.

She said: ``We are expecting that up to half of all the 1,300 titles will close sometime in the next five years.

``Many titles are already running at a loss and are being sustained by owners who see the titles as falling within a portfolio.

``A lot of titles are already being sustained by the good graces of their owners."

But she also came out in defence of local newspapers, saying that they offer a unique forum for in-depth coverage.

Ms Enders said: ``I do a lot of TV news and I'm constantly being cudgelled by producers to summarise everything in a soundbite lasting a minute and a half if possible.

``TV news tells us what's actually going on but the ability for it to provide any colour or depth is incredibly limited, and it's the same thing with radio news."

Internet blogs are not a substitute for the newspapers because they are subjective commentaries and not professional news coverage, she added.

Mr Thomson said a ``strong and vibrant press" was a key part of a democracy and boosted the local economy.

Flagging titles could survive via mergers, and he said he could not understand government competition rules covering the sector.