Local newspaper publisher CN Group announced a company-wide pay freeze this week and a consultation on up to 29 job losses within its publishing division.

According to CN Group the cuts have been proposed to ensure it remains a "viable business" after falling advertising revenues and an increase in printing costs in 2010.

Chief executive Robin Burgess said the company is consulting on potential redundancies in its publishing division, which would cover 12-16 roles within Cumbrian Newspapers and 10-13 positions at Furness Newspapers.

"2010 was not a good year for our business, advertising revenues overall continued to fall although not as sharply as in 2009.

"This, along with a 22 per cent increase in the price of the paper we print on has meant we have to further cut our costs to ensure we remain a viable business.

"Opportunities to grow our business do exist and we will be developing these in 2011 but we must ensure our core local newspaper, digital and radio businesses are sound."

He said that the decisions are "very sad and difficult".

"We have tried to keep the numbers to a minimum both to minimise the affect on our staff as well as keeping the quality of our output up to the standard our readers and listeners expect."

The CN Group's publishing division prints daily and weekly newspapers in Cumbria, Northumberland and south west Scotland, as well as a range of magazines.

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