A national body representing independent news agencies is bidding to scupper the Press Association’s plans for a taxpayer-subsidised ‘public service reporting’ pilot.

The National Association of Press Agencies claims the move would be “anti-competitive” and risked creating a “UK version of Pravda.”

Today it announced it was seeking talks with the new coalition government over the future of the scheme, orginally announced by PA managing director Tony Watson to a committee of MPs last year.

NAPA said the concept of using public money in such a way would “distort the competitive market for news in the UK.”

Its treasurer Chris Johnson said: “This would be the first step on a slippery slope to further demands for the BBC licence fee cash to be used to subsidise all kinds of reporting deemed ‘too expensive’ for commercial companies.

“It would tend towards creating a dangerous reporting monoculture – some kind of UK version of Pravda – and a phenomenon that is quite alien to the British news industry and a free press.

“NAPA will encourage the Department for Culture, Media and Sport to examine the potentially damaging and distorting effects this plan would have on an already a fragile market.

“We believe that it would distort the market and serious discourage new entrants from setting-up in business. It would be anti-competitive, and should be resisted at all costs.”

The PA plan is to establish a network of reporters who can provide in-depth coverage of public bodies which are currently being under-reported.

The original proposals suggested that funding could come from top-slicing the BBC TV licence fee, although the government has now earmarked this to fund the roll-out of superfast broadband.

The Press Association has yet to respond to requests for a comment on Mr Johnson’s statement.