Cutting off the homegrown authors and publishers?

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robmclennan pointed out this press release from the Literary Press Group of Canada(LPG). I can't recall having picked up much of their associated publishers' product lines over the years, but must admit to being more than a little concerned over the consequences for independently-owned, homegrown publishing of any sort. It's difficult enough to build up a local indy publisher without either falling prey to bankruptcy or foreign takeover as it is around here, and this could make the situation a lot worse.