LOCAL NEWSPAPER editors contemplated another disheartening set of regional circulation figures last week, but falling sales and shrinking advertising revenues were not all that was weighing on their minds.

Some regional titles already have low life expectancy - and Scotsman publisher Johnston Press announced two free newspaper closures in Ayr and Glasgow this month - but editors and executives are concerned things will get even worse, as BBC Scotland prepares to move slap-bang into their natural heartland.

Although senior figures in BBC Scotland have vehemently denied the charge, local newspaper executives fear plans submitted to the BBC Trust this summer for six new regional video journalists across the country will stymie the one part of the local news business that is actually growing - online news.

Last week the trust, which monitors the state broadcaster, said it will announce interim results of a public value test into the plans in November, with a final decision to follow next February.

This decision is crucial to the business strategy of almost every local publisher in Scotland, so it is not surprising that the corporation and local press bosses are already squaring up.

Atholl Duncan, the BBC head of news, claims the new content will actually help local papers more than hinder them. He says the BBC will give its video footage to local papers free of charge and his journalists will "link" their content to the local papers' sites. It is, so the BBC argues, a win-win situation for the local press which will get high-value content for free, and increased traffic because of the BBC link, which will increase visibility to search engines.

Not so, say many in the local paper industry, one claiming the BBC is "putting a spin on it" in order to get its plans - viewed as key to the BBC's continued relevance in a digital age - past its watchdog.

"It is utter nonsense," says Jim Raeburn of the Scottish Daily Newspaper Society, when asked if he believed extra BBC content would help the local press.

"I would be very interested to see the evidence the BBC has to justify his Atholl's claim that BBC online local news video will enhance the local and regional news coverage of its rivals. We know full well the BBC will use its incredible cross-promotional opportunities through TV and radio to drive audiences to its own websites.

"The trouble is that the Beeb wants to have a finger in every pie. This can only mean there is less pie to share among the commercial operators who, without the privilege of the television licence fee, have to earn their revenues based on audience reach."

Duncan denies that charge, claiming that the corporation would be remiss if it wasn't developing its online offering.

"When we talk to our audiences they tell us loud and clear that they want better, regional news from around Scotland. We have always been in the video business."

The debate is far from simple, and the stakes could scarcely be higher. The latest round of regional newspaper circulation figures, released by ABC last Thursday, reflected the Scottish summer: too much rain, a few bright spots but dark, brooding clouds on the horizon, courtesy - say critics - of the BBC.

But a handful of papers shone. Six papers across Scotland posted circulation increases and The Courier and the Press and Journal held up well enough, with falls of around 2%. For the rest, however, there was a deluge of bad news, as circulations continued their seemingly endless march downwards.

Although digital advertising revenues are still far smaller than their print equivalents, the growth in the area is phenomenal. Johnston Press, for example, reported growth of 52% in the last week's interims.

David Hutchison, a media researcher at Glasgow Caledonian University, gives little credence to the BBC's argument that its plans will "help" the local press. Instead, he argues they can only lead to a further drop in sales for regional titles and more depressing ABCs down the line.

"The crucial market is the youth market - those that have turned away from newspapers. I fail to see how a new BBC online service will engage people to buy newspapers. And it is through newspapers that local regional publishers continue to make most of their money."

Hutchison says it would be too simplistic to place all the regional press's future woes on the BBC's doorstep. He claims that the pursuit of high profit margins by local newspaper companies, such as Johnston, Trinity Mirror, Newsquest, and Forth and Clyde Press, has led to a lack of investment in the titles, which is hurting sales right now - but calls for the BBC to "demonstrate" exactly how its plans will help the press.

However, not all editors are quaking in their boots at the BBC's proposals.

Susan Windrum, the group managing editor of Johnston's Hawick News & Border Chronicle - whose sales increase of 4% (according to the latest set of ABCs) makes it Scotland's fastest growing print title, says the jury is still out on the BBCs proposals.

"It remains to be seen what effect they will have. I can only speak for our paper, but we have a very loyal readership and when they are searching for news about the Borders they will turn to us."

Asked if she fears for the survival of more local titles Windrum - who puts the Hawick News's success down to local editors concentrating on strong local stories - textile maker Pringle pulling out of the area for instance - said "regional titles are the best placed to get through this".

Whether or not BBC Scotland gets the go-ahead to proceed with local news video is still in the hands of the trust.

According to Scottish member, the economist Jeremy Peat, the trust has still very much to make up its mind: "We could still say no to the whole thing. The trust has a strong track record in requesting alterations or amendments to such plans."

But until that decision is made, and with so much hanging on the decision, it's likely that both sides will fight their corner to the bitter end.