Clearing mines from the 'level playing field' – Print 21 feature

The recently released National Accounts figures reveal some worrying issues that both State and Federal Governments must address if our economy is to avoid reverting back to the 'banana republic' days of the mid 1980's. These issues include the fact that consumption, which is running ahead of domestic production, is being satisfied by importing an ever increasing volume of goods.

(Right: Philip Anderson, national director of Printing Industries.)

The record current account deficit is the result. Domestic production has failed to keep pace with demand for a variety of reasons, all of which are combining to produce inflationary pressures. Shortages of skilled labour and inadequate infrastructure - particularly our ports - are important factors leading to bottlenecks in production occurring. This in part is why the Reserve Bank was forced to act and increase interest rates in March.

Free trade – for who?

The Federal Government's agenda appears to have been driven by free market ideology. This is partially exemplified by the increasing use of bilateral Free Trade Agreements. Such FTAs are now in place with the United States, Singapore and New Zealand. Proposals are in place to develop FTAs with China, Malaysia and ASEAN.

Before signing off on such agreements Printing Industries has urged the Government to take into account the concerns we have identified in discussions with key members of the industry.

Our members have told us they are concerned that competitors from those countries may not face the same level of regulation in the areas of the environment and occupational health and safety. Strong concern was also expressed over the need for our negotiators to ensure proper copyright and patent protection. The final major area of concern was the need to ensure adequate measures are in place to prevent the practise of dumping.

Environmental issues are not free

An examination of just one of these areas – the environment – demonstrates the validity of the concern. Industry is currently facing increasing pressure to become environmentally sustainable, for example:

- The National Packaging Covenant has been under review for the last six months and a new version to cover the period to 2010 will be considered by the relevant Ministers shortly. The new version will be considerably more onerous than the existing one.

- With Greenhouse Challenge Plus, the Federal Government has announced the framework for a revamped Greenhouse program. This is part of the government's climate change strategy.

- Extended Producer Responsibility: Printing Industries has been working on a project to develop a scheme that will address government concerns about office papers going to landfill. It is highly likely that government will impose a legislative solution if industry is unable to come up with a voluntary one.

- The Federal government recently released a discussion paper on Co-regulatory Frameworks for Product Stewardship. The paper sets out a co-regulatory approach as one option for governments to support industry in working with other parts of the community to deliver better environmental outcomes.

- Various attempts have been made to develop Environmental Standards for the printing and paper industries. Printing Industries has concerns with several aspects of those put forward to date and is in the process of discussing with key stakeholders questions about the need for and content of such standards.

Pro-active eco-strategy from WA

Printing Industries Western Australia Region is pioneering an environmental accreditation program that will reward participants with a new competitive advantage. The program has the potential for national adoption in the printing industry. The information gathered will provide the framework for developing specific draft accreditation criteria. The WA region has established a trial 10-member group of printing businesses including offset printers, label makers, envelope makers, mass brochure production, and prepress.

Sum of all parts

The above issues highlight the need for the government to be cognisant of the impact on domestic factors in trade negotiations. The economic modeling conducted for the US-FTA showed a small net negative for our industry. Printing Industries has requested the government conduct similar modeling to identify the impacts on local industry of FTAs with China, Malaysia and ASEAN.

The range of environmental issues noted above, which is by no means exhaustive, is illustrative of the issues our negotiators must take into account. If they fail to do so, our ability to trade in a fair environment will be compromised and our current account will likely worsen.

Further, if appropriate solutions are not found, we are likely to see the Reserve Bank again acting to lift interest rates.


Philip Andersen is National Director of Printing Industries.