Commission delivers body blow to book printers

Print industry vows to fight Productivity Commission’s plans to wipe parallel importation restrictions on books.

In its report released today, the Productivity Commission said that after an analysis of international book prices, the current restrictions create upward pressure on book prices in Australia. It believes that removing restrictions will give local booksellers the option of accessing better value books from overseas.

“Having considered the industry’s feedback on the draft, and undertaken further analysis, the Commission found the case for repealing the restrictions compelling,” said deputy chairman, Mike Woods.

The Productivity Commission’s report acknowledged that: “Abolition of the PIRs would of themselves cause some contraction or slowing in the growth in the book production industries.”

The news may have been disappointing to those in the printing industry, but Alan Fahy chief executive of Australia’s largest book printing company, McPherson's, intends to fight back.

“It’s a long way from being a done-deal,” he said. “There’s still lots of fighting to be done and I have faith that politicians will see the impact that this will have on the industry.”

Printing Industries CEO, Philip Andersen, said it was shocking to see a Commonwealth Government agency recommending a policy that would increase unemployment and dismantle industry when employment prospects were deteriorating due to the global economic downturn.

“Australian book printers have invested substantial amounts of funds in equipment, facilities and skills training since 1991. The impetus of that investment and the confidence expressed in the Australian book printing has been attributed to the copyright changes of 1991 and the introduction of the 30-day rule which helped boost demand for local book printing,” he said.

“The recommendation by the Productivity Commission to remove the 30-day rule by opening the market for books now threatens both the future growth and viability of the Australian book printing industry.”

Printing Industries intends to lobby the Prime Minister and other key ministers, including the Minister for Innovation, Industry, Science and Research, Hon. Kim Carr, who will be attending the next Printing Industries CEO forum in Sydney on 5 August.