Industry outraged over NAB offshore print scandal

Offshore print was identified by the NAB as critical to the reduction of its print-related costs in a proposal document sent to a select number of printing companies. This was coupled with the eye-opening news that security print company Placard Pty Ltd could be losing its contract to produce Medicare and Veteran's Gold Pass cards to international competitors.

The industry has responded with heated anger to the news, with many companies expressing dismay that any further shift of production overseas could be mandated into any printing contract.

“I think companies across Australia were horrified by the news,” says Philip Andersen, CEO of Printing Industries. “Local commercial printers have given the banks a lot of support in recent years, and were disturbed to discover that this support has not been reciprocated.”

Correspondence from Robert Gerace, state sales manager for CPI in Adelaide, neatly summed up the responses received by Print 21 following the publication of the story.

“I am still picking myself up after reading the article,” claimed Gerace. “How much longer are we going to allow this to continue? We will not have an industry left very shortly.”

Peter Booth, managing director of Fishprint in Victoria, also expressed his disappointment in the lack of support for the printing industry, and claims the news will impact his future choice of financial organisations.

“Our business is currently looking to change banks, and possible to refinance. NAB was at the top of the list, as we have recently done a fair amount of business with them,” says Booth.

“Following hearing the news, we are now putting the NAB at the bottom of the list, and putting the rest of the financial institutions above them – subject to their print buying policies.”

Carmel Quantock, governing director of Product Dynamics, took particular issue with the Federal Government's haste to begin shifting its printing contracts offshore.

“Business owners in Australia have to contend with Workcare, superannuation, holidays and all the other perks Australian workers enjoy. And the Government takes 30 per cent of its earnings to boot,” says Quantock.

“I feel angry that the Australian Government is not supporting the very industry that pays its way, by choosing instead to chase the lowest price. It's out and out exploitation of workers in poorer countries anyway.”

Dennis Cooper, group general manager JS McMillan Printing, confirms that it would be bad news for the industry if large institutions such as the banks began shifting their printing offshore.

“Over the past 12 months the printing industry has been under a lot of pressure, forcing a number of companies to close their doors due to the competitiveness of the market and an oversupply of equipment across the country,” says Cooper.

“At such a difficult time it would be most unfortunate to see major institutions such as banks begin to move offshore for their printing requirements.”

However, Cooper notes that such organisations may be stifled in their attempts to source low-cost overseas print by a number of factors – mainly, the unreliability of international freight and recent problems with wharf clearances in Australia.

“While many might look at the possibility of sourcing print from overseas, such issues will mean that it will not materialise to the extent that the industry believes, particularly for organisations such as the NAB who are involved in time-critical print. So the industry response may be a bit of an overreaction as far as this is concerned,” says Cooper.

So what do you think? What impact will these developments have on the Australian print industry at large, and how will it effect your own commercial printing business? Get in touch with Print 21 with your comments by emailing editor@print21.com.au.