Major print buyers move to source print overseas.

In a request for proposal document sent to selected printing companies prior to Christmas the National Australia Bank identifies sourcing print offshore as critical to the long-term reduction of National print-related costs.

In the document, which Print21 has seen, NAB states as much as 50 per cent of its print could be supplied offshore in the medium term and requires any bidders to demonstrate an ability to source print from outside Australia.The bidder is to provide detail of its experience in managing offshore delivery chains, the process it uses to manage offshore supply chains, the processes it would apply to select items that would be suitable for offshoring and the supply partners it uses to manage the supply chain and produce the requirements.

The implication that only bidders capable of having print produced offshore will meet the NAB's requirements has sent shock waves through the printing industry. Philip Andersen, new CEO of Printing Industries said he is “appalled that a major bank, with many printers as its customers, would mandate the offshore production of printing as a condition of its contracts. This means many local companies that produce all their work within Australia are automatically barred from bidding for the work.”

He said that he would not be surprised if there was a “grassroots backlash against the National Bank.”

When questioned about the RFP clause, which is headed Offshore/Lowest cost country supply relationships the bank denied it was mandating offshore production of its printing requirements

“The Print RFP document was issued to a number of print suppliers in confidence and is designed to identify the skills and experience of print suppliers in the marketplace. It is exploratory work only and does not indicate any agreed National strategies or plans,” said corporate affairs manager, Amanda Murray-Johnson.

”One of the National's key regional priorities is to be truly competitive by 2008. To achieve this, we need to look at a number of different sourcing options to achieve
sustainable cost reductions across the business.”

Ms Murray-Johnson reassured domestic printers that: “The National is committed to partnering with Australian print suppliers. The RFP document seeks to identify supplier experience with dealing with offshore print providers should there be a need to source generic print requirements overseas. Any relationships with offshore print providers would be via an Australian print partner.”

Asked about ensuring the National’s strict workplace, environment and human rights policies are adhered to by any offshore print supplier, she states: “We take our commitment to our Corporate Principles seriously, and a core part of this process has been the development of a policy to ensure all operations in other jurisdictions adhere to our principles and reflect a commitment to fair international workforce standards.

"This policy is available on our website. We would expect any offshore suppliers to adhere to the same guidelines and environmental laws as domestic print suppliers.”

Medicare cards to be printed offshore too

In another blow to Australian print manufacturing, sources involved in security printing say it is possible that NPA award-winning high security printer Placard Pty Ltd (part of Security Print International) will lose its contract to produce Medicare and Veteran’s Gold Pass cards to ‘China, India, Mexico or Africa.’ Although the company would make no comment, industry sources say a print broking company is involved in the deal.

Whilst the size of the contract is not huge, it appears to establish the precedent that even a Government Department (Tony Abbott’s Health and Aging), is prepared to source print manufacturing from the cheapest offshore supplier, irrespective of domestic industry, OH&S, human rights or security considerations.

The move to source Medicare cards offshore raises potentially serious security issues. A Medicare card is part of the 100-point ID checklist used by banks and others to establish a person’s bona-fides. In a recent address to businesses on security, the Australian Federal Police Commissioner Mick Keelty stated “Our own AFP investigations have revealed the sale of complete identity packages - including drivers licenses, Medicare cards, passports and birth certificates.”

In NSW, loans obtained by using fraudulent documents such as Medicare cards, are spinning out of control. Corrupt brokers are arranging loans, taking a cut and then disappearing. In a report to the NSW Parliament, researcher Roza Lozusic found:

“For a $500 upfront charge, the brokers create the new identity along with documentation required to satisfy the 100-point identification system banks use for granting unsecured loans. In two days they can produce fake drivers’ licences, council rates notices, Medicare cards, employers’ references, credit cards and bank statements.”

The Dept of Health and Aging was contacted for comment but, as at time of publishing, no comment has been received.

Doug Cameron, National Secretary, AMWU, a well-known opponent of exporting work from Australia sees the offshoring of print as indicative of a wider agenda.

"The trend to source Australian printing from the cheapest offshore supplier is globalisation gone mad. Organisations pursuing this show no social responsibility as they are chasing the lowest cost at the expense of Australian jobs. It ultimately affects families and the very fabric of the country."