In its report released yesterday the Productivity Commission outlined that by removing the restriction, local booksellers would have the option of accessing better value books from overseas. Local publishers would have a strong incentive to make their prices more competitive and to look for greater efficiencies in their operations.

Prices for books in Australia are currently significantly higher than those n the US or UK.

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

He continues, “Coupled with improved subsidy arrangements to address the relevant cultural aspects of Australian literature, the reforms would benefit the community overall.”

However, Printing Industries disagrees saying it is shocking to see a Commonwealth Government agency recommending a policy that will increase unemployment and dismantle industry when employment prospects are deteriorating due to the global economic downturn.

Philip Andersen, CEO of Printing Industries says, “The fact that the Productivity Commission has made such a recommendation not only shows its total disconnection from the real world, but also a disconnection from its own inquiry process as the vast majority of submissions supported the retention of the existing arrangements.”

Andersen continues, “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.”

Meanwhile, Hagop Tchamkertenian, national manager for policy and government affairs at Printing Industries reinforced Andersen’s stance saying, “If implemented, the Commission’s recommendations would represent a mindless destruction of a thriving, creative industry without evidence of any offsetting national benefits. They must be completely rejected by the Federal Government.”

The recommendations outlined in the report include:

• Recommendation 1: The Government should repeal Australia’s Parallel Import Restrictions (PIRs) for books. The repeal should take effect three years after the date that it is announced.

• Recommendation 2: The Government should, as soon as possible, review the current subsidies aimed at encouraging Australian writing and publishing, with a view to better targeting of cultural externalities. Any revised arrangements should be put in place before the repeal of the PIRs takes effect.

• Recommendation 3: The outcome from the repeal of the PIRs and any revised subsidy arrangements should be monitored and assessed five years after implementation. To assist that assessment, the Australian Bureau of Statistics should, as soon as possible, undertake a revised version of its 2003-04 surveys on the books industry and market, having regard to the information gaps and interpretation problems identified in this study and relevant data held by other agencies. It should then update these revised surveys prior to the commencement of the five year assessment.

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