Book publishers warn viability at risk

The viability of New Zealand's book publishing industry is under threat unless the Government changes its stance on parallel importing, the Book Publishers Association has warned.

Parallel importing of goods - bypassing local suppliers, licensees or agents - has been legal since 1998 but the association has told the Government the regime puts at risk the local publishing "infrastructure" which allows New Zealand authors to get into print.

In a paper considered by Cabinet last month, Associate Commerce Minister Judith Tizard wrote that the Government's latest review of the practice had found "the probable gains to society as a whole of parallel importing exceed any observable detriments".

The Ministry of Economic Development carried out the review, which focused on parallel importing's effects on New Zealand's creative industries.

Cabinet accepted a recommendation from Tizard that the Government keep a watching brief on the issue but leave the rules unchanged.

Some children's book publishers told the MED they were reluctant to publish New Zealand produced picture books because of the proliferation of cheap overseas alternatives.

Tizard's paper conceded children's publishing was "one possible exception" where parallel importing had been detrimental. "However, the extent of the impact in this area is unclear."

In its submissions to the MED, the Book Publishers Association (BPA) said a major New Zealand retailer, which it did not name, was on the verge of deciding to source its books from its Australian sister company rather than through New Zealand warehouses.

BPA president Michael Moynahan told the Business Herald the move could lead to harmful "infrastructure deterioration" within the local publishing industry.

"If a major retailer were to decide to source from offshore and not locally, that would begin to reduce the infrastructure that existed here which would then potentially also have an impact on what support New Zealand publishers would be able to give to the New Zealand market," he said.

Tony Fisk, of Hachette Livre (formerly Hodder Moa Beckett Publishers), said it would be possible for retailers with international connections to shift their buying operations overseas but they seemed happy not to do so at present because they received good support and service locally.

"Certainly if there was a change of heart by one of the major players to change their sourcing preference then that would have a major impact on New Zealand publishing because New Zealand publishing is by and large supported by international publishing," Fisk said.

Moynahan declined to name the retailer referred to in the association's submission, saying its potential pull-out remained just speculation.

The country's three largest book retailers are Whitcoulls, the Paper Plus group (including the Take Note and Books & More brands) and the Warehouse.

Of the three, only Whitcoulls, owned by Pacific Equity Partners, has a sister book company in Australia, Angus & Robertson.

Whitcoulls book manager Joan Mackenzie said plans to stop sourcing stock locally were "not on our agenda".

"We are very well served by our local supply base so at this time we see no reason to change," she said.

In the Cabinet paper, Tizard said it would be a serious concern if a retailer did move its source of supply to Australia.

But it would not necessarily mean the retailer concerned would cease to buy as many books by New Zealand authors as before, since there is still money to be made from those titles.

The parallel importing policy was introduced by a National Government. Economic development spokeswoman Katherine Rich said there was no plan to change the policy.