Book trade says change in Australia bad for NZ

A change in Australian rules could have ramifications here. Photo / Greg Bowker

A recommendation that the Australian Government lift parallel importing restrictions on books would have a significant impact on New Zealand, the local book trade says.

Australia's Productivity Commission has told the federal Government that parallel import restrictions should be removed because they substantially push up the price of books.

The commission compared the prices of 350 books in Australia with editions sold in the US, and found they were on average 35 per cent more expensive.

Currently the Australian book industry is protected from parallel imports by the 30/90 rule - booksellers cannot import an overseas edition of a title as long as an Australian-based publisher releases it within 30 days of it being published elsewhere, and maintains a capacity to resupply within 90 days.

Although parallel importing has been allowed in New Zealand for some time the Kiwi industry has been in the shadow of the Australian regime.

Most publishers are transtasman and so the Australian 30/90 rule has meant New Zealand booksellers can get timely access to titles without having to import from elsewhere.

However, if Australia were to remove restrictions it would be open slather, local booksellers and publishers say.

The Book Publishers Association of New Zealand says there is no evidence parallel importing brings down prices.

In its submission to the Productivity Commission it said an open market would see multinational publishers reduce their investment in the local industry, meaning fewer resources to put into the publishing and marketing of New Zealand books.

"All that may happen is that there will be a reduction in the range and the availability and the infrastructure to support local publishing," president Tony Fisk said yesterday.

He said the commission's decision was not a surprise.

However it was still only a recommendation at this stage and there was likely to be a huge amount of lobbying against it in Australia.

"It absolutely doesn't change our view in terms of New Zealand and obviously we'll support the Australians in any way we can."

The Productivity Commission received 563 submissions as part of its review, including papers from authors such as Peter Carey and Tim Winton who are strongly against lifting the ban.

Booksellers have also opposed the removal of protection.

REDgroup, owner of the Whitcoulls and Borders retail chains, told the commission the regulatory environment should be maintained with some modifications.

However, the rival Dymocks chain has supported the removal of restrictions.

Chief executive Don Grover told the Herald last month that there was huge over-charging in Australia and that extended to New Zealand.

He said Dymocks' Hong Kong operation could get the same books at a significantly cheaper wholesale price.

Victorian Premier John Brumby has called the proposal to abolish import restrictions "cultural vandalism".

It would damage his state's cultural and creative industries he told the Age yesterday.