'Half-pregnant’ Productivity Commission report fails to deliver - 24/3/2009
Printing Industries has slammed the Productivity Commission’s draft recommendations to remove restrictions on the parallel importation of books and has branded them a prescription for being ‘half pregnant’.
Printing Industries CEO Philip Andersen said the recommendations appeared to ignore the fact that no problem existed with the Parallel Import Restrictions (30 Day Rule) before this latest attempt by the Federal Government to railroad people into believing they had found a miracle cure for a non existent condition.
"What we need is a prescription to stimulate economic recovery and good health rather than the half pregnant diagnosis proffered in this report," he said.
"Despite the fact that overwhelmingly, the submissions made to the inquiry supported the current parallel import restrictions, including submissions from the Victorian and South Australian Government, the Productivity Commission is recommending that parallel import restrictions apply for only a limited period of time – 12 months – which will have the effect of reducing the number of books printed in Australia, particularly reprints.
"It seems that while the Productivity Commission can acknowledge the critical contribution of domestic book printing industry by wanting to preserve parallel import restrictions for 12 months, it wants to dump the industry in favour of imports after that time.
"Where is the stimulus for employment and investment in an Australian industry? Where is the rationale for the Commission to totally overrule the aspirations of that industry and the thousands of people it employs, particularly in regional areas, in favour of imports when there is no economic rationale to do so?"
Mr Andersen said that it was simple logic that if it made sense to apply the arrangements for a 12 month period then the recommendation to introduce an arbitrary timeframe was unnecessary and should be rejected.
The Productivity Commission’s other recommendations include:
- Booksellers should be allowed to overtly offer an aggregation service for individual orders of imported books under the single use provisions.
- The 7/90 resupply rule (applying to reprints) should be abolished.
- The new arrangements should be reviewed five years after implementation.
Printing Industries National Manger for Policy and Government Affairs, Hagop Tchamkertenian said the Association has been invited to a round table meeting on 8 April to discuss the draft report.
"Besides opposing the main recommendation that the 30-day rule should apply for a 12 month period we are also against the recommendation to hold yet another review in five years time. We have now had 6 inquiries during the last two decades and the Productivity Commission has the audacity to propose another inquiry while it is still in the midst of the current inquiry," he said.
"If these recommendations are implemented they will stifle investment and innovation and unnecessarily put at risk employment in metropolitan and regional Australia," Mr Tchamkertenian said.
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