The debate took place last Saturday, chaired by the University of Melbourne's Mark Davis, with panellists Professor Alan Fels, David Vodicka of independent music label Rubber Records, Penguin CEO Gabrielle Coyne, Hardie Grant CEO Sandy Grant and former Wiley MD Peter Donoughue.
Professor Fels opened by saying that he believed that the Productivity Commission report ‘demonstrates beyond argument that the price of books is higher in Australia' and that ‘benefits from import monopolies aren't going to consumers and aren't benefiting Australian companies.' Pressed on whether prices for books would necessarily fall if parallel importation restrictions (PIRs) are lifted, Fels said ‘I can guarantee that the price of books won't go up.'
Coyne rebutted the pricing claims, pointing out that the much-touted Breath by Tim Winton is available in Australia from discount retailers for as little as $16, but could cost over $70 if bought online from overseas and shipped by the fastest (and most expensive) method. Coyne said that Penguin Australia--which currently has 50% of its output by local authors--would ‘weather change', as would other large companies, but that the PC's suggested changes would hit smaller Australian publishers hard. She suggested that pressure to open the market ‘is not about price to consumers but primarily about increasing retailers' margins.'
For Sandy Grant, the 1991 reforms that brought in the 30- and 90-day rules ‘forced Australian publishers to take responsibility as publishers, not just importers.' Grant felt that ‘this is an old battle, and a boring one--and this isn't the reform this industry needs now.' Grant is very concerned that publishers such as Hardie Grant will be severely damaged by the proposed reforms, and the entire industry along with it: ‘Without the certainty of exclusivity, how much should I pay to buy in rights to a successful title or series?' he asked. ‘And if there is "downward price pressure" on local books, it will mean fewer Australian books are published.'
Peter Donoughue reiterated his view that the proposed reforms are ‘about importation and are not at all about territorial copyright' and his belief that opening the market ‘will only affect things at the margins--there won't be a massive drop in prices, but there will be pressure on Australian publishers to be more responsive on pricing.' Fels agreed, saying that ‘the impact on local writing [of an open market] is unlikely to be large--the demand for local stories is and will remain strong.'
David Vodicka chipped in with his experience of the music industry becoming an open market some years ago. ‘The reason that many CDs are now cheaper is nothing to do with parallel importation and everything to do with the internet and fundamental changes in the market,' he said. ‘It's a nonsense to use the music industry as a shining example of what happens if you introduce parallel importation.' And to the PC's recommendation for increased subsidies, he pointed out that ‘subsidies always run out!'
The MWF program continues through this week, concluding with the announcement of the Victorian Premier's Literary Awards on 1 September.
