Dymocks says independent bookshops will be hurt by decision not to abolish parallel import rules

Book franchises Dymocks and Collins have expressed their disappointment in a long-awaited report into the future of the book industry that did not recommend the abolition of parallel importation rules.

Dymocks CEO Don Grover warns that independent booksellers will suffer from the recommendation to reduce to 14 days – rather than scrap altogether – the time a local publisher can decide on whether it will publish an overseas book before it can be imported.

“Booksellers having to wait 14 days from the release of a product overseas is 14 days too late,” Grover says, noting customers can see a book online on an American and European site and buy it immediately.

“It’s taken two years to find out we’re not going to be more efficient in getting books to customers,” Grover says.

“The report is dealing with the issues, but not the one that would make the biggest difference – removing parallel importation restrictions.”

He says the delays in getting new releases to market and the price differential between Australia stores and online offerings will continue to pressure booksellers, estimating that annual sales for the industry are down 20% year on year.

The industry was rocked in February by the collapse of REDgroup Retail, which owned Borders and Angus & Robertson. Both Dymocks and franchise book chain Collins Booksellers picked up some stores from that collapse.

The report by the Book Industry Strategy Group, chaired by Barry Jones, has 21 recommendations, including:

• The creation of a book industry collaboration council to provide advice to the industry.
• For universities and the Federal Government to invest $16 million between them to establish a national university press network.
• Dropping the goods and services tax on books, and if not applying the GST on online purchases.
• Making online packages within Australia more affordable.
• Ensuring that an Australian publication is released within 14 days of publication elsewhere in the world, rather than current timeframe of 30 days.
• Funding of $5 million for the development of digital infrastructure to help local suppliers compete internationally.
• All literature prizes funded by government, such as the Prime Minister’s award, be made tax-free, as is the case with the science prize.

Speaking yesterday, publisher Louise Adler said $2.3 billion worth of books were sold in Australia in 2010, and $35 million worth of eBooks were sold.

“What we predict is that will rise to a total of sales of anywhere between 6% and 25% by 2014,” Adler said, according to a transcript.

“In 2010 over 25,000 people were employed in our industry, 10,000 as content creators, 5,000 in publishing and distribution, 2,000 in printing, and over eight and a half thousand in retail.”

Book Industry Strategy Group chair Barry Jones noted that although Australians were typically slow to adapt to technological innovation, once they adopt, their take-up rate is rapid.

“The proportion of eBooks bought is currently about 5% of the total market, but in three years, our best estimate was that the proportion is likely to increase to 25%. And that may be a gross understatement.”

Innovation Minister Kim Carr yesterday kept an open mind on the recommendations when being interviewed by the ABC, saying the industry would need to face up to challenges and he would consult with other relevant minister about the recommendations.

Daniel Jordon, who heads Collins Booksellers, says elements of the report are very good, including the move towards 14-14 for parallel importation and the book industry website Title Page.

But Jordon noted:

• The lack of dates for the implementation of recommendations.
• The report was overly focused on the publishing and print side which employs 2,000 people, rather than the book-selling side, which employs 8,000.
• There is unlikely to be Government support for either removing the GST on books sold here or introducing it to online sales.