Small Business Minister Nick Sherry’s prediction today that online shopping would wipe out bookstores should be seen in the context of his government’s record, according to Senator Scott Ryan, Shadow Parliamentary Secretary for Small Business and Fair Competition.
In its June 2009 report, Restrictions on the Parallel Importation of Books, the Productivity Commission stated:
Without PIRs, were booksellers to freight in large shipments of books from overseas suppliers (or obtain sharper prices from local publishers), this could improve the competitiveness of local ‘bricks and mortar’ retail stores against large overseas-based online sellers, such as Amazon.
Despite this, former Small Business Minister Craig Emerson rejected the Commission’s recommendation to remove the parallel importation restrictions on books. This resulted in unnecessarily high prices for domestic booksellers and a greater incentive for consumers to shop online.
“Consumer behaviour is undoubtedly changing,” Senator Ryan said.
“But booksellers in Australia have every right to be angry when Nick Sherry’s predictions of doom come after the government ignored recommendations aimed at making life easier for domestic booksellers and lowering their costs.”
“Consumers will not pay unnecessarily high prices for books or any other goods. The government should be removing – not imposing – barriers that force higher costs on small retailers and consumers.”
“As Minister for Small Business, Nick Sherry should be encouraging the prospects and aspirations of small business, not predicting doom and gloom and the end of book retailing – especially when one of the major problems for domestic book sales is a direct result of Labor policy.”