Tim Winton is the master of fiction. But his latest tirades prove he doesn’t understand when reality kicks in.

Last week Winton won a fourth Miles Franklin Award for his book, Breath. And to celebrate he used his moment in the spotlight to attack the Productivity Commission’s review to scrap protection for Australia’s book industry.

Parallel import restrictions require books sold in Australia to be produced in Australia. It’s an idea so bad the New South Wales government could have thought of it.

The PC is releasing its final report at the end of the month. The draft recommended partial-liberalisation, because exposing Australia’s book industry to competition is a bridge-too-far.

And even that recommendation has caused alarm bells. Fellow author, Peter Carey, has attacked liberalisation as a form of “cultural self-suicide”. And Winton has previously slammed liberalisation arguing it will result in “great bitterness” amongst Australia’s authors. 

Authors have been whipped into a lather by the publishing and printing industries, which want to ensure books are more expensive than they need to be.

The publishers and printers argue that import restrictions stop competition that would crush the industry, while guaranteeing jobs stay in Australia; and the minimal extra cost is added to the price tag of a paperback that can be significantly cheaper overseas.

And in arguing their case, they’ve convinced authors that liberalisation will also diminish their copyright. They clearly don’t understand the nature of copyright.

In a book there are two property rights. The first is the physical book – the paper, binding and printing ink. The second is the copyright, which is basically the idea expressed through the arrangement of the letters printed on the pages.

Without the copyrighted text a book is just something to jot notes onto.

Import restrictions exist to protect the physical book, not the copyright. So long as the book is produced in a country where Australian copyright is respected and royalties are paid, Winton’s copyright is safe. And if it doesn’t, the book’s a fake in the Australian market and can be pulped.

Similarly the authors claim the industry will stop seeding new talent with cross-subsidies of the profits from existing authors.

But the evidence doesn’t support them. In my recent study, Unbinding Book Barriers, industry data is analysed to assess the impact of removing import restrictions in 1998 on copyrighted sound recordings, read CDs.

The results are clear. The total funds distributed are up. The total number of recipients of royalties is up. And the wholesale price of CD albums is down by 32 per cent.

Winton’s real beef is that authors get paid diddly-squat. And he’s right. But most earn diddly-squat because they write things people don’t want to read.

And Winton knows it. In his submission to the Productivity Commission’s review he says he has “enjoyed considerable critical and commercial success”. He does so because he produces fiction that people want. Not because of any import restrictions. They just go toward beefing-up the salaries of publishing executives.

But the greatest irony of Winton’s criticism is that in his own submission he uses evidence of the failings of import restrictions to justify their perpetuity. Winton argues that when he first started being published Aussie authors could be “edited and published in Australia and forego a British readership entirely, or to have work originate from London and have Australian(s buy) imports”.

He’s right. That was because of market segmentation through import restrictions that were partially liberalised in the early 1990s.

Australian authors, publishers and printing companies will do well when they adhere to the simple principle of ‘supplying’ what consumers ‘demand’ – and that’s an interesting read.

In the meantime authors seem happy to enjoy protection that author, Di Bates, hails as essential to stop Australia being “flooded with cheaper book(s)”. Because the income streams of our less-talented of authors is a higher national priority than making tools for education more affordable.

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13 comments

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    • Allende says:

      10:50am | 25/06/09

      Using CD prices as the benchmark indicator for the removal of import restrictions is specious at best and an outright deception at worse. The arse has fallen so comprehensively out of the CD market you might as well compare book prices to the catastrophic fall in Model T Ford prices for all the rigour it brings to your argument.

      Dymocks put on a good lunch do they Tim?

    • Ian F says:

      11:25am | 25/06/09

      A quick look at Graph 2 in Tim Wilson’s IPA monograph suggests that the CD market in Australia has actually held up remarkably well, given the real challenge to that market segment from digital music retailing. 
       
      I have vivid memories of a cross-bench Senator [from a now almost extinct political party] and a prominent musician [now a Minister] predicting an apocalypse for the Australian music industry if CD PIRs were abolished.  Their predictions were proved completely wrong; Australian consumers were the winners and a decade later nobody is agitating for the reintroduction of CD PIRs. 

      I suspect that book PIRs are another circumstance in which the potential losers from economic reform are concentrated and organised while the potential beneficiaries are dispersed and unorganised.

    • yornup says:

      11:57am | 25/06/09

      “Parallel import restrictions require books sold in Australia to be produced in Australia.” And this is a bad idea… how? Your argument reads like that of someone with a vested interest in these new laws coming into effect. As far as I can gather the cons far outweigh the pros for this piece of legislation with regard to the Australian economy. Those set to win are overseas publishers, and those set to lose being those within our borders. With our (relatively) strong economy the cost of production of the physical book would naturally be higher. The price of paper and ink wouldn’t come down. If this is about creating competition within the Australian publishing industry it will mean that, somewhere along the line, costs will have to be cut, and where better to cut costs than at the level of primary production- the authors and the lower offices of the publishing companies themselves. Sure the price of books to us the consumer may fall, but how many jobs will be on the line as a result? Surely such a sheme would be economically counter-productive. True, the publishers and authors are going troppo about these plans, but at the end of the day it is their livelihoods on the line, not yours.

    • Maurice says:

      12:49pm | 25/06/09

      Anything you care to declare about your interest in this issue Tim?

      Your arguments display a crashing lack of understanding of the art form and industry you’re talking about. How are those ‘supply and demand’ principles going for the Australian film industry Tim? Is that where we want our book trade to go?

      Anyone interested in this issue would do well to read some of the submissions on the PC website rather than this fatuous drivel.

    • jack says:

      12:54pm | 25/06/09

      Let’s hope the government looks after the consumer first and foremost, rather than the rent-seekers.

      I just love that argument, you are all paying a little bit more, but it is good for you and the country. We know better than you rubes, after all we are authors.

    • Matthew says:

      12:55pm | 25/06/09

      It is outrageous to think that in such difficult economic times a productivity commission, whose sole task is to improve efficiencies within the nation, could suggest the removal of PIR’s entirely.

      Tim Wilson is right in suggesting that there exist two real issues;
      1 - copyright being attached directly to PIR meaning that within 12 months he can be paid nothing for his efforts.
      2 - Import restrictions and outsourcing of production.

      Winton can extend his copyright and ensure he is paid adequately for his efforts. What he cannot ensure is the sustainability of print and publishing companies locally.

      Surely the productivity understands that getting a book on the shelf is as much about the publishers as it is about the authors. Are we suggesting that Winton himself move overseas in order to maintain meaningful and productive relationships with his publishing team? Perhaps he should also move his family abroad and spend his Australian earned royalties on fine foreign food and wine.

      I think the smartest move here would be to sell off all the members of the productivity commission as slaves in foreign countries and donate the proceeds to the Australian writers. But even that couldn’t guarentee an income I guess.

    • Mikey says:

      01:04pm | 25/06/09

      I simply refuse to buy books in Australia anymore. Whatever the finer argument about copyright protection, books here are getting too expensive whether they are by Australian authors or ot. Fifty or sixty bucks for a new release title? You have got to be joking. I now save my book buying for whenever I get the chance to visit the US, I head to the nearest Borders or Barnes and Noble and go on a book binge. Enormous range of titles, much better prices. Or I buy secondhand online. Even factoring in the price of postage from overseas, you can still end up in front. I don’t understand why in this digital age the book publishers and sellers seem to be intent on pricing themselves out of the market.

    • Shelley says:

      01:12pm | 25/06/09

      The GST on second hand books hasn’t helped either. We’ve seen our once thriving two for one and cheap second hand book store turn into a morgue because of the price now placed on 2nd hand books.

    • Keith says:

      01:36pm | 25/06/09

      Who could be a more Australian publisher than Lonely Planet? Yet you can buy their guide to Australia from Amazon for a fraction of the price it is sold in Australia. It is printed in Australia (or Asia) then shipped to USA then shipped back here for less than Angus & Robertson will sell it. Of course we should support the import of books. Incidentally an author like Tim Winton has, and should have, a global audience, more likely under imports.

    • Andrew says:

      01:56pm | 25/06/09

      I am a publisher and author, and let me tell you now - I will be out of business if I am forced to print the hard copy of my books here. It is that simple. When i switched my printing offshore I cut my print spend from nearly $100k on a product to $35k and was then able to make money. So Mikey, some people like having a hard copy and not all products are suited to a digital medium. And when you come up with a model that makes money, let us all know. Advertisers aren’t spending, people aren’t subscribing to publications they have to pay for. We aren’t in the business of giving you content so you have some amusement in your own life.
      This is my life, it is how I make money to feed my kids, and people like you make me sick. Do you think I price my books to rip you off? I get around 30% of everybook sold through a store, from that I need to cover all production costs.
      And I say to you Tim, that small publishers are struggling to make ends meet. We are not pushing the prices up out of greed, we are just trying to earn a living. Not all authors make the sort of money Tim Winton does, I work 80 hours a week to make my living, how much do you do?
      The issues as to why books are so expensive is the same reason most of the media in this country is next to useless, the monopolies and anti-competitive behavious is so great in this country there is no room for indepencence.

    • G says:

      03:19pm | 25/06/09

      So the UK and the USA can protect their markets but we need to bend over and let them have open slather on ours?  You simply don’t understand the industry - but I’ll forgive you as many within the industry don’t even seem to understand. The Dymocks group are actively pushing for this but their franchisees don’t ‘get’ that it will make their work so much harder - also as these people are in business to make money the end result will certainly not be cheaper books.  You see they have no risk in what they stock right now - the publisher will take back whatever stock doesn’t sell (so they don’t suffer a loss). For them to buy stock from overseas everything becomes Firm Sale so you get a reduction in choice as well as quality. They have to then hedge their buys by lifting prices to cover the stock they’ve bought that isn’t selling and that they then have a loss on.  As far as new australian authors are concerned forget the opportunities that they currently have. It’s the local publishers that invest time and money marketing them - they cannot afford to do it if they don’t get to sell their edition.

    • LORE says:

      06:54pm | 07/02/12

      “Cultural Cringe”, I like that word. I am an Asian iimgmrant living in so-called posh Sydney North Shore suburbs for only 20 years and I was already infected with that disease.(I rather read Gosh or Roy or Rushdie than Winton or Grenville.)Though, I think that could be the pleasant side effect of living in a society with a disreputable background and a genocidal history, and which was only 200 years old.(It is absolutely impossible to be part of 60,000 years old Aboriginal society here as they are more strictly race-based than mainstream white society here.)But it’s nice here, for we, only 20 millions, collectively owned the whole massive continent. We do need to do nothing else, but just dig the earth beneath and sell the dirt to the rest of the world.My proof is based on the fact that the Australia’s richest man is the chief dirt digger called Andrew “Twiggy” Forest, the CEO of Fortescue Iron Ore.

    • Bumka says:

      12:41pm | 08/02/12

      What do you mean she was very “un auartslian”? what is it with people and that expression? What is it with Australians and that expression? It all comes back to all that “Australian Identity” (meaning WHITE identity) twaddle from upper class north shore conservatives. (i know this comment is slightly unrelated to your very intellectual recount but arrgh!)

 

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