Dymocks CEO questions Federal Small Business Minister's advocacy of online sales

In a move that Dymocks retail franchise CEO, Don Grover said was bizarre due to the government’s stand on competitive book pricing, Senator Nick Sherry, Federal Minister for Small Business has advocated online sales as an opportunity for small business.

Grover stated that even if the book industry only existed online, Australian booksellers would still remain uncompetitive when compared to international sites due to the government’s decision, in 2009, to protect domestic publishers and prevent the importation of legally copyrighted versions of books from other countries.

“It means publishers in Australia are not subject to competition which has a flow-on effect, leading to higher wholesale prices for books in Australia.

“So booksellers are unable to buy books at the lowest price for sale in-store or online.

“In addition, online sales in Australia are subject to GST, while offshore internet purchases are not, so we are additionally penalised,” Grover said.

Grover believes that the government needs to take a long-term view and back up literacy and learning with the provision of a wide range of accessible books to suit Australian consumers’ needs and shopping habits.

“We need a competitive and sustainable industry and that means lifting the barriers to success for local book retailers,” said Grover, adding that the government’s legislation is what is preventing Dymocks retail franchise and other booksellers from being competitive.

"It is simply untenable that the Australian local arms of international publishing houses should be able to charge Australian bookstores high wholesale prices for books, when we could actually purchase the same books much more cheaply directly from their overseas parent companies."

Grover also noted that Dymocks and the majority of bookstores are Senator Sherry’s small business constituents because they are franchisee-owned retail franchises.

"If Senator Sherry is really serious about competitiveness and wants small businesses to succeed, then he should be advocating for a law change, not dismissing the industry," Grover said.