Labor Opposes Moves On Cds
The Age
Thursday October 16, 1997
Canberra
The Federal Opposition will oppose the Government's deregulation of CD imports, supporting industry claims that thousands of jobs will be wiped out and musicians' incomes jeopardised if it goes ahead.
The Opposition Leader, Mr Kim Beazley, yesterday committed the ALP to opposing the Government's plan, which would allow independent retailers and individuals to import first-release CDs, undercutting the average $30 paid now.
As reported by The Age on Tuesday, the ALP has accepted industry assurances that deregulation of the market would have a catastrophic effect. Mr Beazley said the situation had changed markedly since the Labor Government attempted to deregulate the import industry.
Professor Allan Fels, the chairman of the Australian Competition and Consumer Commission, had reported that the import monopoly only served to push up prices and deliver huge profits to the (mostly) multinational music companies. He has said CD prices would fall by at least $5 after deregulation.
When the Keating Government eventually decided to maintain the import monopoly, it did so only on the basis that the industry spend an extra $270 million in developing and promoting local music talent. Mr Beazley yesterday admitted the music companies had reneged on the deal.
"We would also be urging the big companies to complete their side of what was that bargain," he said. "I understand there's been some increase, but not the $270 million over three years that we wanted."
In negotiations with the Australian Record Industry Association, the industry offered the coalition a total local development package of $350 million over three years.
Significantly, that was not in addition to present spending levels of $130 million, meaning that the package offered to the Government in return for maintaining their import monopoly was less than the amount they already spend.
Mr Beazley said that he accepted industry warnings that up to 50,000 jobs could be at risk as a result of the monopoly being scrapped, despite the release of official statistics suggesting that fewer than 5000 were employed by the industry.
The Labor Party's decision leaves the fate of the import monopoly in the hands of the Australian Democrats, who will decide their position next week, or the Tasmanian independent, Senator Brian Harradine.
The Government has vowed not to back down and the legislation is expected to be introduced into Parliament within a month.
The Communications Minister, Senator Richard Alston, yesterday accused the recording industry, which is dominated by six multinational companies, of deliberately concocting an artificial price-rigging system that had nothing to do with protecting the local industry.
He said the Government, like the previous Labor Government, recognised that annual profits of more than 16 per cent before royalties meant the system had been used and prolonged for reasons that had little to do with the original copyright protection.
PAGE 15: Mushroom effect; Campaign runs out of excuses.
© 1997 The Age