Senator LUNDY(3.07 p.m.) —I move:

That the Senate take note of the answer given by the Minister for Communications, the Information Economy and the Arts (Senator Alston), to a question without notice asked by Senator Lundy today, relating to restrictions on parallel importation of compact discs.

Senator Alston is completely oblivious to the damage that will be caused to the Australian record industry if parallel importing is permitted. This government's total disregard for the thousands of jobs that will be jeopardised by parallel importing further demonstrates their lack of concern for jobs, job security and small business.

Senator Alston's ludicrous assertion that CDs are cheaper in New Zealand and the United States ignores the fact that the US has lower sales tax and lower regulatory rates for artists and composers. New Zealand does not have a strong record industry like Australia's, and in fact most of their major artists come here because our record industry offers them some protection and security. There is no real investment in local talent in New Zealand, their taxation system is different and they have lower advertising rates, which impacts upon the cost of CDs.

Senator Alston's bungled efforts in this matter are highlighted by the fact that neither the United States nor New Zealand allow parallel importing. In fact, as far as I am aware, no OECD country allows parallel importing. The basic fact is that, if parallel importing is to be allowed, then Australian artists will be worse off. Japan, which is probably one example that we could argue does allow parallel importing, does so at a higher retail price than Australia.

How does Senator Alston propose to ensure that any potential drop in the wholesale price of CDs will be passed on to consumers? Already one leading Australian company, Shock Records, have pointed out that, although their recommended retail price is $27.95, their products are often sold for $30. In other words, Minister, your government cannot guarantee that retailers will pass on any savings to consumers. Your proposals will do absolutely nothing to benefit Australian consumers and instead will destabilise a vital industry for the sake of a possible saving of $1.60.

I cannot believe that Senator Alston actually buys CDs. If he bothered to visit a few local retailers here in Canberra—we could certainly do with a few more Liberal dollars spent locally—he might discover that most department or chain stores offer between $3 and $7 off the recommended retail price. Parallel importing, which will place at risk thousands of jobs, will not improve the current state of record prices.

But the major concern to Australian small businesses is the risk to jobs and job security resulting from the proposed changes. Approximately 95 per cent of recordings currently sold in Australia are locally manufactured, and the job security of thousands of people presently employed in this thriving local industry will be placed at risk.

Senator Alston is also content to place at risk hundreds of jobs in the freight industry. CD distribution is one of the biggest users of freight in Australia, and job security in the freight industry will be at risk if parallel importing is allowed.

I question whether Senator Alston is genuinely committed to maintaining a vibrant and world renowned music industry. If the minister has his way, artists like Savage Garden, You Am I, Hoodoo Gurus and countless others would not exist. Yet again Senator Alston demonstrates complete insensitivity and a total lack of understanding of the implications that parallel importing will have on Australian jobs and Australian culture.

I am gravely concerned that the minister, who is also responsible for all matters relating to intellectual property in the area of new media, is taking this position with respect to parallel importing, with its impact on copyright and neighbouring rights. This is of major concern and has no doubt contributed to the lack of confidence that this sector has in Senator Alston as the minister for these matters.