Book firm in protest over publishers

20 April 2006 07:02

A Norfolk book firm is taking a stand against what it sees as anti-competitive conduct by some UK publishers.

Bertram Group, based in Norwich, has made a complaint to the Office of Fair Trading after attempts by publishers to control the discounts it offers customers.

The wholesaler wants to extend to public libraries the discounts it now offers to bookshops, but it says a number of UK publishers are trying to keep library book prices at historically higher levels than for other outlets.

It says it has also been discouraged from supplying its sister library supply business and was threatened with having its wholesale terms cut and promotional support withdrawn.

These demands, the firm says, are anti-competitive in seeking to maintain different terms for different sales channels and to define which ones it should and should not supply.

Last month the Publishers Association launched a high- profile campaign for library book stocks to be increased by 50pc to restore them to the 125 million level of 10 years ago.

Terry Reilly, chief executive of Bertrams, said the association was supportive of what it was trying to do.

“Given the declining state of library book stocks we're amazed at the reaction of these few publishers. We're not really sure what they're aiming to achieve as many progressive publishers and the Publishers Association are supportive of what we're trying to do.

“We know the current industry terms structure is irrational, but threatening to cut our terms as a punishment is wrong when publishers already give bigger discounts to some retailers than we ourselves receive, even though we're a wholesaler.

“It's hardly our fault if publishers have been too generous with supermarket discounts, and we'll always do whatever we can to offer the best prices to our customers, be they libraries or retailers.”

Until the abolition of the Net Book Agreement in the 1990s, libraries were offered up to 10pc off the recommended retail price.

That has since risen to between 30pc and 35pc, while major bookselling chains get 45-55pc and supermarkets 55-60pc off because of the high volume of their sales.

Lorna Payne, development officer for Norfolk County Council's library and information service, said they would welcome any further discounts.

The council spends about £1.5m a year on stock for its 46 libraries and 17 mobile libraries.

“What Bertrams seem to be doing is trying to push the boundary a bit further with the publishers, to get them to pass even more discounts on to the library market. We would welcome that as customers. Obviously we will be watching it with interest.”

She added: “We feel we are getting the best terms that we can at the moment, but the more things change the better the terms could get.”

Chris Lane, spokesman for Suffolk County Council, said its library service spent £1.1m on books each year for 44 libraries.

He added: “We would welcome any move by the Bertram Group, or any other supplier, that might help us get better discounts and so more books for taxpayers' money.”

The Office of Fair Trading can punish for anti-competitive behaviour, with the maximum fine being up to 10pc of worldwide sales for the last business year.

Spokesman Roger Hislop confirmed it had received a complaint from the Bertram Group and said the next stage would be to look at whether there was enough evidence to launch an investigation.

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