Former ACCC chairman Alan Fels has reproached the Rudd Government, saying that by walking away from book import reform the Government has taken explicit ownership of the import monopoly law and the the prices that go with it. 

Fels made the comments following the Australian Government's decision Wednesday not to change current book importation laws to allow cheaper products into the market.

Retailers including Dymocks, Kmart, Woolworths, Coles and various independents have raged against the decision, which has also refused a compromise proposal put forward by Competition Minister, Craig Emerson.

Fels told Inside Retailing's subscriber only digital weekly edition that Australian book prices are on average 35 per cent more expensive than identical editions in the US, and could sometimes cost up to 50 per cent more.

"Our booksellers are forced to pay through the nose because of this import monopoly," he said. "The decision is certainly not in the interest of consumers or retailers. It could have been so easy to strike a compromise."

Retail representative, the Coalition for Cheaper Books has said the Government's anti-change policy has resulted in a wasted opportunity to reform the sector, which could have put cheaper books on the shelves.

"The federal government has said that it is okay for consumers to buy cheaper books from the internet, but not Australian bookshops," Dymocks CEO Don Grover said.

"This is unsustainable. It's only a matter of time before jobs are lost."

Under current laws, the import of books can be prevented if Australian producers have published the same book within 30 days of international release.

Fiona Stager, owner of Brisbane's Avid Reader store, told The Australian Newspaper that it breaks her heart to hear people will purchase on the internet through sites like Amazon because a title is not yet in stock.

The Government's reasoning behind the decision was that changing the regulations governing book imports is unlikely to have any material effect on the availability of books in Australia.

It said the introduction of technology such as e-books the market would reform itself, with further innovations and price reductions expected in the market.

For exclusive coverage on the the book reforms debate and further comment from Alan Fels, see our subscriber only issue of Inside Retailing.