Page 2796 - Week 13 - Tuesday, 21 November 1989
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MR SPEAKER: Order!
MS FOLLETT: The taxing of an industry in no way legitimises it any more than does the taxing of the tobacco industry; taxing of gambling, which we are heavily into in the ACT, and I have not heard any of you argue against that; taxing of petrol or any number of industries in our community which many people find distasteful. It no way implies that by taxing them a government supports that industry.
Mr Speaker, the Adult Video Industry Association has been fully consulted on these matters since the announcement of the proposed business franchise in the initial budget statement in July. I strongly object to the comments of Mr Collaery, I think it was, that there had not been adequate consultation. There has been.
The industry has put forward some alternative licensing and taxation proposals, but the Government has maintained its preference for the scheme that we have put forward. I think it is fair to say that the video industry does not wholeheartedly welcome this tax. You would not expect it to do so. I notice Mr Collaery and Mrs Nolan are enjoying a wonderful joke across there. I am addressing the points, Mr Speaker, specifically made by Mr Collaery, and I would be glad if he would do me the courtesy of listening. I think that the video industry does not welcome this tax. Why would it? It has been operating quite legally, quite legitimately, without paying tax.
Mr Speaker, we are supporting the maintenance of the scheme as put forward and we are sticking to that, even after consultation with the industry because, first of all, franchise schemes are a recognised method of taxing industry at the State and territory level. So we are using a method that has been used before. There are already franchising schemes in force in the ACT, in the areas of tobacco and petroleum. They have proved to be effective revenue raisers.
The taxing of the industry, in the fashion that we are putting forward, will ensure compatibility with existing tax legislation and, again, it makes for ease of administration. Imposing the franchise fee at the wholesale level will mean that the tax will be applied at the same level as for sales tax. That has a number of advantages. For instance, it means minimum additional records will be required to be kept by the industry, and the fact that two taxation bodies would be auditing the same records should ensure that there is a good level of compliance.
During the discussions on this Bill, the Government and the commissioner for ACT revenue have continued to stress to the industry the need for proper regulation and control. It should be said, Mr Speaker, that the industry has made some moves recently to improve its own image, and I think
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