Page 2076 - Week 08 - Tuesday, 5 June 1990

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MR DUBY (Minister for Finance and Urban Services) (10.01): The Government supports the motion to suspend standing orders, as moved by Mr Moore. It is clear that these matters should be discussed as one, for various administrative and time-saving reasons.

Question resolved in the affirmative.

BUSINESS FRANCHISE ("X" VIDEOS) BILL 1990

[COGNATE BILL:

TAXATION (ADMINISTRATION) (AMENDMENT) BILL (NO. 3) 1990]

Debate resumed.

MR MOORE (10.02): I made a rather long speech when the Labor Party introduced a similar Bill, and I think that, as far as the in principle stage goes, those arguments still apply. I think that it is appropriate for us to see this as a method, in principle, of taxing the X-rated video industry. Since restrictions have been put on the industry by the previous Bill, I believe that it is now appropriate for us to take action so that this business, like all businesses within the ACT, contributes to our funds. It is appropriate that a method be found to facilitate that.

I have a number of concerns that I wish to raise now and I hope I will receive a response to them, as indeed I had responses to some of my earlier concerns. I raise the first of those concerns - the 40 per cent - now, rather than at the detail stage so that I can get a response in terms of the principle.

I am concerned that the initial hit of 40 per cent may be too great for the industry to wear. Certainly, I have had approaches that it will, in effect, drive the X-rated video or the pornographic industry underground and then we will have a real concern about the emergence of violent erotica and other forms of erotica that are already banned by the Chief Censor, as opposed to the non-violent erotica that is available.

I have made it quite clear in a series of speeches - as have all members - that I am opposed to movies that are not categorised by the censor. In introducing our restrictions, we have to be careful that we do not encourage the industry to go underground and thus bring about an increase in violent erotica. We are all very concerned about that.

It may well be that in a short while we will see that the industry can wear, stage by stage, a 40 per cent tax, but I think that in the initial instance we should start at a figure of about 20 per cent. I also think it is important to note that there has been a very short discussion time on


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