Page 2797 - Week 13 - Tuesday, 21 November 1989
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that is laudable. It has created the Adult Video Industry Association, its own body. It has developed a code of ethics, and it has asked all of its members to follow that code of ethics. I think you should acknowledge that it has made those efforts. I am satisfied that the industry would be keen to comply with the additional regulation and the franchise system that is proposed and that together it and the commissioner for revenue could work out an efficient and effective way of administering the new tax.
But I would also like to point out, Mr Speaker, that the commissioner for ACT revenue has to ensure that a number of conditions are satisfied before granting a licence in this area. The criteria that the commissioner would be looking at include, for instance, the fact that only properly classified material will be sold under the licence. There is no suggestion here that there is any lessening of the classification standards or any opening of the floodgates for unclassified material. We require that properly classified material is sold under the licence, that the material that is sold has, to the applicant's knowledge, not been produced in breach of copyright, and that purchases will be made from licensed wholesalers or suppliers operating within the laws of their place of business.
I have also had a look, Mr Speaker, at the obligations of the commissioner for ACT revenue in determining whether an applicant is a fit person to be licensed under the Act. In determining whether a person is a fit and proper person, the commissioner will be taking into consideration matters such as: whether the applicant has contravened relevant ACT laws, such as the Taxation (Administration) Act, the Publications Control Act, when passed, this "X" video Act, and the Commonwealth Classification of Publications Ordinance; also, whether there have been convictions by the applicant under any law, in particular the nature, seriousness and penalty involved in any such breach; whether the applicant will give undertakings in respect of the proper classification of material sold under the licence; whether the applicant will give undertakings not to deal knowingly in material produced in contravention of the Copyright Act or in breach of the laws of the manufacturer's place of business; and whether the applicant will give undertakings in respect of the observance of industry standards in the pricing of material in dealings with related businesses so as not to avoid paying tax.
Also, Mr Speaker, the commissioner will have regard to whether the applicant is an undischarged bankrupt or, in the case of a body corporate, is being wound up. That is for the simple reason that we need to be fairly sure that the applicant will be in a position to pay the tax. If it is in that sort of financial difficulty, while it may keep trading, it may be able to argue that it cannot actually afford to pay the tax. They are the issues to which the commissioner would be giving consideration. I put it to you that all of that represents a considerable increase in the regulation of this industry.
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