Page 2077 - Week 08 - Tuesday, 5 June 1990
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this percentage and it is most important that that matter be dealt with. It should be explained why we have suddenly adopted 40 per cent, when the understanding certainly has been that a tax would start - and I emphasise "start" - at 20 per cent. That is my first concern.
My second concern is that I have seen a press release issued today by the Adult Video Industry Association which stated that it would be challenging the ability of the Territory to tax this particular industry in this way. I have some concerns about that, because it could bring not only the Government into disrepute - which I do not have a great deal of concern about - but also the Assembly as a whole into further disrepute, if such a course of action were to have any chance of succeeding. I ask the Attorney-General to assure the house that such a challenge has absolutely no chance of succeeding, that he has had enough time to take appropriate legal advice, and that there is absolutely no risk at all.
I would request him to do that to the extent of putting his own position on the line, because I think it is a serious matter if taxation is brought into disrepute. If at this stage we do not know for sure that we are on solid, legal ground and if we do not have the appropriate advice, then it is incumbent upon us to adjourn the debate on the detail stage until Thursday. I foreshadow that I will be moving a motion to that effect.
MS MAHER (10.06): I wish to speak in support of the Bill and say that we did not introduce these measures until the legislation controlling and regulating the industry, especially the availability of X-rated videos, had been put in place. No longer will such videos be available at local shopping centres or near schools. We will move outlets for X-rated videos from residential areas.
The introduction of a business franchise in relation to X-rated videos should be seen in the light of taxing a significant, already legal, ACT industry with minimal impact to ACT residents. I know from my colleague's introductory speech that the ad valorem licence fee will be 40 per cent, rather than the 20 per cent proposed by the former Labor Government when it tried to introduce similar legislation last year.
This is a significant measure when considering the Territory's current financial circumstances. In actual fact the impact on ACT residents will be a productive one. The obvious benefit in taxing the industry in this fashion is that it is compatible with existing tax legislation, and as the franchise fee is imposed at the wholesale level, which is the same level as for sales tax, minimal additional records will be required to be kept by the industry. It is also worth noting that, as two taxation bodies will be auditing the same records, a more than satisfactory level of compliance should be ensured.
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