Page 2082 - Week 08 - Tuesday, 5 June 1990
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that most of what the industry says can be reversed and there we would have the truth. It is fairly easy for a couple of accountants and solicitors to restructure companies to fix the problem of a wholesale tax.
If it were a retail tax, that would be a different matter. It is very hard to lower your retail tax because then you have to sell the things for less money and you do not make as much money. So once again the 40 per cent is really a minuscule amount for an industry that indicates that it makes a great deal of money from this particular business they are involved in. I call on all members of the Assembly, in light of the concerns by Canberrans as to the closing of hospitals and the suggested closing of 15 to 20 schools, to reject the argument that this would solve the problems or, in the general words of Mr Kaine, they can leave the Territory.
MR DUBY (Minister for Finance and Urban Services) (10.27): First of all, the Government, naturally, is opposed to this amendment by Mr Stevenson. I think that one thing that Mr Stevenson has forgotten, in his last-ditch attempt - - -
Mr Stevenson: Why do you think it is the last attempt?
Mr Kaine: He said "last-ditch attempt".
MR DUBY: Yes. His last-ditch attempt to effectively ban X-rated material here in the ACT would be to impose a 400 per cent tax on it. Mr Stevenson seems to forget that the sale, distribution and hire of X-rated material here in the ACT is a perfectly legal and legitimate business. With respect to the industry, I can appreciate the howls of complaints we have heard from its representatives about the level of tax which we are imposing from zero. Frankly, we have looked at the level of revenue which we may be able to extract from the industry, the level of taxation we may be able to impose upon them, and we are of the opinion that, if we were to impose any more, if we can believe what people have told us in consultation, it may well impose such restrictions upon the industry that it would go out of business.
Mr Stevenson: I will take that chance.
MR DUBY: And, of course, this is exactly what Mr Stevenson wants to do. I should point out again that it is a legal and legitimate business here in the ACT and, like it or not, we are not in the business of putting business out of business. So, clearly, the Government will oppose this amendment.
Whilst I am on my feet and addressing this issue, I would also for the record refer to some other items that have been raised in this debate. Mr Moore raised the fact that there may be some constitutional difficulties in the Bill. Mr Speaker, the Law Office has categorically assured the Government that the ACT has all necessary legal and
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