Page 2252 - Week 08 - Thursday, 7 June 1990
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supports the removal of X-rated videos from the ACT market is that the impact on children of such videos is much greater than it is on adults ... members would be well aware that, with the technological achievements of our age and in particular the accessibility of video machines and the understanding of video machines by very young children, it is not difficult to envisage circumstances where young children - even very young children - could obtain access to such material.
X-rated videos degrade women ... the Chief Minister and her colleagues are very seriously out of step in this legislation.
Mr Humphries continued:
Clearly, by passing this tax, we are legitimising this industry. The proof of that fact, Minister, is that if you go out into the street and you ask 100 different people, "Would you care to have taxation on you increased?", they will of course say, "No". In this case you ask the principals of the pornography industry in this town, "Do you want this tax imposed on you?", and they say, "Yes". Now, why, Minister? Why do they say they want this taxation on them? For one reason only: it legitimises the industry; it legitimises their activities. Clearly, that is the reason why they support this tax and that is the reason why we oppose this tax.
I have little doubt that Mr Humphries in particular, and perhaps some other members, will jump at the opportunity and say, "Ah, but they oppose the tax. They said they did not want the tax. I have a copy of a media statement here saying that they disagreed with it". The tax that was introduced by the Follett Government was said to raise $5m. The tax that has been introduced by the Alliance Government is said to raise $4m. So the truth of the matter is that the video industry is using a very well known sales and marketing tactic. Supposing you say to someone, "How much is it?", and they say, "$1,000", and you say, "You will have to do better than that; you will probably drop your price". If they say, "That is okay", you think, "And then of course there is an extra 20 per cent delivery fee on top of it". The video industry does not disagree with this fact, as is shown. (Extension of time granted)
So the truth of the matter is that the industry people do not disagree with this tax; it is purely and simply an opportunity to try to cement it at a very low 40 per cent. Why is 40 per cent very low? It is very low because it is on the wholesale side of things. If it were on the retail side and they reduced the retail price, then they would know that they would not make the money. It is very easy to set up companies to reduce the wholesale tax; they are probably hard at it at the moment.
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