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Legislative Assembly for the ACT: 1996 Week 11 Hansard (26 September) . . Page.. 3639 ..

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has been defeated by the decision of the High Court in the Capital Duplicators case. Many provisions of that Act relating to the failed business franchise fee are now redundant.

The licensing of X film distribution has since become a purely regulatory, rather revenue raising, function and the licensing of X videos is now administered by me as Attorney-General rather than the Treasurer. To reflect this shift in focus, this Bill repeals the Business Franchise ("X" Videos) Act and inserts provisions for the licensing of X film distribution into the Classification Enforcement Act.

The new licensing scheme has many similarities with current X videos scheme and, indeed, it is contemplated that current X video licences will transfer across to the new legislation. The new scheme will be slightly wider in focus however, as it provides for the licensing of X films rather than just X videos. The current term "X video" refers only to video tapes and video discs that are classified X. The term "X film" picks up the full range of formats for film including for example, CD Rom and other new technologies, or even old formats such as Super 8.

There is also no longer a distinction to be drawn between the wholesale and retail sale of X films. Licences under the new Part VI of the Classification Enforcement Act will simply refer to the act of selling X films.

The new Part VI of the Classification Enforcement Act will also include inspection provisions specifically for the X film industry rather than relying on the general provisions for inspection by officers under the Taxation (Administration) Act 1987. More specifically targeted inspections should lead to a greater level of understanding by licensees of their obligations under the Classification Enforcement Act and a resulting improvement in levels of compliance with the requirements of that Act by distributors of X films.

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