COMPULSION DROPPED

Sun (Auckland), Volume II, Issue 459, 14 September 1928, Page 12

COMPULSION DROPPED

ALTERATIONS IN FILM LEGISLATION MORE EQUITABLE TAXATION (THE SUN'S Parliamentary Reporter) WELLINGTON, To-day. The alterations made in the Cinematograph Films Bill, returned by the special investigating committee to the House of Representatives yesterday, tend generally to relieve exhibitors and rentors from the irksome compulsory clauses. Moreover, taxation, as originally proposed, has been substantially eased.

The alterations cover three main points, taxation, quota and the right of rejection. The original taxation proposals provided for 5 per cent, tax on New Zealand films, 7£ per cent, on British films and 12£ per cent, on foreign films. These proposals have now been altered to provide for an artificial taxable margin, based on the assumption that 12£ per cent, of the gross proceeds of the film sales in all cases is a reasonable taxable profit. This margin therefore will be taxed on the ordinary basis, the difference being that, whereas the original proposal would have increased taxation on films by £39,000, which the committee decided would be inequitable, the increase will now ibe not more than £7,000, and possibly as little as £2,000. As regards quotas, the original quotas of the British and foreign films demanded are unchanged, but their application has now been made voluntary with the proviso that they may be made compulsory by Order-in-Council if the exhibitors do not fulfill their undertaking, which they gladly gave, to assist British films by observing the quota. Rentors have to give the same undertaking, but the % Minister, if satisfied with their advance returns of quota films, may gazette their exemption from the compulsory provisions. It is provided that exhibitors may be released from the obligation of'sereening British films if those available happen to be below the stipulated artistic or photographic standards.

The amended Bill will come up early next week.