H.—44a

96. Exhibitors are also required to include a notification of the Censor's decision—i.e., whether approved for universal exhibition or recommended for adult audiences —in any newspaper advertisement regarding the picture, and also to provide notices to the same effect in the theatre lobby, at the place where tickets are sold. There is no restriction on the admission of children to "A" Certificate pictures. A third certificate, which is very seldom used, restricts the exhibition to certain specified classes of persons. 97. Provision is made in the regulations for an appeal from the Censor's decision to a Board of three persons appointed by the Minister. There is no instruction to this effect in the regulations, but the practice has been to appoint one member nominated by the film industry and one by social organizations. For the third member some suitable person is selected to act as chairman. The appellant is required to deposit a fee to cover the cost of the appeal, but this is returned if his appeal is upheld. Part II. —Registration. 98. This Part provides for the registration of all films before exhibition. This is necessary for the effective operation of the "quota" provisions of the Act. The Censor is also the registrar, and the forms have been arranged so that the butt of the Censor's certificate becomes the register, and no additional work is involved. Part 111. —Storage, Transport, and Projection or Films. 99. This Part provides for the making of regulations controlling the industry in the interests of public safety. The regulations previously in force under the Explosive and Dangerous Goods Amendment Act, 1920, are repealed, and the Inspectors under that Act are given similar powers under the Cinematograph Films Act. The necessary regulations, which are a modification of those previously in force, have since been made. Part IV.—Quota oe British Films. 100. The world position in the film industry leading up to the introduction of the quota legislation has been explained in paragraphs 2 to 5 above. The early post-war efforts of the British film-producers had been far from successful, mainly owing to the lack of the capital necessary for the production of films on the scale which had been set by the Americans. Film-production is recognized as being a speculative industry, and there was little hope that British investors would provide the large Sums required for the reconstruction of the industry so long as the conditions then existing continued. The commercial aspect of the situation was not the only or even the principal consideration. A film industry under American dominance to the extent then existing would place before the British public largely or mainly American scenes, American life and customs, and American ideals. Even though a proportion of the American films might have British settings, there are certain phases of national life and character which cannot be adequately reproduced by foreigners, and it was the desire to have expression given to the national outlook which largely influenced the decision. 101. The New Zealand Act follows the general lines of the British Cinematograph Films Act, but differs from it in several important provisions affecting the British " quota." (1) The Act applies only to "long" or "feature" films, and the quota is determined by the number and not by the footage of British and foreign films. It was thought that the tendency would be for British short films to be used' in unit programmes with British features, and this has proved to be the case in practice. The elimination of the length factor has greatly simplified the quota calculation. (2) Provision was made that the Minister might exempt renters from their liability to acquire British films if the exhibitors were not thereby prejudiced in obtaining the necessary British films to comply with the quota requirements. When the Act was passed the principal British producers were represented in New Zealand by renting companies with local capital not connected with the American interests. It was considered that if this arrangement continued it would be more satisfactory than the distribution of the British films amongst the American renters, whose principal interest would be the success of the American product. Provision was made (see para. 105 below) for special rejection rights in the case of "block" booking where British films were not supplied. (3) The section of the Act —32—providing for the exhibitors quota was not made mandatory. When the Act was introduced the exhibitors offered a " gentleman's agreement" that they would, so long as films of reasonable exhibition-value were available, screen a percentage of British films exceeding that prescribed by the Act. Provision was therefore made that the section should not be operative unless brought into force by Order in Council. The agreement has been faithfully kept by the exhibitors, and inquiries made recently showed that only in a few isolated cases had the proportion of British pictures been less than 10 per cent., while the average was nearly 20 per cent. Several instances occurred in the cities where a number of theatres are under one control where individual theatres had exhibited less than the required percentage, but this resulted from the exhibitor's policy of screening British pictures in the better-class theatres, or in theatres reserved for British films. > 102. The arrangement outlined above is a very flexible one, and has operated satisfactorily in practice. Although there is at present no legal obligation 'on the exhibitor, and the renter is exempted from his obligations where this is desired, the system results in the exhibition of considerably more than the prescribed percentage of British films without any hardship or friction. Only such British films as are likely to be successful are imported, and most of these are screened in the better-class theatres, so that the maximum of revenue is obtained for the British industry. It should also be noted that the Act can be brought into full operation at any time should the conditions change so as to warrant this action. Both exhibitor and renter are required to keep records which enable the Inspectors to ascertain the position at any time, and up to the present it has been found a sufficient corrective to call official attention to any cases where the spirit of the Act is not being complied with. Part V. —Restrictions with respect to Film Contracts. 103. The British Act provided that " blind booking " (see para. 24) should be illegal, and restricted " block booking " (see para. 20) to the extent that contracts might not be made for screening films at a date later than six months from the date of thfe contract. The purpose of these provisions was to prevent the making of long-term contracts which would prevent or render difficult the screening of British films by the exhibitor. The conditions existing in New Zealand, where we have a very scattered territory served mainly from one distributing-centre (Wellington), made it very doubtful whether similar provisions would be workable. . . 104. The exhibitor represented that fairly long-term contracts were desirable because they ensured continuity of supply, while the renters pointed out that such contracts could be arranged so that the films were distributed on " circuit," and the freight costs to the exhibitor (who pays all transport charges) kept to the minimum. It was considered advisable, however, to place some limitation on film contracts, and the Act provides that, except in special cases where completion within eighteen months is provided for, the supply shall commence not later than nine months after the contract is signed, and shall not extend over a period exceeding twelve months. 105. This Part of the Act also gives exhibitors two rights of rejection. The first of these is m relief of ' blind booking " and enables the exhibitor to reject up to 5 per cent, of the films contracted for, where the films are not named or adequately described. The second rejection right applies to all long-term contracts (covering a period of supply exceeding twenty weeks) which do not provide for the supply of the proportion of British films prescribed for the year to which the contract applies. This provision is complementary to the section—29 (3) —which permits the Minister to exempt any renter from the obligation to " acquire " British films. The effect is that the renter is not obliged to obtain and rent British films, but, if he does not, the exhibitor with whom he makes a contract may reject a percentage of foreign films contracted for equal to the British quota percentage for the year.

4—H. 44A.

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