Minutes of evidence taken before the Departmental Committee on Cinematograph Films (1936)

APPENDICES 29 5 May, 1936.] [Continued. the public generally, or their general quality is not sufficient to warrant their being taken into account for quota purposes ; (3) Australian films, the production of which was commenced before the 1st January, 1934. In New South Wales the Act may be applied to any specified Australian film of any of the excepted classes provided that the film is not less than 3,000 ft. in length. In Victoria the Act may be applied to any specified Australian film of any of the excepted classes except films depicting news and current events or being commercial advertisements, subject to the proviso that quotas may not be satisfied by single reel films to a greater extent than 25 per cent. Advisory Authority. — The New South Wales Act provides for the appointment by the Governor of a Films Advisory Committee of three persons having no pecuniary interest in any branch of the firm industry. Members, unless employed by the State of New South Wales, are entitled to receive fees for their services. The Victoria Act provides for the appointment by the Governor of a Films Adviser remunerated by fees. Distributors' Quota. — The prescribed quotas in both Acts are : — Per cent. In the first year ... ... 5 In the second year ... ... 1\ In the third year ... ... 10 In the fourth year ... ... 12^ In the fifth year ... .., 15 The quota is calculated upon the numbers, not footages, of the Australian and foreign films acquired, i.e., distributors are not required to provide quota against British films. Where the prescribed percentage is not a whole number any fraction exceeding a half counts as a whole number. The statutory quotas may be modified or waived by the Minister if he is satisfied that compliance by an individual distributor or by distributors generally is not commercially practicable by reasons of the quantity, character or exhibition value of Australian films available, or the excessive cost of such films in relation to British or foreign films. Small renters, each of whom acquires not more than six quota films in a year, may, with the consent of the Minister, combine for quota purposes. Distributors are required to furnish to the Minister statements in writing showing the number of quota films which they propose to acquire and distribute " during the next succeeding year." The maximum penalty for non-compliance, unless due to reasons beyond the distributor's control, is £100, and if the Court is of opinion that the offence was committed with the intent to defeat the purposes of the Act it may suspend or cancel the distributor's registration. Exhibitors' Quota. — The prescribed quotas under both Acts are : — Per cent. In the first year ... ... 4 In the second year ... ... 5 In the third year 7$ In the fourth year ... ... 10 In the fifth year 12^ Tn New South Wales the quota is calculated upon the total number of films (Australian, British and foreign) exhibited multiplied by the number of times of exhibition. In Victoria, however, the quota is calculated upon the total number of Australian and foreign films exhibited similarly multiplied. Accordingly the New South Wales exhibitor is required to exhibit Australian films as quota against British as well as foreign films, while in Victoria he is required to find quota against foreign films only. There are provisions, similar to those relating to the distributors' quota, in respect of the counting of fractions, the modifications either individually or generally of the quota, returns and penalties for noncompliance. Under both Acts an exhibitor, in order to comply with the quota, may, without incurring any liability for breach of contract, reject any foreign films which he has contracted to exhibit up to the number of the Australian films which he is required to exhibit in any year. In addition the Victoria Act provides : — (1) that a dispute as to the price to be paid for an Australian film shall be referred by the Minister to the arbitration of a committee of three, consisting of the Under-Secretary (Chairman) and two other persons nominated respectively by the parties to the dispute. The Committee's decision is final; (2) the exhibitor may, without incurring any liability for breach of contract, reject up to 25 per cent, of the number of foreign films which he has contracted to take. Notice of objection must be given to the distributor concerned within specified time limits. Under both Acts any agreement which requires an exhibitor to hire British or foreign films as a condition of hiring an Australian quota film is declared void. Also, any Australian film .which has been approved as a quota film in any other State is, unless otherwise directed, deemed to be an Australian film for the purposes of each Act. (b) New Zealand. — In New Zealand a Cinematograph Films Act was passed in 1928 to assist the distribution of British films in that Dominion. It did not purport to assist the establishment of a local film producing industry. Accordingly it differs in some respects from the Imperial Act of 1927 and also deals with matters which are outside the scope of that Act. It does not prohibit blind booking or so strictly limit advance booking, but it gives exhibitors certain rights to reject films without penalties for breach of contract. Provision is made for renters' and exhibitors' quotas. The quotas are based on numbers, not footage, of long films only. Renters may be exempted from the obligation to acquire British films if exhibitors are not prejudiced thereby and the exhibitors' quota is not mandatory. The Act also deals with censorship and safety regulations in connection with the storage, transport and production of films. The New Zealand Cinematograph Films Amendment Act, 1934 provides, among other things, that a standard form of contract between renters and exhibitors shall be prescribed or approved by the Minister and increases exhibitors' rights to reject films up to 25 per cent, in respect of all contracts for more than four pictures. The Act also imposes restrictions on the hire of films by exhibitors. It is made an offence for an exhibitor to hire more films than are necessary for his theatres. Rejection rights must be exercised within specified time limits. Renters are required on request to rent to any exhibitor on the usual terms and conditions any films rejected by or not already booked to another exhibitor in the same area. (c) Southern Rhodesia. — In Southern Rhodesia the Entertainments Control and Censorship Act of 1932 deals with safety in theatres and cinemas and the censorship of films and film advertising, and amongst other things, also imposes a quota of British films on exhibitors. The definition of British films corresponds with that in Section 27 (3) of the Cinematograph Films Act, 1927, the quota applies bo long and all films and is calculated in precisely the same way as the exhibitors' quota in Great Britain and exhibitors are required to keep records and furnish returns. The quota was fixed at 15 per cent, for the year ended 30th May, 1933, and for the five succeeding years at such proportion not being less than 15 per cent, as the Governor might proscribe. For each of the succeeding three years the quota has been continued at 15 per cent. In 1935 an amending Act provided that the quota provisions <>l the principal Act should not apply to silent films.