Mahuta NanaiaFILMS VIDEOS AND PUBLICATIONS CLASSIFICATION (COMMERCIAL VIDEO ON-DEMAND) AMENDMENT BILLSecond ReadingHon NANAIA MAHUTA (Minister for Māori Development) on behalf of the Minister of Internal Affairs: I move That the Films Videos and Publications Classification (Commercial Video on-Demand) Amendment Bill be now read a second time. The bill amends the Films Videos and Publications Classification Act 1993 also known as the Classification Act. This Act establishes New Zealand's classification framework which has an objective of protecting New Zealanders from harm. Part of this includes setting requirements to make sure that DVDs and films shown at cinemas show suitable ratings and warnings. This in turn enables people to make informed choices about what they want to watch. If you wanted to buy a newly released DVD or a family classic to watch with the kids over the weekend you can make that informed choice. You pick up the DVD. On the front is a label that reads G"; you know then that it's safe and that it's fine for the whole family to watch. Likewise if you see a label that reads "R16" or "R18" with warnings for violence sex scenes or offensive language you know that it wouldn't be a good idea to watch that movie with your nine-year-old. That all makes sense but our rating and labelling regime is out of date. It is pre-internet. These days it's not so much about buying DVDs because streaming services provide a lot of content that we watch. I know that the Minister of Internal Affairs has received a lot of letters and emails from members of the public who have concerns about their children watching content and movies that are not suitable for their age causing them psychological harm and influencing their perceptions of reality and the real world. The worst example that we've had of that is the show 13 Reasons Why. I'm not sure who's watched it in the House. That did harm to young people here and overseas in part because it originally had no rating and young people did not know what they were getting into and what they were about to watch. That is what this bill is designed to address. It's about reducing harm. It's about bringing our law into the 21st century and having consistency across our ratings and descriptions no matter how shows are viewed. This bill does not aim to prevent people from seeing or viewing movies they are free to watch but just like at the movies and DVDs as well it will require streaming services to consistently and clearly display appropriate age ratings and warnings. I say "consistently" because at the moment a movie can have a completely different rating and warning depending on which service you are viewing it on. For example the film Suicide Squad has an official classification of R13 with warnings for violence horror and cruelty. It is rated as 16-plus on Netflix with no warnings; 16V on Lightbox—the "V" stands for violence—and M on Google Play with no warnings. In addition to these inconsistencies the ratings and warnings on these video on-demand services can be nondescript hard to find and hard to read. This shouldn't be the case. This information is important. So the technical details like the form and look of these labels which will be prescribed in regulations will be developed with providers and regulators. They've got to be workable and effective and work across the different platforms that people use—smart TVs laptops mobile phones and tablets. The bill will make it so that the shows and movies you see on Netflix YouTube iTunes and other listed providers display consistent labels in a consistent manner. It will do so by requiring commercial video on-demand providers that are listed in the schedule to comply with the new labelling requirements set out in new Part A of the bill. The labels will have a rating that recommends a suitable audience for the show and a warning for any mature themes like violence sex and suicide. Providers listed in new Schedule 4 can comply by following the current process for films in cinemas or on DVD. Alternatively the bill enables listed providers to rate and label their own content by using a self-rating system approved by the chief censor. It is important to note that the new labelling requirements only apply to providers listed in the schedule to the Act. This reflects that these services are accessed by a number of New Zealand consumers and are household names. The schedule can be updated when necessary via Order in Council in consideration of specific criteria. I want to emphasise to the House that the chief censor will still be able to use call-in powers under the Classification Act. So if there are concerns around content provided by a service that is not listed in the schedule then the chief censor can call it in for classification.This bill will extend and modify legislation that was designed in the pre-internet era. I understand this is challenging and I would like to thank the Governance and Administration Committee for its consideration of the bill. I'd also like to thank the 19 submitters on the bill particularly those who made time to make oral submissions to the committee. It's so important. The committee has recommended amendments to the bill in response to some of the issues raised in submissions and to improve the workability of the bill and I thank them for that. Of important note is a recommendation for the addition of a purpose statement in Part 3 of the new labelling requirements. The new statement emphasises the purpose for this bill which is to reduce the risk of harm to children and vulnerable consumers from viewing inappropriate content. This in line with the objectives of the Classification Act is important. It also delivers on the Government's obligations under the United Nations Convention on the Rights of the Child specifically the obligation to develop guidelines to protect children from information and material that can be injurious to their wellbeing.The majority of recommendations made by the committee provide clarity on how the self-rating process will work in practise and adapt relevant sections of the Classification Act to accommodate the new labelling requirements. The Government supports these recommendations. I give notice of an intention to table a Supplementary Order Paper (SOP) at the committee of the whole House stage. The SOP will amend the commencement provisions in the bill to delay the implementation date for the new labelling requirements. This should give listed providers enough time to update systems make arrangements and discuss terms and conditions with a classification office. It will also allow time for technical regulations for the new labelling regime to be developed carefully with detailed consultation with providers that will be regulated. The Government is working with industry to develop a framework for how the costs of the new regime and role of the Classification Office will be met. Options under consideration include a levy which is not currently authorised by the regulation-making powers in the Classification Act. Therefore the SOP will amend the bill to include the creation of a levy-setting power to charge commercial video on-demand providers amongst the purposes for which the regulations can be made. The Government envisages that the legislation be enacted before the House rises in August. This will allow the regime to be implemented as early as possible once the important work of ironing out the technical details is completed. It will help New Zealanders make informed viewing decisions when they are choosing what to watch on these services. It also provides for an efficient compliance regime so there should be no delays in the availability of content. Thank you again to the Governance and Administration Committee and to the officials for their efforts on the bill. I commend the bill to the House."