Cinemas hit out at parallel imports

By KARYN SCHERER

Provincial cinemas are blaming parallel importing for attendances falling by up to a third last year.

Figures compiled by the Motion Picture Exhibitors' Association show box office takings at provincial cinemas fell by at least 11 per cent, and in some cases up to 35 per cent, last year.

The figures compare with a national drop in box office takings of 11 per cent. In Australia, revenue was down 4 per cent, while in the United States and Britain it increased by 2 per cent.

Cinema owners say competition from parallel-imported videos and DVDs is largely to blame, and hope the figures will persuade the Government to keep its election promise to ban parallel importing of new-release books, videos, CDs and software for up to two years.

The ban was expected to be introduced this year, but was delayed when submissions to the Ministry for Economic Development showed strong opposition to such a move.

Commerce Minister Paul Swain confirmed that officials were considering separate measures for each sector.

"I think it's fair to say we have consulted widely and there is a conflict of views as to whether the policy objective that was first stated is met by a parallel-importing ban," he told the Business Herald.

Labour is concerned that it has not been able to establish a strong link between creative industry profits and local investment.

The Government intends to clarify its policy before the end of the year but its assurances have not come in time to prevent a scolding from the United States.

In its latest annual review of its trading partners, the US last week named New Zealand as one of more than 50 countries that are not doing enough to protect copyrighted products.

New Zealand first appeared on what is known as the "Special 301 Watch List" two years ago, after the previous Government lifted the ban on parallel importing. It was removed from the list last year after the new Government promised tougher measures against piracy.

The dispute is not seen as a serious threat to New Zealand's relationship with the US.

Ukraine, which supplies many of the world's pirated CDs and CD-Roms, is regarded as the main menace. China and Paraguay have also been threatened with trade sanctions, and another 16 countries, including the entire European Union, have received more serious criticism.

Some local industries are losing their patience with the Government.

The president of the Motion Picture Exhibitors' Association, Mark Christensen, said the industry was confident that new evidence sent to officials would back its case.

"To find that some of the major provincial multiplexes are down by 30 per cent is unbelievable. That's a huge drop," he said.

And other industries are concerned the Government may be getting cold feet.

Recording Industry Association chairman Terence O'Neill-Joyce said he would be extremely disappointed if the industry did not get some form of relief.

"How much more patient can we be when the Government was so supportive in installing this window as part of their manifesto?

"Apart from a failure to honour one's pledge, it will just make life more and more difficult."