Government prepares for legal sex industry

3.00pm

The sex industry and the state were today coming to terms with their newly legal relationship.

The passing of the Prostitution Reform Bill in Parliament by the narrowest of margins on Wednesday decriminalised soliciting, pimping and running a brothel.

The Courts Department now has just six months to set up systems to licence brothel operators, the department's manager of operations and judicial services, Fiona Saunders-Francis said today.

That included determining fees and development of a database register, she told National Radio.

Auckland District Court would maintain the system, because it would be more efficient than putting it in the hands of the country's 64 district courts, she said.

ACC was also preparing to collect levies from brothel owners, who would have to pay 56 cents in every $100 earnings to cover income for injured staff.

However, that cover was unlikely to cover sex workers who became pregnant in the course of their employment because it would not be considered a personal injury, an ACC statement said.

Inland Revenue (IRD), which views legal and illegal income the same way, did not anticipate having to radically change its systems to collect tax from sex industry workers, IRD said in a statement.

Opponents of the new laws say it will have dire consequences for women and increase criminal activity.

National MP Tony Ryall predicted more gangs would become involved in running brothels by using front people with clean records to get licences.

Other MPs said the law would have to be tightened due to loopholes that could be exploited by criminals.

But Justice Minister Phil Goff said gangs were already involved in massage parlours that acted as de facto brothels. The new law would also mean more of those involved in operating a brothel would be caught up in the licensing system.

Many opponents blamed Labour MP Ashraf Choudhary, who abstained from the conscience vote, for the bill's passing by 60 votes to 59.

If he had voted against, the vote would have been tied and the bill would not have passed.

But Mr Choudhary, a Muslim, said people were mistaken in believing he would vote against the bill.

"I said I would not vote for the bill," he said.

After voting against the bill in its first and second reading, he decided to not oppose the final bill because it would help prostitutes.

A spokesman for the Federation of Islamic Associations said Muslims were "disappointed" because Mr Choudhary's vote would have made a difference to whether or not the law had passed.

The bill will become law when it is signed by the governor-general, which usually happens within a week.

- NZPA