Michael Keenan (Stirling, Liberal Party, Shadow Minister for Justice, Customs and Border Protection) Share this | Link to this | Hansard source

The Classification (Publications, Films and Computer Games) Amendment (Online Games) Bill 2011 seeks to amend the current uncertainty surrounding the classification of mobile phone and online games by granting a two-year moratorium on the formal classification of online games. As many members would be aware, technology in this area evolves incredibly fast. It is difficult to keep the regulatory environment up to date, although the opposition considers that this bill, in asking providers of online games to self-regulate, is a sensible approach. The proposed amendments contained within this bill will see the insertion of a new category of exempt online games into the Classification (Publications, Films and Computer Games) Act 1995, which removes the requirements for mobile phone and online games to be classified.

The coalition supports the bill, which seeks to simplify the classification process of online games and the self-regulation amongst the telecommunications industry pending the results of the Australian Law Reform Commission review of the National Classification Scheme. It has been 20 years since the Australian Law Reform Commission was required to give a reference relating to censorship and classification. This is a reflection of the rapid pace of technological change and the amount and type of media available to the Australian community. It is time for legislation to reflect the complicated modern communications landscape that has been completely rewritten since the globalisation of media. It is no longer feasible for the Classification Board to trace online media content considering a large proportion does not come from an Australian based distributor.

The coalition supports the need to improve the classification information available to the community and to enhance public understanding of these classifications so parents can make informed decisions on the content they expose their children to when purchasing and participating in online games. Today's consumers have access to an ever-increasing variety of online games. They are available on many platforms including mobile phones and other electronic devices. Many members would be familiar with games such as Angry Birds Online or other such games that we can get on our iPad, but that is of course one of literally the many thousands of online games now available. The idea that the Classification Board could sensibly classify them all individually is clearly something that is not feasible and that this legislation seeks to address.

At present the classification of mobile phone and online games is regulated under the National Classification Scheme. This cooperative scheme between the Commonwealth, state and territory governments contains the procedures for classification of mobile phone and online games, but the responsibility to enforce legislation remains with the states and territories. The coalition is concerned that at present the majority of mobile applications and online games are not classified before being made available to the public, which is a breach of the current state and territory legislation.

In recent times there has been a significant increase in the number of games and applications readily available for mobile devices and other platforms. There are literally thousands of application submissions every month for licensing with Apple products alone. The National Classification Scheme was not established with this huge quantity of content in mind. Under the current legislation, the Classification Board does not possess the administrative resources to assess even a fraction of the mobile phone and online games that would be submitted for classification, not to mention the significant financial burden that this would place on the industry. With the current regulatory uncertainty surrounding this issue, members of the telecommunications industry have expressed concern about the current regulatory uncertainty and they require clarity on the present legal requirements for the classification of mobile phone and online games.

This bill seeks to amend the principal act to create a much-needed category of exempt online games and, as a result, remove the requirements for mobile phone and online games to be classified for a two-year period. When the current legislation was originally written, it could not possibly have envisaged the rapid rate at which gaming technology has expanded, let alone the rapid development of online games and mobile phone applications. The aim of the bill is to provide clarity for both the local games industry and the community about the regulation of mobile and online games. The industry will still be able to submit these types of games to the Classification Board of Australia for classification but, importantly, will no longer be in violation if they choose not to do so. The industry will be required to self-regulate under the proposed two-year moratorium and maintain awareness of the sanctions for under-classifying its products. The proposed changes to the act are intended to remain in place for two years, after which long-term reforms to combat this issue will be established following the recommendations made by the Australian Law Reform Commission in its review of the National Classification Scheme, to be finalised in 2012. The coalition believes it is important to ensure that the proposed exemption will not apply to computer games which are likely to contain offensive material and would normally be refused classification. It is highly important that existing protections against this category of offensive material continue to apply to online games. Children today are already overexposed to violent and immoral images through their widely unrestricted ability to access the internet and online games. Clearly it is often extraordinarily difficult for parents to police their children's access to this sort of content. The classification of online games is essential to help provide better information and advice to parents to help prevent their children, including their teenagers, from accessing games that may contain gratuitous sex, violence or drug use.

In some circumstances there is arguably a need to restrict access to some online gaming content on the basis of our community standards. However it is important that the parliament also acknowledge that the majority of these games are played by adults who have the right to choose to play online games that contain adult content. It is not up to us as a parliament to act as people's parents, and clearly adults should be the best arbiters of what they should access in almost all circumstances. Some stakeholders, including Apple, understand that policing the output of this type of material in the traditional sense is near impossible. However licensors such as Apple take great care in compliance monitoring of their products before making them readily available for wider distribution.

The coalition knows it is essential to keep many of the other regulatory protections in place. Under the Broadcasting Services Act individuals can lodge a complaint with the Australian Communications and Media Authority when they are concerned that an online game contains prohibited material. The Director of the Classification Board will still retain the power to investigate any computer game that it suspects contains contentious material that is likely to require the game to be classified as higher than an M rating. The ideal outcome for the Australian Law Reform Commission's findings would be for it to recommend measures that will reduce or avoid a financial and regulatory snarl for the telecommunications sector whilst providing clear and precise classifications for the gaming industry and the wider Australian community.

In summary, the huge increase in volume and variety of online games has made the existing classification regime impractical and redundant. The coalition supports the two-year moratorium on formal classification of online games, pending the recommendations of the Australian Law Reform Commission.

Whilst the coalition supports the bill, we believe it is necessary that 'refused classification' material not be subject to the moratorium. We must continue to balance the rights of adults to make informed choices with the protection of our children. This legislation will require the telecommunications industry to self-regulate its products and it will still face sanctions for the incorrect classification of inappropriate material that it makes readily available to consumers. It is vital to reform the current classification framework in Australia, otherwise we run the risk of damaging our creative industry in this increasingly globalised media environment. We therefore support the passage of this bill through the parliament. It does seem to be a sensible approach to the ongoing technological challenges that are thrown up by the significant advances in technology for online gaming.

I commend the government on coming up with a sensible approach to this issue and we look forward to seeing what the Australian Law Reform Commission comes up with. Certainly from the opposition's perspective a properly working self-regulatory approach would be preferable to going back to a more heavy-handed approach where the government needs to look at individual things before they are classified in a way that would certainly be impractical and would require levels of resourcing for the Classification Board that I do not think would be warranted when another approach might work.

Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the Classification (Publications, Films and Computer Games) Amendment (Online Games) Bi11 2011. As the member for Stirling said, the bill seeks to establish clarity around the classification of mobile phone and online games by providing a two-year moratorium on the formal classification of online games. The proposed amendments to this bill will see the insertion of a new category of exempt online games into the classification act which removes the requirements for mobile phone and online games to be classified.

The coalition supports the bill, which seeks to simplify the classification process of online games and the self-regulation amongst the telecommunications industry, pending the results of the Australian Law Reform Commission review. It is worth noting that it 20 years since the Australian Law Reform Commission has been given a reference relating to censorship and classification. Twenty years hence the Australian community, as a result of the rapid advancement of technology in terms of media, has access to a plethora of applications that are now available, for example, on iPhones or iPads. The member for Stirling was talking about Angry Birds. I have not played that game but I have seen many people on planes playing it.

Globalisation of media in the complicated modern communication space requires legislation particularly to do with classification that must be adaptive and reflective of advancing technologies. The feasibility of the Classification Board tracing online media content is impractical when a large proportion is distributed from offshore. Classification information available to the community must be improved. The coalition supports such improvement in the understanding that, in particular, parents require information so they can make informed decisions when allowing their children to be exposed to social or online media, which includes the purchase and participation of online games. I know as a parent I have always used the movie classifications as an important part of my decision-making process.

I fully support the call to improve classification information. Technology has advanced exponentially—so much so that today's consumers have access to an ever-increasing variety of online games that are available on many platforms, including, as I have said, mobile phones, iPads, iPods and other similar electronic network devices. Currently, the classification of mobile phone and online games is regulated under the National Classification Scheme, as the member for Stirling said. This cooperative scheme between the Commonwealth, state and territory governments contains the procedures for classification of mobile phone and online games, but the responsibility to enforce this legislation remains with the states and territories.

A large number of mobile phone and online games which are currently available to the public are not classified before being made available, and therefore are potentially in breach of current state and territory legislation. This is of considerable concern to the coalition, particularly when you consider the thousands of application submissions each month for the licensing of Apple products alone.

When established, there was never an expectation that the National Classification Scheme would be involved in processing the level of content currently available. In consideration of the current legislation, it is clear that the Classification Board does not have the administrative resources to assess even a portion of the mobile phone and online games that would be submitted for classification. The telecommunications industry has expressed concern about the current regulatory uncertainty and they require clarity on the present legal requirements for the classification of mobile phone and online games.

This bill seeks to amend the principal act to create a much needed category of exempt online games and, as a result, remove the requirement for mobile phone and online games to be classified for a two-year period. The drafters of the current legislation could not have foreseen the significant and rapid development of gaming technology, particularly of online games and mobile phone applications.

The aim of the bill is to provide regulations for mobile and online games which the local industry and community can understand. It is intended that the industry can still submit these types of games to the Classification Board of Australia for classification but, importantly, as the member for Stirling said, they will no longer be in violation if they do not do so, as the industry will be required to self-regulate under the proposed two-year moratorium. The proposed changes to the act are intended to remain in place for two years, after which long-term reforms to combat this issue will be established following the recommendations made by the Australian Law Reform Commission after its review of the National Classification Scheme, which is expected to be finalised in 2012. The coalition believes that it is important to ensure that the proposed exemption will not apply to computer games which are likely to contain offensive material and would normally be refused classification. It is highly important that existing protections against the category of offensive material will continue to apply to online games. Children today are already over-exposed to violent and immoral images through their widely unrestricted ability to access the internet and online games. There is a strong feeling within the community about introducing R-rating-plus ratings on video games such as Grand Theft Auto. I must say I was shocked when I first saw teenagers playing Grand Theft Auto. This is a game in which players score points by stealing cars, bashing policemen and displaying violent sexual behaviour towards women. I am by no means a prude but I do have some concerns about a game that promotes bashing policemen and being violent to women. I do not think this is the type of game our young people should be playing.

I have in this place already raised my concerns about the increased levels of violence and lack of respect shown to our police officers. With games like Grand Theft Auto being so lifelike and so available, I suspect—but I may be wrong—that there might be a slight link somewhere between violent games and the increased violence within our community, particularly towards police officers. I certainly think that this has to be one of the contributing factors and I believe that the classification is an essential tool in assisting parents to make some key decisions.

The classification of online games like Grand Theft Auto is absolutely essential, as I have said, to provide better information and advice to parents to help prevent their children and teenagers from accessing games that may contain gratuitous sex, violence or drug use. I know that when my son was growing up, my husband and I reviewed all of his console games and movies to ensure that they were appropriate for his age. As a teenager he was not allowed to access games or movies that we considered to be unsuitable. The classification level was a key consideration in these decisions.

In some circumstance there is arguably a need to restrict access to some online gaming content on the basis of our community standards. The coalition understands that a large majority of the games played online are played by adults. As adults they have the capacity to make up their own minds as to whether they can play games that contain particular content. As the member for Stirling has already stated, stakeholders, including Apple, accept that policing the output of this type of material in the traditional sense is nigh on impossible. Having said that, it is understood that Apple takes great care in compliance-monitoring of its products before making them readily available for wider distribution.

The coalition knows it is essential to keep many of the other regulatory protections in place and under the Broadcasting Services Act individuals can lodge a complaint with the Australian Communications and Media Authority when they are concerned that an online game contains prohibited material. The director of the classifications board will still retain the power to investigate any computer games that it suspects contains contentious material that likely requires the game to be classified at a higher than an M-rating.

Ideally, outcomes from the Australian Law Reform Commission findings would see measures recommending streamlined financial and regulatory processes for the telecommunications sector whilst providing clear and precise classification for the gaming industry and the wider Australian community. The significant increase in volume and variety of online games has made the existing classification regime impractical. The coalition does support the two-year moratorium on formal classification for online games pending the recommendations of the Australian Law Reform Commission.

Whilst the coalition supports the bill it is our firm belief that it is essential that any refused classification material not be subject to the moratorium. We must continue to balance the rights of adults to make informed choices with the right to protect our children.

This legislation will require the telecommunications industry to self-regulate their products and they will still face sanctions for the incorrect classification of inappropriate material that they make readily available to consumers. It is absolutely vital to reform the current classification framework in Australia. Otherwise we can run the risk of damaging our creative industry in the ever-increasingly globalised media environment. As my colleague the member for Stirling has already said, the coalition supports this bill.

Sitting suspended from 13 : 00 to 16:04

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak in support of the Classification (Publications, Films and Computer Games) Amendment (Online Games) Bill 2011. The Gillard government is well aware of the dramatic uptake of mobile and online gaming in recent years. Unlike the controlled environments of our local clubs, these 'pokies' can be in any pocket, anywhere, any time.

As at October 2010, 43 per cent of Australians owned a smartphone, and in fact my wife just received one today—against my advice! One year on, I am sure that that percentage is even higher than 43 per cent. At least 40 per cent of mobile phone owners use their phones for games, and in 2009 69 per cent of children used the internet to play online games. I know, with your youngish children, Madam Deputy Speaker D'Ath, you would know how hard it is to make sure that the games they play online are appropriate. With a six-year-old, I try to make sure the games are appropriate, but there are the ads that come up alongside, and some of the avatars they have always seem to be a certain type of female—one that I would not necessarily want a six-year-old boy to be seeing.

Faced with these statistics about our mobile phone use and the use of the internet for games, the government must rise to the challenge of ensuring that appropriate safeguards are in place for these emerging and present technologies. The laws relating to how we classify or rate media are important for allowing consumers to make informed choices about what they see and what they hear. They are also very important for protecting children and young people from viewing inappropriate material or material that they did not wish to see. The laws also provide a degree of regulation for a highly competitive industry.

The National Classification Scheme classifies films, including videos and DVDs, computer games and some publications, not billboards. With a flood of new computer games available on a variety of platforms, including mobile devices and other network services, it is not possible for the Classification Board to classify all of these games. I understand that they already review more than 800 games a year. And to review a game is not easy, as I know, having had a brother who worked in this area. You must make sure you go through all of the game to make sure you go to the different areas where there might be inappropriate material; it is not an easy job.

To impose a strict classification scheme would not be viable because it would place an unrealistic financial burden on the industry. However, I understand that the industry is also crying out for certainty and clarity regarding the legal requirements for the classification of mobile and online games. The Standing Committee of Attorneys-General agreed in March that mobile and online games should be treated like other online content rather than stand-alone games. Therefore, this bill before the House amends the Classification (Publications, Films and Computer Games) Act 1995 to exempt mobile phone and online computer games from classification for two years.

This will not apply to computer games likely to be refused classification or RC. That is material that any reasonable adult would find would offend decency, morality and propriety. This is material that nobody should see.

So, despite the two-year grace period, there will be safeguards remaining to regulate these mobile and online games. They include the following. Individuals can still refer an unclassified computer game to the Classification Board. So, as MPs, we can still be contacted by someone who has a concern about a game and we can notify the Classification Board. The Australian Communications and Media Authority, ACMA, will retain the power to investigate potential prohibited online content including computer games likely to be classified MA15+ or above. The director of the Classification Board will retain the power to call in games for classification if they contain contentious material. That power—the power to call in—is a very important power; it is one not used frequently but always to great effect. Law enforcement agencies will continue to be able to apply for classification of any unclassified computer games—maybe some of the games that come on phones already. These protections ensure that there are avenues for consumers to raise complaints when necessary when community values are being crossed. They also send a strong message to the industry that, if they want to push the boundaries, they will most likely face classification.

This bill is not the end, but it does give certainty to the industry and it gives the government time to work with industry to develop a more considered approach to the classification of mobile and online games. I know that, as a Queenslander, Madam Deputy Speaker D'Ath, you would realise how important this industry is for Queensland, because there are a lot of gaming 'factories' in Brisbane city. From there we export those games all around the world.

So this is a fast evolving medium—too fast for me, that's for sure—and it would be foolish for the government to rush in with an unworkable and unsustainable system. The two-year exemption is the right approach for now. The government is expecting a report from the Australian Law Reform Commission early next year which will provide some recommendations on how we can better address these classification matters in the long term. I look forward to that report and I commend the bill to the House.

Stephen Jones (Throsby, Australian Labor Party) Share this | Link to this | Hansard source

In 1971 Messrs Nolan Bushnell and Ted Dabney launched the first commercial computer game onto the market, a game called Computer Space, shortly followed in 1972 by Pong on the Atari machine. They launched both a home and an arcade version of this game—a slot coin machine. They quickly became very, very popular and clones were thereafter introduced. From that was launched an industry which has found its way into every corner of the globe and, dare I say, into most Australian households.

From those very large cathode-ray tube based machines that looked like a large television set in the corner of a games arcade, or in a corner of a lucky person's bedroom, we have come a long way. New platforms have emerged from personal computers: laptops; mobile phones, as the member for Moreton has just described; tablets, such as iPad and the like; and new systems for delivering these games onto those devices. It is not only the platforms, the form of the games and the medium which is transforming but so too is the demographics of the gamers themselves. No longer is the stereotype of a computer gamer just a Coke-sipping, pizza-munching teenage boy holed up in his bedroom; the gaming population is very quickly being feminised. In fact, a recent study by Bond University by Dr Jeff Brand showed that 41 per cent of gamers are now females, It also showed that over 79 per cent of households have a platform for the delivery of a computer game and that, increasingly, Australians are taking to this form of entertainment like they take to many other forms of new technology.

So it is necessary for the government to look for a new and a balanced approach. The member for Moreton quite succinctly said that we need to balance the need to protect the interests of consumers, particularly minors and the unsuspecting, from offensive and inappropriate content while at the same time we need to have in place appropriate mechanisms which encourage a burgeoning industry. And it is indeed a burgeoning industry here in Australia, and in my own electorate in Throsby, where the University of Wollongong has quite a number of resources within its ICT faculties where people are graduating with expertise in the production of computer games and very quickly moving into commercialising their skills, talents and applications.

The bill before the House today attempts to take the first step in more sensibly regulating how we deal with online computer games and computer games delivered onto mobile platforms. At the moment they are currently regulated through Australia's National Classification Scheme. This is a cooperative scheme between the Commonwealth, states and territories. Procedures for the classification of publications, films and computer games are set out in national legislation; and provisions dealing with the consequences of not having material classified and the enforcement of the classification are decisions contained in complementary state and territory laws.

State and territory enforcement legislation contains a range of offences against the sale and the use of computer games and establishes a number of conditions on the possession, demonstration and advertising of computer games. At present the significant majority of computer games are not classified prior to being made available to consumers. That is certainly in breach of those state and territory provisions. It is not because the state and territory law enforcement authorities are falling asleep at the wheel; it is quite simply the fact that the way that online games are now entering the market and the way that they are now being marketed to consumers does not easily lend itself to regulation in the traditional way. This iPad I have here can quite quickly and quite easily download applications and games from anywhere on the globe within minutes. Quite literally, there are hundreds and hundreds of new applications and new games coming onto the market every day. It would be impossible for a state or territory regulator to appropriately classify each of these ahead of them being presented to the market for consumption.

This legislation proposes to put a new arrangement in place which would enable a new category of game to come onto the market without classification and without being prohibited by the existing regime. I have spoken about the importance of putting in place a scheme which encourages the development of computer games and creates some certainty for the industry—because the need to withdraw is seen by the industry as a significant threat. The Minister for Justice, who is now with us in the chamber, gave an example in his second reading speech of how Apple quite reasonably shut down the games category of its iTunes store in South Korea after new national laws were introduced there which established a games rating board to classify all mobile phone and online games on a mandatory basis. Clearly the introduction of this legislation was seen by iTunes as so much of a risk that they withdrew their games from that market.

The current situation presents a significant compliance issue for the National Classification Scheme. Industry has expressed concern about this regulatory uncertainty and has called on the government to clarify the present requirements. The reform will involve a simple amendment to the Classification (Publications, Films and Computer Games) Act to provide a two-year exemption from classification for mobile phone and online computer games. It is important to note that this exemption will not apply to computer games likely to be refused classification. Existing offences contained in Commonwealth, state and territory legislation will continue to apply to those games.

It is necessary to address this issue in the short term to respond to industry concerns about compliance and to provide clarity about regulatory requirements for mobile phone and online games. A number of safeguards, however, will remain in place to regulate these computer games. For example, individuals will continue to be able to submit, if they wish, any unclassified computer games to the Classification Board for classification. That is to say, somebody who has a concern or is offended by the material contained within one of these new categories of games is able to contact the Classification Board and ask that they appropriately classify that game. If the game is seen to be inappropriate and fails the classification test, withdrawal from the market will be required.

The ACMA will also retain the power to investigate potentially prohibited online content. This includes computer games likely to be classified as MA15+ which are not behind a restricted access system. The director of the Classification Board will also retain the power to call in games for classification if they contain contentious material likely to cause the game to be classified as M or higher. Finally, law enforcement agencies will continue to be able to apply for classification for any unclassified computer games.

It is expected that a longer term solution to this matter will be considered by the Australian Law Reform Commission as part of the broad review of national classification standards which is currently underway. I am advised that the ALRC is due to report at the end of January next year and it is almost certain that we will be revisiting this matter. But, in the interim period and until the ALRC is able to present the minister and this House with a more thoroughgoing set of recommendations, this bill provides some certainty to industry balanced with provisions which protect vulnerable consumers, unsuspecting consumers and minors from offensive content. On those grounds, I commend the bill to the House.

Brendan O'Connor (Gorton, Australian Labor Party, Minister for Home Affairs) Share this | Link to this | Hansard source

I thank the member for Throsby for his contribution and the members for Moreton, Stirling and Solomon. This is an important bill. Consumers now have ready access to an increasing number and range of computer games on a variety of platforms including on mobile devices and other network services. The business model for computer game design and delivery is increasingly moving to mobile and online markets. The numbers of mobile device and online games currently being introduced into the Australian market presents a number of practical challenges for regulators. It is for this reason we are introducing this bill.

At present, the significant majority of mobile devices and online computer games are not classified prior to being made available to consumers, in breach of state and territory laws concerning the sale, demonstration and advertising of computer games. Indeed, I raised these matters at the attorneys-general meeting earlier this year because of the practical problems we have in applying the laws as they stand. If legal requirements were enforced, the National Classification Scheme, in its present form, would be unable to sustain the administrative burden that this would impose. It would result in significant compliance costs for industry and may threaten the existence of small operators. This bill is intended to provide an interim solution. It will address concerns raised by industry and the director of the Classification Board about the legal requirements and the obligations for the classification of computer games that are playable on mobile devices and online.

The government is committed to ensuring that our classification system maintains community confidence. To this end, the Australian Law Reform Commission has been asked to conduct a review of classification in Australia in light of changes in technology, media convergence and global availability of media content. As part of this review, the commission is considering the best way to classify computer games. This review will inform the government's consideration of long-term reforms for the classification of mobile device and online games. I commend the bill.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.