The Speaker laid on the Table the following Message from the Administrator –

Message No. 23

Magistrates Bill 2004 (Serial 237)

I, EDWARD JOSEPH EGAN, the Administrator of the Northern Territory of Australia, pursuant to section 11 of the Northern Territory (Self-Government) Act of the Commonwealth, recommend to the Legislative Assembly a Bill for an Act to amend the Magistrates Act to authorise salaries, allowances and other benefits payable to Magistrates appointed under section 4(3) of that Act to be paid from the public monies of the Territory.


Dated 15th June 2004.
Administrator
E J Egan (Paper 1387)

The following notices were given –
Mr Wood: To move - That the Auditor-General investigate and report back to the Public Accounts Committee on the following matters, for the period 1 July 2002 and 30 June 2004, what:

(a) contracts were approved by government for Metis Consulting PTY LTD and Banscott Pty Ltd;

(b) contracts were approved using Certificates of Exemption;

(c) expressions of interest/tenders/applications from other companies were received for any of the contracts. If no other tenders were sought, why not. Why were any other tenders rejected;

(d) the requirements for due process and probity were met under the Procurement Act during this process; and

(e) in relation to all the above contracts, were the cases where a conflict of interest could have occurred, and was that conflict of interest declared before any of the contracts were approved.

Suspension of Standing Orders – Take two Bills together: The Minister for Justice and Attorney-General (Dr Toyne), pursuant to notice, moved – That so much of Standing Orders be suspended as would prevent Bills entitled Remuneration Tribunal Amendment Bill 2004 (Serial 236) and Magistrates Amendment Bill 2004 (Serial 237),

(a) being presented and read a first time together and one motion being put in regard to, respectively, the second readings; the committee’s report stage; and the third readings of the Bills together; and
(b) the consideration of the Bills separately in the Committee of the Whole.

Question – put and passed.
Dr Toyne, pursuant to notice, presented a Bill for an Act to amend the Remuneration Tribunal Act and a Bill for an Act to amend the Magistrates Act.
Bills read a first time.
Dr Toyne moved – That the Bills be now read a second time.
Debate ensued.
On the motion of the Member for Araluen (Ms Carney) debate was adjourned.

The Chairman of the Legal and Constitutional Affairs Committee (Mr McAdam) laid on the Table the following Paper –

The Chairman of the Legal and Constitutional Affairs Committee (Mr McAdam), pursuant to notice, moved – That the Assembly –

(a) endorse the Terms of Reference of the Northern Territory Statehood Steering Committee, tabled on 25 June 2004; and

(b) authorise the Standing Committee on Legal and Constitutional Affairs to appoint the membership of the Northern Territory Statehood Steering Committee in accordance with the terms of reference tabled this day;

subject to -
the Speaker tabling in the Assembly for its adoption –

(i) the membership of the Northern Territory Statehood Steering Committee; and
(ii) a Speaker’s Determination authorising the level and terms and conditions of payment of meeting/sitting fees and travel allowances paid to Northern Territory Statehood Steering Committee members, pursuant to paragraphs 48 to 50 of the terms of reference above; and
(c) notwithstanding paragraph 4 of the Terms of Reference, may by resolution dissolve the Northern Territory Statehood Steering Committee.
Debate ensued.
The Member for Drysdale (Mr Dunham) moved the following amendment to the motion –

Omit all words after “That” and insert in their stead -

the document entitled “Terms of Reference, Northern Territory Statehood Steering Committee” be held in abeyance and used by members for consultation and discussion and be put forward for further debate in the Assembly at the next sittings.

On the motion of the Treasurer (Mr Stirling) debate was adjourned.

The Order of the Day having been read for the resumption of consideration in Committee of the Whole together with the Reports of the Estimates Committee and the Government Owned Corporations Scrutiny Committee, pursuant to resolution of the Assembly, dated 18 May 2004 –
Papers tabled: The Chairman of the Estimates Committee and the Government Owned Corporations Scrutiny Committee (Mr Kiely), pursuant to resolution, laid on the Table the following Papers-

Statement – additional information: Mr Kiely, by leave, advised the Assembly that further additional information and answers to Questions taken on Notice by Ministers during deliberations of the Estimates Committee and the Government Owned Corporations Scrutiny Committee would be Tabled during the August 2004 sittings.

Debate ensued.
Paper tabled: The Member for Greatorex (Dr Lim), by leave, laid on the Table the following Paper –

Debate continued.
Report of the Estimates Committee and the Government Owned Corporations Scrutiny Committee noted, pursuant to Order of the Assembly dated 18 May 2004.
Remainder of the Bill, by leave, taken as a whole and agreed to.
Bill to be reported without amendment.
_________________
The Assembly resumed; the Acting Deputy Speaker (Mrs Aagaard) took the Chair; the Chairman (Mr Wood) reported that the Committee had considered the Bill and Report of the Estimates Committee and the Government Owned Corporations Scrutiny Committee and agreed to the Appropriation Bill 2004/2005, without amendment.
On the motion of the Minister for Community Development (Mr Ah Kit) the Bill was read a third time and passed to be a proposed law.

The Order of the Day having been read for the resumption of debate on the question – That the Bills be now read a second time -
Debate resumed.
Question – put and passed.
Bills read a second time.
The Assembly resolved itself into Committee of the Whole for consideration of the Bills.
____________________
In Committee
(Chairman – Mr Wood)

Debits Tax Amendment Bill 2004 (Serial 226):
Bill, by leave, taken as a whole and agreed to.
Bill to be reported without amendment.

Mineral Royalty Amendment Bill 2004 (Serial 227):
Bill, by leave, taken as a whole and agreed to.
Bill to be reported without amendment.

Pay-roll Tax Amendment Bill 2004 (Serial 228):
Bill, by leave, taken as a whole and agreed to.
Bill to be reported without amendment.

Stamp Duty Amendment Bill (No.2) 2004 (Serial 229):
Bill, by leave, taken as a whole and agreed to.
Bill to be reported without amendment.

Taxation (Administration) Amendment Bill 2004 (Serial 230):
Clause 1 agreed to.
Clause 2 read.
On the motion of the Treasurer (Mr Stirling) the following amendment was agreed to -
Insert after subclause (3) “(4) Part 6 is taken to have come into operation on 23 June 2004”.

Clause 2, as amended, agreed to.
Clauses 3 to 13, by leave, taken together and agreed to.
New Clauses.
On the motion of Mr Stirling the following new clauses 14, 15 and 16 were inserted in the Bill –

Section 56A of the Principal Act is amended by inserting in subsection (1)(a) "(other than a conveyance to which Division 8AB applies)" after "securities".

Part III, Division 8AB of the Principal Act is repealed and the following substituted:

"In this Division –

'call option' has the meaning in section 56BC(1)(a);

'option property' means the dutiable property or marketable securities that is common to the call option and the put option;

'put option' has the meaning in section 56BC(1)(b).

"(1) This section applies if –

(a) there is a conveyance to a person ('the first person') of an option ('the call option') to require another person ('the second person') to convey to the first person, or to a person with whom the first person has an agreement, arrangement or understanding ('a third person'), dutiable property or marketable securities; and

(b) the second person has an option ('the put option') to require the first person or a third person referred to in paragraph (a) to be the conveyee in a conveyance of the dutiable property or marketable securities from the second person.

"(3) The conveyance of the option property is taken to have occurred when the later of the conveyance of the call option occurs or the put option comes into existence.

"(4) Duty is payable by the first person under subsection (2) –

(a) regardless of when the call option or the put option is exercisable; and

(b) even though the call option or the put option is exercisable over dutiable property or marketable securities in addition to the option property.

(a) the sum of the consideration for the conveyance of the call option over the option property and the consideration for the exercise of the call option over the option property; or

(b) the unencumbered value of the option property.

"(7) Subject to section 17(5), if the option property is conveyed to a third person referred to in subsection (1)(a) (whether as a result of the exercise of the call option or the put option or otherwise), ad valorem duty is payable by the third person on the conveyance even though duty has been paid or is payable by the first person under subsection (2).

"56BD. Duty payable if neither option exercised

"(1) This section applies if –

(a) both the call option and the put option expire without being exercised;

(b) the failure to exercise either option is not a tax avoidance scheme or part of a tax avoidance scheme; and

(c) the option property has not been conveyed to a third person referred to in section 56BC(1)(a) (whether as a result of the exercise of the call option or the put option or otherwise).

"(3) The duty imposed is payable by the last conveyee of the call option.

"(4) However, the conveyee liable to pay duty under subsection (3) is entitled to a remission or refund of an amount equal to the difference between –

(a) the amount of duty paid or payable on the call option by the conveyee under section 56BC(2); and

(b) the amount of duty paid or payable on the call option by the conveyee under subsection (3).

"(6) The Commissioner may allow a further period to furnish the application or information if satisfied that the person has a reasonable excuse for not furnishing the application or information within the 90-day period.

"56BE. Circumstances in which duty is not payable

"(1) Duty is not payable on a conveyance under section 56BC if the conveyance of the call option occurred, and the put option came into existence, before 23 June 2004.

"(2) Duty is not payable under section 56BC(2) if the Commissioner is satisfied that –

(a) the call option and the put option are part of a scheme of call options and put options granted by the proprietors of a business, the only purpose of which is to facilitate the continuation of the business by one or some of the proprietors ('the continuing proprietors');

(b) the call options and put options forming the scheme are only exercisable on the occurrence of a specified event that would cause the continuing proprietors to seek to acquire the interest in the business of another of the proprietors; and

(c) the call option and the put option are not a tax avoidance scheme or part of a tax avoidance scheme.

'proprietor', of a business, means a natural person who is –

(a) if the business is a partnership – a partner in the business;

(b) if the business is a company – a shareholder in the business;

(c) if the business is a unit trust scheme – a unit holder in the business; or

(d) if (a), (b) and (c) do not apply – a person determined by the Commissioner to be a proprietor of the business.".

Section 83A of the Principal Act is amended –

(a) by omitting from subsection (1B)(b) "occurred; and" and substituting "occurred;";

(b) by omitting from subsection (1B)(c) "section 56W(2)(c)." and substituting "section 56W(2)(c); and"; and

(c) by inserting after subsection (1B)(c) the following:

"(d) a conveyance referred to in section 56BC(2) is taken to cause or result in a change in the beneficial ownership of the dutiable property or marketable securities the subject of the conveyance and, for section 83B, that change in beneficial ownership is taken to have occurred on the date the conveyance is taken to have occurred under section 56BC(3).".

Remainder of the Bill, by leave, taken as a whole and agreed to.
Bill to be reported with amendments.
______________________
The Assembly resumed; the Speaker (Mrs Braham) took the Chair; the Chairman (Mr Wood) reported that the Committee had considered the Bills and agreed to the –

On the motion of the Treasurer (Mr Stirling) the Bills were read a third time and passed to be proposed laws.

Suspension of Standing Orders – Pass three Bills through all stages: The Minister for Racing, Gaming and Licensing (Mr Stirling), pursuant to notice, moved - That so much of Standing Orders be suspended as would prevent Bills, entitled –
Soccer Football Pools Amendment Bill (Serial 223), Gaming Control Amendment Bill 2004 (Serial 224) and Gaming Machine Amendment Bill 2004 (Serial 225), passing through all stages at this sittings.
Question - put and passed.
The Order of the Day having been read for the resumption of debate on the question – That the Bills be now read a second time –
Debate resumed.
______________
Visitors: The Speaker advised Members of the presence in the public galleries of students from St Bernards, accompanied by Mr Garth Cupido and Ms Petra Moon.
On behalf of all Members the Speaker extended a warm welcome to the visitors.
______________
Debate continued.
Paper tabled: The Minister for Racing, Gaming and Licensing (Mr Stirling) laid on the Table the following Paper -

Debate continued.
Question – put and passed.
Bills read a second time.
The Leader of the Opposition (Mr Mills), pursuant to Standing Order 183, moved – That the Bills be referred to a Select Committee, the terms of reference of the Committee to be agreed, but should include the following:

1. A complete review on the Report by the Select Committee on Effects of Poker Machines in community venues.

2. A review of the National Competition Commission Report on Gaming Machines in the Northern Territory and the current regulatory systems for the Territory to meet its own requirements.

3. Ensure that the primary objectives of the distribution of electronic gaming machines in the Northern Territory are explicit and unchanged. That is, to provide a productive local leisure activity delivering proceeds:

(a) to clubs and licensed venues to improve neighbourhood recreational amenity;
(b) to government, for services to all Territorians;
(c) the means by which any negative impacts of electronic gaming machines in the community are minimised; and
(d) the form and extent to regulatory mechanisms that will be necessary to ensure fairness, efficiency and integrity are maintained.

4. The impact of the Gaming Machine Amendment Bill 2004 on the existing regulatory system and in meeting the primary objectives of distributing electronic gaming machines in the Northern Territory.

5. The Committee report by December 2004.

6. The Committee be able to:
(a) adjourn from time to time and place to place;
(b) to send for persons, papers and records; and
(c) to sit during any sitting and adjournment of the Assembly.

Debate continued.
Question - That the amendment be agreed to - put.
The Assembly divided (the Speaker, Hon. L. M. Braham, in the Chair) -

AYES, 11 NOES, 12

Mr Baldwin Mrs Aagaard
Mr Burke Mr Ah Kit
Ms Carney Mr Bonson
Ms Carter Dr Burns
Mr Dunham Mr Henderson
Mr Elferink Mr Kiely
Dr Lim Ms Lawrie
Mr Maley Mr McAdam
Mrs Miller Ms Scrymgour
Mr Mills Mr Stirling
Mr Wood Dr Toyne
Mr Vatskalis

Amendment negatived accordingly.
The Assembly resolved itself into Committee of the Whole for consideration of the Bills.
_______________
In Committee
(Chairman - Mr Wood)

Soccer Football Pools Amendment Bill (Serial 223):
Bill, by leave, taken as a whole and agreed to.
Bill to be reported without amendment.

Gaming Control Amendment Bill 2004 (Serial 224):
Bill, by leave, taken as a whole and agreed to.
Bill to be reported without amendment.

Gaming Machine Amendment Bill 2004 (Serial 225):
Clauses 1 to 4, by leave taken together and agreed to.
Clause 5 read.
On the motion of the Minister for Racing, Gaming and Licensing (Mr Stirling) the following amendment was agreed to, after debate.
Omit from paragraph (a) the definition of “club liquor licence” and insert in its stead –

" 'club liquor licence' means a licence granted under the Liquor Act to a body corporate –

(a) where the primary activity conducted on or at the premises specified in the licence is the sale and consumption of liquor on or at those premises by members and guests of the body corporate; and

(b) that is endorsed with the words 'AUTHORITY – CLUB';"


On the motion of the Minister for Racing, Gaming and Licensing (Mr Stirling) the following further amendment was agreed to, after debate.
Omit the definition of “hotel liquor licence” in paragraph (b) and insert in tis stead –

" 'hotel liquor licence' means a licence granted under the Liquor Act –

(a) where the primary activity conducted on or at the premises specified in the licence is the sale and consumption of liquor on or at those premises; and

(b) that is endorsed with the words 'AUTHORITY – PUBLIC HOTEL' or 'AUTHORITY – TAVERN';"


Clause 5, as amended, agreed to.
Clauses 6 to 7, by leave, taken together and agreed to.
New Clause 7A.
On the motion of Mr Stirling the following New Clause 7A was inserted in the Bill –

7A. New section 24A
The Principal Act is amended by inserting after section 24 the following:
"24A. Notice of application
"(1) An applicant for a gaming machine licence must, within 28 days of lodging the application, publish a notice that the application has been made –

(a) in a newspaper or newspapers nominated by the Director; and

(b) in any other manner the Director considers suitable to publicise the application.

"(2) The notice must –
(a) include a description in sufficient detail to identify the location of the premises to which the application relates;

(b) contain details of the number of gaming machines applied for;

(c) contain details of where community impact information may be obtained;

(d) contain a statement that a person may make a written submission to the Director on the application within 30 days of the notice being first published in a newspaper;

(e) contain any other particulars determined by the Director; and

(f) be not less than a size determined by the Director.".

Clause 8 read.
On the motion of Mr Stirling the following amendment was agreed to after debate -
Omit from paragraph (b), proposed subsection (3) – and insert “subsection (1) and any submissions received under section 24A”.

Clause 8, as amended, agreed to.
Clause 9 agreed to.
New Clauses 9A and 9B.
On the motion of Mr Stirling the following New Clauses 9A and 9B were inserted in the Bill –

9A. Increase in gaming machines
Section 41 of the Principal Act is amended –
(a) by inserting after subsection (2)(ca) the following:
"(cb) if section 41A applies – must be accompanied by a community impact analysis;"; and
(b) by inserting after subsection (4)(a) the following:
"(b) if section 41A applies – the community impact analysis;

(ba) if section 41B applies – any submissions received under the section;".

9B. New sections 41A and 41B
The Principal Act is amended by inserting after section 41 the following:
"41A. Community impact analysis
"(1) An application under section 41 must be accompanied by a community impact analysis if –

(a) the increased number of gaming machines sought to be authorised for use under the licence is 5 machines or more;

(b) the guidelines published by the Director under section 161A require the application to be accompanied by a community impact analysis; or

(c) the Director requires the application to be accompanied by a community impact analysis.

"(2) A community impact analysis must be in the form approved by the Commission and must provide the following details:

(a) the suitability of the premises to which the application relates having regard to the size, layout and facilities of the premises;

(b) the suitability of the premises to which the application relates having regard to the primary activity conducted at the premises;

(c) the suitability of the location to which the application relates having regard to the population of the local area, the proximity of the premises to other gaming venues and the proximity of the premises to sensitive areas such as schools, shopping centres, other community congregation facilities, welfare agencies, banks and pawn brokers;

(d) the appropriateness of problem gambling risk management and responsible gambling strategies;

(e) economic impact of the proposal including contribution to the community, employment creation and significance or reliance of the venue to or on tourism.

"41B. Notice of Application
"(1) If section 41A applies, the licensee must, within 28 days of lodging the application under section 41, publish a notice that the application has been made –

(a) in a newspaper or newspapers nominated by the Director; and

(b) in any other manner the Director considers suitable to publicise the application.

"(2) The notice must –

(a) include a description in sufficient detail to identify the location of the premises to which the application relates;

(b) contain details of the increased number of gaming machines sought to be authorised for use under the licence;

(c) contain details of where community impact information may be obtained;

(d) contain a statement that a person may make a written submission to the Director on the application within 30 days of the notice being first published in a newspaper;

(e) contain any other particulars determined by the Director; and

(f) be not less than a size determined by the Director.".


Remainder of the Bill, by leave, taken as a whole and agreed to.
Bill to be reported with amendments.
________________
The Assembly resumed; the Speaker took the Chair; the Chairman (Mr Wood) reported the -

And the reports were adopted.
On the motion of the Minister for Racing, Gaming and Licensing (Mr Stirling) the Bills were read a third time and passed to be proposed laws.

The Leader of Government Business (Mr Henderson) moved – That the Assembly at its rising adjourn until Tuesday 17 August 2004 at 10 am or such other time and/or date as may be set by Madam Speaker, pursuant to Sessional Order.
Question – put and passed.

The following further notice was given, by leave –
Mr Mills: To move: That this Assembly appoint a Select Committee inquire into and review -
1. The Report by the Select Committee on Effects of Poker Machines in community venues.

2. The National Competition Commission Report on Gaming Machines in the Northern Territory and the current regulatory systems for the Territory to meet its own requirements.

3. The primary objectives of the distribution of electronic gaming machines in the Northern Territory are explicit and unchanged with a view to provide a productive local leisure activity which would deliver proceeds:

(a) to clubs and licensed venues to improve neighbourhood recreational amenity;
(b) to government, for services to all Territorians;
(c) for the means by which any negative impacts of electronic gaming machines in the community are minimised; and
(d) to the community as a result of revised regulatory mechanisms that will be necessary to ensure fairness, efficiency and integrity are maintained.

4. The impact of the Gaming Machine Amendment Bill 2004 on the existing regulatory system and in meeting the primary objectives of distributing electronic gaming machines in the Northern Territory.

5. The Committee report by December 2004.

6. The Committee be able to:
(a) adjourn from time to time and place to place;
(b) to send for persons, papers and records; and
(c) to sit during any sitting and adjournment of the Assembly.

The Leader of Government Business (Mr Henderson) moved – That the Assembly do now adjourn.
Question – put and passed.
And the Assembly adjourned at 7.34 pm until 10 am on Tuesday 17 August 2004 or such other time and/or date as may be set by the Speaker, pursuant to Sessional Order.

PAPERS:
The following Papers were deemed to have been presented on Friday 25 June 2004 –

Annual Report:
Standing Committee on Legal and Constitutional Affairs, 2002/2003 (Paper 1391)

Coroners Act:
In the matter of Coronial Findings and Recommendation into the Death of Mr Mansur La Ibu (“the deceased”), pursuant to section 46B, dated 19 March 2004 (Paper 1393)
In the matter of Coronial Findings and Recommendation into the Death of Ms Souzana Afianos, pursuant to section 46B, dated 1 January 2004 (Paper 1394)

ATTENDANCE:
All Members attended the sitting, except Ms Martin.

Ian McNeill
Clerk of the Legislative Assembly