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3. The following table sets out the renting companies at present operating in New Zealand and •shows the number of American and British " quota " films approved by the Censor during the past two years. The first eight companies are owned and controlled by the corresponding American producers, British Empire Films by Kerridge-Odeon, and the rest are companies with local capital.

PARLIAMENTARY COMMITTEE OF INQUIRY, 1934 4. This inquiry was held at a fairly late stage of the depression. The matters then under consideration had reference mainly to conditions arising from the depression and to the relationship of renter and exhibitor. Substantial effect was given to all the recommendations of the Committee mainly by means of the Cinematograph Films Amendment Act passed in 1934. The following notes set out in detail the action taken. Censorship Provisions 5. Section 5 (5) of the principal Act was repealed and provision was made, inter alia, for the issuance by the Censor of special certificates of approval of films applying only in respect of exhibitions by film societies or to specified class or classes of persons. Standard Contract 6. The Minister was authorized (section 10) to prescribe the terms of a standard contract to be used for all film-hiring agreements. The details of this contract were thrashed out by an Advisory Committee containing representatives of both sides of the industry and departmental officers under the Chairmanship of Mr. E. Page, S.M. (later Mr. Justice Page). The contract form then agreed upon has proved beneficial to both exhibitors and renters and, with three minor amendments made to meet changing conditions in the industry, is still in force. Statutory Rejection Right t. The right to reject 25 per cent, of the films " block booked " recommended by the Committee was provided in sections 7-9 of the amending Act. As was anticipated, it has proved of greatest value to the independent exhibitors, who have not the buying power necessary to obtain the concessions granted by the renter to the circuit-theatre concerns. The right is mostly exercised to reject the lower-grade pictures, but on occasion is used with respect to pictures in the upper bracket as a protection against what are deemed to be unreasonable charges for these pictures. The licensing officer under the controlling regulations is concerned to see that the public interest is not prejudiced by such rejections, and investigations are made in all cases where an allegation is made that an adequate standard of film is not being screened, or if it comes under notice that the rejection right is being improperly exercised. Minimum Admission Prices 8. The recommendation of the Committee in this regard was given effect to by the inclusion in the standard contract (pursuant to section 10 (2) of the amending Act) of a provision that the minimum admission price shall be 6d. in the case of special pictures approved by the Minister. The practice is that a committee representing both renters and exhibitors submits annually a list of

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Films Passed by Censor.* Renter. 1946-47. 194: 7-48. British. Foreign, j British. Foreign. Metro - Goldwyn Mayer (N.Z.), Ltd. 1 30 35 Paramount Films, Ltd. 26 i 27 Twentieth Century Fox Film Corporation (N.Z.), Ltd. i3 36 27 Universal Pictures Pty., Ltd. 43 21 United Artists Pty., Ltd. (Aust.) 1 18 21 Warner Bros. Pictures (N.Z.), Ltd. .. .. 1 22 11 RKO Radio Pictures (A'sia), Pty., Ltd. 1 29 36 'Columbia Pictures Pty., Ltd. 4 50 2 61 British Empire Films (N.Z.), Ltd. 8 53 11 21 Reliance Films, Ltd. 2 3 10 Miscellaneous 2 10 Totals... 31 309 17 280 * These figures were found in subsequent evidence to be inaccurate. See Table on page 7.