THE HON BRENDAN O’CONNOR MP

MINISTER FOR HOME AFFAIRS AND JUSTICE

SPEECH

CHECK AGAINST DELIVERY

Gametech Conference

Videolink to Luna Park Sydney

Tuesday, 21 June 2011

Topics: National Classification Scheme Review; introduction of an R18+ classification for computer games; growth of the computer game industry

It is my pleasure to be here today to address the Gametech conference, and to share the Gillard Government’s vision for computer game regulation.

My thanks to Ron Curry, CEO of the Interactive Games & Entertainment Association, for introducing me, and for chairing this important event.

Gametech is an important and very timely conference.

We are witnessing a period of rapid technological change in the computer gaming industry, which is creating exciting opportunities, and generating new audience expectations.

And, I don’t need to tell you that these expectations will drive creative development, and generate demand for new advances in technology.

As the Minister for Justice, I am a key player in the regulation of computer game content under the National Classification Scheme. But, as things stand, the Gillard Government is but one of nine players. Every State and Territory Government currently has an equal say in how computer games are regulated. This presents some challenges, as you are all aware.

Part of my responsibility is to ensure that the system of classification is adaptable – and is adapting – to technological change. To this end, the Gillard Government recently launched a comprehensive review of the National Classification Scheme, to be conducted by the Law Reform Commission.

The areas of inquiry that have been selected for the conference are significant for the future of the industry, and of great interest to me.

I understand you will be exploring topics such as the future of the Australian game development industry, the trends in the gaming app market, emerging models for distribution, and the interdependence and convergence of computer gaming with other media.

The scope of these topics suggests that computer gaming, along with other forms of media interaction, is now three things –portable, ubiquitous and networked.

That shift in the gaming experience will have a huge influence on the future of computer game classification, and content regulation more generally.

That’s why the Government understands that we have a responsibility to deliver, in partnership with you, reforms that achieve the important objective of minimising the regulatory burden on industry.

In 1996, when the current legislation underpinning the National Classification Scheme came into effect, it was based on what now seems to some to be an old fashioned paradigm—films viewed in theatres, video rentals, magazines and computer games purchased in retail outlets.

Remember 1996? Fifteen years ago, Adobe Flash technology was new and cutting edge, Facebook was yet to take over our lives and the original Tomb Raider video game was released. This franchise has since sold 35 million units.

Nobody imagined that people would be playing Angry Birds on their smart phones, while sitting on the train, with a free Wifi connection giving them networked interactivity with players around the globe.

Fifteen years on, this Government wants a vibrant computer game development and distribution industry in Australia.

The domestic game development market has grown remarkably in recent years, and can presently boast over 50 companies with more than 200 popular gaming titles to its credit.

Recent studies indicate that the computer games industry overall in Australia is worth over A$1.3 billion annually, and has an annual growth rate of 15%.

The success of local games design has recently been highlighted with the release of LA Noire, considered to be a ground-breaking game for its realistic depiction of characters and movie-like plot and game-play.

We recognise that convergence and globalisation have revolutionised the way people access their information and entertainment.

That is why we have taken a pro-active approach to ensuring that the classification system keeps pace with technological change and other developments in the marketplace.

Our plan includes the Review of the National Classification Scheme by the Australian Law Reform Commission to be lead by Professor Terry Flew.

The aim of the review is to address whether the National Classification Scheme continues to provide an effective framework for the classification of media content, and make recommendations for reform.

It is examining the regulatory practices in Australia and comparable systems overseas, and will refer any matters involving content delivery platforms to the Convergence Review, currently undertaken by the Government.

As a first step in the ALRC process, it has released its Issues Paper, which is available on its website.

That paper examines the existing policy rationale for the National Classification Scheme.

We need to come up with clear, simple and consistent rules for content classification that can adapt to any media content and distribution platform.

I believe it is critical that you understand that the review process offers you an opportunity, as key players in the industry, to contribute to this important public policy discussion. The Issues Paper is open to submissions until 15 July 2011.

I would strongly encourage you all to submit your views and ideas to the ALRC, either as individuals or through your relevant industry bodies, such as the iGEA.

Your contributions will greatly assist the Commission to provide well informed and deliberated recommendations for our consideration.

In addition to the independent Review of the National Classification Scheme, the Gillard Government supports the introduction of an R 18+ category for computer games.

Now, I imagine I’m preaching to the converted, but it is important to comment briefly on this matter.

It provides a case study in some of the broader difficulties of the National Classification Scheme.

The introduction of an adult game rating into Australia is a long overdue reform, one which has been on the agenda for close to a decade. It has sat on the reform agenda since 2002 and I think it’s fair to say that it’s time for a decision.

At the most fundamental level, an R 18+ category for computer games is required to give the Australian classification system parity with comparable systems overseas.

The purpose of this reform is two-fold. Australia needs a robust classification system that protects children from material that may be harmful, while also ensuring that adults are free to make their own decisions about the computer games they play, within the bounds of the law; and an R 18+ category will provide better information to parents and retailers, and help prevent children from accessing unsuitable material.

Under our current system – which has no adult game rating – games that contain adult content in their overseas versions are modified to have this removed, before they are classified and legally made available in Australia.

As you probably know, last year we conducted a public consultation process on the topic of introducing an R 18+ category for computer games.

We discovered that such a reform was supported by 98% of the (58,043) people who made valid submissions to the public consultation process.

In November 2010, before a meeting of Classification Ministers in December, 80% of people - across wide demographics - contacted in a nationwide telephone poll supported the introduction of an R 18+ category as well.

The high number here was particularly interesting as the poll was a random sample of Australians, from every State and Territory, not self-selected respondents like the earlier consultation had been.

To progress this reform, earlier this year we set about negotiating, with our State and Territory counterparts, the content of guidelines in support of an R 18+ category.

These guidelines are a necessary component of our proposed reform.

The draft guidelines were released to the public last month. So far the feedback has been very positive.

We are accepting comments up until tomorrow so jump online if you want to let us know what you think about the draft guidelines, and the introduction of an R 18+ category.

The feedback we receive will inform Classification Ministers’ discussions on 22 July in Adelaide, when we meet to make a decision on the introduction of an R18+ category for computer games.

The Gillard Government is committed to balancing freedom of choice with responsibility in this policy area, and we believe an R 18+ category for computer games is the right way to implement that commitment.

Recently, I met with a group of future computer game developers studying at Ballarat University.

It was clear to all of us that the present changes to the media landscape are profound, and the increased share that computer games have of our entertainment dollar is part of this transformation.

The industry in Australia is now more than double the size of the film box office, and more than 40 percent larger than the DVD industry. As recently as last Saturday, the Sydney Morning Herald reported that last year’s hit game – Call of Duty: Black Ops – has already grossed more than $US1 billion. Fewer than 10 films released in the past decade can claim the same. More starkly, in 2010 the total US box office was worth $US10.6 billion. The estimated annual revenue of the gaming industry was nearly double, at $US18.6 billion.

This Government wants to do all it can to ensure this remarkable growth continues to foster a strong local computer game industry, particularly the game development industry, which now boasts more than 50 companies and over 200 game titles to its credit.

This Government recognises that removing obstacles to growth will allow those young game developers I spoke with to flourish.

We are passionate about encouraging the development of a large skill base of creative talent in this sector, and that’s why we are delivering on the NBN and appropriate regulation.

This Government believes that Australians want and deserve a classification system that respects the intelligence and autonomy of responsible adults in the community, and equally protects minors from material that may harm them.

We anticipate that the Classification Review will make an important contribution to this Government’s drive to develop such a world-class regulatory scheme.

In the meantime, I am looking forward to working with you, and ensuring that you are able to participate fully in our reform agenda.

Thank you once again for inviting me, and for listening to me today.