Senator MARK BISHOP (10:23 PM) —by leave—I move opposition amendments Nos 1 to 18 on sheet 1431:

(1) Amendment 39, clause 158A, after "in writing", insert "or by other specified means".

(2) Amendment 39, paragraph 158B(2)(a), omit "standard telephone", substitute "carriage"

(3) Amendment 39, omit paragraphs 158B(2)(e), (f), (g) and (h), substitute:

(e) the voice call is made to a number with an approved prefix;

and one of the following paragraphs applies:

(f) the relevant customer has agreed:

(i) in writing; or

(ii) by telephone or other electronic means;

to the use of a carriage service to supply telephone sex services in general and the carriage service provider is satisfied as to the identity of the relevant customer;

(g) the telephone sex service provider has reason to believe that:

(i) the relevant customer has been issued with a Personal Identification Number under an access arrangement with a telephone sex service provider that is determined by the ACA to be an appropriate access arrangement; and

(ii) the end user of the telephone sex service has used the Personal Identification Number referred to in subparagraph (i) to access the telephone sex service;

(h) the telephone sex service provider has reason to believe that:

(i) the relevant customer has been issued with some other means, approved by the ACA, of limiting access to other persons to telephone sex services supplied using a carriage service (an approved access limitation means ); and

(ii) the end-user of the telephone sex service has used the approved access limitation means referred to in subparagraph (i) to access the telephone sex service.

(4) Amendment 39, at the end of subclause 158B(2) (after Note 2), add:

Note 3: Appropriate access arrangement is defined by section 158GA.

Note 4: Approved access limitation means is defined by section 158GB.

(5) Amendment 39, subclause 158B(6), omit "paragraph (2)(e)", substitute "paragraph (2)(f)".

(6) Amendment 39, subclause 158B(6), omit "standard telephone", substitute "carriage".

(7) Amendment 39, at the end of subclause 158B(6), add "by way of a voice call".

(8) Amendment 39, subclause 158B(7), after "supplied" (first occurring), insert "by way of a voice call".

(9) Amendment 39, subclause 158B(7), omit "standard telephone" (wherever occurring), substitute "carriage".

(10) Amendment 39, subclause 158B(8), omit "standard telephone" (wherever occurring), substitute "carriage".

(11) Amendment 39, paragraph 158D(1)(c), omit "standard telephone", substitute "carriage".

(12) Amendment 39, paragraph 158D(1)(d), omit "standard telephone", substitute "carriage".

(13) Amendment 39, clause 158G, omit "paragraphs 158B(2)(e), (f) and (g) are", substitute "paragraph 158B(f), (g) or (h), as the case requires, is".

(14) Amendment 39, after clause 158G, insert:

158GA Appropriate access arrangement

(1) For the purposes of this Part, an access arrangement between a relevant customer and a telephone sex service provider for the provision of access to telephone sex services supplied using a voice call to a carriage service is an appropriate access arrangement if the arrangement is an arrangement of a kind specified in a written determination made by the ACA for the purposes of this subsection.

(2) The minimum requirements for an appropriate access arrangement are as follows:

(a) a customer must make an application to a service provider for a Personal Identification Number;

(b) the telephone sex service provider must not issue a Personal Identification Number to a customer without first receiving an application from the customer and unless the telephone sex service provider also provides the customer with an identity authentication card;

(c) before issuing an identity authentication card, the telephone sex service provider must verify the customer's identity in a manner determined by the ACA;

(d) the identity authentication card must be linked to an automated verification system to which the customer may gain access using a telephone service with a 1800 prefix or other prefix as determined from time to time by the ACA;

(e) the customer may use any suitable telephone to gain access to telephone sex services following customer verification through the automated verification system using the identity authentication card and Personal Identification Number;

(f) the ACA must consult with carriage service providers, telephone sex service providers and bodies that, in the opinion of the ACA, represent carriage service providers or telephone sex service providers before determining that an access arrangement is an appropriate access arrangement.

(3) A determination under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

(15) Amendment 39, after clause 158GA, insert:

158GB Approved access limitation means

(1) For the purposes of this Part, a means of limiting access to telephone sex services supplied using a voice call to a carriage service is an approved access limitation means if the means is of a kind specified in a written determination made by the ACA for the purposes of this subsection.

(2) The ACA must not make a determination under subsection (1) without first consult ing carriage service providers, telephone sex service providers and bodies that, in the opinion of the ACA, represent carriage service providers or telephone sex service providers .

(3) A determination under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

(16) Amendment 39, subsection 158J(1), omit "standard telephone", substitute "carriage".

(17) Amendment 39, section 158K, omit "standard telephone", substitute "carriage".

(18) Amendment 39, section 158K, after "services" insert "by way of voice calls".

Opposition amendments Nos 1 to 18 deal with the issue of telephone sex. We discussed this last time we met, some two or three weeks ago. The opposition has withdrawn its original amendment and substituted it with amendments Nos 1 to 18. When the Senate last met, I indicated the commitment that Labor has to the amendments we have said we will move with regard to this legislation. In the last few weeks we have received extensive representation from telecommunications service providers and their representative bodies. They have given a great deal of attention to the potential for collateral damage to these industries that might arise from the government's proposals. Today the opposition has circulated further amendments to this bill that we feel both reinforce the position taken by the Labor Party during the previous debate and extend greater certainty to the telecommunications service providers in this country who feel that the government proposal will cause inadvertent damage to their businesses.

Modelling by the industry has indicated that, at best, the entire 1900 telephone service industry may suffer from a decline in revenue of up to $75 million, which represents approximately $13.5 million in lost taxation revenue for the government, and, at worst, the revenue will tumble by $150 million, which would mean taxation revenue cuts of approximately $22.2 million. The damage that these revenue declines may cause to the rest of the 1900 industry could be catastrophic. Many agencies and organisations use 1900 services to inform the public and operate their businesses. These include major media outlets, state and local government agencies and a range of small businesses and information providers. The opposition amendments to this bill will provide common ground between the objectives of preventing the misuse of these services by minors and unauthorised users and minimise damage to industry and loss of revenue and employment opportunities arising from such damage.

Firstly, we reiterate our belief that industry must be given 12 months to prepare for any changes to the access regime for these services in order to allow both carriers and information service providers an opportunity to implement appropriate access mechanisms and to fully inform staff and customers about these changes. The minister has tried to have us believe that Telstra has a different view on the time it will take to implement such changes, stating that it had said it could be done in six months. In fact, Telstra has not moved from its position that it will take it at least 12 months to develop appropriate access mechanisms.

Secondly, we seek to move further amendments which will serve to allow a certain portability of identity authentication in this industry. We will move to allow calls to these services to be made under specific access mechanisms agreed to by the telecommunications service industry and the Australian Communications Authority. For example, the ACA may approve a system where calls to these services may be made from any phone by customers using a unique personal identification number and a phonecard linked to a 1800 based identity verification system.

In conclusion, when we put forward the amendments on the last occasion we indicated that we wanted our amendments to be considered seriously. We circulated further amendments this morning. We have spoken to the background already and will explain it in more detail in a few moments. We indicate to the chamber that the imposition of the guillotine changes the whole situation and the opposition is reviewing its position on the issue of phone sex.

Just fleshing out the amendments Nos 1 to 18 which have been circulated, we have identified three major deficiencies in the government proposal. The opt-in arrangements are inflexible and may unfairly impact on unrelated parts of the telephone information service industry. The opt-in can be undertaken only in writing and does not reflect current technology and accepted practices in terms of identification and services available by telephone, facsimile and email. Also, six months is an insufficient period of time for the carriers to implement the required PIN infrastructure.

The Labor amendments will: extend the period of time before the introduction of the measures in the bill from six months to 12 months to allow carriers and industry to develop authentication mechanisms and to inform the customers of adult telephone services of the change from the 1900 prefix to the 1901 prefix; broaden the method by which customers can opt in to these services by including applications made in writing, by telephone or by other electronic means; provide for a mechanism which allows secure authentication that is portable, which customers can use to access adult telephone information services from any telephone service by use of a unique phonecard and PIN system—this system will be known as an approved authentication means and must be approved by the Australian Communications Authority by way of a disallowable instrument; and, finally, require the Australian Communications Authority to consult with carriers, telephone service providers and information service providers with regard to the technical detail of such an approved authentication means.