Australia's major distributors have been warned that there is no justification for charging first week terms to regional cinemas that do not get films until several weeks after their national release, just because it is new to that district.

The deadline for submissions into the current cinema industry code of conduct has only just passed, but it is already evident that this remains a significant problem.

"I have yet to be convinced there is justification for this practice," the Australian Competition and Consumer Commission's Ross Jones told delegates at the Australian International Movie Convention. "The ACCC is very concerned these instances are still occurring, especially after there has been so much discussion on the issue."

Jones also named minimum season lengths, delayed notification of film hire rates, the speed with which disputes are resolved under the resolution mechanisms of the code, and a perception that the system lacks teeth, as other key issues likely to be considered under the current review. The final report is expected within a month.

Jones, chair of the code administration committee John Dickie and code conciliator David Newton all took the stage at the convention during a seminar to mark the code's third birthday. All three also had good news, particularly the increased communication between independent exhibitors and major distributors, the main combatants under the code.

A number of recent procedural changes are also proving their value. In the five weeks since it became possible for exhibitors to ask the code secretariat by telephone to intervene immediately in disputes, the eight matters that have arisen have all been resolved.