[1] The Act was introduced at the behest of New South Wales' Premier Bertram Stevens.
Its ultimate impact turned out to be limited due to a loophole in the legislation.
The use of the word "acquire" meant it was considered that the act was drafted to reflect exhibition of films, not ensure production; distributors argued they had no obligation to produce movies.
[2] Some American distributors made veiled threats to remove Hollywood films from exhibition.
[3][4] In 1937 the New South Wales government decided not to force distributors to participate in production.