A REPORT into the state's sex industry has found that children are almost certainly being used as prostitutes in Tasmania.

The State Government report also found workers were at risk and that laws to protect them are failing and must be changed.

It also called for brothels to be legalised.

Many prostitutes told the review they were too scared to seek help because they were unsure if they were breaking the law.

The report, tabled in Parliament yesterday, reviewed the controversial Sex Industry Offences Act 2005.

The report, by the Department of Health and Human Services, said the health of sex workers and the community "will best be safeguarded by the legalisation of brothels and the development of services to protect the right of sex workers".

The Act made it legal to be a prostitute and provide sexual services in Tasmania but made it illegal for a person to employ or control the profit of an individual worker.

It made brothels illegal and was intended to ensure no children were working in the sex industry.

It also aimed to protect prostitutes from exploitation.

However, the review found the laws were not working and were potentially harming sex workers.

No breaches of the law were reported, making it likely brothels were operating under the law.

A House of Assembly community development committee inquiry more than a decade ago found up to 15 brothels operated in Tasmania.

The Department of Police and Emergency Management told the new review that two former operators of commercial sex businesses "have altered their business" and now sub-let rooms in hotels and houses to individual sex workers for periods of eight hours.

The report stated this may be fudging the law.

"There is no evidence that the landlords are commercial operators within the meaning of the Act, although they do indirectly profit by renting out the rooms," it stated.

"According to the submissions there is also a concern that in a situation where the owner is taking a hands-off approach, inevitably one of the persons on-site will end up managing some part of the service and therefore be breaking the law."

Alarmingly, both the Australian Christian Lobby, which is against prostitution, and the industry representative body Scarlet Alliance both believe the Act was not protecting workers from exploitation - but for very different reasons.

The ACL believes no law would be able to protect a person from exploitation in the sex industry because it was inherently wrong.

But the Scarlet Alliance said the criminalisation of brothels made many workers unsure of their legal status.

Attorney-General Lara Giddings said she expected the review would generate considerable debate.

"The Government will consider the recommendations of the review," she said.

Link to original article