AIR ADVERTISING.

Auckland Star, Volume LXVII, Issue 136, 10 June 1936, Page 10

AIR ADVERTISING.

DOMINION CONTROL

COMMERCIAL STATIONS. PROFITS FOR GOVERNMENT. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. A statement that some newSpapeie wanted to have broadcasting stations was made by the Poet masters-General, Mr. Jones, in his second reading speech in the House to-night on the Broadcasting Bill. Mr. Jones said he had received applications from New Zealand Newspapers, Ltd., Christchureh, the "National Magazine," the "Bay of Plenty Press'" and the "Point Blank Press" Company. A station in Auckland, controlled and owned by a newspaper, wanted the right to advertise. Sixty-one applications had been received for B station licenses from various organisations throughout the country. The Minister tlien quoted extensively from a speech made in Australia by the Hon. Mr. Parkhill, who, he said, wne Minister of Defence, and formerly Post-master-General in the Commonwealth Government, the speech expressing strong opposition to newspapers and broadcasting companies combining for commercial advertising. Mr. Jones said that Mr. Parkhill was not a Labour member, but he quoted his remarks to show the danger of the same position arising in New Zealand. In the Commonwealth there were 05 B fltatione or commercial stations and Mr. Parkhill had stated that newspapers directly or indirectly controlled a number of" those stations. One newspaper proprietor had eleven* stations. One could imagine the monopoly created if advertising rights were granted to newspapers or syndicates in New Zealand. Big profits were being made in Australia by stations that did not receive any revenue from listeners' fees. Screen Advertising. According to remarks made' by members of the Opposition oh the previous night, eaid Mr. Jones, there would be objection to the Government attitude on advertising. "They"are out to protect their friends the newspapers," he eaid. They would put up a eraoke screen and say that listeners would have to be protected. When people went to the picture theatres they put up with a quarter of an hour "of screen advertising. Nobody objected to that and he did not think "there would be any objection to commercial advertising on the air. Sir Alfred Eaneom (National, Pahiatua): Do you think screen advertising a source of entertainment.

The Minister: Some is very well done

Continuing, the Minister said that in America as well as in European countries and Australia there wns a demand for radio advertising and the only question that arose was whether it should be in the hands of individuals or the Government. "We -think the Government should be in control," he continued. "We do not want to Ret into the position that Mr. Parkhill says has taken place in Australia. We do not want to see eiich a etate of affairs here. If radio advertising is to be allowed we think we should control and own it and decide what advertisements are to tro on the air. That is the best way to handle it." Profits in Australia. The Minister went on to quote the profits made in Auetralia. One station had made a profit of £58,000 from a revenue of £100,000, which was equal to 100 per cent. In 1935 one company paid a dividend of 300 per cent and another made a profit of £3000. If profits wore to be made why should they not go to the Government? he asked.