BROADCASTING SERVICES

Press, Volume LXXVI, Issue 23086, 31 July 1940, Page 8

BROADCASTING SERVICES

ANNUAL REPORT TO PARLIAMENT COMMERCIAL STATIONS SHOW PROFIT ‘From Our Parliamentary Reporter.! WELLINGTON, July 30. A net profit of £22,056 was made by the National Commercial Broadcasting Service during the year ended March 31 last. This is shown in the annual report on the national broadcasting services, which was presented in the House of Representatives to-day. The report states that this profit permits of the writing off of the remainder of the outstanding fire loss at Station 3ZB, Christchurch, and removes from the balance-sheet the accumulated adverse balance of some £2710 shown at the end of the previous financial year. A reserve of £13,400 has been set aside to meet income tax charges imposed on State commercial undertakings lor the first time this year. The net result is to show a favourable balance to date of £417. • , “in each balance-sheet since the inception of commercial broadcasting, stales the report, "the total of advances to meet the cost of establishing the service has shown successive increases until, at March 31, 1939, the amount owing stood at £101,926. During the last year the balance was reduced by repayments totalling £33,000. As an offset to this figure, charges for interest (£3678) and copyright (£4421) have been added to the balance, leaving a net decrease of £24,901 in advances which, at March 31, 1940, stood at £77 025.” An analysis of the income and expenditure account shows that general administrative expenses, including participation in the exhibition, were £116.360. while expenditure on programmes amounted to £11,853. A sum of £1270 is allowed for bad debts. Sales of station time brought in £171,547. The balance-sheet of the National Broadcasting Service shows that capital expenditure totalled £24,042, of which £9369 was expended on the foundations of the new broadcasting house at Wellington. A further £155,000 was invested temporarily for future capital commitments. The total income was £407,991, and £140,840 was transferred ,to accumulated reserves. Reserves now stood at £698,362. The income from licence fees was £380,470, and expenditure on programmes £110.410. At the end of the financial year, the commercial service’s indebtedness to the national service was £77.025. Income from licence fees was £27,379 in excess of income from these fees in the previous year. Total expenditure increased by £23.457. This was due mainly to expenditure incurred in the publication of the “New Zealand Listener.” Expenditure on this journal during the year was £30,437, and the revenue £18,096. This excess of expenditure over revenue is accounted for by the preliminary expense of establishing the “Listener,” and the cost of the first issue involving free distribution of 180,000 copies. DISCUSSION IN THE HOUSE COST OF PUBLISHING THE “LISTENER” \ “ NEW IZB BUILDING IN AUCKLAND [From Our Parliamentary Reporter.] WELLINGTON, July 30. The administration of the National and Commercial Broadcasting Services came under critical revietv from Opposition and Independent members in the House of Representatives to-night, when the broadcasting account was discussed. The Prime Minister (the Rt. Hon. P. Fraser), who is Minister in charge of Broadcasting, took urgency for the disposal of the vote. The Leader of the Opposition (the Hon. A. Hamilton) asked the Minister whether he did not think that publication of the “New Zealand Listener” was costing the account a lot of money. The revenue last year for the journal was £18,096, and expenditure £30,437. Mr Fraser: That was initial expenditure. It is just about paying its way now. Mr Hamilton: It shows a loss for last year of a little over £12,000. . The Leader of the Opposition asked how many copies 'of the “Listener” were paid for. Mr Fraser: The journal has 40,000 circulation with very few free copies. Mr Hamilton: Of 345,000 licenceholders, only 40,000 take the “Listener.” Mr Fraser: A good many of them must borrow it. (Laughter.) Mr Hamilton asked whether the Minister would not be wise to consider a reduction of licence fees. “We have what is, I suppose, the highest licence fee in the world,” Mr Hamilton said. “It is a wonder the Minister for Finance has not had a look at this capital nest egg. Big reserves are being piled up.” It was a marvellous thing, Mr Hamilton added, that while Broadcasting House in Wellington and the new national station building in Dunedin had been shut down, the commercial service could get its £70,000 or £BO,OOO for a new building in Auckland. It had come to his ear, he said, that the size of the Auckland building was largely brought about by the 'large influx of people in some of the items of the “friendly road,” such as choirs. Mr J. A. Lee (Democratic Labour, Grey Lynn): The old building is so small I don’t know how it was jammed. Explaining the need for a new building in Auckland, Mr Fraser said the Government had received very devastating reports regarding conditions under which employees were working in 1ZB; It was -a report no Government could ignore. In fact, the Health Department had threatened to have the old station closed down. Station IZB would be housed in part of the new building, and the rest of it would be let to other Government departments, or to private business firms. Referring to the “Listener,” Mr Fraser said part of the expenditure went in buying out the “Radio Record.” Then there had been a free issue of the “Listener” of 380,000 copies. Its circulation had risen- from 30,000 to 40.000 recently. “Everybody will share in the pleasure at the commercial service having turned the corner after a considerable struggle,” Mr Fraser said. “It shows a substantial profit, which will pay a considerable amount to the national exchequer.” Mr Hamilton; How is it able to reduce its capital? Mr Fraser: From the reserves it has built up. An Opposition member: It was putting away reserves, was it? The Minister for Defence (the Hon. F. Jones): It set aside certain sums for depreciation. While there were big reserves in the national service, the Prime Minister said, these were being used by the Treasury. This applied to the amount that would have been used in building Broadcasting House.

REDUCTION IN FEE SOUGHT MR KYLE’S AMENDMENT . fFrom Our Parliamentary Reporter.] WELLINGTON, July 30. As an indication that licence fees should be reduced, Mr H. S. S. Kyle (Opposition, Riccarton) to-night moved in the House of Representatives that the total vote for broadcasting be reduced by £lO. His amendment was defeated by 37 votes to 17, the voting being on strictly party lines. Neither the Hon. W. E. Barnard nor Mr J. A. Lee, the two Democratic Labour members, voted. “The debate has been on party lines, and I will soon give the Government side an opportunity to show whether their feelings are towards the licence holders,” said Mr Kyle. “If the licence fee was reduced by 5s per annum, a considerable sum would be given back 'to listeners. They had to pay national security and social security taxes, and it-was up to the Government to say to the workers: ‘We are giving you something.’ ” . The Government had been in office for five years, and given the workers nothing. (Government laughter.) As soon as Mr Kyle moved his amendment, the Prime Minister moved the. first closure of the session. On the amendment being defeated, the vote as a whole was passed without further discussion.