EMPIRE PRESS UNION DEBATES CABLE COSTS

Press, Volume XCV, Issue 28314, 27 June 1957, Page 9

EMPIRE PRESS UNION DEBATES CABLE COSTS

(N.Z. Prtu Association—Copyright)

(Rec. 11 pjn.) LONDON. June 25. Newspaper chiefs and executives of Commonwealth countries today emphasised the need to maintain cheap communications in the Commonwealth and extend them to other parts of the world. They were speaking at the annual conference of the Commonwealth Press Union.

Sir Godfrey Ince, Chairman of Cable and Wireless Limited, the vast Commonwealth communications organisation, maintained that the penny-a-word rate for press messages in the Commonwealth was uneconomic.

He said that a graphic illustration of this was that the company was £24.000 out of pocket over the recent Bermuda conference between the British Prime Minister, Mr Macmillan, and President Eisenhower.

An Australian delegate, Mr R. A. G. Henderson, of Sydney, declared: “The issue as far as we are concerned is a very simple one. It is vital in the interests of free communications and the maintenance of Commonwealth relations that we get the cheapest possible means of communication. “Basically we are not concerned with the problems confronting the organisation whose purpose it is to supply that service. The issue is the simple one that without a cheap means of communication, you cannot get the exchange of information which is vital to the interests of every constituent member of the British Commonwealth.”

Mr C. Fleetwood-May, of Reuters, chairman of the C.P.U. tele-communications committee, said the Commonwealth penny press rate was “a progressive and enlightened approach to the problem of exchange or information.

“We would like to see this enlightened approach extended. Many parts of the world are stijl dark areas, where the free exchange of information is impeded by unnecessary communications difficulties.”

Sir Godfrey Ince said that if the company was to maintain its dividend payments to the Treasury, the need for a general rate increase was urgent. “I fully understand the case xfor a preferential press rate,” he said. ‘‘What is not clear to me is whether your view is that the press rates should be economic, or should be subsidised. If you feel they should be subsidised I wonder who, in your opinion, should pay the subsidy? “If you are going to put forward proposals that involve a subsidy I suggest you must make up your minds as practical men and as businessmen, as to who you propose should pay the subsidy.”

Mr Henderson said it was common practice in industry that one type of traffic should subsidise another type and the cost of the service was not measured in isolation. “The free transmission of news enormously influences the volume of other types of business. If you have no cheap news communications the volume of other traffic inevitably must be affected.

‘‘The British Broadcasting Corporation overseas service must cost this country a great deal of money, but measured in the return of monetary values you get almost nothing back,” Mr Henderson said.

‘‘But it is an essential part of the 8.8.C.’s function to transmit news services and other services abroad. ‘‘Similarly it is an essential function of Commonwealth Wireless to do the same thing. This is a government institution with certain national functions and the problem has to be approached from that point of view.” Mr Fleetwood-May said the average rate for press messages worked out at 2jd a word, and certainly not a penny, owing to the system of charging sixpence a word for urgent messages. “I do not think that Cables and Wireless and the Post Office are doing so’badly after all,” Mr Fleetwood-May said. “We do not want subsidies, but we do not want to be charged artificially high rates which go towards subsidising the cable company, and towards raising revenue. We want to be given the full benefit financially of more modem technical developments.”

Sir Godfrey Ince replied: “I can assure Mr Fleetwood-May that whatever system of accountancy you adopt, we lose money. I do not express a view as to whether the penny rate should be increased or not All I have been concerned to do is to state the economic facts as far as the company is concerned.”

Costly Free Rides.—A total of 7.353,340 people were caught trying to ride the Indian railways without tickets last year, the Deputy-Minister of Railways told the Lower House in answer to questions. This cost the railways a total of £1,200.000, the DeputyMinister said.—New Delhi (Reuter).

Television for Jugoslavia.—The Croatian capital of Zagreb will begin transmitting Jugoslavia's first regular television programme by the end of 1957. Since an experimental television programme was started last spring, citizens of Zagreb are now also able to watch Austrian and Italian television programmes through relay stations.—Belgrade (Reuter).