The Press MONDAY, JULY 25, 1960. Broadcasting Funds

Press, Volume XCIX, Issue 29265, 25 July 1960, Page 14

The Press MONDAY, JULY 25, 1960. Broadcasting Funds

The radio licence fee fixed six years ago seems to have been about right, though at first the increase appeared too small to meet the peculiar circumstances of the New Zealand Broadcasting Service. Indeed, in 1956-57 the accounts showed a small deficit after the Post Office had substantially raised its charge for collecting licence fees. However, this setback has been made good by steadily rising revenue and rising surpluses. An important factor has been our growing population. For instance, the number of licensed receivers increased last year by 15,000. The service's reserve funds are being built up again, and last year’s handsome surplus of £166,644 is reflected in an increase in investments to £1.7 million. This is a useful nest egg, the interest on which makes an appreciable contribution to annual income. The balance will, however, be much reduced by the service’s building programme, including Broadcasting House in Wellington, for which a contract has been let Much more serious is the probability that the heavy capital expenditure planned for television will be financed in the same way, thus wiping out both the reserve and its contribution to broadcasting 'income. Since the annual report of the director (Mr J. H. E. Schroder) is silent on the point we must wait for Parliament to elicit the information from the Minister (Mr Boord).

How far ordinary radio listeners should be expected to underwrite television is argu-

able. Admittedly they might be helping to establish a highly profitable enterprise, from which they might in time benefit indirectly, if not directly. On the other hand not all the present generation of listeners will share in the benefits of an eventually successful television business. Already listeners relieve the general taxpayer of a little of his obligations. They do this partly because of the anomalous practice of levying income tax on only part of the broadcasting business and partly because broadcasting receives no compensation for various national services, such as the circulation of weather reports and the educational activities of the National Orchestra. Since the net effect of these arrangements is small, the average listener gets a reasonable return for his £1 10s a year. However, if the Broadcasting Service begins to spend too large a proportion of its resources on television, radio listeners will be getting something less than value for their money. It is satisfactory that broadcasting, while providing important national services and entertainment, has been able to build up funds to finance its own development. But this financial stability should not be regarded as an invitation to the Government to juggle with the funds. The aim should be to make television self-supporting and that should include making a proper contribution to the broadcasting account for all services received, such as, for example, performances by the National Orchestra.