Dr. Llewellyn Critical Of Govt. TV Delay

Press, Volume CIII, Issue 30592, 7 November 1964, Page 1

Dr. Llewellyn Critical Of Govt. TV Delay

(From Our Parliamentary Reporter) WELLINGTON, November 6. “The Government’s procrastination in deciding what to do about the television second channel proposals made by the New Zealand Broadcasting Corporation in March is becoming serious,” said the chairman of the corporation (Dr. F. J. Llewellyn) this evening.

“More than eight months have gone by since we first presented our submissions to the Minister of Broadcasting and, in the meantime, the corporation is becoming increasingly embarrassed by pressures and inquiries from many quarters on this question.

“The N.Z.B.C. had as its immediate objectives the provision of a television programme that would be available to everyone in New Zealand. This was to be followed by the introduction of a second channel, the development of studio facilities so that the amount of locally produced material in both programmes could be increased, and the establishment of a microwave link between the main centres to allow the simultaneous broadcasting of news, sport and other programmes from all of the transmitters.

“Progress toward the first of these objectives is being made and permanent transmitter buildings and masts are coming along. Our proposal for the introduction of a second channel is economically sound since these permanent buildings have been designed to accommodate an additional transmitter and the permanent masts will also have space for a second aerial array. “Furthermore, the total operating costs of the two services, because of the sharing of administrative, engineering and technical resources, would be considerably lower than for two such programmes under separate control. “Has Finance” “The corporation has sought the approval of Government to its proposals because it is required to do so by the Broadcasting Act. The corporation is not seeking any financial assistance. It has the financial resources progressively to introduce a second channel, to establish studio facilities at Avalon in Lower Hutt, and eventually to install a micro-wave network. “Not only are the proposals of the corporation for the development of television the most economic, they are also, I believe, the most satisfactory from the viewer’s point of view. Contrary to widespread belief, competitive

television does not necessarily provide viewers with alternative fare. “A second channel, operated by the corporation, would achieve this objective. The eventual provision of such alternative programmes over the whole country will provide viewers with a wide range of entertainment, topical, educational and socially valuable programmes, in a

way which could not possibly be achieved if there were two independent broadcasting authorities competing one with the other for revenue and for the audience. “The extremely rapid buildup of the television audience in New Zealand—very much more rapid than was envisaged two years ago—has made it possible for the corporation to accelerate the introduction df this second channel. We are prepared to proceed forthwith when Government finally makes its decision.”

N on. Commercial

The broadcasting corporation had not sought either a further commercial channel or a non-commercial one in its application to the Government for permission to establish a second channel, Dr. Llewellyn said in an interview later this evening.

“My personal view, however, is that the existing channel should become solely commercial and the second one be non-commercial.” Dr. Llewellyn said he would not dispute estimates that about £1 million worth of advertising was readily available to a second channel. A second channel would provide greater opportunity for the corporation to do justice to New Zealand talent, but enhanced production facilities would be needed. “We cannot do justice to it on the one existing channel,” he said. Dr. Llewellyn said the corporation could provide a second channel at a lower cost than anyone else in the country, with less drain on overseas funds. He thought the cost of providing the channel, with stations in each of the four main centres, the first being in Auckland, and the second in Christchurch or Wellington, would be about £1.5 million. More Sets Sold “I wish to emphasise that a second channel can be provided within the total financial resources of the corporation’s capital structure,” he said. Official sources said this evening that a major factor in the corporation’s impatience with Government inaction over the application was the rapid above-estimate rise in the number of television sets being sold. There are estimated to be 260,000 television licence hold-

ers in the country and this number is increasing by 14,000 each month. If this rate of increase is maintained over the next five months the corporation will start the 1965-66 fiscal year with an assured income of more than £1.75 million from licence fees alone. It is understood that if the corporation’s application was granted by the Government it would step up advertising on the present channel in an attempt to absorb as much as possible of the £1 million worth available. Cabinet Views Observers believed the Minister of Broadcasting Mr Scott, has been sounding out opinion among members of the Cabinet on whether or not the corporation should make the second channel a commercial one, or alternatively whether the second channel should be a commercial-pri-vate one. He has frequently expressed the opinion that he believes the corporation should establish a non-commercial channel before a licence is granted to a private company. Official sources say both members of the Cabinet and the caucus have stressed that a primary one-channel cover should be established throughout the nation before a second channel is started. They say a lure for Government approval of a second corporation channel has been suggestions that if the corporation was able to absorb the extra advertising revenue available it would be able to reduce the amount of the licence fee. Government members have been surprised that little outside pressure has been exerted to have, a private channel authorised. So far, only one application has been received —from an Auckland public relations consultant.