Advertising Policy Of N.Z.B.C. ‘Discriminatory’

Press, Volume CX, Issue 32391, 2 September 1970, Page 32

Advertising Policy Of N.Z.B.C. ‘Discriminatory’

(New Zealand Press Association} WELLINGTON, September 1. The NZB.C.'s advertising policy actively discriminated against many New Zealand manufacturers and businesses, Mr G. W. J. Dryden, the main witness for the Associated Network Group, said today a e Broadcasting Authority’s inquiry into television services.

The group, sponsored by four major New Zealand companies—U.E.B. Industries, Ltd, Kerridge Odeon Corporation, Ltd, Wright Stephenson and Company, Ltd, and J. Wattie Canneries, Ltd —is seeking a second and independent television channel.

Mr Dryden said many manufacturers and businesses could not obtain access to evening television advertising time while their competitors could.

“Competitive enterprise can be very greatly and unfairly handicapped by this inability to advertise on ‘elevision,” he said. The existing system tended to favour large manufacturers, and certainly existing manufacturers against rising ones.

“Because the NI.B.C.'s policy encourages large advertisers with annual contracts who can afford to purchase package-deals involving a combination of national television, radio, and “The Listener,” many small advertisers feel that the big companies can literally buy their way to the head of the queue for television time," he said. New Zealand needed commercials on both its first two television channels, not only to finance much better programming but also to satisfy the needs of both the advertisers and their customers. “Timidity” In News He said monopoly control of news media, by its very nature, inevitably tended to breed distortion. “And, when it is a government or govern-ment-created monopoly, it often breeds timidity and nervousness in news and news presentation.” he said. Had the Graham Kerr programme, “The Galloping Gourmet,” been developed from New Zealand in colour. Its earnings would have more than paid for every television programme imported into New Zealand in the last two years, Mr Dryden said. If a non-Government television operator was to build a record tax-paid profit of more than s7m in three yean, while spending less than $lOO,OOO in one year on local television performance fees, the company would rightly be criticised for acting contrary to the public interest, he said.

In 1969. after 10 years of one-channel television. 99.7 per cent of the drama on New Zealand screens came from abroad, mainly from the United States and England.

“I understand the NJZ.B.C. has plans to increase its total drama output to 15 hours in 1971, but even this would be only a fraction over 1 per

cent of the total drama shown on our screens,” he said. A first step for a second network would be to undertake a comprehensive training programme for writers, producers, directors, and artists. If it had Auckland as its headquarters it could work in close conjunction with the existing Mercury Theatre. “A Pittance” Compared with the present educational budget only a pittance was being, spent on planned educational television.

Because of its Government base, it appeared logical that the N.Z.B.C. should continue to be the main medium for instructional radio and television. The second network, in the short term, should concentrate on pre-school and parent education. “We favour the establishment of a national educational television organisation to act largely as a planning and co-ordinating centre,” he said. The main purpose of the organisation should be to employ a core of outstanding educationists with the right to define priorities, allocate necessary funds, and organise the activities needed to spread the effect of good educational television.

It should be financed by receiving a quarter of all television licence fees, a percentage of warrant fees paid by the N.Z.B.C. and the operators of the second network, contributions from educational bodies, and Government grants. The second network should transmit programmes for up to 70 hours a week, Mr Dryden said.

Programme content should be the responsibility of each network organisation within a code of practices and balanced guidelines laid down by the authority. Apart from films, the network operators should carry out their own censorship. Examined by Mr D. S. G. Deacon, for the Television Producers and Directors’ Association, Mr Dryden said the group would be prepared to

recruit and train at least 90 per cent of its opening staff from non-N.Z.B.C. employees. However, while it might be unfair to recruit a big percentage of the second channel’s initial staff from the corporation, to prohibit the recruiting of staff would be a gross interference with the right of the individual to apply for a job of his choosing. r

If its submissions were accepted in full the network would be prepared to transmit nationally right from the start, subject to it being permitted to have seven minutes an hour advertising content. Mr Dryden told Mr R. J. Simpson, representing the New Zealand Producers, Directors and Writers’ Guild, that the network would be prepared to devote 33 per cent of prime time to locally produced ■ programmes. The network would produce commercials, and thus would compete with local production houses in this field. Examined by Mr R. L. MacLaren (Radio Hauraki), Mr Dryden said the network’s initial share or convertible note capital would be about ssm, but this depended on several factors, including the terms available for purchasing equipment from overseas.

The group had recommended reciprocal trade arrangements as a way of obtaining overseas funds for the purchase of equipment, and in U.E.B.’s case this would be possible with carpet yarn and semi-processed wool.

The examination was interrupted by the adjournmeni and will resume tomorrow after examination of two other witnesses who gave evidence today. They are Mr A. Martin, a producer with the Australian Broadcasting Commission, and Mr R. Thyer, director of engineering and operations of Channel 10, Sydney.

Mr Thyer has been retained on a part-time basis as a consultant to the group and today gave evidence relating to costs involved in establish ing a second channel.

Not Paid Mr Martin, a former N.Z.B.C. employee, told the authority he had been invited by the group to give evidence and said he was not being paid, nor had the group attempted to influence him in the course of preparing his evidence.

He said a monopoly broadcasting system without competition tended to become immersed in procedures, and was generally behind the level of awareness in the community at large. A monopoly position in the area of public information and enlightenment could never be justified, whether it be television, press, radio, publishing, or any other part of the media concerned with the dissemination of concepts that ultimately impinged on society and its freedom. Govt Influence “Any country which today remains with one television channel will be a country with a service that, to a greater or lesser degree, is subject to or influenced by the Government of the day,” he said.

“This may or may not by a bad thing depending on the Government, but one thing is certain, and that is wherever in the world this happens a lack of enterprise and independence within the organisation exists. “Creative endeavour never flowers to its full extent, and the public receives back less than it has a right to expect “A monopoly broadcasting system needs competition, otherwise it tends to become immersed in procedures and, instead of being in the forefront with the expression of new ideas and concepts, it is generally behind the level of awareness in the community at large." The introduction of competition did not, however, necessarily gaurantee that any single-channel system would be improved, or that the country would automatically obtain a better service. Experience showed that it could lower standards unless it was properly controlled and financially secure. Broadcasting should not be an industry in which the prime concern was to make money, but, like any individual, organisation, or art form, it required money to survive. “It needs the right not only to be able to pay its way, but in addition the right to acquire sufficient funds to carry out its responsibility to the public and ensure its further development for the public good.” he said. Era Of Change In this respect it should not have to depend on the government, because it could be subject to direct or indirect

pressure to conform to the policies of the day. The decade of the seventies would undoubtedly be an era of great change. The individual, for this reason, had to have the fullest and widest choice in broadcasting.

The age of international instant communication required that New Zealand should play an international role. “It is imperative that inertia is not allowed to overcome imagination and drive, for only in this way can young people be prevented from opting out of New Zealand society and from seeking overseas the largeness of vision, the creativity, and the widespread social concern which should be available to them at home,” he said.

“In this regard, I feel the N.Z.B.C. could have provided greater stimulus than it has done. It has not, for instance, attempted to assess the rest of the world through its programmes. It is not good enough to simply play other people’s programmes." Leadership Chance If colour television began in Australia before New Zealand, the drift of talented staff to Australia would continue.

“Colour today is what the jet was to the propeller-driven aircraft,” he said. “It is the future, an accepted advance, and there will be no return to the old standard. “Such a move would put Australia so far ahead it would ensure New Zealand a secondary role in television. Even at comparable salaries, the best New Zealand talent would not remain to work in an outdated system. “New Zealand might nevet recover from such a reverse.”

It would be doubly unfortunate if New Zealand failed to accept the opportunity now presented to leap ahead in technology and programming. “The opportunity to begin a television service is rare enough,” he said.. The present opportunity to begin a colour television service in New Zealand was a chance to lead a whole group of countries in Asia and the Pacific in a field which would be of increasing importance to them.

“New Zealand, as a colour pioneer, would be called on to provide technical advice and assistance, training programmes, and would, if the quality were high enough, find a ready market for its own productions.” Return To N.Z. The immediate result of a competitive service would be the return home of a large number of New Zealanders who were now working in the creative area of television overseas.

'This, however, was provided comparable rates to Australian television salaries were paid. The second channel would have to be organised on an efficient and professional basis. The operators of the second network would have to have the knowledge and the key people capable of stimulating and attracting creative staff. The network would have to be assured of its independence. Compromise networks, other than a national network, or even small independent stations with inadequate facilities, would not attract professional staff from overseas.

Any decision authorising independent television should ensure that a commercial operator contributed to the arts by spending a guaranteed part of its income in a way that encouraged local writers, actors, singers, musicians, dancers, and other activities which enriched the community.