Private radio for Chch

Press, Volume CXII, Issue 33094, 8 December 1972, Page 2

Private radio for Chch

(New Zealand Press Association)

WELLINGTON, December 7.

The chairman of the Broadcasting Authority (Mr R. T. Peacock) today issued the decision of the authority granting the application of Avon Broadcasting Company, Ltd, for a warrant for a private commercial radio station in Christchurch.

The company was earlier granted a warrant subject to certain conditions, but an appeal against it by the N.Z.B.C. was allowed by the Chief Justice (Sir Richard Wild).

In announcing its findings, the authority said: “We have come to the conclusion that the economic effect which the establishment of the proposed station would have, in respect of broadcasting stations already in operation, is not unreasonable, nor is it such as would justify the refusal of the grant of a warrant.” The authority noted that the only stations operating in the Christchurch area are

those of the N.Z.B.C. It added: “We think our assumption at the 1971 hearing that 50 per cent of the revenue of Avon would come from the N.Z.B.C. no longer applies. REVENUE IMPACT “We think now that the impact on N.Z.B.C. revenues in Christchurch should not exceed approximately 20 per cent, and indeed is more likely to be in the vicinity of 12 per cent.” Commenting on the proposed directors of the Avon company, the authority said: “In our opinion they are young men of ability who are keen to establish a private radio station and we think they will do so satisfactorily.” The authority also observed that the N.Z.B.C. has a “monopoly in respect of the dissemination of radio and television news in the Christchurch area, and as we have expressed in previous decisions, we think an alternative source of news would be desirable in the public interest.” Points from conditions set out include:

The authorised capital is to be $400,000, divided into 800,000 ordinary shares of 50c each, 33,200 shares to be subscribed for by persons set out in the decision. Those persons have the right to exercise options for the purchase in cash of further shares at par not exceeding a total of 75,000.

Four hundred thousand ordinary shares of 50c each are to be offered for public subscription, with a maximum allotment of 5000 per person. The total shareholding by one or more news companies — whether as beneficial owner or otherwise — in the Avon company is not to exceed 30 per cent of the issued capital. No director of any news company that publishes a newspaper either directly or by means of a subsidiary company can be appointed a director without the prior, written consent of the authority.