RADIO LOAN

Evening Post, Volume CIV, Issue 68, 17 September 1927, Page 10

RADIO LOAN

ANOTHER PROTEST

"POOR OLD MORTGAGE"

BROADCASTING AGAIN

More was heard in the House of Representatives yesterday afternoon of the £15,000 loan made by the Government to the Broadcasting Company. When the Post and Telegraph Department estimates were under review, members of the Labour Party sought to reduce the vote by the amount of the loan; but - their,views on the subject did not appeal to the majority of members, and the amendment was lost. The ball was Bet rolling by Mr. J. A. Lee (Auckland East), who said he intended to give the House an opportunity of expressing its approval or disapproval of the action of the Government in making a present to the Broadcasting Company. He moved that the vote of the P. and T. Department should be reduced by £15,000, the amount of the loan. Mr. D. G. Sullivan (Avon) also showed some interest in the loan, and said he would like to know who had advised the Government as to the value of the security. The Postmaster-General (the Hon W. Nosworthy): "My poor old mortgage!" The Eight Hon. Sir Joseph Ward (Invercargill) said that the Government ought to admit that a mistake had been made in granting a loan to the company. It was an unheard of departure for the Post and Telegraph Department to make such an advance without the authority of Parliament. It was the first time he had heard of the Post and Telegraph Department being a lending concern. Hi THERE A NIGGEE? "The Minister has been quite candid about this matter," said Mr. G-. W. Forbes (Hurunui), "but he has left the impression that there is a nigger in the wood-pile somewhere." Mr. 3?orbeß suggested that the Government might well establish a board to control broadcasting in New Zealand. The Leader of the Opposition (Mr. H. E. Holland) said that by not taking over broadcasting as a public utility the Government was throwing away revenue. The loan made to the" company was a very questionable one. In Queensland, where the service was State-owned, said Mr. Holland, all sections of the community were permitted to make uso of the radio for the purposes of addressing t<Jie puble, "but in New Zealand only members of the Keforin Party were permitted to make use of broadcasting. Mr. Holland complained that a speech had been made over the wireless in favour of the Singapore Base, and that the "Radio Becord," in reporting the speech, had followed the practice of some of the daily papers in printing in black type those portions of the speech which were favourable to the Base. Mr. E. J. Howard (Christchurch South) protested against the heavy fees charged in respect to portable sets. It would appear that some one in the Department was out to hinder the popularity of wireless. An. advisory board should be set up to help the Do-1 partment in administering the service. The radio listeners had a. right to such a board because they paid the tune. In the last two months the wireless broadcasting service had improved, but with an advisory board it could be made better still. ANOTHER LENDING DEPARTMENT. In supporting the amendment, Mr. M. J. Savage (Auckland West) said the Post Office appeared to be turning itself into a State-lending Department, but it was lending to its competitors. There was divided control, the radio broadcasting being run by a privato company. They wert building up what everyone considered to be a public service, but when they tried to bring that service under public control they would havo to incur the expenditure of public funds. In the backblocks complaint was made that insufficient news was given over the wireless. Mr. W. A. Veitch (Wanganui) said that the House had been given, no satisfactory reason why the Broadcasting Company had been singled out for favourable consideration. It would not be very long before the company became worth .£1,000,000, and the Government would be faced either with the prospect of confiscating the whole concern or paying the price demanded. , x He was sure the Minister would not stand for a policy of confiscation. The broadcasting service had been established on bad sprinciples, and one wondered what the position of the Dominion would havo been to-day if the telephone and telegraph services had been started in the same way. GOOD SECURITY. The Postmaster-General (the Hon. W. Nosworthy) stated that no one other than those associated with the present company would undertake broadcasting, and that was why the £15,000 had been lent to them, but only on condition that the Government could take the station over at a valuation. No one had attempted to put broadcasting on as sound a basis as he, but all that he had received was criticism. In a previous debate it had almost bien asked what he had got out of it. Labour members: "Who made that suggestion?" Mr. P. Frascr (Wellington Central): "You got more than you like out of it." The Minister repeated previous declarations that there was good security for the £15,000 loan. There was no nigger in the woodpile. A Royal Commission which had just reported in Australia had recommended the adoption of a like course to that which the New Zealand Government had already decided to follow. If members were not satisfied, let them reduce the vote and turn the Government out. Mr. Holland: "But the Government would not go out if we carried it." "You try me," replied Mr. Nosworthy amidst laughter. The amendment was defeated by 45 votes to 21.