INQUIRY REFUSED

Evening Star, Issue 22798, 5 November 1937, Page 7

INQUIRY REFUSED

THE SCRIMGEOUR APPOINTMENT OPPOSITION ALLEGATIONS PRESSED WAS ME DIRECTOR OF AUSTRALIAN COMPANY ? [From Our Parliamentary Reporter.] WELLINGTON, November 4. Pressing the Opposition’s demand that a Royal Commission should be set up to investigate the of the national commercial broadcasting service, Mr Endean said in the House to-night that this would show .that the controller of the service (Mr Scrimgeour) was a member' of the directorate of Radio Visions Proprietary Ltd., the Australian firm which held the New Zealand advertising rights. Mr Endean said he had examined a great deal of information concerning this firm, and its constitution provided for an absentee director. He was satisfied on the evidence ha had seen that the absentee director was the controller of the commercial broadcasting service in New Zealand. If the Government ' would accept the challenge to submit the administration of the service to examination by Roya! Commission this was one of the disclosures that would be made. Declaring that the whole of the negotiations between the Government and Mr Scrimgeour in relation to Radio Visions Proprietary should _bo examined by an independent authority, Mr Endean asked whether the Government had known when the advertising rights were granted that M'Arthur was to hold an interest in the company. GONE OVERBOARD. Answering this question, 'the Prime Minister said that as soon as the Government became aware of M'Arthnr’s association with the company, he had “ gone overboard.” Mr Endean asked whether the Prime Minister had any arrangement with Mr Scrimgeour prior to the eleetion that, for services rendered, he would be given his reward by being appointed to take control of radio advertising? He also asked whether Mr Scrimgeour, or anyone on his behalf, had come to an arrangement with the Government or any Minister that the Radio Vision Proprietary should he allowed to_ obtain the Australian rights for advertising on New Zealand radio. _ “ The only conclusion the Opposition can come to is that the Government, in refusing to set up a Royal Commission, is afraid* of the consequences, either to itself or to Mr Scrimgeour,” said Sir A. Ransom... The Opposition, he said, had made it clear that there were aspects relative to the appointment of the controller of commercial broadcasting and the administration-of the service that warranted the expense of an investigation. The Prime Minister had said that ho had the greatest confidence in the man appointed to control an important State service, _ but instead of the Government giving orders the controller of the_ commercial radio was declaring and dictating the policy of the Government. The Government had probably not been aware that M‘Arthur was associated with the company which had secured the New Zealand advertising rights in Australia, hut there were many' things about commercial broadcasting which they still had to learn. These things were well known by Mr Scrimgeour. ’ Mr Savage had declared .that he had nothing to cover up, said Sir Alfred. This must mean that he _ was in sympathy with the Opposition, and all that was asked for was that all the cards should be laid on the table. He saw no reason why the Government should decline to appoint a Royal Ccunmission, which would dispel any doubts once and for all. NO APOLOGY. “Mr Scrymgeour was apipbinted on my recommendation, and I have no apology to make, not even to the Opposition.” This was the Prime Minister’s answer in the House to the Opposition criticism of the appointment of the Director of Commercial Broadcasting at a salary of £1,500 per annum without giving the opportunity to make applications for the position. “ Why was he appointed? ” The Prime’ Minister asked this question and provided the answer. Mr Scrimgeour, he considered, was tna only man in New Zealand with knowledge of commercial broadcasting. He had made it his business to understand it from A to Z. There was no other reason for the appointment. “ In making terms,” continued Mr Savage, “ he and I discussed it fully. He was not sure what would be a fair thing in the way of commission, but said we could fix any amount we cared to in order to try the matter out, and he was man enough to come to me and say the business exceeded his wildest expectation, and asked to be put on a salary.”

“ The last speaker,” added the Prime Minister, “ waats a Royal Commission. He is not going to get it, but the Opposition can see everything in connection with broadcasting, and 1 invite them to have a look. The report will he here before members are asked to discuss the accounts.” Mr Broadfoot: Months late! The Prime Minister; We are not discussing the accounts, but a Bill which puts this on a legal basis. Mr Forbes (National, Hurunui), who spoke later, said the Prime Minister resented tho Opposition asking for information about allegations concerning the controller, but it was tho duty of the Opposition to act as watchdogs. The Prime Minister was the guardian of the reputation of the Public Service. It was hjs_ duty to see that no breath of suspicion attached to any individual in the employ of the country. All the Opposition asked for was information about allegations concerning a public servant, and tho Prime Minister should give the House all the information he could. Tho Prime Minister, continued Mr Forbes, had talked about innuendoes', but there was no greater innuendo than that in connection with the previous Postmaster-General and the “ jamming ” incident. It was distorted in every way. The present controller at that time had an agreement with the Government that no political propaganda should go over the air. He broke that agreement, and in doing so he forfeited his right to the trust

of any Government. The speaker had not the slightest doubt that when the next election came along these stations would be used by the Government for putting over propaganda of a one-sided nature against the Opposition They were told that the present contic.ller was the best man in New Zealand to take charge of the commercial stations and put over the air what he wanted. When allegations were freelv made about a man whom they knew ro have broken faith with the last Government, they had the right to know the facts, and the allegations should be clearea up by the Prime Minister.