BROADCASTING

Hawke's Bay Tribune, Volume XVII, Issue 211, 20 August 1927, Page 7

BROADCASTING

THE LOAN OF £15,000 OPPOSITION’S CRITICISM. HON. NOSWORTHY’S STATEMENT. (Special to “Tribune.”) Parliament Buildings, Aug. 20. More was heard in the House of Representatives yesterday about the loan of £15,000 which the Opposition allege was advanced to the Radio Broadcasting Company on second mortgage, when the Postmastergeneral made a statement as to the actual position with regard to mortgages following further criticism on the subject bv Labour members. The Postmaster-General, the Hon. W. Nosworthy, remarked that a lot had been heard in the House about money having been lent on second mortgage. Mr. J. A. Lee (Auckland East): To friends. “They are no particular friends of mine,” replied Mr. Nosworthy. “The hon. members on the other side of the House are just as good friends of theirs as 1 am.” He thought that what had to fortify members in the belief that money was lent on second mortgage was a “Gazette” notice which appeared in the “Mercantile Gazette” in June last. A record was publn/ed of certain charges registered against the company and these charges appeared to include a mortgage ol £5OOO to the Bank of New Zealand and a debenture of £15,000 to His Majesty. It was made to appear by a statement appearing in the “Gazette” that the Crown’s security was subject to the bank’s first mortgage. That was not quite correct. By an instrument dated July 1, 1927, the Bank of New Zealand released its charge over the Wellington assets of the Broadcasting Company for the purpose of giving priority to the debenture issued in favour of the Crown. The Crown, therefore, had a first charge on all plant, ap paratus, and assets of the company in connection with the Wellington station other than land, and the charge on the land was subject to a mortgage of £5OOO in favour of the Bank. The assets were valued at approximately £27,000. It would therefore appear that the Crown’s interest was amply protected. SECOND MORTGAGE SUFFiCIENI The Minister stated, in reply to an interjection, that second mortgage was sufficient. Collateral security was secured on a first mortgage for about £20,000 with £15,000 worth of debentures as a first mortgage. Mr. Lee: But you can't take the building off the section. “No,” replied the Minister, “but you can pay £5.000 to the bank and we have got everything.” He was assured by the Department that everything was all right and he was quite satisfied that the position was satisfactory. In regard to charges or personal favouritism, or subscriptions to the Reform party funds, he said he had no knowledge that members of the company had ever contributed to the party funds. After all. he added, he was only there as a Minister to do what was the right and fair thing. The arrangement with regard to broadcasting was made before he was appointed Minister in Charge, but he took the responsibility in regard to the £15,000. It was not done by him on his own account but only after the facts had been made the subject of complaint to CabinetMUDDLED THE BUSINESS. Mr. E.J. Howard (Christchurch South) interjected that Mr. Nosworthy had muddled the wireless business as much as he had muddled Samoan affairs. The last PostmasterGeneral was the head of his department and was not a rubber stamp like the present one. Mr. Nosworthy: Don’t get insulting. Mr. Howard: The present Post-master-General is only used by his department like a rubber stamp, to bang on a piece of paper. The department is not working for the people who are paying for these systems. It is all the time on the side of the company. Mr. Nosworthy: That is incorrect “It is not incorrect, hotly retorted Mr. Howard. “I pay 30/- and I know.” Mr. Nosworthy: 1 am PostmasterGeneral, and I know.

Mr. Howard said the PostmasterGeneral knew nothing about wireless and listeners-in, who had asked for an advisory board, were not getting a fait deal.

Mr. Nosworthy: That is all the thanks the Government gets for trying to get this system in the country! Mr J. A. Lee wanted to know what steps had been taken by the Broadcasting Company to bring the loan about. “What subtle influences had been at work?” he asked. Apparently the whole control of wireless had been muddled by the Minister, who should tell the House exactly what had happened. SHOULD HAVE GOVERNMENT CONTROL.

Mr. J. M. J. Savage (Auckland West) said that Ministers of the Crown were able to talk over the air and were able to get publicity for their policy. This members of the Opposition or anybody opposed to the Government’s policy were not able to do. The time had come, in fact it had past, when control of radio should be in the hands of the Government. The Hon. W. Nosworthy said the Broadcasting Company had offered to take up the work of broadcasting and the Government had allowed it to do so as it (the Government) did not want to enter into the wireless broadcasting service. The Opposition now wanted to force the Government to take absolute control of broadcasting. There had been nothing but faultfinding. He did not believe the Opposition had any time for broadcasting. When the British general strike was in progress the only means the public had of knowing what was going on was by wireless broadcasting. The Ministers had been accused of political underhand

methods in connection with the matter. Mr. Lee had even asked who had gone to the Speaker’s room and what offers had been made. That insinuation was almost insulting. The Government was trying to save the people from heavy expense but the Opposition wanted it to take over the control of everything. Mr. G. W. Forbes (Hurunui) said it would have been well if the Govern.nient had stated in the first place the terms of the loan to the company. How far were lectures that were to be put over the air to be used for political propaganda? Some people wanted to know if the proceedings of Parliament were to be broadcasted as was done in other countries.