BROADCASTING BOARD

Northern Advocate, 29 October 1932, Page 3

BROADCASTING BOARD

PURCHASE OF COMPANY’S ASSETS.

COMPACT WITH CROWN

(Special to “Northern Advocate.”J

WELLINGTON, Friday

In a return presented in the -1101186 of Representatives today it is shown that a. deed dated September 0, 10P.2, iias been entered into between the Minister and the Broadcasting Board under which the board acquires the assets purchased by the Crown from the Radio Broadcasting Co., of New Zealand, Ltd.

The price fixed by arbitration to be paid by the Crown for the assets of the Radio Broadcasting Co. was £l5B, (14.0 0/2. The share of the costs of arbitration paid by the Post and Telegraph Department and the expenses incurred by the Department in valuing the assets, together with adjustments, amounted to £llO3 11/. Payment of the whole amount —namely, £ of), SRC 17/2 —was made out of the Post Office,, account and treated as a loan to the board. The deed provides that, in consideration of the Government vesting in the board all the assets and the property acquired from the company, the hoard covenants to charge all its proerty to the extent of the total amount naid. The charge is a first mortgage , ■>ver all this property. Provision is also made for the repayment of the principal sum - within .10 years. Quarterly instalments of £12")0 are payable on the last days of March, Juno, September and December in each year, with the right of repayment on any quarter-day of such amount in excess of this as the board may so desire. The sum of £3780 17/2 in repayment of principal was paid on September 3° last. Interest is fixed at 0 per cent, reducible 16 5 per cent if paid within 20 da vs of duo date.

An agreement also da toil September 0. 19H2, lias boon ontorod into with the hoard covering tho toms and conditions and mothod of payment of fees collected for receiving-station and other licenses. . Tinder the agreement provision is made for the payment to the board of live-sixths of the license foes received from listeners. The fees received cadi year by the Po,st and Telegraph Department are to be apportion, ed over the period covered by the licenses issued. Such ’foes are paid mostly for a full year, and these are apportioned over that period! Lesser periods are apportioned over the months concerned. i The Valuations.

Details of the award made by ’..lt Justice Blair were also furnished to the House. A summary of the main valuations is:—

Station IYA, Auckland, valuation on behalf of Minister, £2405; valuation by company, £8700; award, £5025. Station 2VA, Wellington, £BOSB, £21,308. and £10.040. Station 2YA, Christchurch. £2077, £10,804, and £0055. Station 4YA,-Dunedin, £2202, £8285, and £5120.