WIRELESS PLANT

New Zealand Herald, Volume LXIX, Issue 21326, 29 October 1932, Page 11

WIRELESS PLANT

PURCHASE FROM CROWN -- THE BROADCASTING BOARD REPAYMENT IN TEN YEARS VALUATIONS OF THE ASSETS [by telegraph—special reporter] WELLINGTON, Friday The arrangements made between the Postmaster-General and Minister of Telegraphs, the Hon. A. Hamilton, and the New Zealand Broadcasting Board, established under the Broadcasting Act, 1931, in regard to the transfer of the assets purchased by the Crown from the Radio ' i ; Broadcasting Company of New Zealand, Limited, were outlined in statements tabled in the House of Representatives by the Minister to-day. The stations and plant of the Broadcasting Company were purchased by the Crown for £58,646, the amount having been fixed by arbitration. .The valuation made by the officers of the Post and Telegraph Department was £27,353, but tha company claimed £85,812. The award was made by Mr. Justice Blair. Under a deed dated September 9 the Broadcasting Board appointed early this year acquires the assets purchased by the Crown for £59,839, the additional sum of £1193, representing the share of costs of arbitration paid by the Post and Telegraph Department and other expenses incurred. Payment of the wholei amount was made out of the Post Office account and treated as a loan to the Broadcasting Board. Apportionment of Fees The loan is secured by a first mortgage over all tho property which the board has acquired from the Crown. Provision is made for the repayment of the principal sum within 10 years. Quarterly instalments of £1250 are payable on the last days of March, June, 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 £3790 in repayment of principal was paid on September 30. Interest payable quarterly is fixed at 6 per cent, reducible to 5 per cent if paid within 20 days of due date. - . „ A further agreement has been entered into with the board covering the terms and conditions ancl method of payment of fees collected for receiving station and other licences. Under the agreement pro-' vision is made for the payment to the' board of five-sixths, 25s a year, of ihe licence fees received from listeners. Of the balance of the annual fee of 30s, 3s a year . is paid by the department for patent rights to Amalgamated Wireless (Australasia), Limited. The fees received each year by the department are to be apportioned over the period covered by the licences issued. Such fees are paid mostly for a full year; and these are apportioned over that period. Lesser periods are apportioned over the months concerned. The apportionment is made on the 20th of the month succeeding the month in which the fees are col- . lected. The board may, however, lift only a portion of the amount it is entitled to each month. Valuations and Assessments The agreement is made for a period of five years, but provisions are also made_ for the payment of interest by the department on moneys held by it oh behalf, of the board under certain conditions and this part of the agreement is terminable on three months' notice. Attached to the Minister's statement was the full text of the award made by Mr. Justice Blair in determining the purchase price. A summary of the valuations, made on behalf of the Minister and the company, together with the arbitrator's assessment was also included. Details of the principal items are as follows: — Departmental Company valua- valuaStations tions Award tion^ IYA. Auckland— £ £ £ Machinery, plant 2,465 5,836 8,769 Equipment . . 391 852 946 2YA. Wellington— Machinery, plant 8,658 16,940 21,398 Equipment . . 1,562 2,170 2,411 ■ Freehold property 2,450 5,036 7,000 3YA, Christchurch — <' Machinery, plant 3,077 6,956 10,604 Equipment .. 733 < 1,318 1.464 ' 4YA. Duiiedin— Machinery, plant 2,264 5.137 8.356 Equipment .. 779 1,285 1,427 The personnel of the Broadcasting Board, comprises Messrs. H. D. Vickery, of Wellington, chairman; G. R. Hutchinson, of Auckland, and L. R. C. Macfarlane, of Culverden. The period of the appointment of the chairman is four years, and of the other members three years.