SUCCESSFUL YEAR

Otago Daily Times, Issue 26556, 3 September 1947, Page 6

SUCCESSFUL YEAR

BROADCASTING SERVICE INCREASED EXPENDITURE ON PROGRAMMES Parliamentary Reporter WELLINGTON, Sept. 2. A surplus of £155,907 is shown in the accounts of the national division of the New Zealand Broadcasting Service for the year ended March 31 last, according to the annual report of the department, which was presented in the House of Representatives to-day. The surplus for the previous year was £204,184. The report stated that investments of surplus funds were unaltered at £1,830,000. The net profit of the commercial division for the last financial year was £95.626, compared with £107,308 the previous year. The report stated that the total income of the national division amounted to £490,635. This sum included £459,515 from radio licence fees. The total revenue for the previous year was £480,193. Programme Costs Programme expenditure for the last financial year was £144,029, compared with £116,177 the previous year. The increase was mainly due to the establishment of the National Orchestra, payment to members of this and other, orchestras absorbing £45,491. Other programme charges were £31,913 on talent, £4340 on welfare and entertainment of the fighting forces in New Zealand and overseas, and miscellaneous expenses amounting to £62,285. With the addition of general administrative and running expenses totalling £172,283, the total expenditure, including provision for depreciation, amounted to £334,728. Capital commitments which did not come to charge during the year had been entered into under the programme of development, and these, together with further charges of a similar nature which would be incurred as development advanced, could be expected to make inroads on the liquid resources which had been built up for the purpose. The section of the report dealing with the accounts for the commercial division stated that sales of station time again exceeded any previous year’s return at £303,114, in spite of the fact that reduced hours of broadcasting due to power restrictions caused loss of revenue towards the end of the year. Miscellaneous revenue totalling £6626 brought the total income to £309.740. Free announcements to local and national community organisations were granted to a value of £9919. The policy was continued of granting rate concessions to Government departments and non-profit-making organisations, the reduction in charges being valued at £11,536. No reciprocal advantage was gained in return for these concessions, full charges being paid for all services used by the department. Commercial Division In addition to talent and recorded features supplied by advertisers at their cost, programme costs totalled £32,660. General administrative and running expenses, including provision for depreciation, totalled £181,454, and a reserve of £55,600 had been provided to meet taxation on the year’s profits, leaving the appropriation account with an accumulated credit balance of £167,148. The report added that advertising rates had not been increased since 1938, in spite of the fact that costs associated with broadcasting had risen considerably and the potential radio audience had greatly increased. Most other advertising media had substantially increased their rates, and it was suggested that revision of the departments advertising rates could be readily justified.