BROADCASTING SERVICE

Otago Daily Times, Issue 27517, 11 October 1950, Page 6

BROADCASTING SERVICE

Substantial Loss On Year’s Operations COMMERCIAL SURPLUS FALLS Parliamentary Reporter WELLINGTON, Oct. 10. A net deficit of £45,855 for the past financial year is shown in the accounts for national and commercial divisions of the New Zealand Broadcasting Service, the annual report of which was presented in the House of Representatives today. The national division had a deficit of £85,265 last financial year, compared with a surplus of £29,583 in the previous year, and the commercial division had a surplus of £32,634, compared with a surplus of £52,401 for the year before. There was, therefore, a total deficit of £25,631, compared with a surplus of £81,984 for the preceding year.

The net deficit for last year was increased to £45,855 by reason of the necessity to provide £20,224 for taxation on the profits of the commercial division. In the previous year the two divisions had a net surplus of £51,304 after provision had been made for taxation.

The income from licence fees, £516,924, exceeded that of the previous year by £18,294, while the revenue from the sale of time on the air reached £386,819, an increase of £81.270. The greater part of the latter increase was due to the easing in the restriction of broadcasting hours for electricity conservation, as compared with previous years. The additional £30,575 represents increased earnings from the five new “X” stations, the first of which commenced business in January, 1949.

The total income of the two divisions from all sources was £956,330, an increase of £102,377, and the total expenditure, excluding capital, but including depreciation for the two divisions, was £981,861, an increase of £209,992.

The report stated that although additional revenue had been gained over the past year, there had been a noticeable trend for business to harden and for advertisers to place allocations with the service on a more exacting basis than had been the case in other years. In July a departmental committee was set up to advise the Minister on the development of television overseas and on the problems involved in the establishment of such a service in New Zealand. Information had been collected from many sources and a preliminary report was being prepared.