£1500 A YEAR FIXED

Southland Times, Issue 23180, 22 April 1937, Page 4

£1500 A YEAR FIXED

Mr Scrimgeour’s Salary REVENUE GREATER THAN EXPECTED FUTURE OF COMMERCIAL BROADCASTING (United Press Association) WELLINGTON, April 21. The initial revenue from the State’s first commercial radio broadcasting station in Auckland has been so much greater than anticipated that the Government has reviewed the agreement originally made with the controller, the Rev. C. G. Scrimgeour, and fixed new terms of remuneration. Instead of receiving a salary of £5OO a year, plus 7| per cent, commission on radio advertising receipts, Mr Scrimgeour is to be be paid a straight-out annual salary of £l5OO. A statement on the subject of Mr Scrimgeour’s position was made tonight by the acting Minister of Broadcasting (the Hon. F. Jones). The Minister said that it was because of the knowledge gained from experiences in other countries where commercial broadcasting stations are controlled by private companies and individuals that the Government had made provision in the Broadcasting Act of 1936 to prohibit advertising over the air, except from the stations it controls. Subsequently, when it was decided to initiate commercial broadcasting in the Dominion, Auckland, being the largest city, was selected as the best in which to make a commencement. Station IZB was considered to be of the class that could be most conveniently adapted for commercial purposes, and it was duly acquired. Negotiations as to the price to be paid have not yet been finalized and it will be necessary to have this question determined by reference to an independent and disinterested third party. Mr Scrimgeour was appointed controller of the national radio advertising service. The method of radio advertising decided upon was a new feature in New Zealand. Therefore, it was impossible to foresee what the response would be. The controller's remuneration was consequently tentatively fixed at £5OO a year, plus a commission of 7| per. cent, on business done, it being agreed that this question should be reviewed at the end of three months. The receipts from the business immediately proved to be substantially larger than anticipated and Mr Scrimgeour was offered, and accepted, a straight-out salary of £l5OO a year, as from April L 1937. His duties, of course, are not to be restricted to the control of advertising in the Auckland district alone, but are to include commercial broadcasting throughout the Dominion. A commercial service is now about to start in Wellington, and later will be extended to Christchurch and Dunedin.