COMMERCIAL RADIO SERVICE

Southland Times, Issue 24533, 6 September 1941, Page 11

COMMERCIAL RADIO SERVICE

ACCOUNTS QUESTIONED

(Special) WELLINGTON, Sept. 5. Some aspects of the National and Commercial broadcasting accounts were questioned by the Leader of the Opposition (Mr S. G. Holland) in the House of Representatives today when the Broadcasting Estimates were under review. Mr Holland said that although the credit balance for the Commercial Service for 1941 was £14,000, the indebtedness of the service had been reduced by £37,000. The indebtedness ’ had been reduced from £lOO,OOO in 1939 to £40,000 in 1941. Mr Holland said he could not understand how the indebtedness could be reduced by a greater amount than the profits and asked whether reserves for depreciation and taxation had been used.

The acting Prime Minister (the Hon. W. Nash) said the explanation was simple; the amount was treated .as an overdraft in the National broadcasting account. The National Service acted as the banker, in effect, for the Commercial Service and he hoped the Commercial Service would gradually get out of debt.

Mr W. S. Goosman (Nat., Waikato) said the balance-sheet of the Commercial Service was designed to cover up profits and hide them from the public. Although the value of the assets had declined larger sums were provided for depreciation.