RADIO BROADCASTING

Taranaki Daily News, 24 August 1931, Page 11

RADIO BROADCASTING

NEW SCHEME OPPOSED. ATTITUDE OF THE DEALERS. Disapproval of the scheme for the future control of radio broadcasting, as propounded by the New Zealand Radio Broadcasting Company, Limited, was expressed at a meeting of the Auckland Radio Dealers’ Association, The grounds of objection, as set out in a statement issued subsequently, are that the scheme does not conform to the principle of public ownership and control already advocated by the trade, and provides a sheltered monopoly of a public utility by a company run for profit. The holders of the “B” shares will not be representative of listeners generally, but only of those who may be able to invest money, while as the holders of “A” shares will have the power to resume any “B” shares held by licensees who do not continue their licenses, the **A” shareholders will, in practice, always hold a controlling interest.. “As the broadcasting revenue is assured and is likely to increase,” the statement continues, “there appears no reason why shareholders should be practically guaranteed a return on their capital of 7i per cent, per annum, free of income tax, : especially in view of the present efforts of the Government to reduce the price of money. There is also a danger to the expansion of broadcasting owing to such a large sum. being ear-marked for dividends. No limitation of dividend on winding up is provided for, and this may lead to the creation of secret reserves which will become .the property of the shareholders. With the proposed increase of capital to £150,000, the danger pointed out previously now becomes apparent —that with continual increase of capital invested a position will eventually be reached where any Government will find it difficult to taice over assets at valuation. Thus the company will become more strongly entrenched in its monopoly.” . • The meeting therefore reaffirmed its support of a public corporation not exceeding five members, including the chairman, and appointed by the Government, but entirely removed from political or Government control. The secretary of this body should be a public accountant entirely under the direction of the corporation, and not a public >servant,- the radio trade and listeners to have representation on the corporation, the dealers, as represented by the association-, to nominate four representatives to the Government for seleetibii., The president of the association, Mr. C, A. Tucker, said similar views had been expressed, by" the Wellington '■ Radio Dealers’ Association. He' challenged the statement of the company that it hadpioneered broadcasting in New Zealand, stating that it had been handled in its initial stages by a group of Auckland business men, who conducted the old IYA station from August, 1922, until it was taken over by the cqinpany /when it was granted its monopoly in 1925.