RADIO LICENSES

Timaru Herald, Volume CXLIV, Issue 21052, 2 June 1938, Page 8

RADIO LICENSES

REDUCTION IN COST URGED A reduction in the cost of radio licenses in view of the large increases in revenue and the unnecessary surpluses being put aside annually to the Reserve Account is suggested in a remit adopted by the South Canterbury Provincial Executive of the Farmers’ Union at its annual meeting in Timaru yesterday. The number of license-holders, including traders, at the end of February was 281,450, an increase in 12 months of 44547, said Mr B. E. Evans, who moved the remit on behalf of the Timaru-St. Andrews branch. The position between the Broadcasting Service and the license-holders was unique, ’f the Telegraph Department secured, say, 10 new telephone subscribers, and as a result collected an additional subscription of £lOO. at least 90 per cent, of the subscriptions was devoted to upkeep of the machines installed and in giving a service to the 10 new subscribers. However, the position was different so far as the Broadcasting Service was concerned. It cost just as much to provide a programme for 200,000 or 300,000 listeners as it did for 10 or a dozen. It was possible that all the listeners could be served without any additional expense, and that the whole of the add’tional revenue could be added to the profit uf the service. During the nine months preceding March 31. 1937, the revenue of the Broadcasting Service was £200.000 and during the same period only £56,028 was devoted to programmes. £33,218 to maintenance of plant, power and administration, and £14.945 to depreciation. The total amount of the expenditure was £lO4 985. This left a balance of £94,519, which was transferred m one lot to the Accumulated Reserve Account, which was then increased ro more than £350,000. “It will be noted that much less was spent on programmes than was added to the Accumulated Reserve Account commented Mr Evans. He admitted that advances in technical matters might make it necessary for the service to acquire new apparatus and equipment, but he thought that should be properly provided for. It was not sound business that the listeners of to-day should have to contribute to a fund which might, or might not. be used for the benfit of the listeners of the future.