F.—3.

Subsidized Private Broadcasting Stations. After considering the report furnished by the Coverage Commission and accompanying maps showing reception conditions m various parts of the Dominion, the Board decided to render financial assistance to a number of private broadcasting stations operating in areas where reception of transmissions from the Board's stations is unsatisfactory. The following such stations are at present C ® r^ ng subsidies from Board : IZH Hamilton, 2YB New Plymouth, 2ZF Palmerston North 2ZD Masterton, 2Z.T Gisborne, 2ZH Napier, 4ZP Invercargill, 3ZR Greymouth. In addition to financial assistance, regular relays of programmes from the Board's stations are provided for stations IZH Hamilton, 2ZF Palmerston North, and 2ZD Masterton. Unfortunately it is not practicable to cater for the other stations in this way. Advisory Council. The names of the members of the Advisory Council appointed by His Excellency the GovernorGeneral under section 4 of the Broadcasting Act, 1931, to advise the Board, are given hereunder : Mr. J. H. Owen, Wellington (Chairman), Mr. W. A. Waters, Palmerston North, Mr. A. B. Chappell, Auckland, Mr. C. R. Russell, Christchurch, Mr. J. S. Anchor, Hamilton, Mr. H. Booth, Dunedin, Mr. F. T. Davis, New Plymouth, Mr. A. W. Jones, Invercargill. Many important matters were dealt with by the Council at the three meetings held during the year and helpful recommendations were made to the Board. • FINANCIAL REPORT. The Board's first Balance-sheet certified by the Audit Department, together with the relative Revenue Account, appears at the end of this report. As required by the Minister of Telegraphs and in terms of section 16 of the Broadcasting Act 1931, the Board acquired from the Minister the assets of the Radio Broadcasting Co. of New Ltd., at a cost of £59,839 17s. 2d. This amount is secured by first mortgage to His Majesty the King chargeable on all the Board's property. The principal is reducible by quarterly instalments and is to be repaid before the 31st December, 1941. Under an agreement between the Board and the Minister of Telegraphs, interest on the balance of principal owing is set ofi to the extent of interest credited to the Board on license fees held on behalf of the Board by the Post and Telegraph Department and not payable immediately for the workingexpenses of the Service. During the year the sum of £5,039 17s. 2d. was paid off the principal. Balance-sheet. As the transmitting equipment and associated apparatus are comparatively old, and as the policy of the Board, following the recommendation of the Coverage Commission, is to replace most of this plant with modern installations, it has been deemed advisable to provide for relatively heavy depreciation on the book value of this class of assets. Half of the cost of the arbitration proceedings between the Radio Broadcasting Co. of New Zealand, Ltd., and the Minister of Telegraphs, which was charged to the Board, has been written ofi in this year's accounts. Certain of the assets taken over, such as alterations to studios, have been depreciated proportionately to the duration of the while assets of little or no value to the Board have been heavily depreciated, and, in some instances,' entirely written off. The valuations of machinery and plant, office and studio equipment, and land and buildings, as shown in the Balance-sheet as at 31st December, 1932, represent the valuations of these assets as shown in the award of the Arbitrator, plus the actual cost of additions during the year but less provision for depreciation. There is also included in the assets item, machinery and plant' the sum of £2,379 10s., being prepayment for plant and equipment not installed at 31st December^ J-uoZ. The Board has no Capital Fund; all additions to plant and renewals and replacements of plant m view will be made from revenue. The Board, having adopted a policy of replacement of plant, following the recommendations of the Coverage Commission, has this year transferred the sum of £14,000 from Revenue Account to Renewals and Replacements Reserve. Revenue Account. The excess of income over expenditure for the year ended 31st December, 1932, after providing for depreciation of assets, writing off half the costs of arbitration and transferring £14,000 to Renewals and Replacements Reserve, is £2,357. Owing to the extended hours of broadcasting in the second half of the year, the expenditure on programmes during that period was considerably in excess of the amount expended during the first six months. With the general development of the Service, it is likely that the expenditure on programmes will be still greater in subsequent years. 11. D. Vickery, Chairman. Leslie Macfarlane, ) ~ , , „ _ Geo. R. Hutchinson, f Members of the Board. Wellington, 31st January, 1933.

4