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Broadcasting and the War. The importance of broadcasting as a direct and indirect instrument of modern warfare is now quite obvious to every one. Careful preparations were made by the Service to meet the war situation many months before the outbreak of hostilities. The general policy adopted has been to give as far as possible, full and authentic information to the public, while at the same time maintaining the normal service. For several days at the outbreak of war the anxiety of the public was allayed by maintaining continuous daily service for twenty-four hours, but as soon as possible this was curtailed, and the broadcasting of news from Davcntry has been reduced several times since Organization has been established whereby all the main stations can be linked almost instantaneously for the broadcasting of exceptionally important information. The Government has made frequent use of broadcasting for the unifying of the National effort in the Allied cause. Staff. The effective running of a service which is so essential in wartime makes it impossible for some of the members of the staff who enlist to be released for active service. A gratifying response to the nation's call was made by members of the staff, and as many as could be spared were released for service with the forces. The interests of these officers during their absence are being carefully safeguarded. . Accommodation . During the year the foundations of the new Broadcasting House building have been built A considerable amount of excavation work was necessary. The site; is at the back of Parliamentary Buildings in Bowen Street. The building plans are now complete, but owing to existing conditions the building is not to be proceeded with at present. Additional studio accommodation at Christchurch has been brought into use during the year making it possible to present the programmes in a more satisfactory mannner. Owing to pressure of work on the Government architectural staff at Dunodin, the preparation ol the plans for the conversion of the old Garrison Hall into studio and office accommodation has been delayed. Technical. The improvement of the coverage in areas not yet receiving a first-grade coverage has been planned and will be given effect to as soon as circumstances permit. The receiving-station at Titahi Bay near the transniitting-station site has been raised to the necessary standard of efficiency and is giving good service, particularly in the reception of overseas stations. A continuous watch is kept on the 8.8.C. short-wave transmissions, a regular schedule of London news bulletins is rebroadcast, and topical talks arc received and recorded daily for rebroadcastmg at appropriate times. The work of the Radio Research Committee has had to be restricted during the year owing to the necessary research staff not being available. The Government having decided to send a Broadcasting Unit with the New Zealand Expeditionary torce it was necessary to equip a transportable equipment for this purpose. This Department's technical staff has therefore been working under pressure to fit up a van with the necessary facilities I lie equipment in the unit enables recordings to bo made of commentaries on events in which the troops are interested, and the transmission of such programme matter either by radio-telephone when' that method is available, or by mail to New Zealand. Programmes from New Zealand may be received by radio-telephone and recorded for reproducing by a public-address system to the troops at suitable times. Recordings of suitable programme matter received from New Zealand by post will also be distributed in this manner. Three officers from New Zealand will go forward with the Broadcasting Unit. The Department had a model studio in the Government Court of the Centennial Exhibition It was used for the evening programme of Station 2YA each evening, and proved a most popular attraction m the Exhibition. Financial Repobt. Balance-sheet. The balance-sheet, duly audited by the Controller and Auditor-General, and the Revenue Account appear at the end of this report. The capital expenditure totalled £24,042, of which £9,369 was expended on the foundations of the new Broadcasting House at Wellington. A further £155,000 was invested temporarily for future capital commitments. At the 31st March, 1940, the Commercial Service's indebtedness to this Service was £77 026 which includes advances, interest thereon, and copyright fees. Revenue Account. Income from license fees was £27,379 in excess of the income from these fees in the previous year. Total expenditure for the year increased by £23,457. This increase was due mainly to the expenditure incurred in the publication of the New Zealand Listener. The expenditure on this iournal during the year was £30,437 and the revenue £18,096. This excess of expenditure over revenue is accounted for by the preliminary expenses of establishing the Listener and the cost of the first issue involving the free distribution of 380,000 copies. James Shelley, Director of Broadcasting.

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