P.—3

In addition to members of the staff on leave with the Forces, three technical officers of the Department have been released for specialist war purposes —two for research work overseas and one for work in the Dominion. It is becoming increasingly difficult to keep up the supply of various kinds of consumable equipment. A certain amount of improvization has been necessary, but it is expected that the stations will be maintained without any serious loss of efficiency or quality of transmission. Staff. The importance of broadcasting in wartime and the emergency conditions which the Service may have to meet have made it necessary to retain certain members of the staff in the public interest who are desirous of serving with the Forces. However, as many as possible have been released, and a gratifying response to the nation's call has been shown. Apart from members who have been released for Territorial training, twenty-nine officers of the Service are now on active service. I wish to express my appreciation of the zeal with which the members of the staff have met and overcome the difficulties imposed upon the Service by war conditions. Financial Report. The Revenue Account for the year ended 31st March, 1941, and the balance-sheet, certified by the Controller and Auditor-General, appear at the end of this report. License fees, less commission paid to the Post and Telegraph Department for collections, amounted to £425,751, an increase of £45,552 on the previous year. Expenditure totalled £279,583, as compared with £267,151 for 1939-40, an increase being shown in programme expenditure and in the operation and maintenance of plant. The increase in programmeexpenditure was due chiefly to the inclusion of the Department's proportion of the cost of the Centennial Music Celebrations, while operating-costs were higher on account of the additional hours stations were in operation and the provision of extra technical equipment. Expenditure on the broadcasting unit with the New Zealand Expeditionary Force overseas amounted to £4,457, which included the cost of the truck, trailer, power-supply, and the necessary recording-equipment, as well as the salaries of the officers in the unit, cost of records, blank disks, &c. Capital expenditure amounted to £16,236, included in which was £9,100 spent on the Broadcasting House foundations and architects' fees, and £3,090 on the erection of residences for the staff at Gebbie's Pass and Dacre transmitting-stations. A further £250,000 was invested during the year to provide for future development, making a total of £540,000 now invested for this purpose. Owing to war conditions, the plans for the erection of new stations and the building of Broadcasting House have of necessity been held up, but the money which would have been expended on these projects has been set aside and invested so that as soon as circumstances permit they can be immediately proceeded with. James Shelley, Director of Broadcasting.

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