B—l [Pt. ll]

(2) The annual vote, " Broadcasting " bears certain administrative costs, such as rent and cleaning. These appear in the annual estimates with administrative expenses of the other branches of the Broadcasting Service. There is a Concert Section of the Service which controls the business side of concerts, whether or not the orchestra participates therein. Fees and other costs of artists and direct costs of concerts are charged against the permanent appropriation above mentioned, and the salaries of officials attached to the Section and other administrative costs are provided for on the annual vote, " Broadcasting." Members of the Orchestra and the concert artists are not engaged nor concerts promoted solely for broadcasting purposes. Section Bof the Statutes Amendment Act, 1947, empowers the Minister of Broadcasting " to organize and present concerts and entertainments for the general public, notwithstanding that the concerts or entertainments may not be broadcast," and in fact a few performances of the Orchestra and of certain artists were not broadcast. A tour of two concert artists proved costly to the Service, the expenses totalling £5,600 and the proceeds £1,200. A report in June, 1949, on the estimated income and expenditure of the whole Broadcasting Service indicated a probable loss in the accounts of the National Division for the year 1949-50, and suggestions were made to avoid such a result. One of them was that the ruling rates of depreciation of assets in the accounts be reduced. Investigation showed that the provision in the past had been generous, as the capital cost of much of the technical equipment, masts, &c., still in use had been fully covered. The engineers of the Service reported that the rates could safely be modified,' and Treasury and the Audit Office agreed. The consequent reduction for the year 1949-50 is estimated to amount to £21,000. Post and Telegraph Department Profits In the three financial years 1947-48, 1948-49, and 1949-50 the amounts received by Ordinary Revenue from Post Office earnings (including savings bank) were respectively £1,168,814, £1,109,967, and £997,928. At 31st March, 1949, the latest profits in respect of which payment had been made were part of the 1946-47 earnings of £1,397,928, to an amount of £400,000. At the same date one year later the balance of £997,928 had been paid over, but the whole of the earnings for 1947-48 were still in the possession of the Post Office. They had, however, shown a sharp decline from the previous year to £657,772, and in 1948-49 there was & further decrease to £304,754. Post Office Services for Other Departments When a falling off in Post and Telegraph Department earnings was mentioned in the press some months ago it was suggested that the Department made no charges for services rendered for other Departments and that its revenue could fairly be augmented by ma,lcing them in future. The suggestions that charges were not made were far from the facts, as a reference to the Department's accounts would have shown. The amounts collectable from other Government Departments were in 1946-47, £296,715, in 1947-48, £321,833, and in 1948-49, £407,425.

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