BROADCASTING

Evening Post, Volume CXVI, Issue 77, 28 September 1933, Page 12

BROADCASTING

BOARD'S REPORT

LAST YEAR'S OPERATIONS

FINANCIAL POSITION

A review of tho operations of tho New Zealand Broadcasting Board for the year ended December 31, 1932, is contained in the first annual report of tho board, which was x presented to Par-

liament yesterday. • _ "When the board assumed control of tho service, the hours of transmission were at tho rate of 10,612 per annum, states tho report. Tho hours have been extended by the board from time to time,, until at present the four stations are transmitting at the rate of 16,484 hours per annum. Transmissions totalled over 13,000 hours in 1932,- and of this time twelve hours were lost as a result of technical faults and power failures. . . "

"Compared with similar, organisations in other countries, tho board's greatest handicap on the programme side is the unavailability of suitable relay lines' to permit the relaying of programmes presented at tho national station (Wellington). At the request of tho board tlio Post and Telegraph Department is investigating the possibility of obtaining, equipment designed to make suitable relay circuits available: In addition, the possibility of rcbroadcasting direct the Wellington programmes is being investigated by out-, tors of the board in tho hopo that something may be done in this direction. "Entertainment formed the bulk of programmes", and no effort was spavod to secure "the services of .new artists. Tho results, however, liavo been disappointing, for" it ia the experience that only a small percentage of those granted auditions reach the required standard. While the board has endeavoured to encourage local artists, it has been forced to the conclusion that the number of artists in the Dominion capablo of maintaining a satisfactory standard is comparatively small. This is readily understood, however, when consideration, is given to tho relatively'small population of the Dominion. "During the year sixty-nine performances by musical' societies were broadcast, most of these being arranged under a so-called subsidy scheme -which has now been discontinued. Under the scheme mentioned all societies in the same town received the same payment, irrespective of the merit of the broadcast performances. Such a method, in the board's opinion, was not in the best interests of the service, and in its place an 'entertainment value' basis of payment is being adopted. PURCHASE OF ASSETS. "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 tho Radio Broadcasting Company of New Zealand, Ltd., at a cost of £59,839 "17s 2d. This amount ia 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 December 31, 1941. . Under an agreement between the board and the Minister of Telegraphs, interest on the balance of principal owing is set off to the extent, of interest credited to the board on licence fees held on behalf of the. board by the Post and Telegraph Department and not payable immediately for the working expenses of tho service.. During the : year , tho sum of £5039 17s 2d was paid off the principal. "As the transmitting equipment arid, associated apparatus are comparatively old, and as the policy of the board, following the recommendation "of thai 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 Kadki Broadcasting Company of New Zealand, Ltd;, and the Minister; of ; Telegraphs, which was charged to the board, has been written off in this year's accounts. Certain ol the assets taken over, such as alterations' to studios, have been depreciated proportionately to the duration of the tenancies, while assets'of little or no value to the board have been heavily depreciated, and, in gome instances, entirely written off. The valuations of machinery and plant, offtco and. studio equipment, and land and buildings,, as shown in the balance-sheet as at December 31, 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 £2379 10s, being repayment for plant and equipment not installed at December 31, 1932. The board has no capital fund; all additions to plant and renewals and replacements" of plant in view will bo made from-revenue. The board, having adopted a policy of replacement of plant, following the rocommendations of the Coverage- Commission) has this, year transferred the sum of £14,000 from revenue account to renewals and replacements reserve. "The excess of income over expenditure for the- year ended December 31, 1932, after providing for depreciation of assets, writing off haif' the costs of arbitration, and transferring £ 14,000 to renewals and replacements reserve, is £2357. ■■■''• " , .

"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 jrears.