OVER THE AIR

Evening Post, Volume CXXIII, Issue 134, 8 June 1937, Page 10

OVER THE AIR

B CLASS STATIONS I

ACTION TO; BE TAKEN LAW DISREGARDED (Special to the "Evening Post") DUNEDIN, This Day. ■ The Acting Minister of Broadcasting (the Hon. F. Jones) issues the following statement: — That broadcasting is truly a "community service" is shown by the fact that in New Zealand alone there are nearly a quarter of a million radio receiving licences in operation, and I feel that one would be safe in expressing the opinion that during some time of the day or night not less than threequarters of a million of the population listen to a part or the whole of a programme transmitted from one of our own stations or from abroad. With so many people affected by broadcasting it is not difficult to conducy that there are thousands who consider they could manage this service better than it is being conducted today and who. f> far as their personal likes are concerned, know how programmes could be improved. Seeing that it would be impossible to get unanimity of opinion on these two points alone, and having regard to the fact that the cost of the service falls on the. public generally, it is the opinion of the Government that its management should be in the hands of the people's representatives in different parts of the Dominion. NO COMPULSION TO SELL. Efforts are being made to stir up agitation over B class stations, and from some of the statements, that are being made it is obvious that an endeavour is being made to create a wrong impression in th^ minds of the people. At the outset, I wish it to be definitely known that in the negotiations that are at present proceeding, if any owner of a B station is not prepared to sell out to the Government no compulsion will be exercised and he will be permitted ;to continue to operate it as heretofore. After the present Government took office and had had an opportunity of considering broadcasting in all its intricate and varying phases, it decided' that radio' advertising should be under its control. This decision was reached as a result of investigations disclosing what was occurring in other countries where advertising over the air was in the hands of powerful syndicates and companies which reaped the profits. It was thought that what-, ever revenue was forthcoming from this source in the Dominion.should be retained by. the State for. the. benefit of listeners. There will be few people who do not agree with this decision, as the action of the Government in this matter prevented the inclasion of advertising matter in programmes transmitted from B stations. It was considered to be only fair to afford the owners an opportunity of selling their stations to the Government if they were willing so to do. It is interesting to recall at this stage that no exception was taken by them when an announcement to -this effect was made. The first action that was taken to this end was the appointment of two capable valuers to visit each station and prepare a valuation, and again no exception was taken by the owners to this procedure. ■

OFFER TO STATION OWNERS. Some time after the whole of the valuations were received and ■ considered, an offer to purchase was made to all owners. Some of them agreed to accept the price offered, while some owners attended a conference convened in Wellington before committing themselves. Most of those who -attended :that conference subsequently interviewed me and I was informed that there was a unanimous desire on the- part of B owners to sell, but that some were not prepared to accept the price offered by the Government, although I would like to point out that in .almost every instance the amount offered was in excess of the valuation. An extension of time in which to consider the matter further was asked for and granted, and, furthermore, an assurance was given that the Government would be agreeable to negotiate for the purpose of arriving at a price that could be considered reasonable and that would be mutually acceptable. Moreover, a definite promise was given that in the event of a settlement not being reached by negotiation I would arrange for the cases to be submitted to arbitration. It is submitted that nothing could be fairer than that. Already arrangemetns have been completed for" the purchase of eight stations and negotiations are still in progress in respect of a number of others. When finality is reached in the present proceedings the Government will then consider and decide the question of subsidies. It is appreciated that some of the B stations that are being purchased ar,e established in localities which are remote from main centres, and where the reception provided by existing national stations is not first class. In such cases it is intended to continue the operation of the local station until such time as a better service can be provided. A point that cannot be over-empha-sised is that had it not been for the action of the Government in coming to their rescue, practically all of the B stations in the Dominion would have been forced to close down. This will be apparent t when I point out that every B station owner was faced with a legitimate demand for payment of copyright and for the right to broadcast ■ gramophone records. Of the 21 B stations in New Zealand only four owners have advised the Government that they are not prepared to sell, so it will be seen that-with these exceptions practically every station owner is willing to sell, provided he can get his own price. ' Ever since the holding of the conference of B station owners to which I have, already alluded, several of them have gone out of their-way to allow statements, to be broadcast from their studios alleging that the Government has not carried out its promise. I am inclined to think that in some instances this is being done for the purpose of endeavouring to squeeze more money out of the Government for their particular stations. ILLEGAL ADVERTISING. Others, again, have been allowing both direct and indirect , advertising matter to be transmitted from their stations and for this there are suostantial grounds for believing that they have been receiving payment. It was only comparatively recently, however, that it was brought to my knowledge that advertising was being indulged in by some B stations. Now, every licensee of a broadcasting station is fully aware of the provisions of the Broadcasting Act passed last session, and it is obvious that those who are permitting the transmission of advertising matter are intentionally yiolating the law. Perhaps it would be as well to quote the Act on the . subject. ' Section 14 specifically lays it down that no programme or part of a programme intended to serve as an advertisement for the pecuniary benefit of any person, shall ■be transmitted from any broadcasting station whether operated by the Minister or by any other person. The section goes on to say that the Minister may from time to time establish and operate commer-

cial broadcasting stations from which programmes that include advertising .matter may be transmitted. ' A continuance of what has been taking place will not be longer permitted by the Government and immediata action will be taken to enforce strictly the provisions of the Broadcasting Act in regard to the transmission of advertising matter PROGRAMMES TO BE SUPERVISED. In view also of the utter disregard of certain other ■ provisions of the law that has been shown—and is still being displayed by some station owners—it is proposed to carry out: the terms of section 15 of the Broadcasting Act of last year.. This gives the Minister power to supervise all programmes to be transmitted from private broadcasting stations and -uthorises him to prohibit either absolutely or subject to such conditions as he thinks fit the transmission from any broadcasting station of any programme or part of a programme which in his opinion, is unsuitable for broadcasting. . This particular section also provides for th# cancellation of the licence of an? station which fails to comply with an? prohibition or condition that may ba imposed with respect to its programme, or for the taking of any other action considered necessary for the purpose of ensuring compliance with any such prohibition or condition. In conclusion, -I wish it to be distinctly understood that I am not un- " mindful of the fact that the attitude of the great majority of the B station owners has been fair and reasonable and this is appreciated, but there are some who are endeavouring to harass the Government in order to achieve their own ends and they are being actively assisted by individuals and organisations, which I am inclined to think are so acting not so much in the interests of listeners as a whole as fo? reasons of their own.