Government and B Stations

Hawke's Bay Herald-Tribune, Issue 121, 8 June 1937, Page 7

Government and B Stations

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ADVERTISING USED ILLEGALLY Broadcasting Act May Be Enlorced MINISTER'S STATEMENT

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DUNEDIN, This Day. The Acting-Minister of Broadcasting, the Hon. F. Jones, issues the following statement: "That broadcasting is truly a 'community serviCe' is evidenced by the fact that in New Zealand alone there are nearly a quarter of a million radio receiving * licenses in operation, and I feel that one would be safe in expr&ssing the opinion that during soine time of the day or night not less than three-quarters of a million of the population listen to a part or the whole of /a programme transmitted from one of our own staticr-s or from abroad. "With so many people affected by broadcasting, it is not difficult to couelude that there are thousands who consider that tkey could manage this service better than it is being conducted to-day, and who, so far as their personal likes are coneerned, 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 pubTic generally, it as the opinion of the Government that its

management should be in the' hands of the peoples ' representatives. "In different parts of the Dominion efforts are being made to stir up an 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 ereate a wrong impression in the minds of the people. At the outset I wish it to be definifely known that in the negotiations that are at present proceeding, if any owner of a B sation is not prepared to sell out to the Government, no compulsion will be exercised, and he will be pennitted to continue to operate it as heretoforo. "After the present Government took cffice and? had had an opportunity of considering broadcasting m all its intricate and parying phases, it decided that radio advertising should be under its control. This decision was reached as a result of investigafcions disclosing what was occurring in other countries where advertising over the air was in the hands of powerful syndieates and companies which reaped the profits. It was thougkt that whatever Tevenue was fortkcoming from this source in tho Dominion should be retained by the State for the benefit of listeners. Thero will be few people who do not agreo with this decision Opportunity to Sell. "As the action of the Government in this matter prevented the inclusion of advertising matter »in prograimnes 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. "Some time after the whole of the valuations were reeeived 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 inter■viewed me, and I was informed that there was a unanimous desire on tho 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 instanee the amount offered was in exccss of the valuation. An cxtension of timo in which f urtlier to consider tho matter was askcd for and granted, and furthermoro an assuranco was given that the Govornment would be agreeable to negotiate i'or 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 settleinent not being reached by negotiation, I wouid arrange for the cases to be submitted to arbitration. It is submitted that nothing could be fairer than that. Purchase of Eight Stations. "Already arrangemeuts 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 qnostion of subsidies. It is apprcciated that some of the B stations that are being purckased are established in lo-

ealities which are remote from maia , centres and where the feception pro vided by existing national stationg is not first class, In sueh eases it is in--: tended to continue the operation of tho local stations until such time as a better service can be provided. "A. point that cannot be over-empha-siscd is that, had it not been for the action of the Government in' coming ro their rescue, praetically all of the B stations in the DominiOn would have been forced to elose down. This will be apparant when I point out that every B station owner was faeed 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 perpared to sell, so it will be seen that with these exceptions praetically every station owner is willing to sell provided he can get his owd price. "To Squeeze More Money." "Ever since the holding of the conference of B-station owners to which I have alreadv 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 earried ou 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. Others again have been allowing both direct and indirect from their stations, and for this there a,dverti?ing matter to be transmitted from their stations and for this there are substantial grounds for believing that they have been reeeiving payment. It is only comparatively recently, however, that it was brought to my knowledge that advertising was being iudulged in by some B stations. Now, every licensee of a broadcasting station is fully aware of the provisions of thfe Broadcasting Act passed last session, and it is obvious that those who are permitting the transmission of advertising matter are intentionally viol'ating the law. "Perhaps it would be as well to quote the Act on the subject, Seetion 14 speeifically 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 seetion goes on to say that the Minister may from time to time establish and operate commercial 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 immediate action will be taken strictly to enforee the provisions of the B oadcasting Act in regard to the trana mission of advertising matter. Enforcement of Law. 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 Kection 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 authorises him to prohibit eitlier 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 seetion also provides for the concellation of the Iicense of any station which fails to comply with any probihition or eondition that may be 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 eondition. "In conclusion I wish it to be distinctly understood that I am not unmindful of the faet 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 harrass 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 uot so much in the interests of the listeners as a whole as for reasons of their own."