Deficit in First Six Months

Hawke's Bay Herald-Tribune, Volume 81, Issue 49, 20 November 1937, Page 4

Deficit in First Six Months

i Our Own Correspondent. i

COMMERCIAL RADIO Expenditure Exceeds Revenue by £4566 REPORT TO THE HOUSE

(Fron

WELLINGTON, Tliis Day. Financial results of the operation of the Oommercial Broadcasting Service for approximately six month to Marcli 51 last are given in the report of the National Broadcasting service which was presented in the H-ouse of Representatives yesterday. The revenue account for the service shows that- from Uctober 2 of last year to Maro.a 31 of this year the expenditure am- imtod to £11,029 0/5, anvl incorne i'rom the saies oi station tinje to £6462 6/8. Expenditure, therefore, exceeded income by £4566 13/9.The account shows that expenditure on programmes, including payments to artists, and sundry miscellaneous items amounted to £724 3/11. General administrative and running expenses were £9754 11/11. Interest amounted to £75 7/1; reserve for bad debts to £324 17/6; and depreciation on records to £150. "The broad busis of. the Commercial Broadcasting Service is that ip shall render a community service to the Jisteners of the Dominion as an alternative selection to the programmes of thb National Broadcasting Service," states the report, "and at the same time provide an additional avenue by which manufacturers and business houses generally ' can make known their commodities to the consuming public. Tho underJying principle of tbe Commercial Service is that it shall ultimately be self-supporting, the revenue to cover all operations being obtained from the advertiser in such measure as to onsure that the additional radio entertainment furnished to listeners by the commercial stations shall be without cost flo either the listeners or the State I" * . The report states that starting with a weekly revenue of £188, Station 1ZB had rapidly advanced so that at the end of five months' comihercial operation on March 31, the weekly revenue was in excess of £570, • At that date the organisation of the Wellington unit (2ZB) had proceeded to a point where advertising schedules providing a commencing revenue of £2000 a month could be projected for May. "Funds for the establishment of the servipe have been provided by advances from the Broadcasting Account," the report cohtinues, "and interest at 4 per-«cent. per annum on these advances has been taken into account. The amount expended from the BroadcastAccount in excess of cash received and deposited was £11,270 14/'3 at March 31. This, of course, includes capital items and establishment costs, such aspurchase of records and initial printing and statibnery charges. Machinery and plant includes some £4400 expended on technical equipment for Station 2ZB, the installation of • which was commenced jn March." The accounts of the National Broadcasting Service cover a period of 15 months to March 31. For the ' six months of this period np to June 30 of last year broadcasting wa s- controlled by the Broadcasting Board. Revenue tor the 15 months amounted to £314,007. The principal items of expenditure were £89,763 on programmes, £21,352 by way of administrative expenses and salaries, and £24,233 on maintenance of plant. After providing £14,945 S/- for depreciation of assets there was an excess of income over expenditure for the nine months ended March 31 last, of £94,519 '3/9. ThiB balance " had been transferred to the Appropriatioii Account and had in turn been appropriated in total to the Accumulated Fund to meet future heavy capital coinmitments,.