AND THE N.Z.B.C PAYS ITS WAY

Taupo Times, Volume XIV, Issue 40, 25 May 1965, Page 10

AND THE N.Z.B.C PAYS ITS WAY

Thanks to a policy of prudent management dating back even through the years when it existed as a government department (the old NZBS) the New Zealand Broadcasting Corporation is one of those rare public service organisations which can fully pay their way. Contrary to widespread belief, not a penny from the taxpayers' purse is used to finance its activities. Entirely from its own resources it continues not only to foot the bill for the day-to-day running of the present varied and comprehensive broadcasting ser-

vices, but also to build up' the capital reserves that are vitally needed for future growth. More than this, however; the corporation pays income tax. Far from being a drain on public accounts, it remains one of the country 's biggest single contributors to the consolidated fund. In the 1963-64 financial year, | the NZBC paid taxes amounting to more than £250,000. Its total taxation outgoings for the four equivalent periods preceding this totalled more than £973,000. Taxation is not assessed on all corporation income, of course; only on the surplus of its commercial activities, which include the sale of advertising time and services and — more rec- { ently — the commercial side of its concert section's work. The organisation's other j main revenue — radio and j television licence fees — is exempt from income tax, but the Post Office recovers from the gross amount its costs of collection and of the administration of .

interference regulations. Xdcence fees are, iu effect, sums paid by listeners and viewers for the right to set up equipment to receive broadeast programmes. In New Zealand, these charges are roughly one penny a day for radio services and fourpence a day for those of television; very low, by any standards, when related to the size of our population and its wide spread eoverage over much rugged terrain where comparatively large numbers of stations are required to achieve adequate eoverage. Without the advertising revenue which supplements them, licence fees would have to be much higher than they are to cover heavy running and development expenses. The development expenses will be partieularly high in years to come, because of the NZBC's commitment to the progressive establishment of a countrywide television service, as well as to the improvement and extension of its existing radio facilities.