RADIO SERVICES

Wairarapa Times-Age, 31 July 1940, Page 4

RADIO SERVICES

DISCUSSION IN THE HOUSE OF REPRESENTATIVES REDUCTION OF FEES SUGGESTED LARGE RESERVES BUILT UP. AT PRESENT BEING USED BY TREASURY. (By Telegraph—Press Association.) WELLINGTON, This Day. The iiclniinistration of the National and Commercial Broadcasting Services came under critical review from Opposition and Independent members last night when the estimates of expenditure of the Broadcasting Account were discussed. The Prime Minister. Mr Fraser, who is Minister in Charge of Broadcasting, took urgency for the disposal of the vote. The Leader of the Opposition, Mr Hamilton, asked the Minister whether he did not think the publication of the “New Zealand Listener” was costing the account a lot of money. The revenue last year for the journal was £18,096. and the expenditure £30,437. Mr Fraser: “That was initial expenditure. It is just about paying its way now.” Mr Hamilton: “It shows a loss for last year of a little over £12,000.”

The Leader of the Opposition also asked how many copies of the “Listener” were paid for. Mr Fraser: “The journal has a 40,000 circulation, with very few free copies.” Mr Hamilton: “Of 345,000 licence holders, only 40.000 take the “Listener.” Mr Fraser: “A good many of them must borrow it." (Laughter). Mr Hamilton: "The Minister would have no difficulty if he gave the copyright to any magazine to publish the programmes. It would do it and pay a royalty for it. If the newspapers had the right to publish the programmes it would not cost the Government anything." The annual report of the services, Mr Hamilton said, indicated that broadcasting was a wonderfully lucrative business. It was very well conducted from that point of view. The National Service had built up its own capital from revenue, had lent money to the Commercial Service and today had a capital account of nearly £700,000. He asked whether the Minister would not be wise to consider a reduction of licence fees. “We have what is, I suppose, the highest licence fee in the world,” Mr Hamilton said. “It is a wonder the Minister of Finance has not had a look at this capital nest egg. Big reserves are being piled up.” NEW AUCKLAND BUILDING. It was a marvellous thing, Mr Hamilton added, that while work on Broadcasting House in Wellington and the new national station building in Dunedin had been shut down, the Commercial Service could get its £70,000 or £BO.OOO for a new building in Auckland.. It had come to his ear, he said, that the size of the Auckland building was largely brought about by the large influx of people in some of the items of the Friendly Road, such as the choirs. Mr Lee (Democrat Labour, Grey Lynn): “The old building is so small I don’t know how it was jammed.” Explaining the need for the new building in Auckland, Mr Fraser said the Government had received a very devastating report regarding the conditions under which the employees were working in IZB. It was a report no, Govenrment could ignore. In fact the Health Department had threatened to have the old station closed down. Station 7ZB would be housed in part of the new building, and the rest of it would be let to other Government departments or to private business firms. Referring to the “Listener,” Mr Fraser said part of the expenditure went in buying out the “Radio Record.” Then there had been a free issue of the “Listener” of 380,000 copies. Its circulation had risen from 20,000 to 40.000 recently, and he was certain, as a result of the advertisement given the journal by Mr Hamilton that night, it would rise again.” SUBSTANTIAL RESERVES. “Everybody will share in the pleasure at the Commercial Service having

turned the corner after a considerable struggle,” Mr Fraser. “It shows a substantial profit, which will pay a considerable amount to the national Exchequer.” Mr Hamilton: “How is it able to reduce its capital?” Mr Fraser: “From reserves it has built up.” An Opposition member: “It was putting away reserves, was it?” The Minister of Defence, Mr Jones: “It set aside certain sums for depreciation.” While there were big reserves in the National Service, the Prime Minister said, these were being utilised by the Treasury. This applied to the amount that would have been used in building Broadcasting House. Broadcasting had become one of the world’s most important institutions, and surely the National Service was justified in putting aside an adequate amount for improving and extending the service. AMENDMENT REJECTED. , As an indication that licence fees should be reduced, Mr Kyle (Opposition, Riccarton) moved that the total vote for broadcasting be reduced by £lO. His amendment was defeated by 37 votes to 17, the voting being on strictly party lines. “The debate has been on party lines and I will soon give the Government side an opportunity to show what their feelings are toward the licence holders,” said Mr Kyle. If the licence fee were reduced by 5s per annum, something like £BO,OOO would be given back to the listeners. They had to pay National Security and Social Security taxes and it was up to the Government to say to the workers, “We are giving you something.” The Government had been in office for five years and given the workers nothing. (Government laughter). As soon as Mr Kyle moved his amendment, the Prime Minister, Mr Fraser, moved the closure. On the amendment being defeated, the vote as a whole was passed without further discussion.