F.—3.

BROADCASTING LEGISLATION, ETC. The Broadcasting Amendment Act, 1934-35, which came into force on Ist April, 1935, increased the numerical strength of the Board from three to seven, and charged it with the additional responsibility of supervising the programmes broadcast by private broadcasting stations. In out this duty the Board interfered as little as possible with the programme arrangements of the stations, and no restrictions-were imposed which did not apply to the national stations. The Board desires to place on record the valuable service rendered to broadcasting by Mr. L. R. C. Macfarlane, ex-member of the Board, whose term of office expired on 31st March, 1935 ; also by Messrs. J. H. Owen, A. B. Chappell, J. S. Anchor, E. T. Davis, W. A. Waters, C. R. Russell, H. Booth, and A. W. Jones, members of the Advisory Council to the Board. The Council went out of existence, as a result of the Broadcasting Amendment Act, 1934-35. SUBSIDIZED PRIVATE BROADCASTING STATIONS. Regular monthly subsidies, which were originally granted to private stations operating in areas where reception from the Board's stations was indifferent, were paid throughout the year to eight such stations, and assistance in the form of gramophone recordings was also given. Relays of national programmes were also arranged regularly in some cases. Station IZH, Hamilton, ceased operations in August, 1935, and was replaced on the subsidized list by Station 4ZC, Cromwell. Following are particulars of the stations at present being subsidized : 2YB, New Plymouth ; 2ZE, Palmerston North; 2ZD, Masterton; 2ZJ, Gisborne; 2ZH, Napier; 3ZR, Greymouth; 4ZP, Invercargill; and 4ZC, Cromwell. FINANCIAL REPORT. The Board's fourth balance-sheet and the Revenue Account for the year 1935, certified by the Controller and Auditor-General, are presented with this report. During the year the new 4YA transmitter was erected, the total cost of land, buildings, and equipment at Highcliff and Dunedin being approximately £37,000. An amount of £9,728 14s. was expended in additional equipment to increase the power of the 3YA transmitter from 2| to 10 kilowatts. Balance-sheet. It has been deemed advisable to appropriate from revenue to Accumulated Fund the sum of £75,000 towards meeting capital expenditure. The principal work involving capital expenditure to which the Board is committed is the erection of a 60-kilowatt transmitting-station at Titahi Bay, Wellington. An area of land comprising 100 acres has already been secured, the construction of access roads is in hand, and tenders for the transmitting plant have been accepted. Tenders are also being invited for the erection of necessary buildings on the transmitting-site. It is estimated that the total capital expenditure involved in these works will be in the vicinity of £86,000. The building of suitable studio and office accommodation at Christchurch and Dunedin will have to be undertaken within the next few years, while at Wellington similar provision is a matter of urgency, and demands the attention of the Board in the coming year. Revenue Account. After providing the sum of £19,345 ss. lOd. for depreciation of assets and transferring £75,000 to Accumulated Fund, there is an excess of income over expenditure for the year ended 31st December, 1935, of £2,502 14s. sd. The expenditure on programmes in 1935 was £15,429 4s. 9d. greater than in 1934. This is an item of expenditure which will increase year by year. In addition to an expenditure of £1,628 17s. 9d. in providing gramophone recordings, relay lines, and equipment to the eight subsidized private stations, £2,622 was paid in cash subsidies. The installation of high-powered transmitting plants considerably increases expenditure under the heading " Maintenance of Plant, Power, Salaries of Engineering and Operating Staffs.'' This is reflected in the accounts now submitted, which show an increase under this heading of £2,227 2s. The comparative figures for general expenses, &c., are —1935, £14,579 15s. 3d. : 1934, £12,749 8s 2d. : and for administration, salaries, and expenses are —1935, £7,463 ss. 6d. ; 1934, £6,017 os. Id. The Board's revenue from licenses was £195,038 2s. 9d. in 1935, as against £164,928 10s. Bd. in 1934. As from Ist April, 1935, the Board agreed to accept 235. per receiving-license fee instead of 255. provided for in the agreement with the Minister. From the date mentioned, the cost of a license was reduced from 30s. to 255. H. D. Vickery, Chairman. W. EL Cocker, Geo. R. Hutchinson, j H. G. Livingstone, Members o{ the Boar(L Ernest Palliser, J. L. Passmore, S. Kenneth Phillips,^

5