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considerable planning, winch was accomplished within forty-eight hours of the Cabinet decision being known. The loss in revenue resulting'from these last severe "power cuts amounts to approximately 40 per cent, of the turnover. Opportunity was taken during reduced broadcasting hours to proceed with the various maintenance works that could not be kept up during the war years, and an increase was effected in the production of recorded material for later use. Transcribed Programmes The majority of transcribed programmes heard over the ZB stations originated from producers overseas, but the often-heard statement that they are mostly American is not in accordance with fact. During the year the number of episodes utilized on national programmes broadcast by the various ZB stations amounted to 8,908 quarterhour episodes, and of this number only 584 were of American origin, which is but 6*55 per cent, of the total. In all, 74 series of complete programmes, 42 were of Australian origin, 20 were made in New Zealand, 2 in Great Britain, and 10 in America.; Many books have been dramatized for radio and proved vdry successful. Radio programmes based on novels have often resulted in an immediate rush on lending libraries in areas where the particular programme may have been heard. The 8.8.C. also provided a number of excellent programmes the best being the documentaries " The Harbour Called Mulberry " and " Radar." Advertising The Commercial Division has practically reached saturation point in regard to advertising schedules. Nearly all time placements are occupied by advertisers, and a lengthy waiting-list contains the names of many national and local firms anxious to secure time on the ZB stations. The success of the Commercial Division as an advertising medium cannot be disputed in the light of the many success stories associated with our advertising, which are on the files. There is ample evidence to suggest that additional broadcasting stations would be well supported. Advertising Rates The advertising rates have not been increased since 1938, despite the fact that costs associated with broadcasting have risen considerably and the potential radio audience greatly increased. Most other advertising media have substantially increased rates, and it is suggested that a revision of our advertising rates could be readily justified. Plans are in hand to increase the power of the Commercial stations and thus give service to a wider audience. Community Service As in previous years, the ZB stations have actively associated themselves with the community life in their respective centres and, despite the pressure on their schedules, have devoted time and effort in assisting causes of both national and local importance. These causes have included : national savings, stabilization, Red Cross, food for Britain, outings for orphans and aged people, children's parties, health instruction, campaign for recruiting nurses, staff for the Government services, road safety, forestpreservation, electricity conservation, electoral notices, &c. The extent of this aid is perhaps not generally realized. Community services, if measured in advertising terms, would be valued at tens of thousands of pounds a year. Conclusion The Commercial Division of the New Zealand Broadcasting Service is a wellorganized Department providing highly efficient service to the business community. The ZB stations perform a social and useful function and earn their own livelihood.

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