State Control of Radio

Radio Record, Volume IV, Issue 14, 17 October 1930, Page 1

State Control of Radio

Ministerial Scheme not yet Mature

Parliament to discuss Proposals before final Commitment

EEN interest has been displayed by the Press in the announcement regarding ‘radio made by the PostmasterGeneral. Leading articles have appeared in most influential papers, and almost. wholly look askance at the idea of the State intruding itself into this field. In view of the importance of the matter to listeners we give excerpts from leading papers: The "New Zealand Herald" states :-"‘The scheme is either grossly extravagant or too pretentious to be realised, and therefore represents promises that cannot be fulfilled. Mr. Donald admits that the provision of programmes has still to be arranged, but professes to be confident that, with suggestions from members of Parliament and others, this will be a simple matter. In

‘other words,» the Government has decided to plunge into an experiment involving an unknown expenditure, without even adequate appreciation of the complex and harassing difficulty of arranging hundreds of programmes annually, to suit a catholic variety of tastes in a vast audience of extremely sensitive critics. _If the Broadcasting Company had relinquished its license in despair, there might have been some excuse for the Government’s Calling on its technicians to keep the service going, but its action in deliberately assumine the

responsibility is incomprehen~~«sible. There has never been a ‘more foolish example of State interference in a field positively marked for private enterprise nor one that will be more vehemently condemned by the general public." Tue "Times," Christchurch :-"It is not clear from the Minister’s statement whether he proposes to continue the present policy of entering into a contract with a broadcasting company or whether he proposes to saddle the Post and Telegraph: Department with the business of broadcasting. His remarks left room oafor the latter inference. Public ypinion, however, will certainly not tolerate any extension of Government activities in this direction. It is perfectly proper for the Government to maintain control of broadcastine. to insist

on the provision of suitable equipment, to arrange the hours of broadcasting, and to see that the stations provide a satisfactory service. A Government broadcasting service, on the other hand, would be an incessant nuisance. As for the B class stations, the Minister seems to be contemplating a move that would simply make for confusion. If minor stations are licensed they will either have to carry on under present conditions, which means that they ~-4ycannot be commercially profitable, or will have to be subsidised out of license fees from listeners, impairing the efficiency of the main stations; or else they will have to be given the right to broadcast advertising. Once a B station becornes commercially attractive there will be a rush for permits to broadcast, and it will be impossible for the Government to deny licenses to any if it

issues one. The Minister has only to study the conditions obtain ing in North America to realise that there is a real danger im weakness on this subject."

Tue "Press," Christchurch:-"In announcing the Government’s intention of placing the control of broadcasting in the hands of the Post and Telegraph Department, the Postmaster General gave the odd impression that he was driven to speak be fore he was quite ready. The sketchiness of this "policy state« ment" was one sign of haste. The fact of its preceding any notice to the Radio Broadcasting Company, although the Minister "would have liked" to notify it first, was another; and when Mr. Donald collects himself and is able to fill

out some of the blanks in his story, he may explain why he could not wait to tell it more completely or even delay it long enough to break the news to the present licensee, as he wished, However it is carried out, the change announced is sufficiently, important and threatens a sufficiently great public expense to make it highly undesirable that there should be a rash or uncertain step at any stage. So far, # is not easy to be confident. Even

if it is a habit of Mr. Donald’s, which he illustrated a few days ago, to be a little uncertain of what he should say and when to say it, the Government appears to have made up its mind to undertake both great responsibility and great expense, and yet has decided "nothing definite . . . concerning the actual plan." "Perhaps the most necessary suggestion (Conclusion page 2.).

Still in the Melting Pot. OLLOWING.on the announcement made on Monday, October 6, as to the Government’s intentions regarding radio, the Post-master-General has announced that the scheme is still "in the melting pot," and he preferred for the present not to elaborate the scheme in detail as it had not been finally worked out. However, the idea was that the Post and Telegraph Department would assume control of the technical side, attending to such matters as keeping the equipment in order and up to date. No plan had yet been developed as far as the broadcasting of programmes was concerned, but it was not intended that the department would conduct that part of the business. Mr. Donald expressed confidence that his department could attend to the technical work at the broadcasting station without any material increase in staff. ‘ Subsequently, in the House of Representatives the Hon. J. B. Donald, in reply to an urgent question by the Leader of the Opposition, Right Hon. J. G. Coates, agreed that no financial commitments would be made by the Government concerning its plans for the future of radio broadcasting control until Parliament had had a chance to review any scheme drawn up. Drawing attention to the Post-master-General’s outline of the Government’s intentions concerning radio control, Mr. Coates said expenditure would be necessary to give the scheme effect and in addition the question of policy was also intruded. He asked that before any commitments were made concerning expenditure full particulars of the Government’s proposals should be placed before the House, including the estimated capital cost and the annual charges. Parliament would be rising shortly and he felt that the House should at least have a chance to examine the proposals. Not until it had had that chance should the Government take any action. Mr. Donald said he would give the assurance asked.

to make is the warning that neither the Post and Telegraph Department, nor Cabinet, nor any conceivable committee of Parliamentarians is likely to do anything but bungle the job of reorganising the programme policy, and they must all leave it alone.. A State Department,:or a branch of a State Department, ought no more to control what goes into the’ microphone and comes out-of the loud speaker than it ought to control literature, art, the pulpit, or the Press, It will: be reassuring to hear-if it is the truth-that there will be no such attempt." _ The "Sun" :-"Broadcasting has now become @ national affair, and it is right that it shoul@ be under some form of Government supervision or control. Provincial listeners-in will feel themselves entitled to these extra services; but the cost of broadcasting is going to be ‘heavily increased. The position would then be that the Government would either have to increase the license fees, or, failing that, rely on a large Incréase of licensed listeners-in. The number of licenses now held is in. the neighbourhood of 50,000; but the Postmaster-General in his statement said that he thought the number could be increased to 100,000. If that can be done, there should be no reason to fear fee increases; but on the other hand there is everything to be urged in favour of a reduction in license fees for erystal sets.." "Star," Dunedini-"‘The Broadcasting Company has been far from satisfying all its listeners; that would be an impossibility for any control. In the service which it gives, however, the company has very greatly exceeded the minimum requirements made of it by its contract, and the tendency has been continually to do more. The company has borne the labour and the cost of putting broadcasting on an established footing; in those inaugural years it has had no opportunity of earning the limit of profits allowed to it by its agreement; and it appears unlikely that its money would have been put into such an enterprise if it had not had good reason, from a previous Government, for thinking that, provided the best was made by it of early difficulties, its contract would be ‘renewed. The calculation may have been made that, now that-the heaviest spade work has been accomplished,. with a department already in being, to take over the service and with the fees from listeners and dealers which it would receive, the Government would stand no chance of losing by its assumption of control. But the improved stations and the new stations which have been foreshadowed cannot be had for nothing; the time is the worst of all times for new Government expenditure on what is, after all, merely a luxury; and Government calculations of the financial prospects of new enterprises that are embarked upon can be sadly belied in practice. A Government broadcasting service, there is reason to fear, would be most likely to become a very routine, unadaptable service ounce it had. been established. It would be no new experience if it should prove much harder to obtain improvements of it than from a private company ; and it is not clear but that the services of the present company might be relieved of their chief hindrances fo improvement by a revision of its contract with Bae Government." NV

"Star," Auckland :-"Many New Zealanders may ask why ‘the Government, which has its hands so full..of difficul- ' ties, should add to them by faking éver the broadcasting stations and services. It is true that the company does not satisfy everybody, but it is reasonable to suppose that the service will improve still further, and what broadcasting system is there that is not a target for criticism? The Government cannot think that it is going to have an easy time as entertainer. The only justification for this unexpected change is the intention, expressed by the Post-master-General,, to add to the-number of stations and bring all humble customers into the system. This’ should* be a popular move. On the. other -hand, with one’s experience of Government enterprises, one cannot: help feeling doubtful about the finance of the scheme and the quality of the pro-

grammes. It is important to know what the taking over and the additions are going to cost the country and what are the estimates of annual revenue and expenditure. Moreover, in State control of a monopolistic pub. licity and entertainment service there is an obvious danger to freedom of thought and expression." "Dominion," Wellington: -~ "Much water will flow under the bridge and, incidentally, a general election will be held before January, 1932, when the present Government proposes to take over the radio broadcasting service. Listeners should therefore not worry overmuch at a hypothetical event still far removed in time. Apparently the Government intends not only to elaborate the existing stations but to add seven new ones in provincial centres, each as good as or better than those already functioning in Auckland, Christchurch or Dunedin. ‘That. will cost money when State funds are supposed to be low. As a matter of fact the present licensee is reported to be willing to make these extensions. If that is so, why should the State step in to create a new department, more officials and fresh liabilities and at the same time lose the tax revenue it draws from the present company? The answer may be service. But since when did the State give better service at the same or even at a much higher price than private enterprise? Listeners should be very critical of this stggested transfer to officialdom and the general taxpayer on his guard lest he

find another State service on his hands for:subsidies. The Postmaster-General’. can be given credit for the best of intentions, even if he has acted precipitately, but it may be. hoped that .he will take time’ to reconsider what appears to be a hastily-conceived and’ ill-advised decision."