Board Control of Broadcasting Bill Passes All Stages

Radio Record, Volume V, Issue 18, 13 November 1931, Page 3

Board Control of Broadcasting Bill Passes All Stages

The Broadcasting Bill, introduced some time ago by the then

Postmaster-General,

Mr.

J. B.

Donald

was, this week, again

brought before the House by the Hon. H. A. Hamilton (P.M.G.). With slight alteration it passed through the remaining stages. As a result, broadcasting in New Zealand will, from January 1, 1932, be placed under the control of a board of three, selected by the Postmaster-General, with an advisory committee of eight.

N moving the second reading, the Postmaster-General commented on the development of broadcasting in New Zealand. Broadcasting was a recent development, but it had already become an important factor in the social and

educational life of the people. It had established itself on a firm foundation ay4i was entitled to consideration as a p of the national life. Mr. Hamilteferred to wireless services other than broadcasting in New Zealand, and said that the Postal Department had about £64,000 invested in wireless. Broadcasting was of both national and international importance and had consequently to be very carefully controlled. There were different forms of control in different. parts of the world, and it appeared as if the general system of control was passing through a transition stage. Britain was the only, country that had adopted State control, but Australia was moving in that direction, and the Bill, if passed, would place New Zealand on a. similar footing to Britain. Broadcasting was of such a public nature that the State must in"evitably take a large-share in its control.

‘Referring to the agreement with the Radio Broadcasting Company of New Zealand, the Minister said the company had developed the service at a rapid rate. When it commenced operations there had been only 5000 listeners-in, and now there were 67,000. The company’s license expired on December 31, and the time had arrived when the Government would have to make new arrangements. There were two things the Government could do-either establish a board to control radio or form a public company for that purpose. One of the difficulties of public ownership was the question of sound finance. It was diffieult to control a publicly-owned company because the public would want a good service without much expenditure,, A great deal could be said in fav@- of a company, but it would be diff§ult for the State to enter into an agreement with a company that would be satisfactory both to the company and the Crown. The present company had taken a great risk when it entered into the agreement with the Government in the infancy of the broadcasting system, but the risk had been justified. The revenue from licenses now amounted to about £80,000 a year. Purchase of Company’s Interest. HE company had hoped for a re- ) newal of the agreement, but the Government had decided to exercise its right? to purchase the company’s interest. he price to be paid would be agreed "upon between the Government and thé: company, if possible, and if that proved impossible it would be submitted to arbitration. The Government was proposing to follow very similar lines to those adopted in Great Bri-

tain. There was some opposition to public control, but the broadcasting system was so essential a public institution that it would have to be controlled by the public. In reply to a question regarding B stations, Mr. Hamilton said that was a matter of policy for the board. He believed the. Government would get a good type of man for the board. He had received a great many applications for positions on it, but he had not considered them, and would not do until

the Bill was passed. The Government had lent £15,000 to the company, and that would go toward the purchase price of the system. Dealing with the Bill in detail, the Minister said that it proposed to set up a board of three members, and not of four, as had originally been intended. The £1350 previously proposed as remuneration to the board would be retained, the chairman receiving £650 and the other two members £350 each. The board would have power to establish advisory committees wherever there was

a station, and these committees would help with the arrangement of pyrogrammes. Advisory Council. us Bill also proposed to establish an advisory council of eight members, five from the North Island and three from the South. The council would only act in an advisory capacity to the board, but it was considered by the Government that some such system was necessary to enable listeners-in to have some say in the control of radio. The members of the council would be appointed by the Minister from nominations received from the various listeners’ organisations. The council would probably only meet about once a year. Members would receive travelling allowances and probably a guinea a day while attending to the business of the council, ‘ After a short discussion, during which no objections were raised to the principle of the Bill, it passed the second reading. The Final Stage. QN Thursday last the Bill came before the House again, and after a comparatively short discussion was put through its remaining stages and passed. During the committee stages several members made a plea for favourable consideration for the B stations. The Postmaster-General admitted that the B stations were doing good work, but said the policy in respect to them would have to be. decided after the board had been set up. , It might be better to make arrangements with the B stations, and bring them up to a certain standard so that they would be able to carry on with the assistance of the board. His information was that there were about 36 B stations.in New Zealand. Perhaps 12 would be enough to assist, but he did not know. If a standard were set up for 12, that might be sufficient to provide an efficient service. The B stations were doing valuable work, and 12 established on a sound basis would probably give quite a good service. ' In reply to a questign, Mr. Hamilton said the board would have power to assist these stations. ‘Che question of the land lines would be one for the board to decide. Mr, Hamilton pointed out that all the revenue did not come from listeners; a fair proportion came from traders. On coming before the Legislative Council the Bill was accorded unanimous support. During the debate the Rt. Hon. Sir Francis Bell said it was not fair, as some critics had done, to abuse a company which had done its best under the circumstances. He was not associated with the company, nor did he know one person in it, but he thought that nearly every man and woman in New Zealand who had subscribed to the service was indebted to the company for its work over the last three of four years. The views expressed by Sir Francis were endorsed by the Hon, G. Witty. (Concluded on page 80.)

Radio Control

(Continued from page 3.) Sir James Parr, in replying to the debate, said that the Government was taking over a first-class business. The board could make or mar the service. R.B.C, Co-operation Assured. "THE passing of the Broadcasting Bill by Parliament means that as from January 1 next the Government will take over the ownership: of the broadcasting service and that the Radio Broadcasting Company will automatically go out of existence on December 31," said Mr. William Goodfellow, chairman of directors of the Radio Broadeasting Company, Limited, last week. This decision for the State to take over the service and operate it under the control of a board was essentially 2 matter of Government policy. Now that finality had been reached, Mr. Goodfellow, on behalf of the directors of the company, had no hesitation in assuring listeners that the company would use its best efforts to ensure that the highest standard of efficiency would be maintained until the end of the license period, and that the service would then be handed over to the Government in a first-class and thoroughly efficient condition. Pioneering Work. HE directors of the company were pleased to have had the Minister’s appreciation of the pioneering work performed by the company and his endorsement of the high standard of service rendered to the public, said Mr. Goodfellow. It was their belief that, having regard to the limited popula-

tion and the unusual topographical features of the Dominion, together with the comparatively short period of their license, the service rendered by the company compared more than favourably with systems in existence in other parts of the world. A widelydiversified service catering for all sections of the community was being provided and had been placed on a sound financial basis. . Probably one of the greatest difiiculties the company had had to contend with in building up the service had: been to restrict broadcasting to its legitimate channels and to prevent the overlapping of services that were outside its proper functions. The adoption of expedients so common to the inauguration of new enterprises had been scrupulously avoided, as they invariably resulted in legacies which, sooner or later, proved detrimental te permanent success.

Company’s Revenue. HE company’s revenue for the operation of the service has been drawn exclusively from the fees collected from licensed listeners and radio dealers. This was undoubtedly the most effective system under which the interests of listeners could be safeguarded. Other known methods of obtaining revenue for a radio service were from (a) advertising, or (b) Government subsidy. Six years’ experience by. the company has proved it possible to provide a good service without assistance from either of these sources, and the company believed from that experience, and from investigation of systems in other countries, that it would be a retrograde step for the service to have to depend on revenue from advertising, whether direct or in the form of sponsored programmes. Under that system, too, listeners’ interests would no longer be the paramount consideration. In this connection, Mr. Goodfellow continued, the company in the early

stages of its existence, when the financial outlook was doubtful, had been granted by the Government the right to supplement its revenue by advertising, but although working at a loss at that time, the company had then and ever since refrained from exercis‘ing that right. He was glad to say that they had been able to develop the service up to its present state of efficiency without having to draw any revenue whatsoever from, this source, although some very attractive proposals had been submitted to the company from time to time. Outstanding Need. N the opinion of the company’s directors the outstanding need of the service at present was the extension of broadcast facilities so’ that listeners in country districts might be provided with a service equal to that enjoyed by listeners in the four main centres. He personally. hoped that th, Government would provide for earliest possible provision of this requirement under the new regime. Mr. Goodfellow also stressed the importance of dealing as speedily as possible with the problem of man-made interference with radio reception, which often marred the best of programmes, and said he would like to see something done on the lines: that had been recommended by the company. The directors hoped that the Government would expedite the appointment of the board,:as they would be severing their connection with the service on December 31 next, and it was their desiré, ns it would be their earnest endeavour, to do all within their power to secure the smooth transference of the service from the company to the Government. Later on they hoped to have an opportunity of expressing their thanks to the listeners, to all the members of the various public relations committees, and others interested in radio who had rendered much splendid voluntary community service, and to the staff. who had so loyally served the company and the > public.