Preliminary Investigation by Commission: Policy announcement in month's time

Radio Record, Volume V, Issue 31, 12 February 1932, Page 5

Preliminary Investigation by Commission: Policy announcement in month's time

> A FULL meeting of the Radio Broadcasting Board, lasting for two days, was held last week. One of the principal subjects discussed was the question of "B" class stations. Representations were made on behalf of Stations 2ZW and 3ZC for financial assistance of a temporary nature to meet running costs until such time as the Boarc could formulate its main policy. To these requests the Board could not see its way to accede, and intimated that it had decided to obtain the best possible expert advice as to the proper method of obtaining Dominion-wide coverage. The investigators will be called upon to recommend alternative schemes as a basis for future development consistent with the likely financial resources of the Board. At the present time the Board is not in the position of knowing its immediate capital commitments, as the purchase price to the Government of the Broadcasting Company’s assets has not yet been determined. The Board has devoted considerable time to the "B" station question, and has come to the conclusion that this question is inseparable from the larger one of coverage, and can, therefore, only be adequately dealt with after the receipt of expert advice. The Board hopes to he able to indicate its attitude toward "B" stations in about one month’s time.

"B" Class Stations (Continued from page 5.) Board actually met on February 8, and 3ZC met the Board by arrangement and stated its case setting out that if the Board wished for further time to go into the question, 3ZC would be agreeable to wait that time, provided that the Board would give an undertaking now that it would do something, not necessarily any specific thing, for "B" class stations. In the course of the discussion, it was suggested that "B" station owners had embarked on their various enterprises for the purpose of personal gain, This is not denied for one moment, but the point was made in reply that during the last six months so many new restrictions have been placed upon the activities of "B" class stations by Government regulations that the sources of revenue which were available to them when they entered upon the business are no longer capable of being developed, and it was for this reason that the "B" stations were financially unable to continue their service. The authorities had altered the basis which existed when the licenses were granted, and the "B" stations embarked upon their enterprises, and that being so the Board, as the present keeper of the radio purse, might reasonably be. expected by listeners to offer some conipensation to provide for that loss of revenue, and make it possible for a continuance of the definite service being rendered listeners by these stations, A material factor in this’situation is that the existence of the "B" stations materially increases the number of licenses issued, and the Board are thereby really pocketing the revenue earned by. the "B" stations. The phenomenal jump in licenses in Wellington after the opening of Station 2ZW was sufficient proof of the work that "B" stations did in this way. It could confidently be claimed that, if it were left. to the listener himself to deter-

mine where his license money went, a very considerable volume of that money would be forwarded to "B" class stations in preference to YA stations. It was also suggested to the Board that "B" class stations should continue to be allowed to make reasonable use of the YA land lines for relay purposes on payment by the "B" stations concerned for any charges ineurred in their use. This was formerly allowed by the Broadcasting Company, and when all was said and done was only a matter of courtesy comparable to a man permitting another to use his telephone line when it was not required. This request was also deemed to be a question of policy, and the reply given that the Board was not prepared to make any concession whatsoever tu "B"

stations at the' present time, irrespective of whether the concession cost the Board anything or not. It is almost superfluous to point out that the Broadeasting Bill’s rapid passage was due to the fact that the Government gave an assurance that the major "B" stations would be provided for. "In view of the extremely discouraging attitude of the board," concluded Mr. Woodhead, ‘notably in the ease of relay lines, the loan of which would cost the board not one penny piece, the directors of 38ZC have been forced to the conclusion that if the board has any policy at all in regard to "B" class stations it is to discourage them, and hence we have no financial alternative but to consider immediately a curtailment and possibly cessation of our service,"