Editorial Notes

Radio Record, Volume V, Issue 36, 18 March 1932, Page 4

Editorial Notes

| Wellington, Friday, Mar. 18, 1932 |

"THE long-awaited award upon the "value of the assets of the Radio Broadcasting Company-to be purchased first by the Government and subsequently transferred to the Radio Broadcasting Board-was made last week. The PostmasterGeneral, the Hon. A. Hamilton, intimated to the House that, after an extensive hearing of evidence advanced on behalf of the company and on behalf of the Post and Telegraph Department, and a personal examination of the four stations, the arbitrator, Mr. Justice Blair, had fixed thie price of the assets of the company at £58,646/6/2. This liability was now to be taken over by the Radio Broadcasting Board, which would be responsible for repaying the Crown under an agreement to be entered into between the Board and the Government. The "Radio Reeord" understands, however, from other sources that certain claims outside the actual fixed assets of the company have yet to be finalised, so that the actual figure involved in the termination of the arrangement with the Broadcasting Company may go to a slightly higher total. * cal € LN the course of the debate in the House upon broadcasting, the figure of £30,000 was mentioned as being the approximate value of the company’s assets. That figure became fixed in the minds of listeners as the possible sum to be paid, and accordingly the award of approximately double that figure, must come as a distinct shock both to those intimately concerned with the administration. of broadcasting and listeners themselves. Presumably the politician concerned in menégioning the figure he did was not making a mere guess but was working upon considered estimates supplied to him. In the interests of broadcasting itself it is, to say the least, regrettable that in the final upshot there should prove to be such a disparity between the preliminary estimates made upon the position and the final award made. The actual! facts, however, must be faced, and listeners seeking the satisfaction of public ownership of their service must be prepared to foot the bill.

" No good purpose would be served in traversing old ground, but in fairness to the Radio Broadcasting Company the comment might be made that the award of the arbitrator would seem to indicate that less than. justice was accorded the company in much of the controversial matter formerly put into currency. * * * HE question of paramount importance now is: How will the award react into the administration of the service? In the first instance the company will be paid out by the Government. That task in itself will not be welcomed by the Government in these days of exacting economy and financial depression. That, point, too, was emphasised in the political arena some fixe or six months ago, but was passed unheeded. Since then the financial situation has become appreciably worse. After paying out the company, it becomes a matter for Government policy to determine how soon and on what lines it will require the Radio Broadcasting Board to reimburse its expenditure. The Government cannot now be freed of responsibility for the broadcasting service, even though the actual administration thereof is entrusted to the Board. It stands faced with the moral obligation that services shall not deteriorate through public ownership from the standard obtaining under the company; furthermore, the whole essence of the transfer, from the listeners’ point of view, was that improvements-and decided | improvements-should be effected in the service. -In honour the Government stands committed to see that those improvements are not jeopardised by the actual financial terms imposed by it upon the Board. It will therefore be incumbent upon the Government to determine as a matter of policy what period it will allow the Board in which to pay. If the Government is in the position to extend long-term credit, extending over not less than fifteen years, then the Board may be able to meet the situation and still undertake a reasonable policy of improvement. ..If, however, the Government, under pressure of financial necessity, decides that it must have its money repaid cither forthwith: or over a __ limited

a number of years, then the only course available is for permission to be accorded to the Board to secure a bank overdraft. | While the security of the Board’s assets and business would warrant an overdraft of the amount involved, that course would immediately saddle the Board with two things: First, a heavy interest bill at overdraft rates of from 6 per cent. to 7 per cent., and the obligation to reduce that overdraft in as short a period as possible. It is apparent, therefore, that the Government is faced with an issue of importance not only to itself but to listeners in determining the financial terms to be submitted to the Board. Listeners will await, therefore, with much interest the decision of the Government. Facing things as they are, it would seem that whatever the ultimate benefits may be of the transfer of the service to public ownership and adminisation, the immediate gains hoped for will be limited by financial factors and conditions. In view of the magnitude of the sum awarded, listeners now appreciate the necessity for the caution displayed by the Board in meeting earlier demands for expansion of services. While the financial outlook has its difficulties, we entertain no doubts as to the capacity of the Board and the service to meet the situation. Listeners must simply recognise facts, but by doing that and extending consideration and co-operation steady advances to the desired end may be made. * * Oe "THE first meeting of the recentlyappointed Advisory Council was held in Wellington last week. The whole of the eight members appointed attended from the various parts of the Dominion, and engaged in a full discussion of the whole situation. The Wellington representative, Mr. J. H. Owen, was appointed chairman, and at the conclusion of their deliberations, which extended over two days, made a brief statement. This statement is cast in cautious vein for two reasons: First, the all-pervading factor of finance, and secondly, because of the necessity for. awaiting the report of the Coverage Commission. This Commission is now embarking upon its detailed investigation, but preparation of its report will take

some time. Pending finality in that report, the Advisory Council can merely indicate its general desire that those districts at present ill served by YA stations might in the meantirne receive consideration by co-operation being accorded to the stations affected. The centres most concerned were listed as Invercargill, Greymouth, Masterton, Hastings, Gisborne, Palmerston North, New Plymouth and Hamilton. The Council indicated that the policy of the Board should ultimately be to increase the power and coverage of the YA stations, rather than to build numerous small stations. agreement will be accorded to thitse pious resolutions, but it will obviously be for the management and the Board to determine just how far and when it can give effect to the course suggested. Other subjects discussed by the Council were radio interference, on which the Council considered Government regulation was required, the questionnaire, where approval was expressed of the desire to secure a reflection of listeners’ views, and the adoption of a standard of English for announcers, ® a % "THE decision of the Board to issue a questionnaire to listeners has met with marked general approval. The comprehensiveness of :the questions to be answered by listeners appeals to the public as an indication of the desire of the management to give as close consideration as possible to their wishes. Some correspondence has appeared in the Press expressing the fear that popular subjects would receive an overwhelming vote, to the sacrifice of the more intellectual and higher classical side of programmes. That is a phase which certainly requires consideration. Sir John Reith, of the British Broadcasting Corporation, throughout his administra¥ion has consistently followed the pglicy of giving listeners programmes just "a little above their heads." In this way a good standard has been attained, which was earlier upheld as the model for New Zealand. Apparently it all comes back to a question of degree. It would be regrettable for the programme level to be reduced to any low level. We do not imagine for one moment, however, that that will be the outcome of any’ effort to give a greater conformity to popular desires by adaptation or rearrangement that may be indicated by the results of the questionnaire.