3274
THE NEW ZEALAND GAZETTE
No. 117

as musical preferences. The station’s three major components,
easy listening, soft rock music, music of the sixties and seven-
ties and popular artists album tracks were liked by the great
majority of the potential audience.

We considered the survey a useful and practical one. Again
however, we must comment that predictions or preferred
options by respondents have to be taken with some caution.
The survey revealed, as we have learned elsewhere, there
is a general audience preference for stations operated by
private organisations although it is clear that ownership is
not a critical issue. The survey also showed listener preference
for some complementary programming of FM stations in
Auckland.

(h) The requirement that frequencies be best utilised in
the public interest.

The grant of warrants to Metropolitan and Stereo FM will
provide a range of programmes for the benefit of the audience
in Auckland. We are not satisfied that any other combination
would provide a better coverage of the Auckland radio
audience.

(i) The desirability of avoiding monopolies in the owner-
ship or control of news media.

The question did not directly arise. However, it is con-
venient to discuss here the shareholding of Wilson and
Horton Ltd. in Stereo FM. We do not find the ownership or
part ownership of an FM station in the Auckland market
by a newspaper group or groups a negative factor. It would be
otherwise if they chose also to take shareholdings in other
stations in the same market. The regulations limit those
possibilities.

The diversity of news sources is well established. We see
the FM station as having less significance in a news and
current affairs sense than an AM station. We also refer to
the adoption of the Tribunal’s recommendations in the FM
report by the Government as is endorsed in the direction of
27 October 1981.

(j) The hours during which the applicant proposes to
broadcast programmes.

All applicants intend to broadcast 24 hours a day.

(k) The extent of advertising matter which the applicant
proposes to broadcast.

Stereo FM and Metropolitan proposed a maximum of 8
minutes per hour, IZM 10 minutes and Enterprises 14. There
are clear advantages in reducing commercial content in FM
broadcasting. However the Tribunal will not impose a
condition.

(l) The proposed rates and charges to be made in respect
of advertising programmes.

The desirability of 60-second commercials was canvassed
before us. In the end, we consider nothing depended on the
point. They appear to be a desirable feature of FM broad-
casting.

No particular applicant’s rates and charges had any par-
ticular merit for the application.

(m) Such matters as may be necessary for the purpose of
imposing conditions under section 71 of this Act.

The Tribunal does not find it necessary to impose a con-
dition regarding town planning approval. If planning approval
is not forthcoming at one site, another can be obtained or
an alternative method of getting the programme to the trans-
mitter can be used.

It appears to us on the evidence, and after inspecting the
television transmitting station, there will be little difficulty
in making physical and technical co-siting arrangements with
the BCNZ at Waiatarua. There may be differences about
financial matters. There will be a condition requiring co-siting
and the BCNZ to apply for any variation. Any financial
differences ought to be resolved by negotiation or arbitrated.

(n) All relevant evidence or representations received by it
at the hearing.

Some emphasis was placed on the location of the Enterprise
studio as giving a line of sight access to the Waiatarua trans-
mitter. The Tribunal has come to the conclusion that except
in the case of this company, the studio arrangements are not
particularly advantageous to one or other applicant. If there
is difficulty in using one site for a studio we are quite sure
other suitable studio sites can be obtained, but we acknow-
ledge that the arrangements to associate with Stebbing studios
do provide an advantage to this applicant.

Radio I made submissions but gave no evidence. Some of
the points are dealt with elsewhere. Others had been disposed
of in the course of the hearing. We have rejected the sub-
mission that there should be two similar style stations on
the FM band.

(o) Such other matters as may be prescribed in regulations
in that behalf.

The Tribunal agreed with the BCNZ that the policy of the
Government in relation to FM broadcasting did not hinder
the Corporation’s application being treated on its own merits.

Regulation 15A, Broadcasting Regulations 1977 as enacted
in Amendment No. 5 (S.R. 1981/295) requires the Tribunal
when considering any application for an FM broadcasting
station, to have regard to the policy of the Government under
which a frequency modulation broadcasting service is to be
developed as an integral part of sound-radio broadcasting in
New Zealand.

The Tribunal, therefore, is required not only under section
68 but also when considering the factors in section 80, to have
regard to Government policy. We must therefore have regard
to the policy of the Government as enunciated in the
directions given to the Tribunal and the Corporation.

The Tribunal further has to take into account that
there is to be a development of FM broadcasting as Govern-
ment policy. (Paragraph 2 (a) direction 27 October 1981).

The applications must each be dealt with on their merits.
(Paragraph 3 (b) direction to the BCNZ 14 April 1982.)

The withdrawal of IZM from full commercial status is
to enable the development of FM broadcasting in Auckland.
(Paragraph (3) direction to BCNZ 14 April 1982.)

The directions given have, in nearly every case, followed
the recommendations of the Tribunal in its August 1981 FM
Report. We consider it appropriate that where a recommenda-
tion of the Tribunal has been put into effect as part of the
policy of the Government, then the Tribunal is entitled to have
regard to the reasons set out in the Tribunal’s report on FM
broadcasting as part of that policy. However, it is not
necessary in the present case to go further than the direction.

It is clear to us that this, in effect, precluded the Tribunal
from considering the deleterious effects on the BCNZ of the
non-grant of a warrant for a IZM-FM. The Corporation’s
statements about its financial position which would arise if
it were not successful with its application, arise in any event
by reason of the direction given by the Minister of Broadcasting.

We believe the effect of those directions and the statements
of Government policy they contain, is to require us not to
regard as a merit for the application of the BCNZ, the fact
that the Corporation may lose some revenue if it does not
get an FM warrant. That arises because of the Minister’s
direction that the station apply for an amendment to its
warrant to make it non-commercial (except for limited
sponsorship).

The Tribunal therefore does not have to consider the effect
on IZM of the commencement of FM broadcasting.

We do not think the Tribunal should give great weight to
the Corporation’s argument that it needs the warrant to get
money so that when the station is profitable in several years
time, it may be able to contribute to the cost of establishing
other stations. In any case, we think it doubtful that the
Corporation could depend on any significant contribution to
its finances from this venture for many years.

Decision—The applications by the Broadcasting Corporation
of New Zealand and FM Radio Enterprises Ltd. are declined.
The applications by Metropolitan FM Broadcasting Ltd. and
Stereo Frequency Modulation Ltd. are granted.

The coverage objectives of both stations will be to provide
a stereophonic service to most of the areas directly served
by television transmissions from Waiatarua.

CONDITIONS

The usual conditions will be inserted in the warrants.

The warrants will lapse unless they are taken up within
12 months of the date of this decision or of the date of
the final determination of any appeal unless extended by
the Tribunal. There will be a prohibition on networking in
terms of section 71 with an exception as given to private
stations other than Radio Pacific. Advertising will be per-
mitted in the same terms as for other private stations.

Any prospectus issued will have to be approved by the
Tribunal as to any references made about the Tribunal or
the grant of a warrant or the effect of this decision.

The warrant holders will be required to co-site with the
BCNZ Television facility at Waiatarua and steps shall be
taken to ensure that the signal strengths of the 2 stations are
maintained at the same level. The warrant holders may apply
for leave to vary this condition should there be failure to
secure agreement as to co-siting.

The usual clause will be imposed requiring adherence to
technical rules.

The Tribunal does not consider that it should impose the
detailed condition as to the nature of the station’s programmes.
However in order to ensure that stations adhere to the pro-
mises made when applications are submitted and to ensure
that there is no radical departure from what was intended, the
Tribunal will impose the following conditions.