7 OCTOBER
THE NEW ZEALAND GAZETTE
3279

with the application or the BCNZ, there was a comparative
dearth of real, sustainable criticism either from a commercial
point of view or from the listening public.

The trade survey could be interpreted as showing a high
degree of satisfaction with existing services to advertisers
and no enthusiastic espousal of the proposition that another
station would lead to increases in advertising expenditure on
radio. The survey needs to be regarded with some caution in
view of responses to suggestions of inadequate reception and
lower advertising costs.

In the main survey conducted in September/October 1981,
it was to be noted that apart from suggestions for a wider
range of music (when asked to comment on commercial radio
services and programmes), there was no percentage of listeners
in double figures with any one suggestion for improvement.

Without prompting, 24-hour local radio was suggested by
only 5 percent of respondents and a similar number proposed
more local news information, better announcers and sports
coverage. Slightly more thought there should be FM broadcasting.

Of those surveyed, 29 percent could not think of anything
in the way of improvements. Only 1 percent put forward
the idea of more stations broadcasting.

When prompted with a series of statements about com-
mercial radio and invited to agree or disagree with them,
the highest agreement was with the statement that there
should be a greater variety of music on radio where more
than two-thirds of respondents agreed.

But more people disagreed than agreed with the following
statements:
There should be more local news on radio.
There are too many commercials on radio at present.
There should be more Hawke’s Bay regional news on radio.
There should be locally originating programmes 24 hours
a day.
There should be more comment on Hawke’s Bay regional
affairs on radio.

There was, however, a 58 percent majority who thought
there should be a locally owned private station operating in
the Hawke’s Bay and 50 percent who thought there should
be a commercial radio station serving the entire Hawke’s
Bay. Those last two figures do not, in our judgment,
evidence strong support for the application.

It is difficult to see that they represent needs to be satisfied
rather than opinions expressed.

Some of the responses to later questions illustrate a prefer-
ence rather than the existence of a need or any significant
degree of dissatisfaction.

We find no broad dissatisfaction with the radio services
but some demand for a variety in music played.

In February 1982 a survey was conducted in respect of
the levels of awareness of FM radio and the incidence of
FM radio receivers in Hawke’s Bay. In the result it was
clear that the proportion of households with FM receivers
was high, having regard to the fact that no FM services are
available in New Zealand. It is understandable that until
such services are available and are heard, large numbers of
respondents to surveys are unlikely to express a desire for
FM broadcasting. The figures produced showed a higher
penetration of FM receivers in households than the Tribunal
had expected would be the case in this area.

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

The Post Office is prepared to certify 1125 kHz planned for
Waipawa and 1584 kHz planned for Dannevirke for the use
of the applicant. The proposed sites are only 35 km and
25 km respectively, from those locations. International co-
ordination and registration does not appear to be a problem.

The applicant put forward alternatives for Takapau pro-
posal which would require further technical study. The
proposals were not favoured by the Post Office. In the event
we did not have to pursue the matter. The applicant realised
the regard that must be had for the finite nature of frequencies
for AM stations and is to be commended for striving to find
alternatives.

The grant of the application would preclude the use of
the frequencies in the future for some desirable programming
purpose.

A better frequency utilisation in the public interest would
be achieved by the use of the VHF for stereo FM pro-
grammes.

(i) The desirability of avoiding monopolies in the ownership
or control of news media.

The applicant would provide an alternative radio news
service.

The company’s most significant shareholders will be the
two newspaper companies who provide the principal news-
paper news service in the area.

There would need to be some restrictions on these com-
panies’ shareholdings to limit the extent to which a trend to
monopoly could develop through an increase in their share-
holdings in the applicant company. With the emphasis of
the station on news and current affairs, newspaper share-
holding should be limited. It could be otherwise with a FM
operation—where news was a less important programming
element.

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

The applicant proposes locally originated programmes for
24 hours a day. This would bring to the area origination
during the off-peak listening times from 7 p.m. to 6 a.m.
We have given weight to this advantage but, having regard
to the audience levels and the other evidence we heard, cannot
give the same weight that the applicant placed on it.

While it would bring a local identity from 7 p.m. to 6 a.m.,
it would be unlikely that the applicant could consistently
match the standard of presentation and services the evening
and all night network programmes of Radio New Zealand
achieve.

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

The self-imposed limit is similar to that adopted by other
private applicants. It encourages listening and recognises the
limited market available outside peak hours.

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

The rates and charges are pitched to be attractive and
would change and vary according to the station’s ratings
performance in each zone.

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

It did not prove necessary to canvass any matters under
this heading that are not covered elsewhere.

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

We accept the concern that private witnesses expressed
regarding the effect a new station would have on the proposed
extension of concert programme services in FM in the area.
We considered the loss of revenue to the BCNZ arising from
the grant of a warrant in the area, while not being the only
factor, must weigh in the considerations which lead to the
planning for more commercial FM concert programme trans-
mission.

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

The Tribunal is required to have regard to the policy of
the Government under which a FM broadcasting service is
to be developed as an integral part of sound radio broad-
casting in New Zealand. This is required by regulation 15a
as inserted by Broadcasting Regulations 1977, Amendment
No. 5 (S.R. 1981/295).

Section 68 (1) also requires the Tribunal to have regard
to the general policy of the Government in relation to broad-
casting and to comply with any written direction given by
the Minister to the Tribunal.

On 27 October 1981, the Minister notified the Tribunal
(inter alia) that it is part of the general policy of the New
Zealand Government in relation to broadcasting.

(a) That frequency modulation broadcasting be developed
as an integral part of sound-radio broadcasting in
New Zealand.

(b) That FM broadcasting be introduced without delay.

The direction also refers to the extension of the Concert
Programme to areas such as Hawke’s Bay, the encouragement
of local groups to establish locally owned FM stations and
that generally simulcasting with AM stations should not be
permitted. The Tribunal is directed to call for applications
for commercial FM stations progressively through New
Zealand.