The full amount of the Estimate for the Broadcasting Service for the financial year 1931-32 is £78,784, which shows an increase of £3,398 over the Estimate for 1930-31. Last year's Estimate of £75,386 included £48,000 for the high-power station, none of which has been expended, so that the effective Estimate for the Dublin and Cork Stations last year may be taken as £27,381. Expenditure for the past year is estimated at £23,700, showing a saving on the Vote of £51,686, of which £48,000 is due to the provision for the high-power station not being expended, and £3,686 to savings in expenditure on the Dublin and Cork Stations. Taking into account expenditure on the Broadcasting Service borne on the Votes for the Post Office, Public Works and Buildings, and the Stationery Office, also provision for depreciation and interest on a commercial account basis, the total expenditure on the Broadcasting Service during the past year is estimated at about £33,000.
The receipts from wireless licence fees during the year are estimated at £13,500, from Customs tax £34,000, and from advertisement revenue £500, making gross estimated revenue of £48,000, or taking the cost of collection at 10 per cent., net revenue of £43,000, showing a surplus of about £10,000. Against this, however, it must be remembered that the general taxpayer is being asked to provide for a high-power station a large sum of money which is not likely to be recovered from broadcasting revenue for several years.
The estimated total expenditure on the broadcasting service during the next financial year is £98,561, made up of £78,784 in the Broadcasting Vote and £19,777 in other Votes. Of this sum of £98,561, the amount provided in all Votes for the erection of the high power station is £65,000 out of a total estimated cost of £175,000, so that an additional sum of £10,000 will be required for the high power station in the following year. Apart from the provision for the high-power station, the estimated expenditure on the Dublin and Cork stations for next year shows a reduction of about £1,200 as compared with last year. Revenue for the year 1931-32 is estimated at £14,000 from licence fees, £1,000 from advertisements, and probably about £30,000 from customs duties, making a total gross revenue of £45,000, or net revenue of £40,000. This revenue, as compared with the total estimated expenditure of £98,561, will leave an estimated deficit of over £58,000, which will be due entirely to the capital cost of erection of the high power station. Surplus revenue over current expenditure during the past few years and in the future will, however, it is anticipated, be quite sufficient on a commercial account basis to provide for depreciation fund and interest on capital expenditure. It is, of course, necessary that the broadcasting service should be considered as a business undertaking and should pay its way without assistance from general taxation.
Last year I dealt fully with the finances of the high power station. Our policy in regard to the necessity for a high power station has been confirmed by the trend of development of broadcasting in Europe, which is definitely towards large increases of the power stations. The Dublin and Cork stations do not give a service throughout the Saorstát, and the only means of effecting the best possible service, having regard to technical and international conditions, is by the erection of a high power station. The Dáil, last year, approved our proposals in this respect, and the large provision for the high power station in this year's Estimate is due to the delay in the selection of the site. Unforeseen difficulties arose in connection with the acquisition of the site originally chosen near Athlone, but steps are now being taken with a view to acquiring an alternative site in the same neighbourhood.
The number of current licences at the end of February was 26,000, as compared with 25,269 a year ago, which shows an increase of 731, and it is believed that a steady increase may be expected during the coming year. The only important staffing change during the past year was the discontinuance of the programme staff at the Cork station. This has resulted in a saving of nearly £1,000 a year. Only one weekly programme was given from the Cork station, and the cost of producing this was too heavy, as it was found that the work could be undertaken by the Dublin programme staff without appreciable extra cost. The studio at Cork has, however, been maintained, and programmes are frequently given there by local artistes. Programmes during the past year have, it is thought, shown a distinct improvement all round, having regard to the money and material available. The musical programmes have now reached a high standard, particularly the opera performances and the symphony concerts. The scope of the talks programme has been widened and efforts are being made towards a further improvement in this respect. Special attention is being paid to extending the use of Irish throughout the general programmes as far as possible, in addition to the special Irish musical programmes, talks and lessons.
An innovation in programmes has been the recent introduction of sponsored programmes. It was considered that the possible revenue derivable from broadcasting advertising should not be entirely disregarded, but, at the same time, it was realised that undiluted advertising talks such as had previously been allowed were not a desirable form of broadcasting advertising. Advertising by means of programmes in which the direct advertising is confined to brief introductory and closing announcements does not, however, appear to be open to objection, and a trial series of sponsored programmes is, therefore, at present being given. The arrangement is that sponsors pay a booking fee per hour and also provide the programme at their own expense. The gain to the broadcasting service is, therefore, the amount of the booking fee, plus the value of the programme. Preference is given to Irish advertisers, and advertisements of articles in competition with Irish manufacture are not accepted. Also, both the programme and the advertising matter must be approved by the Department. As only a comparatively small part of the total broadcasting time is allotted to sponsored programmes there is no appreciable encroachment upon the ordinary time of the Station.
There has been a very considerable improvement in the news during the past 12 months, and the weekly market news includes reports from the Stock Exchange, the Trade Commission in Great Britain, weekly bulletin of the Department of Agriculture, reports of the London Provision Market, Salford Cattle Market, etc.