RADIO AND TELEVISION ADVERTISING RATES (Payment by non-profit making institutions)

The following Question stood in the name of Mr J. F. Conceicao -

Mr J. F. Conceicao: To ask the Minister for Culture why non-profit making institutions have now to pay for advertisements on Radio and TV at full commercial rates.

Mr Speaker: Mr Conceicao.

Mr P. Selvadurai (Bukit Panjang): Question No. 15.

The Acting Minister for Culture (Mr Wee Toon Boon): Mr Speaker, Sir, by non-profit making institutions, I presume the Member for Katong is referring to Government departments, statutory boards, cultural organisations and charitable bodies.

The Treasury has ruled that with effect from 1st August, 1969, all Government departments and statutory boards have to pay for advertising over radio and TV at rates currently applicable to all advertisers. Consequently, the Broadcasting Division decided that an anomalous situation will arise if cultural organisations and charitable bodies were not charged advertising fees.

The rationale behind Treasury's ruling is that from the cost effectiveness point of view, it is essential that departments and statutory boards be able to show the results of its efforts in the true light of costs. This rationale is equally applicable to cultural organisations and statutory bodies.

Government departments now pay for their advertising by journal adjustments. Statutory boards pay by cheque or cash along commercial lines.

It is possible that certain cultural organisations and charitable bodies may not be financially capable of paying for radio and TV advertisements. Administratively, a procedure has to be evolved whereby such bodies with worthy objectives may apply to the Treasury for a grant for such advertising. In such cases, the merits of each effort can be scrutinised and evaluated.