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Decision
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Ottawa, 20 March 1987
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Decision CRTC 87-192
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Téléduc Inc.
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Trois-Rivières, Quebec - 862925500
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Following a Public Hearing in the National Capital Region on 17 February 1987, for the reasons set out below, the Commission denies the application to renew the broadcasting licence for CFCQ-FM Trois-Rivières, which expires 31 March 1987.
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Background
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The Commission authorized the operation of CFCQ-FM in 1976 (Decision CRTC 76-773) without having previously issued a call for applications, in view of the particular nature of the proposed service. In its decision, the Commission noted the distinctive characteristics of the proposed programming as follows:
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The proposed programming as described ... is essentially educational, oriented toward school and school-related needs, institutional needs and student information. Courses which can be used to earn school credits will constitute a sizeable percentage of the programs broadcast by the station; the station will also present programs provided by educational institutions in the region.
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In subsequent decisions, the Commission reminded the licensee of its commitments in this regard. In 1981 (Decision CRTC 81-315), the Commission stated that it expected the licensee to maintain its educational orientation during the next licence term. In 1982 (Decision CRTC 82-677), the Commission authorized the station's broadcasting time to be increased from 80 to 112 hours per week "providing that it does not affect the educational character of the station"; it further noted the licensee's commitment to broadcast at least eleven hours of credit courses per week and reminded it that "at no time should the station's music programming conflict with, or take precedence over, the educational nature of the station." Further, in 1983, the licensee was authorized to broadcast a maximum of 4 minutes per hour of restricted advertising (Decision CRTC 83-258).
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In Notice of Public Hearing CRTC 1986-32 dated 21 April 1986 announcing that the licence renewal would be considered at a public hearing on 17 June 1986, the Commission noted that CFCQ-FM had come back on the air on 16 March 1986 after an interval of approximately eighteen months. It pointed out the licensee's proposed amendments to the Promise of Performance, noting in particular that CFCQ-FM's orientation would be changed by a reduction in its educational content. The Commission stated its intention to discuss this matter with the licensee at the hearing, as well as the agreement between Téléduc Inc. and 2332-6192 Quebec Inc. (2332-6192).
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Decision CRTC 86-787 dated 25 August 1986 noted that, at the 17 June 1986 public hearing, the licensee was unable to support its educational programming proposals or to alleviate the Commission's serious concerns with regard to the proposed orientation of CFCQ-FM. Specifically, with respect to its original promise concerning education, the licensee stated [TRANSLATION]:
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I think that it has been abandoned as an objective and what we really want is to educate but not necessarily in the sense of providing courses for people.
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In addition, the Commission noted that the matter of the division of the management and programming functions between Téléduc Inc. and 2332-6192, in accordance with a management contract entered into by the two companies, had not been explained to the Commission's satisfaction.
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Accordingly, the Commission denied all of the licensee's proposed amendments to its Promise of Performance and renewed the licence for only six months. The Commission required that CFCQ-FM remain an educational radio station, that it adhere to the current Promise of Performance, and that control of the licensee's operation and of its programming not be delegated to another party without the prior approval of the Commission. The Commission added:
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Should the licensee decide at any time that it no longer wishes to operate CFCQ-FM as an educational station in accordance with its mandate, the Comission would expect it to surrender its licence ...
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At the time of the next licence renewal application, the Commission will call the licensee to a public hearing and the licensee will have to demonstrate clearly that it has complied with its authorized Promise of Performance, failing which it will have to justify any future licence renewal. The Commission warns the licensee that any departure from the requirements of this decision and the conditions of its licence may jeopardize the renewal of its licence.
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Public Hearing of 17 February 1987
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In preparation for the 17 February 1987 hearing, the Commission asked the licensee to submit a self-assessment of its performance for the week of 20 to 26 October 1986 along with that week's program log, its playlists, detail of its foreground programming as well as the logger tapes. In its reply dated 14 November 1986, the licensee admitted that there were serious discrepancies between its actual operation and the commitment given in its current Promise of Performance and that it was unable to submit the playlists and information on its foreground programming as requested by the Commission.
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The self-assessment report contained an admission of numerous very serious and unequivocal shortcomings, in particular: the broadcast of only 19 hours of spoken word programming as opposed to its commitment of 59 hours per week; only 7% foreground format programming in spite of a commitment of 40%; and a level of 40% of combined foreground and mosaic programming compared with a commitment of 80%.
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With respect to its music programming, CFCQ-FM had broadcast 102 hours 30 minutes of Music - General during the week in question in spite of its commitment to broadcast only 22 hours per week, tripling the number of hits it played in relation to its commitment. It also did not broadcast any Music - Traditional and Special Interest, although it had promised to broadcast 26 hours of such music. Moreover, the vocal/instrumental ratio of its popular music was significantly different from what it had committed (75/25 instead of 30/70), and it had broadcast 60% French-language vocal music compared with its commitment of 95%. During that week in October 1986, 81% of the programming broadcast by CFCQ-FM was essentially musical in nature, contrary to its authorized format which is predominantly spoken word.
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Another self-assessment submitted by the licensee at the Commission's request for the week of 12 to 18 January 1987 also revealed numerous, serious shortcomings and a level of 76% music programming.
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Moreover, the licensee acknowledged this state of affairs when it said at the hearing [TRANSLATION]:
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It is obvious - as indicated in the self-assessments that you have in front of you, and as was stated in the renewal application - CFCQ is not at present operating in compliance with its Promise of Performance.
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Further, the licensee indicated that it had no intention of bringing CFCQ-FM back into conformity with its original Promise of Performance when it stated [TRANSLATION]: "... it is impossible to go back to that format."
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Discussions at the public hearing revealed that no formal courses are presently being broadcast by the station; conventional advertising is being broadcast contrary to the authority it has received which only permits restricted advertising; and the station's studios have been moved from Trois-Rivières to Cap-de-la-Madeleine without the Commission's prior approval. Notice of the application with respect to this change in studio location (870038700) was published for comment in Public Notice CRTC 1987-13 dated 16 January 1987.
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At the hearing, the Commission also questioned the licensee at length on its ownership and management structure, particularly with regard to the control that it exercises over its programming. While it appreciates the licensee's candour with respect to the numerous explanations given, the Commission considers that the licensee has not succeeded in demonstrating to the Commission's satisfaction that CFCQ-FM has retained control over its management and programming, which seem in actual fact to have been assumed by 2332-6192, a private commercial enterprise. According to documents submitted by the licensee and its statements at the hearing, it appears that 2332-6192 has been given a mandate to create, produce and market CFCQ-FM's programming, with all the attendant risks and benefits, and that to this end it issues cheques and receives money, particularly advertising revenues, royalty payments and licence fees, all of which prerogatives are normally assumed by the actual licensee.
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The Commission is concerned that the licensee is no longer exercising its responsibilities under the Broadcasting Act, in particular subsection 3(c) of the Act, which states that all persons licensed to carry on broadcasting undertakings have a responsibility for programs they broadcast. The Commission is of the opinion that, given these facts, the licensee has abrogated its responsibility for its own programming and also for the management control of its own broadcasting undertaking despite the requirement contained in Decision CRTC 86-787, and that this is liable to cause harm to third parties, including station advertisers, creditors and government authorities.
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The Commission thus considers that it would not be in the public interest to renew the licence of CFCQ-FM or to approve the proposed amendments to its Promise of Performance. In accordance with the provisions of the Broadcasting Act the station, therefore, must cease operation by 31 March 1987, the date on which its licence expires.
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Other Matters
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As emphasized at the hearing, the Commission wishes to reiterate that it is not in disagreement with the concept of a new type of radio station being established in the Trois-Rivières region. Since the Broadcasting Act invests the Commission with the authority to regulate and supervise all aspects of the broadcasting system, it must ensure that any proposal submitted to it is designed to respond to the needs of the distinct community to be served, and is in accordance with existing policies and regulations. The ownership structure must also be appropriate to the nature of the service to be provided by that station.
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The Commission acknowledges the numerous letters of support from persons and groups in the community, in particular those submitted by a large number of educational institutions. It encourages all interested parties to become involved in developing plans for a radio station that would take into account the distinct needs of the population in the Trois-Rivières region.
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La Compagnie de Radiodiffusion Shawinigan Falls Ltée (CKSM) and Télémédia Communications Inc., licensee of CHLN Trois-Rivières, opposed the renewal on the grounds that CFCQ-FM was not operating in conformity with its Promise of Performance. Communications Radiomutuel Inc., licensee of CJTR Trois-Rivières, commented that the licence should only be renewed provided the educational character of the station is maintained.
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While it is disposed to encourage innovation and experimentation, the Commission is of the view that any proposal submitted to it must clearly establish its basic orientation and operational parameters. For the benefit of potential applicants who would like to submit proposals for educational radio stations, the Commission has today issued a public notice in which it announces its intention to undertake a review of educational radio (Public Notice 1987-79). It wishes to complete this review before considering any new applications.
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Fernand Bélisle
Secretary General
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