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Ottawa, 8 April 1992
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Decision CRTC 92-219
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Nation's Capital Television Incorporated
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Ottawa, Cornwall and Deseronto, Ontario - 911035400
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Following a Public Hearing in the National Capital Region beginning on 5 November 1991, the Commission renews the broadcasting licence for the television programming undertaking consisting of CTV affiliate CJOH-TV Ottawa and its transmitters CJOH-TV-8 Cornwall and CJOH-TV-6 Deseronto, from 1 November 1992 to 31 August 1999, subject to the conditions specified in the appendix to this decision and in the licence to be issued.
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In Decision CRTC 88-275 dated 8 April 1988, the Commission approved an application by Nation's Capital Television Incorporated (NCTI) to acquire the assets of CJOH-TV and its transmitters from Bushnell Communications Limited (Bushnell). Upon surrender of the licence issued to Bushnell, the Commission issued a licence to NCTI for four years and six months.
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NCTI is controlled by Baton Broadcasting Incorporated (Baton), which also controls television undertakings located at Toronto and Pembroke, as well as in northern Ontario and Saskatchewan. Baton is effectively controlled by members of the Eaton family of Toronto through their indirect ownership of a majority of Baton's voting shares. In Decision CRTC 88-275 the Commission set out a number of conditions and expectations, including requirements for local programming. During the 1991-1992 broadcast year, CJOH-TV is required, by condition of licence, to broadcast 29 hours and 30 minutes per week of local programming.
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The Commission is generally satisfied with NCTI's performance under its present ownership and notes that, to date, CJOH-TV has fulfilled the requirements specified in Decision CRTC 88-275. Based upon this performance and the licensee's programming commitments for the new licence term, the Commission considers that CJOH-TV's licence should be renewed for a full term.
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CJOH-TV currently broadcasts 168 hours of programming per week. The effectiveness and popularity of CJOH-TV's local programming is reflected in the numerous interventions supporting the station's licence renewal. The Commission commends CJOH-TV on its performance in broadcasting news and other local programming that reflect the needs and concerns of the communities it serves. During the new licence term, the Commission encourages the licensee to maintain this approach, and expects CJOH-TV to meet its commitment to produce and broadcast a minimum of 12 hours and 38 minutes of local news per week.
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The Commission notes that several of the programming-related commitments made by the licensee for the new licence term represent a continuation of several of the expenditures that were offered by NCTI as major benefits in the context of the ownership transaction approved in Decision CRTC 88-275.
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As part of that earlier benefits package, NCTI made a commitment to allocate $100,000 annually to a script and concept development fund for programs to be produced by writers, directors and producers from the Ottawa region. NCTI's annual funding of script and concept development has increased each year by the rate of inflation. This, together with unused amounts from the previous years, will ensure that $115,000 is available in the current broadcast year. NCTI will maintain the fund during the new licence term.
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NCTI advised the Commission that, although its development fund has enabled it to identify some "exceptionally gifted, creative people within our region", most of the concepts and proposals that it has received are, in its view, impractical to produce at a local station level. The licensee therefore proposed to enlarge the scope of the fund's mandate by including expenses associated with the production of pilots or demonstration videos. It also proposed to cap funding at $115,000 annually.
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The Commission accepts NCTI's proposed changes, but reminds the licensee that it is expected to adhere to the Commission's guidelines regarding script and concept development funding as outlined in Public Notice CRTC 1989-27. Further, the Commission encourages NCTI to continue to broadcast programming produced by independent producers.
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According to the financial projections provided with CJOH-TV's licence renewal application, the licensee will expend $15,369,000 on Canadian programming in the broadcast year ending 31 August 1993. As stated in Public Notice CRTC 1989-27, the Commission considers that the level of spending on Canadian programming is a vital element in ensuring the quality of Canadian programs. For this reason, NCTI is required, by condition of licence, to adhere to its forecast for expenditures on Canadian programming in the broadcast year ending 31 August 1993, at a minimum, and to adjust such expenditures in subsequent years in accordance with the formula prescribed in the appendix to this decision and linked to station advertising revenues.
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As stated in Public Notice CRTC 1992-28 of today's date, the Commission has decided to introduce modifications to the formula, first announced in Public Notice CRTC 1989-27, in order to permit licensees additional flexibility in meeting the Commission's requirements regarding Canadian programming expenditures. The condition of licence set out in the appendix to this decision contains these modifications.
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CJOH-TV divides its programming expenditures into three main categories: expenses for Canadian programs broadcast, expenses for non-Canadian programs broadcast, and other programming expenses. The $15,369,000 figure noted above for Canadian program expenditures refers to the amount allocated for Canadian programs broadcast during the broadcast year 1992-93. The Commission expects NCTI to maintain its existing accounting procedures with regard to its programming expenditures. In future, the Commission will continue to use the amount allotted for Canadian programs broadcast, in assessing the licensee's compliance with its condition of licence.
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NCTI had requested the Commission to delete the existing condition of licence requiring it to adhere to the guidelines on sex-role portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming. NCTI has advised the Commission of its internal procedures to sensitize its staff to this code. Further, the Commission notes that NCTI is a member of the Canadian Broadcast Standards Council (CBSC) which was endorsed by the Commission in Public Notice CRTC 1991-90 dated 30 August 1991. Among other activities, this Council administers the CAB's codes on programming conduct. Although the Commission will require CJOH-TV, by condition of licence, to continue to adhere to the guidelines on sex-role portrayal set out in the CAB's code, the application of the condition of licence will be suspended as long as the licensee remains a member in good standing of the CBSC. This condition of licence is set out in the appendix to this decision.
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The Commission acknowledges the more than 157 interventions which it received regarding this application: all but two of which expressed support for the renewal of CJOH-TV's licence.
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Allan J. Darling
Secretary General
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APPENDIX TO DECISION CRTC 92-219
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The broadcasting licence of CJOH-TV Ottawa for the licence term 1 November 1992 to 31 August 1999 will be subject to the following conditions of licence and to others contained in the licence to be issued.
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1. For purposes of conditions 2 to 5 inclusive, all terms are to be interpreted and all calculations are to be made in accordance with the explanations set out in Public Notice CRTC 1992-28, dated 8 April 1992.
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2. Subject to conditions 3 and 4, the licensee shall spend on Canadian programming, at a minimum:
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(a) for the year ending 31 August 1993, the amount of $15,369,000;
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(b) for the year ending 31 August 1994, the amount set out in paragraph (a) above, increased (or decreased) by the year-over-year percentage change for the year ending 31 August 1993, in the total of the station's revenues from local time sales, national times sales and payments (if any) received from networks, as reported in the relevant Annual Return;
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(c) for the year ending 31 August 1995, the minimum required expenditure calculated in accordance with paragraph (b) above, increased (or decreased) by the average of the year-over-year percentage changes for the years ending 31 August 1993 and 31 August 1994, in the total of the station's revenues from local time sales, national times sales and payments (if any) received from networks, as reported in the relevant Annual Returns; and
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(d) in each subsequent year, an amount calculated in accordance with the following formula: the amount of the ii
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previous year's minimum required expenditure, increased or decreased) by the average of the year-over-year percentage changes for the years ending on 31 August of the three previous years, in the total of the station's revenues from local time sales, national times sales and payments (if any) received from networks, as reported in the relevant Annual Returns.
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3. In any year of the licence term, other than the final year, the licensee may spend an amount on Canadian programming that is up to five percent (5%) less than the minimum required expenditure for that year set out in or calculated in accordance with condition 2; in such case, the licensee shall expend in the following year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underspending.
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4. In any year of the licence term, the licensee may spend an amount on Canadian programming that is greater than the minimum required expenditure for that year set out in or calculated in accordance with condition 2; in such case, the licensee may deduct
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(a) from the minimum required expenditure for the following year of the licence term, an amount not exceeding the amount of the previous year's overspending; and
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(b) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overspending and any amount deducted under paragraph (a) above. 5. Notwithstanding conditions 3 and 4 above, during the licence term, the licensee shall spend on Canadian programming, at a minimum, the total of the minimum required expenditures set out in or calculated in accordance with paragraphs (a) to (d) of condition 2.
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6. It is a condition of licence that the licensee adhere to the guidelines on sex-role portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.
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7. It is a condition of licence that the licensee adhere to the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
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