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Ottawa, 28 May 1993
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Decision CRTC 93-171
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Radio Beauséjour Inc.
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Shédiac, New Brunswick - 921768800
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Following a Public Hearing in Moncton beginning on 17 February 1993, the Commission approves the application for a broadcasting licence for a French-language FM community radio programming undertaking at Shédiac on the frequency 89.5 MHz (channel 208B), with an effective radiated power of 38,000 watts.
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Pursuant to Public Notice CRTC 1992-38 dated 29 May 1992 entitled "Policies for Community and Campus Radio", the Commission will issue a licence for a Type B community radio station. This licence will expire on 31 August 1999, and will be subject to the conditions specified in this decision and in the licence to be issued.
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The Commission expects community radio to develop innovative and alternative forms of community- oriented programming that contribute to the diversity and variety of radio services within a community. It also expects community radio to focus on all aspects of the community, by offering programming which examines issues affecting all of its members, as well as programs which deal with matters of interest to specific elements within it, such as neighbourhoods, surrounding towns, villages, and specific interest groups. Radio Beauséjour Inc. proposed to establish a community radio station to serve over 70,000 French-speaking Acadians in southeastern New Brunswick who live in the Moncton-Dieppe urban area and in several rural communities of Albert, Kent and Westmorland counties. The francophone population of this area is not served by any local French-language radio service, though listeners in Moncton and the immediate area receive the French-language campus/community station CKUM-FM Moncton. Residents can also receive the regional radio services of the English- and French-language networks of the Canadian Broadcasting Corporation through CBA and CBAF Moncton, as well as the services of CKCW (AM), CJMO-FM and CFQM-FM, that is, one AM and two FM private English-language radio stations.
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Radio Beauséjour Inc. not only seeks to serve the Moncton-Dieppe area, but is also interested in broadcasting to the rural Francophone population of southeastern New Brunswick, who will be the focus of a substantial portion of the station's programming. When questioned at the hearing about its commitment in this regard, the applicant stated that its Board of Directors will include representatives from each area of the southeast, and its members will be expected to support the regional orientation of the station. Monitoring committees will also be established to ensure that the station's regional character is maintained.
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In addition to offering an alternative to the CBC's extra-regional network, the applicant stated that its service would be distinct from that of CKUM-FM, which is primarily aimed at students and, to a lesser degree, at urban residents of Moncton and area. The applicant advised the Commission that it met with CKUM-FM to discuss the complementarity of their services and the possibility of sharing certain resources leading to, among other things, the exchange of news, the creation of joint training sessions for volunteer workers, the organization and promotion of concerts, the joint sale of advertising, etc.
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In approving this application, the Commission has taken into consideration the information provided with the application, including the results of a market study submitted by the applicant and the evidence of community support for this local French-language radio service. The Commission has taken particular note of the resources available in the area and the applicant's financial plan.
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With regard to financing, the application filed by Radio Beauséjour Inc. projects establishment costs totalling $406,796. The applicant indicated that these funds will be raised in part by grants and contributions from various quarters, including governmental sources, partly through donations and contributions from municipalities and community organizations, and from an annual fund-raising drive. The Commission notes that, at the time of the Public Hearing, Radio Beauséjour Inc. had about 2,000 members. In light of the foregoing and the information on file, the Commission is confident that the applicant will have access to sufficient financial and community support to establish the undertaking.
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Radio Beauséjour Inc. projected station operating revenues of $512,128 during the first year, of which $250,000 would be earned from local advertising. Other sources of revenue will include, in particular, government training and job-creation programs, the sale of memberships and the proceeds from various benefit events. The Commission notes the applicant's strong resolve to be financially self-sufficient. The Commission encourages Radio Beauséjour Inc. to diversify its sources of funding as much as possible over the next few years. The Commission notes the interventions presented at the hearing by Atlantic Stereo Ltd., licensee of CJMO-FM Moncton; the Maritime Broadcasting System, licensee of CKCW and CFQM-FM Moncton; and the Atlantic Association of Broadcasters. The Commission also notes the written interventions submitted by the Canadian Association of Broadcasters (CAB); CFBC/CJYC; Fundy Cable TV Ltd./Ltée; Radio Atlantic Group; and Radio One Ltd. who opposed the implementation of a new station in this market. With the exception of CFBC/CJYC and Fundy Cable TV Ltd./Ltée, all other interveners were concerned about the power level and projected contour of the proposed station. While not opposed to the establishment of a French-language radio station to serve the francophone communities in southeastern New Brunswick, the interveners expressed the concern that the new station could further fragment the advertising base in the Moncton region. They suggested that the technical parameters of the station should be more confined.
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At the public hearing, Radio Beauséjour Inc. emphasized that the project as submitted was the most advantageous, as much from an economical standpoint as for practical reasons. It mentioned in particular that being able to transmit from the CBC's antenna site at Lutes Mountain would enable it to provide all of the communities in southeastern New Brunswick with a signal of good quality. Radio Beauséjour Inc. also noted that the substantial savings to be realized by sharing an antenna site with the CBC would enhance significantly the viability of the undertaking. With respect to the fragmentation of the advertising base, the applicant pointed out that the Moncton radio market is financially sound, and that, as a result, existing broadcasters should not be concerned about the impact of Radio Beauséjour.
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In considering these interventions, the Commission has taken into account the financial health and untapped advertising potential of the Moncton market. It is satisfied that the station's power output need not be reduced on economic grounds, and that its technical parameters should be determined primarily on the basis of its mandate to serve its intended market in southeastern New Brunswick. The Commission notes that there are more Francophones living in rural areas than in Moncton-Dieppe, that the applicant intends to target its programming accordingly, and that the applicant has decided to locate its studio in Shédiac rather than Moncton, as demonstration of its good faith in this regard.
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Further, in view of the sound financial position of the radio market in the Moncton area, where before-tax profits in recent years have regularly exceeded the Canadian average for radio stations, and exceeded the average for stations in New Brunswick, the Commission considers that the establishment of proposed French-language community radio station will not jeopardize the survival of the other radio services in the area or unduly fragment the audience that they serve.
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The Commission notes the applicant's intention to establish a second studio in Saint-Louis-de-Kent as soon as it is in a financial position to do so, and to investigate the possibility of installing a low-power transmitter in that area if the quality of the signal from the originating station proves to be inadequate.
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It is a condition of licence that the applicant broadcast no more than 6 minutes of advertising in every hour of broadcast, and that it broadcast no more than an average of 4 minutes of advertising per hour of broadcast up to a total of 504 minutes of advertising per week, in accordance with the community radio policy for Type B stations. The Commission notes the applicant's proposal to broadcast 105 hours per week of locally-produced programming, together with some nightime programming.
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The Commission notes the applicant's proposal to broadcast a minimum of 4.5% Category 3 (Traditional and Special Interest) music as a percentage of overall music programming.
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With regard to the development of Canadian talent, the applicant intends to allow local artists to use its studios for the production of demo tapes. The broadcast of their music, performances and concerts was identified by the applicant as a top priority. The applicant also intends to produce concerts to promote and develop local talent.
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In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. It considers that community radio stations should be particularly sensitive to this issue in order to reflect fully the communities they serve. It encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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It is a condition of licence that the applicant adhere to the guidelines on gender portrayal set out in the CAB's "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and approved by the Commission.
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It is also a condition of licence that the applicant adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission. The Department of Communications (DOC) has advised the Commission that this application is conditionally technically acceptable, and that a Broadcasting Certificate will only be issued once it has been determined that the proposed technical parameters will not create any unacceptable interference with aeronautical NAV/COM services.
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In accordance with subsection 22(1) of the Broadcasting Act, the Commission will only issue the licence, and the authority granted herein may only be implemented, at such time as written notification is received from the DOC that its technical requirements have been met, and that a Broadcasting Certificate will be issued.
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It is a condition of licence that construction of this undertaking be completed and that it be in operation within twelve months of the date of receipt of the DOC notification referred to in the preceding paragraph or, where the applicant applies to the Commission within this period and satisfies the Commission that it cannot complete implementation before the expiry of this period and that an extension is in the public interest, within such further period of time as is approved in writing by the Commission.
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The CBC filed a written intervention opposing the applicant's use of the proposed frequency. The Corporation argued that, because the applicant failed to provide it with the technical documentation required under the established DOC procedure, it was unable to determine accurately the impact of the new Shediac station on the existing contour of CBHN-FM New Glasgow. The Commission notes that the DOC informed the Corporation that it foresaw no technical problems and, accordingly, was not opposed to the use of the proposed frequency.
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The Commission acknowledges the interventions presented at the hearing in support of the application by the municipality of Shediac, the Congrès Mondial Acadien, Société des acadiens et acadiennes du Nouveau-Brunswick, Association des radios communautaires acadiennes du Nouveau-Brunswick, and Alliance des radios communautaires du Canada Inc. The Commission also notes the written interventions filed the Association acadienne des artistes professionnel.le.s du Nouveau-Brunswick, Association canadienne de l'éducation de langue française, Fédération de la jeunesse canadienne-française Inc. (FJCF), Fédération des communautés francophone et acadienne du Canada, and Médias acadiens universitaires Inc. (CKUM-FM).
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Allan J. Darling
Secretary General
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