ARCHIVED - Transcript, Hearing 12 May 2010

TRANSCRIPT OF PROCEEDINGS BEFORE

THE CANADIAN RADIO-TELEVISION AND

TELECOMMUNICATIONS COMMISSION

SUBJECT:

To consider the broadcasting applications listed in Broadcasting Notice of Consultation CRTC 2010-146

HELD AT:

Four Points by Sheraton

Toronto Airport West

6090 Dixie Road

Mississauga, Ontario

May 12, 2010

Transcripts

In order to meet the requirements of the Official Languages

Act, transcripts of proceedings before the Commission will be

bilingual as to their covers, the listing of the CRTC members

and staff attending the public hearings, and the Table of

Contents.

However, the aforementioned publication is the recorded

verbatim transcript and, as such, is taped and transcribed in

either of the official languages, depending on the language

spoken by the participant at the public hearing.

Canadian Radio-television and

Telecommunications Commission

Transcript

To consider the broadcasting applications listed in Broadcasting Notice of Consultation CRTC 2010-146

BEFORE:

Rita Cugini   Chairperson

Len Katz   Commissioner

Candice Molnar   Commissioner

Louise Poirier   Commissioner

Timothy Denton   Commissioner

ALSO PRESENT:

Cindy Ventura   Secretary

Shari Fisher   Legal Counsel

Joe Aguiar   Hearing Manager

HELD AT:

Four Points by Sheraton

Toronto Airport West

6090 Dixie Road

Mississauga, Ontario

May 12, 2010

   Mississauga, Ontario

--- Upon commencing on Wednesday, May 12, 2010 at 0910

1   THE CHAIRPERSON: Bonjour mesdames et messieurs et bienvenue à cette audience publique.

2   My name is Rita Cugini and I am the Commissioner for the Ontario Region. I will be presiding over this hearing.

3   And joining me on this Panel are my colleagues: Len Katz, Vice-Chairman Telecommunications, Candice Molnar, Commissioner for Manitoba and Saskatchewan, Louise Poirier, National Commissioner and Tim Denton, National Commissioner.

4   The team assisting us includes: Hearing Manager, Joe Aguiar, who is also Manager of English Radio Operations, Shari Fisher, Legal Counsel, and Cindy Ventura, Hearing Secretary.

5   Please speak with Ms Ventura if you have any questions with regard to hearing procedures.

6   At this hearing we will be examining four cases of non-compliance with Radio Regulations, 1986 and, in some cases, with individual conditions of licence.

7   Following this hearing the CRTC may decide to issue mandatory orders requiring the licensee to comply with its decision, suspend the licensee's broadcasting licence, refuse to renew it, or revoke it outright.

8   Presenters are expected to explain the reasons for their non-compliance and, in certain cases, to show the Panel that they deserve to keep their licences.

9   First the Commission will be considering the case of CKLN-FM Toronto.

10   The Commission has received complaints regarding the programming, governance structure, day-to-day management and operations. Its ability to remain on air has also been called into question.

11   Additionally, it appears that the station may be operating in non-compliance with various sections of the Radio Regulations and in a manner inconsistent with the Campus Radio Policy.

12   We expect the station to show cause at this hearing why its broadcasting licence should not be suspended or revoked, or why mandatory orders should not be issued at this time.

13   Next, the Commission will consider the application by Aboriginal Voices Radio Inc. to renew its stations in Toronto, Vancouver, Calgary, Edmonton and Ottawa.

14   It appears that these stations may have failed to comply with the Radio Regulations and their conditions of licence regarding the minimum level of local programming.

15   We also intend to discuss various issues related to funding, local newscasts and programming orientation.

16   The Commission expects the licensee to show cause as to why mandatory orders should not be issued at this time.

17   Additionally, the licensee should show cause as to why the Commission should not consider additional measures such as short-term renewal, suspension, non-renewal or revocation of the licence.

18   After this we will examine the application by Corus Radio Company to renew the licence for CFNY-FM Toronto.

19   It appears that the licensee may have failed to comply with the Radio Regulations and its conditions of licence regarding its Canadian Talent Development contribution for the 2009 broadcast year.

20   More specifically, it appears that the licensee may have contributed to a non-eligible initiative, the Son House Productions initiative.

21   The Commission expects the licensee to show cause as to why mandatory orders should not be issued.

22   Finally, we will examine Pellpropco Inc.'s application to renew its licence for CHSC St. Catharines.

23   It appears that it may be operating in non-compliance with the Radio Regulations and its conditions of licence regarding, among other things, its annual returns and Canadian Talent Development obligations.

24   The Commission also intends to clarify certain programming and technical issues related to CHSC St. Catharines' operation.

25   The Commission expects the licensee to show cause as to why mandatory orders should not be issued at this time.

26   Additionally, the licensee should show cause as to why the Commission should not consider additional measures, such as short-term renewal, suspension, non-renewal or revocation of the licence.

27   I now invite our legal counsel, Shari Fisher, to explain for everyone's understanding what we mean by a mandatory order and its ramifications.

28   Shari.

29   MS FISHER: Thank you, Madam Chair.

30   I would just like to take a few minutes to comment on the possible issuance of mandatory orders which the Panel is considering for a number of the licensees appearing before it at this hearing.

31   Under section 12 of the Broadcasting Act:

"The Commission may inquire into, hear and determine a matter where it appears that a person has failed to do any act or thing that the person is required to do pursuant to any regulation, licence, decision or order of the Commission and issue a mandatory order to ensure compliance with any such regulation, licence, decision or order." (As read)

32   MS FISHER: As part of this hearing we have appearing before us a number of licensees who are in apparent non-compliance with the Regulations and/or their conditions of licence and for whom the Panel will be considering the possibility of issuing mandatory orders requiring compliance with those Regulations and/or conditions of licence.

33   If a mandatory order is issued, the Commission has the ability to register the order with the Federal Court, upon which it will become an order of the Federal Court.

34   If the licensee subsequently fails to comply with such an Order, the Commission would provide evidence to the Federal Court of the failure to comply and a show cause hearing for contempt of court would take place before the Federal Court of Canada.

35   The licensee would be entitled to present a defence and, if found guilty of contempt, would be subject to a fine set out by the court.

36   Several of the licensees who have been asked to appear at this hearing will be required to show cause why a mandatory order should not be issued.

37   In those instances, the licensee has the burden of convincing this Panel why the Commission should not issue a mandatory order relating to the matters of alleged non-compliance.

38   I would now like to invite the Hearing Secretary to explain the procedures we will be following.

39   Ms Ventura.

40   THE SECRETARY: Thank you. And good morning.

41   Before beginning I would like to go over a few housekeeping matters to ensure the proper conduct of the hearing.

42   When you are in the hearing room, we would ask that you please turn off your cell phones, beepers and blackberries as they are an unwelcome distraction and they cause interference in the internal communications systems used by our translators.

43   We would appreciate your cooperation in this regard throughout the hearing.

44   We expect the entire hearing to take three days. Please note that we will be starting at 8:30 a.m. tomorrow morning as well as Friday morning. We will take an hour for lunch and a break in the morning and in the afternoon. We will let you know of any schedule changes as they may occur.

45   Britannia A and B rooms will serve as the examination room where you can examine the public files of the items being considered at this hearing.

46   As indicated in the agenda, the telephone number of the examination room is 905-564-5126.

47   Please note that Commission Members may ask questions in either English or French.

48   Le service d'interprétation simultanée est disponible durant cette audience. Vous pouvez vous procurer un récepteur auprès du technicien à l'arrière de la salle. L'interprétation anglaise se trouve au canal 1 et l'interprétation française au canal 2.

49   Interpretation services will be available throughout the duration of the hearing. English interpretation is available on channel 1 and French interpretation on channel 2.

50   We would like to remind participants that during their oral presentations they should provide for a reasonable delay for the interpretation while respecting their allocated presentation time.

51   There is a verbatim transcript of this hearing being taken by the court reporter sitting at the table to my right. If you have any questions on how to obtain all or part of this transcript, please approach the court reporter during a break.

52   Please note that the full transcript will be made available on the Commission's website shortly after the conclusion of the hearing.

53   And now, Madam Chair, we will proceed with item 1 on the agenda.

54   This item pertains to CKLN Radio Incorporated, licensee of the community-based campus radio programming undertaking CKLN-FM Toronto.

55   The Commission has received complaints concerning the governance structure, day-to-day management and operations, programming and ability to remain on-air of the station which the Commission will discuss with representatives of the licensee.

56   In addition, the Commission is also concerned that the stations may be operating in non-compliance with the Radio Regulations, 1986 (the Regulations), with respect to the filing of complete annual returns and the provision of logger tapes and program logs requests for information, ownership and control, and that the manner in which CKLN-FM is currently being operated is inconsistent with the Commission's policies for campus-based community radio stations.

57   The Commission expects CKLN Radio Incorporated to show cause why the Commission should not take steps to suspend or revoke the broadcasting licence in question or why the Commission should not issue mandatory orders requiring the licensee to comply with the Regulations and its conditions of licence.

58   Madam Chair.

59   THE CHAIRPERSON: Thank you, Madam Secretary.

60   For CKLN, before we allow you to proceed with your opening remarks, I have here a seating chart. Mr. Nelson, is that you, are you the main spokesperson for this panel?

61   Okay.

62   As you know, the Commission is aware of the ongoing litigation concerning the governance of CKLN which is presently before the Ontario Superior Court of Justice and which is now in judicially assisted mediation.

63   On May 3rd, 2010, the Commission received a letter from counsel for CKLN requesting an adjournment of the hearing in respect of CKLN.

64   This request was endorsed by Mr. Justice Campbell who also set out a time line for the mediation and, in particular, Justice Campbell stated:

"Counsel for the respondent requested and I agreed that it would be appropriate for the respondent to seek adjournment, if possible, of the CRTC hearing in light of the mediation by Mr. Bullock (ph) relating to ongoing governance issues. The anticipated time table in the event that the CRTC is prepared to pause its process to permit the mediation is such that, prior to the annual meeting to be scheduled in late September or early October, the mediator will prepare a report for the parties and the court and, if appropriate, a resolution of the application may be obtained." (As read)

65   THE CHAIRPERSON: By letter dated May 5th, 2010 the Commission denied this procedural request for an adjournment.

66   But our question to you, Mr. Nelson, is that, is quite simply, has this issue been resolved since your letter of May 3rd?

67   Please turn on your microphone.

68   MR. NELSON: Sorry. I would have to say yes.

69   THE CHAIRPERSON: It has been resolved?

70   MR. LEHRER: I'm sorry, the mediation hasn't.

71   MR. NELSON: Oh, I'm sorry, I misunderstood your question.

72   No, the mediation is still ongoing.

73   THE CHAIRPERSON: Well, I think that at this point in deference to the court and because this is an ongoing mediation, we will not be able to hear you today and we will, therefore, have to adjourn this item to a later date once this has been resolved.

74   And, therefore, the hearing is adjourned for today.

75   Also, to be fair to AVR and Corus who are scheduled to be heard tomorrow, we will simply adjourn for the day.

76   It is an unfortunate circumstance but, under the circumstances with the ongoing mediation, we just feel it's not appropriate that we hear you.

77   We want to thank the interveners who have travelled to come to this location on Dixie. We know it's not easy, even for those of us who live in Toronto it's not an easy place to get to. If some of you interveners have come from out of town, we certainly do appreciate that you wanted to participate in this hearing but, like I said, we are going to adjourn for the day.

78   Thank you all very much.

79   MR. NELSON: Thank you.

--- Whereupon the hearing adjourned at 0925, to resume on Thursday, May 13, 2010 at 0830

   REPORTERS

____________________

Beverley Dillabough

Date modified:

2010-05-12