ARCHIVED -  Decision CRTC 85-12

Decision

Ottawa, 8 January 1985

Decision CRTC 85-12

Télévision de la Baie des Chaleurs Inc.

New Richmond, Quebec and Bathurst, New Brunswick - 833542400 - 833543200

Diffusion Communautaire Baie des Chaleurs Inc. Carleton, Quebec - 841384100

Radio Nord-Est Ltée Beresford, New Brunswick - 841337900

Radio Acadie LtéeCaraquet, New Brunswick - 840534200

In Public Notice CRTC 1984-76 dated 23 March 1984, the Commission called for applications for licences to operate French-language FM radio broadcasting undertakings to serve New Richmond, Quebec and Bathurst, New Brunswick. The call was issued subsequent to the receipt of applications to operate FM radio stations in these locations.

At a Public Hearing in Rimouski, Quebec on 5 November 1984, the Commission considered five applications submitted by the above-noted applicants in response to this call. Most of the applications came from licensees who already operate broadcasting undertakings in the area.

On the Quebec side, Télévision de la Baie des Chaleurs Inc. has submitted applications to operate an FM radio station in New Richmond and one in Bathurst, New Brunswick, which station would primarily rebroadcast programs from New Richmond. This applicant operates CHAU-TV in Carleton and rebroadcasting transmitters which provide service to the Baie des Chaleurs and Gaspé areas. Diffusion Communautaire de la Baie des Chaleurs Inc. which already operates a community FM station in Carleton (CIEU-FM) has also submitted an application proposing to change the status of CIEU-FM to a commercial station while maintaining its ownership structure and its community orientation.

In New Brunswick, Radio Nord-Est Ltée proposes to operate an FM radio station in Beresford, and Radio Acadie Ltée, an FM station in Caraquet. Radio Acadie Ltée already operates an AM radio station, CJVA Caraquet.

The purpose of these applications is to provide regional FM radio services. Although the applicants do not propose to establish their studios and antennae in the same location, the proposals were considered competitive. The area to be served is divided into two distinct and separate sectors; with the vast majority of inhabitants being Frenchspeaking: the county of Bonaventure on the southern Gaspé peninsula in Quebec, and the counties of Restigouche and Gloucester in northeastern New Brunswick, the home of a large French-speaking community of Acadian origin.

In addition to CIEU-FM, the Quebec region is also currently served by CHNC New Carlisle. The Acadian sector in New Brunswick is served by CJVA Caraquet, the only private French-language station in the area, and two English-language stations; CKNB Campbellton and CKBC Bathurst. CJVA Caraquet serves less than half of the Acadian population in northeastern New Brunswick.

These two regions are also served by the English and French-language AM radio services of the CBC.

At the hearing, the Commission heard many interventions from community groups, municipalities and individuals in that region. Several interveners emphasized these Acadian communities' interest in, and need for, a regional FM radio service. Others, mainly existing local radio stations, opposed the addition of another radio service in a market which, in their view, could not economically support such a service. In this regard, one of the applicants, Radio Acadie Inc., as well as the interveners, Bathurst Broadcasting Company Limited, Restigouche Broadcasting Company Limited, Radio CHNC Ltée and the Conseil populaire des Communications de l'Est du Québec Inc., stated that the potential market is very limited and that any new station could obtain substantial revenue only at the expense of existing stations.

In its March 1984 call for applications, the Commission stated that it expected "any applicant to show in its application that the area could support another broadcasting undertaking." On the basis of the evidence submitted by the applicants, the interventions received and all available data on the subject, the Commission has concluded that, indeed, available advertising revenues in the areas are very limited and that it has not been clearly established that the market can support another station. While recognizing the positive contribution which a new regional FM station could make, the quality of some of the applications, and the interest shown by the population in such a service, the Commission considers, nevertheless, that the areas cannot at the present time support a new FM station.

With respect to the application submitted by Diffusion Communautaire Baie des Chaleurs Inc., the Commission has noted the many interventions in support of the application that emphasize this station's need to have access to commercial advertising to provide the financial means for its survival. The Commission has also taken into account the applicant's statement about its difficult financial situation and has noted, among other factors, the large territory which the community station must serve, the unfavourable economic climate in the area and its limited advertising budget. The Commission notes, however, that the station began operations only a little more than a year ago and is still in the process of becoming established.

Moreover, as indicated in Public Notice CRTC 1984-201 dated 31 July 1984, the Commission intends to review, at a public hearing to be held next spring, the state of community radio in general as well as the difficult financial situation in which a number of community stations find themselves. The use of advertising by community radio stations will also be dealt with at that hearing.

In view of the above, the majority of the members of the Commission denies the applications submitted by Télévision de la Baie des Chaleurs Inc., Diffusion Communautaire Baie des Chaleurs Inc., Radio Nord-Est Ltée and Radio Acadie Ltée.

Although the Commission considers it premature at this time to authorize new FM stations in the Baie de Chaleurs area given the limited resources of the area and the delicate balance of the market, it acknowledges the urgent need of the Acadian community in northeastern New Brunswick for a regional French-language FM station to provide this region with more adequate services. This requirement was clearly outlined at the hearing by the interveners. In this regard, the Commission encourages the licensees and interested parties to consult with each other and to rationalize their efforts with a view to finding other suitable alternatives for the provision of such service.

Fernand Bélisle Secretary General