ARCHIVED -  Public Notice CRTC 1985-139

Public Notice

Ottawa, 4 July 1985

Public Notice CRTC 1985-139

A Broadcasting Policy Reflecting Canada's Linguistic and Cultural Diversity

Related Documents: "Policies Respecting Broadcasting Receiving Undertakings (Cable Television)" 16 December 1975, "A Review of Certain Cable Programming Issues" March 1979; Decisions CRTC 80-78 to 80-85 (7 February 1980), CRTC 82-156 (9 February 1982) and CRTC 84-444 to 84-446 (24 May 1984); and Public Notices CRTC 1982-36 (18 May 1982), CRTC 1983-43 (3 March 1983), CRTC 1983-93 (4 May 1983), CRTC 1984-81 (2 April 1984), CRTC 1984-117 (17 May 1984), CRTC 1984-124 (28 May 1984), CRTC 1984-132 (31 May 1984), "A Proposal for an Ethnic Broadcasting Policy for Canada" Public Notice CRTC 1984-237 (1 October 1984), CRTC 1984-305 (12 December 1984), CRTC 1984-315 (20 December 1984), and CRTC 1985-82 (25 April 1985).

BACKGROUND

Canadians today represent a diversity of cultures, religions, races and ethnic origins: other than Canada's native peoples and those from France and the British Isles, another 9 million Canadians are part of the unique cultural fabric that is Canada.

Since 1867, Canada has officially recognized its two major communities, the English-speaking and French-speaking Canadians. Within this duality, Canada's post-war immigration experience, the modern era of continuous international migration and the consequent growth of many cultural and racial groups have contributed to the development of a Canadian society that is ethnically and linguistically diverse.

The development of broadcasting services that reflect this cultural and linguistic plurality is an essential part of the Canadian social structure.

The CRTC, and its predecessor, the Board of Broadcast Governors, recognized that the Canadian broadcasting system had the potential to serve the cultural and social needs of new Canadians and to contribute to the development of Canada's multicultural character by promoting social harmony, tolerance, understanding and the exchange of knowledge, culture and beliefs.

In response to the needs of many regions and to the initiatives originated by ethnic groups within the broadcasting community, the Commission authorized various forms of broadcasting services in languages other than English, French or native Canadian. As a result, these services gradually became an integral feature of, and contributed significantly to, the Canadian broadcasting system.

In 1971, the Government of Canada declared multiculturalism within the framework of bilingualism to be its official policy. This policy encouraged cultural retention, the preservation of heritage languages, creative encounters among ethnic groups, and the opportunity for immigrants to learn French and English.

The Canadian broadcasting regulatory authority has licensed seven radio stations since 1962 to provide significant amounts of third-language broadcasting services in Canada. In 1979 the Commission licensed CFMT, a television station in Toronto and, in 1982 World View, a regional pay television network in British Columbia. In April 1984 the Commission licensed the two discretionary satellite-to-cable network services, Chinavision and Telelatino.

In addition, many English- and French-language stations have, in varying degrees, provided third-language programs in their broadcasting schedules. Local programs produced by ethnic communities are also included on many cable community channels. Several cable systems currently distribute single language closed-circuit audio services on the cable FM band, while ethnic special programming services are provided by cable companies in the Vancouver, Calgary and Montreal areas.

The growing demand to increase ethnic broadcasting services, the use of new communications technologies, the scarcity of broadcast frequencies, the limited channel capacity of some cable systems and the evolving nature of the Canadian broadcasting system raise a number of issues which need to be addressed by the Commission.

THE REVIEW PROCESS

On 1 October 1984, the Commission issued for public discussion, "A Proposal for an Ethnic Broadcasting Policy for Canada" (Public Notice CRTC 1984-237). Comments in response to this notice were to be received no later than 30 November 1984 and a public hearing on the matter was tentatively scheduled in the National Capital Region for 15 January 1985.

As a result of numerous requests, the Commission decided to extend the deadline for the receipt of written submissions until February 1985. Further, in response to strong public interest and to facilitate the representation of cultural groups from different regions across Canada, the Commission scheduled three consecutive public hearings which began 12 March 1985 in Vancouver, 19 March 1985 in the National Capital Region and 26 March 1985 in Toronto.

Without wishing to limit the scope of public comment, the Commission invited written interventions on the following topics (as set out in Public Notice CRTC 1984-237):

° the proposed definition of an ethnic program; ° the proposed definition of ethnic radio and television stations;

° the proposed changes to the current regulations;

° the brokerage of ethnic programs;

° the role of cable television;

° the role of ancillary services.

Recognizing the lack of readily available material and information concerning ethnic groups in Canada, the CRTC announced in Public Notice CRTC 1984-315 that it had commissioned a special tabulation of 1981 census data by Statistics Canada. These statistical tables of Ethnicity, Mother Tongue and Home Language, arranged by Census Division/Census Subdivision were housed in the Library of the Commission and made available for public examination.

In response to its call for comments, the Commission received submissions from 107 parties, of whom 57 requested the opportunity to appear at the hearings to elaborate on their views. Approximately 3.2 million Canadians of various ethnic origins were represented by a broad spectrum of national and provincial organizations, such as the Canadian Ethnocultural Council and the Manitoba Intercultural Council, independent producers and by individuals who appeared at the Vancouver, Hull and Toronto hearings. The Commission also heard from Canadian over-the-air broadcasters, ethnic closed-circuit operators, educational television services, ethnic specialty and cable television licensees, representatives from the Canadian Association of Ethnic (Radio) Broadcasters (CAEB), the Canadian Association of Broadcasters (CAB), the Canadian Cable Television Association (CCTA), the Ontario Cable Television Association (OCTA), members of media, business and international organizations, the Ontario Ministry of Transportation and Communications, Members of Parliament, and from the Honourable Jack Murta, Canada's Minister of State for Multiculturalism.

The Commission acknowledges the contribution made by all parties to these proceedings. The sharing of their views and experiences and the various surveys and other information made available during the hearings have all been of great assistance in the Commission's understanding and appreciation of the role of ethnic broadcasting.

The hearings also provided the opportunity for all interveners to assess the development of third language programming in Canada, to review the experiences encountered by Canadian broadcasters in providing services to cultural groups, and to examine the many related concerns with respect to Canada's multicultural diversity.

In light of the important and far-reaching implications of the policy under consideration, the Commission was greatly encouraged by the positive tone of the proceedings, the effort and preparation evident in many of the submissions and the broad range and depth of the discussions that took place.

The Commission is confident that the policy guidelines set out herein will encourage the growth and development of ethnic programming in Canada, help ensure that culturally and racially distinct groups receive broadcasting services and that this policy will enhance the variety and broaden the scope of the Canadian broadcasting system for all Canadians.

CONCERNS WITH RESPECT TO STEREOTYPING, BALANCE AND FAIR REPRESENTATION

While welcoming the Commission's policy initiative, ethnic groups sought reassurance that the proposed broadcasting policy was, and would remain, an integral feature of the Canadian broadcasting system. Representatives of national cultural organizations emphasized that ethnic programming should:

° serve as a bridge to enable groups to overcome cultural barriers;

° increase access by ethnic groups to conventional radio and television and to cable services;

° foster cultural appreciation and promote encounters among all Canadian cultural groups; and

° assist immigrants to acquire at least one of Canada's official languages.

Throughout the hearings members of various ethnic communities stated that the prevention of stereotyping and the inaccurate depiction of culturally and racially distinct groups and their traditions by conventional media should be of major concern to the Commission. Representatives of cultural and visible minority groups and organizations across Canada felt that many broadcasting undertakings do not accurately portray ethnic groups. Such portrayal ranges from classic stereotyping to instances where biased treatment of ethnic and racial minorities is involved.

During the Toronto hearing, the Minister of State for Multiculturalism addressed the subject of accurate depiction. He urged the broadcast industry to consider the depiction guidelines for the portrayal of cultural and racial minorities currently in use by government departments.

The Commission acknowledges the many concerns voiced regarding balance, fair portrayal and stereotyping. While the Commission affirms its conviction that broadcast programming should not only respect but reflect the equality and dignity of all Canadians, it wishes to point out that it has neither the resources nor the legislative mandate to closely and consistently monitor all on-air programming. Moreover, it notes that Section 3(c) of the Broadcasting Act states that:

 all persons licensed to carry on broadcasting undertakings have a responsibility for the programs they broadcast ... subject only to generally applicable statutes and regulations ....

In this regard, licensees are prohibited, by regulation, from transmitting any abusive comment or pictorial representation which,

 when taken in context, tends or is likely to expose an individual or group or class of individuals to hatred or contempt on the basis of race, national or ethnic origin, colour, religion, sex, age or mental or physical disability. [Regulation 5(1)(b) (A.M. Broadcasting), Regulation 6(1)(b) (F.M. Broadcasting), Regulation 6(1)(b) (Television Broadcasting) and Regulation 6 (Pay Television Broadcasting).]

To a large degree, the Commission depends on members of the public to bring to its attention programming which may be in breach of the Broadcasting Act or Regulations. Members of the public can do so by calling or writing the Commission or by intervening at public hearngs. There are several avenues available to the Commission to deal with such offensive program content:

a) The Commission may take up with a licensee a complaint initiated by a member of the public concerning the programming broadcast by that licensee. In accordance with Public Notice CRTC 1982-36, such complaints and the ensuing correspondence are placed on the licensee's file to ensure that these issues are considered at the time of licence renewal.

b) The Commission or a member of the public may prosecute for a breach of the Commission's regulations or the Broadcasting Act.

c) The Commission may call a licensee and complainant to a hearing to deal with a serious complaint.

d) At licence renewal time, the Commission may attach appropriate conditions to a broadcaster's licence to ensure that mechanisms are in place to avoid any recurrence of justified complaints.

Concerns about offensive programming may also be resolved by virtue of steps taken by the broadcasting industry to regulate its own conduct.

At the ethnic broadcasting policyhearing in Hull, Quebec, the Canadian Association of Broadcasters stated that their "Ethics and Social Concerns Committee" intended to prepare a set of guidelines for all members of the CAB with regard to program content directed towards ethnic communities.

LICENSING APPROACH

The Commission has considered all of the representations made to it, and sets out below, the criteria which will guide it in considering applications where ethnic programming is a factor. Regulations will be proposed to implement the broadcasting policy contained herein.

A basic tenet of the CRTC's approach has been that the scarcity of broadcast frequencies will not permit the licensing of a single language service to each ethnic group in a given market. As a result, the Commission has not licenced over-the-air single language transmitting undertakings in languages other than English, French or native Canadian, and has required each licensee to provide a broadly-based service to the ethnic groups within the coverage area of the undertaking.

Since all licensees should reflect the diverse broadcasting needs of their communities, the Commission intends to continue with this approach and wishes to be reassured that the needs of smaller ethnic communities and those of visible minority groups are also met.

In evaluating broadcast proposals to provide ethnic programming, the Commission will carefully examine the demographics of the community to be served (by ethnic origin, mother tongue and language of the home). It will also take into account the degree of support and involvement shown by local community organizations. Conditions of licence setting out the minimum number of linguistic and cultural groups to be served will be established on this basis.

The Commission will continue to be concerned with the financial resources of the applicants and the viability of the proposed services. Applicants will, therefore, be required to provide evidence of continued financial commitment.

I. Ethnic Programs

In examining a licence application, the Commission will look at the applicant's programming proposals to ensure that they meet the needs of the community. Five types of programs will qualify:

TYPE A: A program in a language or languages other than French, English or native Canadian.

TYPE B: A program in French or in English that is directed specifically to racially or culturally distinct groups whose first or common bond language (in the country of their origin) is French or English (such as Africans from Algeria, Mauritania and Morocco; Caribbean Blacks; groups from India).

TYPE C: A program in French or in English that is directed specifically to any culturally or racially distinct group whose heritage language is already included in TYPE A (such as those groups who have not retained the use of a third-language).

TYPE D: A program using a bilingual mix (French or English plus a third-language from TYPE A) that is directed specifically to any culturally or racially distinct group (such as French and Arabic, English and Italian, English and Punjabi).

TYPE E: A program in French or in English that is directed to any ethnic group or to a mainstream audience and that depicts Canada's cultural diversity through services that are multicultural, educational, informational, cross-cultural or intercultural in nature.

 (This will allow for programming in English or French that will facilitate the integration of ethnic groups into the mainstream and will reflect culturally or racially distinct groups to the population at large).

The Commission will exclude the musical, advertising, public service and promotional content when determining whether a particular television program qualifies as TYPE A, B, C, D or E.

For television, where different languages may be used in the audio and video portions of the signal, as with subtitling, the Commission will consider the audio portion to determine the language.

The Commission will exclude music, advertising, station contests and community and emergency messages when determining whether a particular radio program qualifies as TYPE D or E.

The exclusions listed above will, however, continue to be counted when calculating the duration of the program.

During the hearings, the CAEB and the CAB, suggested that the Commission should:

° include instrumental selections in the definition of an ethnic radio

° consider the lyrics of a musical arrangement as spoken word

Because of their potential impact on existing regulations, the Commission has decided to refer these recommendations to a CRTC Consultative Committee for further study.

II. Ethnic Television and Radio Stations

The Commission will consider an "ethnic station" to be:

 a television or radio station that is required to devote not less than 60% of its weekly programming time between 0600 and 2400 hours to ethnic programs of TYPES A, B, C, D or any combination thereof. The Commission will establish by condition of licence the percentage of the 60% that must be devoted to programs of TYPES A and B.

The remaining 40% of the broadcast week between 0600 and 2400 hours may be devoted to ethnic programs of TYPES A, B, C, D, E or any combination thereof, or to any other type of conventional programming.

The Commission will soon propose amendments to Section 18 and Section 4(1) of the Radio (A.M.) Regulations; Section 26 and Section 5(1) of the Radio (F.M.) Regulations; and Section 5(1) of the Television Broadcasting Regulations, in order to implement this policy.

Licensees are reminded, however, that the requirements set out in the existing television and radio regulations regarding Canadian content and advertising continue to apply.

III. Conventional Television and Radio Stations

Currently several conventional television broadcasters, such as CFCF Montreal, CIII-TV (Global) Toronto and CHFD Thunder Bay, broadcast some TYPE A ethnic programs. In addition, 52 conventional AM and FM radio stations broadcast a total of approximately 260 hours of TYPE A ethnic programs on a weekly basis.

Various national organizations such as the Universal African Improvement Association and the National Congress of Italian Canadians, representatives of the Ministry of Transportation and Communications of the Government of Ontario, and the Minister of State for Multiculturalism of the Government of Canada addressed the responsibility of broadcasters to reflect more accurately the reality of cultural diversity in Canada. Many interveners claimed that the response by the majority of radio and television stations to public demand for multicultural programming has generally been inadequate.

The Commission acknowledges these concerns and expects all broadcasters to increase their efforts to provide adequate levels of multicultural programming within their schedules.

To encourage this effort, the Commission does not intend to place any restrictions on the amount of TYPE E ethnic programming that any conventional television or radio station may broadcast. In addition, the Commission intends to take the following regulatory measures to permit conventional broadcasters to provide ethnic programming without application to the Commission, while ensuring a measure of protection for ethnic broadcasting licensees.

1. Where an ethnic television station has been licensed to serve a given area, any conventional television station whose signals reach that area may devote up to l0% of its weekly programming time between 0600 and 2400 hours to ethnic programs of TYPES A, B, C, D or any combination thereof without application to the Commission.

2. Where an ethnic radio station has been licensed to serve a given area, any conventional radio station whose signals reach that area may devote up to 15% of its weekly programming time between 0600 and 2400 hours to ethnic programs of TYPES A, B, C, D or any combination thereof without application to the Commission.

3. Where no ethnic television or radio station has been licensed to serve a given area, any conventional television or radio station whose signals reach that area, may devote up to 15% of its weekly programming time between 0600 and 2400 hours to ethnic programs of TYPES A, B, C, D or any combination thereof without application to the Commission.

4. Any conventional television or radio station may apply to the Commission to be authorized to devote up to 40% of its weekly programming time between 0600 and 2400 hours to ethnic programs of TYPES A, B, C, D or any combination thereof. The Commission will establish by condition of licence the percentage of the 40% that must be devoted to programs of TYPES A and B.

As noted earlier, the Commission will soon propose amendments to Section 18 and Section 4(1) of the Radio (A.M.) Regulations; Section 26 and Section 5(1) of the Radio (F.M.) Regulations; and Section 5(1) of the Television Broadcasting Regulations, in order to implement this policy.

Licensees are reminded, however, that the requirements set out in the existing television and radio regulations regarding Canadian content and advertising continue to apply.

IV Canadian Content Requirements for Radio and Televisionu Stations

The matter of Canadian content requirements on ethnic stations emerged as a central issue at the hearings.

While many submissions acknowledged that Section 3(d) of the Broadcasting Act calls on all broadcasters to provide programming that is "... of high standard using predominantly Canadian creative and other resources", all of them claimed that the requirements that television stations devote 60% of their broadcast day to Canadian programs and that radio stations de vote 30% of all musical material to Canadian selections were untenable for stations who broadcast significant amounts of ethnic programming.

The recommendations to lower the Canadian content requirements for ethnic programs were based on the following constraints:

° the high cost of productions specifically directed to ethnic audiences;

° the lack of access to production installations facilities;

° insufficient Canadian creative and other resources; and

° the scarcity of quality ethnic programming.

While the Commission recognizes that it may be difficult for television stations broadcasting significant amounts of ethnic programming to meet the current regulations for Canadian content levels, the present regulations do not, at this time, allow for an exception to the general requirement.

In Public Notice CRTC 1985-82, the Commission proposed an amendment to Section 8 of the Television Broadcasting Regulations which would permit it to vary the Canadian content requirements by condition of licence. The issue of varying the Canadian content requirements for ethnic programs of TYPES A, B, C, D or E will, therefore, be considered when the Commission studies the comments received on the amendment to the existing Canadian content regulation.

With respect to radio, the CAEB and the CAB identified various difficulties encountered by radio broadcasters in their attempts to meet the Canadian content musical requirements for the ethnic programs that they broadcast.

As the Commission does not, at this time, have sufficient information to determine an appropriate level of Canadian content for radio stations that broadcast a significant amount of ethnic programs, it refers this issue to a CRTC Consultative Committee for examination.

V.Cable Television

1) Cable Carriage of Ethnic Television and Radio Stations

In its introductory statement dated 7 February 1980 to Decisions CRTC 80-78 to 80-85, regarding the carriage of an ethnic television station in the Metropolitan Toronto area (CFMT-TV Toronto), the Commission stated that it:

 ...acknowledges the distribution of CFMT-TV on an unrestricted channel on the basic service of all cable television undertakings serving Toronto in accordance with the Cable Television Regulations and authorizes those undertakings serving communities outside the boundaries of the Metropolitan Toronto area to distribute CFMT-TV on the augmented channel service.

During these hearings, the Commission invited comment on whether, and under what conditions, cable television licensees, such as those who currently distribute CFMT-TV on augmented channels, should be required to give it priority carriage on an unrestricted channel on the basic tier.

Interveners pointed out that where CFMT-TV is a local or regional broadcaster in accordance with Section 6 of the Cable Regulations, it should be granted priority carriage on all cable systems located within CFMT-TV's Grade A and B coverage contours.

The Commission considers that CFMT-TV should be given the same priority status under the Cable Television Regulations as all other Canadian television stations. Accordingly, cable licensees located within the Grade A and B contours of CFMT-TV, are expected to take immediate steps to apply for the carriage of CFMT-TV on a priority basis as required by Section 6 of the Cable Television Regulations. Any such applications will be dealt with expeditiously. The licensees concerned are expected to advise the Commission on the measures taken in this regard within three months of this decision.

Current policies and regulations regarding the cable carriage of Canadian radio services apply equally to Canadian ethnic radio stations. The Commission has issued a policy statement regarding the carriage of audio services and proposed new cable television regulations which encompass proposed changes in the priority carriage of audio services (Public Notice CRTC 1984-124 dated 28 May 1984).

This issue is subject to the public process currently underway and will be addressed within the context of the revised Cable Regulations to be further issued for public comment in the near future.

2) The Community Channel

Just as an over-the-air broadcasting licence carries with it direct social commitments, so the community channel is a primary social commitment of the cable television licensee. How well this commitment is carried out is an important factor in the Commission's determination of the suitability of cable operators to retain a licence.

It was made clear at the public hearings that the community channel has become an accepted and important service for the ethnic groups, and that it is an integral part of the local programming service offered by cable television licensees.

In its Cable Television Regulations (Section 6), the Commission requires all licensees of cable television systems to reserve a community channel on their basic service on a priority basis.

In its "Policies Respecting Broadcasting Receiving Undertakings (Cable Television)" 16 December 1975, the Commission stated that licensees are expected to seek out communities of common interest within their service areas and to encourage them to give expression to their interests and concerns.

Consistent with the Commission's past policy, no advertising material, including contra advertising, is allowed on the community channel.

These regulations and policies will continue to provide a framework for the community channel. They constitute the basic minimum standards to which all licensees must adhere. Additionally, the Commission hereby encourages cable operators to make a more effective use of the community channel with respect to scheduling ethnic programs of TYPES A, B, C, D and E, in order to better respond to the various needs and interests of the communities they are licensed to serve.

The Commission received many interventions voicing concerns about the difficulty in obtaining access to community programming time, and the need for licensees to allocate equitable time based on the expressed needs and demography of the community.

A CRTC Consultative Committee will further examine the nature and extent of these concerns.

In view of the strong public demand for access to the community channel, the Commission also encourages cable operators to examine the viability of establishing a Special Programming Service in order to accommodate additional ethnic programming.

3) Special Programming Services

The Commission's policy for special programming services was initially set out in its Announcement of 16 December 1975 and reviewed in March 1979. This policy "encouraged cable television licensees to give priority to the redistribution of special Canadian programming of particular relevance to the local community served by the cable operator. It was intended that such special channels would reflect the political, social and cultural interests of the communities served."

To date only a few cable television systems have requested and were authorized to provide special programming channels devoted exclusively to ethnic communities. These cable companies distribute a wide variety of ethnic programs of special interest in these markets, thus meeting a programming demand that could not otherwise have been accommodated on the community channels of these cable systems.

The Commission will continue to consider on a case-by-case basis, proposals for the production and exhibition by cable operators of special programming services not undertaken by conventional broadcasters because of commercial, scheduling or other constraints.

The Commission wishes to reiterate its policy that special programming channels should contribute significantly to the enrichment of the Canadian broadcasting system by extending and complementing local Canadian programming.

4) Advertising on Community and Special Programming Services

Cable television systems are precluded from distributing advertising material on cable-originated audio and video channels.

When authorizing the distribution of special programming services, the Commission generally prohibits, as a condition of licence, the distribution of advertising material, other than the advertising contained in a Canadian broadcast replay. In the case of sponsored documentary or cultural programs, a licensee may present the name of the sponsoring organization at the beginning and end of the program.

While the Commission believes that cable television systems should not compete with conventional commercial broadcasters for advertising revenues, the Commission has allowed a modification to its policy in exceptional circumstances, as was the case with Vancouver Cablevision Limited (Decision CRTC 82-156).

During the recent public hearings, cable companies, independent producers and various ethnic groups noted that special programming channels are complementary to conventional broadcasting services and should be permitted to sell commercial time.

Some parties argued that advertising could generate funds for the production of quality ethnic programming and that local advertiser support would provide merchants with an opportunity to promote goods and services of particular interest to ethnic communities at a reasonable cost.

The Commission is of the view that such issues should more appropriately be considered in the context of the forthcoming public hearing which will deal with several cable policy issues, including advertising on cable. This hearing is scheduled for the fall of 1985.

5) Closed-Circuit Cable Audio (Cable FM)

In its 1979 cable policy review, the Commission indicated that, in order to exercise and maintain a certain level of regulatory control over closed-circuit audio operations which are not licensed by the Commission, it would consider applications for the cable carriage of closed-circuit audio services on the FM service provided they met certain criteria set out in that notice.

Ethnic closed-circuit cable audio services, normally provided to cable television licensees on a contractual basis by persons other than employees of the licensees, have now been in operation for more than a decade in Toronto and Montreal. The Commission recognizes that, owing to spectrum limitations, many of the needs of the larger ethnic groups cannot be adequately met by existing conventional radio broadcasters. Although existing ethnic radio stations in Toronto and Montreal provide some of these programming services, their audiences are diverse and these stations do not provide complete service to any one language group. The present closedcircuit cable audio operations provide single-language services that include news, sports information, public affairs and children's programming throughout the day on a weekly basis. Such stations rely on advertising for the revenues necessary to sustain their operations.

In its Public Notice CRTC 1984-237, "A Proposal for an Ethnic Broadcasting Policy", the Commission proposed to limit audio services in languages other than English, French or native Canadian to sponsorship advertising in areas where either a conventional radio station has been authorized to broadcast ethnic programs or where an ethnic radio station has been licensed.

During the hearings, members of Parliament, closed-circuit operators and representatives of ethnic groups appeared before the Commission to argue that services provided by closed-circuit audio systems were essential to the communities in question, that revenues derived from advertising were their only means of survival, and that the distribution of such services by cable television licensees should be allowed to continue.

The operators of ethnic closed-circuit audio services also expressed concern over proposed changes to the carriage priorities for audio services as set out in Public Notice CRTC 1984-305. The concern was that the cable operator would be required to carry a large number of priority signals, leaving little room for carriage of optional services such as theirs.

The Commission was impressed with the overall commitment of the closed-circuit operators and by the useful information provided at the hearings. It has, therefore, decided to continue to permit cable licensees to distribute the presently authorized ethnic closed-circuit audio services that offer advertising in languages other than English, French or native Canadian.

As long as no ethnic radio station has been licensed to serve an area, new ethnic closed-circuit audio services offering advertising in languages other than English, French or native Canadian, will also be authorized for distribution in that area.

However, where an ethnic radio station has already been licensed to serve an area, a cable licensees serving that same area will only be permitted to distribute new ethnic closed-circuit audio services that carry sponsorship advertising. This type of advertising is limited to:

 simple statements of sponsorship which identify the sponsors of a program or of the station. Such statements may incorporate the name of the sponsor, the business address, hours of business, and a brief description of the types of services or products which the sponsor provides, including the price, name and brand name of the product. Such statements must not contain language which attempts to persuade consumers to purchase and thus must not contain references to convenience, durability or desirability or contain other comparative or competitive references. (Public Notice CRTC 1983-43)

The question of the carriage of audio signals by cable licensees is currently under study by the Commission in the context of its proposed changes to the Cable Television Regulations. In formulating the next draft of the proposed regulations, the Commission will take into account the concerns raised at the ethnic policy hearings as well as those voiced during the public hearing held to consider the proposed changes to the Cable Television Regulations. VI.

Ancillary Services

In Public Notice CRTC 1984-117, the Commission acknowledged the development of the Vertical Blanking Interval (VBI) and Subsidiary Communications Multiplex Operations (SCMO) and the evolving use of such technologies by broadcasters for the provision of additional special interest services.

The VBI is an integral part of every television signal but does not contain any part of the video picture. With the development of improved technology, part of the VBI can now be used for the distribution of a variety of special services. SCMO is a technique that enables part of the signal transmitted by FM radio stations to be used for a variety of services.

In each case, the regular programming and the additional services share a common transmitter. Subject to certain restraints, the additional services are received via special equipment.

The Commission considers that both VBI and SCMO present options for the future development of ethnic broadcasting in that they have the capacity to be used for the distribution of many types of special services aimed at specific audiences. For instance, the VBI could be used to provide subtitles in a different language, while the SCMO of FM stations could be used to provide full-scale ethnic broadcasting services.

In its Notice CRTC 1984-117 the Commission announced that it was taking a very light regulatory approach to VBI and SCMO until the end of 1986 to "encourage broadcasters to experiment". In keeping with this approach, single-language services may be authorized for distribution on these facilities.

During the ethnic policy hearings certain interveners expressed reservations with respect to these services. They argued that relegating ethnic programming to SCMO delivery would be interpreted as "ghettoizing" and that certain FM stations in major markets were unwilling to lease their SCMO capacity to provide full ethnic radio services.

The Commission reiterates its view that SCMO and VBI can be used as an alternative means of providing single-language programming services and expects both ethnic and conventional broadcasters to examine the potential of SCMO and VBI with regard to possible ethnic services.

VII. Ethnic Specialty Network Services

In Public Notice CRTC 1983-93, the Commission stated that Canadian specialty programming services should be offered "on a discretionary basis at the option of the subscriber" and should, by definition, "consist of narrowcast television programming that would be complementary to existing services".

The Commission noted that in considering applications for such programming services it would be guided by certain general principles and objectives similar to those established for the introduction of general interest pay television services.

When the Commission licensed Telelatino Network Inc. (Telelatino) and Chinavision Canada Corporation (Chinavision) (Decisions CRTC 84-444 to 84-446), the Commission considered that such ethnic specialty programming services would assist in fostering the cultural values and traditions of Chinese, Italian and Spanish-speaking people who live in communities across Canada, and would assist these groups to participate in, and contribute to, Canadian society.

Taking into account the economic and spectrum considerations and the public demand that quality ethnic broadcasting services be developed and made available across Canada, the Commission notes with concern that representations made at the hearings indicated an unreasonable reluctance on the part of some cable licensees to carry Telelatino and Chinavision in markets where a high concentration of ethnic communities well justify the provision of such broadcasting services.

The Commission intends to examine how the cable industry has met its important obligations to the successful development of Canadian discretionary and pay television services and, as noted in the Public Notice on Specialty Programming Services (CRTC 1984-81), expects cable television licensees to ensure that all Canadian discretionary services, including those of Telelatino and Chinavision, are marketed effectively, priced fairly, packaged attractively and carried without discrimination. The Commission further intends to conduct a general review of specialty services "after the initial two years of operation."

BROKERAGE

Many independent ethnic program producers purchase blocks of time from radio and television stations. They determine the program content and commercial messages and derive revenues from the advertising contained therein. In accordance with section 3 of the Broadcasting Act, each licensee is fully responsible for any programming provided on its broadcasting undertaking, whatever its source.

While the Commission recognizes that the practice of brokerage may reduce a licensee's control over program content, it acknowledges that brokerage has provided ethnic producers with access to the airwaves, and conventional radio and television broadcasters with viable ethnic programming. It has also stimulated the development of the Canadian production of popular ethnic programs which otherwise might not have been produced.

At the hearings, the Commission invited comment on how best to ensure that licensees who broadcast brokered programs fulfill their responsibility under the Broadcasting Act and regulations.

In response, broadcast representatives engaged in various aspects of program production or brokerage submitted that:

° the Commission should encourage brokers to produce programs of high quality; and

° licensees should be required to enter into contractual agreements with their independent producers and brokers that would clearly define responsibilities and include third-language monitoring provisions.

The Commission has considered the views expressed on this issue and acknowledges that the practice of brokering ethnic programs has gradually evolved within the broadcasting system, such that it now plays an important role in the provision of ethnic programming and is considered a standard feature of independent production.

In the Commission's view, a self-regulatory mechanism should be established with clearly defined criteria for the production of quality brokered or independently-produced programs. Such guidelines should also benefit the licensees who are ultimately responsible for the programs they broadcast. Accordingly, the Commission requests that the CAEB and CAB consult with all interested parties, with a view to developing an Industry Code for Brokerage, and expects to receive a report on this issue by December 1985.

CRTC CONSULTATIVE COMMITTEE AND A NATIONAL ADVISORY COMMITTEE

There was considerable discussion at the public hearings on the scarcity of ethnic musical recordings in Canada and the most effective means of stimulating and promoting Canadian ethnic production and talent. The Commission will establish a CRTC Consultative Committee to examine these matters. This Committee will also consider the issue of access to the community channel. A public notice will be issued shortly with regard to the composition and mandate of the Consultative Committee.

Many of the submissions heard by the Commission recommended that an ongoing National Advisory Committee composed of representatives of ethnocultural groups and the broadcasting industry be established to:

° provide ethnic groups with information and available options in broadcast and cable technology to enable them to apply for access to services;

° serve as a forum for ethnic groups and their concerns regarding quality, balance, depiction and content of ethnic programs;

° improve dialogue and provide an on-going consultative mechanism between ethnic groups and broadcasters; and

° participate in identifying a central production centre to pool resources and distribute ethnic programs.

At the Toronto hearing, the Honourable Jack Murta, Minister of State for Multiculturalism endorsed the direction of the Commission in developing guidelines for ethnic broadcasting services in Canada, and stated:

 I offer my assistance and that of my Ministry:

 to promote dialogue between all communities, the industry and the CRTC;

 to assist the CRTC in informing the cultural minority communities about the Commission and its procedures;

 to exchange and share studies and information to better determine the concerns and programming needs of these communities;

 to identify and facilitate the exchange and sharing of quality multicultural programs amongst all broadcasters; and

 to assist broadcasters and producers in directing them to the available resources and talents of the cultural minority communities.

The Commission endorses the statement made by the Minister at the hearing. It will, of course, be willing to assist in this area within the limits of its mandate and capacity.

LICENSING ACTION

On 31 May 1984 (Public Notice CRTC 1984-132), the Commission announced the lifting of the freeze on FM applications to serve Vancouver/Victoria, the Montreal area, and the Southern Ontario region. Subsequently, the Commission issued calls for applications for FM stations to serve certain of these areas, noting that public hearings would be scheduled in the late fall of 1985.

In view of the scarcity of public frequencies and to allow applicants to take into account the revised criteria for ethnic programming contained in this notice, the Commission has today issued in a separate Public Notice a call for FM applications to provide ethnic programming services in Vancouver, Victoria, Chatham, Gravenhurst and Parry Sound, Hamilton, London, Niagara Falls, Toronto and Brockville. Applicants wishing to respond to this call are required to file a statement of intent with the Commission by 5 August 1985. The deadline for filing applications is 30 August 1985. The Commission intends to schedule any such application, which it is satisfied is complete in accordance with the Broadcasting Rules of Procedure, at the same time as it hears the other above-noted FM applications for these areas.

FM applicants who have already filed applications for these locations who wish to take into account the revised criteria for ethnic programming contained in today's notice also have until 30 August 1985 to modify their applications.

The Commission also draws the attention of existing ethnic broadcasters, and all AM, FM and television licensees who may wish to devote a significant portion of their weekly programming time to ethnic programs, that any such revisions to their Promises of Performance or conditions of licence, may well require the filing of an application for an amendment to their licence. Those applicants currently serving the Vancouver/Victoria and Southern Ontario regions who wish to have their applications considered during the fall hearings noted above, should file their applications with the Secretary General, CRTC, Ottawa, K1A 0N2 no later than 30 August 1985.

In response to inquiries made during the hearing, listed as an Appendix to this notice, are the expiry dates of the current licences for Canadian ethnic radio and television stations.

Fernand Bélisle Secretary General

APPENDIX

EXPIRY DATES OF LICENCES OF CANADIAN ETHNIC UNDERTAKINGS

CFMB Montreal (Chateau Broadcasting Co. Ltd.) 31 March/mars 1986

CHIN-AM Toronto (Radio 1540 Limited) 31 March/mars 1986

CHIN-FM Toronto (Radio 1540 Limited) 31 March/mars 1986

CINQ-FM (Radio Centre-ville Saint-Louis) 31 March/mars 1986

CKMW Radio Ltd. 31 March/mars 1986

CFMT-TV Toronto (Multilingual Television 30 September/1986 Limited) septembre

World View Television Ltd. 1 March/mars 1987

CKER Edmonton 30 September/1987 septembre

CJVB Vancouver (Great Pacific Broadcasting 30 September/1988 Limited) septembre

Telelatino Network Inc. 31 March/mars 1989

Chinavision Canada Corporation 31 March/mars 1989

CKJS Winnipeg (Casimir G. Stanzcykowski Rep.) 30 September/1989 septembre