ARCHIVED -  Decision CRTC 88-181

Decision

Ottawa, 30 March 1988

Decision CRTC 88-181

MAINTAINING A DISTINCTIVE, HIGH QUALITY CBC RADIO SERVICE

Applications for the Renewal of the French and English AM and FM Radio Network Licences - 871461000 - 871463600 - 871460200 - 871462800

TABLE OF CONTENTS

1. THE CHANGING BROADCASTING ENVIRONMENT

II. THE 1987 RENEWAL HEARING

III. THE CBC'S ACHIEVEMENTS OVER THE PAST LICENCE TERM

1. The French-Language Networks

2. The English-Language Networks

IV. THE ROLE OF CBC RADIO IN THE CANADIAN BROADCASTING SYSTEM

V. FINANCING THE CBC'S RADIO SERVICES

VI. THE COMMISSION'S CONCERNS AND THOSE RAISED BY INTERVENERS

1. Extension of Service and Technical Standards

2. The French-Language Networks

i) Canadian Music

ii) Canadian Talent Support

iii) Regional Reflection

iv) News and Public Affairs Programming

v) Special Interest Programming

vi) Enrichment

vii) Elitism and Lack of Dynamism

3. The English-Language Networks

i) Canadian Music

ii) Canadian Talent Support

iii) Regional Reflection

iv) News and Public Affairs Programming

v) Special Interest Programming

VII. OTHER MATTERS

1. Northern Service

2. Sex-Role Stereotyping

3. Radio Canada International

4. CBC Enterprises

VIII. THE COMMISSION'S DECISION: TERMS AND CONDITIONS TO BE MET DURING THE NEW LICENCE TERM

a) Extension of service

b) The French-language Networks

c) The English-language Networks

List of Conditions of Licence

APPENDIX - CBC RADIO PROJECTS - APPROVED AND NOT YET IMPLEMENTED

I. THE CHANGING BROADCASTING ENVIRONMENT

At a Public Hearing in the National Capital Region from 13 to 16 October 1987, the Commission considered applications for the renewal of the AM and FM radio network licences held by the Canadian Broadcasting Corporation. As the first hearing devoted exclusively to an assessment of the radio networks, it permitted a full public discussion of the organization and operation of the CBC's English-and French-language AM and FM radio services. More significantly, it provided the first opportunity for a comprehensive examination of the CBC's performance since the last licence renewal hearing of October 1978.

Since the release of the 1979 renewal decision, the broadcasting environment has become even more complex and demanding and the future role of the Canadian broadcasting system has been the subject of intense scrutiny and public debate. On 1 March 1983, following the tabling of the report of the Applebaum-Hébert Federal Cultural Policy Review Committee, the Department of Communications announced the major elements of a broadcasting strategy for Canada in the eighties and beyond.

In May 1985, the Federal Government established the Task Force on Broadcasting Policy which was to recommend a cultural and industrial strategy to govern the future evolution of the Canadian broadcasting system through the remainder of this century. The report of the task force was submitted to the Minister on 22 September 1986. Its recommendations were subsequently considered by the House of Commons Standing Committee on Communications and Culture which released its own recommendations with respect to the CBC's programming and service mandate in its Sixth Report on 4 May 1987.

By virtue of its pivotal position in the Canadian broadcasting system, the CBC has been both an active participant in the various stages of this reappraisal and a major focus of discussion. Given this close involvement, the CBC asked the Commission on three occasions to postpone consideration of the renewal of its network licences. Nine years have thus elapsed since the Canadian public, through the CRTC's licence renewal process, has had the opportunity to examine the CBC's radio services in the context of a public hearing.

During this time, there have been massive changes in the broadcasting environment and there are more on the horizon. The broadcasting sector has witnessed an explosion of new technologies and services. Developments in the delivery, production and reception of programming are greatly expanding the technical quality and scope of service and the options available to the Canadian public and, in turn, are ushering in an ever-increasing degree of competition.

Radio, the senior medium, has kept pace with these changes thanks in part to the portability of radio receivers, the quality of FM sound, satellite delivery of radio signals, such new services as subsidiary communications multiplex operations (SCMO) and the provision by radio broadcasters of higher quality programming to meet changing audience needs.

Between 31 March 1979 and 31 March 1987, the total number of AM originating stations in Canada increased from 390 to 422, and the number of FM originating stations from 168 to 276, including 14 new community stations, 14 new student FM stations, an institutional FM station and two ethnic radio services licensed by the Commission. At the same time, total private commercial radio revenues increased from $355,356,109 to more than $650,000,000.

Over the years, average weekly tuning to radio by Canadians has remained fairly constant but FM radio has enjoyed a steady rise in popularity. Between 1979 and 1986, FM's share of all radio listening hours rose from 24% to 44%, while AM's share declined from 76% to 56%.

The CBC's radio services since 1979 have also continued to grow and adapt. According to the CBC's annual reports for 1978/79 and 1986/87, the number of CBC owned-and-operated stations distributing its English-language AM service increased from 28 to 31 between 31 March 1979 and 31 March 1987 and the number of AM rebroadcasting transmitters from 331 to 445. Over the same period, as a result of the CBC's Radio Affiliate Replacement Plan, the number of private affiliates carrying the English-language AM service decreased from 50 to 8. Comparable figures for the English-language FM network show a decrease in the number of CBC originating stations from 14 to 10 and an increase from 1 to 11 rebroadcasting transmitters. There continues to be one private FM affiliate.

As for the French-language networks, as of 31 March 1987 there were 16 originating stations carrying the French-language AM service, 178 rebroadcasters and six private affiliates, compared with 14 CBC owned-and-operated stations, 126 rebroadcasting transmitters and 19 private affiliates as of 31 March 1979. Over the same period, with respect to the FM service, the number of originating stations increased from five to six, the number of rebroadcasting transmitters remained constant at one, and there are still no private affiliates.

As a result of these changes, 99% of both English- and French-speaking Canadians today have access to CBC AM service in their respective languages, compared with 96.7% and 85.5% respectively in 1979. Ninety-seven percent of Anglophones and 92% of Francophones receive complete AM service via CBC owned-and-operated stations and their rebroadcasting transmitters, and 2% of Anglophones and 7% of Francophones receive a partial service via affiliates. The CBC's FM services are available to 72% of Anglophones and 76% of Francophones in their respective languages, up from 66% and 23.9% respectively in 1979. In those areas where the CBC's French-language FM service is not available, the Corporation provides its audiences with a basic service ("service de base") in which programming from the AM network is supplemented with programs from the FM network. The CBC's English-language listeners are provided with a similar hybrid service. Since the spring of 1984, moreover, the CBC has made its FM services available to cable operators across the country by means of a subcarrier of the satellite transponder used to distribute the proceedings of the House of Commons.

The CBC has also continued to serve northern and native Canadians in English, French and seven native languages through the radio component of its Northern Service. In addition, its shortwave service, Radio Canada International, reaches some 16 million listeners worldwide in 12 different languages.

The Corporation has two sources of funding: Parliamentary appropriations consisting of operating funds, capital funds and working capital, and the revenue the CBC itself generates from its commercial activities. The CBC's own revenues are derived for the most part from its television operations and include income from the sale of advertising time and of broadcast programs.

The Commission notes that since the 1979 licence renewal, the share of the CBC's budget attributable to Parliamentary appropriations has been declining. Whereas in the fiscal year 1978/79 the proportion of the CBC's funds obtained from commercial revenue was 16.6%, this amount increased in the year ending 31 March 1987 to 23.3%. The obverse of this is that, over the current licence term, the amount of government funds, while increasing from $571.7 million in 1978/79 to $855.1 million in 1986/87, has declined in terms of the share of the total funds available to the Corporation. In constant dollars (1981=1), government funds over that same period have declined steadily from $702.3 million to $613.9 million.

Over the past six years, the CBC's operating appropriation has averaged 90.4% of the total government funds, with the capital appropriation averaging 8.6%. Working capital funds account for the remaining 1.0% of the funds voted by Parliament. During this time government appropriations have represented approximately 80% of the total funds available to the CBC, ranging from 82.22% in 1981/82 to 76.25% in 1986/87.

Radio's portion of the CBC's total operating budget is currently 20.3% (1987/88). Program expenditures represent 69.7% of the total radio operating budget and 14.1% of the Corporation's total projected expenses. The English and French radio services divide the programming expenses in a ratio of 62 to 38. This apportionment has been constant over the past few years and is projected to remain so.

The CBC's French-language radio services spent a total of $60.5 million in 1986/87 with a network:regional allocation ratio of 61 to 39. This division is in line with past program allocations which were in the order of 62:38 for the years 1981/82 through 1983/84 and 63:37 in 1984/85 and 1985/86. On the English radio side, however, there has recently been a marked change in the funds allocated for network and regional expenditures. Prior to 1985/86 slightly more funds had been allocated to regional programming (52% in 1981/82, 54% in 1982/83 and 53% in 1983/84 and 1984/85); with the 1985/86 fiscal year, 56% of program allocations went to network expenditures. In 1986/87 the English radio services spent $98.2 million on programming, divided between network and regional expenditures on a ratio of 55:45.

II. THE 1987 RENEWAL HEARING

In his opening remarks the Chairman of the CRTC, on behalf of the Commission, praised the radio services of the CBC for their role in the development of the Canadian broadcasting system:

... CBC [radio] has been an essential part of the ongoing development of Canada as a country, exposing Canadians from coast-to-coast to national issues, to the best of regional, national and international cultural expression and to our national sports ...

CBC radio has been a leader in the technical development of the medium. Its vast network of re-broadcasters, microwave facilities and now satellite services has led the way both in Canada and internationally ...

The Chairman described the renewal process as "an opportunity for the CBC to be fully and openly accountable for its radio operations", while recognizing that the circumstances of the present renewals were rather different from those of the past:

While in [the] 1974 and 1979 renewals, stable operational budgets and increasing capital budgets allowed the public and the Commission to look at the CBC with considerable expectations concerning technical coverage, extension of service, support for Canadian talent [and] expanded carriage of news and public affairs, today these issues and many new ones will have to be considered not in terms of the pace of implementation of these services but in terms of the priorities to be set for the improvement of the services provided by the radio services of the Corporation.

The CBC, for its part, welcomed the opportunity to appear at the public hearing which it described as "our single most important forum of public accountability". Noting that Canadians on average listen to approximately 20 hours of radio per week and that its radio networks are available to virtually all Canadians in English and French, the CBC underscored the importance of radio as a source of information, education and entertainment. It also stressed the vital cultural role played by the French-language networks in those provinces where they are the only French-language radio services available over-the-air to francophone listeners.

Referring to the climate of economic uncertainty in which the radio services are operating, the CBC stated:

[TRANSLATION] Overall, the challenge facing the CBC is very different from what it was 50 or even 10 years ago ...

For radio ... the primary challenge is to maintain, and if possible improve, but at least maintain what has already been accomplished, rather than to accept a watering down or even the dismantling of its service because of a lack in funds.

CRTC-Notice of Public Hearing 1987-70 dated 14 August 1987, which announced the 13 October renewal hearing, had set out a number of issues the Commission intended to discuss with the Corporation with respect to its present and future policy orientation and its role within the Canadian broadcasting system. In response to its invitation for public comment, the Commission received approximately 800 interventions from individuals, educational institutions and associations; representatives of the broadcasting industry, performing arts and cultural organizations; native groups; religious and social service organizations, labour representatives and various levels of government. The overwhelming majority of interveners expressed strong support for CBC radio, stressing their desire to see the quality of service maintained and supported by adequate Government funding.

Supporters of the French-language networks emphasized that these services are [TRANSLATION] "fundamental to our survival and very much appreciated", "an essential service [which] permits interaction among francophone communities" and a unifying force for Francophones from coast to coast.

The Association canadienne française de l'Ontario (ACFO) had this to say: [TRANSLATION]

... as far as we are concerned, the CBC's French-language radio network is not a luxury but cultural oxygen. This applies to all of us, whether we live in large cities like Ottawa, Toronto, Sudbury or Windsor, or in small, isolated communities such as Alexandria, New Liskeard, Geraldton or Dubreuilville. Among the electronic media, the CBC's French-language radio service is one of our vital sources of cultural expression and sustenance.

The Association canadienne-française de l'Alberta cited the excellent work of the CBC's French-language radio service on behalf of Francophones in northern Alberta and Collège Mathieu of Gravelbourg, Saskatchewan described the service the CBC provides to Francophones in its province as "absolutely essential".

The English-language networks also received wide-ranging support from all areas of the country and were described variously as "one of the great glories of Canadian culture", "a force for national definition", a "cultural monument", "the only constant cultural lifeline across the country", "diverse and distinctive" and "a source of pride and envy".

Individuals from Cambridge, Ontario and Salmon Arm, British Columbia wrote that they had been loyal listeners for 40 years. Immigrants to Canada from England and the United States praised CBC radio as a vital national link and, along with other Canadians, noted its pre-eminent status among other radio services around the world. Representatives of Seneca College of Applied Arts and Technology, the Canadian Association for Adult Education, the University of Winnipeg and of the Corporation's religious and science advisory committees, among others, underscored CBC radio's educational value, while others such as Saskatchewan Telephones and the Community Services Council of St. John's, Newfoundland praised the radio networks' record of community involvement and local programming.

Residents of such isolated communities as Tarzwell, Ontario and Jemseg, New Brunswick, as well as the British Columbia Cattlemen's Association stressed the importance of CBC radio service to rural areas and the Downtown Eastside Residents' Association of Vancouver noted the value of the radio networks to low- and fixed-income listeners. ) faible revenu ou à revenu fixe.

The Commission also received numerous interventions from the Canadian artistic community. Canadian musicians, opera companies, symphony orchestras, chamber music groups and the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) credited the CBC with bringing their work to the attention of the Canadian public and providing a vital cultural service.

Composers Harry Somers and Michael Conway Baker and oboist Lawrence Cherney, as well as the Guilde des musiciens de Montréal, the American Federation of Musicians and the Vancouver Cultural Alliance expressed their appreciation of the CBC's commitment to Canadian talent. Raincoast Books commended the CBC's efforts on behalf of Vancouver writers and publishers and the Chairman of the Edmonton Folk Music Festival described the CBC networks as "without peers in its national and local coverage of the Canadian arts scene".

Many interveners, however, expressed concern about the CBC's ability to sustain the quality of its radio services in the face of reduced federal funding. Indeed, a number contended that the effects of budget cuts could already be discerned in terms of increased reliance on program repeats and a decrease in the amount of live programming. Some interveners feared that the CBC would be compelled to re-introduce advertising on radio in order to compensate for funding shortfalls, while others were concerned that regional service would be diminished. Many urged the Commission to impress upon the Government the importance of adequate and stable funding for the Corporation.

In addition, certain interveners identified weaknesses in the present radio services. In its intervention, the Government of Manitoba expressed concern that the CBC may have decided not to continue to extend the national broadcasting service to underserved communities. For its part, the Government of Ontario urged the CBC to continue to "accord high priority to the provision of regionally-appropriate radio services in both languages". The Government of British Columbia proposed a reallocation of the CBC's radio expenditures "to recognize British Columbia's importance as a production centre" in proportion to the relative size of the province and its distinctive characteristics and asked for a substantial improvement in CBC service in Victoria.

The West Coast Media Society, a non-profit educational organization based in Victoria, appeared at the hearing to register disappointment that Victoria is still without originating CBC radio stations. It referred to unfulfilled commitments given by the CBC and claimed that direct reception of the CBC's FM Vancouver service is "either inadequate or totally non-existent".

Nellie Cournoyea, M.L.A. for Nunakput, commented on the critical need for extending basic CBC radio service in the Northwest Territories. Francophone groups, for their part, stressed the fact that there is no CBC French-language service in the Territories and the Société St-Thomas d'Aquin, an organization representing Acadians in Prince Edward Island, recommended that the CBC establish a studio in Charlottetown to improve the regional AM service.

Others asked for improved access for native groups, fairness in news coverage, more drama, higher Canadian content commitments and a reappraisal of the Corporation's role as a provider of local service.

The Commission extends its appreciation to all those who have contributed to the public hearing process. In the most articulate and often impassioned terms, Canadians from all walks of life have expressed their appreciation for the national radio service and their deep concern for its future. They have come to expect the very highest standards of service from the CBC and insist that they be maintained. The Commission has been impressed by the sincerity of the interveners and has carefully considered their views in the course of its deliberations.

The Commission notes that the public hearing was televised nationally via the cable network facilities used to distribute the proceedings of the House of Commons and summarized in daily one-hour presentations on the CBC's English- and French-language AM networks, giving Canadians ample opportunity to examine firsthand the CBC's proposals for its radio services for the upcoming licence term and to become better acquainted with the Commission's public hearing process.

III. THE CBC'S ACHIEVEMENTS OVER THE PAST LICENCE TERM

1. The French-language Networks

According to data provided at the hearing by Mr. Jean Blais, vice-president of the French-language radio service, in the spring of 1987 the total weekly reach of the CBC's French-language AM and FM networks was approximately 700,000 for the AM service and 300,000 for the FM service.

The CBC's French-language radio service is characterized by a very clear demarcation between the programming on the AM and FM networks. While the latter is oriented essentially toward the Classical/Fine Arts format, the AM network features information, documentaries and lighter music. At the hearing, Mr. Blais explained this distinction in the following manner: [TRANSLATION]

We have devised a schedule that is complementary. That is to say, there is more serious music covering the entire musical spectrum on the FM network, it is more cultural, and you would turn to AM for information, something topical and immediate. You can therefore pick and choose, creating your own listening schedule for the day or week according to your mood, needs and outlook.

He added that, according to the CBC's analyses, between 33% and 40% of listeners to the FM network switch to the AM service as taste and need dictate.

Mr. Blais also emphasized the rapid expansion of the AM network since the last licence renewal in 1979, mainly through the establishment of new rebroadcasting transmitters. The Commission also notes that service to northern New Brunswick was improved in the early 1980s with the installation of rebroadcasting transmitters of CBAF Moncton at Néguac, Campbellton and Edmundston.

By virtue of their rebroadcasting transmitters, the territories served by the French-language AM radio network's regional stations are very diverse. CBF Montreal serves a vast territory including metropolitan Montreal and, through rebroadcasters, James Bay, part of the Abitibi region, Haute-Mauricie, the Mauricie and the Eastern Townships. CBV serves Quebec City, the Beauce and Charlevoix; CBGA serves the Gaspé Peninsula from Matane; CBSI-FM serves the North Shore and Labrador from Sept-Iles; and CBJ serves Saguenay and Lac Saint-Jean from Chicoutimi.

CBOF Ottawa serves both sides of the Ottawa River, the Upper Gatineau Valley and part of Ontario along the St. Lawrence River. Elsewhere in Ontario, CBON-FM Sudbury serves northern Ontario (except for the northwest), and CJBC Toronto serves the south, with the exception of the Essex Peninsula which is served by CBEF Windsor. The Corporation has only one French-language station in each of the four western provinces: CKSB Saint-Boniface, Manitoba, CBKF-FM Regina, Saskatchewan, CHFA Edmonton, Alberta and CBUF-FM Vancouver, British Columbia. CBAF Moncton serves all four provinces in Atlantic Canada.

The AM network offers almost 95 hours of programming per week. The remaining 30 hours are allocated to the regional stations although, according to Mr. Blais, many stations produce as much as 38 to 48 hours of regional programming each week. Mr. Blais also indicated that the Corporation is continuing to assign to the regional stations the prime listening hours in the morning and late afternoon on weekdays and Saturday mornings.

In an effort to achieve greater flexibility, the French-language network in March 1986 was equipped with two-way circuits linking the production centres. According to Mr. Blais, these circuits are used primarily for exchanging programs or program segments among regional stations or between regional stations and network headquarters.

The AM network is characterized primarily by its spoken word programming which accounts for more than 60% of the broadcast time and consists mainly of information and enrichment material.

With regard to information programming, Mr. Blais at the hearing cited the series Présent which, with daily and weekly provincial, national and international editions, has covered both major and minor events for more than twenty years.

Live music broadcasts are another important element of the CBC's French-language AM network service. New composers and performers of popular French songs receive particular attention, notably on the program Multipistes and in broadcasts of such special events as the Festival de la Chanson de Granby, a competition for new songwriters and performers, the Festival de Québec and the Festival franco-ontarien. The Corporation organizes the Rock Envol competition for francophone rock artists in co-operation with the Association du disque et de l'industrie du spectacle québécois (ADISQ) and Musicaction. It also collaborates with the Communauté des radios publiques de langue française (CRPLF) in broadcasting and promoting French songs, particularly those by Canadian artists in Europe and by foreign francophone artists in Canada.

The Commission acknowledges the high quality of the CBC's programming, both in terms of the content and its treatment of issues, and in terms of the attention accorded the quality of the on-air use of the French-language. It commends the Corporation in particular for the leadership it showed last year in adopting a policy of broadcasting only French-language vocal music and for its promotion of new French-language musical talent.

The CBC's FM stereo service is available in the Montreal, Ottawa, Quebec City, Chicoutimi, Rimouski, Trois-Rivières and Moncton areas. In addition, the Corporation's French-language radio service includes a third component known as the "basic AM/FM service." It is available everywhere else in Canada in mono and offers a mixed schedule consisting mainly of programs from the AM service and including approximately 15 hours per week of programming from the FM service.

In February 1984 the French-language FM network began broadcasting twenty-four hours a day, representing an increase in broadcast time of 33 hours per week. Mr. Blais indicated at the hearing that the programming of the FM network consists essentially of two elements: musical programs, which account for about 70% of the broadcast time, and spoken word cultural programs. Of the 168 hours of weekly broadcast time, more than 36 hours are devoted to material produced by the Corporation in concert halls or in its studios.

With respect to musical programs, which consist mainly of traditional and special interest music, Mr. Blais emphasized the efforts in recent years to present new and varied material, with a view to encouraging unusual musical events. At the hearing, Mr. Blais gave as examples, the full-day broadcast of live musical programs in 1984 entitled La Folia, evenings devoted to jazz, traditional and modern classical music, concerts from the Orford Centre, the Lanaudière Festival and the Montreal International Jazz Festival, and the broadcast in 1985 of a live concert celebrating the 300th anniversary of the birth of Bach. He also mentioned the national competitions for performers, young composers and amateur choirs run in conjunction with the English-language FM network, its co-sponsorship of the Italia Award and the Prix Paul-Gilson with the CRPLF, and its nationwide talent searches through the programs Récital, Jeunes Artistes and Mélodies, as well as contacts with institutions of higher learning in music to explain the goals of CBC radio with regard to music and to launch new program ideas.

Discussing cultural programming on the FM network, Mr. Blais noted that the focus in recent years has been on broadening the scope of these programs. He stated that, although the concern for aesthetic appeal is always present and the arts and literature are discussed, there are more and more features devoted to the sciences, psychology, geography, history, philosophy, education, medicine, biology, political and sociological phenomena, economics and ecology. Mr. Blais added [TRANSLATION]:

There can be no doubt that this type of radio is more demanding than most other media.

Nevertheless, people who listen to these programs don't feel as though they are in school. Most of the time the discussions are accessible to people without extensive specialized knowledge in an area outside their own field who want to keep an open mind and take part in the great adventures of our era.

With regard to regulatory requirements, the Commission notes on the one hand that the Corporation has achieved a high level of compliance with its network Promises of Performance, even exceeding its commitments in some areas. For example, the Commission's analysis of the network programming broadcast by CBOF Ottawa on 29 September and 4 and 5 October 1986 revealed an enrichment level of 41.6%, compared with a weekly commitment of 34.82%. On the other hand, the Commission's program analysis did reveal a problem with respect to the scheduling of Canadian content music which will be discussed later in Chapter VI.

As for the FM network, the analysis of the programming broadcast by CBOF-FM Ottawa on the same days indicated a level of 49.1% for foreground format programming which exceeds the weekly Promise of Performance commitment of 45%, as well as an overall Canadian content level of 17.6% for category 6 (Music - Traditional and Special Interest) selections, more than double the CBC's 7% weekly commitment.

2. The English-language Networks

At the hearing, Mr. Michael McEwen, Vice-President of the English-language radio networks, summarized the achievements of these services over the past nine years, noting first that, as a result of the installation of some 150 transmitters, since 1978 the number of Canadians with access to the AM network has increased by 2 million and the number with access to the FM service by 2.5 million. He added that more Canadians are tuning in to CBC radio:

Over the five-year period from the fall of 1981 to the fall of 1986, there has been an 11% increase in the reach of CBC Stereo. CBC Radio [the AM service] is now listened to by 2.4 million Canadians weekly. CBC Stereo [the FM service] is now heard by 1.1 million Canadians each week.

The combined unduplicated reach of the two services is approximately three million. That is up 15% from five years ago. In the fall of 1986, CBC Radio and CBC Stereo together captured an 11% share of all anglophone listening hours in areas where a CBC-owned station is located. That is an increase of two share points over five years.

As with the French-language radio networks, the CBC has pursued a programming strategy of complementarity with its English-language networks over the course of the current licence term.

Perhaps the most significant development was the reorganization in 1984/85 of the AM and FM programming schedules whereby new presentations were developed to keep pace with changing audience tastes while such mainstays as Morningside, As It Happens and Ideas on the AM network and Stereo Morning and Arts National on FM were maintained. As stated at the hearing, the goal "primarily was to streamline the two networks to concentrate performance on stereo and information on radio" and also to improve the age distribution of its listenership.

The CBC said that it designs the schedules of its two complementary networks to provide a balance in three major areas: between information and entertainment programming, between general interest and special interest programming and between network- and regionally-produced programming. Within this framework, English radio maintains a service which covers the entire programming spectrum and which, from the point of view of program production, is overwhelmingly Canadian.

As an information network, the AM service covers news and sports, current affairs and human interest issues, as well as arts and entertainment matters. More than 70% of its programming is spoken word, ranging from national news broadcasts from the network's own news services, to public affairs programs like Morningside and the documentary series heard each weeknight on Ideas. The AM network also features Canada's only fully national open-line show Cross-Country Check-up. Entertainment programming on AM includes 165 minutes per week of drama and Radio Active, a weekend presentation out of Quebec City, which features recordings by French-Canadian artists as well as interviews and commentary.

The FM network, on the other hand, specializes in performance and entertainment programming. Classical music is emphasized, along with jazz, folk and some pop music. Music fills about 70% of the air time on the network and the spoken word material devotes special attention to arts and culture, including 90 minutes per week of drama. Pure performance or concert programming accounts for 30 hours of the program schedule each week. Most of these events are recorded in Canada and thus provide substantial support for Canadian musicians and performers. The all-night stereo programs Brave New Waves and Night Lines, introduced in 1984, offer listeners a taste of less conventional radio, including contemporary and avant-garde pop music and culture.

News coverage is an important element in the programming of both English-language radio networks. The AM network airs about 13 hours of newscasts each week supplemented by additional local newscasts during local program periods. Weekly time devoted to newscasts on the FM network amounts to about 12 hours, including an hour of Arts Reports which are broadcast each week during the Stereo Morning program.

Although CBC Radio News has its headquarters in Toronto, the Corporation noted that approximately 40% of all news stories originate with the regional newsrooms. In addition, major network newscasts such as The World At Six are broadcast live in each of Canada's time zones, regularly updated, and structured in such a way as to highlight issues of regional interest. The major news packages, World Report, Canada At Five and The World At Six, are simulcast on both the AM and FM networks and the CBC indicated at the hearing that The World At Six is "the single most listened-to program" on its schedule.

The AM magazine programs As It Happens and Sunday Morning continue to provide stimulating, in-depth, coverage of current events at home and abroad. Audience data filed with the CBC's application show that these programs rank among the CBC's most popular and both were cited frequently by interveners. The Corporation indicated at the hearing that these programs also attract a loyal following in the United States where both are broadcast by public radio. Morningside, which interveners have described as "a force for national unity", is an enduring favourite, providing a forum for discussion of a variety of issues of interest to Canadians, including regional concerns, as well as exposure for Canadian artists and musicians.

In order to provide maximum exposure for special interest topics, the CBC includes discussion of such subjects in its general interest programs such as Morningside, Dayshift, Prime Time and Basic Black which occupy approximately 75% of its AM program schedule. It also serves its special interest listeners through weekly programs dedicated to science (Quirks and Quarks), religion (Open House and A Joyful Sound), and a series of programs, introduced into the AM schedule in 1985, which are devoted to sports (The Inside Track), electronic and print journalism (The Media File), medicine (The Medicine Show), business (Business World) and drama (Vanishing Point).

In its application and at the hearing, the CBC cited the use of specialist reporters and producers in key areas and, since 1979, the input of its Agriculture and Food, Science and Technology, and Religious Advisory Committees as means of keeping in touch with its special interest constituencies. On the FM network, weekly opera, chamber music, choral music and contemporary classical music programs cater to more specialized tastes.

The CBC at the hearing discussed the unique characteristics of radio, noting that "it has to be more local than television [and that] because it is less expensive it can afford to be closer and more local than television". Since the 1970s the CBC has endeavoured to provide a highly decentralized radio service with two objectives: "to serve the community and region well [and] ... to reflect that community onto the national system". As Mr. McEwen explained, the approach has evolved to the extent that:

At the present time, local and regional programming accounts for 30% of the schedule [of the CBC owned-and-operated AM stations]. It is concentrated in the prime time weekday morning, noon and afternoon periods. In addition, at least half of our network programming comes from the regions, either in the form of program segments, inserts or complete programs.

On stereo [the FM network] there are fewer local time periods, but approximately 70% of the production that appears on the full network originates in the regions.

The result is that English radio as a whole depends on the regions for about two-thirds of all the programming which is heard on its radio and stereo services. Each region can talk to itself, deal with its own issues, and showcase its own talent. At the same time, regional issues and concerns are reflected on the national service through contributions from our 26 stations across the country.

According to the CBC's applications, approximately half of the Canadian records broadcast on its classical music programs are CBC productions. These include the SM 5000 series which is devoted to orchestral and choral performances, and the MUSICA VIVA series which concentrates on chamber and solo performances. In addition, the CBC has launched its own audio cassette label, CBC CLASSICS, and releases about forty recordings a year. All of these projects feature Canadian artists and 25% of the classical cassette recordings are composed by Canadians.

The CBC also supports Canadian talent through the broadcast of live classical, jazz and popular music concerts, which account for 30 hours a week on the FM service, and spoken word performance programming, which encompasses drama, comedy and literary features on both networks. It also commissions artistic works and noted at the hearing that it has commissioned 120 works since 1978. In terms of drama, the CBC stated that it had commissioned "approximately 150 radio plays a year for network and regional broadcast" in addition to organizing workshops "at the national and regional levels to train writers for the radio medium".

CBC radio also fosters Canadian talent by sponsoring, in co-operation with the French networks, radio competitions for amateur choirs, young composers, and young performers, which are held every two years and annual national auditions. In 1982, the CBC initiated a yearly jazz competition that is co-sponsored by its radio variety department and the Montreal International Jazz Festival. In addition, since 1979, an annual literary competition has offered both new and established writers an opportunity to win cash prizes for previously unpublished works in several different genres.

From a regulatory point of view, the Commission notes that the Corporation has achieved a high level of compliance with its network Promises of Performance, exceeding its commitments in several areas. For example, the Commission's analyses of the network programming broadcast by CBO Ottawa on 29 September and 4 and 5 October 1986 showed an enrichment level of 53.8% compared with a weekly commitment of 42.4%. However, the Commission's program analysis did reveal a problem with respect to the scheduling of Canadian content music which will be discussed in Chapter VI.

On CBO-FM, an analysis of the programming broadcast on the same days showed a combined foreground/mosaic level of 81.1%, well above the 70% per week indicated in the Promise of Performance, and overall Canadian content levels of 35.5% for category 5 and 18.3% for category 6, compared with weekly Promise of Performance commitments of 30% and 7% respectively.

IV. THE ROLE OF CBC RADIO IN THE CANADIAN BROADCASTING SYSTEM

In each of its previous decisions renewing the CBC's network licences (CRTC 74-70, 79-320 and 87-140), the Commission has discussed in detail the mandate of the national broadcasting service and the obligations that Parliament has directed the CBC to fulfill - specifically, that it be "predominantly Canadian in content and character" and "available in English and French", that it provide "a balanced service of information, enlightenment and entertainment", that it be extended "to all parts of Canada as public funds become available", that it serve "the special needs of geographic regions" and actively contribute to the flow and exchange of cultural and regional information and entertainment, and that it contribute to national unity and "provide for a continuing expression of Canadian identity".

The 23 February 1987 decision renewing the CBC's television network licences elaborated that:

the CBC above other broadcasters, is expected to be an instrument of public policy and to shoulder a special responsibility for safeguarding, enriching and strengthening the cultural, political, social and economic fabric of Canada.

The Commission went on to state that the CBC has a pivotal role to play if the distinctiveness of the Canadian broadcasting system is to be ensured and that, given the current abundance of programming choices and the rapid development of communications technology, the CBC "is even more essential than it was previously".

The CBC was intended by Parliament to be an independent, balanced, national public service with certain minimum standards of excellence in order to ensure that Canadians are informed and entertained citizens. Every Canadian ought to be able to find something of value on the CBC, whether his or her interest is politics, sports, science or the arts. The CBC was expected to provide a range of programming of high standard that touches upon the best Canadian endeavours in all areas worth knowing or talking about, including those in which coverage by other sectors of the broadcasting system may be deficient ...

These statements are equally applicable to the CBC's radio services.

The Commission acknowledges the considerable achievements of the CBC's French and English AM and FM services and the unique position of the national radio broadcasting service within the Canadian broadcasting system. In part, the CBC's uniqueness stems from its legislated mandate. It provides two national AM services, available coast-to-coast and reaching 99% of both French- and English-speaking Canadians. These services offer a strong regional component with one or more originating stations and associated rebroadcasting transmitters, in each province and territory of Canada and in many sub-provincial regions, such as Labrador, Cape Breton Island, northern Ontario and northern British Columbia. These stations serve to celebrate and reflect the cultural richness of each particular region and to highlight its talents and concerns to a national audience.

The CBC is also a public service. The Canadian people have determined, through Parliament, that there is a need for a quality radio programming service spanning the country and has provided public funds to enable the Corporation to meet its special obligations and responsibilities. The resources now in place are the legacy of more than fifty years of government appropriations. Without such sustained support Canadians would not now be receiving national AM and FM radio services offering balanced schedules of programs that appeal to a broad cross-section of Canadians and others designed to meet more specialized needs.

Public funding has also enabled the Corporation to broadcast without commercial advertising, other than such presentations as opera or sports coverage that can only be obtained with sponsorship messages. Not being subject to the market forces that determine and shape private radio broadcasting in this country allows the Corporation to try innovative approaches, to aim for the highest program quality and to provide coverage of certain aspects of the Canadian cultural, political, economic and social life that would not be feasible for broadcasters in the private sector.

The CBC is also expected to perform a strong leadership role in everything from technical standards to the showcasing of Canadian talent. Its programming is expected to offer a distinctive orientation, different from that provided by private broadcasters. To this end, the national broadcasting service has assessed the intrinsic qualities of the radio medium - its versatility and immediacy, its portability, its relative inexpensiveness as a production medium in comparison with television, and the fact that its relationship with each listener is both direct and personal.

At the hearing, the CBC described how, although both its radio and television services function within the parameters established for it in the Broadcasting Act, each differs. Being a multi-media corporation, the CBC is in a position to assess the relative merits of exposing a program on either radio or television.

The cost of, for instance, a major symphony broadcast on television, with all the attendant requirements of producing it, is enormous compared to the cost of the same concert on radio.

There is one other thing: if you put that signal out on normal television sets... it is, to some extent, a waste of product when you [can] put it out on a good FM stereo signal - at ... one-tenth of the cost, and maybe less than that ...

And radio differs from television in involving its audience, in being interactive. Programs such as Il fait toujours beau quelque part, Cross-Country Check-Up and Sunday Morning serve as a national forum for the sharing of ideas, and the immediacy of As It Happens will never be overtaken by the more complex production requirements of The Journal or Le Point. CBC radio provides considerably more information than the Corporation's television services and much of it is focused on the arts or resource sectors that the other medium cannot afford to explore in as much depth on a regular basis.

Part of what makes CBC radio service distinctive from private sector radio is that, although structured in a highly decentralized manner, there is "a national thread" connecting the various stations. Another distinguishing factor is that there is an opportunity to share and exchange services with other components of the national broadcasting service. The CBC's foreign news correspondents can feed stories to both the radio and television services; musical and dramatic works commissioned for CBC radio can receive wider exposure through the Corporation's recording activities; new talent discovered through the CBC's radio competitions for young performers have an opportunity to extend their recognition through subsequent television appearances or through programs broadcast over the CBC's international short-wave radio service; or the CBC's television and radio services together can provide comprehensive coverage of national events such as elections or the papal visit to Fort Simpson.

It is elements such as these which give CBC radio its distinctive character. The English and French AM and FM services provide a varied and balanced schedule of programming that informs, enlightens and entertains listeners across the country. There is a judicious balance between regional and network programming, strong support for Canadian performers and writers, in-depth analysis of politics and the arts, drama and comedy, easy conversation and a wide range of musical expression. A large number of the interventions received in response to these applications endorsed the unique position of CBC radio as both a vehicle for collective Canadian experience on a national scale and a facilitator of communication among the regions of the country. This is the raison d'être of the CBC.

The Canadian public's expectations for CBC radio are commensurate with the CBC's pivotal position in the Canadian broadcasting system, which it holds by virtue of its legislated mandate and public funding, its obligation to provide a distinctive national and regional radio service of high quality, the leadership role it is expected to perform and the fact that, as a large multi-media corporation, it has resources at its disposal for cross-promotion and talent exposure. As such, it is important that, within the context of the public hearing process, the Corporation clearly set out how it proposes to utilize these characteristics during the new licence term.

V. FINANCING THE CBC'S RADIO SERVICES

As part of its applications for the renewal of its four radio network licences, the Corporation filed with the Commission detailed information pertaining to past and current budgets for the English and French AM and FM radio services, as well as future projections of government allocations, anticipated revenues and estimated expenditures for the period 1987/88 to 1991/92.

On 5 October 1987, a week prior to the commencement of the renewal hearing, the CBC also submitted a five-year "Corporate Plan" for the years 1988/89 to 1992/93 which had been approved by its Board of Directors in late September, and included "three-year funding commitments" for its television and radio operations.

In addition, as part of its submission at the hearing, the CBC made an audio-visual presentation to illustrate trends in CBC funding, expenditures and revenue from 1980/81 to 1987/88. The presentation also provided revised financial information with respect to certain aspects of the national and regional operating budgets of the CBC's French and English radio services.

The CBC said that at present its primary challenge for radio was to "maintain what has already been accomplished". Mr. Pierre Juneau, President of the CBC, revealed that at the 23 September 1987 meeting of the Board of Directors, the two vice-presidents for radio had projected budgetary shortfalls totalling $9.5 million over the next three years: $2.5 million for the French radio service and $7 million for the English service. He went on to say:

The senior staff of the Corporation, the senior management ... of course were strongly opposed to that and when the situation was described to the Board ... [it] took the decision, in very strong terms, that we must absolutely find ways to compensate our two radio [services] for those shortfalls.

Other officials of the CBC explained that the Corporate Plan submitted to the Commission "has been designed to prevent further erosion of the resource base" for CBC radio services over the next three years; that, given the Board's determination to protect the radio services, its projections indicate that the percentage of the total operating budget allocated to radio will increase from the current level during the next three years; and that radio's share of the corporate budget would likely remain constant in the years 1991/92 and 1992/93.

The audio-visual presentation established that in the fiscal year 1987/88, the CBC's estimated total budget is $1,175.7 million. Of this amount, approximately 75% ($881.2 million) is derived from public funds with the remaining portion, some $294.5 million, coming from earned commercial and miscellaneous revenues. Of the $881.2 million in total government funding, $786.4 million were allocated for operating expenses, $90.8 million for capital expenditures and $4 million as working capital.

It was noted that the Treasury Board had agreed to increase the CBC's base capital appropriation by $20 million to meet the serious obsolescence problems the Corporation is experiencing with its technical facilities and equipment. Radio's portion of the total capital budget in 1987/88 is $19 million, divided between support for studios and facilities ($9 million), transmission expenditures ($6.4 million), and miscellaneous costs ($3.6 million). The division of these funds between the English-and French-language radio services is $11.6 million and $7.4 million respectively.

The CBC presented a chart illustrating that while the total amount of government funds was highest in 1984/85, in terms of actual buying power as measured in constant dollars, the Corporation has had to absorb an accumulated reduction in real buying power of $91.2 million between 1984/85 and 1987/88. Similarly, the CBC illustrated that its operating appropriation has experienced a loss of buying power of $82.3 million during the same period.

Radio's portion of the 1987/88 operating budget on a responsibility basis was determined to be $166.3 million or approximately 16%, divided between English-language network ($44.6 million) and regional ($63.9 million) expenditures and French-language network ($39.7 million) and regional ($18.1 million) expenditures.

Despite the CBC's determination to protect the Corporation's radio services from budget cuts in coming years, discussion at the hearing has led the Commission to express its concern that this objective may not be achievable in light of a number of financial considerations, including the fact that government appropriations may not meet the CBC's anticipated levels and that there may be "unavoidable new costs" for such expenditures as salary adjustments, revised telecommunications contracts, unforeseen taxes, copyright payments, or legislated changes to labour or building codes. The CBC estimated that such costs could be in the order of $32 million for 1988/89 and the potential impact on the radio services could be approximately $6 million.

... if we do not get some funding from the government for costs such as these, then the operational plans that have tentatively been approved by the Board, which included protecting radio, both English and French, from further cuts ... will not be operational any more.

The Commission notes that even within the five-year operating and capital funding projections supplied by the CBC, the Corporation is likely to continue to experience reductions in its actual buying power, notwithstanding the positive anticipated growth in commercial revenue over this period. The Commission is concerned that a continuation of this trend will place significant pressure on the Corporation's plans for resource allocations.

The Commission notes from the figures provided by the Corporation, that the percentage of the CBC's total budget allocated to both capital and operating expenditures will diminish between 1987/88 and 1992/93. Projections provided on a responsibility centre basis (that is, for radio program production and distribution costs) indicate that the operating allocations will rise during this period both in terms of dollars and as a percentage from $170.4 million (16.3%) to $198.7 million (16.9%). If, however, CBC's operating allocations are calculated on an expenditure basis, the percentage of total corporate expenditures accruing to the radio services will decline steadily from 21.4% in 1986/87 to 19.2% in 1992/93. The expenditure basis calculation includes the costs as stated above on a responsibility basis plus non-cash items such as depreciation and a proportional allocation of the costs of other services such as the corporate head office, engineering, finance and administration and personnel.

In terms of capital budget projections, the CBC has forecast that between 17% and 25% of the total monies available for this purpose will be allocated to radio between 1988/89 and 1992/93. The Commission notes, however, that these levels are generally lower than those in the years 1981/82 to 1987/88 when levels ranged from between 21% and 33%.

The CBC has identified the Toronto Broadcast Centre as its major priority in terms of capital expenditures. The Commission's 1979 renewal decision had encouraged the CBC to "proceed with the consolidation of its Toronto production facilities as quickly as possible".

The CRTC is concerned, however, that in the coming five years the Corporation has allocated no capital funds for extension of service projects. Mr. Juneau explained at the hearing that in negotiating with the Treasury Board for additional funds to combat the obsolescence problem, the CBC had agreed that the replacement of obsolete equipment and facilities, including those in Toronto, were to be achieved at the expense of "adding to our installations".

As explained by the CBC at the hearing:

Last year, the Treasury Board gave us an incremental $20 million in the base [capital appropriation] on the understanding that we would not fund any extension of service projects, that we would dedicate the money to our obsolescence problems. It was an administrative understanding, but it was such that if, at the end of the year, we reported back to them that we had spent the money on extension of service projects, they would then have considered reducing our appropriation...

The Commission considers this determination to be in conflict with one of the basic tenets of the CBC's mandate which stipulates that CBC services should be extended to Canadians in all parts of this country as public funds become available. While acknowledging that it is not financially feasible for every single Canadian to receive the full range of CBC radio and television services, the Commission is of the view that there are a number of longstanding gaps in the CBC's English and French AM and FM radio services that require an immediate solution. Accordingly, it intends later in this decision to set out on a priority basis those extension of service projects it considers essential to be completed in the immediate future. In the Commission's opinion, such regional inequities must not be permitted to continue particularly as all Canadians participate equally in the funding of the national broadcasting service.

It is the Commission's view that despite the CBC's assertion that its Board of Directors has given a commitment to protect its radio services from budget shortfalls, the likelihood of diminishing real and potential resources may pose a serious threat to the existing quality and nature of the CBC's radio services. The strong endorsement of CBC radio as evidenced by the hundreds of supportive interventions is proof that the Canadian public continues to believe that a commercial-free national public broadcasting service that serves the cultural and geographic needs of each region is an essential and desired component of the Canadian broadcasting system.

The Commission has also noted with concern that in seeking as much as possible to preserve existing broadcast facilities and services in the face of continuing financial difficulties, the CBC has made many small-and medium-size cuts in most of its operating areas. In the Commission's view, this policy of spreading the financial hardship over a wide range of areas may well threaten the longstanding commitment to excellence of CBC radio and its future ability to meet its mandated requirements.

The Commission is concerned that, in the present circumstances and for the foreseeable future, the Corporation's ability to meet the requirements of its legislated mandate is under severe stress.

In its decision renewing the CBC's television network licences (Decision CRTC 87-140 dated 23 February 1987), the Commission stated that:

unless and until the mandate of the national broadcasting service is changed, the government should assure itself that the CBC has sufficient funds to enable the Corporation to fulfill the objectives set out for it in the Broadcasting Act. Given the exigencies of the Act, the significance of the CBC within the Canadian broadcasting system, and the high expectations the Canadian public has for the CBC, the Commission considers this a matter of urgent priority.

The Commission reiterates this statement in terms of the Corporation's radio services. The CRTC is firmly convinced that the provision of the full CBC radio service is an unfulfilled requirement of the existing legislation.

VI. THE COMMISSION'S CONCERNS AND THOSE RAISED BY INTERVENERS

The Commission is generally satisfied with the accomplishments of the CBC's radio services over the past nine years. In that period the CBC has succeeded in extending service to many millions of Canadians and in continuing to provide a wide choice of informative and stimulating radio program fare.

The vice-presidents responsible for the English and French radio services both spoke at the hearing of their plans for the new licence term, emphasizing the need for certain improvements in their respective services. As future financing is uncertain, they stated that the first imperative would be to prevent further erosion of the funds available to radio and to consider "detailed contingency plans in the event that additional reductions are required".

Mr. McEwen explained that inevitably this would "result in a fundamental change in the nature of public radio in this country". Since the CBC's first priority is "to restore adequate resources to current activities", he noted that it is in no position to launch new initiatives. Each service had its "wish list", but those projects which can not be met through the redirection of funds from a shrinking resource base were described as "visionary". The CBC was unable to make many precise commitments for the period of the upcoming licence term because of its uncertainty as to whether or when it would have sufficient resources "to convert the vision into reality".

The Commission had noted in its decision last February renewing the CBC's television network licences that the CBC had "failed in its obligation, as the national broadcasting service, to inform the Canadian public through the public forum envisaged by the Broadcasting Act of its priorities as to the future implementation of its mandate, based on the funds made available to it".

Again, on this occasion, the CBC did not set out for public scrutiny comprehensive proposals or alternative scenarios for the upcoming licence term.

As the CRTC has repeatedly stated, the provision of this type of information is a fundamental requirement of any renewal hearing. The publicly-funded national broadcasting service has the same obligation to provide such material as does the private entrepreneur. The Commission's responsibilities as set out in the Broadcasting Act require that it regulate and supervise the Canadian broadcasting system in the public interest. It is imperative that each licensee, in seeking the Commission's authority to renew the licence entrusted to it on behalf of the Canadian people, not only report on its past achievements but also provide a clear and complete description of the future development of that service in order that the Commission may judiciously assess its place within the Canadian broadcasting system.

Such a requirement is especially vital for the CBC whose four national radio networks play such an important and definitive role in the Canadian broadcasting system. The information is required of the Corporation, not only because the public hearing should provide a forum in which the Canadian people may assess the Corporation's future intentions against their own aspirations for the CBC, but also because the Commission must assess the CBC's future contribution to the Canadian broadcasting system.

After much discussion throughout the October public hearing as to the need to place such information on the public record, the Corporation did file some information with regard to those aspects of its radio programming services it intended to restore, maintain, improve, or undertake. It did, however, qualify the goals it had identified for the upcoming licence term as being either contingent upon the continuation of current funding levels or requiring "a further infusion of funds". No timetable was provided for the implementation of the initiatives listed and many of them were phrased in such vague terms as "introduce as appropriate" or "explore avenues".

The Commission has examined the CBC's priorities as submitted and has determined that there remain a number of specific issues raised in the context of the renewal hearing with respect to extension of service and concerns specific to the CBC's French- and English-language radio services which it considers the Corporation not to have adequately addressed.

1. Extension of Service and Technical Standards

As described above, the CBC's capital funds have all been earmarked for equipment replacement and maintenance to industry standards. The Commission has emphasized that, in its view, the public funds made available for the Corporation should include some provision for the extension of CBC radio services. The CBC itself has stated that its AM and FM services provide complementary, balanced schedules of information and performance programming and that "each network is equally essential to the fulfillment of our mandate".

The Commission has noted the Corporation's contention that if cable operators could be encouraged to distribute the CBC FM services, which are available to them via satellite, its FM services would be potentially accessible - although in a limited way - to 86% of Anglophones and 83% of Francophones.

Some communities continue to receive a restricted portion of the CBC radio service through affiliated private stations. Some areas of the country receive no CBC FM service at all, not even in the majority official language.

Earlier in this decision it is noted that the CBC's FM stereo services are available over-the-air to 72% of Anglophones and 76% of Francophones in their respective language. This still falls short of the goal established in Decision CRTC 79-320, in which the Commission stated that "the FM stereo service in each official language should be extended to reach at least 75% of the appropriate language group by 1983", and is only partly mitigated by the limited availability of the stereo services on some cable systems in areas where over-the-air reception is inadequate or not available.

In addition, of particular concern to the Commission is the fact that the stereo services are not distributed equitably across the country. Some provinces are relatively well served, with 80% or more of the population able to receive stereo service in the majority official language. Other provinces, however, are not so fortunate. Prince Edward Island does not receive CBC stereo service in either English or French. The English-language stereo service is available to only 39% of Newfoundlanders and to 49% of British Columbians. As for those provinces with significant numbers of Francophones, the French-language stereo service is available to only 29% of the francophone population in New Brunswick and to 33% of Ontario Francophones.

The Commission notes that to date the Corporation has yet to implement nineteen FM stations for which it has already received authority from the Commission for the provision of AM or FM radio service in English or French (see the Appendix to this decision for a complete list). Sixteen of these projects have been outstanding for more than a year, including four that were approved more than five years ago. The CBC anticipates that it will complete the projects to provide English AM service to Gillam, Manitoba by the end of March 1988 and to Lynn Lake, Manitoba and to Geraldton and Manitouwadge, Ontario in April of this year. The remaining projects it has designated as either "to be completed at a later date" or "project under review".

The Commission considers the implementation of the remaining radio undertakings to be a matter requiring the Corporation's urgent attention and will specifically address that concern in Chapter VIII.

The timely investment in new technology is important to maintain a quality service. In recent years, AM stations in Canada and, indeed, throughout North America have experienced a noted decline in audience. One reason for this is the public's perception that the FM band delivers superior sound. As a means of countering the loss of listeners to FM stations AM stereo was introduced after considerable study by AM broadcasters, manufacturers of radio receivers, the Department of Communications, its U.S. counterpart the Federal Communications Commission, and the National Radio Systems Committee (NRSC) of the United States.

The Corporation stated in its application that it has no plans at present to convert any of its AM transmitters to stereophonic sound because of the high cost involved and the limited benefit it considers would accrue to its basic radio services which consist primarily of information-based, spoken word programming.

More recently, as a means of improving the sound of AM stations and of reducing the potential for interference from stations occupying adjacent frequencies, the NRSC has issued a voluntary national standard for AM broadcasting involving, at the transmitting end, the use of a standard pre-emphasis and filter network which serves to limit the audio bandwidth to 10 kilohertz (kHz) and introducing complementary de-emphasis and audio bandwidth limitation in the receivers. The cost to the CBC of implementing these standards would be very modest.

The Commission is of the opinion that the Corporation has a responsibility to provide leadership in maintaining and improving the technical quality of radio broadcasting. Accordingly, it calls upon the Corporation to examine the NRSC technical standards for AM with a view to their implementation on its originating AM stations and their associated rebroadcasting transmitters.

2. The French-language Networks

The Commission has seven areas of concern with respect to the French-language radio services: Canadian music, Canadian talent support, regional reflection, news and public affairs programming, special interest programming, enrichment, and a perceived lack of dynamism.

i) Canadian Music

The radio regulations require that at least 30% of the musical compositions broadcast by an AM station each day between 6 a.m. and midnight be Canadian. Although the regulations contain no such provision for FM stations, the Commission requires a weekly Canadian content minimum of between 10% and 30% in the general popular music category (category 5), depending on the musical format of the station, and a weekly minimum of 7% for traditional and special interest music (category 6).

The regulations do not impose any requirements on radio networks but a network that broadcasts for several hours a day and whose programming contains a significant musical component will necessarily have an impact on its member stations in terms of their compliance with the regulations. Further, networks are bound by their Promise of Performance commitments.

The Commission's programming analysis indicated that while approximately 32% of the musical compositions broadcast during CBOF's regional programming periods on Monday 29 September and Saturday 4 October 1986 were Canadian, only 25% of the musical compositions broadcast during the network programming period on the Monday were Canadian, for an overall level of 28.3%, resulting in CBOF's non-compliance with the 30% regulatory requirement. On 4 October, 59.8% of the compositions broadcast by the network were Canadian; when combined with CBOF's regional programming, the overall Canadian content level was 50.4%. On Sunday 5 October, CBOF relied almost entirely on network programming and did not broadcast any musical compositions during its regional programming periods; only 10.5% of the compositions contained in the network programming broadcast by CBOF were Canadian.

The Corporation admitted that it was at fault and emphasized that it considers the 30% level to be a minimum. It explained, however, that, unlike stations where all of the musical programming is generally co-ordinated by a musical director, at the CBC the musical content of each program is the responsibility of the program producer. The Corporation conceded that with this system it is not always able to control the selection of musical compositions broadcast over the course of a day. It therefore made a commitment to set up control and co-ordination mechanisms in order to ensure that it meets its minimum Canadian content requirement. Following discussions with the Commission as to the leadership role the CBC is expected to play in terms of broadcasting Canadian musical compositions, the Corporation undertook to increase the Canadian content on the AM network to 40% on a weekly basis beginning with the next program year (fall 1988) and to achieve a 50% level during the next four years.

The Commission has evaluated these revised commitments in light of the CBC's responsibilities under the Broadcasting Act and its past record of performance. After careful consideration, the Commission has decided to impose conditions of licence which require, for each network, minimum Canadian content levels that are more stringent than those proposed by the Corporation. These are set out later in this decision.

With respect to the broadcasting of music by the Corporation's regional stations, the Commission expects that a very high percentage of their musical programming will be devoted to Canadian music, particularly to recordings by artists from the regions served by the particular station. Their ultimate goal for popular music selections should be to attain 100% Canadian content. The Commission will closely examine Canadian content commitments when it considers the applications for individual licence renewals and expects significant commitments in this regard.

ii) Canadian Talent Support

In 1986 the Commission had expressed concern with respect to a decline in the production of French-language vocal music and invited all interested parties, including broadcasters, producers, performers, distributors and government departments to co-operate in revitalizing this art form. Since then, private broadcasters and members of the recording industry have pooled their efforts and their resources with the support of government programs such as the recorded music development fund administered by Musicaction and there is evidence of a new vitality in Canadian French-language vocal music. The Commission considers that the CBC could make a major contribution in this area through greater co-operation with the private sector and better co-ordination of the significant resources at its disposal, including its AM and FM networks, and its French- and English-language radio and television networks to cross-promote programs and provide greater exposure for Canadian musical talent.

With respect specifically to CBC television, the Commission stated in Decision CRTC 87-140 that the French television network must endeavour to showcase more young French-Canadian performers in its music and variety programs. In this way, the Corporation's radio and television services could complement and enrich each other by sharing initiatives each has taken in the last few years.

As discussed at the hearing, the Commission notes that there could also be greater co-operation on such events as the CRPLF's Juillet de la chanson française and on La Semaine de la chanson française d'ici which was organized by private broadcasters in Quebec. These two events have common objectives and were held almost concurrently in the spring and summer of 1987. Further, the Commission urges the Corporation to ensure better follow-up in its efforts to encourage new Canadian talent and not to limit itself to one-time participation in specific events.

The CBC acknowledged at the hearing that its status as a multi-media corporation permits co-ordination of its French- and English-language AM, FM and television resources and that such initiatives could, in particular, increase the impact of and support for new musical talent. In this regard, it undertook at the hearing to file with the Commission within six weeks the results of an ongoing study into the possibility of cross-media collaboration. The Commission notes that it has not, to date, received this information. The Commission discusses further the matter of Canadian talent support in Chapter VIII of this decision.

The Commission notes the Corporation's statement at the hearing that its priorities for French-language FM radio are to increase the number of works commissioned from Canadian composers, to increase its production of classical and jazz recordings by 25%, and to expand its public concert activities.

The Corporation also plans to broadcast more live concerts and to provide the FM network with a mobile unit and on-site satellite link enabling it to broadcast from any concert hall or festival, regardless of the location, rather than having to use cumbersome and expensive terrestrial links. The Corporation further plans to install a digital recording studio within five years.

iii) Regional Reflection

One of the major challenges facing the CBC's French-language networks is that of offering a national broadcasting service to an audience that is highly concentrated in Quebec while, at the same time, reflecting the interests and concerns of French-speaking listeners scattered throughout the nine other provinces. For several years, associations of Francophones outside Quebec have criticized the Corporation's French-language service for being too heavily oriented toward Quebec. At this hearing the associations, speaking through the Fédération des francophones hors Quebec (FFHQ), once again demanded that the network be more open to the regions. The FFHQ emphasized that [TRANSLATION] "it is still often very difficult for productions from outside Quebec to receive exposure on the national network". The FFHQ also demanded that the Corporation set up a permanent mechanism for consultation between CBC management and national representatives of the FFHQ.

Montreal is still the production centre for virtually all of the AM network programs. The only shows produced elsewhere on a regular basis are a weekly music program from Vancouver and weekly programs on the House of Commons in Ottawa and the National Assembly in Quebec City, broadcast when these bodies are in session. Otherwise, the regions are reflected through inserts in shows

such as Il fait toujours beau quelque part, Les belles heures and Multipistes, and through such public affairs programs as Présent national and Présent dimanche.

Except for local station identification, there is no local broadcasting on the stations belonging to the FM network. At the hearing, the Corporation pointed out that it could not consider broadcasting more regional material as its priority for the FM network is to extend service to regions where it is not yet available, as finances permit.

The Commission notes, however, that it is primarily on the FM network that complete programs from the regions are broadcast, particularly concerts, documentaries and dramas which reflect effectively the different facets of the cultural life of the regions in which they are produced.

In its reply to the interventions, the Corporation indicated that it is prepared to take into account regional issues and concerns, notably in its news programming, and to provide better service to all of French Canada. The CBC said that it was unable to fulfill requests for extension of and improvements to its services because it did not have the funds necessary for such projects. As for the permanent consultation mechanism requested by the FFHQ, the Corporation indicated that the managers of its regional stations and at head office often meet with groups like the FFHQ and that it did not feel it would be appropriate to increase the number of advisory committees.

The Commission is aware that the Corporation's French-language stations, including those outside the province of Quebec, do not have at their disposal all the necessary resources to produce programs for the network on a regular basis. Nevertheless, by virtue of its mandate, the Corporation is required to ensure that the country's regions are reflected in its network programs and that its originating stations adequately serve all of the territory they cover. One possibility would be for the CBC to broadcast in rotation a series of regionally-produced programs whose content would be a genuine reflection of regional issues and concerns.

The Commission also notes that, in Quebec, regions as large as the Eastern Townships, the Mauricie, James Bay, the Beauce and the Outaouais are served from Montreal, Quebec City or Ottawa and it considers that efforts must be made to ensure that regions with interests so diverse can recognize themselves on the national radio broadcasting service. At the hearing, the Corporation said that it was willing to explore options such as separate feeds to regional rebroadcasting transmitters, local correspondents in communities such as Trois-Rivières and Sherbrooke, and newscasts specific to these regions, as well as the possibility of eventually providing storefront operations in certain communities.

The Commission encourages the CBC to do its best to improve its network services in order to serve the entire area covered by each of its originating stations together with their rebroadcasters, whether by means of programs produced in the regions and broadcast in rotation, regular programs originating in the regions, the inclusion of regional information in network programs, split feeds, or by other means.

This does not mean that the Corporation should drop the local programming that it currently provides, which includes surveillance information. However, given the coverage area of the regional stations and the fact that their survival does not depend on local ratings, the Commission expects that the programming broadcast on these stations will take into account the various audiences they serve. The Commission will closely examine the stations' performance in this respect when their individual licences come up for renewal, and it expects the CBC's regional stations to make significant commitments in this regard, including plans to produce separate programs for distribution by the rebroadcasters, or the redeployment of staff in order that the region may be better covered.

With respect to the Corporation's proposal to establish storefront operations in certain regions in the future, the Commission notes that in response to the concern raised by certain interveners, including the National Association of Broadcast Employees and Technicians (NABET) that this would lead to a decrease in regional service, the Corporation made a commitment at the hearing to submit applications to the Commission if it decides to pursue this proposal.

Further, the Commission has noted the statements of the FFHQ representative at the hearing: [TRANSLATION]

Certainly, it doesn't always seem based on much of the programming, especially the network programming, that there are many Francophones or activities conducted in French outside the province of Quebec. Often, you even wonder whether there are in fact activities or a dissemination of the French language and culture outside of Montreal.

The Commission hereby reiterates what it said in Decision CRTC 87-140, that the CBC French-language radio service adequately serve Francophones living outside Quebec and reflect their environment and their concerns. The Commission will further address the matters of regional reflection and of the radio programming needs of Francophones outside Quebec in Chapter VIII of this decision.

iv) News and Public Affairs Programming

As one of the major news-gathering organizations in the country, the CBC has an important obligation to provide fair and balanced news coverage. To this end, in 1982, the Corporation published a Journalistic Policy which touches on several points related to journalism and contains a chapter on standards for the news service.

The policy makes reference to the Broadcasting Act, which states that the broadcasting system should "provide reasonable, balanced opportunity for the expression of differing views on matters of public concern...", and is based on four principles:

a) The air waves belong to the public, who are entitled to hear the principal points of view on all questions of importance;

b) the air waves must not fall under the control of any individuals or groups influential because of their special position;

c) the free exchange of opinion is one of the principal safeguards of democratic institutions;

d) strict neutrality is to be observed.

In addition, information programs must adhere to the established journalistic principles of accuracy, integrity, fairness and thoroughness.

At the hearing, the Corporation indicated that the French-language radio and television services distribute the CBC's Journalistic Policy to all journalists and regularly use the policy in evaluating the information they broadcast, adding: [TRANSLATION]

If there are deficiencies, we rectify them immediately. Sometimes it's after the fact, sometimes on the basis of complaints that we receive very soon after the broadcast, and other times we ourselves see that there has been an error and we bring that to the attention of the journalists and often we have to make a correction in subsequent newscasts.

The CBC announced that last summer it had formed a committee to study information programming. There were about ten people on the committee, including journalists, hosts, producers, researchers and a regional programming assistant.

The committee's primary objective was to ensure that news receives priority in radio information programming in terms of quality, volume, positioning and the transfer of resources from one sector to another, for example from public affairs to news.

Its second objective was to strengthen reporting because, as the Corporation itself admitted, too much emphasis is placed on round table discussion and phone-in shows.

[TRANSLATION] ... We want to see whether this might not be an opportunity to create a new, dynamic sector that would provide us with a better reflection of real life, of what goes on in the heart of community life, on the street, outside the movie theatres, in public places, the shopping centres, airports and so on.

Thirdly, the committee was to examine the Corporation's treatment of public affairs in order to create programming that could cover, at one time and in one place, all the major public issues. The Corporation described this last objective in the following terms: [TRANSLATION]

... One of the major objectives of the study group is to ensure much closer co-operation with the regions, so that regional material of national interest makes its way onto the network more regularly and so that we at the centre are in a position to provide the regions with services that will give them a little more independence in organizing their material to suit their specific audiences and meet their precise needs.

During the hearing, the Corporation identified the following priorities: improving the news provided by regional stations, establishing a better system for co-ordinating relations with the network, strengthening its information programs, and reviewing the news policy in general and the FM service's news policy in particular.

The Commission is of the view that the Corporation's Journalistic Policy is a model in its field. It therefore encourages the Corporation to continue to ensure that its journalists are made aware of the policy and understand it fully. As set out in Chapter VIII, the Commission also expects the Corporation to update the policy periodically and to follow up by ensuring that its applicability and effectiveness are evaluated using appropriate mechanisms.

Further, the Commission invites the Corporation to consider the establishment of a journalistic review committee similar to that announced by the CBC on 17 December 1987 with regard to the CBC's proposed English-language news and information specialty service as an appropriate means of dealing with complaints and comments from the public on the news and public affairs programming of the national broadcasting service.

The Commission notes that the FM network broadcasts less than 3 hours of news per week and that no newscasts are aired between 1 p.m. and midnight. As previously noted, the Corporation emphasized at the hearing that [TRANSLATION] "we decided to create complementary programming schedules", such that listeners could tune to FM radio for classical music, jazz and culturel and documentary shows and to AM radio for in-depth information. The Commission notes, however, that following discussions on this subject at the hearing, the President of the Corporation stated, [TRANSLATION] "I think we should take another look at the issue".

The Commisison has serious reservations about the lack of newscasts during long periods of the day as this leaves listeners, particularly those who listen exclusively to the FM network, without any news. It further notes that, consistent with its FM radio policy, it expects FM licensees to develop a broader and more in-depth approach to information programming and will address both of these concerns further in Chapter VIII.

v) Special Interest Programming

In its application, the CBC admitted that it has not broadcast radio programs directed to children for some years because it considers that television is better able to capture the attention of young audiences. At the hearing, the Corporation expressed the opinion that it is very difficult to attract children and youth to specific radio programs and that the only way to reach them would be to provide a radio service exclusively for young listeners. It added that recent programs with a rock music orientation had not been as successful as it had expected.

The Commission acknowledges the difficulty of reaching and serving children and youth on radio and is well aware that the production of radio programs for these audiences has in recent years been extremely limited. Moreover, it is following with great interest the programs for children that have recently been produced by certain private broadcasters. Nevertheless, the Commission expects the Corporation during the upcoming licence term to examine the development of programming for children and youth and to report to it on its progress in this regard.

The CBC has not made any provision for ethnic programming, although for a number of years it did broadcast the series Ils sont des nôtres, in which new Canadians spoke of their lives and experiences. The Commission considers that the ethnic component of the francophone market is large enough to be taken into account by the CBC. It should be pointed out that the Commission is not referring to foreign-language programs or to one program in particular, but to the need for the French-language networks to reflect this component of Canadian society to the benefit of the general public.

Historically, French-language radio has broadcast few programs dealing with native issues. The application mentions only a limited number of programs on native people that were broadcast between 1979 and 1986. The CBC also stated that it has integrated native issues into its cultural, scientific and public affairs programs, since "their problems are our problems". The Corporation also pointed out that native problems of a more specific nature have been addressed in programs produced by the CBC Northern Service.

At the hearing, the CBC stated that it considers it a priority to serve sectors of the population with differrent interests and of a different socio-demographic composition by offering a variety of program content on its French-language radio service. The Commission therefore expects that, during the new licence term, the CBC will broadcast on a regular basis a sufficient number of programs of interest to its specific audiences, notably, children and youth, ethnic and native audiences.

The Commission also expects the CBC to continue to balance its representation of native and multicultural minorities in the programming of its radio networks in a manner that reflects realistically their participation in Canadian society and contributes to the elimination of negative stereotypes.

vi) Enrichment

In proposing more than 43 hours per week of enrichment material on the basic AM network and 38 hours per week on the restricted AM network, the Corporation has set very high objectives. Its enrichment material includes programs devoted to science, the humanities, daily living, entertainment, and magazine programs, etc. The 24 hours per week of enrichment material on the FM network include radio drama, documentaries, dicusssions of literature and films, and interviews.

The CBC conceded, however, that it has reduced the number of drama programs because of budget cuts. Currently, on the FM network, the CBC broadcasts the series Théâtre du lundi. The first part of this program consists of information about plays and other theatre activities, primarily in Montreal and in the province of Quebec, while the second part is devoted to the presentation of a dramatic work. These are generally written by Canadians, but occasionally a play is broadcast that has been submitted for the CRPLF's Prix Paul-Gilson.

Later in the hearing, the CBC stated that it was a priority to increase the number of original productions in its spoken-word cultural programs and to increase by half its production of original plays. The Corporation added at the hearing that it hoped, insofar as its budget would allow, to increase science series and documentaries.

The Commission considers that the Corporation should broaden its coverage of cultural events so as to improve the reflection of theatre and other cultural activities throughout French Canada.

vii) Elitism and Lack of Dynamism

An intervener, the Institut canadien d'éducation des adultes (ICEA), reproached the CBC for resisting the incorporation of more popular culture into its FM programming and for the lack of dynamism and freshness in some of its programs. It also claimed that certain shows on the FM network are elitist and accessible only to scholars. In the ICEA's opinion, the CBC had lost contact with the public.

In response, the CBC explained that: [TRANSLATION]

. during our evaluation process, ... we warn our producers against the tendency to speak only to the initiated because the initiated could speak to each other with excessive familiarity or take an overly haughty approach to discussing issues. Both cases would harm our objective of communicating in an effective and direct manner.

The Corporation added, however, that it was prepared to make greater efforts to reach the uninitiated public in innovative ways. The CBC rejected criticism that it had lost contact with the public, insisting that on the contrary it had increased these contacts.

The CBC also strongly affirmed that its French-language radio service had demonstrated dynamism in several ways. It has an ongoing policy of constantly updating its programming: in terms of its music programs, it does this through its leadership in broadcasting French-language popular music, its live broadcasts of concert performances, its support for young composers and performers and its close involvement with universities, conservatories and music schools.

It admitted, however, that it had been less successful in terms of its cultural spoken word programming. Mr. Blais also made reference at the hearing to the fact that in its national network programming, the French-language radio service attempts to reflect the entire francophone population of Canada, citing in particular the success of such general interest programs as Il fait toujours beau quelque part and Les Belles heures.

3. The English-language Networks

The Commission's concerns relative to the English-language services centre around five areas: Canadian music, Canadian talent support, regional reflection, news and public affairs programming, and special interest programming.

i) Canadian Music

The Commission has already noted that its overall programming analyses indicated a high level of compliance with Promise of Performance commitments on the part of the CBC. The analysis of AM programming as broadcast by CBO Ottawa, however, revealed problems with respect to the distribution of Canadian musical compositions throughout the broadcast week. The Commission found a Canadian content level of 44.2% on the weekday analysed but only 17.7% on the Saturday and 25.8% on Sunday. When broken down into network and non-network programming periods, the Commission's results revealed further that the level of Canadian content during network periods was 45.5% on the weekday but 14% on Saturday and 25.8% on Sunday.

While the AM network was able to meet its overall Canadian content commitment of 30% measured on a weekly basis, such scheduling is cause for concern because, by regulation, the Corporation's local AM stations must achieve a daily Canadian content level of 30%.

At the hearing, the CBC indicated that it was not its intention to program lower levels of Canadian music on weekends and attributed the problem to a lack of communication among the producers in the different centres which supply the network's weekend programming. It advised the Commission, however, that immediate action had been taken to correct any deficiencies and to improve co-ordination among its staff members. To ensure that the system of co-ordination was working, the CBC also instituted a monthly reporting scheme for Canadian content in all programs for both networks. In summary, Mr. McEwen gave the Commission his "personal assurance that CBC Radio is now meeting the 30% Canadian content requirement on a daily as well as a weekly basis".

With respect to the upcoming licence term, in its application the CBC proposed minimum Canadian content commitments for the AM network of 30% for popular (category 5) music and 15% for traditional and special interest (category 6) selections. On the FM network it proposed to decrease the category 5 commitment from 30% to 20% and to increase the minimum category 6 level from 7% to 15%. The Corporation also suggested a set of criteria for the definition of Canadian classical music selections.

The Commission discussed these proposals at length with the CBC at the public hearing, with particular attention to the category 5 commitments. The Chairman of the CRTC expressed the view that the CBC should be an uncontested leader in Canadian content and the Corporation itself agreed that it was taking a conservative approach in its commitments. These sentiments were echoed by interveners such as the Canadian Association of Broadcasters (CAB), which proposed that the CBC's category 5 selections be exclusively Canadian, and the Canadian Independent Record Production Association (CIRPA), which suggested Canadian content target levels of 80% for category 5 selections and 30% for category 6 selections on both the AM and FM networks.

The CBC was asked to review its proposals and to present revised commitments by the end of the hearing. In response, the CBC agreed to commit to minimum category 5 Canadian content levels of 40% on AM between 6 a.m. and midnight, to be measured on a daily basis, and 35% on FM between 6 a.m. and midnight, to be measured on a weekly basis. The CBC indicated that the new minimum commitments would be attained within one year and that, by the end of five years, 50% of the popular music selections broadcast daily on the AM network and 40% on the FM service on a weekly basis would be Canadian. Its category 6 proposals remained unchanged.

The Commission has considered these proposals and, as with the French-language networks, has decided to impose minimum Canadian content levels more stringent than those proposed by the Corporation. In this regard, as discussed with the CBC at the hearing, the Commission notes that the number of musical selections falling into the Commission's popular music categories, is quite limited, particularly on weekdays. The addition of only a few Canadian selections could therefore immediately increase the Canadian content levels of both networks significantly.

The Commission has also taken note of the Corporation's proposed system for defining Canadian classical music selections; however, in measuring compliance with Canadian content requirements in the future, the Commission will continue to apply the definition of a Canadian musical composition set out in section 13 of the Radio Regulations, 1986.

While the Commission considers that the question of Canadian music in local programming periods is best addressed in the context of the licence renewals for individual CBC stations, it expects CBC owned-and-operated stations and affiliates to continue to exceed Canadian content commitments. It also expects that, at the time of licence renewal, local stations will make substantial commitments with respect to the programming of Canadian music in local periods with an eventual target level of 100% for popular music selections and that they will include in their programming selections by artists residing in the area served by the station.

ii) Canadian Talent Support

The Commission has noted that the CBC's support of Canadian talent manifests itself in a variety of activities and is greatly appreciated by Canada's cultural community. The Commission considers it of utmost importance that this record of achievement be maintained. It is, however, convinced that this is an area in which the Corporation can be even more effective.

The Commission notes that the Corporation is unique in that it operates national radio and television networks in both languages. At the hearing it questioned the Corporation as to the extent of its collaboration with English television in promoting Canadian musical talent and was informed that the television network features participants in radio's biennal National Young Performers Competition in an hour-long special. The CBC also indicated that it was "putting together a rather more focused package to promote all of our competitions" with a view to improving both the promotion of the event and the subsequent opportunities for exposure of the winners.

The Commission made the observation that private broadcasters and cable licensees have been tending more and more to maximize Canadian talent support through such co-operative efforts as regional talent contests and cross-media exposure and suggested that the CBC, by making use of its English and French radio and television services, in combination with its recording activities and through new initiatives with the private sector, could make an outstanding contribution in this regard.

In reply, the CBC stated that it was studying its promotion activities and undertook to provide the Commission with the details of this plan within six weeks of the hearing. The Commission notes that it has not yet received this information.

The Commission is concerned that the CBC has not taken sufficient advantage of the Canadian talent promotion potential associated with cross-media initiatives. Given the joint sponsorship of several talent competitions by the English and French radio services, it appears there is more co-operation across linguistic boundaries than there is, for example, between English radio and television. In the Commission's view, it is incumbent on the CBC to explore the use of all of its resources in a co-ordinated fashion so that new Canadian talent may benefit from the unique support only a multi-media corporation can provide. Certainly there is room for improvement in the follow-up to musical competitions and a talent development project with both radio and television components could be of inestimable value to aspiring Canadian artists.

The Commission has publicly expressed its view that collaborative efforts among broadcasters have great potential for stimulating the development of domestic talent. As set out in Chapter VIII, it expects the English-language networks to pursue all available avenues in an effort to diversify and strengthen their commitment to Canadian talent, including increased involvement with the private sector. In this regard, the Commission considers the successful collaboration of the CBC's French-language networks with ADISQ and Musicaction to be worthy of emulation.

iii) Regional Reflection

The Commission notes that regular weekly AM network programs now originate from seven regional production centres in addition to network headquarters in Toronto and that six regional centres provide complete programs to the FM networks. To date, however, neither Newfoundland nor northern Canada contributes complete programs to the weekly schedule of either network.

At the hearing, the Commission asked the Corporation if it had any plans to expand the number of regional centres which originate network programs. The CBC indicated that this is not something that is allocated on a regional or statistical basis. Instead, regional program producers suggest program ideas for consideration by the program director of the appropriate network and the best are put on the air.

Although the Commission recognizes the value of such a competitive process, it reminds the CBC of its special responsibility to reflect the various regions of Canada to the country as a whole. It therefore considers that the Corporation should expand the number of regional centres that provide complete programs to the network on either a regular or a rotational basis. In this way, all regions of Canada would be given an opportunity to express themselves to the entire country.

The Commission notes that many of the complete AM network programs originating with the regions do not in fact reflect their area of origination and that regional issues often receive better coverage through the program inserts and segments supplied to network magazine programs like Morningside and Sunday Morning. In Chapter VIII, the Commission will expect the AM network to include in its weekly schedule regular programs that reflect the issues and concerns of the various regions of Canada, again possibly on a rotating basis.

In its presentation at the hearing, the CBC had described the establishment of storefront operations in communities of 100,000 as a long-standing desire and a means of filling in "the geographic black holes" of its AM network. In practice, this would involve the assignment of a small news staff to a particular community with facilities to produce a few hours of regional news and information each week. The Corporation regarded this as a positive step in that it would provide "disenfranchised parts of the country [with] their own morning shows" and a chance to make contributions to the network. However, several interveners, including NABET, expressed concern that the CBC might be contemplating the downgrading of existing regional stations into storefront operations and that the service provided by originating centres to their respective regions would deteriorate.

The Commission notes that since the hearing the CBC has submitted applications proposing to restructure its radio operations in British Columbia. Among other things, they involve the establishment of a new undertaking in Victoria (873752000), a change of program source at Kelowna (873750400) and Prince George (873751200) and a change in the existing CBC station in Prince Rupert (873749600) to a storefront operation. These applications were heard at public hearings in Victoria and Prince Rupert beginning 7 and 10 March 1988, respectively. The Commission will examine the implications of the storefronting concept in its consideration of these applications.

At the hearing, the CAB stated that CBC's AM stations were placing increased emphasis on local programming, particularly in the areas of local news, sports, weather and traffic, all of which are staples of private radio programming and submitted that CBC radio should concentrate on the provision of national and regional service.

The Commission does not agree that the CBC should eliminate local surveillance information from its morning and late-afternoon programs when listeners expect such information. It notes, however, that such programs are generally broadcast over a wide area since originating stations often feed a network of rebroadcasting stations. The Commission is aware that, in some areas, the CBC provides a separate regionally-oriented feed of its morning show to outlying communities, for example, Ontario Morning, produced by CBC Toronto, and Daybreak from CBC Vancouver. In the absence of any such provision, and in view of the fact that the CBC is the only radio broadcaster able to speak to whole regions or provinces, it should ensure that regionally-directed programs address issues and provide coverage of matters relevant to the entire service area. If such presentations are totally preoccupied with the major urban centre from which the program originates, they cease to be of interest to listeners residing in outlying communities of the coverage area. The Commission will further address the matter of regional reflection in Chapter VIII.

The Commission also encourages the CBC to improve the reflection of the regions to themselves. In this regard, the Commission will assess the performance of the originating stations when their individual licences come up for renewal and further, will expect each originating station to describe exactly how it proposes to serve its entire coverage area, including plans to produce separate programs for distribution by rebroadcasting transmitters or to redeploy human resources to better cover the regions.

iv) News and Public Affairs Programming

The CBC, as a large national independent news-gathering organization which broadcasts to almost all Canadians, has an important obligation to provide fair and balanced news coverage. Indeed, the Corporation itself has recognized that the Canadian public looks to the CBC to embody the very highest standards of journalism.

As noted in the discussion of the French-language networks, the Corporation in 1982 published a comprehensive Journalistic Policy in which it set out exacting standards for its information programming.

The CBC indicated at the hearing that for the English network:

Our procedures for exercising editorial control and monitoring balance in our journalistic policy go far beyond the policy book. They encompass training, hiring and orientation practices; daily supervision and feedback and regular evaluation based on objective-setting.

Despite what it described as these "very rigorous journalistic policies and very high professional standards", the CBC acknowledged that it occasionally receives complaints from listeners with regard to journalistic bias and was "working on ways to improve the handling of complaints".

The Commission notes that in the context of this hearing, there were interveners who expressed serious concerns with respect to the English network's objectivity in news and public affairs programming.

The Commission recognizes that as a publicly-funded institution the CBC is the object of intense public scrutiny and high expectations. For this reason, it considers it imperative for the CBC to continue to ensure that its journalists are completely familiar with the provisions of the policy and its proper implementation. It is also important that the Corporation update the policy on a regular basis, monitor its programming to see that the provisions are being properly applied and periodically review both the adequacy and efficacy of the policy. As noted in the discussion of the French-language networks, the Commission invites the Corporation to consider the establishment of a fairness committee similar to the Journalistic Review Committee announced on 17 December 1987 in relation to its proposed English-language news and information cable specialty service as an appropriate means of protecting fairness in its radio news and public affairs programming and of dealing with complaints from the public.

v) Special Interest Programming

The CBC's legislated responsibility to be "a balanced service of information, enlightenment and entertainment for people of different ages, interests and tastes" compels it to take into account the needs of special and minority groups.

For many years, the Corporation aired the native interest program Our Native Land. However, as explained at the hearing, the Corporation's assessments showed that the program was not successful in informing general audiences about native issues and the program was discontinued during the current term of licence. A decision was made to assign a native affairs producer to develop material to be included in general interest programs. Similarly, the ethnic interest program, Identities, was cancelled and specific objectives for items dealing with multiculturalism were built into general interest public affairs programs.

At the hearing the CBC explained that:

We have always considered it an obligation, whether it is in native issues or multicultural issues, to deal with the specific issue of interest to that community but for a general audience.

The Commission acknowledges that the inclusion of special interest issues within the CBC's mainstream programming is valuable in disseminating the interests and concerns of special interest and minority groups to the widest possible audience and it is generally satisfied with the CBC's coverage of multicultural issues in its spoken word programming.

With respect to programming for native audiences, however, the Commission considers that Our Native Land provided a focal point for discussion among native Canadians, particularly those residing in southern Canada, and that there is a need for a program dedicated exclusively to native concerns. The Commission therefore, as set out later in the decision, expects the CBC to supplement its current efforts with a program focused on native issues and designed specifically to serve the needs of native Canadians.

The Commission also expects the CBC to continue to balance its representation of native and multicultural minorities in the programming of its radio networks in a manner that reflects realistically their participation in Canadian society and contributes to the elimination of negative stereotypes.

The Commission notes that at present the CBC does not target any programming specifically to youth or children and considers this to be another area in which the CBC, because of its mandate, should strengthen its efforts. The Commission finds it ironic that there is so little children's programming available on radio when Canada has spawned a number of excellent recording artists such as Sharon, Lois and Bram, Fred Penner, and Raffi who record exclusively for children.

At the hearing, it drew the Corporation's attention to the private sector's current initiatives in this regard and the Corporation expressed its willingness to work with other broadcasters or to pursue syndication opportunities. As set out later, the Commission expects the CBC to examine the development of programming for children and youth in the upcoming licence term and to report six months prior to the end of the licence term on its progress in this regard.

VII. OTHER MATTERS

1. Northern Service

As described by the Corporation at the hearing, the CBC's northern radio service serves most of the 90,000 residents "spread across one-third of the land mass of Canada, from the Yukon to Baffin Island." Northern Service production centres produce a total of 220 hours of regional programming each week for seven sub-regional networks, including 100 hours in seven aboriginal languages. Along with network programming, this regional production is distributed via satellite to 100 northern transmitters. In Arctic Quebec, where there are no CBC-owned transmitters, the Northern Service is made available via satellite to local community-owned rebroadcasting radio stations in five communities with populations of 500 or more. For other smaller towns in Northern Quebec without radio transmitters or satellite links, the CBC also operates a shortwave service out of Montreal.

The Commission notes that during the current licence term, the CBC has added a production centre at Rankin Inlet in the Eastern Arctic, expanded its Iqaluit facilities and established an Arctic Quebec bureau at Kuujjuaq. As indicated at the hearing, it has also appointed a Northern Service Training Co-ordinator to improve the level of training it offers in the North. In addition, the CBC has participated in the Commission's comprehensive review of northern native broadcasting which culminated in the establishment of a policy framework to improve access by native broadcasters to the Canadian broadcasting system (Public Notice CRTC 1985-274 dated 19 December 1985) and of an Action Committee to deal with problems of fair access (Public Notice CRTC 1986-75 dated 27 March 1986).

During the current term of licence, the radio component of the Northern Service has contributed programming to such mainstream network presentations as The Entertainers, Sunday Morning and Au gré de la fantaisie. It has also covered major special events such as territorial elections, the 1984 First Ministers' Conference on Aboriginal Rights, the Arctic Winter Games, the 10th Anniversary of the James Bay Agreement and the Pope's visit to Fort Simpson. Since 1978, moreover, it has produced some 27 recordings of northern musicians and singers for broadcast use. The Commission notes, however, that the Northern Service has sustained budget cuts in the order of $630,000 over the past three years. These cuts have resulted in the loss of seven staff positions and in certain programming changes, including an increase in automated hours at some northern stations and a decrease in the number of special broadcasts and broadcast recordings.

The Commission received more than twenty interventions dealing with northern broadcasting concerns. Of these, a number enthusiastically endorsed the Western Arctic radio service, emphasizing the vital surveillance function it performs. Others feared a possible erosion of northern radio service as a result of continuing CBC budget cuts. In this regard, the Yukon Government asked specifically that the amount of local programming originating from Whitehorse for Yukon audiences be maintained, stressing the critical importance of the Northern Service to the Yukon. The James Bay Cree Communications Society drew attention to unserved communities in Arctic Quebec and raised access concerns. The Native Communications Society -Northern Broadcasting (NCS-NB) of British Columbia, the Wawatay Native Communications Society in northern Ontario and the Société de Communication Atikamekw-Montagnais, on behalf of native communities in Quebec and Labrador, expressed concerns related to the limited amount of time available on CBC transmitters for native programming. The NCS-NB also asked that the CBC permit the use of its existing Prince Rupert technical facilities for the transmission of NCS-NB's pre-recorded programs to CFRO-FM Vancouver and other stations in B.C.'s lower mainland wishing to distribute native programming. This intervener appeared at the hearing to discuss its concerns with the Commission.

At the hearing, the Commission alluded to its recent comprehensive review of northern broadcasting and focused its discussions with the CBC on access concerns and the related matter of distribution, with particular emphasis on the radio distribution potential associated with the Television Northern Canada project (TVNC) now under consideration by the Department of Communications.

The TVNC proposal envisages a new television service to be delivered to receiving stations in the Yukon, the Northwest Territories and Inuit communities in Arctic Quebec and northern Labrador via a dedicated transponder shared by member organizations. While TVNC's primary objective is the distribution of television programming produced by native broadcasters and the two territorial governments, as well as other programming relevant to northern residents, the Commission notes that the use of audio channels to distribute the radio programming of the CBC and the Northern Native Broadcast Access Program to the North and mid-Canada would also be a possibility. At the hearing, the CBC indicated its support, in principle, of the proposal and, after some discussion with the Commission, stated: "We will play the co-ordination role. We will be supportive in any way we can."

In response to the NCS-NB intervention, the Director of CBC Northern Services, Mr. Brian Cousins, indicated at the hearing that the CBC was "prepared to re-examine the possibility of using our program lines to feed the society's programs to Vancouver where they are broadcast by Co-op radio [CFRO-FM]" and agreed to participate in the Commission's Native Access Action Committee to deal with the intervener's concerns.

At a meeting of the CRTC Action Committee on 14 December 1987, the CBC and NCS-NB discussed the use of technical facilities and agreed in principle to resolve problems related to local access. Subsequent to the hearing, the CBC also submitted applications to the Commission proposing a reconfiguration of its program services in British Columbia and including provisions for improved local access for native groups. As noted previously, these applications were heard by the Commission at public hearings in Victoria and Prince Rupert, British Columbia on 7 and 10 March 1988.

Consistent with the discussion at the October 1987 hearing, the Commission expects the CBC to take a leadership role in promoting the implementation of TVNC and to keep the Commission informed of its progress in this regard. In the Commission's view, the realization of a fully dedicated northern satellite transponder which would provide sub-carriers for the transmission of radio signals plus the establishment of low-cost receiving stations, where required, represents an economical solution to current access and distribution problems which are particularly acute in mid-Canada.

With regard to those communities in Arctic Quebec still lacking CBC facilities, the Commission expects the Corporation to make every effort to extend service in English and in French as soon as possible. The Commission draws the Corporation's attention to the fact that such extension could be achieved at a relatively low cost.

In Decision CRTC 87-140, the Commission stated the CBC has a special obligation to foster and protect the unique lifestyles, cultures and sense of community that exist in northern Canada through the provision of culturally-appropriate programming. It noted further that "it is the CBC that can most readily meet most of the radio and television distribution requirements of the native broadcasting societies." To enable the CBC to continue to fulfill its unique responsibilities, including the extension of service to Arctic Quebec, the Commission considers it appropriate at this time to reiterate its recommendation that the Government allocate a special and separate budgetary appropriation for the Northern Service.

2. Sex-Role Stereotyping

In December 1979, the CBC published a policy statement entitled "Portrayal of Women in CBC Programming" wherein it accepted as part of its mandate "the need to reflect in its programming the role of women in Canadian society". Also in 1979, the Corporation established the Office of the Portrayal of Women to ensure the dissemination and implementation of its policies in this regard and developed a set of non-sexist language guidelines.

During the current term of licence, the CBC has participated in the Commission's examination of sex-role stereotyping and self-regulation by the broadcast industry which culminated in the Commission's own policy statement on this matter (Public Notice CRTC 1986-351 dated 22 December 1986). In its notice, the Commission expected the Corporation to show leadership "in providing a more equal reflection and a better portrayal of women in the media" given the CBC's pre-eminent position in the Canadian broadcasting system.

Mme Madeleine Champagne of the CBC's Office of the Portrayal of women summarized the Corporation's efforts, in this regard at the October 1987 hearing. Among other things, she noted that, according to CBC studies, 30% of the announcers on the French-language AM service and 40% on FM were women. She also stated that, at the time of the hearing, women accounted for 38% of French-language journalists and for more than 50% of the French-language network's classical music program hosts. As for the English-language services, the Corporation's figures suggest that the proportion of female announcers had increased from 16% to 33%.

The CBC stated further that the number of females interviewed on the French-language radio services was increasing. Mme Champagne also referred to the Corporation's establishment of specific programming objectives whereby, for example, women were to account for at least one-third of the guests on the English-language AM network's local and regional morning shows by October 1987 and at least one of the regular co-host positions of such programs would be staffed by a women by March 1988.

The Commission reviewed with the Corporation its methods of handling complaints and was informed that most complaints related to sex-role stereotyping are dealt with by the Office of the Portrayal of Women and brought to the attention of the person directly responsible for the programming in question. The Corporation also indicated that complaints addressed to the President of the CBC or to heads of programming departments are handled by the addressee, again in consultation with any staff member involved.

Looking to the future, the Corporation stated that it expects to achieve on-air parity between men and women "before four or five years" and to strengthen the role of women in its English news services and in both the English and French sports departments. The CBC also described plans to undertake a content analysis of radio in 1988/89 which will cover sex-role stereotyping, equity in employment and visible minorities.

As discussed at the hearing, the Commission intends to impose the same condition of licence relative to sex-role stereotyping on the CBC's radio networks as those imposed on the television networks in Decision CRTC 87-140.

The Commission also fully expects the CBC to continue to abide by the expectations set out in Public Notice CRTC 1986-351. Specifically, because of its size, importance and special role in the Canadian broadcasting system, the CRTC expects the CBC to show leadership "in providing a more equal reflection and a better portrayal of women in the media." Future studies on the subject of sex-role stereotyping are to be released to the public in their complete form, and the Corporation's "inclusive-language guidelines" are to be sent to all CBC owned-and-operated stations and to its private affiliated stations. The Commission also expects the Corporation to review its complaints procedures with respect to programming and commercials and submit reports every six months on the disposition of any relevant complaints. The CBC is also to review its current sex-role stereotyping guidelines and submit a report to the Commission. Further, it is to meet with the Commission and report on an annual basis (at the time it submits its annual financial returns) on its "efforts to eliminate sex-role stereotyping both on- and off-air, with the knowledge that these reports will be placed on the public file".

3. Radio Canada International

Radio Canada International (RCI) is the voice of Canada abroad. Pursuant to its mandate, as redefined in 1980, its primary responsibility is the provision of a program service designed to attract an international audience with the purpose of further developing international awareness of Canada and the Canadian identity by distributing, through shortwave radio and other means, programs that reflect Canadian life and culture, Canada's national interests and policies and the spectrum of Canadian viewpoints on national and international affairs. Secondarily, it is charged with broadcasting to Canadians abroad.

The Commission notes that while the policies of Department of External Affairs form the basis for decisions on RCI target and language priorities, its programming and editorial policies are wholly the responsibility of the CBC.

At the present time, RCI broadcasts daily via shortwave in twelve languages, including English and French, to audiences in the United States and Latin America, Eastern and Western Europe, Africa, the Caribbean, and parts of Asia, the Middle East and the Pacific Rim. To maximize its reach, RCI has been actively involved in international negotiations for relay exchange, gaining access to the transmitters of the BBC and Deutsche Welle in Europe, for example, in return for the use of its short-wave transmitters at Sackville, New Brunswick.

RCI's shortwave service is supplemented by a transcription service which makes recordings of Canadian music, radio drama, documentaries and other spoken word material available to foreign broadcasters, universities and other organizations.

In addition, since 1978, RCI has been preparing and distributing a comprehensive anthology of Canadian music. Each volume of this authology consists of a multi-record compilation of the works of a Canadian composer, along with interviews and background material. At the time of the public hearing, RCI indicated that 31 of the projected 40 volumes had been issued and that it expected to complete the project within two years. Among the composers featured to date have been R. Murray Schafer, Barbara Pentland and André Prévost.

At the hearing, the CBC explained that RCI's operating budget for 1987/88 was $17.9 million, which includes $4.3 million worth of services provided annually by the French networks in the form of programming resources such as studio facilities, personnel and record libraries. The Corporation also indicated that the revenues generated by RCI over the next five years are expected to be fairly small, in the order of $15,000 annually, and clarified that the revenues of $500,000 in the fiscal year 1987/88 were an anomaly based on a one-time agreement by Japanese broadcasters for the use of RCI's transmitters.

The Commission notes that over the next five years RCI's operating budget is expected to increase only slightly. Nevertheless, "because of successful negotiations with other broadcasters, and because of plans for redirection of resources and also because the funds required are relatively small", RCI anticipates being able to implement some of the priorities it has worked out for the next few years with the Department of External Affairs. Specifically, it expects to inaugurate service to the Pacific Rim in Japanese, English and French and to Soviet Asia in Ukrainian and Russian by April 1988 and a service to China in 1991. Longer term objectives are the provision of a complete Pacific Rim service that would include India and an Arabic service in the Middle East; however, these projects are contingent on additional funding.

The Commission acknowledges the valuable service performed by RCI in disseminating Canadian culture and points of view to the rest of the world. It has also been impressed by RCI's exploration of alternatives such as relay exchange in order to extend its service within the context of financial constraints.

The Commission considers it appropriate at this time to reiterate the recommendation contained in the licence renewal decision of 1979, that Parliament should consider assigning a specific budget to RCI. It is the Commission's view that a separate appropriation would ensure adequate funding for RCI and preclude any negative economic impact on the domestic services.

It is, however, the CBC's domestic radio services that are the Commission's paramount concern. While reluctant to discourage RCI from taking steps to improve its reach, the Commission considers it inappropriate for the Corporation to underwrite any further extension of RCI's service from its existing budget until the priorities established by the Commission for the extension of service to Canadians during the new licence term, as set out later in this decision, have been fulfilled.

4. CBC Enterprises

CBC Enterprises, the Corporation's marketing and promotional division, was established in 1983 to consolidate and co-ordinate all of the CBC's merchandising activities. Its primary function is the distribution and sale of radio and television programs to other broadcasters, pay television and cable operators in Canada and internationally. It also markets a number of consumer products, including records and tapes, videocassettes, transcriptions, books, publications and other items ranging from clothes and toys to coffee mugs. In addition to these "for profit" activities, CBC Enterprises administers the Corporation's "further use" budget with a mandate to make programs, program materials and transcripts of cultural and educational interest available for use in schools, libraries and other institutions.

In Decision CRTC 87-140, the Commission stated:

In light of current financial constraints, and assuming that CBC Enterprises is a profitable venture, the Commission considers it appropriate for the Corporation to take advantage of all the sources of revenue available to it ...

Subsequent to the release of that decision, on 7 May 1987 the CBC appeared before the House of Commons Standing Committee on Culture and Communications. Responding to allegations that CBC Enterprises was clearly not "a profitable venture" inasmuch as it had suffered significant losses over recent years, the CBC conceded that the division would probably record a loss for the 1986/87 fiscal year.

At the October 1987 hearing, the Commission questioned CBC closely on the status of CBC Enterprises in order to ascertain the impact of possible financial difficulties on the total funds available to the Corporation.

The CBC indicated that the unit was expected to generate revenues equal to its expenditures, but that this was "not a realistic goal at the moment and that is why we are re-examining it". In this regard, it stated that its Board of Directors, at the end of October 1987, would be asked to approve "a much clearer mandate for the unit". Subsequent to the hearing, the Corporation filed with the Commission a copy of CBC Enterprises' revised mandate.

The CBC also informed the Commission that the division's shortfalls would be taken out of the Corporation's operating funds. In future, the CBC expected that those activities "which might contribute to a deficit or an operating expense" would likely be allocated directly to the relevant programming department. The Commission notes that since the hearing the Corporation has sold the publication rights of the Radio Guide, which it described as "a heavily-subsidized activity", to Core Group Publications Inc. of Vancouver.

The Commission acknowledges that the marketing of Canadian programs and recordings, as well as CBC Enterprises' non-profit activities, are consistent with the Corporation's role outlined above as a public service institution and promoter of Canadian culture. It does not, however, consider it acceptable or appropriate for the CBC to engage in merchandising activities that are outside of its cultural mandate and could ultimately become a financial liability.

The Commission therefore urges the Corporation to ensure that the products it markets are clearly compatible with its legislated mandate in order to avoid any drain of funds that would otherwise be available for the fulfillment of the expectations established for the Corporation during the coming term of licence.

VIII. THE COMMISSION'S DECISION: TERMS AND CONDITIONS TO BE MET DURING THE NEW LICENCE TERM

As noted earlier, the Commission was disappointed that the Corporation's submission did not provide detailed plans for the upcoming licence term. Such priorities as were provided by the CBC in its initial presentation tended to be expressed in vague, rather general, terms. Most were contingent on additional future funding and rarely was a specific timetable given for the realization of the proposals. Indeed, by not being more precise concerning various possible scenarios based on different funding assumptions, the CBC avoided establishing a considered order of priorities, which will be required whatever the outcome of its pressing requests for further funding.

A review of the CBC's future priorities should have been the most important consideration for discussion at the renewal hearing before the commencement of a new licence term. As this did not take place, the Commission was compelled to ask repeatedly for prioritized lists of initiatives to be undertaken by the English- and French-language radio services. The CBC complied with the request, but not until nearly the end of the hearing, specifically at the conclusion of the Commission's questions on the details of the CBC's submission.

The Corporation submitted four priorities for the English-language service for the new licence term: to maintain existing levels of service; to make improvements through redirection of funds; to restore resources which have been lost over the past three years; and to undertake further incremental activities. The Corporation stated that the first two priorities were contingent upon the continuation of current funding levels while the other two would require further funding. Under each priority, a number of specific initiatives were listed, including: the continuation of operations in all existing locations, and maintaining a decentralized system with the majority of programming originating in the regions; increased Canadian content in popular and classical music as outlined in the Promises of Performance, the continuation or augmentation of the commissioning of musical works and expanded recording activities, the introduction of new special interest programs as appropriate; a return to previous budgetary and staffing levels in major program areas, more freelancers and stringers at national and regional levels, improved promotion of programs and services, fewer repeats, and more original documentaries; resumption of ACP and affiliate replacement projects, extension of the stereo network to population centres of 40,000 or more, the opening of journalistic storefront bureaus in communities of 100,000 and more, and an exploration of avenues for increased co-operation with the private sector.

The French-language service compiled a list of seventeen priorities, all of which are contingent on funding sufficient to maintain its current buying power. They are: to increase the Canadian content level on AM to 40% beginning in autumn 1988, achieving a level of 50% over the following four years; to commission more Canadian musical compositions; to increase commissioned Canadian musical works and the broadcast of original productions within cultural spoken word programming; to increase the proportion of original dramatic works by 50%; to improve service to Sherbrooke, Trois-Rivières and Rouyn; to offer a 24-hour-a-day AM service; to increase the production of classical and jazz albums by 25%; to improve the information service of regional stations; to increase coverage of the stereo network; to improve the on-air representation of women and minorities; to preserve the integrity of its complementary AM and FM networks; to strengthen its news programming, particularly on the FM service; to cater to diverse audiences and tastes; to increase the number of public concerts; to highlight Canadian talent; to maintain all of its regional stations; and to keep abreast of technological developments.

Even considering the difficulties arising from the CBC's funding uncertainties, the Commission is not satisfied that the responses and commitments it has received are adequate. The Corporation was only able to provide precise operational financial information for the next three years, and the projections it did provide could be subject to further revisions as the Corporation's Parliamentary allocations are voted annually. In addition to the vagueness of some of the commitments and the absence of a specific timetable for the implementation of others, the lists of conditional priorities - on which each item was termed a priority rather than being a prioritized list of commitments - do not address some serious concerns raised during the public hearing process nor do they address situations in which the conditions attached to the realization of these initiatives do not materialize.

In the absence of specific plans and an adequate listing of priorities, the Commission has determined that the granting of a full licence term would be inappropriate. Accordingly, it renews the licences of the French and English AM and FM networks of the CBC for a three-year period from 1 April 1988 to 31 March 1991.

The Commission is satisfied that this will allow the Corporation sufficient time to come up with concrete plans for the future development of the national radio broadcasting services. Within the three-year licence term, the Corporation should also be provided with more information as to the level of funding it can assume. If, for any reason, the uncertainties relating to the funding of the radio networks persist, the Corporation will be expected to present different scenarios, with appropriate priorities substantiated by the underlying implications, in order that a comprehensive and informed public examination of the future development of the CBC's radio services can take place.

The Commission wishes to emphasize that the length of the licence term is not to be construed as an indication of any overall dissatisfaction with respect to the past or present performance of the CBC's radio services. On the contrary, the Commission has made it clear in the preceding chapters that the CBC's four radio networks have made enormous contributions and have constantly endeavoured to raise the quality of Canada's radio broadcasting system.

However, because of the vagueness and imprecision referred to above, the fact that some critical concerns were not adequately addressed, and in the absence of specific scenarios, the Commission has undertaken to establish what should be achieved during the upcoming licence term in terms of extension of service and with respect to each of the four network radio services.

The Commission considers the realization of all of these initiatives to be necessary to the CBC's achievement of the demanding objectives established for it by the existing Broadcasting Act. In order to accomplish them, the Corporation must receive the Government's continued and strong support.

Given the continuing financial uncertainty in which the CBC's radio services are expected to function, the Commission also urges the Government to clarify its position with respect to the funding of the national broadcasting service without delay.

In its decision renewing the CBC's television network licences (Decision CRTC 87-140 dated 23 February 1987), the Commission stated that:

unless and until the mandate of the national broadcasting service is changed, the government should assure itself that the CBC has sufficient funds to enable the Corporation to fulfill the objectives set out for it in the Broadcasting Act. Given the exigencies of the Act, the significance of the CBC within the Canadian broadcasting system, and the high expectations the Canadian public has for the CBC, the Commission considers this a matter of urgent priority.

The conclusion to that decision also stated:

Should Parliament deem, however, that the existing legislation has set out demands and obligations for the CBC that are beyond the CBC's current level of financing, it must seriously consider if it should reduce its expectations as to the level and quality of service the Corporation is currently mandated to deliver and that the Commission is, at present, mandated to expect of the national public broadcaster.

The Commission has taken care not to impose unreasonable demands upon the CBC for the upcoming licence term. While some of the measures outlined below, particularly those related to extension of service goals, may require additional funds beyond those currently committed by the CBC, many of the others can be undertaken at little or no additional cost. Also, given the production characteristics of the radio medium as compared to television, the Commission is convinced that these programming initiatives can be accomplished within a reasonably short period of time.

The Commission intends to review the CBC's achievement of the expectations set out below, which have been established in order of priority, at the time of the next renewal hearing. For the sake of consistency, the expectations respecting Canadian content for each network service are phrased as conditions of licence.

a) Extension of Service

Earlier in this decision the extent of the CBC's radio coverage and the gaps in that service have been described. The Commission finds it totally unacceptable that the Corporation has been unable to make any immediate provision for the extension of its radio services. In assessing the means by which this aspect of its mandate can be accomplished, the Commission has been mindful of the relative cost in terms of the additional coverage that can be achieved. It has also taken into consideration the Corporation's stated extension goals in terms of target communities and expressions of public demand.

The Commission has developed six priorities for expanding CBC radio coverage. While not all of them can be fully accomplished in the new three-year licence term, the Commission fully expects that the Corporation will have implemented the first three within that period and that it will have initiated some action on each of the others.

The Commission views with great concern the failure of the Corporation to complete those extension projects for which the CBC had applied and Commission authority has already been granted. Approval of these applications has resulted in expectations on the part of residents of these communities that CBC radio service would become available within a resonable amount of time. The CBC's failure to implement has created frustration and disappointment. This situation also runs counter to the Commission's policy of granting a licence only when an applicant has shown that it has in place adequate finances to establish and operate the undertaking for which it has applied. Accordingly,

1. the Commission expects the CBC to implement the outstanding 19 radio projects already authorized by the Commission (as set out in the Appendix to this decision) within the three-year renewal term. As a first step, the CBC is required to submit a report within six months of the date of this decision commenting on the status of each proposal and providing a timetable for implementation.

The Commission has expressed its concern about the inequities in FM radio coverage. It considers this situation to be only partly mitigated by the hybrid services available in certain communities and reminds the CBC that it should make every effort to provide full radio service to as many Canadians as possible.

With respect to the Corporation's comments at the hearing on the potential for extending its FM coverage by means of cable, the Commission notes that existing regulations require the carriage of only one CBC radio service in each language. Nevertheless, the CRTC is convinced that, as an interim solution, its cable licensees would be willing to co-operate with the CBC to make available to their subscribers CBC FM services in those communities where public demand for the service is expressed.

The Commission has assessed how the distribution of the CBC's FM services could be improved so as to provide increased coverage for the largest number of listeners in the appropriate language at minimal cost. By establishing four new stations to provide the English-language FM service in Stephenville and Marystown, Nfld., Charlottetown, P.E.I., and Victoria, B.C., and three stations to provide the French-language FM service in Toronto, Ontario and Campbellton and Allardville, New Brunswick, approximately 350,000 additional Anglophones and 185,000 additional Francophones would be served. Assuming a cost of $200,000 to $400,000 per station, the total capital cost of this extension of FM service would be less than $2 million. At the same time, those provinces in which CBC FM is presently least available would enjoy considerable improvement in coverage.

Further, the Commission has calculated that if the CBC were to extend FM service to 50% of the population of each province in the appropriate language, it would, at the same time, achieve the goal of 75% coverage of the total Canadian population. The Commission does not consider this to be an unrealistic goal for the upcoming licence term.

2. The Commission expects the CBC to extend its English and French stereo (FM) services to at least 75% of the Canadian population in each language and to at least 50% of the population in each province in each language.

With respect to the extension of AM, the Commission has expressed its concern that as many Canadians as possible should receive the basic national radio services. Inasmuch as there continues to be uncertainty as to the availability of capital funds for this purpose, the Comission is of the view that it cannot make undue demands upon the CBC at this time with respect to the provision of CBC AM service for the remaining designated underserved communities which represent less than 1% of the French-and English-speaking population. Nevertheless, in parallel with its expectations as to the extension of the CBC's television networks, the Commission calls upon the Corporation to undertake a study on the implications of extending service to communities with a population lower than the ACP base figure.

3. The Commission expects the CBC to undertake a study and submit a report within eighteen months of the date of this decision on the implications of extending basic (AM) radio service to communities with a population of between 200 and 500.

It should be noted that at present, a significant number of Canadians (2% of Anglophones and 7% of Francophones) still receive a portion of the CBC AM radio service through private radio stations affiliated with the Corporation. Many of these affiliates provide as little as 25 hours per week of CBC programming.

While many of the remaining private stations are satisfied with their affiliation arrangements, others might wish to terminate the agreements and pursue independent broadcasting opportunities. If disaffiliation were to occur, the Corporation would have to either establish an owned-and-operated station or a rebroadcasting transmitter to replace the CBC coverage provided by the affiliate.

The Commission is of the view that the eventual replacement of the remaining private affiliated stations is in the public interest, since as many Canadians as possible should be able to receive the full English and French AM CBC services. Although the Radio Affiliate Replacement Plan was suspended in 1985 for lack of funds, the Commission considers that in those cases where an affiliate wishes to disaffiliate, the CBC ought to give high priority to ensuring replacement CBC coverage.

4. The Commission expects the CBC to provide replacement coverage in any community in which a private affiliated station wishes to disaffiliate. The Commission encourages the eventual replacement of all affiliates.

The Commission considers that, in view of the changing technological environment since the commencement of the ACP in 1974 and the fact that CBC radio services are distributed via satellite to communities across the country, each community of at least 200 persons is entitled to receive basic CBC radio service. As stated above, however, in view of funding uncertainties, the Commission cannot require the CBC at this time to complete the outstanding projects anticipated under the Accelerated Coverage Plan or to extend immediately the parameters of the ACP's extension criteria.

5. The Commission expects the CBC, as funds become available, to complete the remaining radio projects anticipated under the ACP.

As a means of furthering the goal of making available the full national radio broadcasting service in each language, the Commission considers it reasonable over the longer term for the CBC to extend the reach of its stereo (FM) services beyond the 50% in each language in each province that has been stipulated as a priority to be achieved within the new licence term.

6. The Commission expects the CBC to extend its English and French stereo (FM) services at least to 75% of the population of each province in each language.

b) The French-language Networks

The Commission has set out a series of expectations that it considers attainable by the Corporation in the course of the next licence term. There are seven priorities for the AM service and six for the FM service.

AM service

News and Information programming

The Commission earlier noted the high quality of the Corporation's information and public affairs programs and their importance in the broadcast schedule.

1a) The Commission expects the CBC, as a minimum, to maintain the existing level and quality of its news, public affairs and other information programming.

The Commission also noted the fact that in the summer of 1987 a task force was created to study methods of further improving the quality of the CBC's information programming, particularly with respect to the level of news and public affairs. In order to be assured that the Corporation will follow up on the report that was submitted by the task force,

1b) the Commission expects the CBC to advise it of the results of the task force on information and its plans for maintaining and improving its news and information services within eighteen months of the date of this decision.

2. The Commission expects the CBC to update periodically its journalistic policy and ensure that all new staff receive adequate training and orientation as to the requirements of the policy. It should also review regularly both the adequacy of the policy's provisions and its effectiveness.

French-language Vocal Music

Earlier in this decision, the Commission congratulated the Corporation for showing leadership in adopting a policy of broadcasting popular vocal music exclusively in the French language on its AM network. In view of the country-wide distribution of the Corporation's programs and the unique impact this can have in stimulating French-language vocal music:

3. the Commission expects the CBC to maintain its policy of ensuring that the category 5 vocal musical selections broadcast on the AM network are in the French-language.

Canadian Music

During the hearing, the Commission also stressed the presentation of Canadian music on the French-language networks, bearing in mind the leadership role the Corporation is expected to assume in this area, the unique role it is expected to perform in promoting Canadian talent, and its national infrastructure, which provides Canadian artists with an unparalleled opportunity for nation-wide exposure.

At the hearing, the Corporation undertook to increase Canadian content on the AM network from 30% to 40% beginning in the fall of 1988 and increasing to 50% during the next four years. The Commission pointed out, however, that these commitments represent in fact a very small increase in the number of Canadian musical compositions broadcast each day, since the AM network's programming largely consists of spoken word material. The Commission therefore considers that the CBC can easily achieve these commitments within a shorter time frame. In addition, the Commission strongly urges the CBC to aim at an eventual target level of 100% Canadian content for category 5 selections.

4. It is a condition of licence that starting 1 April 1988, 40% or more of the category 5 musical selections broadcast on the AM network each broadcast day be Canadian and that these selections be distributed in a reasonable manner throughout the broadcast day. It is a further condition of licence that this level be increased to 45% or more starting 1 April 1989 and to 50% or more starting 1 April 1990.

It is also a condition of licence that starting 1 April 1988, 15% or more of the category 6 selections broadcast on the AM network each broadcast week be Canadian and that these selections be scheduled in a reasonable manner throughout the broadcast week and that this level be increased to 20% or more starting 1 April 1990.

In this respect, the Commission will expect that the renewal applications of each CBC owned-and-operated AM radio station will reflect these Canadian content levels.

Regional Reflection

In view of the distinctive features of the French-language network and the strong concentration of its audience in the province of Quebec, particularly in the metropolitan Montreal area, the programs it offers must reflect the interests and concerns of listeners in the various regions it serves across the country while providing a radio service that is of interest to the audience as a whole. As noted earlier, the problem is twofold: in Quebec, entire regions, such as the Mauricie, the Eastern Townships, James Bay, the Beauce and the Outaouais are served out of Montreal, Quebec City or Ottawa, while across the country Francophones living outside Quebec complain that network programs are too much oriented toward the province of Quebec.

5a) The Commission expects the CBC to ensure that its network programs more accurately reflect the different regions of the country.

5b) The Commission expects the CBC to undertake a study on the broadcasting needs of Francophones outside Quebec and to submit to the Commission a report and plan of action within eighteen months of the date of this decision.

Canadian Talent Development

While acknowledging the CBC's considerable achievements in Canadian talent support, the Commission also expects the national broadcasting service to be predominantly Canadian in content and character and urges the CBC to exhibit special resourcefulness in order to maximize the opportunities available to Canadian artists.

6a) The Commission expects the CBC to maintain the current level and quality of support for the development of French-language Canadian musical talent.

Further, the Commission considers that if the CBC were to make better use of all of its media services, it would be able to increase considerably the impact of its activities for the benefit of Canadian talent in terms of contests, concert broadcasts and promotion.

6b) The Commission expects the CBC to report within six months of the date of this decision on its plans to diversify and strengthen its support for Canadian talent, using the resources and opportunities afforded by its French-and English-language television and its AM and FM radio networks.

6c) The Commission also expects the CBC to ensure better on-air follow-up of its efforts to develop Canadian musical talent.

The Commission has already indicated that the pooling of the resources of the private broadcasting sector in recent years has given new impetus to French-language vocal music. It is of the opinion that more co-operation between the Corporation and the private sector in this regard could be very beneficial in many areas, including events which have common objectives, such as La Semaine de la chanson française d'ici, which is organized by private broadcasters in Quebec, and Juillet de la chanson française, which is organized by the Corporation in conjunction with francophone broadcasters from France, Belgium and Switzerland.

6d) The Commission expects the CBC to increase its co-operation with the private broadcasting sector in order to devise joint projects to develop Canadian musical talent.

Programs for Children and Youth

The Commission referred earlier to the lack of programs for children and youth on the CBC's French-language AM network and noted the Corporation's statements to the effect that its efforts in this area have not been successful. The Commission nevertheless considers that the Corporation must, in response to the requirements of its current mandate, demonstrate initiative and imagination in this area if it is to generate interest in public radio among young people and attract new listeners.

7. The Commission expects the CBC to examine the possibility of developing programs designed to appeal specifically to children and youth, including co-operative ventures with the private sector, and to report on the results of its efforts at least six months prior to the end of the new licence term.

FM service

Canadian Music

1. It is a condition of licence that starting 1 April 1988, 40% or more of the category 5 musical selections broadcast on the FM network each broadcast week be Canadian and that these selections be distributed in a reasonable manner throughout the broadcast week. It is a further condition of licence that this level be increased to 45% or more starting 1 April 1989 and to 50% or more starting 1 April 1990.

The Corporation made a commitment in its renewal application that 7% of all category 6 musical compositions broadcast would be Canadian, and that it intended to increase its commissioning of new Canadian musical works from twelve to fifteen a year, which would help to raise its Canadian content level to 15%. As the Commission's analyses show that the Corporation has already passed the 15% mark,

it is also a condition of licence that starting 1 April 1988, 15% or more of the category 6 selections broadcast on the FM network each broadcast week be Canadian that these selections be scheduled in a reasonable manner throughout the broadcast week and that this level be increased to 20% or more starting 1 April 1990.

In this respect, the Commission will expect that the renewal applications of each CBC owned-and-operated FM radio station will reflect these Canadian content levels.

Live Concert Broadcasts

Music programming on the CBC's French FM network is based primarily on broadcasts of live concerts and recorded classical music. As indicated earlier in this decision, the Corporation plans to enhance its flexibility with regard to concert recordings by providing the FM network with new equipment, including a mobile unit with an on-site satellite link.

2. The Commission expects the CBC to increase the number of live classical music concerts broadcast on the French FM network from the current level of 15 hours per week.

News

Earlier, the Commission expressed concern about the fact that very little news is broadcast on the CBC's French-language FM network, and that there is no news at all during long periods of the broadcast day. The Commission is of the view that the Corporation could easily fill this gap in its French-language FM network and notes that at the hearing the Corporation indicated its willingness to examine this issue.

3. The Commission expects the CBC to increase news broadcasts on the French-language FM network from 2 hours 54 minutes proposed in the Promise of Performance to 8 hours a week during the term of the licence and to ensure a reasonable and balanced distribution of news over all periods of the day, including the afternoon and evening.

Spoken Word Content

The Corporation pointed out at the hearing that its efforts in the past few years with regard to spoken word programming on the FM network have focused on the expansion of cultural programming. In accordance with the CBC's own priorities,

4. the Commission expects the CBC to increase the number of original productions of spoken word cultural programs from the current level of 12 hours per week.

While indicating that it has had to reduce the amount of drama on the FM network, the Corporation stated that a 50% increase in this area was a priority.

5. The Commission expects the CBC to attain its objective of a 50% increase in original dramatic productions on its FM network during the term of this licence, from the current level of one hour per week.

Commissioning of Canadian Musical Works

As part of its efforts to develop Canadian talent, the Corporation stated at the hearing that increasing its commissioning of musical works by Canadian composers was a priority for its FM networks.

6. The Commission expects the CBC's FM networks to increase their commissions of Canadian musical works to a level of 15 a year.

c) The English-Language Networks

The CBC's stated intention for its radio service over the new term of licence is to maintain and if possible improve the quality of service it offers to Canadians. With this in mind, the Commission has formulated seven priorities for the English-language AM network and three for the FM service.

AM Radio

News and Information Programming

Given the Corporation's mandate to be a balanced, national public service and the noticeable effects of funding cuts in certain programming areas, the Commission considers it essential that the current high standards of information programming be maintained. Should the CBC contemplate further program modifications based on financial constraints, the Commission expects it to protect its tradition of excellence. Accordingly,

1. the Commission expects the CBC, as a minimum, to maintain the existing level and quality of its news, public affairs and other information programming.

2. The Commission expects the CBC to update periodically its journalistic policy and ensure that all new staff receive adequate training and orientation as to the requirements of the policy. It should also review regularly both the adequacy of the policy's provisions and its effectiveness.

Canadian Music

In arriving at its Canadian content requirements, the Commission has borne in mind the Corporation's mandate to be predominantly Canadian in content and character and the fundamental importance of Canadian programming on the national broadcasting service. Given the availability of Canadian product, the relative quickness with which radio can effect programming changes and the very few selections required to raise the Canadian content level, it is the Commission's view that the CBC can easily fulfill the requirements set out below. The Commission strongly urges the Corporation to aim at an eventual target level of 100% Canadian content for category 5 selections.

3. It is a condition of licence that starting 1 April 1988, 40% or more of the category 5 musical selections broadcast on the AM network each broadcast day be Canadian and that these selections be distributed in a reasonable manner throughout the broadcast day. It is a further condition of licence that this level be increased to 45% or more starting 1 April 1989 and to 50% or more starting 1 April 1990.

It is also a condition of licence that starting 1 April 1988, 15% or more of the category 6 selections broadcast on the AM network each broadcast week be Canadian and that these selections be scheduled in a reasonable manner throughout the broadcast week and that this level be increased to 20% or more starting 1 April 1990.

In this respect, the Commission will expect that the renewal applications of each CBC owned-and-operated AM radio station will reflect these Canadian content levels.

Regional Reflection

Parliament has specified a particular role for the national broadcasting service in terms of regional reflection. In its decision renewing the television network licences, the Commission acknowledged that this task is by no means an easy one and it commends the radio service for its achievements in this regard. Consistent with the concerns raised earlier in this decision, however, the Commission has determined the following priorities for the CBC.

4. The Commission expects the CBC to improve regional input to the national network by:

º increasing the number of weekly programs originating in the regions or

º introducing new regional productions into the program schedule on a rotational basis so that all areas of Canada have an opportunity to provide complete programs to the network, and

º ensuring that there are in the schedule regionally-produced programs which reflect the issues, concerns, unique characteristics and talent of the regions in which they originate.

Canadian Talent Development

While acknowledging the CBC's considerable achievements in terms of Canadian talent support, the Commission also expects the national broadcasting service to be predominantly Canadian in content and character and urges the CBC to exhibit special resourcefulness in order to maximize the opportunities available to Canadian artists.

5a) The Commission expects the CBC to maintain the current level and quality of support for Canadian talent development.

5b) The Commission expects the CBC to report to the Commission within six months of the date of this decision on its plans to diversify and strengthen its support of Canadian talent in co-operation with:

i) the CBC's English television network and French AM and FM services and

ii) FACTOR/CTL or other private initiatives.

5c) The Commission expects the CBC to take the necessary steps to ensure better follow-up to its existing Canadian talent initiatives, including adequate promotion and increased opportunities for exposure for contest winners.

Special Interest Programming

The CBC's legislated responsibility to be a "balanced service of information, enlightenment and entertainment for people of different ages, interests and tastes" compels it to take into account the needs of special and minority groups. In order for the Corporation to fulfill its responsibilities to native Canadians and to children and youth, the Commission has developed the following priorities.

6. In terms of service to native Canadians, the Commission expects the CBC:

a) to maintain the level and quality of native input to network programs,

b) to develop a regular program focused on native issues and designed to appeal to native communities specifically, and

c) to take the lead in pursuing the radio distribution possibilities associated with the Television Northern Canada project and to keep the Commission informed of its progress in this regard.

7. The Commission expects the CBC to examine the possibility of developing programs designed to appeal specifically to children and youth, including co-operative ventures with the private sector, and to report on the results of its efforts at least six months prior to the end of the new licence term.

FM Service

Programming Orientation

The Commission recognizes that the CBC's English FM radio provides a distinct service in Canada in terms of the level, quality and diversity of its performance programming. Indeed, many interveners have cited the FM network as their only source of serious music and arts and culture information and the Commission has acknowledged the CBC's record in commissioning musical and dramatic works for subsequent broadcast. Accordingly,

1. the Commission expects the CBC to maintain the current programming orientation of the FM service during the upcoming term of licence.

As discussed earlier in the decision and consistent with the priorities established for the English-language AM network, the Commission requires the CBC to increase its commitment with regard to Canadian music and to strengthen its efforts to develop and support Canadian talent.

Canadian Content

2. It is a condition of licence that starting 1 April 1988, 40% or more of the category 5 musical selections broadcast on the FM network each broadcast week be Canadian and that these selections be distributed in a reasonable manner throughout the broadcast week. It is a further condition of licence that this level be increased to 45% or more starting 1 April 1989 and to 50% or more starting 1 April 1990.

It is also a condition of licence that starting 1 April 1988, 15% or more of the category 6 selections broadcast on the FM network each broadcast week be Canadian that these selections be scheduled in a reasonable manner throughout the broadcast week and that this level be increased to 20% or more starting 1 April 1990.

In this respect, the Commission will expect that the renewal applications of each CBC owned-and-operated FM radio station will reflect these Canadian content levels.

Canadian Talent Development

3a) The Commission expects the CBC to maintain the current level and quality of support for Canadian talent development.

3b) The Commission expects the CBC to report to the Commission within six months of the date of this decision on its plans to diversify and strengthen its support of Canadian talent in co-operation with:

i) the CBC's English television network and French AM and FM services and

ii) FACTOR/CTL and other private initiatives.

3c) The Commission expects the CBC to take the necessary steps to ensure better follow-up to its existing Canadian talent initiatives, including adequate promotion and increased opportunities for exposure for contest winners.

List of Conditions of Licence

Sex-Role Stereotyping

The Commission is attaching the following conditions of licence to all four radio network licences:

It is a condition of licence that the CBC adhere to its self-regulatory guidelines on sex-role stereotyping, as amended from time to time and approved by the Commission. Until such time as the Commission has approved revised CBC guidelines, it is a condition of licence that the CBC adhere to its current self-regulatory guidelines on sex-role stereotyping (as set out in Part C of Appendix A to Public Notice CRTC 1986-351 dated 22 December 1986) and, as a minimum, to the CAB's self-regulatory guidelines on sex-role stereotyping, as amended from time to time and approved by the Commission.

Commercial Content

The following conditions apply to both the French and English language radio network licences for AM and FM radio. As used herein the term "commercial message" has the same meaning as set out in the Radio Regulations, 1986.

The licensee shall not broadcast any commercial message except

(a) in programs which are available to the licensee only on a sponsored basis,

(b) as required to fulfill the requirements of applicable legislation of the Parliament of Canada concerning elections,

c) material falling into content subcategory 81, or

d) competitions or contests intended or used to encourage listening to the station or any verbal or musical material promoting such contests without identification of a sponsor.

Canadian Content

The following conditions apply to the French- and English-language radio network licences. For the purposes of these conditions, subsections 13(5), (6) and (7) of the Radio Regulations, 1986 will apply.

AM Radio

It is a condition of licence that starting 1 April 1988, 40% or more of the category 5 musical selections broadcast by the AM network each broadcast day shall be Canadian selections and shall be scheduled in a reasonable manner throughout the broadcast day. It is a further condition of licence that this percentage be increased to 45% or more starting 1 April 1989 and to 50% or more starting 1 April 1990.

It is a condition of licence that starting 1 April 1988, 15% or more of the category 6 musical selections broadcast by the AM network each broadcast week shall be Canadian selections and shall be scheduled in a reasonable manner throughout the broadcast week. It is a further condition of licence that this percentage be increased to 20% or more starting 1 April 1990.

FM Radio

It is a condition of licence that starting 1 April 1988, 40% or more of the category 5 musical selections broadcast by the FM network each broadcast week shall be Canadian selections and shall be scheduled in a reasonable manner throughout the broadcast week. It is a further condition of licence that this percentage be increased to 45% or more starting 1 April 1989 and to 50% or more starting 1 April 1990.

It is a condition of licence that starting 1 April 1988, 15% or more of the category 6 musical selections broadcast by the FM network each broadcast week shall be Canadian selections and shall be scheduled in a reasonable manner throughout the broadcast week. It is a further condition of licence that this percentage be increased to 20% or more starting 1 April 1990.

Fernand Bélisle
Secretary General

APPENDIX/ANNEXE

CBC RADIO PROJECTS - APPROVED AND NOT YET IMPLEMENTED/
RADIO DE LA SRC - PROJETS APPROUVÉS MAIS PAS ENCORE MIS EN OEUVRE

Decision Number and
date of Approval/Numéro Type of Service/
Location/Endroit de décision et date Genre de service
d'approbation

PROJECTS APPROVED OVER 5 YEARS AGO/PROJETS APPROUVÉS DEPUIS PLUS DE 5 ANS

Springhill, N.S. 82-1015 18-11-82 English/anglais AM

Val d'Or, Que. 82-707 12-08-82 English/anglais AM

Brockville, Ont. 76-660 16-09-76 English/anglais AM

Brockville, Ont. 79-169 15-02-79 English/anglais FM

PROJECTS APPROVED 1 TO 5 YEARS AGO/PROJETS APPROUVÉS DEPUIS 1 A 5 ANS

Sheet Harbour, N.S. 85-518 09-07-85 English/anglais AM

Sherbrooke, Que. 85-317 09-05-85 French/français FM

Geraldton, Ont. 86-1136 27-11-86 English/anglais AM

Sudbury, Ont. 84-906 22-10-84 English/anglais FM

Sudbury, Ont. 84-905 22-10-84 French/français FM

Toronto, Ont. 86-65 10-02-86 French/français FM

Bonnyville, Alta. 85-1277 17-12-85 French/français AM

High Level, Alta. 86-369 18-04-86 English/anglais AM

High Prairie, Alta. 85-1280 17-12-85 English/anglais AM

Slave Lake, Alta. 86-492 06-06-86 English/anglais AM

Wabasca, Alta. 86-493 06-06-86 English/anglais AM

Whitecourt, Alta. 85-1281 17-12-85 English/anglais AM

Manitouwadge, Ont. 87-735 09-09-87 English/anglais AM

Gillam, Man. 87-444 12-06-87 English/anglais AM

Lynn Lake, Man. 87-445 12-06-87 English/anglais AM