ARCHIVED -  Decision CRTC 92-273

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Decision

Ottawa, 7 May 1992
Decision CRTC 92-273
Maritime Broadcasting System Limited
Saint John, New Brunswick - 911538700
Following a Public Hearing in Halifax beginning on 3 December 1991, the Commission renews the broadcasting licence for CIOK-FM Saint John, from 1 September 1992 to 31 August 1998, subject to the conditions specified in this decision and in the licence to be issued.
The Commission, however, denies Maritime Broadcasting System Limited's (MBSL) request that the Commission not reiterate the expectation contained in Decision CRTC 86-1174 that CIOK-FM not solicit advertising from the Moncton and Fredericton areas.
In that decision which authorized MBSL to operate an English-language FM radio station in Saint John, the Commission imposed the non-solicitation expectation due to concerns regarding the "potential detrimental effects of a new service on broadcasters in Fredericton and Moncton".
MBSL advised the Commission that, since CIOK-FM has a small audience in Moncton, it did not intend to actively solicit advertising in that market and indicated that the purpose of this request was to enable the licensee to pursue advertising in the Fredericton market. In support of its request to be allowed to solicit advertising in Fredericton at this time, MBSL claimed that CIOK-FM has a "sizeable listening audience" in that community. MBSL also stated that, in 1991, it received $45,000 of local advertising on behalf of Fredericton retailers who had requested CIOK-FM's services. Further, MBSL claimed that, since 1986, the operations of radio stations in Fredericton have "matured and developed to the degree where the CIOK-FM non-solicitation expectation can be removed".
Radio One Ltd., the licensee of CKHJ-FM and CIHI Fredericton and an opposing intervener to MBSL's 1986 application, appeared at the 1991 hearing to oppose the licensee's request to delete the non-solicitation expectation. Radio Atlantic (CFNB) Ltd., licensee of CFNB Fredericton, also appeared at the hearing to oppose MBSL's request. Both of these interveners maintained that an approval would result in a decrease in the amount of local advertising revenues available to their stations. In addition, the Commission received more than 55 opposing interventions from Fredericton retailers, as well as an opposing intervention from Annapolis Valley Radio Ltd., licensee of CKWM-FM Kentville, Nova Scotia.
Having considered all of the available evidence, including the arguments of both the licensee and the interveners, the Commission is concerned that approval of MBSL's request could have a negative impact on the operations of local Fredericton radio stations. In the Commission's view, these stations will be better able to maintain the quality of their programming and, consequently, better serve the residents of Fredericton if only local stations can solicit advertising in that market.
The Commission notes in this regard that, while CIOK-FM does broadcast a daily news magazine on provincial issues from its studios in Fredericton and does provide daily news programming reflecting local, regional and provincial Atlantic news, the station does not offer any local programming of specific interest to residents of Fredericton. The Commission's policy on local commercial advertising stipulates that, where an applicant proposes to seek local commercial revenue from a community, it should also be prepared to provide a local program service to that community in return. The Commission is not convinced that a departure from its policy is justified in this case.
Further, the Commission considers that CIOK-FM has the potential to obtain sufficient advertising revenues within its primary market to become a profitable station. The Commission notes MBSL's acknowledgement at the hearing that denial of this request would not have a "tremendous impact" on CIOK-FM.
Based on all of the foregoing, the Commission reiterates the expectation that MBSL not solicit advertising from the Fredericton and Moncton areas.
The Commission reaffirms the particular importance it attaches to the development of Canadian talent and is satisfied with the annual budgets allocated and the initiatives proposed by the licensee in this respect. It encourages the licensee to continue its efforts in this regard during the new licence term and to develop new initiatives for the support, development and on-air exposure of local and regional talent.
It is a condition of licence that the licensee adhere to the guidelines on sex-role portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.
It is also a condition of licence that the licensee adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission. The Commission acknowledges the intervention submitted by the CAB in support of CIOK-FM's licence renewal.
Allan J. Darling
Secretary General

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