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Ottawa, 13 August 1992
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Decision CRTC 92-545
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TM Multi-Régions Inc.
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Quebec City, Quebec - 912193000 - 911933000
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Following a Public Hearing in Montréal and Quebec City beginning 23 March 1992, the Commission renews the broadcasting licence of the programming undertaking affiliated with the TVA network, CFCM-TV Quebec City, from 1 September 1992 to 31 August 1995, subject to the conditions specified in this decision and in the licence to be issued. In addition, for the reasons stated later in this decision, the Commission denies the licensee's applica-tion to reduce local production on CFCM-TV from 21 hours to 10 hours per week.
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This three-year licence renewal reflects the Commission's concerns regarding the licensee's failure to meet the programming commitments in its current Promise of Performance, in particular the commitment to broadcast a minimum of 21 hours of local productions per week, which was a condition of licence. This licence term will allow the Commission to conduct an early review of the licensee's compliance with the expectations and requirements set out in this decision.
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In past decisions pertaining to CFCM-TV, the Commission consistently required the station to maintain a significant level of local production, given the fact that it serves the provincial capital and second largest urban center in Quebec, and in light of its abundant and diverse supply of resources and talent. Further, the Commission has expected CFCM-TV, as the main regional affiliate of the TVA network, to make a meaningful contribution to the network by providing an adequate reflection of the greater Quebec City area and the province as a whole.
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In renewing the licence in 1986 (Decision CRTC 86-977), the Commission agreed to allow local production on CFCM-TV to be reduced to 21 hours per week. Despite numerous interventions opposing the change, the Commission accepted the proposal from the licensee at the time (Télé-Capitale Inc.), noting that the new level was a minimum commitment and was comparable to the level of other television stations serving comparable markets, and that the budget for local production would be maintained. At the same time, the Commission reminded the licensee that its primary responsibility was to serve its local audience; the Commission therefore expected the licensee to faithfully reflect in its programming the activities and interests of the entire population of Quebec City and the surrounding area.
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TM Multi-Régions Inc., a company created when Réseau Pathonic Inc. merged with Pathonic Communications Inc., became a wholly-owned subsidiary of Télé-Métropole Inc. (Télé-Métropole) as a result of the transfers of control approved by the Commission in Decision CRTC 90-631 dated 9 July 1990. Given the Commission's concerns about transactions of this nature, and as part of the benefits package associated with the transaction, Télé-Métropole made a series of firm, unequivocal commitments, particularly with regard to CFCM-TV. The Commission reminds the licensee of one of these commitments, namely its undertaking to ensure that the transaction would have no adverse effect on the conditions of licence, particularly those relating to the number of hours of local production per week. More specifically, Télé-Métropole undertook to make Quebec City a major production centre by significantly strengthening the role played by CFCM-TV, especially in the news sector. Together with the renewal application considered at the 23 March 1992 Public Hearing, the Commission examined an application for an amendment that would replace the current condition of licence regarding local programming with another condition that would have seen the number of hours of local production on CFCM-TV reduced from 21 hours to 10 hours per week. Notice of this application was given in Public Notice CRTC 1991-117 dated 4 November 1991. Given Télé-Métropole's admission that only 5 hours 45 minutes per week of local productions were broadcast on CFCM-TV during the summer of 1991, as revealed by the Commission's programming analysis, and in light of the almost 200 written complaints received by the Commission about the decrease in local programming on CFCM-TV, the Commission decided at the time to combine a public hearing on the application for an amendment with the hearing on the licence renewal.
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In addition to the above-mentioned complaints, which were treated as interventions to the current applications, the Commission witnessed at the session held in Quebec City in March 1992 an unusual outpouring of opinion representing a clear and essentially unanimous expression of longstanding frustration and strong protest against the constant decline in regional television services, particularly the services offered by CFCM-TV in Quebec City. The numerous briefs submitted to the Commission cut across virtually all social, political, economic and cultural boundaries in the Quebec City area; they came from mayors, MLAs, ministers and archbishops, municipal councils, school boards and chambers of commerce, unions and professional associations, and individual members of the public.
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This public outcry was sparked primarily by the licensee's proposals for the new licence term, as set out in its applications for licence renewal and amendment; these proposals were completely at odds with the commitments made by Télé-Métropole in 1990. Not only had the licensee proposed to cut the number of hours of local production on CFCM-TV by more than half, the change would spell a 55% reduction in news, from 8 hours 25 minutes per week to 3 hours 47 minutes per week, as well as cuts of almost 45% in the station's local programming budget.
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In its applications and at the hearing, the licensee explained at length the circumstances surrounding the cuts it was proposing. It indicated that Télé-Métropole had had to implement a financial reorganization affecting all of the stations under its control because of difficult economic conditions. It also noted its efforts in the area of programming, in particular the establishment of a Quebec-wide information network in which CFTM-TV Montréal is the flagship and CFCM-TV is the main regional affiliate. However, in response to the large number of interventions opposing its plan to reduce local production, it proposed at the hearing to change the profile of CFCM-TV's local production in the following television season in order to better meet local needs, but still stay within the 10 hours proposed in its applications.
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In its policy on local television programming (Public Notice CRTC 1991-22), the Commission stated that it would expect licensees to fulfil the obligations with respect to programming commitments accepted as benefits in ownership transactions without variance, and within the time frames prescribed. The Commission considers that this expectation has a special relevance in the case of CFCM-TV, given the Commission's statement in Decision CRTC 90-631 authorizing the acquisition of CFCM-TV by Télé-Métropole that it had taken into account the recent changes in the Quebec television market and that, as a result of the decision in question, Télé-Métropole would have the base needed to fully assume its responsibilities and sufficient resources to improve the quality of programming offered by stations in the TVA network, both locally and provincially.
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In light of the above and as indicated at the beginning of this decision, the Commission denies the licensee's proposal to amend the current condition of CFCM-TV's licence by reducing local production from 21 hours to 10 hours per week. The licensee will therefore have to bring the level of local production on CFCM-TV back up to 21 hours per week during the new term of its licence.
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However, given the time it will take to begin producing such a significant amount of new local programming, the Commission is prepared to allow the licensee to gradually attain the minimum requirement of 21 hours by the end of the new term of its licence. It is therefore a condition of licence that CFCM-TV broadcast at least 21 hours of original local programming per week by 31 August 1995, at least 18 hours per week by 31 August 1994 and at least 15 hours per week by 31 August 1993. As indicated at the hearing and in a letter from Télé-Métropole dated 15 April 1992, the Commission notes the licensee's plans to broadcast news seven days a week, specifically local newscasts as opposed to simple headlines, to be broadcast in the late evening and on Saturdays and Sundays.
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The Commission reminds the licensee of the obligations that are associated with a condition of licence. It plans to closely monitor CFCM-TV's performance in the months ahead.
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The Commission expects the licensee to reflect in its local programming the cultural, economic, political and social reality of the Quebec City area, in accordance with the requirements set out in the local television programming policy and the clarifications concerning French-language television set out in the preamble to this decision. In this regard, the Commission notes the commitment made by the licensee during the hearing to add three new weekly 30-minute programs during the new term of its licence. One program will deal with culture and the arts in the Old Capital, another with public affairs in the Quebec City area, and a third, to be broadcast on the TVA network, will deal with major public issues viewed from a provincial perspective.
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Given the conditions, requirements and expectations set out in this decision, the Commission expects the licensee to submit a revised program schedule within 60 days of the date of this decision, clearly indicating the weekly total of first-run local newscasts.
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The Commission encourages the licensee to rebroadcast in full the captioning provided within captioned programming.
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The application for renewal from CFCM-TV did not include any specific commitment regarding captioning of local productions. During the new licence term, the Commission expects the licensee, as a minimum, to provide captioning (open or closed) or signing of local news headlines, during the new licence term.
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The Commission offers its sincere thanks to the large number of intervenors who expressed their concerns about television services in the Quebec City area. Their informed input was of great assistance to the Commission in reviewing the licensee's application for renewal.
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Allan J. Darling
Secretary General
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