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Ottawa, 19 August 1992
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Decision CRTC 92-597
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Power Broadcasting Inc.
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Oshawa, Ontario - 911875300
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Following a Public Hearing in Toronto beginning on 19 May 1992, the Commission renews the broadcasting licence for CKQT-FM Oshawa from 1 September 1992 to 31 August 1999, subject to the conditions specified in the licence to be issued.
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The Commission also approves the proposal to amend the licensee's Promise of Performance by changing the required ratio of instrumental musical selections from at least 35% to less than 35% of all musical selections played each week. This amendment will effectively change the station format from Easy Listening to Adult Contemporary, serving the age group 18-34.
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In Decision CRTC 92-33 dated 31 January 1992, Power Broadcasting Inc. (Power) was authorized to reduce the proportion of instrumental musical selections on CKQT-FM from at least 50% to at least 35% of all musical selections played each week.
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Power states that a further reduction of instrumental music will more certainly ensure the success of CKQT-FM.
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In reaching its present decision, the Commission has taken into account the continuing financial problems experienced by CKQT-FM, and is satisfied that the re-orientation of the station's format approved herein will enable the licensee to repatriate listeners from Toronto, Ajax and Cobourg stations. The Commission notes that, in accordance with the Radio Regulations, 1986, the amount of Canadian content that must be broadcast on CKQT-FM following this approval will increase to 30% on a weekly basis from the current level of 20%.
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As a part of this application, the licensee requested approval for amendments to the benefits package approved in Decision CRTC 90-1003, which granted Power authority to acquire the assets of CKQT-FM and CKAR Oshawa. The proposed changes include the extension of the implementation schedule, to seven years instead of five, the reduction of news content from 7 to 3 hours per broadcast week, the redirection of funds originally earmarked for Canadian talent development to technical improvements for the two Oshawa stations, and the replacement of some approved benefits with alternative projects. These amendments are approved in part.
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With regard to the extension of the implementation schedule, to a period of seven years rather than five, the Commission notes the financial performance of the station and the request is therefore approved. The Commission notes in this regard that the expenses the licensee sought to defer do not represent a significant portion of the overall benefits package accepted in Decision CRTC 90-1003.
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As for the licensee's proposal to reduce the amount of news programming on CKQT-FM, in Decision CRTC 90-1003, the Commission accepted Power's commitment to increase the news content from 5 hours to 7 hours per week as being a significant benefit of the 1990 transaction, proposed as an integral part of the plan to repatriate Oshawa listeners to the station. Accordingly, the proposed immediate reduction of news content to 3 hours per week is denied; the level of 5 hours per week must be maintained until 1995 at which time the level may be reduced to 3 hours per week. In Decision CRTC 90-1003, the Commission also accepted as benefits, proposed contributions to Canadian talent development and financial expenditures for significant technical improvements at the two stations. The licensee now proposes the redirection of monies away from Canadian talent development towards further expenditures required for technical improvements. In support of this amendment, Power states that the information available to it at the time of the purchase regarding the state of repair of the stations' technical plant was incomplete. This led to a significant underestimation of the required technical improvements. The Commission, having considered the licensee's request, is satisfied that the reallocation of monies to this end is in the public interest, and the amendment is accordingly approved.
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Power also requested Commission approval of a proposal to replace Canadian talent initiatives accepted in Decision CRTC 90-1003 with the costs related to the relocation of both AM and FM studios, and a new Canadian talent deveopment project, "Heritage Minutes". The licensee states that it is unable to develop certain initiatives, for various reasons. Power further noted that it was not clear until after it acquired the two stations that the relocation of the studios would be a necessity during the new licence term.
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The Commission does not consider the replacement initiatives to be significant benefits, and views the monies involved in relocating studios in particular to be a normal cost of doing business. The Commission does, however, consider the remaining tangible benefits package to be substantial and adequate, given the financial situation of the stations, and therefore approves these proposed changes.
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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, during the new licence term, to continue its efforts towards the support, development and on-air exposure of local and regional talent.
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The Department of Communications has advised the Commission that it is prepared to renew the Broadcasting Certificate for a period of one year only, expiring 31 August 1993. With respect to the operation of this undertaking beyond this period, the Commission draws the licensee's attention to subsection 22(1) of the Broadcasting Act pertaining to the technical certification of broadcasting undertakings and to subsection 22(4) which provides that any broadcasting licence issued, amended or renewed in contravention of section 22 is of no force or effect.
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The Commission acknowledges the interventions opposed to portions of this application submitted by Mr. Robert J. Marshall of Uxbridge and by Four Ells Communications Inc., and is satisfied with the licensee's response to the concerns raised.
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The Commission also acknowledges the intervention submitted by the Canadian Association of Broadcasters in support of this application.
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Allan J. Darling
Secretary General
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