ARCHIVED -  Decision CRTC 94-434

Decision

Ottawa, 21 July 1994

Decision CRTC 94-434

Country Broadcasting Corp.

Galiano and Mayne Islands, British Columbia - 930712500

Short-term licence renewal

Following a Public Hearing in Saskatoon beginning on 6 June 1994, the Commission renews the Class 2 (fewer than 2,000 subscribers) licence held by Country Broadcasting Corp. (Country), for the cable distribution undertaking licensed to serve Galiano and Mayne Islands, from 1 September 1994 to 28 February 1995. The operation of this undertaking is regulated pursuant to Part I and the applicable sections of Part II of the Cable Television Regulations, 1986 (the regulations) and the licence will be subject to the conditions in effect under the current licence, as well as to those conditions specified in this decision and in the licence to be issued.

In Decision CRTC 91-853 dated 25 November 1991, the Commission approved an application by Country for a new cable distribution undertaking to serve Galiano and Mayne Islands. That licence was conditional upon the licensee implementing the service within twelve months.

In December of 1992, the Commission granted a twelve month extension to the implementation deadline, based on the licensee's statements that delays had been caused by complications in receiving the off-air signals, and that resolution of the problem was expected within a short period of time. That deadline gave the licensee until 25 November 1993 to implement the service.

In November 1993 Country applied for a further twelve month extension, because of delays in receiving permits for the use of submarine cable. In Decision CRTC 94-113, dated 29 March 1994, the Commission approved a second extension, but only until 31 August 1994, which coincides with the expiry of the current licence. In that decision, the Commission noted Country's intention to have the system in operation by the end of April 1994.

In Notice of Public Hearing CRTC 1994-6 dated 8 April 1994, the Commission noted that the system was still not in operation, despite several extensions to the required implementation date, and that the licensee apparently had little interest in completing and operating the system, and called the licensee to the hearing to show cause as to why its licence to serve these areas should be renewed.

At the hearing, Country's owner, Mr. Leigh Hillier, acknowledged that the long delay in implementing this licence was due in part to decisions made by himself, and in part to delays beyond the control of Country. Mr. Hillier stated that, in the year following the original licence approval, rather than construct the newly-licensed system, he had concentrated his efforts and resources on expanding existing Country undertakings, "mostly out of fear of what was coming, and to consolidate those islands or those other areas so that if the telephone company or if the DBS became a significant threat, I would be prepared to face it."

Mr. Hillier also noted at the hearing that, in the last year, he had taken steps with a view to building the system underground, but that his application to use highway rights-of-way for this purpose was denied by the British Columbia Department of Highways.

Mr. Hillier further explained that, following that denial, he re-designed a conventional, above-ground system, and asked BCTel to construct it. Assurances were received from BCTel that the system could be constructed within three months of BCTel receiving the full cost of construction. In the light of the show-cause hearing then pending, Mr. Hillier stated that he was reluctant to advance what would be a sizable sum, when the possibility existed that the licence might not be renewed.

In reaching the present decision to further extend the construction deadline and renew this licence for a short term, the Commission has taken into account the fact that the licensee has written assurances from BCTel that the work can be completed in three months, and that the materials needed have been ordered. It further notes that the licensee has provided documentation that all financing for the costs of construction is arranged, and that all permits for the land-based construction have been granted.

The Commission notes in particular the firm commitment made by the licensee at the hearing, to implement service on both Galiano and Mayne Islands.

It is therefore a condition of this licence that construction of this undertaking be completed and that it be in operation before the expiry of this license term. The Commission puts the licensee on notice that should it be unable to complete construction and implement the undertaking at Galiano and Mayne Islands by that time, the Commission may not be prepared to grant a further renewal of this licence, and may reassess how these communities will best be served.

In this regard, the Commission notes the commitment by Country to surrender the licence for this undertaking if the system is not in operation by the end of November 1994.

Consistent with Decision CRTC 91-853 dated 25 November 1991 and pursuant to section 12 of the regulations, the licensee is relieved, by condition of licence, of the requirement that it distribute the signals of CBUT and CHAN-TV Vancouver and CHEK-TV Victoria on unrestricted channels. Should the quality of any of these signals deteriorate significantly, the Commission expects the licensee to undertake immediate corrective action including, if necessary, the distribution of that service on another channel.

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. It encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Allan J. Darling
Secretary General