ARCHIVED -  Decision CRTC 95-100

Decision

Ottawa, 24 March 1995

Decision CRTC 95-100

BBS Ontario Incorporated

Toronto, Ontario - 940631500

Renewal of licence for CFTO-TV, Toronto

Following a Public Hearing in Toronto beginning on 3 October 1994, the Commission renews the broadcasting licence for CFTO-TV from 1 September 1995 to 31 August 2002, subject to the conditions in effect under the current licence, as well as to those conditions specified in the appendix to this decision and in the licence to be issued.

BBS Ontario Incorporated (BBS Ontario) through Baton Broadcasting Incorporated (Baton) and other holding companies, is ultimately controlled by members of the Eaton family of Toronto whose broadcast holdings also include controlling interests in CJOH-TV Ottawa, and several other television stations and transmitters in Ontario and Saskatchewan.

Local reflection

In Public Notice CRTC 1995-48 introducing this and other television licence renewal decisions issued today, the Commission reiterated the importance of the principle of local reflection and reminded television licensees that they have a special responsibility to serve the public within the particular geographic areas they are licensed to serve. In this regard, the Commission notes the commitment made by the licensee in its renewal application to broadcast a minimum weekly average of 15 hours 30 minutes of local news. It expects the licensee to adhere to this commitment throughout the licence term.

In Decision CRTC 89-93, the Commission expected the licensee to provide Canadian talent in the Toronto region with on-screen opportunities through more local specials or by featuring local musical/variety talent within the body of other programs, scheduled at times when large audiences can be expected. The Commission notes the licensee's efforts toward fulfilling this expectation, particularly with respect to the information program "Eye on Toronto". The Commission also notes the local program "Encounter", which is a weekly series that explores spiritual, social and religious issues, and "Inside Blue Jays Baseball", a weekly highlight program produced during the baseball season.

Requirement for Either Expenditures on or Exhibition of Canadian Programming - At the Licensee's Option

As also announced in Public Notice CRTC 1995-48, the Commission has adopted a policy, according to which the licensees of most private English-language television stations earning over $10 million in total annual advertising revenues and network payments are being offered the option of either adhering to a condition of licence on Canadian programming expenditures similar to the existing condition, or adhering to a condition of licence requiring the licensee to exhibit a specific number of hours of Canadian drama (category 7), music (category 8) and variety programming (category 9) during the evening broadcast period for each year of the new licence term. The options and the Commission's policy rationale are described more fully in that public notice.

The licensee must advise the Commission which option it has chosen before the new licence term begins on 1 September 1995. Once the licensee has advised the Commission which option it has chosen to follow, that option becomes the condition of licence in effect throughout the new licence term.

Program Development

The Commission reminds the licensee of the Commission's expectations set out in Public Notice CRTC 1989-27 dated 6 April 1989 and entitled "Overview: Local Television for the 1990s" regarding the important role that local television stations play in program development. In this regard, the Commission notes the licensee's commitment to continue to make annual financial contributions to script and concept development.

Children's Programming

With respect to programming directed to children, the Commission expects BBS Ontario to maintain its commitment to broadcast a weekly average of 2 hours 30 minutes of Canadian children's programming in the local broadcast hours on CFTO-TV. The Commission notes that this programming will be augmented by one hour per week of Canadian children's programming provided by the CTV network.

Service to the Deaf and Hard of Hearing

At the hearing, the Commission discussed with the licensee its performance with respect to providing service to deaf and hard-of-hearing viewers. The Commission notes the licensee's commitment in the renewal application to spend $100,000 in each year of the licence term, to either caption locally-produced programs or to acquire captioned programming.

Consistent with its policy approach for closed captioning announced in Public Notice CRTC 1995-48, the Commission requires the licensee, from 1 September 1998 to the end of the term of this licence, to caption all locally-produced news programs broadcast on CFTO-TV, including live segments, using either real-time captioning or another method capable of captioning live programming. Additionally, the Commission requires the licensee to caption not less than 90% of all programming broadcast throughout the broadcast day, by the end of the licence term.

Employment Equity

In Public Notice CRTC 1992-59, the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment.

In Decision CRTC 93-33 dated 26 January 1993, which approved the transfer of the assets of CFPL-TV London to South Western Ontario Broadcasting Incorporated, a wholly-owned subsidiary of Baton, the Commission addressed the issue of employment equity and noted that "although a formalized plan is in place at CJOH-TV Ottawa, no plan has yet been developed for CFTO-TV."

The Commission notes that BBS Ontario now has an action plan for employment equity at CFTO-TV which it calls a "Three-Year Employment Equity Strategy Plan". This plan, which was inaugurated in September 1994, is projected to operate until August of 1997. The plan is designed to facilitate the entrance and progress of women, visible minorities, persons with disabilities and aboriginal persons to the workforce of CFTO-TV.

At the hearing, the licensee explained that the action plan is comprised of four elements, namely Communication and Awareness, Employment Systems, Special Measures and a Monitoring and Evaluation plan.

Based on the public record, including the reports provided to the Commission by the Department of Human Resources Development, the Commission is pleased to commend the management of CFTO-TV on the station's general approach to achieving employment equity. In particular, the Commission notes the progress made with regard to employment equity of women and visible minorities at CFTO-TV and encourages the licensee to duplicate this success with aboriginal persons and persons with disabilities.

In Decision CRTC 93-33, the Commission expressed concern about Baton's corporate approach to employment equity, stating:

 According to Baton, guidelines on employment equity remain "...the responsibility of the individual licensees which develop their plan specific to their area." ...Nor has Baton developed a corporate policy on employment equity.

Accordingly, the Commission expected Baton to develop and implement a plan to ensure that adequate employment equity practices are followed on a company-wide basis.

The Commission notes since that time that Baton has developed an Employment Equity Policy, which it has communicated to all of its stations. The Commission also notes that, in February 1994, Baton created and staffed a new, full-time position of Employment Equity Manager. This manager coordinates the activities of all Baton stations in respect of employment equity initiatives.

The Commission acknowledges and has considered the many interventions submitted regarding the application for the renewal of CFTO-TV's licence.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

Conditions of licence for CFTO-TV Toronto

1. The licensee shall operate this broadcasting undertaking as part of the network operated by CTV Television Network Ltd.

2. The licensee shall adhere to either condition of licence A or condition of licence B set out below, as chosen by the licensee and communicated to the Commission before 1 September 1995. The licensee shall adhere to its selection throughout the entire licence term.

Condition of Licence A

The licensee shall expend on Canadian programming, at a minimum,

(i) In the year ending 31 August 1996, the minimum required level of expenditures in the year ending 31 August 1995 (before consideration of any overexpenditures or underexpenditures from prior years), increased (or decreased) by the year-over-year percentage change in the total of the station's annual advertising revenues and network payments, as reported in the relevant Annual Return for the years ending 31 August, averaged over the three previous years;

(ii) In each subsequent year of the licence term an amount calculated in accordance with the following formula: the amount of the previous year's expenditures (before consideration of any overexpenditures or underexpenditures from prior years), increased (or decreased) by the year-over-year percentage change in the total of the station's annual advertising revenues and network payments, as reported in the relevant Annual Return for the years ending 31 August, averaged over the three previous years;

(iii) In any year of the licence term, excluding the final year, the licensee may expend an amount on Canadian programming that is up to five percent (5%) less than the minimum required expenditure for that year as set out or calculated in accordance with paragraphs (i) and/or (ii) above; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underexpenditure;

(iv) In any year of the licence term, excluding the final year, where the licensee expends an amount on Canadian programming that is greater than the minimum required expenditure for that year, as set out or calculated in accordance with paragraphs (i) and/or (ii) above, the licensee may deduct:

  a) from the minimum required expenditure for the next year of the licence term an amount not exceeding the amount of the previous year's overexpenditures; and

  b) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overexpenditure and any amount deducted under a) above;

(v) Notwithstanding paragraphs (iii) and (iv) above, during the licence term, the licensee shall expend on Canadian programming at a minimum the total of the minimum required expenditures as set out in or calculated in accordance with paragraphs (i) and/or (ii) above.

For the purpose of the above condition, "expend on Canadian programming" shall have the same meaning as that set out in Public Notices CRTC 1993-93 and 1993-174 dated 22 June and 10 December 1993, respectively.

For the purpose of the above condition, the licensee is not permitted to credit any overexpenditure made in the previous licence term towards Canadian programming expenditures in any year or years of this licence term.

Condition of Licence B

The licensee shall broadcast in the evening broadcast period (between 6:00 p.m. and midnight) the following average number of hours per week of Canadian drama, music or variety programming in each year of the licence term:

1995-1996 5:30 hours
1996-1997 6:00 hours
1997-1998 6:00 hours
1998-1999 6:00 hours
1999-2000 6:30 hours
2000-2001 6:30 hours
2001-2002 7:00 hours

For the purpose of the above condition, the categories drama, music and variety are defined as set out in Schedule I of the Television Regulations, 1987.

3. The licensee shall adhere to the guidelines on gender 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 accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council (CBSC).

4. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's "Voluntary Code Regarding Violence in Television Programming", as amended from time to time and accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the CBSC.

5. The licensee shall adhere to the provisions of the CAB's "Broadcast Code for Advertising to Children", as amended from time to time and accepted by the Commission.