ARCHIVED -  Decision CRTC 95-326

Decision

Ottawa, 14 June 1995

Decision CRTC 95-326

Western Broadcasting Limited

Corner Brook and Deer Lake, Newfoundland - 941295800

Licence renewal for CKXX and its transmitter CKXX-1-FM

Following a Public Hearing in Halifax beginning on 4 April 1995, the Commission renews the broadcasting licence for the radio programming undertaking consisting of CKXX Corner Brook and its transmitter CKXX-1-FM Deer Lake, 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 licence to be issued.

The licensee, Western Broadcasting Limited, is controlled by NewCap Broadcasting, a division of NewCap Inc. (NewCap). For its part, NewCap, the licensee of radio stations in Nova Scotia, Newfoundland, Ontario, Alberta, British Columbia and Prince Edward Island, is wholly owned by Newfoundland Capital Corporation Limited, which is effectively controlled by its principal shareholder, Mr. H.R. Steele.

In its licence renewal application, the licensee requested that the Commission relieve it of the requirement to spend $288,750 of the five-year $515,000 benefits package that it promised as part of the ownership transaction approved in Decision CRTC 90-829 dated 29 August 1990. The licensee explained that it is unable to fulfil these commitments because CKXX is unprofitable.

The Commission notes that, during the current licence term, the licensee implemented $87,250 of the $375,000 tangible benefits accepted by the Commission in the transfer of control approved in Decision CRTC 90-829. Although it spent less than the amount it originally proposed, the licensee did carry out the talent contest and other projects promised as part of the benefits package. The Commission also notes that, during the current licence term, the licensee increased the amount of local programming broadcast on CKXX from an average of 64 hours weekly to an average of 84 hours weekly, and increased the amount of local news broadcast by the station.

The licensee also spent $100,000 implementing its proposals to improve the studio facilities and to install a microwave transmitter link, as well as $14,000 for a country music library, and $6,000 for a technical study on possible alternative frequencies to improve CKXX's coverage. Although the Commission rejected these proposals as tangible benefits of the ownership transaction, it nevertheless expected the licensee to make these expenditures in accordance with the schedule outlined in the application.

In light of the foregoing and of the licensee's financial difficulties, the Commission approves this request. The Commission, nevertheless, notes the licensee's statement that "when profitable, CKXX is prepared to revisit the commitments particularly regarding news staff and Canadian talent development".

As part of its licence renewal application, the licensee also indicated that it was unable to make a commitment in direct expenditures to Canadian talent development because of the station's financial difficulties.

In Public Notice CRTC 1992-72 entitled "A Review of the CRTC's Regulations and Policies for Radio", the Commission stated that "it would be prepared, at the time of licence renewal, to consider proposals by the licensees of unprofitable stations that they meet their obligations through indirect on-air initiatives... Such stations will, however, be expected to maintain a strong commitment to Canadian talent development through indirect initiatives". The Commission encourages the licensee to seek out means of supporting, developing and exposing on-air local and regional talent.

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. In this regard, the Commission 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