ARCHIVED -  Decision CRTC 95-608

Decision

Ottawa, 28 August 1995

Decision CRTC 95-608

CFMU Radio Incorporated

Hamilton, Ontario - 942126400

Licence renewal for CFMU-FM

Following Public Notice CRTC 1995-50 dated 30 March 1995, the Commission renews the broadcasting licence for the campus/community radio programming undertaking CFMU-FM Hamilton, from 1 September 1995 to 31 August 2000, 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.

The licence term granted herein, while less than the maximum of seven years permitted by the Broadcasting Act, will enable the Commission to consider the next licence renewal of this undertaking in accordance with the Commission's regional plan for campus/community radio stations across Canada and to better distribute the workload within the Commission. This term is not reflective of any Commission concern regarding the licensee's performance.

As part of this renewal application, the licensee requested an exemption from the policy concerning restricted advertising on campus radio stations set out in Public Notice CRTC 1993-38 dated 19 April 1993 entitled "Policies for Local Programming on Commercial Radio Stations and Advertising on Campus Stations". Specifically, the licensee applied to broadcast 4 minutes per hour, or 504 minutes per broadcast week, of conventional advertising which is currently restricted to 126 minutes per broadcast week.

The licensee stated that the station's survival depended on advertising revenues and that it was difficult to establish an advertising base if its station cannot advertise on the same terms as commercial broadcasters. The licensee also stated that in its view, the existence of two different creative standards for commercial stations was difficult to explain to its clients.

The Commission notes that an intervention opposing this request was received from Westcom Radio Group Ltd., licensee of CJXY-FM and CHML Hamilton. The intervener argued that CFMU-FM had not demonstrated the existence of a special circumstance that would warrant an exemption from the Commission's policy.

The Commission's position has always been that campus stations should not rely heavily on advertising revenues lest this cause stations to adopt programming that is similar to that of commercial stations. In this regard, the Commission notes that the licensee has not yet reached the unrestricted advertisement level of 126 minutes per week, the level established in Public Notice CRTC 1993-38 and supported by, among others, the National Campus/
Community Radio Association.

The Commission also notes that according to its Radio Market Report, the six Hamilton area radio stations were, from 1990 to 1994, in a loss position, on an aggregate basis.

In view of the foregoing, the Commission is not convinced that a departure from its general policy on advertising for campus stations is warranted.

Accordingly, the Commission denies this part of the application. Accordingly, it is a condition of licence, that the licensee broadcast no more than 504 minutes of advertising per broadcast week, with a maximum of 4 minutes in any one hour. Of the weekly total of 504 minutes, a maximum of 126 minutes may be conventional advertising. The remainder of advertising broadcast must conform to the definition of restricted advertising set out in Public Notice CRTC 1993-38.

It is a condition of licence that the licensee retain full control over all decisions concerning the management and programming of this station and that representatives of the student body, faculty, alumni or administration representatives of the university or college with which the station is associated, considered together, form the majority of the board of directors. In addition, the Commission reminds the licensee that, in accordance with the requirements of the "Direction to the CRTC (Eligible Canadian Corporations)", the chairman or other presiding officer and each of the directors or other similar officers of the licensee must be Canadian citizens.

As outlined in Public Notice CRTC 1992-38, campus stations may increase or reduce their hours of broadcast by up to 20% without application to the Commission, provided they meet the minimum percentage commitments set out in their Promise of Performance. Any increase or decrease in the hours of broadcast beyond the 20% level requires authorization by the Commission.

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 considers that campus/community radio stations should be particularly sensitive to this issue in order to reflect fully the communities they serve. It encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

In accordance with subsection 22(1) of the Broadcasting Act, this renewal is subject to the issuance of a Broadcasting Certificate by the Department of Industry.

The Commission draws the licensee's attention 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.

Allan J. Darling
Secretary General