ARCHIVED -  Decision CRTC 98-220

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Ottawa, 9 July 1998
Decision CRTC 98-220
Carleton-Victoria Broadcasting Co. Ltd.
Approved - Grand Fall's first commercial, Canadian, English-language radio station. The station will rebroadcast the programming of CJCJ Woodstock on the FM band, with Grand Falls advertising. The new station must begin separate local programming within three years.
1. Following a Public Hearing in Saint John held on 30 March 1998, the Commission approves the application for a broadcasting licence to operate an English-language FM radio programming undertaking at Grand Falls on the frequency 93.5 MHz, channel 228A, with an effective radiated power of 5,300 watts.
2. The new station will rebroadcast the programming produced by CJCJ Woodstock, except for 2 hours 30 minutes of advertising per broadcast week, to be aired exclusively in Grand Falls.
3. Subject to the requirements of this decision, the Commission will issue a licence expiring 31 August 2003. The licence will be subject to the conditions specified in this decision and in the licence to be issued.
4. The licence term granted herein, while less than the maximum of seven years permitted under the Broadcasting Act (the Act), will enable the Commission to monitor the licensee's compliance with the conditions of licence set out later in this decision.
5. Grand Falls is currently served by CFAI-FM-1, a French-language community station, and by CKMV Grand Falls which is a rebroadcasting transmitter of CJEM Edmundston, a commercial French-language service. In Decision CRTC 98-56 dated 20 February 1998, the Commission approved an application for CJEM to move to the FM band. The only Canadian English-language services receivable in the Grand Falls market are those of the CBC AM and FM networks. The Commission notes that, according to recent BBM data, English-language radio services originating in the U.S. account for 58% of all listening in Victoria County.
6. Interventions in opposition to this application were submitted by l'Alliance des radio communautaires du Canada inc. (ARCC), La Coopérative des Montagnes ltée (La Coopérative) and Edmundston Radio Limited (Edmundston Radio). La Coopérative is the licensee of CFAI-FM-1 Grand Falls, and Edmundston Radio is the licensee of CJEM Edmundston and CKMV Grand Falls.
7. Among other things, ARCC and la Coopérative both expressed concern that, with the (at that time) pending application by Edmundston Radio to transmit CJEM on FM in Grand Falls, further fragmentation of the market and economic harm to CFAI-FM-1 would result. Edmundston Radio asserted that the English-speaking population of Grand Falls is not large enough to support a commercial English-language service.
8. In its reply to the interventions, the applicant reiterated its plans to serve the needs of the English-speaking residents of the Grand Falls area, and in so doing, repatriate listeners currently tuning to U.S. radio stations.
9. The Commission is satisfied that no undue harm to the existing French-language radio services in the Grand Falls market will occur, since the programming of the new service will be entirely in English.
10. The Commission notes that there is currently no radio source for local news available in Grand Falls in the English language. In its written application, the applicant outlined plans to broadcast on CJCJ, and rebroadcast on the proposed FM station, some news, weather, sports, community events and public service announcements of particular relevance to Grand Falls residents.
11. At the hearing, the applicant stated its intention: "to establish studios in Grand Falls when we are established in the market and our revenue base will support the additional costs. We have given this further consideration and in the interest of the application we will be more specific. We will commit to the establishment of studios and to the local broadcast of at least the morning day part by the end of year three."
12. As noted above, there is no Canadian English-language commercial radio service serving Grand Falls, qualifying that city as a "single-station market" as defined in Public Notice CRTC 1993-121, entitled Local Programming Policy for FM Radio -Definition of a Single Station Market. Consistent with that policy, the new FM station would be exempt from the policy requirements respecting FM stations in competitive markets. Such stations are required to devote at least one-third of the broadcast week to local programming if they wish to solicit or accept local advertising.
13. While the policy pertaining to single-station markets does not set a minimum amount of local programming that is appropriate, it is the Commission's long-standing position that some local programming should be provided, in return for accessing revenues from local advertising.
14. The Commission notes the licensee's proposal that local advertising will be broadcast on the new station, although no dedicated local programming will be provided initially. While this proposal is not consistent with the policy position set out above, the Commission is mindful of the strong pattern in Grand Falls of listening to U.S. stations, and that the new station will provide the first Canadian commercial radio service to Grand Falls in the English language. Given the applicant's commitment noted above, the Commission has decided to require, by condition of licence, that the licensee begin the broadcast of separate local programming as defined in Public Notice CRTC 1993-38, at least during the morning hours, within three years of the date of this decision.
15. The licensee is required, by condition of licence, to make payments to third parties involved in Canadian talent development at the level identified for it in the Canadian Association of Broadcasters' (CAB) Distribution Guidelines for Canadian Talent Development, as set out in Public Notice CRTC 1995-196 or as amended from time to time and approved by the Commission, and to report the names of the third parties associated with Canadian talent development, together with the amounts paid to each, concurrently with its annual return. The payments required under this condition of licence are over and above any outstanding commitments to Canadian talent development offered as benefits in an application to acquire ownership or control of the undertaking.
16. It is a condition of licence that this station not be operated within the Specialty format as defined in Public Notice CRTC 1995-60, or as amended from time to time by the Commission.
17. It is a condition of licence that the applicant adhere to the guidelines on gender portrayal set out in the CAB's Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and accepted by the Commission.
18. It is also a condition of licence that the licensee 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.
19. 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.
20. This authority will only be effective and the licence will only be issued at such time as construction of the undertaking is completed and it is prepared to commence operation. If the construction is not completed within twelve months of the date of this decision or, where the applicant applies to the Commission within this period and satisfies the Commission that it cannot complete construction and commence operation before the expiry of this period, and that an extension of time is in the public interest, within such further periods of time as are approved in writing by the Commission, the licence will not be issued. The applicant is required to advise the Commission (before the expiry of the twelve-month period or any extension thereof) in writing, once it has completed construction and is prepared to commence operation.
21. The Department of Industry has advised the Commission that this application is conditionally technically acceptable, and that a Broadcasting Certificate will only be issued once it has been determined that the proposed technical parameters will not create any unacceptable interference with aeronautical NAV/COM services.
22. In accordance with subsection 22(1) of the Act, the Commission will only issue the licence and the authority will only be granted at such time as written notification is received from the Department of Industry that its technical requirements have been met, and that a Broadcasting Certificate will be issued.
This decision is to be appended to the licence.
Laura M. Talbot-Allan
Secretary General
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