ARCHIVED -  Decision CRTC 99-536

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Decision CRTC 99-536

  Ottawa, 8 December 1999
  Radiomutuel inc.
Trois-Rivières, Quebec – 199901864
  Application processed by Public Notice CRTC 1999-100 dated 21 June 1999
  Licence renewal for CIGB-FM
  1. The Commission renews the broadcasting licence for CIGB-FM Trois-Rivières, from 1 January 2000 to 31 August 2006, subject to the conditions specified in this decision and in the licence to be issued.
  2. The licensee asked to be relieved of the requirement that it make an annual contribution to MusicAction of $3,000 towards Canadian talent development initiatives. It requested a new condition of licence that would require it to make contributions for Canadian talent development, but would allow it to direct the contributions to third parties involved in Canadian talent development, of its own choosing.
  3. The Association québécoise de l’industrie du disque, du spectacle et de la vidéo (ADISQ) filed an intervention opposing the licensee’s request. ADISQ cited the key role played by MusicAction in the development of French-language music and referred to the financial needs of the organization. In reply, Radiomutuel inc. argued that its stations should not be subject to conditions of licence different from those of other Canadian stations. It stated that the French-language organizations designated by the Commission as "third parties" should also benefit from the support of French-language broadcasters.
  4. The Commission continues to be concerned about the situation of MusicAction, for the reasons outlined in Public Notice CRTC 1996-114 dated 19 August 1996. The licensee’s application is therefore denied and it is a condition of licence that the licensee make annual payments of $3,000 to MusicAction.
  5. The Commission will review its approach to Canadian talent development over the next year. It will examine questions raised by broadcasters in the context of this review.
  6. The Commission approves the licensee’s request to delete the condition of licence prohibiting it from soliciting commercial advertising in the area served by Réseau des Appalaches, specifically Thetford Mines, Victoriaville, Plessisville, Lac Mégantic, Asbestos and Disraeli. Réseau des Appalaches, licensee of CFJO-FM Thetford Mines, filed an intervention categorically opposing this request. The intervener stated that the market it serves is in a precarious financial situation, and it is worried about the consequences of further fragmenting the advertising base.
  7. In reply, the licensee submitted that the circumstances that originally justified the condition of licence no longer exist. The Commission agrees. In 1989, when it imposed a condition of licence prohibiting the applicant from soliciting commercial advertising in the area served by Réseau des Appalaches (Decision CRTC 89-849), the Commission had been made aware that CFJO-FM Thetford Mines would soon be launched and had taken into account the fact that competition from radio stations in neighbouring markets could prevent the new station from becoming profitable within a reasonable time frame. The Commission notes that CFJO-FM is today firmly established in its market and that its profit before interest and tax (PBIT) has substantially exceeded the radio industry average in Quebec and in Canada over the last five years. The data further indicate that the audience share of CIGB-FM in the counties of l’Amiante/l’Érable and Arthabaska is quite modest when compared to that of CFJO-FM. Consequently, the Commission has not been convinced that deleting the condition of CIGB-FM's licence prohibiting it from soliciting commercial advertising in the area served by Réseau des Appalaches would cause undue harm to CFJO-FM.
  8. Radiomutuel inc. is subject to the Employment Equity Act that came into effect on 24 October 1996 (1996 EEA), and therefore files reports concerning employment equity with Human Resources Development Canada. As a result of a consequential amendment to the Broadcasting Act, the Commission no longer has the authority to apply its employment equity policy to any undertaking that is subject to the 1996 EEA.
  Related CRTC documents

• Public Notice CRTC 1999-137New licence form for commercial radio stations

• Public Notice CRTC 1996-114Implementation of the new approach to Canadian talent development

• Public Notice CRTC 1995-196Contributions by radio stations to Canadian talent development – A new approach

  Secretary General
  This decision is to be appended to the licence. It is available in alternative format upon request, and may also be viewed at the following Internet site:
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