ARCHIVED - Broadcasting - Commisstion letter to TQS inc.

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Ottawa, 14 June 2004

Bernard Guérin
Director General, Legal Affairs
TQS inc.
612 Saint-Jacques Street, Suite 100
Montreal, Quebec
H3C 5R1

Dear Mr. Guérin,

Re: TQS 2002-2003 annual report on tangible benefits, as directed in Decision CRTC 2001-746

The Commission has received and accepts the first audited annual TQS inc. report, filed as directed in Decision CRTC 2001-746, approving the transfer of TQS to Cogéco and Bell Globemedia.  The purpose of the report is to make it possible for the Commission to verify that the benefits expenditures totalling $7.39 million over six years are incremental expenditures.

The Commission would like to bring to your attention that the program Testostérone is considered to be category 11 (general entertainment and public interest) programming and cannot be considered as priority programming and thus be eligible for tangible benefits. The 32 hours of the program Testostérone (totaling $703,000) must be deducted from the sum of your programs as well as from incremental expenditures. Following this adjustment, the actual amount disbursed for the production of new, first-run priority programming considered by the Commission would be $1,003,615 for 2002-2003, while you were directed to pay a minimum of $1,133,000 per year. This $129,385 deficit must be made up over the next five years.

The Commission notes the non-compliance indicated by the auditors with respect to your commitment to broadcast five hours of priority programming per week during prime time (7 p.m. to 11 p.m.). With reference to the wording of your commitment and the adjustment made in relation to the 32 hours of the program Testostérone, the average of five hours per week of priority programming during prime time was not met over a 14-week period.

The Commission further expects that the second report, which is to be filed with the Commission next fall, will review the other commitments contained in Decision CRTC 2001-746, specifically with respect to Canadian cinema.

The Commission will make a detailed examination of all tangible benefits reports when analyzing the application for renewal of the TQS licence, which expires on 31 August 2008.


[Original signed]

Diane Rhéaume
Secretary General

Date Modified: 2004-06-14

Date modified: