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Letter
Ottawa, 8 June 2005
SENT BY FAX: (416) 386-2779
Ms. Charlotte Bell
Vice-President
Regulatory Affairs
Global Television Network
81 Barber Greene Road
Toronto, Ontario
M3C 2A2
Re: Annual WIC Transaction Benefits Report Pursuant to Decision CRTC 2000-221 (Case # 221806)
Dear Ms. Bell:
This is to advise that the Commission, subject to the requirements outlined below, accepts Global Television Network's WIC Transaction Benefits Report for the 2003/2004 Broadcast Year, filed 17 December 2004 pursuant to Acquisition by CanWest Global Communications Corp., through its wholly-owned subsidiary CW Shareholdings Inc., of the ownership interests held previously by WIC Western International Communications Ltd. in various conventional television stations and in certain other broadcasting undertakings, Decision CRTC 2000-221, 6 July 2000.
The report will be placed on the Commission website and Global's public examination file.
Commission staff had noted that a significant portion of the funds remained to be expended in the final year of the five year benefit commitment in two deficiency letters dated 21 February 2005 and 9 March 2005 and sought information on Global's plan for expending those funds. In its responses (2 March 2005 and 14 March 2005), Global requested a one year extension for several of the benefit initiatives and presented a proposed schedule for how the remaining funds would be expended.
As noted in Public Notice CRTC 1993-68, the Commission has, "in the past, accepted proposals to redirect and reschedule benefits in cases where unforeseen circumstances prevented a benefit from being carried out as planned [and the] Commission will continue to consider such requests on a case-by-case basis."
The following details the Commission's decision regarding the request for a one year extension for the benefit initiatives identified by Global.
Five Banner Themes Fund - B.C. (Northern News Bureau), CHBC Local Programming:
The Commission recognizes the importance of local and regional programming to the Canadian broadcasting system and thus, grants the request for a one year extension for the following two benefit initiatives:
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Benefit Initiative
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Outstanding as of 31 August 2004
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Estimated Expenditure by 31 August 2005
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Estimated Expenditure by 31 August 2006
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Five Banner Themes Fund - BC:
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$710,000
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$130,000
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$580,000
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CHBC Local Programming
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$461,000
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$195,000
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$266,000
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In the case of the Five Banner Themes Fund - B.C. (Northern News Bureau) benefit initiative, the extension will allow Global to "expand the reflection of [ the Northwest Territories, Nunavut and the Yukon] in its news programming and provide other programming initiatives". Similarly, the extension for the CHBC Local Programming benefit initiative will allow Global "to develop more regionally reflective programming". The Commission expects the funds to be expended according to the schedule outlined above.
National News:
The Commission grants the request for a one year extension for the following benefit initiative:
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Benefit Initiative
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Outstanding as of 31 August 2004
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Estimated Expenditure by 31 August 2005
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Estimated Expenditure by 31 August 2006
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National News
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$2,054,000
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$1,636,000
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$418,000
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The Commission recognizes that the complexity and unforeseen logistical issues associated with the launch of a weeknight national newscast would have contributed to the delay of the launch of this benefit initiative until Year 2, impacting Global's ability to commit and expend the funds in the original five year timeframe. The Commission expects the funds to be expended according to the schedule outlined above.
Canadian Western Independent Producers Fund (CWIP Fund), Five Banner Themes Fund - B.C. (First Projects Production Fund) and PSAs & Vignettes:
The Commission grants the request for a one year extension for the following three benefit initiatives:
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Benefit Initiative
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Outstanding as of 31 August 2004
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Expenditure by 31 August 2005
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Expenditure by 31 August 2006
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Canadian Western Independent Producers Fund (CWIP Fund)
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$8,693,000
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$4,290,000
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$4,403,000
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Five Banner Themes Fund - BC:
- First Projects Production Fund - BC
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$281,000
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$120,000
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$161,000
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PSAs & Vignettes:
- Canadians of Excellence - PSAs
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$439,000
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$215,000
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$224,000
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- Canadian Star Minutes - PSAs
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$451,000
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$240,000
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$211,000
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Global has indicated that the funds associated with these benefits will be committed by 31 August 2005, but that as a result of the structure of contracts with independent producers, the funds will not be completely expended until 31 August 2006. Global's explanation corresponds with the Commission's understanding of the normal development cycle of television programs. The Commission expects the funds to be expended according to the schedule outlined above.
Furthermore, the Commission requires Global to submit, with its 2004-2005 Annual Report, copies of the agreements signed with producers as proof that the funds were committed by 31 August 2005.
CBC Joint Project:
The Commission grants the request for a one year extension for the CBC Joint Project benefit initiative. The Commission is satisfied that Global made reasonable attempts to come to an agreement with the CBC and that circumstances beyond its control impacted its ability to come to such an agreement. Further to Global's commitment, the Commission expects Global to submit to the Commission, by 31 July 2005, details of its agreement with the CBC. In addition, the Commission expects Global to report on the status of this benefit initiative in its 2004-2005 Annual Report.
CHEK Local Programming:
The Commission conditionally grants the request for a one year extension for the CHEK Local Programming benefit initiative. The Commission recognizes that the delay, cited by Global, between the commencement of this benefit initiative and the commencement of the augmented CHEK base local programming levels, to which the benefit initiative is incremental, may have had an impact on Global's ability to make firm plans and commitments related to this benefit initiative. However, the Commission is of the opinion that the delay should not have impacted Global's ability to commit the remaining funds associated with this benefit initiative by 31 August 2005. Therefore, the Commission grants the request for a one year extension, on the condition that Global commits the remaining funds associated with this benefit initiative by 31 August 2005. The Commission expects the funds to be expended according to the schedule outlined below:
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Initiative
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Outstanding as of 31 August 2004
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Estimated Expenditure by 31 August 2005
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Estimated Expenditure by 31 August 2006
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CHEK Local Programming
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$3,465,000
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$1,321,000
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$2,144,000
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Furthermore, the Commission requires Global to submit, with its 2004-2005 Annual Report, evidence that the funds were committed by 31 August 2005.
The Commission requires Global to submit an annual report by 30 November 2006, detailing the expenditure of the outstanding funds in the 2005-2006 broadcast year.
The Commission emphasizes that it expects a licensee to meet its tangible benefit commitments in the timeframe proposed by the licensee and that the granting of any extension is an exception.
Yours sincerely,
Diane Rhéaume
Secretary General
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