ARCHIVED - Broadcasting Decision CRTC 2013-660

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Route reference: 2013-315

Ottawa, 6 December 2013

9202-1617 Québec inc.
La Baie, Quebec

Application 2013-0270-3, received on 25 January 2013

CKGS-FM La Baie – Licence renewal

The Commission renews the broadcasting licence for the French-language commercial radio station CKGS-FM La Baie, Quebec, from 1 January 2014 to 31 August 2020.

Introduction

1. 9202-1617 Québec inc. filed an application to renew the broadcasting licence for the French-language commercial radio station CKGS-FM La Baie, Quebec, which expires 31 December 2013.^[1]

2. The Commission received interventions commenting on this application from the Association québécoise de l’industrie du disque, du spectacle et de la vidéo (ADISQ) and from the Ministère de la Culture et des Communications and the Ministère de la Sécurité publique (the Ministères), on behalf of the Government of Quebec. The public record for this application can be found on the Commission’s website at www.crtc.gc.ca under “Public Proceedings.”

3. The intervention from the Ministères related to the participation of the station in the National Public Alerting System (NPAS). In this regard, as specified in its three-year plan, the Commission will be looking at measures to ensure the participation of Canadian broadcasters and telecommunications service providers in the NPAS. Therefore, the Commission will not impose conditions of licence requiring the participation of broadcasters in the NPAS at this time. However, the Commission expects all licensees to voluntarily participate in the NPAS so that Canadians receive timely warnings of imminent perils.

Non-compliance

4. In Broadcasting Notice of Consultation 2013-315, the Commission noted that the licensee was in apparent non-compliance with respect to:

its condition of licence regarding Canadian talent development (CTD) contributions for the 2008-2009 to 2011-2012 broadcast years; and
section 9(2) of the Radio Regulations, 1986 (the Regulations) relating to the filing of complete annual returns for the 2009-2010 broadcast year as the financial statements were not included.

5. The licensee omitted to make the required contribution of $3,000 to CTD in the 2008-2009 (prorated 5 months), 2009-2010 and 2010-2011 broadcast years. Moreover, in 2011-2012, the licensee made a contribution of only $1,250.

6. With respect to annual returns, section 9(2) of the Regulations requires that on or before 30 November each year, licensees submit to the Commission an annual return for the year ending on 31 August of the previous year. The specific filing requirements, including the requirement to submit financial statements, are set out in Broadcasting Information Bulletin 2011-795. As stated above, the licensee did not include the required financial statements with its 2009-2010 annual return.

7. Attraction Radio inc. (Attraction), the new owner of the licensee of CKGS-FM La Baie since 2012,^[2] explained that the serious financial difficulties experienced by the previous owner since the station’s launch in March 2009 caused the above-mentioned instances of non-compliance. The licensee added that those problems had been compounded by technical problems affecting the quality of CKGS-FM’s signal in its service area. The company’s cash flow problems had worsened over the 2011-2012 broadcast year, which led to the sale of the station in 2012.

8. In approving the transaction for the sale of the station, the Commission required, as a condition of approval, that Attraction make a contribution of $9,250 to an eligible Canadian content development^[3] initiative to rectify the shortfall accumulated under the control of the previous owner.

9. The Commission notes that the licensee paid the $9,250 shortfall within the prescribed period and submitted the necessary proof of payment as well as the missing financial statements for the 2009-2010 broadcast year.

10. Attraction stated that it intends to be a model broadcaster and comply with CKGS-FM’s conditions of licence and all of the Commission’s regulatory requirements.

11. In light of the above, the Commission finds the licensee in non-compliance with its condition of licence concerning CTD contributions for the 2008-2009 to 2011-2012 broadcast years and with section 9(2) of the Regulations relating to the filing of annual returns for the 2009-2010 broadcast year.

Regulatory measures

12. In Broadcasting Information Bulletin 2011-347, the Commission announced a revised approach for dealing with non-compliance by radio stations. Specifically, the Commission indicated that each instance of non-compliance would be evaluated in its context and in light of factors such as the quantity, recurrence and seriousness of the non-compliance. The Commission also indicated that it would consider the circumstances leading to the instances of non-compliance in question, the arguments provided by the licensee and the measures taken to rectify the situation.

13. The Commission considers that initiatives relating to the development of Canadian content and talent not only help to develop and advance the careers of emerging Canadian artists but increase the supply of high-quality Canadian music in a variety of genres and the demand for Canadian music by listeners. Accordingly, it is important that radio licensees make their required contributions to the development of Canadian content and talent.

14. The Commission also notes that timely compliance with annual reporting requirements is important because it allows the Commission to monitor licensee performance and compliance with its regulations and obligations. Accordingly, it considers annual returns that are incomplete and/or filed late to be a serious matter.

15. The Commission notes the circumstances surrounding the instances of non-compliance, the fact that they occurred under the control of the previous owner and more particularly the station’s financial situation since its launch in 2009. The Commission also considered the fact that Attraction’s purchase of CKGS-FM ensured the survival of the only service in that market and that its operating licence was not obtained through a competitive process.

16. In light of the above, the Commission finds it appropriate to grant the station a full-term licence renewal.

Conclusion

17. Given all of the foregoing, the Commission renews the broadcasting licence for the French-language commercial radio programming undertaking CKGS-FM La Baie, Quebec, from 1 January 2014 to 31 August 2020. The licensee shall adhere to the conditions of licence set out in Broadcasting Regulatory Policy 2009-62, as amended from time to time.

Reminder

18. Pursuant to section 22 of the Broadcasting Act, the Commission reminds the licensee that the broadcasting licence will cease to have any force or effect if the broadcasting certificate issued by the Department of Industry lapses.

Employment equity

19. In accordance with Public Notice 1992-59, 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.

Secretary General

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