ARCHIVED - Broadcasting Decision CRTC 2015-274

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Reference: 2015-51

Ottawa, 22 June 2015

Blackburn Radio Inc.
London, Ontario

Application 2014-0778-4, received 13 August 2014

CKLO-FM London – Licence renewal

The Commission renews the broadcasting licence for the English-language commercial radio station CKLO-FM London from 1 September 2015 to 31 August 2022.

Introduction

1. Blackburn Radio Inc. (Blackburn Radio) filed an application to renew the broadcasting licence for the English-language commercial radio station CKLO-FM London, which expires 31 August 2015. The Commission did not receive any interventions regarding this application.

Non-compliance

2. Section 9(2) of the Radio Regulations, 1986 (the Regulations) requires licensees to file an annual return by 30 November of each year for the broadcast year ending the previous 31 August. The specific filing requirements, including the requirement to submit financial statements, are set out in Broadcasting Information Bulletin 2011-795.
3. In Broadcasting Notice of Consultation 2015-51, the Commission stated that the licensee was in apparent non-compliance with section 9(2) of the Regulations relating to the filing of complete annual returns. Specifically, the licensee failed to include financial statements for the 2011-2012 broadcast year. The missing financial statements were filed on 5 April 2013.
4. Blackburn Radio stated that its auditors were unable to complete their financial report for the 30 November 2012 deadline. It apologized for the non-compliance and indicated that a pre‑November deadline for the completion of all audited financial statements would be established and a point-person appointed to ensure compliance. 
5. In light of the above, the Commission finds the licensee in non-compliance with section 9(2) of the Regulations for the 2011-2012 broadcast year.
6. This is the first licence term in which the licensee has been found in non-compliance. Once informed of the situation, it quickly submitted the missing financial statements.

Regulatory measures

7. The Commission’s approach to non-compliance by radio stations is set out in Broadcasting Information Bulletin 2014-608. Under that approach, each instance of non-compliance is evaluated in its context and in light of factors such as the quantity, recurrence and seriousness of the non-compliance. The circumstances, the arguments provided by the licensee and the actions taken to rectify the situation are also considered.
8. Compliance with deadlines for the filing of complete annual returns is important because it enables the Commission to monitor a licensee’s performance and compliance with regulations. Accordingly, the Commission considers the late or incomplete filing of annual returns a serious matter.
9. The Commission has examined the record for this application and is satisfied with the licensee’s explanations and with the measures it has put in place to address the non‑compliance. Given the circumstances surrounding the licensee’s non-compliance, the Commission finds it appropriate to grant CKLO-FM London a full-term licence renewal.

Conclusion

10. In light of all of the above, the Commission renews the broadcasting licence for the English-language commercial radio programming undertaking CKLO-FM London from 1 September 2015 to 31 August 2022. The conditions of licence are set out in the appendix to this decision.

Reminders

11. The licensee is responsible for filing complete annual returns on time. In addition, as set out in Broadcasting Information Bulletin 2011-795, it is the licensee’s responsibility to ensure that all appropriate forms and documentation are included with its annual returns and to contact the Commission if further clarification is required.
12. Pursuant to section 22 of the Broadcasting Act, the broadcasting licence renewed in this decision will cease to have any force or effect if the broadcasting certificate issued by the Department of Industry lapses.

Employment equity

13. Because this licensee is subject to the Employment Equity Act and files reports concerning employment equity with the Department of Employment and Social Development, its employment equity practices are not examined by the Commission.

Secretary General

Related documents

• Notice of applications received, Broadcasting Notice of Consultation CRTC 2015-51, 18 February 2015
• Update on the Commission’s approach to non-compliance by radio stations, Broadcasting Information Bulletin CRTC 2014-608, 21 November 2014
• Filing annual returns for radio programming undertakings, Broadcasting Information Bulletin CRTC 2011-795, 20 December 2011

*This decision is to be appended to the licence.

Appendix to Broadcasting Decision CRTC 2015-274

Conditions of licence and expectation for the English-language commercial radio programming undertaking CKLO-FM London, Ontario

Conditions of licence

1. The licensee shall adhere to the conditions set out in Conditions of licence for commercial AM and FM radio stations, Broadcasting Regulatory Policy CRTC 2009-62, 11 February 2009, as well as to theconditions set out in the broadcasting licence for the undertaking.
2. As an exception to the percentage of Canadian musical selections set out in sections 2.2(8) and 2.2(9) of the Radio Regulations, 1986, the licensee shall devote at least 40% of its musical selections from content category 2 (Popular Music) in each broadcast week and between 6 a.m. and 6 p.m. from Monday to Friday to Canadian selections broadcast in their entirety.
3. The licensee shall ensure that at least 10% of musical selections broadcast during each broadcast week are from content category 3 (Special Interest Music).
4. The licensee shall ensure that at least 30% of musical selections from content category 3 (Special Interest Music) broadcast in each broadcast week are Canadian selections broadcast in their entirety.
5. In order to fulfill its outstanding commitments to Canadian content development (CCD) set out in Appendix 2 to Licensing of new radio stations to serve London, Ontario, Broadcasting Decision CRTC 2009-39, 2 February 2009, the licensee shall file, by 30 November of each year and in a form deemed acceptable by the Commission, all proof of payment regarding the required contribution to CCD to be made in the broadcast year ending the previous 31 August in addition to the required basic annual CCD contribution set out in section 15 of the Radio Regulations, 1986, as follows:
   • $272,144 in the 2014-2015 broadcast year;
   • $272,144 in the 2015-2016 broadcast year; and
   • $272,144 in the 2016-2017 broadcast year.

   At least 20% of the required contributions made in each broadcast year shall be allocated to FACTOR or MUSICACTION. Any remaining amounts of the contributions not allocated to FACTOR or MUSICACTION shall be allocated to eligible CCD initiatives as described in paragraph 108 of Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006, as amended from time to time.

Definitions

For the purposes of these conditions of licence, the terms “broadcast week,” “Canadian selection,” “content category” and “musical selection” shall have the same meanings as set out in the Radio Regulations, 1986.

Expectation

The Commission expects the licensee to reflect the cultural diversity of Canada in its programming and employment practices.

Date modified:

2015-06-22