Broadcasting Commission Letter Addressed to Walter Ploegman (Blackburn Radio Inc.)

Ottawa, 15 May 2017

BY EMAIL

Mr. Walter Ploegman
Director of Operations
Blackburn Radio Inc.
117 Keil Drive
Chatham, Ontario  N7M 5K1
wploegman@blackburnradio.com

Re: Audit of Blackburn Radio Inc.’s (Blackburn Radio) Canadian content development contributions

Dear Mr. Ploegman:

As you are aware, the Commission recently conducted an audit of Blackburn Radio’s Canadian content development (CCD) contributions for the broadcast year 2013-2014.  During this audit, Commission staff identified instances of apparent non-compliance with regards to Blackburn Radio’s CCD contributions.  You were notified of this apparent non-compliance by Commission staff letter dated 26 April 2016 and responded by letter dated 9 May 2016.

This letter is to inform you that the Commission finds that certain Blackburn Radio stations were in non-compliance with their CCD contribution requirements for the broadcast year 2013-2014.  Specifically, CKLO-FM, CKNX-FM, and CKNX were in non-compliance with their CCD obligations under section 15 of the Radio Regulations,1986.

In addition, CKLO-FM was found in non-compliance with the following condition of licence as stated in Appendix 2 to Broadcast Decision CRTC 2009-39:  

5. In addition to the required basic annual contribution to Canadian content development (CCD), set out in section 15 of the Radio Regulations, 1986, the licensee shall, upon commencement of operations, make an annual contribution of $214,285.71 ($1,500,000 over seven consecutive broadcast years) to the promotion and development of Canadian content.

The Commission does not necessarily dispute the eligibility of any of the CCD recipients below; rather, the non-compliance stems from insufficient CCD contributions and the use of ineligible expenditures.

Below is a breakdown of the non-compliance by station and recipient:

Station and Recipient Issue Amount
1. CKLO-FM: London Catholic District School Board Administration fees are not eligible CCD expenditures and the CCD contribution was insufficient. $4,497
2. CKNX & CKNX-FM: Song Dog MusicCo. Promotional activities related to the stations are not eligible CCD expenditures. $2,729
Total $7,226

As a result of these findings, the Commission directs Blackburn Radio to pay the total shortfall of $7,226 within 90 days of the date of this letter, as follows:

In addition, the Commission directs Blackburn Radio to file proof of payment for the total CCD shortfall ($7,226), with the Commission, within 120 days of the date of this letter.

Further information on CCD contributions and eligible initiatives can be found on the CRTC website: http://www.crtc.gc.ca/ENG/GENERAL/ccdparties.htm

The Commission notes that failure to supply sufficient documentation to support the eligibility of Blackburn Radio’s contributions for future broadcast years may result in the Commission finding those contributions ineligible and may affect the station’s compliance with regulatory obligations. 

Lastly, the Commission notes that the determinations set out in this letter address only the 2013-2014 broadcast year and do not relate to any subsequent broadcast years. 

Yours sincerely,

Original signed by

Danielle May-Cuconato
Secretary General

c.c.: Duncan.mckie@factor.ca; lchenail@musicaction.ca; amely@crfc-fcrc.ca
Date modified: