Broadcasting - Commission Letter addressed to Carmela Laurignano (Dufferin Communications Inc.)
Ottawa, 11 July 2022
BY EMAIL
Carmela Laurignano
Vice-President & Radio Group Manager
Dufferin Communications Inc.
5312 Dundas Street West
Toronto (ON) M9B 1B3
carmela@evanovradio.com
Re: Audit of Dufferin Communications Inc.’s Canadian content development contributions
Background
As part of its processes to audit Canadian content development (CCD) contributions and tangible benefits payments made by radio stations, the Commission discovered that Dufferin Communications Inc. (Dufferin) may not have made its required contributions and payments as follows.
In Broadcasting Decision 2013-94, as part of approving the application by Dufferin to operate a new radio station in Clarence-Rockland (CHRC-FM), Ontario, the Commission imposed a condition of licence requiring it to make a CCD contribution of $32,000, to be allocated over seven consecutive years upon commencement of operations: $5,000 in year one and $4,500 in each of years two through seven, with at least 20% of the annual amounts going to FACTOR or Musicaction.
According to Commission records, for the 2017-2018 broadcast year, the licensee would have been required to pay $4,500 in over-and-above CCD contributions – with at least 20% (or $900) of that amount going to either FACTOR or Musicaction.
Based on its annual return filings, it appears that no contributions were made to FACTOR or to Musicaction for the broadcast year. Further, there were questions about the eligibility of its CCD contributions to the Canadian Music Week (CMW) and the Coast2Coast Music Canada (Coast2Coast) discretionary initiatives.
Dufferin was asked to respond to the above-noted issues.
Dufferin’s response
In a response dated 11 November 2021, Dufferin admitted that it inadvertently omitted making a contribution of $900 to FACTOR or to Musicaction for the 2017-2018 broadcast year for CHRC-FM and instead, as it indicated in its annual return forms, made its entire $4,500 CCD contribution to discretionary initiatives. Dufferin indicated that to remedy this shortfall, it made an additional payment to FACTOR of $900 and included a copy of the cheque dated 11 November 2021 with its response.
In regards to its discretionary CCD contributions to the CMW Festival and Coast2Coast events, Dufferin provided evidence from the events’ organizers and marketing materials demonstrating that the funds from CHRC-FM were used to cover Canadian artists talent fees and any direct costs associated with the events in question, including the staging of live performances to the general public, recording and producing music, artists’ performance fees, and marketing of any digital compilations. Dufferin confirmed that it did not receive any direct or indirect benefits from either of the initiatives.
Commission Analysis and Determinations
The Commission notes that consistent with the Commercial Radio Policy, 2006, the Canadian Content Development Contributions and Eligible Initiatives page on the CRTC web site provides that discretionary CCD contributions can generally be directed towards organizing concerts for Canadian artist performances to the general public and to fund the recording of performances.
Based on the above and the evidence provided in the licensee’s response, the Commission is satisfied that the CMW Festival and the Coast2Coast events qualify as eligible discretionary CCD initiatives.
With regard to the required CCD contribution to FACTOR or Musicaction, the licensee admitted to not having made the payment. The Commission, therefore, finds Dufferin, the licensee of CHRC-FM, in non-compliance with condition of licence 2 as set out in Broadcasting Decision 2013-94. However, because the licensee has since made the required payment to FACTOR and provided proof of that payment, no further action is required at this time.
Yours sincerely,
Original signed by
Claude Doucet
Secretary General
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