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Please note that the Official Languages Act requires that government publications be available in both official languages.
In order to meet some of the requirements under this Act, the Commission's transcripts will therefore be bilingual as to their covers, the listing of CRTC members and staff attending the hearings, and the table of contents.
However, the aforementioned publication is the recorded verbatim transcript and, as such, is transcribed in either of the official languages, depending on the language spoken by the participant at the hearing.
TRANSCRIPT OF PROCEEDINGS BEFORE
THE CANADIAN RADIO‑TELEVISION AND
TELECOMMUNICATIONS COMMISSION
TRANSCRIPTION DES AUDIENCES AVANT
CONSEIL DE LA RADIODIFFUSION
ET DES TÉLÉCOMMUNICATIONS CANADIENNES
SUBJECT:
VARIOUS BROADCAST APPLICATIONS /
PLUSIEURS DEMANDES EN RADIODIFFUSION
HELD AT: TENUE À:
Delta Regina Delta Regina
1919 Saskatchewan Drive 1919, promenade Saskatchewan
Regina, Saskatchewan Regina, Saskatchewan
November 1, 2006 le 1 novembre 2006
Transcripts
In order to meet the requirements of the Official Languages
Act, transcripts of proceedings before the Commission will be
bilingual as to their covers, the listing of the CRTC members
and staff attending the public hearings, and the Table of
Contents.
However, the aforementioned publication is the recorded
verbatim transcript and, as such, is taped and transcribed in
either of the official languages, depending on the language
spoken by the participant at the public hearing.
Transcription
Afin de rencontrer les exigences de la Loi sur les langues
officielles, les procès‑verbaux pour le Conseil seront
bilingues en ce qui a trait à la page couverture, la liste des
membres et du personnel du CRTC participant à l'audience
publique ainsi que la table des matières.
Toutefois, la publication susmentionnée est un compte rendu
textuel des délibérations et, en tant que tel, est enregistrée
et transcrite dans l'une ou l'autre des deux langues
officielles, compte tenu de la langue utilisée par le
participant à l'audience publique.
Canadian Radio‑television and
Telecommunications Commission
Conseil de la radiodiffusion et des
télécommunications canadiennes
Transcript / Transcription
VARIOUS BROADCAST APPLICATIONS /
PLUSIEURS DEMANDES EN RADIODIFFUSION
BEFORE / DEVANT:
Barbara Cram Chairperson / Présidente
Michel Arpin Vice-Chair, Broadcasting / Vice‑président, radiodiffusion
Rita Cugini Commissioner / Conseillère
Ronald Williams Commissioner / Conseiller
Joan Pennefather Commissioner / Conseillère
ALSO PRESENT / AUSSI PRÉSENTS:
Chantal Boulet Secretary / Secrétaire
Leanne Bennett Legal Counsel /
Conseillère juridique
Lyne Cape Hearing Manager /
Gérante de l'audience
HELD AT: TENUE À:
Delta Regina Delta Regina
1919 Saskatchewan Drive 1919, promenade Saskatchewan
Regina, Saskatchewan Regina, Saskatchewan
November 1, 2006 le 1 novembre 2006
- iv -
TABLE DES MATIÈRES / TABLE OF CONTENTS
PAGE / PARA
REGINA - PHASE I
PRESENTATION BY / PRÉSENTATION PAR:
Aboriginal Voices Radio Inc. (AVR) 764 / 3743
Natotawin Broadcasting Inc. 857 / 4245
REGINA - PHASE II
PRESENTATION BY / PRÉSENTATION PAR:
(no appearances)
REGINA - PHASE III
PRESENTATION BY / PRÉSENTATION PAR:
Rawlco Radio Ltd. 915 / 4596
Communications Management Inc. 927 / 4655
Hospitals of Regina Foundations Inc. 971 / 4889
Paul Martin Communications 975 / 4913
Neil Meckelborg 987 / 4979
MapleMusic & Open Road Recordings 998 / 5034
The Good Brothers 1003 / 5057
The Poverty Plainsmen 1005 / 5067
Birdsong Communications 1007 / 5074
Jennifer Jade Kerr 1021 / 5149
Zbitnew and Associates 1030 / 5186
Lighthouse To All Nations 1036 / 5208
Shelan Schnell 1042 / 5231
Regina Evangelical Ministerial Association 1046 / 5248
Harvard Broadcasting Inc. 1052 / 5277
- v -
TABLE DES MATIÈRES / TABLE OF CONTENTS
PAGE / PARA
REGINA - PHASE IV
PRESENTATION BY / PRÉSENTATION PAR:
Aboriginal Voices Radio Inc. 1067 / 5368
Radio CJVR Ltd. 1068 / 5374
Touch Canada Broadcasting Inc. 1069 / 5381
Standard Radio Inc. 1073 / 5403
Newcap Inc. 1082 / 5459
SASKATOON - PHASE I
PRESENTATION BY / PRÉSENTATION PAR:
Newcap Inc. 1090 / 5494
Regina, Saskatchewan / Regina (Saskatchewan)
‑‑‑ Upon commencing on Wednesday, November 1, 2006
at 0830 / L'audience débute le mercredi
1 novembre 2006 à 0830
LISTNUM 95 \l 1 \s 37353735 THE CHAIRPERSON: Order please.
LISTNUM 95 \l 13736 Good morning, ladies and gentlemen. Today of course is day one of Gainer‑Gate. Gainer has been punted from McMahon Stadium. The province is in shock and awe.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 13737 THE CHAIRPERSON: As you know, of course ‑‑ and I'll give you non‑CFL speak ‑‑ the Roughriders' mascot, Gainer the Gopher has been expelled for the play‑off game this weekend. The province is just aghast.
LISTNUM 95 \l 13738 Nonetheless, I'll pass it over to Madam Secretary.
LISTNUM 95 \l 13739 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 13740 Good morning everyone. We will now proceed with item 15 on the agenda which is an application by Aboriginal Voices Radio Inc., AVR, for a licence to operate an English and Aboriginal‑language Native type B FM radio undertaking in Regina.
LISTNUM 95 \l 13741 The new station would operate on frequency 96.1 megahertz, channel 241C, with an effective radiated power of 100,000 watts, non‑directional antenna, antenna height of 146.2 metres.
LISTNUM 95 \l 13742 Appearing for the applicant is Mr. Lewis Cardinal who will introduce his colleagues. You will then have 20 minutes for your presentation. Please go ahead ‑‑ Mr. Hill will introduce his colleagues. My apologies.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 13743 MR. HILL: Thank you.
LISTNUM 95 \l 13744 I'd like to say good morning to everyone. It's very nice to be here before you today. Chair, Members of the Commission, Commission staff, colleagues and broadcasters and ladies and gentlemen, my name is Jamie Hill. I'm the president of the Aboriginal Voices Radio Inc.
LISTNUM 95 \l 13745 We are particularly excited about your appearance before the Commission today in support of our application for a new radio service for the historic city of Regina. I would like to now introduce to you the members of the AVR team.
LISTNUM 95 \l 13746 On your far right is Lewis Cardinal, the vice president of AVR. Lewis is an Aboriginal relations consultant to the City of Edmonton. He is also the founder and president of the newly informed ‑‑ newly formed Indigenous Media Institute and the founder and co‑Chair of the Global Indigenous Dialogue.
LISTNUM 95 \l 13747 As well, Lewis is a recent recipient of the Alberta Centennial Medal for his work in diversity, multiculturalism, and human rights and is this year being honoured with the National Aboriginal Achievement Award for Community Service.
LISTNUM 95 \l 13748 Beside Lewis is J. Robert Wood, AVR's management consultant. Bob has provided management consulting services for some of Canada's largest broadcasters from coast to coast.
LISTNUM 95 \l 13749 Prior to that, he spent 17 years in the CHUM Group as national program director and manager of CHUM and CHUM‑FM. He led the CHUM team in the establishment of FACTOR and was one of the first broadcasters inducted into the Canadian Music Industry Hall of Fame.
LISTNUM 95 \l 13750 On my right is Roy Hennessy, AVR's general manager. Roy has served as general manager of a number of Standard and Moffat stations in Toronto, Calgary, Edmonton and Vancouver. He is a past president of FACTOR, has served on many industry boards and was recognized for his contribution to the broadcasting industry as a recipient of the first annual President's Award by the Ontario Association of Broadcasters.
LISTNUM 95 \l 13751 Beside Roy is Patrice Mosseau, AVR's program director and on‑air host. Patrice has served on FACTOR selection committees and is a member of Canadian Women in Communications and is a multiple award recipient for her work in radio.
LISTNUM 95 \l 13752 Patrice is also very active in her community as vice president of the board for the Native Women's Resource Centre in Toronto. She is a member of the Metis and Ojibwe Nations.
LISTNUM 95 \l 13753 And on your far left is Grant Buchanan of McCarthy Tetrault LLP, our legal counsel.
LISTNUM 95 \l 13754 As for myself, in addition to serving as president of AVR, I am a co‑founder of Knapp Media Inc. We publish a magazine, the Smithsonian's National Museum of the American Indian. The magazine is the most widely circulated Native magazine in the world.
LISTNUM 95 \l 13755 Previously I served as communications and information systems analyst for the chiefs of Ontario and worked as a director of economic development for the Ontario Federation of Indian Friendship Centres.
LISTNUM 95 \l 13756 We would like to acknowledge the Saulteaux, Cree and Assiniboine people in whose traditional territories we are gathered today.
LISTNUM 95 \l 13757 We also want to recognize the Metis people as well as the kind people of Regina. We would like to thank all of them for the graciousness we have been afforded so far.
LISTNUM 95 \l 13758 I would now like to begin our formal presentation. The board of directors of AVR and I, are of one mind, that the building of a national network of radio stations that brings together the hopes and dreams of Aboriginal people is a necessity.
LISTNUM 95 \l 13759 We know that the Commission has heard from AVR many times on this subject and that the Commission has granted AVR a licence on each occasion that it has been requested.
LISTNUM 95 \l 13760 We know you have agreed with AVR's vision in the past and we respectfully ask that you do so again here in Regina.
LISTNUM 95 \l 13761 We are in the midst of creating the first national Aboriginal radio network in the world. The Canadian Broadcasting system has the resources to allow this to occur and the Broadcasting Act says that when that moment arrives, service should be extended.
LISTNUM 95 \l 13762 As you know, AVR has a unique profile. It is a national service with a national network licence, but it has a much bigger role to fill as the plan is to offer local service in many Canadian urban centres.
LISTNUM 95 \l 13763 The national network acts as a badly needed bridge from one Aboriginal community to another and allows for discourse, healing and the exchange of stories and events between Aboriginal people across the country.
LISTNUM 95 \l 13764 It is essential that the Aboriginal community here in Regina join the other Aboriginal communities across Canada in the AVR solution. Regina has an estimated population hovering around the 200,000 mark, of which Aboriginal people number close to 10 percent or 20,000.
LISTNUM 95 \l 13765 In the 2001 Statistics Canada Aboriginal people survey there were 9,880 North American Indians and 4,110 Metis people. The current national trend of migration of Aboriginal people to urban areas is a fast rising ‑‑ and a fast rising birth rate dictates an expected population surge in Regina now and in the future with some demographers predicting up to 50 percent First Nations population in Saskatchewan within a few generations.
LISTNUM 95 \l 13766 MR. CARDINAL: There are 12 radio stations on air in Regina and virtually no Aboriginal presence on any of then. Our new AVR Regina station will dramatically increase the diversity of radio programming in the market by immediately introducing a radio service dedicated to reflecting the needs and interests of Regina's First Nations, Inuit, and Metis communities. This new service will be a tremendous benefit to those community members and a real alternative.
LISTNUM 95 \l 13767 It is difficult for me to contemplate a national Aboriginal service like AVR without Regina in it. Moreover, there is a significant pent up demand for the programming featured on AVR.
LISTNUM 95 \l 13768 A research report conducted for AVR by Peter Doering Consultants in November of 1999, that survey of Canadians revealed a number of compelling statistics. Canadians from coast to coast overwhelmingly approve of an Aboriginal national radio service.
LISTNUM 95 \l 13769 Indeed, the respondents from the City of Regina were 90 percent in favour of the AVR network. A very large percentage of those Regina respondents agreed the following goals were important for AVR to achieve.
LISTNUM 95 \l 13770 First goal, provide exposure and support appreciation for Aboriginal culture. Ninety‑seven percent of Regina respondents agreed with that. Increase understanding between Aboriginal and non‑Aboriginal Canadians, 92 percent agreed with that. Help sensitive ‑‑ help sensitize the wider community regarding the interests and concerns of Aboriginal Canadians, 91 percent. Encourage Aboriginal self‑sufficiency, 90 percent.
LISTNUM 95 \l 13771 AVR is concerned about the great possibility of many Aboriginal languages becoming extinct. There are between 53 and 70 known Aboriginal languages, but many are only used by elders and will die with them.
LISTNUM 95 \l 13772 In addition to the promotion of Aboriginal Canadian languages in the English language portion of this schedule, AVR will, as it does in every other market, ensure that no less than 2 percent of all programming during the broadcast week be spoken word programming in an Aboriginal Canadian language and no less than 2 percent of all vocal musical selections played during each broadcast week in an Aboriginal Canadian language.
LISTNUM 95 \l 13773 I am pleased to advise the Commission that last month, Mr. Ron Ignace, the Chair of the task force in Aboriginal languages initiative joined AVR's board of directors where his expertise will be greatly appreciated and will be invaluable.
LISTNUM 95 \l 13774 The two Aboriginal language conditions of licence mentioned above, together with the requirement that a minimum of 25 percent of all programming be spoken word programming, including news, and a minimum of 35 percent of all musical selections from category 2 be Canadian selections, played in their entirety, have formed the backbone of the regulatory underpinning of AVR's many services. AVR meets or exceeds all of these thresholds and will continue to do so.
LISTNUM 95 \l 13775 Chair and Members of the Commission, for a national Aboriginal service to be effective, it must be able to both send and receive programming of relevance from a variety of communities in Canada and not just from Toronto.
LISTNUM 95 \l 13776 So we believe strongly in local Aboriginal content. Moreover, it is vital that the Aboriginal community be able to access the service as Aboriginal people constitute an impoverished subset of Canadian society, free over‑the‑air local radio will remain their primary source for many years to come.
LISTNUM 95 \l 13777 Finally, it is worth recalling that AVR features virtually 100 percent Aboriginal programming during the broadcast week. Ours is not a cross‑subsidy model. We are a truly Aboriginal service each and every broadcast day.
LISTNUM 95 \l 13778 I would like to ask Patrice to speak more about after the programming plans for AVR Regina.
LISTNUM 95 \l 13779 MS MOUSSEAU: AVR radio service in Regina will offer a varied programming menu. AVR's programming will reflect the Aboriginal Canadian experience.
LISTNUM 95 \l 13780 Newscasts, public affairs programs and open‑line talk shows will all address the needs, interests, and concerns of First Nations, Inuit, and Metis Canadians, particularly those who live in large urban centres like Regina, where the Aboriginal population is growing at a much greater rate than the population at large.
LISTNUM 95 \l 13781 The network programming schedule will include full Aboriginal news reports, national phone‑in programs, a women's round table discussion, focus programs on language, youth, elders, health, et cetera, as well as specialty music programs featuring artist profiles, traditional music, blues, jazz, country, et cetera.
LISTNUM 95 \l 13782 The new AVR service in Regina will feature more than 32 hours of ‑‑ a week of local programming. The showcase will be the Regina morning show which will air Monday to Sunday 6 a.m. to 10 a.m. Among other things, this locally produced program will feature a variety of interviews, surveillance reports, Aboriginal music and local banter.
LISTNUM 95 \l 13783 AVR will broadcast a number of newscasts which will aggregate more than three ‑‑ thirty ‑‑ sorry, three and a half hours per week. New story selection will focus on ‑‑ on events which impact Canada's urban Aboriginal communities, and that have been overlooked and under‑reported by other news sources.
LISTNUM 95 \l 13784 Additional priority will be given to providing a venue for the expression of non‑mainstream viewpoints on current matters of the day. Source material from newscasts will come from Internet‑based, free news services, materials provided through cooperative arrangements with other local and regional alternative news sources and network‑produced reports. Original reportage will increase with the developing capacity of the news department.
LISTNUM 95 \l 13785 AVR also proposes to create a three‑minute feature to be called Community Calendar, to provide a schedule of performances and other events taking place in Regina and surrounding areas. In addition, the Regina station will be responsible for creating local programming for inclusion in network programming dealing with artist profiles, interviews, talent development, and concert reviews, et cetera.
LISTNUM 95 \l 13786 As noted earlier, AVR also proposes the same condition of licence requiring 25 percent of the broadcast week to be comprised of spoken word programs as it is found elsewhere on AVR services throughout Canada.
LISTNUM 95 \l 13787 In addition to the local programming already discussed, AVR will feature a number of national spoken‑word programs that will become available to Regina listeners.
LISTNUM 95 \l 13788 While spoken word will be a significant component of the AVR Regina schedule, the station will also feature a mix of primarily Canadian and worldwide Aboriginal artists in a broad range of genres. Program hosts will provide informed commentary on the artist presented, along with a variety of education ‑‑ educational and entertaining Aboriginal Canadian perspectives on issues of the day.
LISTNUM 95 \l 13789 The widespread national availability of the AVR radio service has already dramatically increased exposure to the work of Aboriginal Canadian artists. Encouraging an increased awareness of Aboriginal culture, AVR will play a leading national role in the development and radio exposure of Native musical and spoken‑word talent.
LISTNUM 95 \l 13790 AVR has already begun the development of a national archive of Aboriginal Canadian artists. Currently there are 70 ‑‑ 7,500 individual selections performed by 658 artists and groups. The majority of the programming on AVR is drawn from this growing and important resource.
LISTNUM 95 \l 13791 AVR's conditions of licence across Canada require that at least 35 percent of the musical selections on AVR be Canadian. AVR actually does much better than this, playing somewhere between 45 and 60 percent Canadian selections all by Aboriginal artists.
LISTNUM 95 \l 13792 AVR's over‑delivery will be no different in Regina. A recent monitor of AVR by the Commission staff indicated more than 46 percent Canadian selections. However, many of the Aboriginal Canadian artists featured on AVR have not even yet been found on the Commission's current database. This resulted in a finding of a lower percentage of Canadian spins than we know to be the case.
LISTNUM 95 \l 13793 AVR has since agreed to assist the Commission by confirming the Canadian content status of these Aboriginal Canadian artists who are not currently in the Commission's database.
LISTNUM 95 \l 13794 Once this extensive project is complete, AVR's Aboriginal Canadian content level will be found closer to 60 percent. AVR will aggressively promote the involvement of Aboriginal Canadian artists through regular airplay, interview appearances, guest hosting and live studio performances. AVR will encourage live music by offering extensive free promotion of the upcoming performances of Aboriginal artists.
LISTNUM 95 \l 13795 MR. HILL: In closing today I want to thank the Chair and members and staff of the Commission and the other licence applicants who are our colleagues in the broadcast industry.
LISTNUM 95 \l 13796 We want to thank the indigenous people of this area for permitting us to gather on their traditional territory for these hearings and we thank the Creator for our blessings.
LISTNUM 95 \l 13797 The Broadcasting Act, section 3(1)(d)(iii) states that the Canadian broadcasting system should reflect the special place of Aboriginal people within Canadian society.
LISTNUM 95 \l 13798 Section 3(1)(o) of the Act states that programming that reflects the Aboriginal cultures of Canada should be provided within the Canadian Broadcasting system as resources become available for that purpose.
LISTNUM 95 \l 13799 The boards of directors of AVR gratefully acknowledge the support of Phil Fontaine, the National Chief of the Assembly of First Nations; George Erasmus, co‑Chair of the Royal Commission on Aboriginal People; Perry Bellegarde, former Grand Chief of the Federation of Saskatchewan Indian Nations and the Regional Chief of Saskatchewan; Beverley Jacobs, president of the Native Women's Association of Canada; Vera Pawis‑Tabobondung, president of the National Association of Friendship Centres; Marg Friesch, coordinator of the Circle of Aboriginal Community Voices here in Regina; Don Ross, president of Premier Developments; and the 90 percent of the respondents to the Doering survey who live in Regina and who reported they fully support the need for a national Aboriginal radio service.
LISTNUM 95 \l 13800 We are also delighted to have received strong support from such stars of the Aboriginal Canadian music scene as John Arcand, Donny Parenteau, Eekwol, and Andrea Menard. They understand the value of a national Aboriginal radio service both to their own development as musicians but also to the Aboriginal communities from which they come.
LISTNUM 95 \l 13801 Thank you.
LISTNUM 95 \l 13802 And we would be pleased to respond to your questions. All my relations.
LISTNUM 95 \l 13803 THE CHAIRPERSON: Thank you, Mr. Hill.
LISTNUM 95 \l 13804 Vice‑Chair Arpin...?
LISTNUM 95 \l 13805 COMMISSIONER ARPIN: Thank you, Madam Chair. Thank you, Mr. Hill and your team.
LISTNUM 95 \l 13806 I will address my question to you, but you may ask where ‑‑ who you think is most appropriate to answer the question to the members of your team.
LISTNUM 95 \l 13807 I know that we ‑‑ at this hearing we will have the opportunity to see you two other times, but ‑‑ so I will, today, restrict my questions only to the Regina application. I know that tomorrow we will have an opportunity to hear your Saskatoon application and on Friday we will hear your renewal. I will want you not to refer to the current situation at CKV but to deal specifically with the Regina item so that we, for the record, have a complete understanding of your plan for Regina.
LISTNUM 95 \l 13808 So could you, as a first question, explain to the Commission why at this time in the evolution of AVR it is ‑‑ you have applied for a service in this market in Regina?
LISTNUM 95 \l 13809 MR. HILL: Yes.
LISTNUM 95 \l 13810 COMMISSIONER ARPIN: I think you partly gave the answer in your oral presentation, but you may want to expand.
LISTNUM 95 \l 13811 MR. HILL: Okay. Yes, Commissioner Arpin, I guess the primary reason is we feel very confident and, you know, strong about the idea that this national radio service is extremely important to Aboriginal people and we think that it's a ‑‑ as important to the Aboriginal community in Regina as is important as any other urban city.
LISTNUM 95 \l 13812 The Aboriginal people of Regina do not have a radio service which speaks specifically to them which reflects, you know, back to them their Aboriginal identity. So that is, I guess, the first reason.
LISTNUM 95 \l 13813 The second reason, I think, is the fact that, you know, when this has happened in the past with AVR that we are faced with a situation where potentially we may not be able to have the opportunity to achieve a licence in Regina for a very long time.
LISTNUM 95 \l 13814 So the fact that the call for the Regina licence has come about, we feel that we don't want to miss the opportunity to be able to broadcast into Regina to serve the Aboriginal population here. And maybe Lewis can comment further?
LISTNUM 95 \l 13815 MR. CARDINAL: Yes. I just want to add to the comment of having the reflection of the Aboriginal voice brought back to the Aboriginal community here in the City of Regina.
LISTNUM 95 \l 13816 Cultural reflectivity is a very important part and process of strengthening our Aboriginal communities, and we know that if we can create that space and opportunity for the Aboriginal voice to be heard far and wide around this region, we will be contributing not only to the wellbeing of Aboriginal people in Canada, but also to the wellbeing of the community as a whole.
LISTNUM 95 \l 13817 MR. HILL: Just to finish that answer, you know, one of the primary missions of Aboriginal Voice Radio is to improve the lives of Aboriginal people. And, you know, we would certainly like the opportunity to help in that regard as much as we can as a national radio service for the community in Regina.
LISTNUM 95 \l 13818 COMMISSIONER ARPIN: So thank you. One of the first question that is ‑‑ appears to be obvious, at least for the Commission, is how will you be able to finance the implementation of a new service for Regina?
LISTNUM 95 \l 13819 MR. HILL: Commissioner, we've done projections which we have ‑‑ financial projections for several years going out, looking out, and we've submitted financial projections that show that we have the financial wherewithal as far as, you know, getting the Regina operation up and running and sustaining it.
LISTNUM 95 \l 13820 Our projections are very conservative and they're based upon revenue streams which are virtually guaranteed because they're long‑term commitments from broadcast benefit packages.
LISTNUM 95 \l 13821 We've also added advertising, and I guess there's some grant contributions where we would apply for grants, but we have extremely conservative advertising projections for a national radio service. They're very, very low.
LISTNUM 95 \l 13822 So we wanted to give you a financial picture going out that is ‑‑ you can have a very high degree of confidence in because they're virtually guaranteed revenue streams.
LISTNUM 95 \l 13823 COMMISSIONER ARPIN: I don't think that those financial projections have been filed with the Commission, have they?
LISTNUM 95 \l 13824 MR. HILL: I thought they did. But for sure we can file them with the Commission and ensure that you have them if we haven't yet, but I was under the impression that we did.
LISTNUM 95 \l 13825 COMMISSIONER ARPIN: Looking at ‑‑
LISTNUM 95 \l 13826 MR. HILL: I believe we'd be able to give you those ‑‑ to you today.
LISTNUM 95 \l 13827 COMMISSIONER ARPIN: Okay, fine. Well, the ‑‑
LISTNUM 95 \l 13828 MR. HILL: Maybe if I could just add that, you know, in the development of the AVR national network there is a sequence that we see, and that is the first thing is to develop the stations and get the financial wherewithal to put ‑‑ to obtain licences and put the stations on the air.
LISTNUM 95 \l 13829 The next thing is to improve the programming to a point where it's high quality programming and of course, following that, we would be able to develop a ‑‑ to a pretty strong sales effort once we do things as far as the programming and getting the stations on the air.
LISTNUM 95 \l 13830 COMMISSIONER ARPIN: The ‑‑ other than having financial projections that you have developed, the ‑‑ do you have the necessary documentation that will help us to understand ‑‑ well, we are certainly aware of the benefit packages that has been approved in the past, so we know that the Commission has approved a good number of broadcasters' proposal to support the development of AVR.
LISTNUM 95 \l 13831 But other than that, do you have any other documentation that supports the ‑‑ your ‑‑ they're ‑‑ your availability of funds?
LISTNUM 95 \l 13832 MR. HILL: Well, you know, we put a lot of work into the financial projections to ensure that we were going to be on the mark regarding the financial future, so we can provide extensive information to the Commission and, you know, we'd certainly be willing to do that, Commissioner Arpin.
LISTNUM 95 \l 13833 COMMISSIONER ARPIN: Yeah. And obviously some of it will be filed on a confidential basis so there ‑‑ if you think that you require that these documents not be put in the public record, staff and legal ‑‑ our legal people will surely look at and advise if it is ‑‑ if it could be filed in ‑‑ under confidence.
LISTNUM 95 \l 13834 MR. HILL: Okay. We appreciate that very much.
LISTNUM 95 \l 13835 COMMISSIONER ARPIN: I know other than ‑‑ obviously you addressed the issue of capital expenditures, but then there's the operational expenditures of a transmitter, and you also have programming plans and you ‑‑ and pre‑launch operating cost.
LISTNUM 95 \l 13836 Do you have the ‑‑ do you have on hand the financing to do such an investment for the Regina application?
LISTNUM 95 \l 13837 MR. HILL: Yes, Commissioner. We have projected enough money. As a matter of fact, moving out into the future year by year in the documents that we submit, you'll find that we actually are in a surplus situation moving out ‑‑ as we move out.
LISTNUM 95 \l 13838 And this ‑‑ these have taken into account getting the stations on the air and providing a level of service. I have to say that, you know, the aspiration of AVR is to provide the most premium high quality service, you know, that anyone could provide for Aboriginal people. And we do recognize that that is contingent upon finances, you know, having the financial wherewithal to do a premium service.
LISTNUM 95 \l 13839 What we've projected, I would say, is a moderate service because, you know, we wanted to indicate to you that we could do that with a high degree of confidence based upon virtually ‑‑ the ‑‑ based upon revenue streams that are almost virtually guaranteed.
LISTNUM 95 \l 13840 But I want to say that we do believe amongst the AVR team that we are going to out‑perform what the projections are that we're giving to you. As you'll see, once you get a chance to take a look at the ‑‑ the advertising revenues, for instance, are extremely low.
LISTNUM 95 \l 13841 So we believe that we're going to, you know, have the financing to be able to, over a period of time, increase the quality of the programming that is coming into Regina.
LISTNUM 95 \l 13842 COMMISSIONER ARPIN: Now, I notice in this morning's oral presentation that you have increased the local content from 25 to 32 hours of programming on a weekly basis. They ‑‑ you're ‑‑ I know that the application was based on 25 hours and 51 minute of local programming. Now, this morning, in your oral presentation you referred to 32 hours.
LISTNUM 95 \l 13843 We will surely have an opportunity to discuss later on the content of those 32 hours, but that means that you will probably need more staff than you ‑‑ what you have prepared because I notice that when I'm looking at your application, the ‑‑ I know that you have identified that you will need three programming staff, including one journalist, announcer for in excess of ‑‑ well, I have here now for 32 hours.
LISTNUM 95 \l 13844 You have also indicated that the roll‑out of the programming will be tied to a number of funding opportunities and initiative in which you have not elaborate ‑‑ but the ‑‑ well, we have all ‑‑ with respect to the funding initiative, other than the ‑‑ that the monies that you're getting through benefits and now you said "limited advertising revenues" and ‑‑ but you did mention grants. What type of grants are you talking about and what is really available for AVR?
LISTNUM 95 \l 13845 MR. HILL: Well, I think there are a number of grant opportunities, Commissioner. We have been successful in the past in gaining both federal grants and provincial grants. For instance, in Ontario we were provided with a grant from the Ontario Trillium Foundation of 180,000.
LISTNUM 95 \l 13846 So as we build the programming into each urban centre, we believe that we will be able to access provincial types of grants to help with the local effort, as well as to continue to access federal grants that would provide contributions to help with the entire national radio network.
LISTNUM 95 \l 13847 COMMISSIONER ARPIN: But when you are getting grants from one province, can you use the proceeds for ‑‑ to invest in another province?
LISTNUM 95 \l 13848 MR. HILL: Well ‑‑
LISTNUM 95 \l 13849 COMMISSIONER ARPIN: Because you mentioned the Ontario ‑‑ and Ontario program. Could you use the proceeds of that program for Saskatchewan?
LISTNUM 95 \l 13850 MR. HILL: Well, we believe that we'll be able to do that because we are going to provide local programming, and I think those grants would be specific to the local programming. So as far as we know right now, we would be able to do that.
LISTNUM 95 \l 13851 I mean it's going to vary from each province ‑‑
LISTNUM 95 \l 13852 COMMISSIONER ARPIN: Yeah.
LISTNUM 95 \l 13853 MR. HILL: ‑‑ depending upon what their programs are, but ‑‑ yeah, Roy can ‑‑
LISTNUM 95 \l 13854 MR. HENNESSY: The ‑‑ good morning. The Trillium Foundation grant was specifically intended to be used for the development of an Aboriginal news department, which included news stringers in various regions of the Province of Ontario to ensure that we were reaching out to that organization.
LISTNUM 95 \l 13855 The application for that grant began before we had expanded our service, but they included the monies to be used to train and develop Aboriginal news staff as well as reaching out through the province, so a multi‑purpose application to that funding. Those are the types of grants that we're seeking.
LISTNUM 95 \l 13856 COMMISSIONER ARPIN: We'll now get to the specific of your application and the note that ‑‑ well, staff is ‑‑ has noted some inconsistencies between your programming grid and other responses that we've got out of your ‑‑ in your letter dated August 4th, 2006, and I have a series of question.
LISTNUM 95 \l 13857 Among ‑‑ one of them is that you've stated that you will be offering a best‑of‑the‑week recap of your weekday morning show on every Saturday morning between 6 a.m. and 10 in your programming grid. However, you have indicated that you will also offer best‑of‑the‑week recaps on Sundays.
LISTNUM 95 \l 13858 Would ‑‑ will you indeed be offering the same ‑‑ this recap program on Sundays or on Saturdays and ‑‑ or is it ‑‑ will it be a repeat of the Saturday program?
LISTNUM 95 \l 13859 MR. HILL: Commissioner, if I could, I'd like to ask our program director Patrice Mosseau to respond to that.
LISTNUM 95 \l 13860 MS MOUSSEAU: Yes, in fact we will be continue ‑‑ we're doing the best‑of morning show on both Saturday and Sunday.
LISTNUM 95 \l 13861 COMMISSIONER ARPIN: And is the Sunday a repeat of the Saturday or is it two different programs?
LISTNUM 95 \l 13862 MS MOUSSEAU: We're looking at doing two different programs at this time. Of course looking at funding, we may do a best‑of on both weekend days to start.
LISTNUM 95 \l 13863 COMMISSIONER ARPIN: Okay. Although your program grid does not express as much, you have indicated that you would be providing three five‑minute weekly review features on Saturday mornings. Could you please confirm whether this in fact ‑‑ if it's the case? And so could you also, please, provide us with a description of ‑‑
LISTNUM 95 \l 13864 MS MOUSSEAU: Yes.
LISTNUM 95 \l 13865 COMMISSIONER ARPIN: ‑‑ these features?
LISTNUM 95 \l 13866 MS MOUSSEAU: The weekly review features will be ‑‑ like, the best‑of top news stories from the week previous will then be inserted into our best‑of morning show for the weekends on the Saturday and Sunday.
LISTNUM 95 \l 13867 COMMISSIONER ARPIN: You've also indicated that you will be providing seven three‑minutes community calendar features between Monday ‑‑
LISTNUM 95 \l 13868 MS MOUSSEAU: Mmhmm.
LISTNUM 95 \l 13869 COMMISSIONER ARPIN: ‑‑ and Sunday. Will those ‑‑ these be seven day ‑‑ daily features or seven ‑‑
LISTNUM 95 \l 13870 MS MOUSSEAU: It's very confusing. We actually had a small typo there.
LISTNUM 95 \l 13871 COMMISSIONER ARPIN: Okay.
LISTNUM 95 \l 13872 MS MOUSSEAU: It says seven minutes. I think at the chart that you're looking at, it's actually ‑‑ or sorry, seven minutes total. It's actually 21 minutes per day.
LISTNUM 95 \l 13873 COMMISSIONER ARPIN: Yes.
LISTNUM 95 \l 13874 MS MOUSSEAU: So it's running seven times ‑‑ seven times a day. It's a three‑minute program running seven times a day, seven days a week.
LISTNUM 95 \l 13875 COMMISSIONER ARPIN: So ‑‑ and is it the same feature that is repeated 7 times or 21 times or is it 21 different features or ‑‑
LISTNUM 95 \l 13876 MS MOUSSEAU: Because different community events will be happening throughout the week, someone can be then updating that on a regular basis and refreshing it every couple of days.
LISTNUM 95 \l 13877 COMMISSIONER ARPIN: So at the end of ‑‑ in a given week, you ‑‑ what, you could be covering two, three different ‑‑ two, three or four different events and update those ‑‑ the feature as long as you move throughout the week?
LISTNUM 95 \l 13878 MS MOUSSEAU: Absolutely.
LISTNUM 95 \l 13879 COMMISSIONER ARPIN: You also have indicated that you will hire three staff to fulfil the local programming commitment. These commitment will include up to 49 community calendars, 15 weekly locally‑produced newscasts, 15 hours of morning show.
LISTNUM 95 \l 13880 And you've added more this morning, the compilation of the best‑of‑the‑week features, in addition to research and reporting, liaising with CKV Toronto and other station functions.
LISTNUM 95 \l 13881 In this light, could you please elaborate on the function of each of the staff members to be employed directly by the proposed undertaking? And even before going there, since you've mentioned this morning 32 hours of local programming, maybe we could start reviewing those local programs so that we have a better understanding of what you ‑‑ what they are and then we could discuss staffing and the capability of this ‑‑ of these fairly limited number of people to do all that, that extensive work.
LISTNUM 95 \l 13882 MS MOUSSEAU: Mmhmm. The star of our local content, our local programming, is really the morning show. That's four hours a day, Monday to Friday, and then the reviews that happen on Saturday and Sunday.
LISTNUM 95 \l 13883 The two people that we have working on the morning and with ‑‑ in addition to another person, they'll be also doing the news and the community calendar which can then be programmed and run into as local programming throughout the schedule in Regina.
LISTNUM 95 \l 13884 COMMISSIONER ARPIN: So the ‑‑ so say if I'm running the morning shows plus the two reviews that give us 28 hours, the ‑‑
LISTNUM 95 \l 13885 MR. HENNESSY: Just ‑‑ sorry, please. Just one quick thing, the difference that we've pointed out in the calculation of the community calendar between 21 minutes a week and 21 minutes a day ‑‑
LISTNUM 95 \l 13886 COMMISSIONER ARPIN: Yeah.
LISTNUM 95 \l 13887 MR. HENNESSY: ‑‑ that's what contributes to the adjustment up to the 32 hours and 17 minutes. It's just reconciling the typo ‑‑
LISTNUM 95 \l 13888 COMMISSIONER ARPIN: Okay.
LISTNUM 95 \l 13889 MR. HENNESSY: ‑‑ against what was actually on the sheet.
LISTNUM 95 \l 13890 COMMISSIONER ARPIN: Yeah. Okay, fine. Now, you think ‑‑ well, could you help us in understanding what will be the functions of the ‑‑ your local people?
LISTNUM 95 \l 13891 MR. HENNESSY: Our roll‑out template that we will use to implement service in each of the markets that we move to commences with ‑‑ as was pointed out in one of the decisions that we received, primarily the service will come from the Toronto production centre initially and, as quickly as resources will allow, we'll introduce the local newsperson.
LISTNUM 95 \l 13892 And using technology, we can virtually create a news room in someone's home. Mortars and brick are the expensive part of our business, and that's the last thing that we'll look at moving towards on a permanent basis.
LISTNUM 95 \l 13893 But if we start out with the newsperson in Regina, their responsibility will be to contribute news, commentary, interviews, content about newsworthy items that will be of interest to people in Regina and also people across the national network.
LISTNUM 95 \l 13894 This content will be packaged as part of the major newscasts and delivered back to each of the markets across the country. If it's a story of particular interest in Regina, it will take a larger portion of the newscast than we would necessarily send to Vancouver or Calgary, if it's of more local interest.
LISTNUM 95 \l 13895 So the intent is to be 30 percent local, 30 percent regional and 40 percent national. That's our goal for the content makeup of the newscast.
LISTNUM 95 \l 13896 COMMISSIONER ARPIN: And ‑‑
LISTNUM 95 \l 13897 MR. HENNESSY: So we start with ‑‑ sorry?
LISTNUM 95 \l 13898 COMMISSIONER ARPIN: Okay, so if I understand you right, you ‑‑ that new person ‑‑ newsperson will gather the information here, will produce his ‑‑ well, his newscast or his feature, whatever the ‑‑ they have to do, they will send it to Toronto, but it could ‑‑ but it will be on ‑‑ rebroadcast only in Regina or out ‑‑ on all the network? The ‑‑
LISTNUM 95 \l 13899 MR. HENNESSY: It will be included in the national newscast, but an extended version of that can be brought into Regina if it's of ‑‑
LISTNUM 95 \l 13900 COMMISSIONER ARPIN: And Regina alone ‑‑
LISTNUM 95 \l 13901 MR. HENNESSY: ‑‑ more interest
LISTNUM 95 \l 13902 COMMISSIONER ARPIN: ‑‑ but aired ‑‑
LISTNUM 95 \l 13903 MR. HENNESSY: And Regina alone.
LISTNUM 95 \l 13904 COMMISSIONER ARPIN: But aired ‑‑
LISTNUM 95 \l 13905 MR. HENNESSY: We have the capability to do ‑‑ or we will have the capability to do that with the new master control system that we are on ‑‑ it's a delivery system that we will be installing. We have the space in our facility in Toronto. We're just waiting for the arrival of a few more dollars and we'll have that system in place where we can, from a central control, deliver the content to each of the stations across country.
LISTNUM 95 \l 13906 COMMISSIONER ARPIN: So your staff will not necessarily be, as you said, the ‑‑ it will work from their basement or wherever they ‑‑ they're personally located? You won't necessarily have a Regina facility with studios and production facility? It will be that ‑‑
LISTNUM 95 \l 13907 MR. HENNESSY: At the outset, no. That will have to be addressed as soon as we introduce the Regina morning show ‑‑
LISTNUM 95 \l 13908 COMMISSIONER ARPIN: Yeah.
LISTNUM 95 \l 13909 MR. HENNESSY: ‑‑ because we'll need a central location for guests, for artists, for the staff themselves to work from.
LISTNUM 95 \l 13910 COMMISSIONER ARPIN: But as ‑‑ but for ‑‑
LISTNUM 95 \l 13911 MR. HENNESSY: A similar thing is ‑‑ will happen. We are in discussions with the Weather Network and, very soon, we are going to introduce a national weather forecast and a more detailed local forecast that's ‑‑ which will be dropped into each of our stations.
LISTNUM 95 \l 13912 So again, using technology and relationship with the Weather Network, we will be able to provide travellers' weather ‑‑ and this is another way that we're dealing with the issue of the multitude of Aboriginal languages and that we're encouraging our morning show host ‑‑ the Inuit have 200 words for snow. I can only think of about four, one of which I can use here.
LISTNUM 95 \l 13913 They have a large number of words, and we're going to encourage that type of use of the language to be included into the programming, so that it becomes an item of interest. It becomes something that can be, in a humorous way, entertaining/educational, but it becomes a positive experience for people who are listening.
LISTNUM 95 \l 13914 Again, those sorts of things can be done from the master control and dropped into the individual locations.
LISTNUM 95 \l 13915 MR. WOOD: Mr. Chairman, I might also mention that there would be a 1‑800 listener line. There will be a news tip award line where we would pay $100 a week and $1,000 a year for the best news tip award. There will be the AVR news correspondent in the community and there would be contact with the local Friendship Centres for more of the Regina input into the national service.
LISTNUM 95 \l 13916 COMMISSIONER ARPIN: Now, that's the first stage, and it's in ‑‑ to start with the news gathering and news producing out of Regina. Then ‑‑ and that will employ one person?
LISTNUM 95 \l 13917 MR. HENNESSY: In the news position? Yes.
LISTNUM 95 \l 13918 COMMISSIONER ARPIN: Yes.
LISTNUM 95 \l 13919 MR. HENNESSY: Yes.
LISTNUM 95 \l 13920 COMMISSIONER ARPIN: Okay. Then later, as finances are available, then you will ‑‑ you're planning to have a morning show, and it's when you will have that morning show that you will be also able to produce the best of the week and not before?
LISTNUM 95 \l 13921 MR. HENNESSY: Correct.
LISTNUM 95 \l 13922 COMMISSIONER ARPIN: Correct. So when ‑‑ and how many employees will be involved in the morning show?
LISTNUM 95 \l 13923 MR. HENNESSY: For the local production of the morning show ‑‑
LISTNUM 95 \l 13924 COMMISSIONER ARPIN: Yes.
LISTNUM 95 \l 13925 MR. HENNESSY: ‑‑ we'll have the newsperson, the morning host who is the anchor for the show does interviews, that type of thing. There will be a producer who operates the morning show and works to edit, putting together a community calendar, a multipurpose position such as that. And we also have a technician for the station that's on a service contract to maintain us technically.
LISTNUM 95 \l 13926 COMMISSIONER ARPIN: And that will ‑‑ at which stage of your development are you figuring out that you will be able to implement the morning program, so having local facilities?
LISTNUM 95 \l 13927 MR. HENNESSY: As quickly as possible. We are ‑‑
LISTNUM 95 \l 13928 COMMISSIONER ARPIN: And ‑‑
LISTNUM 95 \l 13929 MR. HENNESSY: ‑‑ we are very much aware of our ‑‑
LISTNUM 95 \l 13930 COMMISSIONER ARPIN: And in your own words, what the words "quickly" means?
LISTNUM 95 \l 13931 MR. HILL: Commissioner ‑‑
LISTNUM 95 \l 13932 MR. HENNESSY: 3/25 September ‑‑
LISTNUM 95 \l 13933 MR. HILL: Commissioner, I think that we have been able to put together a very strong team that's very focused on the financing issue going forward.
LISTNUM 95 \l 13934 And as I had mentioned, we want to deliver a premium service and we took that very seriously. And we know we have a national radio network to build and we have specifically hired people whose job it is to, I guess, you know, optimize our ability to achieve the type of financing that's required.
LISTNUM 95 \l 13935 MR. HENNESSY: One ‑‑
LISTNUM 95 \l 13936 MR. HILL: There are more people working on this than what is sitting here at the table.
LISTNUM 95 \l 13937 MR. HENNESSY: One of the things that was mentioned was the low advertising revenues. I think we should make a distinction between advertising and our concept of commercial advertising and what we are really attempting to create. We do not see ourselves as a commercial competitor. We don't believe we will be.
LISTNUM 95 \l 13938 We're not going to be comparing cost per point with the commercial operations in the market, but we do ‑‑ and we have one of our consultants, one of our friends, has had some conversations with national public radio and public broadcasting in the US. And we're using that as a model and we have created presentation packages that we can take nationally or to large corporations in the communities we're serving, to seek funding ‑‑ not for advertising, but to support the development of a program of a feature, whether it's a feature on community welfare and health that could be sponsored by an organization of food producers or it's a wide open range or scope that we're going after to seek these dollars to help us fund and develop the programming.
LISTNUM 95 \l 13939 And they will receive the appropriate credits as you hear on public radio or you see on PBS, sponsored by the generosity of this foundation and that organization.
LISTNUM 95 \l 13940 We have a representative in Vancouver at this point in time. We have a company in Calgary. There's people there. They've undertaken to develop this program across the prairies. They've been concentrating on the oil towers in Calgary initially because it seemed like right ‑‑ ripe picking, but they're working in that area.
LISTNUM 95 \l 13941 And we have a consultant in ‑‑ who works out of Windsor who is also working to help us develop this in Toronto to go after corporations there.
LISTNUM 95 \l 13942 So it's a different sales. It's a different product and it will be ‑‑ we don't see the money coming out of advertising budgets, more out of community relations, education and budgets of that nature that the companies have.
LISTNUM 95 \l 13943 So as we develop that, you know, quite possibly if the ‑‑ if it was a company in Regina, they would specify they wanted the money spent here, and we will be most accommodating.
LISTNUM 95 \l 13944 COMMISSIONER ARPIN: The programming plans that we are discussing now for Regina, except in Toronto, have you already start to implement part of it in the ‑‑ in other markets?
LISTNUM 95 \l 13945 MR. HILL: Well, Commissioner, we've started to ‑‑
LISTNUM 95 \l 13946 COMMISSIONER ARPIN: To go on air?
LISTNUM 95 \l 13947 MR. HILL: Yeah, we're working on it right now. We haven't set a firm date. Our intention was as soon as this hearing is finished, we're going to be into determining more of an exact time when we're going to be able to achieve those things, but we think that it's not too ‑‑ not very far into the future.
LISTNUM 95 \l 13948 COMMISSIONER ARPIN: And it ‑‑ but it's ‑‑ and you're following the same steps?
LISTNUM 95 \l 13949 MR. HILL: Yes. Yes.
LISTNUM 95 \l 13950 MR. WOOD: Mr. Chairman, I might add that had there is no resistance on the part of AVR to provide local programming. You do not have to drag us kicking and screaming to do local programming. We fully appreciate the idea that local programming generates audience. That will be a very high priority for AVR, and it's linked really, again, to when the funds become available.
LISTNUM 95 \l 13951 I think that we've dramatically understated the capability of the network to generate sales revenues through advertising. And in part, I might ask Patrice to comment on some of the listener reaction we're getting ‑‑ not just from Aboriginal people, but from all people ‑‑ to the music that we're featuring on AVR.
LISTNUM 95 \l 13952 MS MOUSSEAU: Our listeners in ‑‑ right now in Toronto, and actually we get listeners all across ‑‑
LISTNUM 95 \l 13953 THE CHAIRPERSON: Can you just speak up please?
LISTNUM 95 \l 13954 MS MOUSSEAU: Sorry.
LISTNUM 95 \l 13955 THE CHAIRPERSON: I'm sorry.
LISTNUM 95 \l 13956 MS MOUSSEAU: That's okay. I get e‑mails and phone calls every day from our listeners in Toronto and across Canada, and actually around the world, and one of the things that they keep mentioning to me is the incredible music and programming that's on AVR that's completely unavailable. There's no other station like that.
LISTNUM 95 \l 13957 And we want to be able to roll that out nationally. We want everybody in Canada to be able to hear AVR. We want all the Aboriginal communities across all the provinces, including Saskatchewan, to be a part of this national network.
LISTNUM 95 \l 13958 And I think if Saskatoon and Regina don't get the opportunity to add their voice to that network, I think it's going to do them a great disservice. And the fact is, is that people like to hear us, and we want to be heard here as well.
LISTNUM 95 \l 13959 COMMISSIONER ARPIN: Now, the local programming that we're talking about this morning, all of that will be ‑‑ in which language will it be? In the ‑‑ in Cree, in Assiniboine or in English or ‑‑
LISTNUM 95 \l 13960 MS MOUSSEAU: Shall I?
LISTNUM 95 \l 13961 MR. HILL: We ‑‑ right now, Commissioner, we're broadcasting two languages that I guess are the languages in the cities where we have this happening. The majority of the population ‑‑ and that's predominantly, right now, Cree and Ojibwe.
LISTNUM 95 \l 13962 I know there are other Aboriginal groups here and, you know, we would of course broadcast in languages that are the most relevant for each city. So I know there are Assiniboine people here, Saulteaux, in addition to Cree predominantly, and there are other First Nations as well.
LISTNUM 95 \l 13963 COMMISSIONER ARPIN: We ‑‑ yesterday we heard there were some Dakotas as well in this city, and there was a fifth one, but we check around ourself, and I don't think it was ever mentioned.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 13964 MS MOUSSEAU: We have our spoken ‑‑ or our Aboriginal language requirement that we obviously are going to hit and probably exceed as far as language lessons actually having programming spoken in Aboriginal languages.
LISTNUM 95 \l 13965 But the thing is, is because we're going to have local talent here, they're going to ‑‑ have the ability not only to speak in English to their community, but to be able to use their own language commonly and make it something that's accessible and understandable, and then the people in the community can go, "Well, yeah, this is my language and I'm hearing it on the radio." And that's going to have a lot of benefit to get people more encouraged to use their language and to learn more about it.
LISTNUM 95 \l 13966 COMMISSIONER ARPIN: Will you be doing some things for the Metis community?
LISTNUM 95 \l 13967 MS MOUSSEAU: Absolutely. In fact we already ‑‑ we have a Metis show ‑‑
LISTNUM 95 \l 13968 COMMISSIONER ARPIN: Yeah.
LISTNUM 95 \l 13969 MS MOUSSEAU: ‑‑ right now in Toronto, which probably would roll out first, or take that national program, take it over into Regina and then look to the Metis community in Regina to contribute to that show.
LISTNUM 95 \l 13970 COMMISSIONER ARPIN: Now, if things go well and over time we ‑‑ are you planning to hire more than three and a half people to operate your local programming contention?
LISTNUM 95 \l 13971 MS MOUSSEAU: Well, one of the things about AVR is we're traditional storytellers, but we're using the best technology that we can find right now to do everything as quickly, as efficiently and as inexpensively as possible.
LISTNUM 95 \l 13972 One of the benefits of that is we can have DJs that are available and broadcasting nationally from anywhere in the country, so we could have X number of staff from right here in Saskatchewan as part of the national network.
LISTNUM 95 \l 13973 COMMISSIONER ARPIN: Now, you haven't indicated that you will provide both locally‑produced and network‑produced spoken‑word programming including, like, a number of newscasts ‑‑ you know, well, we've already discussed my question. I apologize.
LISTNUM 95 \l 13974 MR. WOOD: Mr. Chairman, if I could just jump in?
LISTNUM 95 \l 13975 COMMISSIONER ARPIN: Yes.
LISTNUM 95 \l 13976 MR. WOOD: One comment about additional local reflection. There has been great interest on the part of local community groups to come forward with programs that would be heard on AVR. AVR would make that widely known, that such programming would find a platform on AVR and we would also approach organizations like the local Friendship Centre, for example, to find out if they wanted to produce a program that would be heard locally and, depending on the quality aspects of it or the program in its entirety, could be heard nationally.
LISTNUM 95 \l 13977 So it won't just be whether we have a large enough staff to accommodate local programming; there will be feedback and input coming from the community itself. In fact, there's a fair amount of pent up demand for that.
LISTNUM 95 \l 13978 COMMISSIONER ARPIN: Now, in the programming grid that you've provided us, you did mention number ‑‑ a good number of titles for network‑originated programming. However, since very little information was provided in relation to these programs, I personally consulted your Toronto website so ‑‑ where I found the ‑‑ some descriptions for Red Tales, Women's Round Table, Art Review, Metis Health, AKA American Indian Living, and Heartbeat. Could you confirm that the description of these programs provided on your website is current ‑‑ that currently is on your website, and I did check your website last week, so is this ‑‑ is that information still ‑‑
LISTNUM 95 \l 13979 MS MOUSSEAU: Program ‑‑
LISTNUM 95 \l 13980 COMMISSIONER ARPIN: ‑‑ accurate?
LISTNUM 95 \l 13981 MS MOUSSEAU: ‑‑ descriptions that are on the website are in fact correct.
LISTNUM 95 \l 13982 COMMISSIONER ARPIN: So it ‑‑
LISTNUM 95 \l 13983 MS MOUSSEAU: Now, we ‑‑
LISTNUM 95 \l 13984 COMMISSIONER ARPIN: ‑‑ they are accurate?
LISTNUM 95 \l 13985 MS MOUSSEAU: ‑‑ we do have a few more additions to make to the website. We've been pretty busy. Haven't had a chance to update it recently but, yeah, the descriptions there ‑‑
LISTNUM 95 \l 13986 COMMISSIONER ARPIN: But what ‑‑
LISTNUM 95 \l 13987 MS MOUSSEAU: ‑‑ are correct.
LISTNUM 95 \l 13988 COMMISSIONER ARPIN: ‑‑ what is on the website is accurate?
LISTNUM 95 \l 13989 MS MOUSSEAU: Yes.
LISTNUM 95 \l 13990 COMMISSIONER ARPIN: Could you ‑‑ and getting back to your morning show that you're planning to have for Regina, could you describe for us the type of content you will ‑‑ you're looking to cover? And you've mentioned local activities. You've mentioned interviews, but could you give us more ‑‑
LISTNUM 95 \l 13991 MS MOUSSEAU: This morning show is really going to be an opportunity for the people in Regina to have a showcase for their talent.
LISTNUM 95 \l 13992 One of the reasons why I'm so excited to come into this market is because the musical talent in this province is extraordinary. We've had an opportunity to have several artists send their ‑‑ send us their CDs because they are really well‑known, like Andrea Menard for example, and she gets played all the time on AVR. And there's a lot of regional musicians that haven't even had the opportunity ‑‑
LISTNUM 95 \l 13993 COMMISSIONER ARPIN: But she's played at ‑‑
LISTNUM 95 \l 13994 MS MOUSSEAU: ‑‑ to hear about it.
LISTNUM 95 \l 13995 COMMISSIONER ARPIN: ‑‑ in many other radio stations as well.
LISTNUM 95 \l 13996 MS MOUSSEAU: Yeah, she's fantastic.
LISTNUM 95 \l 13997 COMMISSIONER ARPIN: Yeah.
LISTNUM 95 \l 13998 MS MOUSSEAU: But there's a lot of hidden talent there, so on the morning show we have an opportunity for people to come in and be heard live and be heard in their communities, as well as news, weather, talk.
LISTNUM 95 \l 13999 We could have people coming in talking about Aboriginal leadership, local issues, perhaps provincial/federal politics, getting people involved in their communities, talking about the ability of people to get involved to learn languages. Maybe there's local programs here that AVR can be promoting to promote the use of Aboriginal languages and bring that back into the community.
LISTNUM 95 \l 14000 I mean really the possibilities are endless as to what we can do for Regina with the morning show.
LISTNUM 95 \l 14001 COMMISSIONER ARPIN: The ‑‑ will the morning show be more spoken driven or more music driven?
LISTNUM 95 \l 14002 MS MOUSSEAU: I see it probably about half and half. A lot of music, a lot of talk ‑‑ I mean it's a variety show.
LISTNUM 95 \l 14003 MR. CARDINAL: If you don't mind me adding to that as well? In Edmonton, for example where I'm from, there is tremendous support from the community in wanting to do any number of programming possibilities that they can come up with.
LISTNUM 95 \l 14004 And so at this point, we're experiencing a real buy‑in from the Aboriginal communities, particularly in Edmonton, who are interested in providing support, in developing programming and programming ideas. And I have to hold them back a little bit so that at least we're a bit more organized and ready for them when their opportunity comes.
LISTNUM 95 \l 14005 COMMISSIONER ARPIN: Are you on air in Edmonton?
LISTNUM 95 \l 14006 MR. CARDINAL: No, not yet.
LISTNUM 95 \l 14007 COMMISSIONER ARPIN: So the thing is that it's tough to have a program for the community when you're not yet on air.
LISTNUM 95 \l 14008 MR. CARDINAL: Absolutely. They're very excited about the opportunity that's coming, so that's what I wanted to reiterate.
LISTNUM 95 \l 14009 COMMISSIONER ARPIN: You wanted to ‑‑
LISTNUM 95 \l 14010 MR. HILL: I just wanted to comment, Commissioner, that we did talk about some, I guess, themes that would kind of position AVR. And the first and most important one in the spoken‑word portion is heritage and culture, Aboriginal heritage and culture, and Aboriginal values.
LISTNUM 95 \l 14011 We do have a show called the Wisdom of the Elders right now, and that type of, I guess, content would certainly take place as part of the morning show. We're also very interested in promoting environmental issues because of Native people's respect for the land and for Mother Earth.
LISTNUM 95 \l 14012 We do have an aspiration of, I guess, fostering discussion around, I guess, issues such as economic development and, I guess, things that maybe some of the leadership ‑‑ Aboriginal leadership is involved in.
LISTNUM 95 \l 14013 We also are going to, you know, feature extensive programming about the arts, which is certainly a large part of Aboriginal culture. And also education is one thing that we think is very important and it's ‑‑ one of the things that we want to promote as well. And as Patrice said, you know, there's just a tremendous amount of talent in Saskatchewan and that would certainly comprise a significant portion of the morning show.
LISTNUM 95 \l 14014 MR. WOOD: Just in order to follow up on that comment from Mr. Hill, to give you a kind of broad overview of where AVR wants go with its programming, in order to help improve the lives of Aboriginal people the focus would be, number one, on news every hour of the day, 24 hours a day. We consider news very important.
LISTNUM 95 \l 14015 Secondly would be the national two‑hour telephone talk show every day, Monday through Friday. And third would be 30 to 60 minutes of enriched public affairs programming each and every day. That is what AVR ultimately hopes to do to harmonize what it's doing on all of its stations. It will be an information rich service as the funds become available.
LISTNUM 95 \l 14016 COMMISSIONER ARPIN: The ‑‑
LISTNUM 95 \l 14017 MR. HENNESSY: We talk about the national talk show. There is a local component to that in each of the markets. The technological developments that seem to be going at breathtaking speed, the company in Winnipeg that is selling us the master control and production facilities, they are also marketing a new product that will be on ‑‑ out shortly. Hopefully we can be one of the first to use it.
LISTNUM 95 \l 14018 In effect it's a small production board which would go into the control room of each of our local facilities like in the facility in Regina where the morning show is produced. It would also ‑‑ that's where we do the Regina portion of the national talk show.
LISTNUM 95 \l 14019 And the way this equipment is designed, by simply switching a knob, in Toronto the host and producer of the national talk show can bring in the Regina guest or the Regina host and guest, and all of the levels in production can be controlled from the one centre. So again, using that will require less manpower and give us greater ability to get into each of these markets to deal with topics that are relevant.
LISTNUM 95 \l 14020 COMMISSIONER ARPIN: Mr. Wood, in the ‑‑ you just mentioned talk ‑‑ just mention of news and the importance of news and news at every hour means that there ‑‑ what you're saying is you're thinking ‑‑ talking about having 168 newscasts a week. Now for Regina, in your applications, you're talking about 15 local newscasts and 15 net ‑‑ network newscasts, so from 30 to 168 is somehow a water step.
LISTNUM 95 \l 14021 But regarding local news, what type of content are you ‑‑ will you be looking at? Specific contents to the Aboriginal or newscasts about what's going on in the city? Because it has some importance also for the Aboriginal population and ‑‑
LISTNUM 95 \l 14022 MS MOUSSEAU: Yeah, we'll be looking at ‑‑ I think it's a two‑pronged ‑‑ sorry, it's a two‑pronged approach as taking a look at issues that affect Aboriginal people directly, perhaps news stories that are being maybe under‑reported by the mainstream news, as well as taking a look at news events, current events that mean something to Canadians at large. But we can take a look at them from the Aboriginal perspective so that we can say, "Well, this is what Aboriginal people think about this particular issue."
LISTNUM 95 \l 14023 MR. WOOD: Mr. Arpin, I just wanted to add also that the comment about the hourly news is not a local current Regina commitment that we're presenting to you. It's simply where AVR wants to go ‑‑
LISTNUM 95 \l 14024 COMMISSIONER ARPIN: The ‑‑ that's ‑‑
LISTNUM 95 \l 14025 MR. WOOD: ‑‑ in the future.
LISTNUM 95 \l 14026 COMMISSIONER ARPIN: ‑‑ that's what I understood.
LISTNUM 95 \l 14027 MR. WOOD: Yes. Also Mr. Cardinal has a comment also with regard to the dialogue that would occur amongst communities across Canada with the talk element of the programming.
LISTNUM 95 \l 14028 MR. CARDINAL: Yes. It's just important to note that the issues that arise within different parts of the nation also have a resounding effect on communities in the West, for example, the New Caledonia situation is not fully understood. There is smatterings of information as the discussions that make their way informally into the community, but this kind of service for us to engage in the dialogue that is surrounding the issues that are pertinent to other Aboriginal communities across Canada is an opportunity for us to enter into a discourse that really lends to a deeper understanding, not just for ourselves but for Canadians as a whole when it comes to these kinds of issues.
LISTNUM 95 \l 14029 MR. HENNESSY: We also ‑‑ we regard ourselves as being an inclusive organization, and the programming that we do is intended to invite people in to participate and learn, Aboriginal and non‑Aboriginal.
LISTNUM 95 \l 14030 One quick anecdote. When we were working with the Trillium Foundation funds and had three in our news room in Toronto, and a couple of them were juniors and were being trained. I walked into the news room one morning, and there was the usual black coffee and pounding away on keyboards. I said, "Well, what's the big story today?"
LISTNUM 95 \l 14031 And there were a couple of mutterings about incidents that were totally Aboriginal in nature. And I just smiled and I said, "I thought the fact that we have a new Pope was pretty interesting." And I just left. About 45 minutes, an hour later, the news director came in the door and said, "Listen to the newscast."
LISTNUM 95 \l 14032 And they ‑‑ it had started the wheel spinning about this idea being inclusive, and we ended up with a 20‑minute interview with one of the representatives of Six Nations who had been there when the Pope, who had just passed away, had visited Six Nations. And there was a whole discussion about the relationship between the Catholic Church and the Aboriginal people; that's the type of thing that we want to do in each of the communities on an ongoing basis.
LISTNUM 95 \l 14033 COMMISSIONER ARPIN: Now, in your programming grid that you have, you're suggesting to have a local newscast at 6 a.m., 8 a.m., and 1 a.m. and for a duration of five minutes each. Will they be solely focused on local news or what will be ‑‑ or will they also contain national news materials? Or what will be produced here in Regina and what will come from other sources?
LISTNUM 95 \l 14034 MS MOUSSEAU: The Regina newscast, the ‑‑ we have the ability to draw from the national news, so they can look at the major stories of the day, include that into their local news broadcast.
LISTNUM 95 \l 14035 MR. WOOD: Mr. Chairman, to the extend though that national stories are aired from the Regina news room, those will be developed with a Regina perspective. So it will be Regina specific stories, plus the national stories from a Regina perspective.
LISTNUM 95 \l 14036 COMMISSIONER ARPIN: You have indicated that you intend to source the majority of your future programming, such as OOP(ph), Wisdom of the Elders, Turtle Highland Line(ph), Heart Review(ph), and other from AV ‑‑ from your network. The urban Aboriginal experience in Toronto may differ quite significantly from the urban Aboriginal experience here in Regina.
LISTNUM 95 \l 14037 With this in mind, could you please comment on how these programs will be specifically relevant to Regina Aboriginal population?
LISTNUM 95 \l 14038 MS MOUSSEAU: These programs although they are produced in Toronto are pretty general across the board. For example, Red Tales, it's a literary review. We're talking about books, but the fact is we're going to have the national network, and our hosts and our producers are going to have the resources of those other urban communities. They're going to be able to submit content, submit ideas, and be able to work on these programs collaboratively.
LISTNUM 95 \l 14039 So perhaps the host is in Toronto, but we're really getting information and content from across the entire network.
LISTNUM 95 \l 14040 MR. HILL: Commissioner, I think ‑‑ I believe that's one of the strengths of AVR is ‑‑ and this happens outside of the radio broadcast, is the exchange of stories and, you know, information amongst Aboriginal people across the country so ‑‑ and it happens in all different areas.
LISTNUM 95 \l 14041 You know, there are many things in the arts. There are many things as far as the Native political leadership. There are many things as far as the elders are concerned where there are national events and discussions, where there is a collaboration and exchange of understanding amongst all these various groups.
LISTNUM 95 \l 14042 And I think that's one of the benefits that the national radio network brings to local communities, is that what's happening in the other communities is ‑‑ there's an increased awareness in the local community and what's happening in other local communities, and I think that goes both ways, that ‑‑ that's certainly the ‑‑ you know, a local community ‑‑ the Aboriginal communities in Toronto could benefit from, you know, being engaged and hear what's happening in Regina.
LISTNUM 95 \l 14043 MR. CARDINAL: Let me add to the ‑‑ to those points that you've made, Jamie. The ‑‑ right now we know that there's over 60 percent of Aboriginal people that live in ‑‑ with ‑‑ within urban centres and we also know that across the country each of these urban centres, like Toronto and Edmonton and Vancouver, are faced with similar issues.
LISTNUM 95 \l 14044 One of the top five issues that are consistently brought forward by these Aboriginal communities is one of Aboriginal ‑‑ access to Aboriginal culture and history. A lot of our urban centres are without access to these institutions of culture and ceremony, and these are very important in providing a sense of continuity and a sense of identity for Aboriginal people within the urban settings. So when we talk about issues within Toronto, aside from cultural content in terms of languages and things like that, the essence and the basis of the issues are the same. We need to access culture. We need to also find out from our other relatives in different cities how they're dealing with those issues as well; employment, education and those issues are relevant across the country.
LISTNUM 95 \l 14045 How we're dealing with them are unique, and that in and of itself creates the opportunity for a wonderful dialogue in sharing and creating strategies to deal with these issues.
LISTNUM 95 \l 14046 COMMISSIONER ARPIN: The ‑‑ regarding to Aboriginal languages, I note that in your oral presentations you agreed to the existing conditions of licence that appear in all your ‑‑ the licence that have been granted to you. So only to reiterate, so the ‑‑ you do accept the conditions of licence that they have been granted to your existing licence, that they could be ‑‑ that they apply for Regina?
LISTNUM 95 \l 14047 MR. HILL: Commissioner, yes, we accept those conditions and we support them.
LISTNUM 95 \l 14048 COMMISSIONER ARPIN: Yes, including the 25 percent of spoken word?
LISTNUM 95 \l 14049 MR. HILL: Yes, including the 25 percent of spoken word.
LISTNUM 95 \l 14050 COMMISSIONER ARPIN: The ‑‑ now, are you planning to sell any advertising locally, and if yes, at which stage in the development of your service?
LISTNUM 95 \l 14051 MR. HILL: No, we do not have any intention to sell local advertising. It's ‑‑ our intention is to sell national advertising, so maybe that's a question that speaks to our impact on, I guess, local broadcasting. And we don't expect that we're going to have any negative effect on local broadcasting, so we don't have any intention of selling local advertising.
LISTNUM 95 \l 14052 COMMISSIONER ARPIN: Including the local component of your ‑‑ of the programming grid that you have proposed?
LISTNUM 95 \l 14053 MR. HILL: Yes, including that as well.
LISTNUM 95 \l 14054 COMMISSIONER ARPIN: And now, as you know, we will hear today an application by Natotawin Broadcasting to operate also a type B radio broadcast programming undertaking. Well, they are currently in La Ronge and they are applying for a rebroad in ‑‑ rebroadcasting facility in Regina.
LISTNUM 95 \l 14055 According to ‑‑ and you referred to the 2001 census, the Aboriginal population is approximately 16,000 people. Some are saying that by today, it's probably closer to 20,000, but do you think there's room for two services to serve the Aboriginal population in Regina; one from your network and the other one from the La Ronge service who is providing a more regional service to Saskatchewan?
LISTNUM 95 \l 14056 MR. HILL: Yes, Commissioner, the primary mission of AVR is to improve the lives of Aboriginal people. And we support, with that idea, I guess, as much Aboriginal media availability as possible. We do believe there are room for two ‑‑ two Aboriginal broadcasts in Regina.
LISTNUM 95 \l 14057 And I want to say especially in light of the fact that we have some demographic projections that indicate that within a couple of generations, that approximately half of the population of Saskatchewan will be Aboriginal people.
LISTNUM 95 \l 14058 COMMISSIONER ARPIN: The ‑‑ and how will your service ‑‑ I don't know if you have had a chance to look at the application of Natotawin, but how your ‑‑ if you do, could you tell me how the ‑‑ your service will defer from them?
LISTNUM 95 \l 14059 MR. HILL: Well, I think that it's a difference between a national programming service and a local or regional program service. I think that the thing ‑‑ Aboriginal Voices is virtually 100 percent Aboriginal. Our intention is to, at a minimum, have ‑‑ or to play 50 percent of Canadian Aboriginal artists. We are not aware that there are any other broadcasters providing any type of service like that. We are not aware of any intention to provide a service like that.
LISTNUM 95 \l 14060 So I think that, you know, we're distinct as far as other Aboriginal broadcast services and I think ‑‑ and those are the two primary ways that we're almost all Aboriginal content, and it's a national dialogue and I think that certainly I would hope that Regina could be a part of that.
LISTNUM 95 \l 14061 COMMISSIONER ARPIN: The ‑‑ your service as ‑‑ and you mention it on numerous occasion, and it's also in your original application, is catering to the Aboriginal people in the urban centres.
LISTNUM 95 \l 14062 Obviously the ‑‑ Saskatchewan is more a rural community than an urban community. How will your service cater to the Aboriginal of the ‑‑ of Saskatchewan? And I'm also thinking here about Saskatoon, since obviously you'll be ‑‑ they will ‑‑ you will be working in tandem with those two stations ‑‑ how the Aboriginal of this province will feel served by an urban service.
LISTNUM 95 \l 14063 MR. HILL: Well, one of the things that we have said previously and we still intend to go forward with the plan that we will provide all of our programming free of charge to, you know, any and all Aboriginal broadcasters across the country, so any regional broadcaster or First Nations‑based radio station will be able to download our programming free of charge.
LISTNUM 95 \l 14064 So I mean some of them may be interested, and we believe that they would be, and some have expressed interest in some of our national content just to, you know, provide something else. I mean it's not available right now, but the ‑‑ you know, we would be able to provide a national content for them at whatever level they think is appropriate.
LISTNUM 95 \l 14065 So we have focused primarily in, I guess, our presentations on the urban Aboriginal people where more than half ‑‑ the statistics show that more than half of Aboriginal people do live in urban centres, but we fully intend to provide our service free of charge to any other Aboriginal broadcaster.
LISTNUM 95 \l 14066 MR. CARDINAL: Maybe also add to that by stating, again, demographics around transmigration between First Nations and Aboriginal communities and urban centres. They seem ‑‑ there ‑‑ there's a lot of going back and forth between the city and their traditional areas or their communities. That number is consistent. That means people are coming here and working, returning homes either on weekends or certain durations of time. We also recognize that there's a huge population growth within the urban centres themselves.
LISTNUM 95 \l 14067 So in this way, AVR is providing an access to information that is not accessible in their remote communities nor their communities in general. And I think that's one major contribution that AVR will give to the Aboriginal people in Saskatchewan.
LISTNUM 95 \l 14068 COMMISSIONER ARPIN: Maybe it's the place to ask my questions regarding ‑‑ well, yesterday when Standard appear for a ‑‑ for their application to serve Regina, they referred to an agreement that had ‑‑ they had signed with AVR regarding a weekly news magazine that they are contemplating for the ‑‑ for this market, and now it's my ‑‑ could you say to us more about what that agreement is all about?
LISTNUM 95 \l 14069 MR. HILL: Yes, I'd be happy to, Commissioner. We have a great relationship with Standard, and Standard has been very good to AVR. And what we'll be providing is some of our news content to supplement a weekend program that they will do. So we think it's a great idea that will increase, I guess, the Aboriginal perspective on some of the events happening in the world that are coming into Regina. Perhaps I could ask Roy Hennessy to provide another comment.
LISTNUM 95 \l 14070 MR. HENNESSY: This conversation with Standard began when they were applying for licences in Fort McMurray and Grande Prairie, and we were contacted by the manager of the Edmonton operation, who was organizing content program development, et cetera. And they asked, if they were successful in Grande Prairie or Fort McMurray, would we be able to supply content to be part of ‑‑ as it was explained to me, the ‑‑ they are planning a 90‑minute news magazine on Sunday mornings ‑‑ thirty minutes of that would deal with issues of interest to the Aboriginal community they were serving, or Aboriginals in the community they were proposing to serve ‑‑ and would we make content from our national service stations available to them for inclusion.
LISTNUM 95 \l 14071 That was the total extent of the conversation. Given that we weren't applying in those markets and our mandate or desire to expand the awareness of Aboriginal issues, we agreed that we would supply that content to them if they were successful. When they applied for licences here and Saskatoon, we were contacted again by Standard and said, "Would you see your way to it being possible for us to have the same content provided for news magazine shows in these two new licence applications?"
LISTNUM 95 \l 14072 I pointed out to them that we were applying for licences in that market but I'd ‑‑ and I discussed this with everyone involved in the licence application that ‑‑ and we agreed that we did not see that as a conflict or as a problem because, again, it addresses our mandate of getting Aboriginal information and awareness out to the general community.
LISTNUM 95 \l 14073 And it's quite conceivable that a number of people who would be listening to the Standard stations, if they're successful, would not listen to AVR. So we would, again, be helping to increase awareness and we pointed out to them that we were applying for licences and that if we were ‑‑ both parties were successful, we would still be going to provide that information to them. That's the total extent of our discussions with them to achieve our goals and in a way, I guess, help them achieve theirs.
LISTNUM 95 \l 14074 COMMISSIONER ARPIN: Thank you.
LISTNUM 95 \l 14075 We'll now talk about the CTD, or Canadian Television Development Program. We ‑‑ well, we note that your plans in terms of promotion of Aboriginal artists includes broadcasting Aboriginal music, the creation of CD/DVD package contributing to an annual talent showcase, and the broadcast of special events such as powwow.
LISTNUM 95 \l 14076 In light of your stance on conditions of licence regarding the broadcast of Aboriginal language/music, could you please indicate how such a position will impact the diversity of Aboriginal music to be broadcast?
LISTNUM 95 \l 14077 MS MOUSSEAU: I'm sorry, can you actually rephrase just that last bit?
LISTNUM 95 \l 14078 COMMISSIONER ARPIN: The ‑‑ well, you have a plan for CD, producing CD and DVD, and you refer to it in your oral presentation that you have that still ‑‑
LISTNUM 95 \l 14079 MS MOUSSEAU: Yes, the ‑‑ that album.
LISTNUM 95 \l 14080 COMMISSIONER ARPIN: Right. I'll ‑‑ and you have developed a music library of major importance.
LISTNUM 95 \l 14081 MS MOUSSEAU: Mmhmm.
LISTNUM 95 \l 14082 COMMISSIONER ARPIN: And what my question has to do with is that ‑‑ would you please indicate how such a position will impact the diversity of Aboriginal music to be ‑‑ well ‑‑
LISTNUM 95 \l 14083 MR. HENNESSY: If you're wondering about how this ‑‑ how our national library actually is going to impact Aboriginal talent in Regina ‑‑
LISTNUM 95 \l 14084 COMMISSIONER ARPIN: Yeah.
LISTNUM 95 \l 14085 MR. HENNESSY: ‑‑ I see in a multiple fashion, that we can accomplish that, but by having local ‑‑ even just starting with the local newsperson who makes us aware there was a large concert last night or there's a new band, has a new CD out, I've got an interview with them ‑‑ having that on‑the‑street contact as the beginning, then eventually through the morning show host and their relationship with the community, becoming an integrated part of it, they make the national network or the national library, the ‑‑ aware of these artists, arrange for interviews to be featured across the country, so it becomes a developmental tool for artists in Regina and even other stations across the province that might discover an Aboriginal artist in their community.
LISTNUM 95 \l 14086 If they get airplay on that local station and it's brought to us, we can then take that and accelerate it by including it in our library, which we hope to operate as an E‑commerce as well so we can facilitate the selling of downloads of these artists' albums because you certainly won't find them at HMV. We are the epitome of emerging talent, so having the vehicles like the E‑commerce downloading capability would allow us to accelerate the development of an artist from Regina.
LISTNUM 95 \l 14087 COMMISSIONER ARPIN: Your ‑‑ is your music library ‑‑ well, will your music library made ‑‑ be made available to other Native broadcasters or ‑‑
LISTNUM 95 \l 14088 MR. HENNESSY: We see it as evolving into a resource for all Canadians, for everyone to access. So if a broadcaster made ‑‑ was made aware of or wanted to access our library to download a track to feature in their playlist, that's part of the service that that library is intended to perform.
LISTNUM 95 \l 14089 COMMISSIONER ARPIN: You ‑‑
LISTNUM 95 \l 14090 MR. HENNESSY: And they pay us 99 cents for it.
LISTNUM 95 \l 14091 COMMISSIONER ARPIN: I see. Now, creation of CD/DVD and coverage of powwows locally here in Regina or in Saskatchewan, are ‑‑ at which stage of your development, do you think, that you will be capable to start covering and producing local material?
LISTNUM 95 \l 14092 MS MOUSSEAU: Once our morning show is in place because we have ‑‑ like, I mentioned we're a pretty lean, mean machine here as far as technology goes. We can just take them and put them right into that powwow and have them broadcast live from that event.
LISTNUM 95 \l 14093 MR. HENNESSY: We are having discussions ‑‑ oh, sorry. There we are. We have been having discussions and are beginning planning to make our first appearance at the Calgary Stampede next year. Sorry, Regina, but they'll probably win first. But there is a very large Aboriginal segment to the Calgary stampede. I lived there myself for four years. I know the type of excitement that the Aboriginal celebrations contribute to the Stampede. We intend to be live from there next year.
LISTNUM 95 \l 14094 COMMISSIONER ARPIN: Well, you don't have to be sorry about Regina. Our ‑‑ this really might ‑‑ might not have been released by that time so ‑‑
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14095 COMMISSIONER ARPIN: So ‑‑
LISTNUM 95 \l 14096 MR. WOOD: Mr. Chairman, just picking up on a comment that Mr. Hennessy made regarding the developmental support that AVR will provide, again, it's a point worth emphasizing, I think, that all of the artists featured on AVR are Aboriginal are that all of the artists are emerging because they've never before been heard. And that, in a way, makes AVR a very distinct service because we believe it's the only service in Canada that is devoted to a music sound that is 100 percent Aboriginal.
LISTNUM 95 \l 14097 Most of the regional services and independent stations are featuring a fairly large component of commercial, mainstream, chart‑oriented music. So whereas there's a component of mainstream music in those stations, sometimes very large, we are 100 percent Aboriginal.
LISTNUM 95 \l 14098 MS MOUSSEAU: Sorry, may I just make one more comment? One of the things about Aboriginal Voices Radio is ‑‑ that is enormous is that we are 100 percent Aboriginal in all of our music, and the fact is is that people are going to be hearing us and knowing that their people are making this music. It gives them the opportunity to hear other sounds from across Canada, contribute to their own music.
LISTNUM 95 \l 14099 Recently I ‑‑ a friend of mine brought some kids with her out of Manitoba to Toronto to check out the local universities, to encourage them to ‑‑ for post‑secondary education, and they were listening to AVR for the first time and they were shocked because they couldn't believe how great the music was on our station.
LISTNUM 95 \l 14100 And, you know, one girl said, "You know what? I'd had no idea Robbie Robertson was Aboriginal." Like, these are things the community at large, especially the youth community, doesn't know. And they can look at that as a source of pride, and Aboriginal Voices Radio will bring ‑‑ will be able to bring that to all of Canada.
LISTNUM 95 \l 14101 MR. HENNESSY: One other quick comment with regards to the development of talent in Regina or the other markets that we serve as well. We've had discussions of ‑‑ preliminary, but the idea has been discussed with an organization called Theatre D in Toronto. They are refurbishing an old theatre and converting it into a high‑definition digital production centre that will also feature live performances, live talent. They're opening on the 24th of November and they'll be featuring live performances with the ability to both video and record them.
LISTNUM 95 \l 14102 And the discussion ‑‑ to make it perfectly obvious, the discussion of an Aboriginal Idol type of show and production has got their interest, and that would be an opportunity where we could take an emerging artist from Regina or in Edmonton or in Calgary, have them perform in competition and be recorded and featured.
LISTNUM 95 \l 14103 And whether we can develop this into what also becomes a television feature as well, we don't know, but we have interest from the people involved in pursuing it. These are the sorts of things that we think about, dream about and hope we can afford.
LISTNUM 95 \l 14104 COMMISSIONER ARPIN: Well, Mrs. Chairman, I'm through with my questions.
LISTNUM 95 \l 14105 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 14106 Commissioner Pennefather...?
LISTNUM 95 \l 14107 COMMISSIONER PENNEFATHER: Thank you, Madam Chair.
LISTNUM 95 \l 14108 Good morning. I have a question which is just for our understanding in terms of music, and don't interpret it as a COL or a specific question in that sense.
LISTNUM 95 \l 14109 But talking about the CD/DVD package under talent development and the project of ‑‑ as you did this morning, of including Aboriginal Canadian artists in the current database, et cetera. Just as a general sense, the artists that you're talking about cover all the genre of music or are we ‑‑ you know, I am aware of some artists, but just so that we have a better understanding, we would be looking at artists in a variety of genre from rock right through to classical, I suppose?
LISTNUM 95 \l 14110 MS MOUSSEAU: Absolutely. Aboriginal artists across Canada are producing a wide variety of genre. Everything, as mentioned, from hip hop to jazz, to classical, to rock, to pop, a lot of them are independently produced. That's why there is ‑‑ unfortunately they don't necessarily all the time have the Cancon MAPL symbol on their back of their CD. So there's research involved in getting, as I said, that information to us, and that's why there's sort of that discrepancy with your database, I believe, at the commission. I think ‑‑ I hope ‑‑ does that answer your question?
LISTNUM 95 \l 14111 COMMISSIONER PENNEFATHER: And the artist ‑‑ yes, it's ‑‑ I imagine, too, that that same issue comes into play with other organizations such as FACTOR or other organizations where the classification is also being discussed, so that Aboriginal artists are classified according to their genre of music as opposed to being an Aboriginal artist. Is that also a problem in terms of other organizations, like FACTOR, or any of the others?
LISTNUM 95 \l 14112 MS MOUSSEAU: I'm not sure ‑‑
LISTNUM 95 \l 14113 COMMISSIONER PENNEFATHER: Are there getting ‑‑ in other words, are they being included as Canadian artists appropriately in other areas like FACTOR?
LISTNUM 95 \l 14114 MS MOUSSEAU: I would think not because how are they possibly getting exposure if not through Aboriginal Voices Radio? There isn't the distribution. They aren't getting the commercial airplay. They're not getting any media coverage. There's not a lot of buzz. If they're playing clubs, you know, they're slogging it away in these little tiny clubs, and maybe they're not getting the opportunity to come into FACTOR.
LISTNUM 95 \l 14115 Coming into Toronto, for example, for FACTOR meetings is a pretty expensive endeavour. I don't think an Aboriginal artist from a small community may necessarily be able to do that. So Aboriginal Voices Radio, as I see it, is the best vehicle for Aboriginal musicians to get their music heard nationally ‑‑
LISTNUM 95 \l 14116 COMMISSIONER PENNEFATHER: And then start the process?
LISTNUM 95 \l 14117 MS MOUSSEAU: ‑‑ as well as on mainstream ‑‑
LISTNUM 95 \l 14118 COMMISSIONER PENNEFATHER: And can start the process that way?
LISTNUM 95 \l 14119 MS MOUSSEAU: Absolutely.
LISTNUM 95 \l 14120 COMMISSIONER PENNEFATHER: And we're talking about artists singing or playing ‑‑ well, let's take singing; obviously playing something else, but the singing in both and, of course, if they're singing opera in Italian or German, but also Aboriginal languages?
LISTNUM 95 \l 14121 MS MOUSSEAU: Yes. Yeah, we actually play Aboriginal music songs in Aboriginal languages played by Aboriginal musicians right now.
LISTNUM 95 \l 14122 COMMISSIONER PENNEFATHER: Is it the majority of songs would be in English or in Aboriginal languages?
LISTNUM 95 \l 14123 MS MOUSSEAU: The majority ‑‑
LISTNUM 95 \l 14124 COMMISSIONER PENNEFATHER: How does it break down?
LISTNUM 95 \l 14125 MS MOUSSEAU: Yeah, the majority of the songs right now, I believe, are in English and that's because I ‑‑ I believe that Aboriginal artists are concerned about becoming commercially viable. In order to do that, they want to sing in English. More people will understand that.
LISTNUM 95 \l 14126 COMMISSIONER PENNEFATHER: Of course.
LISTNUM 95 \l 14127 MS MOUSSEAU: Again with AVR, we have an opportunity to play those Aboriginal languages, those Aboriginal songs. Perhaps you might encourage more of our artists to start, again, singing in their original languages.
LISTNUM 95 \l 14128 COMMISSIONER PENNEFATHER: That's sort of my point when saying ‑‑ I'm not talking about the 2 percent, but it is ‑‑ a component of the mandate of AVR is bringing that exposure but also that was access for the rest of Canada to artists singing in Aboriginal languages.
LISTNUM 95 \l 14129 MS MOUSSEAU: Yeah. I mean we hit our 2 percent to requirement, but that's not why we play the music. The songs are fantastic, and they get ‑‑ include not just in those sections of our Aboriginal music programming, but it's also included in our main play lists.
LISTNUM 95 \l 14130 COMMISSIONER PENNEFATHER: A couple of other follow‑up questions from your discussion with Vice‑Chair Arpin, you mentioned the two‑hour national talk show. Would it ‑‑ which would appear to be an open‑line show because I think people will be calling in, and that was your point in terms of a discussion about Regina as well. Do you have or will you have mechanisms in place to ensure that you comply with the Commission's policy on open‑line programming?
LISTNUM 95 \l 14131 MR. HENNESSY: Yes, the production facilities will be able to monitor delay the broadcast. There will be a producer in place to monitor content and make sure that we're within guidelines.
LISTNUM 95 \l 14132 COMMISSIONER PENNEFATHER: A producer in Toronto? Would that be the ‑‑
LISTNUM 95 \l 14133 MR. HENNESSY: That will be the hub for the program.
LISTNUM 95 \l 14134 COMMISSIONER PENNEFATHER: Right.
LISTNUM 95 \l 14135 MR. HENNESSY: But as I pointed out with the technology we've got, we'll be able to remote ‑‑ we can bring a guest in. We could have the mayor of Regina discussing an issue, specifically bring him into the studio and be able to control his levels, monitor, run the delay and everything else remotely but still have the impact of having that person live on the air.
LISTNUM 95 \l 14136 MR. WOOD: Also ‑‑
LISTNUM 95 \l 14137 COMMISSIONER PENNEFATHER: And local residents in Regina ‑‑ sorry, Mr. Wood. You wanted to add something?
LISTNUM 95 \l 14138 MR. WOOD: No, that's ‑‑ I'm sorry. I was just going to say one of the most important components of a talk show is the person who screens the calls.
LISTNUM 95 \l 14139 COMMISSIONER PENNEFATHER: Yes.
LISTNUM 95 \l 14140 MR. WOOD: So as the calls come in, somebody at headquarters will be screening the calls, not only for appropriateness to the subject, but for balance and to ensure that all points of view have a chance to be aired. So we definitely will provide for that.
LISTNUM 95 \l 14141 COMMISSIONER PENNEFATHER: And local residents here would use a ‑‑
LISTNUM 95 \l 14142 MR. WOOD: A 1‑800 line.
LISTNUM 95 \l 14143 COMMISSIONER PENNEFATHER: ‑‑ 1‑800 number?
LISTNUM 95 \l 14144 MR. WOOD: Yes.
LISTNUM 95 \l 14145 COMMISSIONER PENNEFATHER: You also discussed the website program descriptions, and I think you indicated to my colleague that there were some descriptions that were to be added. And in order to have a complete picture of the program descriptions for our purposes, could you supply us with the program descriptions and ‑‑ so we don't have to wait for the website?
LISTNUM 95 \l 14146 MS MOUSSEAU: Absolutely. I can provide you either a hardcopy or digital copy by the end of the day or ‑‑ whatever, by the week, whatever ‑‑ your choice, whatever you'd like.
LISTNUM 95 \l 14147 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 14148 And just my last question is I hate ‑‑ Mr. Hennessy ‑‑ Miss ‑‑ do you want to pick up on that timing question, counsel? Thank you. Speaking of timing, I just wanted to get back to your "quickly as possible", Mr. Hennessy.
LISTNUM 95 \l 14149 And thanks to your discussion this morning, I think we have a better understanding of how you see this service, as Mr. Cardinal so eloquently said at the beginning of the discussion, a service ‑‑ an AVR without Regina is difficult for you to understand. It's also important to ‑‑ for us to understand how the service would really fulfil the needs of the Regina audience and listeners.
LISTNUM 95 \l 14150 And so I come back to the question of ‑‑ I think I understand the thesis of how the local service would develop over time, but in terms of this being an application for frequency in the Regina market, could I ask you again to give us perhaps a more precise sense of when you feel that the morning show will be a Regina morning show, if I can put it that way, and the rest of the grid would in fact ‑‑ in addition to the talk show being a national show and the other national shows available, the concept of a Regina AVR service would be a reality? Can you give us a better sense of the "quickly as possible"?
LISTNUM 95 \l 14151 MR. HILL: I could comment on that, Commissioner. I mean this ‑‑ it's a projection, and if I was to lay odds, I would say that by the end of a one‑year period of being granted the licence that we would be able to achieve pretty much the quality that we intend to.
LISTNUM 95 \l 14152 And I base that upon the fact that I've been on the board for a couple of years and I've seen great strides forward under not the best conditions. And I think that we have an extremely talented team in place, that it's ‑‑ if I could, I think it's the best team that AVR's had so far. Although there was a lot of talents that, you know, got us to this point, but we've tried to put a team in place right now that can move us on to the next level. And from my awareness, I think that ‑‑ I mean I'm very happy with the way things are going at this point.
LISTNUM 95 \l 14153 And we've given you a conservative, I guess, projection on what we're going to do, but we're quite confident ‑‑ and we do that on purpose. You know, we want to give you something that you can have a great confidence in. But from what I know personally about ‑‑ you know, about AVR and the things that we're working on, I have a very high level of confidence that we're going to be able to, you know, deliver on what I would call, you know, the top programming that we could very quickly.
LISTNUM 95 \l 14154 COMMISSIONER PENNEFATHER: Thank you, Mr. Hill. Thank you, Madam Chair.
LISTNUM 95 \l 14155 COMMISSIONER ARPIN: Thank you.
LISTNUM 95 \l 14156 I just have a few questions. Would you agree to a COL that you would not solicit local advertising?
LISTNUM 95 \l 14157 MR. HILL: Yes, we would.
LISTNUM 95 \l 14158 THE CHAIRPERSON: And given your high level of confidence, Mr. Hill, would you agree to a COL that you will be producing 30 hours a week of locally‑produced programming by the end of year two of the licence period?
LISTNUM 95 \l 14159 MR. HILL: We will agree to the conditions of licence that you think are appropriate and we'll work vigorously to meet those. And I want to say that we take these things extremely seriously and ‑‑
LISTNUM 95 \l 14160 THE CHAIRPERSON: As do we.
LISTNUM 95 \l 14161 MR. HILL: Yes.
LISTNUM 95 \l 14162 MR. WOOD: Commissioner, if I could just respond to the condition of licence for local advertising? In the event that AVR reaches the threshold that would enable us to do local advertising, we think that ‑‑ we would hope that the Commission would keep in mind that there are probably emerging Aboriginal businesses that might want to advertise on AVR. That's the only comment I'll make.
LISTNUM 95 \l 14163 THE CHAIRPERSON: Oh, I thought your model was sponsorship, and that's a totally different issue.
LISTNUM 95 \l 14164 MR. WOOD: Well, it's ‑‑ whether it's ‑‑ whether you're calling it sponsorship or whether you're calling it advertising, within your regulation, effectively if there's a condition there that says we can't do that, then we shut out local advertisers who might want to advertise on the radio station, or sponsors.
LISTNUM 95 \l 14165 THE CHAIRPERSON: Well, I don't know ‑‑
LISTNUM 95 \l 14166 MR. HENNESSY: It's not our ‑‑
LISTNUM 95 \l 14167 THE CHAIRPERSON: Mr. Hennessy...?
LISTNUM 95 \l 14168 MR. HENNESSY: It's not our intention to have a retail sales force on the street competing with the commercial broadcasters. Our focus is to generate funding to develop the network from those alternate sources that I pointed out, but the ‑‑
LISTNUM 95 \l 14169 THE CHAIRPERSON: So on the understanding that sponsorship is not included in the concept of local advertising, will you agree to a COL that you would not solicit local advertising? You're fully aware of the allegations of the fragility of this market.
LISTNUM 95 \l 14170 MR. HILL: We'll agree to your conditions of licence and comply with them.
LISTNUM 95 \l 14171 THE CHAIRPERSON: Okay. And you will agree to a condition of licence that by the end of year two of the licensing term, you will be here and producing 32 hours a week of locally produced programming?
LISTNUM 95 \l 14172 MR. HILL: If that is the decision of the Commission, yes, we will.
LISTNUM 95 \l 14173 THE CHAIRPERSON: Well, will you agree to that or not?
LISTNUM 95 \l 14174 MR. HILL: We would.
LISTNUM 95 \l 14175 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 14176 And as to your issue, Mr. Wood, of emerging businesses, I don't know if you heard this morning that SIGA, Saskatchewan Indian Gaming Association, has earned 40 million in profits, net profits. And that, then, goes to my question to you, Mr. Hennessy. Is there no thought of seeking out sponsorships from some of the not emerging, but already existing, very strong First Nation businesses in the West?
LISTNUM 95 \l 14177 MR. HENNESSY: Absolutely. Those are the types of organizations that we would want to talk to. We have worked with, based on our ‑‑
LISTNUM 95 \l 14178 THE CHAIRPERSON: Have you gone to Peace Hills Trust in Alberta?
LISTNUM 95 \l 14179 MR. HENNESSY: No, we've been dealing with Ontario Lottery and Gaming Commission and with the casino ‑‑ or Casino Rama.
LISTNUM 95 \l 14180 THE CHAIRPERSON: Okay, yeah.
LISTNUM 95 \l 14181 MR. HENNESSY: We've been dealing with them and they ‑‑ now again, there is a situation where they have not sponsored the program, but they have participated in programs dealing with addiction to gambling and have also purchased a campaign regarding responsibility in gambling. So that's sort of a bit of a grey issue as to what is advertising. It's not ‑‑
LISTNUM 95 \l 14182 THE CHAIRPERSON: It's indeed unfortunate that you have received the opposition of the La Ronge Band which owns one of the very ‑‑ I'm going to say probably one of the top businesses in Saskatchewan, and that you've lost the confidence of the Prince Albert Grand Council because they also own one of the top ten businesses in Saskatchewan, so it's a ‑‑ it's unfortunate.
LISTNUM 95 \l 14183 At page 5 of your production of your presentation today, you've made this assertion that Canadians from coast to coast overwhelmingly approve of an Aboriginal national radio service, and I want you to review that assertion given the questions that Mr. Doering asked. And if you look at page 29 of what he asked, I think you should be careful in using that assertion. If you notice, what he said is, "I would like to ask you some questions about a concept for a new radio station in your city."
LISTNUM 95 \l 14184 Now, if you can tell me where it refers to an Aboriginal radio network, I would accept your assertion. However, I only see three questions that he asked, and none of them refer to a national Aboriginal network. So the demand, I agree, in Regina is high for an Aboriginal radio station. And I wanted to talk a little bit ‑‑ I'm sorry, I'm not giving you time.
LISTNUM 95 \l 14185 MR. WOOD: Commissioner, I'd just make a comment that we'd be more than pleased to follow up with a statement on that from Mr. Doering.
LISTNUM 95 \l 14186 THE CHAIRPERSON: Yeah. Well, unless there were other questions, it's difficult to see the basis for his conclusion.
LISTNUM 95 \l 14187 I wanted to talk what about I call reinventing the wheel and I'm having some concerns, as you may have heard yesterday about that too, not in relation to yourselves but in relation to other issues.
LISTNUM 95 \l 14188 Do you have any relation with APTN? Because they have a terrific news‑gathering machine already in force. Have you tried to set up any cooperative arrangements with them?
LISTNUM 95 \l 14189 MR. HILL: Madam Chair, to tell you the truth, we've been so engaged in the initiatives before us and the challenges before us as far as getting our stations on the air, that we haven't had the opportunity. We've certainly agreed that it is ‑‑
LISTNUM 95 \l 14190 THE CHAIRPERSON: Because they've got a lot of resources, you know, in terms of people in the North and ‑‑
LISTNUM 95 \l 14191 MR. HILL: Yes, yes. And we've always thought that once we get to a certain point, that ‑‑ and that's the relationship building part and looking for partnerships and so forth where we can, I guess, mutually benefit from these relationships that we would do that. But I guess we saw a sequence, and we were very much focused on getting our stations on the air and meeting our commitments.
LISTNUM 95 \l 14192 THE CHAIRPERSON: And they also have ‑‑ Mr. Wood, they have a national talk show, and it would make imminent sense for me that ‑‑ if you would rebroadcast it, and simply because APTN sometimes doesn't have the station on the ‑‑ the spot on the dial under 20, I mean it makes sense to me that that would achieve some of your objective, and then you could build into developing your own in ‑‑ rather than redoing something.
LISTNUM 95 \l 14193 MR. WOOD: Yes, I think that's absolutely correct but I also think there's such a pent up demand to express points of view ‑‑
LISTNUM 95 \l 14194 THE CHAIRPERSON: Yeah.
LISTNUM 95 \l 14195 MR. WOOD: ‑‑ from different regions of the country that ‑‑ and also, radio does deliver the component of access to our service on free over‑the‑air radio, so it's available to people who might not have access in certain workplace locations or, for example, in their vehicle. There are a lot of programs that they wouldn't be able to access that are on APTN, and likewise.
LISTNUM 95 \l 14196 So if we were running the APTN service, it's ‑‑ it would certainly be a benefit to us, but it ‑‑ our programming would be of benefit to them as well.
LISTNUM 95 \l 14197 THE CHAIRPERSON: Yes, I agree.
LISTNUM 95 \l 14198 MR. WOOD: They receive a significant amount of revenue through cable fees and I think it goes with the territory that, if you have the revenue, you can generate high quality programming.
LISTNUM 95 \l 14199 And when AVR completes its financing and revenue plans, it too will provide high quality programming, but we certainly think there is merit in meeting with Mr. Larose and his staff and talking about those possible synergies.
LISTNUM 95 \l 14200 THE CHAIRPERSON: And in terms of your library, it also seems to me like you're reinventing the wheel because, when you first appeared in front of us in Toronto, your panel consisted of Mr. Dave McLeod of NCI, one of the pre‑eminent ‑‑ I'm going to say ‑‑ experts on Aboriginal music in Canada, and he does the top 20 every week and certainly has been around Aboriginal music forever. And I'm sure his library, if you cooperated, would ‑‑ could also build ‑‑ you could build together.
LISTNUM 95 \l 14201 Ms Mosseau, you wanted to ‑‑
LISTNUM 95 \l 14202 UNIDENTIFIED SPEAKER: Turn your mic on.
LISTNUM 95 \l 14203 THE CHAIRPERSON: Like, I just constantly hear rebuilding, and it seems to me cooperation would be a far better way to go.
LISTNUM 95 \l 14204 MS MOUSSEAU: If I can talk first about APTN? APTN is an amazing channel. It is ‑‑ it's absolutely needed to happen here in Canada, but right now ‑‑ at least in my opinion, and I think that's the opinion of most people that watch the shows that they have. It tends to be very North‑centric. They deal a lot with Canada's north and reserve communities, small communities' issues that they have to deal with on a daily basis. Aboriginal Voices Radio is focusing on the urban Aboriginals.
LISTNUM 95 \l 14205 So right now when we look at creating our talk shows, we have to look at issues that are most affecting the urban Aboriginals. And then, you know, perhaps in the future when we can look at a larger collaboration, when we can ‑‑ instead of separating urban Aboriginals, reserve Aboriginals, Inuit, the North, and the different provinces, we can end up in a position where we're all together as one. And at that point APTN and AVR working together is ‑‑ it makes logical sense but, right now, we have to look at what our mandate is, and that is serving Aboriginal ‑‑ the urban Aboriginal.
LISTNUM 95 \l 14206 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 14207 You now have two minutes to convince us.
LISTNUM 95 \l 14208 MS BENNETT: Sorry, could I just address a couple of housekeeping matters? Sorry, just a few quick clarifications. You said today that you would ensure that no less than 2 percent of all programming during a broadcast week would be spoken‑word programming in an Aboriginal Canadian language. Is that a commitment by COL?
LISTNUM 95 \l 14209 MR. HILL: That is a commitment we're prepared to make.
LISTNUM 95 \l 14210 MS BENNETT: Okay, by condition of licence?
LISTNUM 95 \l 14211 MR. HILL: Yes.
LISTNUM 95 \l 14212 MS BENNETT: Okay, thanks. Now, earlier you talked with Commissioner Arpin about filing financial projections. My understanding is that there are no financial projections on the file, so could you file those today, maybe if you've got them with you, right after your presentation?
LISTNUM 95 \l 14213 MR. HILL: Yes, we have them with us and we can file them today.
‑‑‑ Undertaking / Engagement
LISTNUM 95 \l 14214 MS BENNETT: Okay. And similarly with the program descriptions, if you could file those at the same time? Okay. And the last part was documentation on the availability of funds. Would you have that information available today as well?
LISTNUM 95 \l 14215 MR. HILL: The availability of funds, what was that referring to?
LISTNUM 95 \l 14216 MS BENNETT: Well, you had a discussion with Commissioner Arpin about the various sources of funding that you are projecting, and I think you spoke with him about the possibility of filing some documentation ‑‑
LISTNUM 95 \l 14217 MR. HILL: Oh, okay.
LISTNUM 95 \l 14218 MS BENNETT: ‑‑ with respect to those sources?
LISTNUM 95 \l 14219 MR. HILL: Yes. Yes, but I don't think that we have all of that information today, but we can file that very quickly ‑‑ oh, we can? Oh, okay. Well, I guess ‑‑
LISTNUM 95 \l 14220 MS BENNETT: Well ‑‑
LISTNUM 95 \l 14221 MR. HILL: I ‑‑ I'm sorry, I stand corrected. We do have that information with us and we can file that.
LISTNUM 95 \l 14222 MS BENNETT: Okay, great. Thank you very much.
LISTNUM 95 \l 14223 MS MOUSSEAU: And I'll get that other document to you right away. I just have to go print it.
LISTNUM 95 \l 14224 MS BENNETT: Okay, thank you. That's it.
LISTNUM 95 \l 14225 THE CHAIRPERSON: Now two minutes.
LISTNUM 95 \l 14226 MR. HILL: Thank you, Madam Chair.
LISTNUM 95 \l 14227 I'd like to, I guess, talk about the importance of AVR and then, if we have time in the two minutes, I'd like to ask Lewis Cardinal to finish up.
LISTNUM 95 \l 14228 The mission of AVR is to improve the lives of Aboriginal people, and we think that our role through radio broadcasting is a very important one to do that. There's ‑‑ currently exists a market gap in Regina. There is ‑‑ there is no radio broadcast that's specifically targeted to the Aboriginal community here, so that's one thing that we believe is very important in this consideration.
LISTNUM 95 \l 14229 AVR, in being virtually 100 percent Aboriginal, we believe that we are one of the leaders and will be one of the leaders in helping emerging Aboriginal talent, both spoken‑word talent and music talent.
LISTNUM 95 \l 14230 The dialogue that AVR would be able to provide regarding just a wide array of Aboriginal issues is extremely important to this community, and not only to hear the dialogue, but to participate in the dialogue as well.
LISTNUM 95 \l 14231 We would like to respectfully remind the Commission that it is in the Broadcast Act to provide for such a service as ‑‑ when that becomes possible.
LISTNUM 95 \l 14232 We will add to the diversity of the broadcasting here in Regina. We are committed to preserving, protecting and promoting Aboriginal languages. We believe that's extremely important to the Aboriginal communities across the country, as well as extremely important to the communities that are in the area here.
LISTNUM 95 \l 14233 And we don't believe that we're going to negatively impact any of the incumbents in any significant way, so I guess essentially that we believe we're an important piece ‑‑ part of improving lives of Aboriginals here in Regina. And Lewis, if ‑‑
LISTNUM 95 \l 14234 MR. CARDINAL: We're trying to reconnect our communities with each other. I just ‑‑ as a part of our historical understanding of Canada, we know that the major urban centres across Canada were built upon these areas where indigenous peoples gathered, where many nations came together and celebrated and traded and did various kinds of business together.
LISTNUM 95 \l 14235 Regina, if it is not a part of the AVR network, will be a gaping hole for us because we find, and we know, that the importance of the voice of the Aboriginal and indigenous people here in this area is a very important dialogue. Our elders are telling us that we have to take the opportunities and create opportunities for the Aboriginal people to have a chance to communicate again, as we did in times of old; gathering together and sharing our stories and learning from each other. That's what AVR is about. It's about relationships and it's about relationship building.
LISTNUM 95 \l 14236 THE CHAIRPERSON: Thank you, Mr. Hill.
LISTNUM 95 \l 14237 We will now take a 15‑minute break by my watch. Set your time. It is 25 to, so that will mean 10 to.
‑‑‑ Upon recessing at 1035 / Suspension à 1035
‑‑‑ Upon resuming at 1050 / Reprise à 1050
LISTNUM 95 \l 14238 THE CHAIRPERSON: Order please. I want to welcome you. I want to, first, say that the time that we spent on AVR is ‑‑ may have seemed an extraordinary amount of time for one applicant. However, we have three applications from AVR on this hearing; one for Regina, one for Saskatoon, and the third, their renewal.
LISTNUM 95 \l 14239 And the evidence we obtained was for the purposes of all three applications, so I don't wish anybody to feel that there was anything untoward about that time taken in questioning.
LISTNUM 95 \l 14240 Madam Secretary...?
LISTNUM 95 \l 14241 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 14242 We are now ready to proceed with item 16 on the agenda which is an application by Natotawin Broadcasting Inc. to amend the licence of the Native radio program undertaking CJLR‑FM, La Ronge, Saskatchewan.
LISTNUM 95 \l 14243 The licensee proposes to add an FM transmitter at Regina to broadcast the programming of CJLR‑FM La Ronge in order to serve the population of Regina. The transmitter would operate on frequency 90.3 megahertz, channel 212C1 with an effective radiated power of 43,000 watts non‑directional antenna, antenna height of 190 metres.
LISTNUM 95 \l 14244 Appearing for the applicant is Ms Deborah Charles, who will introduce her colleague. You will then have 20 minutes for your presentation. Ms Charles...?
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 14245 MS CHARLES: Good morning. (Native language spoken).
LISTNUM 95 \l 14246 My name is Deborah Charles. I'm the chief executive officer for Missinipi Broadcasting and I'm here making a presentation to the Commission today.
LISTNUM 95 \l 14247 My colleague is Darrell Prokopie. He's the director of sales and marketing, and we're here today to present our application.
LISTNUM 95 \l 14248 THE SECRETARY: Please go ahead with your presentation.
LISTNUM 95 \l 14249 MS CHARLES: Okay.
LISTNUM 95 \l 14250 COMMISSIONER WILLIAMS: Can I get Darrell's last name again, please? I didn't quite hear it.
LISTNUM 95 \l 14251 MR. PROKOPIE: Certainly. It's P‑R‑O‑K‑O‑P‑I‑E, pronounced Prokopie.
LISTNUM 95 \l 14252 COMMISSIONER WILLIAMS: Thank you.
LISTNUM 95 \l 14253 MS CHARLES: Tansi, edlanete, bonjour, good morning, ladies and gentlemen of the CRTC.
LISTNUM 95 \l 14254 First, I want to thank the Commission for giving me the opportunity to be here to speak to MBC's application for an RM rebroadcast transmitter to serve the Aboriginal listening audience of Regina, Saskatchewan.
LISTNUM 95 \l 14255 We at MBC believe that the quality news and informational spoken word in Aboriginal languages, programming and entertainment by way of our Aboriginal musicials and performance artists are two of the most important ways to expose urban Canadian listening audiences to Aboriginal culture, philosophy, ideas, opinions, music and artists, and hence expand their appreciation of Canada's diverse cultures and peoples. That is why those elements are here ‑‑ are the core of our broadcast programs.
LISTNUM 95 \l 14256 MBC feels that the objectives for Canada's broadcasting systems are adequately addressed in the Broadcasting Act in that it states that programming and music should be predominantly Canadian and that the listeners should be provided with a varied and comprehensive programming from a variety of sources.
LISTNUM 95 \l 14257 MBC feels that the ‑‑ Canada's broadcasters have sorely neglected the Aboriginal variety of programming and have failed competently to respond to the needs of growing urban Aboriginal demographics, both here in Regina and elsewhere.
LISTNUM 95 \l 14258 The approval of our application so that they may provide Aboriginal language radio service to Regina area will go some way in redressing this oversight.
LISTNUM 95 \l 14259 MBC feels that the MBC/Natotawin application for a rebroadcast transmitter to carry our programs to the Aboriginal and non‑Aboriginal listeners of Regina is appropriate, and it is viable and, just as importantly, a culturally respectful response to a known need for a greater Aboriginal variety in quality radio programming.
LISTNUM 95 \l 14260 The Canadian Broadcast Act states that all programming should be of a high standard, balanced on matters of public concern, relevant to local communities, and reflect Canada's rich cultural diversity.
LISTNUM 95 \l 14261 MBC/Natotawin believes that in many respects it actually has been raised ‑‑ raising and indeed establishing the bar on the standards of the radio broadcasting relevant to the Aboriginal people on this ‑‑ of this country.
LISTNUM 95 \l 14262 I know that MBC is unique in its dedication to addressing those concerns relevant to the Aboriginal communities in ‑‑ of this province.
LISTNUM 95 \l 14263 It is MBC's view that it is only fitting that the CRTC would regulate Aboriginal radio with respect to the content offered in a manner similar to the regulation in place for non‑Aboriginal broadcasting undertakings, but we also believe that there must be an appreciation of inherent cultural differences between the Aboriginal and mainstream segments of society and how our people perceive and interpret what is offered to them over the airways.
LISTNUM 95 \l 14264 We at MBC seek to refine and improve the standards of broadcasting content directed towards our people, not to dismiss, abrogate or lower them. Most importantly, we know that Aboriginal people want to hear Aboriginal broadcasters speaking and understanding their own language, providing them with radio programs that they can relate to and easily comprehend.
LISTNUM 95 \l 14265 Respectfully our application for a licence for a rebroadcast transmitter carries with it our commitment to honour in all aspects of news and information content and Aboriginal language usage and promotion of Aboriginal artists.
LISTNUM 95 \l 14266 I do not wish to speak at length about the quality of MBC's radio service in the short time available, but I have made provisions today to all the members of the Commission to receive a copy of my speaking notes here, and also other notes that clearly outline our high standard of service and historical commitment of MBC to the provision of the best of radio, all listeners Aboriginal and otherwise.
LISTNUM 95 \l 14267 Specifically MBC by its application makes the following commitments and guarantees: MBC guarantees the Commission the daily provision of Aboriginally relevant newscasts, information and entertainment content. MBC guarantees the Commission that it will provide significantly more dedicated Aboriginal language programming and the promotion of and airplay of Aboriginal artists and performance ‑‑ performers in the daily programs than any other radio station in the province can, could or would provide.
LISTNUM 95 \l 14268 MBC guarantees the Commission that it will provide these culturally and linguistically relevant broadcasting programs to the Aboriginal community of Regina in a professional and timely manner.
LISTNUM 95 \l 14269 MBC guarantees the Commission that it will ensure the inclusion of content of specific concern to Regina's Aboriginal residents and will foster ties with the Aboriginal community for its wellbeing and benefit.
LISTNUM 95 \l 14270 MBC guarantees the Commission that it will uphold to any ‑‑ all rules of the Broadcasting Act including a commitment to cover, fulfil the Canadian content requirements.
LISTNUM 95 \l 14271 With respect to five issues that the Commission stated they wished to address in their correspondence as at October 16th, two ‑‑ 2006, I received a letter and I'll go through them in point form the way it was written to me.
LISTNUM 95 \l 14272 In addition to the English, MBC utilizes three main spoken Aboriginal languages used in Saskatchewan; Cree, Dene and Michif in its program content and provides over 20 regularly scheduled dedicated Aboriginal language programming on a weekly basis.
LISTNUM 95 \l 14273 MBC also broadcasts Aboriginal language features throughout the day and during weekend programmings ‑‑ programs. Our Monday through Friday Aboriginal language program ‑‑ programs are the daily Missinipi Achimowin program hosted and presented in the Cree and Michif languages, and the Dene ‑‑ and the daily Missinipi Dene Honi programming presented in the Dene language. Both Achimowin and Dene Honi programs are inclusive of hourly newscasts, summaries that are inclusive of all local, regional, provincial, national and international news and are delivered in Cree, Dene and Michif in ‑‑ for our audience.
LISTNUM 95 \l 14274 Our Aboriginal language programming ‑‑ programs are also inclusive of open‑line presentations where listeners can voice their opinions in Aboriginal languages on a broad spectrum of issues. The Achimowin and Dene Honi programs also deliver intensive informational content on topics that cover the gamut of Canadian Aboriginal listeners' interests in health, education, environment, justice, culture, languages, history and safety to major and minor political issues along with numerous other audience concerns.
LISTNUM 95 \l 14275 MBC has also hosted and aired hundreds of open‑line broadcast and talk show programming using Aboriginal language in the different dialects and provides in-depth, on location programming for community gatherings and events of importance to our audience.
LISTNUM 95 \l 14276 Through these and other distinctive programming approaches, MBC offers a platform for all ages to express themselves in their language and their dialects, and to be heard from elders to youth.
LISTNUM 95 \l 14277 MBC also presents its word of the day programming several times a day throughout the week, giving listeners the ‑‑ an opportunity to come to know, understand Aboriginal language used in everyday speech.
LISTNUM 95 \l 14278 MBC is prepared to offer expanded language programming to other Aboriginal language used in Saskatchewan as the opportunity presents itself.
LISTNUM 95 \l 14279 I'll just give the floor to him.
LISTNUM 95 \l 14280 MR. PROKOPIE: Thank you.
LISTNUM 95 \l 14281 Aboriginal language vocal music. MBC sponsors and promotes Aboriginal artists through consistent airplay 24/7 and significantly supports Aboriginal musicians and singers in the way that most matters, via our playlist.
LISTNUM 95 \l 14282 MBC will continue to promote Aboriginal artists to the people of Saskatchewan as we are the only broadcaster in the province that has demonstrated a commitment to Aboriginal talent by the simplest, most logical means available, and that is by playing their music for our listeners.
LISTNUM 95 \l 14283 Almost a quarter of music played on a daily basis on MBC is by Aboriginal artists, many of whom are locally based. MBC has provided Aboriginal artist in northern Saskatchewan with their first opportunities to record their music and has actively been the catalyst and vehicle of our musician sponsorship through the provision of talent showcases and public performances.
LISTNUM 95 \l 14284 MBC has hosted Aboriginal talent searches that have been simulcast on our network since 1994 and we have sponsored and broadcast the Voices of the North talent show, an Aboriginal talent showcase. MBC's talent search top prize is studio time and the songs are then broadcast on MBC.
LISTNUM 95 \l 14285 Over 100 performers have benefited from MBC's support of developing artistry through talent searches and showcases. Additionally, MBC has spent its entire operational history as a promoter of national Aboriginal recording and performance artists as a matter of cultural respect and dedication.
LISTNUM 95 \l 14286 The reality is that MBC is the main provider of access to an audience for many Aboriginal artists and cultural producers. We have presented their talent to the Aboriginal and non‑Aboriginal listening audience in Saskatchewan's communities for over two decades.
LISTNUM 95 \l 14287 Moving on to cultural programming. MBC has a culturally attuned 28‑member staff, including a news and Aboriginal language production staff of seven, all of whom are Aboriginal. The majority of them speak Cree, Dene or Michif, and some speak more than one Aboriginal language. For more than two decades MBC has employed the majority of Aboriginal speaking broadcasters in Saskatchewan.
LISTNUM 95 \l 14288 Two of our staff have been chosen as national Aboriginal role models in the past 12 years. We have an honour roll of over 40 board members and over 100 broadcast personnel coming out of the cultural milieu of Aboriginal society who have served and contributed to the growth of MBC as an organization over the past 22 years.
LISTNUM 95 \l 14289 MBC has created a legacy of unique cultural and linguistic heritage and its operations to date represent a genuine success story for the Aboriginal people of Saskatchewan.
LISTNUM 95 \l 14290 Our cultural programming covers and reports in‑depth on everything from Aboriginal spirituality, folklore, legends and stories, to traditional medicine use and Aboriginal food preparation and survival skills, along with the inherent viewpoints, opinions, ideas, and philosophy that they all entail.
LISTNUM 95 \l 14291 We are the only broadcaster in Saskatchewan to consistently cover Aboriginal trappers conventions and also to speak to the events and happenings surrounding all Aboriginal fields of employment, both traditional and non‑traditional. We cover language conferences, elders gatherings, Aboriginal political elections and Aboriginal sporting events on the local, regional, provincial, national and international level.
LISTNUM 95 \l 14292 As an example, MBC began reporting live with its own reporters from the International Indigenous Games more than a decade ago. We do all of this with a heavy emphasis on Aboriginal language use and presentation both by our staff and by the Aboriginal persons with whom we are actively engaged with in covering the story.
LISTNUM 95 \l 14293 We at MBC are mandated and entrusted to bring Aboriginal culture, languages, ideas, heritage and their perspective to the people of Saskatchewan. It is an obligation we take seriously. MBC is the radio media outlet of choice for most Aboriginal communities as well as the primary source of information for and about numerous Aboriginal organizations and individuals, and is an active participant in the public promotion of Aboriginal intellectual capacity and growth throughout the medium of radio by way of news, information, philosophy, political and social opinion, music, arts and culture.
LISTNUM 95 \l 14294 Our projected audience. MBC, by its very nature, is a non‑traditional broadcaster and we have always avoided excessive commercial style, promotional and glamorization of our service and operations.
LISTNUM 95 \l 14295 In each and every community, we have grown to serve ‑‑ in each community that we have grown to serve, we have relied on the word of mouth of the Moccasin Telegraph in building and growing our audience, thus we project our listener numbers to be low to nominal in the initial stages of providing our programs to the Regina listening audience.
LISTNUM 95 \l 14296 We do not expect to see major shifts in listener demographics. Our experience to date indicates that there will be an evolving awareness of what MBC has to offer the Aboriginal and non‑Aboriginal listeners and that there will be a corresponding, reflective positive rise in the MBC listening audience numbers. We anticipate having a minimum of 20,000 listeners by the third year of operation.
LISTNUM 95 \l 14297 In making these loose projections, MBC has taken into account the expanding Aboriginal population demographics presented by Stats Canada and have balanced that with other known quantities such as the strength of our Aboriginal entities and organizations in Regina, and the participation rate and contact with urban Aboriginal society that they have experienced.
LISTNUM 95 \l 14298 Next we move on to our anticipated revenue projections. MBC anticipates minimal economic revenues to be derived from its establishment of the Regina rebroadcast transmitter during its first two years of operation. MBC does hope to reach a positive revenue flow from advertising sales by the third to fourth year so as the cover costs of the rebroadcast transmitter installation and its ongoing operational expenses.
LISTNUM 95 \l 14299 MBC seize its ‑‑ sees its responsibility to providing a service to the Aboriginal audience of Regina regardless of revenues, though by the end of the third year, as stated, we do anticipate a close‑to‑break‑even prospect.
LISTNUM 95 \l 14300 MBC has no immediate plans to pursue advertising revenues through active solicitation as there are no plans in place to hire a sales representative to be based out of Regina. MBC will continue to utilize its four‑person sales team based out of Prince Albert to service the advertising clients of MBC.
LISTNUM 95 \l 14301 To provide exact revenue increments at this time would be quite difficult as we feel that any immediate gains will be derived from clients purchasing the MBC radio network and not necessarily the local Regina market. This is held true during past urban expansions such as North Battleford and most recently Saskatoon.
LISTNUM 95 \l 14302 There is also the reality that MBC has only so much air time to sell. We're dealing with one clock. Because MBC is many things to many people, we need to make our advertising available to all we serve. The small community event in northern Saskatchewan is just as important to MBC as a huge retail event in an urban centre.
LISTNUM 95 \l 14303 Now, I did include some projections for you. These are probably on the aggressive side as we move into the third year. At the completion of year one, I've indicated approximately $30,000 in revenue. Keep in mind, we currently are getting some advertising dollars out of the Regina market as we speak. Most of them are provincial type clients, but the billing does come to Regina, so we currently ‑‑ like I say, we're not starting from a point zero situation.
LISTNUM 95 \l 14304 At the completion of year two I've doubled that figure to show $60,000 in anticipated revenue and the completion of year three is when we are hoping to cover off our hard costs that we would incur through this expansion through the establishment of technology and the ongoing operations. So at year three, I did pen that in at $100,000.
LISTNUM 95 \l 14305 I will pass it back to Deborah for her closing statement.
LISTNUM 95 \l 14306 Thank you.
LISTNUM 95 \l 14307 MS CHARLES: Thank you, Darrell.
LISTNUM 95 \l 14308 In closing, may I say to the Commission that MBC has also ‑‑ has laboured through more than 20 years in building a community based Aboriginal radio network utilize ‑‑ utilizing highly skilled Aboriginal broadcasters and linguists to serve our people, my people. Through a measured study approach we are growing in a meaningful presence for the Aboriginal radio audience in Saskatchewan and we trust that that will happen here in Regina for our people, my people. So thank you.
LISTNUM 95 \l 14309 THE CHAIRPERSON: Thank you, and thank you for coming.
LISTNUM 95 \l 14310 I have a few questions for you, not that you didn't very completely and very well cover all of our issues raised in our notice.
LISTNUM 95 \l 14311 Now, do either one of you ‑‑ are either one of you involved in the programming side at all?
LISTNUM 95 \l 14312 MR. PROKOPIE: Not to a great extent, but I'm sure between the two of us we could ‑‑
LISTNUM 95 \l 14313 THE CHAIRPERSON: Okay, subject to the fact that you're not the experts?
LISTNUM 95 \l 14314 MR. PROKOPIE: Right.
LISTNUM 95 \l 14315 THE CHAIRPERSON: We just wanted to know ‑‑ you have old time music on Saturday and Sunday nights. Do you know what it is? Is it old rock? Old country?
LISTNUM 95 \l 14316 MR. PROKOPIE: No, it's old classic country. It's the George Jones, the Buck Owens, the traditional country.
LISTNUM 95 \l 14317 THE CHAIRPERSON: Mmhmm, okay.
LISTNUM 95 \l 14318 MR. PROKOPIE: The Saturday mornings, yes, and Sundays.
LISTNUM 95 \l 14319 THE CHAIRPERSON: Yeah. And then you have on Wednesday night '70s and '80s music. What kind of music is that?
LISTNUM 95 \l 14320 MR. PROKOPIE: That is primarily of the rock nature. That's more rock and roll.
LISTNUM 95 \l 14321 THE CHAIRPERSON: Okay.
LISTNUM 95 \l 14322 MR. PROKOPIE: And again, if I can maybe just interject, because MBC is many things to many people. We do have a 5 to 95 year‑old demographic, so our programming tries to incorporate something for everybody over the course of our broadcast week.
LISTNUM 95 \l 14323 THE CHAIRPERSON: And you do broadcast Aboriginal language music?
LISTNUM 95 \l 14324 MR. PROKOPIE: Yes, we do.
LISTNUM 95 \l 14325 THE CHAIRPERSON: How much would you say ‑‑ how much of it would you say you do out of the total music?
LISTNUM 95 \l 14326 MR. PROKOPIE: Oh, I would really be shooting blind.
LISTNUM 95 \l 14327 THE CHAIRPERSON: Okay.
LISTNUM 95 \l 14328 MR. PROKOPIE: Over the course of a day, you know, I'm quite confident in saying that probably in the neighbourhood of half a dozen songs would be sung in the Aboriginal language, and quite often those are aired during our Aboriginal languages programming. Not always; they could be requested during one of our two request shows that we have each day but probably in the neighbourhood of half a dozen per day.
LISTNUM 95 \l 14329 THE CHAIRPERSON: And are those all Canadian, the Aboriginal songs, the language songs?
LISTNUM 95 \l 14330 MR. PROKOPIE: Yes, they are.
LISTNUM 95 \l 14331 THE CHAIRPERSON: Okay. Now, right now, what kind of news coverage do you have of Regina? Do you have a reporter down here?
LISTNUM 95 \l 14332 MR. PROKOPIE: We do not. There has been some discussions with some organizations and individuals to have them supply us information. I know there are plans, once we get up and running and the Moccasin Telegraph takes effect and there is an awareness of ultimately putting some stringers or people into Regina to cover off those events, but discussions have started. Nothing has been laid down in ‑‑ in ink as of yet, as we don't know where we sit.
LISTNUM 95 \l 14333 THE CHAIRPERSON: When I saw this question that staff asked me to read, I was asking myself whether Saskatoon is really more the ‑‑ Saskatoon/Prince Albert/La Ronge is more the ‑‑ what would I say? The ‑‑ well, Saskatoon particularly, the political capital because the FSIN is there, and so I was sort of thinking that coverage of the legislature here would probably be secondary to ‑‑ of interest to your listeners.
LISTNUM 95 \l 14334 MR. PROKOPIE: Of the provincial legislature? Yes, probably it would be secondary to our audience.
LISTNUM 95 \l 14335 THE CHAIRPERSON: Yeah.
LISTNUM 95 \l 14336 MR. PROKOPIE: If it was an FSIN Assembly that was being held here in Regina, we would be here as we were in Saskatoon just a week or so ago.
LISTNUM 95 \l 14337 THE CHAIRPERSON: At the elections, right, yeah.
LISTNUM 95 \l 14338 MR. PROKOPIE: Right. We had two of our language announcers from La Ronge attend for the ‑‑ a few days and provide live programming for three hours each afternoon back to our audience in both the Cree and Dene languages.
LISTNUM 95 \l 14339 THE CHAIRPERSON: Okay. And so the kind of programming that you would do about Regina would consist of when it would be of an issue or an event of importance to the First Nations community?
LISTNUM 95 \l 14340 MR. PROKOPIE: Primarily, yes. When ‑‑ it doesn't have to be necessarily a breaking news story or something that has dire consequences, but just a story of interest that is not maybe high on the list of newscasts that you may hear elsewhere.
LISTNUM 95 \l 14341 Certainly once our stringers come on board, we will have a ‑‑ you know, a thumb on the pulse, so to speak, to develop that.
LISTNUM 95 \l 14342 THE CHAIRPERSON: Do you follow the powwow circuit at all?
LISTNUM 95 \l 14343 MR. PROKOPIE: We are slowly developing that. Powwow is a relatively new phenomenon in northern Saskatchewan. Powwows were not anything that existed and then ‑‑ I would have to go to Deb's expertise on this, but going back ten years, you probably couldn't find a powwow north of Prince Albert. Now they're starting to happen.
LISTNUM 95 \l 14344 We don't necessarily follow the circuit in terms of providing programming from, but we certainly get involved through sponsorship of and promotion of.
LISTNUM 95 \l 14345 THE CHAIRPERSON: Mmhmm, okay. Now, your language programming, you say over 20 hours and the daily Missinipi Achimowin program is from 1 to 3 ‑‑ I've got your schedule here from the site ‑‑ Monday through Friday, am I correct?
LISTNUM 95 \l 14346 MR. PROKOPIE: (Nods head yes.)
LISTNUM 95 \l 14347 THE CHAIRPERSON: And then the daily Missinipi Dene Honi program, and that is ‑‑ I'm losing it. I can't find it ‑‑ 3 to 4?
LISTNUM 95 \l 14348 MR. PROKOPIE: That is correct. I may also ‑‑ should interject. That ‑‑ what you've just read, that's the network. So the entire network receives those three hours of programming. We do have the capability and we do split‑feed the far north communities, the Athabasca Basin which is basically Dene people ‑‑ speaking people, and we do provide them with their own special hour, and that happens between 2 and 3 each day. So we split‑feed ‑‑ the last half of the Cree show, we basically switch over and we offer Dene programming to the far north, the Athabasca region.
LISTNUM 95 \l 14349 THE CHAIRPERSON: Okay. So Ray Campbell would start, in fact, an hour earlier?
LISTNUM 95 \l 14350 MR. PROKOPIE: Correct.
LISTNUM 95 \l 14351 THE CHAIRPERSON: And provide the two hours for the Dene area?
LISTNUM 95 \l 14352 MR. PROKOPIE: Correct.
LISTNUM 95 \l 14353 THE CHAIRPERSON: Okay. And then ‑‑ I was fascinated by this. You give the news in all ‑‑ in English, Cree, Michif and Dene?
LISTNUM 95 \l 14354 MR. PROKOPIE: Yeah, we do.
LISTNUM 95 \l 14355 THE CHAIRPERSON: And you do it by split feed or how do you do it?
LISTNUM 95 \l 14356 MR. PROKOPIE: No.
LISTNUM 95 \l 14357 THE CHAIRPERSON: Is ‑‑
LISTNUM 95 \l 14358 MR. PROKOPIE: That ‑‑ that's network, network news. So at 1 o'clock when our Cree show comes on board, they would do a top‑of‑the‑hour newscast that, you know, may be very similar to what was done during the 12 o'clock English informational hour.
LISTNUM 95 \l 14359 THE CHAIRPERSON: Okay.
LISTNUM 95 \l 14360 MR. PROKOPIE: And they'll read that news in the Cree language, and then that happens again for the Dene hour.
LISTNUM 95 \l 14361 THE CHAIRPERSON: Okay. And in both the Vern Lewis and Mike Durocher hour and the Missinipi Dene Honi hour, there's music and speaking?
LISTNUM 95 \l 14362 MR. PROKOPIE: Yes, there's music and speaking. The speaking can be anything from information whether it be again an event or a situation or a story that's out there, to just things of cultural relevance. It's not necessarily chalked full of hard hitting information all the time. It's of relevance to the audience that it's speaking to.
LISTNUM 95 \l 14363 THE CHAIRPERSON: And would you have an idea of the percentage of music and spoken word in those hours?
LISTNUM 95 \l 14364 MS CHARLES: I'd say 40 percent.
LISTNUM 95 \l 14365 THE CHAIRPERSON: You have to put your mic on.
LISTNUM 95 \l 14366 MS CHARLES: I'd say 40 percent in an hour.
LISTNUM 95 \l 14367 THE CHAIRPERSON: Forty percent music?
LISTNUM 95 \l 14368 MS CHARLES: Yeah.
LISTNUM 95 \l 14369 THE CHAIRPERSON: Okay, mmhmm. And then you have the 9 to 11 morning Cree on Sunday, and that's entirely in Cree?
LISTNUM 95 \l 14370 MR. PROKOPIE: Cree and with some Michif thrown in there, yes.
LISTNUM 95 \l 14371 THE CHAIRPERSON: Oh, okay, okay. And you do broadcast a hundred and ‑‑ 168 hours week?
LISTNUM 95 \l 14372 MR. PROKOPIE: We do.
LISTNUM 95 \l 14373 THE CHAIRPERSON: What do you do at night? What's your programming from midnight on?
LISTNUM 95 \l 14374 MR. PROKOPIE: It's in‑house voice tracking, utilizing our own talent that we have on staff.
LISTNUM 95 \l 14375 THE CHAIRPERSON: Okay, mmhmm. So is that the only voice tracking you've got from midnight to six or is it ‑‑
LISTNUM 95 \l 14376 MR. PROKOPIE: No, that is it.
LISTNUM 95 \l 14377 THE CHAIRPERSON: Okay. And any syndicated programming?
LISTNUM 95 \l 14378 MR. PROKOPIE: We do, for our youth, carry a syndicated dance show on Saturday nights as part of our Saturday night house party for the youth and we do subscribe to a syndicated dance program that airs, I believe, between 9 and 10 on Saturday evenings.
LISTNUM 95 \l 14379 We have syndicated programming ‑‑ Paul Harvey, you know, as an example ‑‑ over our noon information package, so we have a couple of items that are syndicated, yes.
LISTNUM 95 \l 14380 THE CHAIRPERSON: Mmhmm, okay. Now, you've heard AVR and how they describe their programming. Have you ever listened online to AVR?
LISTNUM 95 \l 14381 MS CHARLES: No.
LISTNUM 95 \l 14382 MR. PROKOPIE: I've tried.
LISTNUM 95 \l 14383 THE CHAIRPERSON: Oh. And ‑‑
LISTNUM 95 \l 14384 MR. PROKOPIE: And no, I have not.
LISTNUM 95 \l 14385 THE CHAIRPERSON: Have not been successful, okay. Could you explain how you believe you are different from them, if you think you are?
LISTNUM 95 \l 14386 MR. PROKOPIE: Well, I guess it starts at the grassroots. MBC was created by the people of northern Saskatchewan, to fulfil a need that they saw was lacking in terms of the information that they were getting on a regular basis, who was giving them that information, was it coming from a First Nations perspective or was it not. In the past, it was not.
LISTNUM 95 \l 14387 So MBC basically ‑‑ we don't make a move without our audience, the people that we serve telling us to make that move, and they tell us by way of e‑mail, phone calls. They tell us by way of the delegates that they send to our annual general meeting from which our 11 board of directors is elected. So they certainly pass on their concerns and what they would like MBC to evolve into through our board members, and that's passed on down through our CEO and senior management.
LISTNUM 95 \l 14388 We are very much focused on the people that we serve. The information is of most importance. MBC is about bringing people to the people. We don't wish to be anything more than we've currently applied for, and that's a provincial network to service the Aboriginal population of Saskatchewan. We're just ‑‑ we're ‑‑ Saskatchewan is our home. The languages spoken are our languages, and those are the languages that we've mandated to protect and preserve through our form of medium. Does that answer your question at all?
LISTNUM 95 \l 14389 THE CHAIRPERSON: Yeah, I think so, yeah. Do you think ‑‑ well, what would be the impact on you if we gave you a rebroadcast licence here and if AVR were also given a licence? What would be the impact on you?
LISTNUM 95 \l 14390 MR. PROKOPIE: That's a tough question, and I don't really know the answer to that. I believe initially, like anything new, there's always a rush to check out what's new, whether that be turning the dial or tuning in through the Internet. I ‑‑ you know, certainly there will be a learning curve by the audience and ultimately ‑‑ you know, they will ultimately decide what is going to best suit them.
LISTNUM 95 \l 14391 We feel that, again, through our programming, through our roots, through our governance that, you know, over time, we will ‑‑ we will be the Aboriginal broadcaster of Saskatchewan.
LISTNUM 95 \l 14392 THE CHAIRPERSON: And I have asked myself I must say, time and time again if there is a difference between a "northern or rural Aboriginal culture and an urban Aboriginal culture", and I am ‑‑ I'm on two sides of this. It seems to me the thing that brings you together is the same culture as you've always had, whether you're urban or rural.
LISTNUM 95 \l 14393 On the other hand, it may be easier to retain your culture if you are on a reserve or in northern Saskatchewan, north of Prince Albert, but do you think there is a different culture? I don't ‑‑
LISTNUM 95 \l 14394 MR. PROKOPIE: I don't know if the culture is different so much as how often and regularly the culture has gone back to or utilized. I think the culture tends to maybe be lost in the urban centres because you don't walk down the street and see your friends and your neighbours who are speaking to you within the language.
LISTNUM 95 \l 14395 So I think quite often First Nations people who relocate from the smaller communities or northern communities tend to climatize to the surroundings around them. I know that's not necessarily what they wish to do, and it's very nice to hear the comments that we get at MBC, is "Oh, I just love tuning into MBC because I sit back and I'm at home." You know, so whether they've ‑‑ they're now in Saskatoon but they've come from northern Saskatchewan, it does allow that connection to maintain.
LISTNUM 95 \l 14396 But to answer your question, I think there is some culture lost. It's not by design; it's just by environment.
LISTNUM 95 \l 14397 THE CHAIRPERSON: And your ‑‑ the reactions you've been receiving in Saskatoon ‑‑ and you talked about people leaving ‑‑ you know, leaving home and then going to Saskatoon. What about the kids that are born in Saskatoon? What's the reaction to your programming?
LISTNUM 95 \l 14398 MR. PROKOPIE: Well, what we understand is we have the best youth programming out there, and I heard that many times just last week when I was in Saskatoon for the assembly. I don't know how many youth we had walk past our trade show display and said, MBC rocks. Love your Saturday night. It's not my kind of music, but I know it's music that cannot easily be found out there through other radio networks and other forms unless you go, you know ‑‑ or download a bunch of your favourite music and, you know, then you would have what we play. But we have a youth on‑air person who is very interactive with the audience, and the feedback is very, very positive from the youth of Saskatoon.
LISTNUM 95 \l 14399 Just coming up, I believe this weekend, out of our ‑‑ our Saturday night house party DJ will be in Saskatoon MCing and hosting an event for the youth of Saskatoon that's being put on by an organization. And MBC has come on board through sponsorship and supply ‑‑ supplying some talent there to do the MC duties at the request of the organization. So we feel that we're making great strides with the youth in Saskatoon.
LISTNUM 95 \l 14400 THE CHAIRPERSON: So ‑‑ and then do you think once you got them hooked on the evening ‑‑ on the Saturday evening you can then take them further in terms of getting back to the ‑‑ their culture? Like, how do you do that?
LISTNUM 95 \l 14401 MR. PROKOPIE: Well, it's certainly the hope that ‑‑ you know, I don't know if we can take them back, but lest we never forget. And, you know, we certainly do things that, again, because they're youth, you know, it ‑‑ there's still a culture that surrounds what they're doing and where they've come from.
LISTNUM 95 \l 14402 And everything we do keeps referring back to the culture and where you've come from, living a positive, healthy lifestyle, respecting your elders, whatever the message may be. You know, we plug away. It's that constant drip of water that wears away at the stone.
LISTNUM 95 \l 14403 THE CHAIRPERSON: Yeah. And you were talking about the fact that your programming is sort of ‑‑ what's the word ‑‑ done based on demand. So if you were down here, and I see on it ‑‑ I don't ‑‑ there's a ‑‑ on the fourth page of your presentation you were talking about Word of the Day and you say, "MBC is prepared to offer expanded language programming and other Aboriginal languages used in Saskatchewan as the opportunity presents itself."
LISTNUM 95 \l 14404 So the issue would be that somebody would e‑mail, write you or come to your meeting and say "I want programming in Saulteaux" or whatever ‑‑ Saulteaux, yeah ‑‑ and then you would try to do it. Is that the concept?
LISTNUM 95 \l 14405 MR. PROKOPIE: That's exactly the concept. And as we speak here, you know, we're working towards even ‑‑ you know, barring some miracle that we don't get our application, we still plan on incorporating Saulteaux Word of the Day for our Saskatoon audiences.
LISTNUM 95 \l 14406 It's something that's been brought to our attention and it's something we're working towards and right now we're just trying to put the pieces in place and find out how we can best do it from a technical point of view. And as ‑‑ so basically we are working towards incorporating the Saulteaux into our Word of the Day as we speak.
LISTNUM 95 \l 14407 THE CHAIRPERSON: Mmhmm. Tell me about this foundation, the Missinipi Youth Foundation. It's created by Missinipi?
LISTNUM 95 \l 14408 MS CHARLES: Yes, it is and it was incorporated in 1998. And what we did is we incorporated Missinipi Youth Foundation and we offered scholarships to First Nations/Aboriginal people to attend university, U of S, U of R, First Nations University Canada, to take journalism.
LISTNUM 95 \l 14409 Now, we also offer small local community radio stations. We offer training programs in their respective communities and then they start their local radio stations at that level, and then most of the time it's on our transmitter.
LISTNUM 95 \l 14410 However, back to your question, yeah, we've incorporated that a while ago and we continue to do that and we continue to offer scholarships, and that's part of the Saturday night program that we offer to the youth as well.
LISTNUM 95 \l 14411 THE CHAIRPERSON: So the money comes from your profits? Is that the idea, and it's put into the foundation?
LISTNUM 95 \l 14412 MR. PROKOPIE: Yeah.
LISTNUM 95 \l 14413 THE CHAIRPERSON: And then the scholarships are given out?
LISTNUM 95 \l 14414 MR. PROKOPIE: (Nods head yes.)
LISTNUM 95 \l 14415 THE CHAIRPERSON: So to date, how many scholarships in journalism or broadcasting have you given out?
LISTNUM 95 \l 14416 MS CHARLES: Gees, I don't have ‑‑
LISTNUM 95 \l 14417 THE CHAIRPERSON: And any number ‑‑
LISTNUM 95 \l 14418 MS CHARLES: ‑‑ a number on that.
LISTNUM 95 \l 14419 THE CHAIRPERSON: How many did you give out last year?
LISTNUM 95 \l 14420 MS CHARLES: Seven. Seven each year, and when we first started, it was one or two or three. I haven't kept track. However, I do believe there's about eight of them with degrees now. And then I have ‑‑ the three I offered this year will be completing their degrees, so it's growing.
LISTNUM 95 \l 14421 THE CHAIRPERSON: And do you give them a job or does the APTN grab them?
LISTNUM 95 \l 14422 MS CHARLES: It depends what broadcasting, if they further into television or radio or print. However, there is some that come on board with APTN. I'm also on the board there as well. But, yeah, we've recruited some of the students from that initiation.
LISTNUM 95 \l 14423 MR. PROKOPIE: And that is probably our ultimate goal and objective is our in‑house recruiting. There ‑‑ we find quite often there is a lack of trained broadcasters with an Aboriginal background. And because we used to have, and still to this day, continue to have some difficulty in securing professional talent, we thought, well, let's maybe help create them by offering these scholarships to post‑secondary students who are going into a communications/journalism type field. That may give us a bit of a pool to draw from down the years, so there was some very selfish background behind that as well. We were hoping to utilize that talent.
LISTNUM 95 \l 14424 THE CHAIRPERSON: Mmhmm. Tell me, where are your offices? Are they in La Ronge or on the reserve, on the band ‑‑
LISTNUM 95 \l 14425 MS CHARLES: No, we're not on the reserve. We're ‑‑ we got a head office and the ‑‑ in La Ronge on Industrial Drive. We also have a sales and marketing office in Prince Albert.
LISTNUM 95 \l 14426 THE CHAIRPERSON: Because what ‑‑ I was thinking that part of the advantage could be that you'd be tax free if you were on the reserve. That would be an advantage for anybody in terms of recruitment, you know.
LISTNUM 95 \l 14427 MR. PROKOPIE: It would, but it would challenge our governance, we believe.
LISTNUM 95 \l 14428 THE CHAIRPERSON: All right. I get your point, mmhmm.
LISTNUM 95 \l 14429 MR. PROKOPIE: Again, our board is derived from members at large of the community, and to put ourselves with ‑‑ within a First Nation or a community, even if the ‑‑ even if it is a reality, the perception would be that ‑‑ where there's an affiliation that perhaps we could be nudged or pushed into a certain direction, so we've never aligned ourselves with any organization or group in that manner.
LISTNUM 95 \l 14430 THE CHAIRPERSON: Mmhmm, you and NCI. Now, MBC Television, I didn't realize there was a television portion of it, and it tells stories and shows to ‑‑ you know, shows to maintain culture. What do they actually do?
LISTNUM 95 \l 14431 MS CHARLES: I'll just get ‑‑ give you a bit of history. Yateyaski(ph) Productions was incorporated in 1980 ‑‑ 1998, and we produce half‑hour documentaries by and for, about our people in northern Saskatchewan, so we're producing 13 half‑hour documentaries. We air them on APTN as a national window broadcaster, and then our second broadcaster, our second envelope is SCN which is the regional broadcaster.
LISTNUM 95 \l 14432 THE CHAIRPERSON: Right.
LISTNUM 95 \l 14433 MS CHARLES: We air it. However, we downsized it to six and we get our funding from Telefilm and other funders, so we're still doing it.
LISTNUM 95 \l 14434 THE CHAIRPERSON: Okay. Now you, Ms Charles, are on the board of APTN and so do you have some sort of a cooperative arrangement with them at all?
LISTNUM 95 \l 14435 MS CHARLES: Yes, I am on the board. I am appointed to that board. We ‑‑ the ‑‑ there's ten organizations across northern Saskatchewan that are broadcasters, radio broadcasters, and their original vision was to have a national Aboriginal television. So basically we gave it birth and so we have an envelope and a budget where we deliver that and produce those documentaries.
LISTNUM 95 \l 14436 THE CHAIRPERSON: Mmhmm. And do you receive any ‑‑ anything from APTN in terms of being able to use the news they've gathered or anything like that?
LISTNUM 95 \l 14437 MS CHARLES: For regional news?
LISTNUM 95 \l 14438 THE CHAIRPERSON: Mmhmm.
LISTNUM 95 \l 14439 MS CHARLES: We've delivered some, but it's not consistent. It has to be a national ‑‑
LISTNUM 95 \l 14440 THE CHAIRPERSON: Relevance.
LISTNUM 95 \l 14441 MS CHARLES: ‑‑ relevance. Most of the news is regional for us. However, we do carry national, and I'm in the process of working on a newscast from my office with a regional broadcaster, not a national, because we already have the national.
LISTNUM 95 \l 14442 THE CHAIRPERSON: Okay. And WAAB, Western Association of Aboriginal Broadcasters, you're a member?
LISTNUM 95 \l 14443 MS CHARLES: Yes, I am. I am a founding member. A couple years ago I was ‑‑ incorporated a national group. However, I changed that to the Western Association of Aboriginal Broadcasters, whereas the western groups come together and meet, which is NCI of Manitoba, MBC of Saskatchewan, AMMSA of Alberta, and NBT of BC, and we have been working together for the past year, face‑to‑face conference calls, and our first live broadcast is this Friday on the Aboriginal Peoples Music Choice Awards, so that's our first broadcast.
LISTNUM 95 \l 14444 THE CHAIRPERSON: Oh, so you're going to all broadcast it? Is that the idea?
LISTNUM 95 \l 14445 MS CHARLES: Yes ‑‑
LISTNUM 95 \l 14446 THE CHAIRPERSON: Oh, okay.
LISTNUM 95 \l 14447 MS CHARLES: ‑‑ we will.
LISTNUM 95 \l 14448 THE CHAIRPERSON: Okay, mmhmm. And then you have plans for further sort of cooperation and that sort of thing?
LISTNUM 95 \l 14449 MS CHARLES: Yes. And the next live broadcast I would like to do is the residential school early release payments or their first instalment and the abuse that continues to happen with the elders, and none of it really went to healing, so that's the second initial broad ‑‑ live broadcast that I want to do.
LISTNUM 95 \l 14450 MR. PROKOPIE: If I could just interject? We are also currently, and have been for probably the last three, four months anyway, been airing a national top 30 Aboriginal countdown which is put together, produced, hosted by NCI but is delivered to the four ‑‑ the other three groups within WAAB, and we air that twice a week as well. So that is also a WAAB initiative.
LISTNUM 95 \l 14451 THE CHAIRPERSON: So he's up to 30 now?
LISTNUM 95 \l 14452 MR. PROKOPIE: Yes.
LISTNUM 95 \l 14453 THE CHAIRPERSON: Last time I talked to him it was 20. Now, as ‑‑ I wanted to talk to you about your revenue. As a percentage of the total of your revenue, how much does advertising consist?
LISTNUM 95 \l 14454 MR. PROKOPIE: Well, I would need to let Deb address that one because also we do have fundraising, our bingo operations.
LISTNUM 95 \l 14455 THE CHAIRPERSON: Your bingo, yeah, mmhmm.
LISTNUM 95 \l 14456 MR. PROKOPIE: And I'm not sure exactly where those percentages lie. Right now I'm thinking that it's probably along the lines of 50 percent, give or take a little bit. Fifty percent would be advertising driven.
LISTNUM 95 \l 14457 THE CHAIRPERSON: And the bingo is the other 50; is that ‑‑
LISTNUM 95 \l 14458 MR. PROKOPIE: Yeah.
LISTNUM 95 \l 14459 THE CHAIRPERSON: Oh, yeah. So you're self‑sustaining?
LISTNUM 95 \l 14460 MR. PROKOPIE: No, the ‑‑
LISTNUM 95 \l 14461 THE CHAIRPERSON: No?
LISTNUM 95 \l 14462 MR. PROKOPIE: ‑‑ we do get ‑‑ there is some national funding through NNBAP.
LISTNUM 95 \l 14463 THE CHAIRPERSON: Okay, mmhmm.
LISTNUM 95 \l 14464 MR. PROKOPIE: But that's been on a steady decline over a number of years, and we're certainly building towards 100 percent self‑sustenance. We think that day is probably coming, and we've been building towards that for a while.
LISTNUM 95 \l 14465 If Heritage Canada came today and said that, you know, these monies would no longer be available, we could proceed with our day‑to‑day operations. Right now it's not even covering our Aboriginal language announcers.
LISTNUM 95 \l 14466 THE CHAIRPERSON: Mmhmm. Tell me about your transmitter coverage of Saskatchewan. You're not down in Swift Current, are you?
LISTNUM 95 \l 14467 MR. PROKOPIE: No, we're not.
LISTNUM 95 \l 14468 THE CHAIRPERSON: No. Are you Estevan way, Weyburn way?
LISTNUM 95 \l 14469 MR. PROKOPIE: Carlyle/White Bear.
LISTNUM 95 \l 14470 THE CHAIRPERSON: Oh, right. You are, yeah. Okay.
LISTNUM 95 \l 14471 MR. PROKOPIE: Carlyle/White Bear. We're currently also in Keeseekoose, but I'm sure you've ‑‑
LISTNUM 95 \l 14472 THE CHAIRPERSON: And those are all low power, right?
LISTNUM 95 \l 14473 MR. PROKOPIE: Right.
LISTNUM 95 \l 14474 THE CHAIRPERSON: Yeah. Now ‑‑
LISTNUM 95 \l 14475 MR. PROKOPIE: And we have just been recently approved for Yorkton for a rebroad.
LISTNUM 95 \l 14476 THE CHAIRPERSON: Yeah. North of Prince Albert is your coverage equivalent to or better than CBC's?
LISTNUM 95 \l 14477 MR. PROKOPIE: Better than.
LISTNUM 95 \l 14478 THE CHAIRPERSON: Any idea of your share of the market in Saskatoon?
LISTNUM 95 \l 14479 MR. PROKOPIE: No.
LISTNUM 95 \l 14480 THE CHAIRPERSON: No. And is it fair to say that your numbers here, your revenue projections, Mr. Prokopie ‑‑ Prokopie, is close to what happened in Saskatoon?
LISTNUM 95 \l 14481 MR. PROKOPIE: That would be a more aggressive pace than what has happened in Saskatoon. And again, we haven't been actively soliciting advertising in Saskatoon. Since our transmitter went up, we probably have five days of selling time there just because we've gone there to ‑‑ you know, to address something, whether it be at the FSIN or ‑‑ and, you know, we've made a call or two, but we just not have actively solicited advertising in Saskatoon.
LISTNUM 95 \l 14482 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 14483 That's all my questions. Commissioner Pennefather would like to ask you some questions.
LISTNUM 95 \l 14484 COMMISSIONER PENNEFATHER: Thank you, Madam Chair.
LISTNUM 95 \l 14485 Just one question. I notice in your letter of August 16 you talk about your ever expanding listening audience of over 100,000 in 60 locations and the Internet. Can you give us a sense of the Internet and how many hits, what proportion of the audience is coming through the website or the Internet?
LISTNUM 95 \l 14486 MR. PROKOPIE: The portion of our audience coming through the website would be very minimal. And again, I'm not the technical expert, but I believe we have only 30 ports or something where only 30 people can be online at any given time.
LISTNUM 95 \l 14487 So as for our hits, I was quite surprised to hear that we are getting in excess of 5,000 hits a month. I've ‑‑ no, I think I'm actually very low. I heard this number from our technical person not long ago, and we were all very surprised at the number of hits we were getting on our website.
LISTNUM 95 \l 14488 I don't necessarily believe they're all going to the streaming audio. We ‑‑ a lot of our news stories get put onto our website. There's a message board. There's some interactive stuff there, so our website is being very ‑‑ it being hit very regularly, but the percentage of our audience coming from it, I think, would be minimal.
LISTNUM 95 \l 14489 COMMISSIONER PENNEFATHER: Good distinction. And they were just all in one line, so that's a very interesting distinction. Thank you for that. Thank you, Madam Chair.
LISTNUM 95 \l 14490 THE CHAIRPERSON: Vice‑chair Arpin...?
LISTNUM 95 \l 14491 COMMISSIONER ARPIN: You ‑‑ you've been speaking about your youth programming and particularly what you do on the Saturday and you were talking about the reaction in Saskatoon. I ‑‑ have you been able to measure the audience that you could get from non‑Aboriginal people in places like Saskatoon or Prince Albert?
LISTNUM 95 \l 14492 MR. PROKOPIE: We haven't found the ruler yet that we can lay down and measure that. Again, just by the requests we get, just by the number of messages on our message board on our website, we feel that that number is strong and continues to grows ‑‑ to grow.
LISTNUM 95 \l 14493 Again, everybody puts their pants on one leg at a time, so the music that the Aboriginal youth are grooving to on Saturday night is also the music that the non‑Aboriginal youth cannot access and find anywhere else, so we truly believe we've got a good portion of them. Unfortunately, like, I cannot give you any measurement.
LISTNUM 95 \l 14494 COMMISSIONER ARPIN: But you know that you're getting a reaction from the audience and ‑‑
LISTNUM 95 \l 14495 MR. PROKOPIE: We certainly know that, yes.
LISTNUM 95 \l 14496 COMMISSIONER ARPIN: And you could expect the same thing here from ‑‑ in Regina if ‑‑
LISTNUM 95 \l 14497 MR. PROKOPIE: We're anticipating that fully, yes.
LISTNUM 95 \l 14498 COMMISSIONER ARPIN: Fully. Now, I've been looking at the financial report that you have been filing with the CRTC in which you're saying that you're probably somewhere 50/50 between local advertising and other revenues.
LISTNUM 95 \l 14499 Now, our reports are showing only other revenues. Is it the ‑‑ we're trying to measure the performance of advertising in this country, and is it because you'd ‑‑ I really didn't investigate the question before coming to the hearing on this sort of material while you were talking, looking specifically at the information that I have, which is ‑‑ and is it the way it's reported or is it the ‑‑ a problem that you have in the reporting the ‑‑ to the CRTC not splitting what is advertising and what is other revenues? Or is it at the CRTC that we have a problem?
LISTNUM 95 \l 14500 I'm just asking the question and looking at staff, if they also have an answer. The ‑‑ are you aware of the type of report that you're sending on an annual basis?
LISTNUM 95 \l 14501 MR. PROKOPIE: No, I can't say I'm fully aware. Deb may be able to answer this more specifically. I think maybe what may be happening is, within MBC we have a number of companies that all funnel back to MBC. MBC is the mother ship. I represent an organization Tucho(ph) Enterprises which is our advertising arm, our revenue arm. We're here on behalf of Natotawin Broadcasting today, which actually gets the advertising that we sell on the air and provides our programming.
LISTNUM 95 \l 14502 So, you know, there's a number of revenue sources coming from the individual companies that ultimately end up in MBC, and that's probably what you're seeing.
LISTNUM 95 \l 14503 COMMISSIONER ARPIN: And then they do distribute that revenues to each of the units that MBC is operating?
LISTNUM 95 \l 14504 MR. PROKOPIE: Correct.
LISTNUM 95 \l 14505 COMMISSIONER ARPIN: And that's why they will not consider it as advertising but will put it in the other revenue category? That ‑‑
LISTNUM 95 \l 14506 MR. PROKOPIE: Yeah.
LISTNUM 95 \l 14507 COMMISSIONER ARPIN: Well, that satisfies my question.
LISTNUM 95 \l 14508 MR. PROKOPIE: All right.
LISTNUM 95 \l 14509 COMMISSIONER ARPIN: Thank you. Thank you, Mrs. Chair.
LISTNUM 95 \l 14510 THE CHAIRPERSON: Thank you. Commissioner Williams...?
LISTNUM 95 \l 14511 COMMISSIONER WILLIAMS: Thank you, Madam Chair. I'm just reading through your information files to learn a bit more about Natotawin Broadcasting. It says you own and operate over 70 broadcast transmitters throughout the Province of Saskatchewan that serve Aboriginal people. The MBC network and its subsidiaries connect tens of thousands of people in Saskatchewan from geographically and culturally diverse communities with a highly professional distinctive Aboriginal radio service.
LISTNUM 95 \l 14512 How many people do you estimate or what percentage of the Saskatchewan population do you reach?
LISTNUM 95 \l 14513 MR. PROKOPIE: I think in the big picture, you know, we're somewhere ‑‑ we truly believe ‑‑ in that 10 and 15 percent. Now, as you move from region to region, that number could be as high as 95 percent.
LISTNUM 95 \l 14514 We know that there are in excess of 70,000 people north of the NAD line. We feel ‑‑
LISTNUM 95 \l 14515 COMMISSIONER WILLIAMS: What is ‑‑
LISTNUM 95 \l 14516 MR. PROKOPIE: ‑‑ that was ‑‑
LISTNUM 95 \l 14517 COMMISSIONER WILLIAMS: ‑‑ what is MAD? Is it like the Mason‑Dickson line or something or ‑‑
LISTNUM 95 \l 14518 MR. PROKOPIE: Oh, it's basically ‑‑ I believe it's called the north ‑‑ Northern Allowance District which basically divides the province into two. If you're from north of the line, there's certain concessions there for you and such.
LISTNUM 95 \l 14519 Now, north of the NAD line, we know that there is in excess of 70,000 people living there. As we go across to our urban centres, we know Prince Albert has, you know, 35,000 with an almost 40 percent Aboriginal demographic. We know North Battleford, at 16,000, you know, has a strong representation. We know Saskatoon, at 300,000, has ‑‑ I think they're quoting right now about a 10 or 15 percent Aboriginal demographic to their population mix.
LISTNUM 95 \l 14520 We truly believe and feel that we are able to speak, and are speaking, to a large majority of the First Nations people in Saskatchewan. So we do estimate our listening audience at 100,000 plus.
LISTNUM 95 \l 14521 COMMISSIONER WILLIAMS: Okay. Missinipi, I guess that refers to the Missinipi River, if I remember my reading, and the way that people historically travelled and moved and shared information.
LISTNUM 95 \l 14522 What is Natotawin? What's the meaning of Natotawin? Why did you choose that name?
LISTNUM 95 \l 14523 MS CHARLES: Missinipi means big water in Cree, and Natotawin means listen in Cree.
LISTNUM 95 \l 14524 COMMISSIONER WILLIAMS: Listen?
LISTNUM 95 \l 14525 MS CHARLES: Yeah.
LISTNUM 95 \l 14526 COMMISSIONER WILLIAMS: Okay, I'll try to do my best.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14527 COMMISSIONER WILLIAMS: There's been some discussion in this hearing on the economic state of the Regina and Saskatoon radio markets, the two largest communities in Saskatchewan, to absorb competitors or even just the healthy economic state of those communities from a radio advertising perspective.
LISTNUM 95 \l 14528 I note in your information and ‑‑ and I'm a little bit confused on your revenue side, as was Vice‑Chair Arpin, but that the PBIT that you reported for 2005 was 26 percent. That's your profit before interest and tax of 26 percent, compared to a 7 percent PBIT for the Regina market and a 2 percent PBIT for the Saskatoon radio market.
LISTNUM 95 \l 14529 Why has your station become so popular and financially successful, given your extensive serving area and the many transmitters and the associated higher costs of serving so many communities? Why do you think that is the case that you can operate so profitably being so widespread and serving so many?
LISTNUM 95 \l 14530 MR. PROKOPIE: Well, I think first we should take that as a compliment.
LISTNUM 95 \l 14531 THE CHAIRPERSON: Yes.
LISTNUM 95 \l 14532 MR. PROKOPIE: We run a tight ship. We don't have bodies just sitting around waiting for something to do. We're very multi‑tasking. We have people that wear many hats. We have a very strong controller and a very strong board who ensures that our fiscal responsibility is something that is watched consistently.
LISTNUM 95 \l 14533 I don't know if I can add much more to that other than it's something that we pay attention to because, as I said earlier, we don't know if the few dollars that we currently get through Heritage Canada are going to be available to us down the road, and we need ensure that we have money to put up new transmitters in communities when requested. We have money to help train a community radio station, so it's just ‑‑ it's good management, I believe.
LISTNUM 95 \l 14534 COMMISSIONER WILLIAMS: What is your opinion of the economic state of the Regina and Saskatoon radio markets? Is it, in your opinion, healthy, financially buoyant or is it financially weaker as some might suggest?
LISTNUM 95 \l 14535 MR. PROKOPIE: I guess it depends on who you listen to over the last couple days would maybe determine what one really believes. I think Saskatchewan, as a market itself, is relatively healthy. I think with the ‑‑ the ever increasing First Nations demographic that's moving into the urban centres are obviously creating an economic effect that perhaps wasn't seen before. It's become an ever powerful force within the economy, and we see that continuing to grow.
LISTNUM 95 \l 14536 You know, as for the actual health of the market of Regina, I don't think I'm really in a position to speak to that. I know that we're not certainly looking to do anything to make it less healthy.
LISTNUM 95 \l 14537 As for Saskatoon, I think ‑‑ you know, you talk to people. You see people. You meet people. I think everybody's quite satisfied with how things are in Saskatoon.
LISTNUM 95 \l 14538 So that's sort of the best uneducated answer I can give you is ‑‑ you know, I don't believe things are always as bad as we're led on to believe ‑‑ keeping in mind we are in Saskatchewan, and that's the nature of our beast.
LISTNUM 95 \l 14539 So, you know, I think through diligence and through providing the service that people want and providing good value in what you're presenting to them, the economics will take care of themselves providing that, you know, you're not greedy and don't have visions of, you know, making big money overnight.
LISTNUM 95 \l 14540 COMMISSIONER WILLIAMS: Earlier this morning you heard AVR's eloquent presentation stressing the need for a national Aboriginal broadcaster, and they also indicated that they were supportive of your efforts throughout Saskatchewan.
LISTNUM 95 \l 14541 Do you think a national Aboriginal network would provide value to Saskatchewan Aboriginals similar to that provided by mainstream Canadian national networks, like CBC, to all Canadians? Is there value in a national network, I guess is the question?
LISTNUM 95 \l 14542 MR. PROKOPIE: I'm not sure if I see the value, and I try not to look at this through rose‑coloured glasses or with blinders on. I'm not sure what the value would be. I think, you know, we keep hearing in this day and age that traditional radio is in trouble because of the Internet and because of satellite radio and because of this and this and this.
LISTNUM 95 \l 14543 And I believe that the groups that have spoken to you over the last couple of days are saying there is a future in radio, and that's because we can still provide the local weather. We can still talk about the community event that's happening down the street. We still cover stories that have relevance to our everyday lives, and I think ultimately that's where our strength lies and perhaps maybe where some of the strength would be lost in a national network.
LISTNUM 95 \l 14544 COMMISSIONER WILLIAMS: In your opinion, are the interests of rural and herbal ‑‑ rural and urban Aboriginals identical or are there some different interests given the different environments that they live in, in smaller and larger communities and in communities where they may be a dominant demographic in the population and in others where there may be a minority? Are there differences?
LISTNUM 95 \l 14545 MR. PROKOPIE: There definitely are some differences and as, you know, I had mentioned earlier, quite often when you move into an urban setting, a lot of the culture you grew up with is lost.
LISTNUM 95 \l 14546 But also when it comes to our programming, you ‑‑ we talked about MBC setting up at a trappers festival to provide programming. Well, I can tell you there probably isn't a lot of people in Regina that make their living via the trap line anymore, so there is, you know, a cultural difference there.
LISTNUM 95 \l 14547 Commercial fishing, you know, we cover stories that pertain to commercial fishers and how their livelihoods are being affected on a daily basis. Again, that's not a new story that perhaps has a lot of relevance to an urban Aboriginal or non‑Aboriginal here in Regina. So, yes, there are certainly differences that we recognize.
LISTNUM 95 \l 14548 And I was asked earlier about the powwow trail. You know, that is something that is very strong here in the south, so we do acknowledge the difference. And as time goes on and where we see the need is, we will certainly fill that need.
LISTNUM 95 \l 14549 COMMISSIONER WILLIAMS: Given the projected increase in Saskatchewan ‑‑ Saskatchewan's Aboriginal population, do you think Aboriginals may want some diversity in Aboriginal broadcasters, much like that enjoyed by the mainstream? Like, there's plenty of choice in ‑‑ out of the larger centres.
LISTNUM 95 \l 14550 MR. PROKOPIE: I'm sure that they may, but I also believe they appreciate and respect the trusted, and trust is something that needs to be earned not only in Aboriginal country, but across all cultures. Trust is something that needs to be earned.
LISTNUM 95 \l 14551 And, you know, we really feel that we've addressed that trust issue and because people know that when they tune into MBC, they are getting the information as it was meant to be put out there and they are getting the information in a way that makes them feel good about what they're hearing, whether it be through their language or knowing that it's an Aboriginal broadcaster giving them that story.
LISTNUM 95 \l 14552 You know, I believe that that's ultimately what they will keep coming back to is something that feels good, makes them feel warm inside, and reminds them of home.
LISTNUM 95 \l 14553 COMMISSIONER WILLIAMS: Many Saskatchewan residents we've heard over the last few years have perhaps retired or relocated for job reasons to neighbouring provinces. Do you feel there's any need for your programming from Saskatchewan to be able to reach some of your expatriate community that may live in other parts of the country?
LISTNUM 95 \l 14554 MR. PROKOPIE: No, we don't see that as a ‑‑ as an immediate need. If the need's out there, you know, we do have the Internet and we also have our cousins in neighbouring provinces that we feel are doing a very good job with what they do, whether it's AMMSA Alberta, NCI in Manitoba. We know that, you know, their mandate is very similar to ours and the reason they exist is very similar to ours and that our audience, if they were to relocate, would have a lot of their needs taken care of through those sources. So, no, to follow our expatriates across the country and put up sticks right behind them is not anything ‑‑
LISTNUM 95 \l 14555 COMMISSIONER WILLIAMS: No, no, I was thinking more along the lines of a national broadcaster fulfilling that role and you helping input to it.
LISTNUM 95 \l 14556 MR. PROKOPIE: Well, I mean ‑‑ I think that's sort of what WAAB is looking at. You know, I don't know if we'll actually go on the air as a national broadcaster, but we certainly share ideas and information and some programming so ‑‑ and I think the creation of WAAB was somewhat established to address this particular situation and what you're asking.
LISTNUM 95 \l 14557 COMMISSIONER WILLIAMS: Okay. If the Commission approved your application and also approved AVR's application, can you see synergies and opportunities to work together to better serve the Aboriginal communities of Saskatchewan and Canada?
LISTNUM 95 \l 14558 MR. PROKOPIE: Well, I think, you know, I could answer that question based on what I believe, but I ‑‑ what I really believe, what would need to happen is a coming together of the minds. We have never been approached by AVR to talk about perhaps creating some synergy amongst the two of us.
LISTNUM 95 \l 14559 I know some of the other groups across Canada that I've spoken to have not, so I don't think any of us are against anything. Nobody can predict the future, but it all starts with a handshake and a meeting of the minds.
LISTNUM 95 \l 14560 COMMISSIONER WILLIAMS: Okay, thank you very much. That's my questions to Mr. Prokopie.
LISTNUM 95 \l 14561 THE CHAIRPERSON: Thank you. Ms Charles, Mr. Prokopie ‑‑ I'm pronouncing that right?
LISTNUM 95 \l 14562 MR. PROKOPIE: Prokopie.
LISTNUM 95 \l 14563 THE CHAIRPERSON: Prokopie. You have now two minutes to sum up for us.
LISTNUM 95 \l 14564 MS CHARLES: Okay. Well, again thank you for giving me the opportunity to be here to present my application. Given the issues that we presented here today, I respectfully ask the Commission to approve my licence.
LISTNUM 95 \l 14565 And each and every day when we go to work we have to keep in mind our indigenous roots of who we are, what we're about, by/for our ‑‑ with Aboriginal people, and that's what I do each and every day. And I do it for my people and my languages and the different dialects in each and every language and I continue to ‑‑ will work towards the southern ‑‑ incorporating the southern languages into the northern languages so we, as people, can come together and connect with each other again and with the land again.
LISTNUM 95 \l 14566 Thank you.
LISTNUM 95 \l 14567 THE CHAIRPERSON: Thank you very much.
LISTNUM 95 \l 14568 Madam Secretary, I don't ‑‑ I'm hoping we could get through Phase II in ‑‑ yeah, we could at least start working on Phase II.
LISTNUM 95 \l 14569 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 14570 Therefore, this completes Phase I of consideration of items 10 to 16. We can now proceed to Phase II, as indicated by the Chair, in which applicants will appear or can appear, if they wish, in the same order to intervene on competing applications.
LISTNUM 95 \l 14571 We've been informed that Newcap Inc. will not appear in this phase.
LISTNUM 95 \l 14572 I would now call on Touch Canada Broadcasting to come forward if they wish to intervene on competing applications.
‑‑‑ Pause
LISTNUM 95 \l 14573 THE SECRETARY: I gather they're not appearing.
LISTNUM 95 \l 14574 Therefore, Radio CJVR Ltd. are the next applicant to appear if they wish.
‑‑‑ Pause
LISTNUM 95 \l 14575 THE SECRETARY: They are not appearing either. We will continue with the Aboriginal Voices Radio.
‑‑‑ Pause
LISTNUM 95 \l 14576 THE SECRETARY: I've been informed that they will not appear.
LISTNUM 95 \l 14577 And finally, Natotawin Broadcasting can come back if they wish to intervene on competing applications.
‑‑‑ Pause
LISTNUM 95 \l 14578 THE SECRETARY: And they choose not to, therefore, Mrs. Chair, this completes Phase II of the process.
LISTNUM 95 \l 14579 THE CHAIRPERSON: Actually, Madam Secretary, it doesn't because the list is missing Standard. So could you please ‑‑
LISTNUM 95 \l 14580 THE SECRETARY: You are quite correct.
LISTNUM 95 \l 14581 THE CHAIRPERSON: So could you call Standard?
LISTNUM 95 \l 14582 THE SECRETARY: I stand corrected. Standard Radio may come forward if they wish to intervene on competing applications.
‑‑‑ Pause
LISTNUM 95 \l 14583 THE SECRETARY: And I think this completes the list, Mrs. Chair.
LISTNUM 95 \l 14584 THE CHAIRPERSON: Then we may as well proceed to Phase III.
LISTNUM 95 \l 14585 THE SECRETARY: Thank you.
LISTNUM 95 \l 14586 Phase III of the process is where other parties appear in the order set out in the agenda to present their intervention.
LISTNUM 95 \l 14587 I will now call on the first appearing intervener, Harvard Broadcasting, to come forward for their presentation.
‑‑‑ Pause
LISTNUM 95 \l 14588 THE SECRETARY: Mrs. Chair, we will go to the next appearing intervener which is CIRPA. If they are present, if they would come forward to present their intervention?
LISTNUM 95 \l 14589 COMMISSIONER ARPIN: They said that they were only to appear once.
LISTNUM 95 \l 14590 THE SECRETARY: Thank you, Mr. Vice‑Chair.
LISTNUM 95 \l 14591 So therefore, we will proceed to the following intervention which is a panel of two interveners, Rawlco Radio Ltd. and Communications Management Inc. If they could come forward for your ‑‑ the presentation of your intervention?
‑‑‑ Pause
LISTNUM 95 \l 14592 THE CHAIRPERSON: Ladies and gentlemen, just for information, we will be breaking at 12:30 as ‑‑ well, after you've finished your presentation, as there is a conference call so ‑‑ and then we will be coming back at 1:30 with questions from the panel of this panel.
LISTNUM 95 \l 14593 Madam Secretary...?
LISTNUM 95 \l 14594 THE SECRETARY: I would ask that you introduce yourselves before you begin, and you will have ‑‑ just a moment ‑‑ 15 minutes for your presentation.
LISTNUM 95 \l 14595 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 14596 MS LEYLAND: Thank you.
LISTNUM 95 \l 14597 Good afternoon, Madam Chair, Ms Cram, Commissioners Williams, Cugini, Arpin and Pennefather.
LISTNUM 95 \l 14598 Before we begin our presentation today, I'd like to introduce our Rawlco Radio team. On October 18th, two weeks ago, we at Rawlco celebrated our 60th anniversary. Rawlco was started by Gordon and Doug's father, E.A. Rawlinson, with the purchase in 1946 of CKBI Radio in Prince Albert. We are still proud to own CKBI, along with 11 other radio stations in Saskatchewan.
LISTNUM 95 \l 14599 After 60 years of serving this great province, we know Saskatchewan and we know radio in Saskatchewan. We are very proud of our home province. We live here and work here because we want to.
LISTNUM 95 \l 14600 Let me introduce our group to you. My name is Pam Leyland. I'm president of Rawlco Radio. I got my start in radio as a newsperson, then became a news director, a program director, a general manager, and now president ‑‑ all with Rawlco over the last 25 years.
LISTNUM 95 \l 14601 On my right is our CEO, Gordon Rawlinson. One of his favourite sayings is that he's been in radio all his life, all the way back to the early days in Prince Albert. Gordon has been a tremendous help and inspiration to me.
LISTNUM 95 \l 14602 Next to Gord is Ken Goldstein of Communications Management Inc. On my left is Doug Pringle. Doug is a legendary programmer and musicologist. Doug knows a lot about all kinds of music, and his roots go back to when he started Canada's first album/rock station at CHOM in Montreal in the late '60s. Doug has been with Rawlco for 26 years.
LISTNUM 95 \l 14603 If you have any questions about the music formats in Regina, Doug would be glad to give you his thoughts at the end of our presentation.
LISTNUM 95 \l 14604 Next to Doug is Kristy Werner. Kristy is the program director for Z99 here in Regina. Kristy is one of those bright young people we're always looking for at Rawlco; someone with smarts, drive, ability and passion. She's also the person that makes our 20th annual Z99 radiothon for the Hospitals of Regina Foundation come to life.
LISTNUM 95 \l 14605 Behind me and to my right is Doug Rawlinson. Gordon and Doug have been partners for about 35 years and have worked very hard together to make Rawlco a great radio company.
LISTNUM 95 \l 14606 To Doug's left is Karen Mains. Karen is the person that makes our operation in Regina run. Karen is our operations manager and the day‑to‑day operations of three radio stations fall on her shoulders. Karen has been with Rawlco for 20 years.
LISTNUM 95 \l 14607 On Karen's left is Tom Newton. Tom is the manager of our three radio stations here in Regina, Z99 FM, Jack FM, and News Talk 980 CJME. Tom's background is programming and he started with us as an announcer 21 years ago, then became a promotion director, program director, and now our manager.
LISTNUM 95 \l 14608 Madam Chair, let me begin by welcoming the Commission and staff to Saskatchewan, a province of almost 1 million people. It's noteworthy that if this hearing had been held way back in 1930, it could have opened with exactly the same statement, a province of almost 1 million people.
LISTNUM 95 \l 14609 For sociologists, Saskatchewan must be an interesting place to study. It presents them with the perfect opportunity to answer a fundamental question. If a province has virtually no population growth for 75 years, will the people be different from those living in a nearby province with surging population growth?
LISTNUM 95 \l 14610 Part of the answer is that human beings are very adaptable. They adapt to the environment they find themselves in. Further, they'll work very hard to turn what outsiders might consider to be difficult circumstances into something positive. This is certainly what the people of Regina or, for that matter, Saskatoon have done.
LISTNUM 95 \l 14611 First, it must be admitted that many people do leave Regina and Saskatchewan every year for Alberta and other provinces but many also choose to stay. They choose affordable housing over surging house prices. They choose easy access over major traffic jams. They choose a simpler, more pleasant lifestyle over a rat race. And most importantly, they choose friendliness and neighbourliness over impersonal big city life.
LISTNUM 95 \l 14612 All of these things came through to me again when I read the more than 200 letters submitted as part of our intervention. There's a sense in these letters that making Regina into a great place to live didn't happen naturally. It only happened because many people worked very hard to make it happen. There's a strong sense of concern that they don't want to lose what they've worked so hard to achieve.
LISTNUM 95 \l 14613 A lot of what is said flies in the face of conventional wisdom. Usually if you offer people what, at least on the surface, appears to be something for nothing, they're going to say, "Of course I'll take it. Why not?" In fact "why not" is the focus of almost all of the letters.
LISTNUM 95 \l 14614 The leaders of community organizations have many concerns about the possibility of licensing additional radio stations in Regina. One of their concerns is that their messages on radio will have less impact if there are more stations.
LISTNUM 95 \l 14615 As Eileen Janz, manager of marketing for the Saskatchewan Science Centre says, "Adding additional licences to this diluted market will impact our ability to reach radio listeners."
LISTNUM 95 \l 14616 They also fear that they will lose the close relationships they have with the existing stations, ones that have been developed over many years.
LISTNUM 95 \l 14617 Erin Marchuk at the Arthritis Society comments, "We value the support we receive and feel that the addition of more radio stations will jeopardize the relationships we've established."
LISTNUM 95 \l 14618 Something they count on is easy access to the stations for interviews when they want to publicize their events or fundraising campaigns.
LISTNUM 95 \l 14619 As Robyn Sullivan with the Regina Day Committee notes, "The Regina radio stations have always been quick to jump on board with generous donations of both on‑air advertising and interviews."
LISTNUM 95 \l 14620 Finally, some organization, like the Regina Hospitals Foundation, worry that the station sponsored fundraising campaigns will be less effective in a more fragmented radio environment.
LISTNUM 95 \l 14621 Conventional wisdom would also suggest that local businesses would welcome more radio stations. The letters show that this is not the case at all. For local retailers, more stations mean more fragmentation which will result in higher advertising costs and diminished impact.
LISTNUM 95 \l 14622 Jamie York at Island Inkjet states, "With the state of our Saskatchewan economy, it would be deleterious to my business interest to have to fragment my marketing budget even more with the introduction of yet another radio station."
LISTNUM 95 \l 14623 They also worry that more stations will change the close relationship they have with their advertising consultants who help them grow their businesses.
LISTNUM 95 \l 14624 Maxine Drelier of Travel Masters makes this point, "The radio station I deal with gives me great advice and service and I know my rep well."
LISTNUM 95 \l 14625 Finally, they don't like the idea of more station salespeople taking up their valuable time.
LISTNUM 95 \l 14626 Dennis Marvin at Clarica says succinctly, "I do not want to spend further dollars or deal with more radio reps calling on me."
LISTNUM 95 \l 14627 The concerns expressed in these letters are not superficial concerns. In reading them, one can feel the sincerity. The writers honestly feel that there is a special relationship between themselves and the radio stations, and they don't want to lose it.
LISTNUM 95 \l 14628 They're definitely worried that the CRTC will make decisions that will have a real detrimental impact on their organization or businesses.
LISTNUM 95 \l 14629 At the very heart of the matter is the reason people choose to live in Regina and not move to Calgary. It's the neighbourliness and the sense of community, and they consider their local radio stations with their strong local roots to be an integral part of the community.
LISTNUM 95 \l 14630 Many work very hard to make Regina a better place to live and they feel their local radio stations are shoulder‑to‑shoulder with them every step of the way. So if the local community organizations and businesses have real concerns about the licensing of additional stations, how do the listeners in Regina feel about their local stations?
LISTNUM 95 \l 14631 We commissioned a survey of 400 radio listeners to try to answer this question. As the graphic shows, they're quite happy with their local radio service. A high percentage indicated they were satisfied that they can get the local news and community information they need, and that the stations do a good job covering local events. They recognize that the stations support Canadian artists and play their music. Overall, there was a high level of satisfaction with local radio in Regina.
LISTNUM 95 \l 14632 Special mention must be made to the response to the question, "Can you listen to the music you like when you want to listen to it?" The Internet, iPod, satellite radio and other forms of music distribution are changing the way people listen to music.
LISTNUM 95 \l 14633 While all the major music formats are available in Regina, it could be argued that there are narrow niche formats that are not present. Yet, 92 percent were satisfied that they can listen to the music they like when they want to listen to it. This certainly raised the question, just how much do listeners really feel the need for additional musical diversity?
LISTNUM 95 \l 14634 The role of Rawlco Radio in Regina raises further questions about conventional wisdom. Many would say that in the absence of greater competition, broadcasters will only view the minimum required by regulation. They will always choose higher profits over additional community service.
LISTNUM 95 \l 14635 In this light, let's take a look at what Rawlco Radio has accomplished. Crazy is the term experienced broadcasters were using when Rawlco introduced News Talk eight years ago. Small cities like Regina and Saskatoon are not nearly big enough to support this extensive, rather expensive programming. And for a while, I have to admit it looked like they were right, but we soldiered on.
LISTNUM 95 \l 14636 And today News Talk has become absolutely essential to life in Saskatchewan. The programs are like giant town hall meeting where the people across the province come together to discuss the issues of the day. While we may never recoup the investment cost, I can report they are now nearly breaking even.
LISTNUM 95 \l 14637 MR. PRINGLE: While doing an application for a new FM station in Edmonton, we came up with the idea for Project 10K20 where we provide $10,000 to 20 artists so that they can make a CD. It has been a huge success in Edmonton and has really transformed the local jazz scene, and we are sure it's going to have the same similar impact on the local folk scene in Calgary.
LISTNUM 95 \l 14638 Now, when looking at this picture, we came to realize that there was something wrong. We were doing Project 10K20 in Edmonton and Calgary because of CTD commitments, but in Saskatchewan, our home province, the need was perhaps even greater, so we decided to rectify the situation and announced its availability on our Saskatchewan radio stations. The response was quite overwhelming. More than 200 applications were received. We ended up approving 29 of the applications and the resulting CDs are displayed on the board beside me there.
LISTNUM 95 \l 14639 One of the major benefits of Project 10K20 in Saskatchewan has been a huge increase in the amount of local Saskatchewan music we can play, so we have increased our minimum Canadian content to 40 percent of all of our FM stations in Saskatchewan.
LISTNUM 95 \l 14640 MS LEYLAND: Community involvement, community service and super‑serving our listeners is the way we do radio. The submitted letters tell the story again and again. Outside recognition of our efforts can be seen in the 27 CAB nominations and awards our stations have received since 2000. These award‑winning programs are just the tip of the iceberg. Every day, and in almost every program, we're doing things to support the community and local community organizations. It's the Saskatchewan way, and we certainly don't want to change it.
LISTNUM 95 \l 14641 Madam Chair, Members of the Commission, if there's one thought I can leave you with in our intervention it is this: Saskatchewan is different. Regina is not Fort McMurray, not Grande Prairie, not Medicine Hat.
LISTNUM 95 \l 14642 While we are all obsessed with trying to get the population over that elusive 1 million mark, the fact is we live here because we like it just the way it is. We found that there are many benefits and advantages to living in cities with little growth.
LISTNUM 95 \l 14643 Of necessity, the people of Regina have found a way to make this a great city to live in; pulling together, working for a better Regina, and radio stations that play a leadership role in this endeavour is something special.
LISTNUM 95 \l 14644 Our radio revenues are not growing in Regina, and the stations are not highly profitable. In fact currently national advertising is declining. Nevertheless, there are no cutbacks and absolutely no reduction in our level of community commitment. We don't want to have anything to do with the US model of cheap jukebox radio.
LISTNUM 95 \l 14645 We believe the letters and the survey results deliver a clear message: The people of Regina like the radio they have today, and they don't want to lose it. Madam Chair, we feel there should be no new licences granted in Regina.
LISTNUM 95 \l 14646 For a city of its size, Regina is extremely well‑served. In fact it's over‑served when compared to markets like Edmonton and Calgary. For some slight additional musical diversity, is it really worth risking the quality of radio that Regina now enjoys? We think not.
LISTNUM 95 \l 14647 Thank you. This completes our intervention. Ken...?
LISTNUM 95 \l 14648 THE CHAIRPERSON: Actually, if I can stop you right now and we will adjourn and then, Mr. Goldstein, you can give your brief presentation after lunch. 12:30.
LISTNUM 95 \l 14649 MS LEYLAND: Thank you.
LISTNUM 95 \l 14650 THE CHAIRPERSON: Thank you. Not 12:30. Yeah, so you've got one second for lunch. No, 1:30.
‑‑‑ Upon recessing at 1230 / Suspension à 1230
‑‑‑ Upon resuming at 1330 / Reprise à 1330
LISTNUM 95 \l 14651 THE CHAIRPERSON: Order. I just wanted to say one thing about Ms Leyland's comments about people moving to Calgary. Given Gainer‑Gate, nobody's moving to Calgary.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14652 THE CHAIRPERSON: Madam Secretary...?
LISTNUM 95 \l 14653 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 14654 We will continue with the intervention of CMI, Communications Management Inc. Mr. Goldstein...?
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 14655 MR. GOLDSTEIN: Thank you, Madam Chair, Commissioners.
LISTNUM 95 \l 14656 In this proceeding from an economic perspective, there is essentially one fundamental question that needs to be addressed: Do the economic indicators tell us that the market is capable of supporting a new commercial radio station?
LISTNUM 95 \l 14657 The report we submitted deals in detail with that question. As you will have seen in our report, we tied our analysis very closely to the patterns of licensing and the comments the Commission made with respect to four other metro markets in which the Commission has considered new radio licences in the recent past; Kitchener, Halifax, Calgary and Quebec City.
LISTNUM 95 \l 14658 And we chose this methodology because of something the Commission itself said in its decision of August 10th, 2006, on the licensing of new radio stations in Quebec City. In that decision, the Commission noted that the economic picture was not as positive as in many other markets and chose, therefore, to license only one new station with a speciality format.
LISTNUM 95 \l 14659 So we constructed a comparison of four markets in which licences have been granted and compared Regina and Saskatoon with those four markets and with the corresponding figures for all private radio across Canada. After all, if indicators in Regina or Saskatoon are lower than in Quebec City, that should tell us something about the ability of these markets to support a new station.
LISTNUM 95 \l 14660 The results are summarized in our report and the results do indeed tell us that the economic indicators for the Regina radio market are not favourable to the licensing of any new commercial radio stations at this time.
LISTNUM 95 \l 14661 Let me briefly review a number of the key indicators. First, population. The Conference Board is projecting that Regina's population will grow by just 1.5 percent over the five years from 2005 to 2010, about one‑third the comparable growth rate for Canada.
LISTNUM 95 \l 14662 I noted that some of the applicants have made references to data from the Financial Post Canadian Demographics. Here is what that source says about Regina's population: "As of July 1st, 2005, 200,294 people; as of July 1st, 2006, 200,204 people ‑‑ a year‑on‑year decline of 90 people.
LISTNUM 95 \l 14663 Second, GDP. The Conference Board is predicting that real GDP growth rates for Regina will decline from 2008 to 2009 and 2010, and those would be the first three full years of any proposed new station.
LISTNUM 95 \l 14664 For Canada, real GDP is projected to go up during that a period. By 2010, the real GDP growth rate for Regina is projected to be about 25 percent lower than the growth rate for Canada.
LISTNUM 95 \l 14665 Third, retail sales. We heard at least one applicant claim that Saskatchewan retail sales would increase 11 percent this year. However, that claim is not supported by data from Statistics Canada. The most recent data from Statistics Canada for the period January to August 20 ‑‑ January to August 2006 indicate a growth rate of 6 percent over the comparable period a year earlier, about half of what was claimed. And the Conference Board is projecting that the growth rate for retail sales in Saskatchewan will be lower in 2008 and then decline further.
LISTNUM 95 \l 14666 If we focus on Regina and use data from the Conference Board, we see that the growth rate for retail sales spiked in 2005 and is projected to decline from 2008 to 2009 and 2010.
LISTNUM 95 \l 14667 The recent reduction in the provincial sales tax from 7 percent to 5 percent may have a modest short‑term effect, but that effect is unlikely to continue into the first years of a radio station in this market.
LISTNUM 95 \l 14668 Fourth, radio revenues. From 1996 to 2003, private radio revenues in Regina and Saskatoon grew more slowly than was the case for radio in Canada. Then from 2003 to 2005 there was a brief growth spurt. However, based on the data for 2006 that we have seen, the growth spurt is over and private radio in Regina and Saskatoon again has a lower growth rate than radio across Canada.
LISTNUM 95 \l 14669 Fifth, radio profitability. We have heard a number of statistics from applicants that purport to paint a rosy picture of revenues in the Regina market, but we have not heard any applicant deal with the other key factor, profitability, other than to dismiss its importance. But the numbers are dramatic.
LISTNUM 95 \l 14670 Across Canada, from 2001 to 2005, the average PBIT for private radio as a percentage of total revenue was 18.2 percent. In Regina, we estimate that the average PBIT for private radio from 2001 to 2005 was just under 5 percent, 13 percentage points lower than the figure for all of Canada.
LISTNUM 95 \l 14671 Can revenue growth be separated from profitability? Is one more important than the other? Of course not. Both are important. And the data tells us that after a brief growth spurt, radio revenues in Regina are growing more slowly while profit margins remain low.
LISTNUM 95 \l 14672 When we consider all of the factors together, we believe they deliver a single powerful message; the economic indicators do not support the licensing of any new commercial radio stations in Regina at this time. And we believe it is also clear that the introduction of any new commercial radio station into the Regina market would push the PBIT level for the market into negative territory and would make it difficult, if not impossible, for current private stations to maintain their current high levels of community service.
LISTNUM 95 \l 14673 Thank you, I would be pleased to answer any questions you may have.
LISTNUM 95 \l 14674 THE CHAIRPERSON: Thank you. Commissioner Cugini...?
LISTNUM 95 \l 14675 COMMISSIONER CUGINI: Good afternoon, Ms Leyland and your panel. Firstly, I'd like to apologize for the quality of my voice. The cold bug has bit me, but I now have good drugs, so hopefully we'll get through this.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14676 COMMISSIONER CUGINI: I just have a couple of questions for you, just to probe a little bit further into your comments earlier today. I'm not sure if you were here physically in the room when Newcap presented their application for Regina, but I'd like to get your reaction to something that they presented. And I'll paraphrase what they said just so you know what exactly it is that I am referring to.
LISTNUM 95 \l 14677 They compared the number of radio stations to the population in Regina, whereas they said that for every 34,000 people in Regina, there is one commercial radio station. Moncton, New Brunswick, there is a city whose CMA is less than three‑fifths of Regina and is home to six commercial FM stations. St. John, New Brunswick, 1 for every 18,000. Brandon, Manitoba, 1 for every 10,000. And Belleville, Ontario, 1 for every 18,000 residents compared to Regina's 1 for every 34,000 residents.
LISTNUM 95 \l 14678 I was wondering if I could get your comments and your reaction?
LISTNUM 95 \l 14679 MS LEYLAND: Certainly. I'll ask Mr. Goldstein to comment on that.
LISTNUM 95 \l 14680 MR. GOLDSTEIN: I think that those kind of comparisons really don't tell us very much. First of all, you could pick other markets. You could pick Calgary, Edmonton ‑‑
LISTNUM 95 \l 14681 COMMISSIONER CUGINI: Which you did in your report.
LISTNUM 95 \l 14682 MR. GOLDSTEIN: Exactly.
LISTNUM 95 \l 14683 COMMISSIONER CUGINI: So ‑‑
LISTNUM 95 \l 14684 MR. GOLDSTEIN: And show precisely the opposite, that you could then use that to say, "Oh, look at the size here. Look at the average number of people per station here. Therefore, there are too many stations in the market.
LISTNUM 95 \l 14685 So I think that, as a first cut, I would say that I'm not sure that's particularly meaningful. The part that bothers me, though, most about it is that one ‑‑ and by the way, I should say as an aside, I think the Brandon figure is very misleading because it doesn't include the rural area around Brandon, I don't think.
LISTNUM 95 \l 14686 But leaving that aside, the ‑‑ you compare us with Moncton ‑‑ or you compared Regina with Moncton or you compared the ‑‑ what other characteristics are present in the Moncton market is ‑‑ are you suggesting that one should import characteristics from these other markets into this market?
LISTNUM 95 \l 14687 In our report, for example, we noted that you have a situation in Regina and Saskatoon where you have very high levels of spending on programming because they have perfected what I think is a wonderful community model in these two markets.
LISTNUM 95 \l 14688 Now, if that market with the different average of population is now all of a sudden something we're holding up as a beacon to be emulated, should we go to the program spending levels of that market? Should we go to the profitability levels of that market? Should we go to the staffing levels of that market?
LISTNUM 95 \l 14689 So to simply say there are X number of people per station doesn't really tell the story.
LISTNUM 95 \l 14690 COMMISSIONER CUGINI: And if ‑‑ I'd like to ask you, Mr. Goldstein, why it is that you included that same comparison in your study?
LISTNUM 95 \l 14691 MR. GOLDSTEIN: Oh, I conclude ‑‑ include it only to show that you could pick numbers and show precisely the opposite. I think I could probably find the words, but I think I probably said I don't think these are very meaningful and I then went on to say, "Let's do a more sophisticated analysis." I believe there's actually a subhead in my study talking about a more sophisticated analysis.
LISTNUM 95 \l 14692 COMMISSIONER CUGINI: Thank you.
LISTNUM 95 \l 14693 Ms Leyland, you may have heard us ask just about every applicant in these proceedings what are the factors? Profitability we recognize is but one, but what are the factors that we, as a Commission, need to examine in order to determine whether or not a market can sustain another entrant?
LISTNUM 95 \l 14694 I would like to ask you what are the factors you look at and, if you can, perhaps even prioritize what those factors are when you want to enter, as Rawlco, into a new market.
LISTNUM 95 \l 14695 MS LEYLAND: I think one of the factors that ‑‑
LISTNUM 95 \l 14696 COMMISSIONER CUGINI: I'm sorry, I can't hear you.
LISTNUM 95 \l 14697 MS LEYLAND: Oh, I'm sorry. I think one of the factors that you might consider is music and the music that's presently offered in the community and the other formats that the applicants might want to make available. I'd like to ask Doug to comment on the music formats that are in Sask ‑‑ or in Regina right now.
LISTNUM 95 \l 14698 MR. PRINGLE: So if I could paint a brief picture of the formatic landscape in Regina? Regina has all the four major formats currently in the market; rock, pop, country and news talk. And in the case of the music formats, there are multiple signals available in each area.
LISTNUM 95 \l 14699 If you take the pop area, you have Lite who is an AC station catering to more the upper demographic of the pop audience. And you have Z99 which caters more to the lower demographic. So essentially upper and lower is covered in the pop side.
LISTNUM 95 \l 14700 If you take rock, you have a classic rock station, a pure classic rock station, Jack, which was ‑‑ as was mentioned by an earlier applicant although it has the name and the personality of the Jack format, it doesn't actually have the format. It's a pure classic rock station.
LISTNUM 95 \l 14701 And then you have a mass appeal rock station, the Wolf that is geared younger, but they too play 40 percent classic rock. Then you go to country. We have two country stations. We have an AM country station and we have Country 100 which comes in from Moose Jaw clear as a bell. So in rock, pop and country, you have multiple formats covering all three of those musical genres.
LISTNUM 95 \l 14702 So I've got to be honest, when I first heard a call for the two markets, I was very curious as to what the mainstream broadcasters would come up with in terms of adding variety and musical diversity to the market and I was anticipating there'd be some pretty interesting category 3 submissions, so I was quite surprised actually that there were actually no category 3 submissions. In fact, what was offered were just variations of what already existed in the marketplace.
LISTNUM 95 \l 14703 So just to quickly run through. If you look at classic hits, well, there's already a station in the market that actually not only plays classic hits and has done for over 15 years, but has classic hits in their slogan. Z99's slogan is, "Classic Hits and Today's Best Music".
LISTNUM 95 \l 14704 In addition to that, you'll find classic hits on Lite and you'll also find classic hits on Jack, so that format ‑‑ you know, that music is extremely well covered off.
LISTNUM 95 \l 14705 I was also interested to hear that there were no classic rock stations in this marketplace. In actual fact, Jack is pure classic rock, and as I mentioned Wolf plays 40 percent classic rock. To my knowledge, there's no market anywhere that supports three classic rock stations, so I don't really see where they would fit in.
LISTNUM 95 \l 14706 The submission for oldies was interesting. Oldies has some challenges. As you probably know, in Canada the format is going through some difficult times. Stations have been bailing on the format. There are less and less oldie stations all the time ‑‑ not just in Canada, the flagship oldie stations in the world.
LISTNUM 95 \l 14707 WCBS FM, they recently abandoned the format for a younger gold format, a format based in the '80s. And of course in Canada we have the additional problem of hitting on the hit rule, so I think that would be a very tough go. And the music in the market, I mean the tape that was played with the Beach Boys and the Beetles and Four Seasons, Lite plays a fair amount of that. And of course the Canadian element is completely duplicated on Jack.
LISTNUM 95 \l 14708 The Canadian music from the '60s and '70s is ‑‑ you know, simply because there's not much great Canadian music from that era, it's duplicated on both the classic rock format and the oldies format. I'm talking about BTO, the Guess Who, Neil Young. All those guys, they're duplicated. So I question how much of a hole, even if you could do it, there is for oldies in the market.
LISTNUM 95 \l 14709 And then the new country FM application, there already is a new country FM signal available to anybody who would like to listen to it in Regina.
LISTNUM 95 \l 14710 So as I look at what the market already has, which essentially has all the major formats covered in multiple, and then I look at what's being offered, I don't really see where there's much musical diversity. I mean there's ‑‑ yes, it is versions of what is there, but I don't see any huge musical diversity being offered.
LISTNUM 95 \l 14711 MR. RAWLINSON: Can I throw in one other comment as to what factors to look at? I think that also it's worthwhile to take a look at what the existing radio stations are doing. Are they providing good service or not? Are they do ‑‑ doing a good job of serving their community? Are they serving them well? Are they running more than just jukeboxes or are they running real radio stations, real full‑service radio stations? I think that's a factor to be considered, and I won't belabour that point, but I think that's a factor too.
LISTNUM 95 \l 14712 COMMISSIONER CUGINI: Thank you. Thank you very much. Madam Chair, those are all my questions.
LISTNUM 95 \l 14713 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 14714 Commissioner Pennefather...?
LISTNUM 95 \l 14715 COMMISSIONER PENNEFATHER: I have some questions for you, Mr. Goldstein, and I'll go back to the point that my colleague, Commissioner Cugini, raised regarding the comparison with other markets.
LISTNUM 95 \l 14716 Now, I'm in your report and I have to say that you did include that as one of the economic indicators. You go on to discuss a more sophisticated set of comparisons with a different city comparison, but the question she asked you in reference to the comments from Newcap was really in relation to your choice to use comparisons with other metropolitan markets on page 4 as one of the indicators. And I do say indicators, so you would ‑‑ we agree that there are a number of indicators that one uses.
LISTNUM 95 \l 14717 So on that where you, yourself, at page 4, have noted that one of the indicators that can be used is a comparison with other markets in terms of population, in your view what would be your estimate of the minimum population required to support a commercial radio station?
LISTNUM 95 \l 14718 MR. GOLDSTEIN: Let me answer the first thing first by actually, if I may, read into the record what I said?
LISTNUM 95 \l 14719 I said some of the applications in this proceeding have included comparisons among Saskatoon, Regina and other markets for factors like the population per radio station. This is a somewhat simplistic kind of comparison. So the figures that I put in there was to illustrate that point.
LISTNUM 95 \l 14720 As far as asking the question of what is the minimum population you need to support a radio station, there is no answer. And the reason there is no answer because it's not only the number of people, but it's where they're located.
LISTNUM 95 \l 14721 The minimum population in Hamilton is different than in Winnipeg, even though the markets are about the same size because Hamilton is sitting right beside Toronto, and Winnipeg has got a lot of territory around it. So there is no simple answer to that question.
LISTNUM 95 \l 14722 COMMISSIONER PENNEFATHER: So you agree though it could be part of the mix of the discussions even though one would want to take a more sophisticated approach to it? It still could be an indicator among others, but a less important one in your view?
LISTNUM 95 \l 14723 MR. GOLDSTEIN: It's about the least important one. I mean if you look at the amount spent on programming as a measure of the community involvement, if you look at the profitability, if you look at the trends, it also depends what direction you're moving in. I consider it a highly simplistic kind of an indicator.
LISTNUM 95 \l 14724 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 14725 Well, you will accept that just in the way this ‑‑ it is presented, I assumed that it was one of the indicators that you hoped to discuss. And you go on to is ‑‑ to a more elaborate approach to that based on our decisions. Let me take you to another indicator, which is page 6, your figures ‑‑ 6 and 7, your figures 3 and 4.
LISTNUM 95 \l 14726 And as I understand it, these figures are an estimate of program spending as a percentage of revenue, and also there's another column on PBIT as percentage of revenue and private radio. And I'm looking at the percentage of program expenditures, a comparison of Canada to Regina and Saskatoon as you laid it out here, which clearly from your chart ‑‑ if I'm correct ‑‑ are higher than the average in Canada?
LISTNUM 95 \l 14727 MR. GOLDSTEIN: That is correct.
LISTNUM 95 \l 14728 COMMISSIONER PENNEFATHER: Now, can you explain why ‑‑ what your rationale for maintaining that the Commission should refrain from licensing in markets ‑‑ in these markets in order to enable incumbents to maintain these clearly above average expenses and staffing levels?
LISTNUM 95 \l 14729 MR. GOLDSTEIN: Well, I think that there's a short answer and there's a longer answer. The short answer is, is if you fragment the market and drive the PBIT levels down, they won't be able to afford to maintain the same levels of program expenditure and community service.
LISTNUM 95 \l 14730 But I think this is actually a window into a very important, much larger discussion that we should be having here and we should be having in lots of places, and that is is that the stations in this province ‑‑ particularly in Saskatoon, in Regina and generally in this province ‑‑ have really developed a very wonderful model of community service. It shows up in the higher spending on programming, and the reality is is it shows up in the lower profitability. And ‑‑ sorry, go ahead.
LISTNUM 95 \l 14731 COMMISSIONER PENNEFATHER: Well, I think if we kept it, as you said earlier from ‑‑ in your remarks from an economic perspective, if we keep it to that, you would accept though those higher expenses is a factor we should take into consideration when looking at profitability levels?
LISTNUM 95 \l 14732 MR. GOLDSTEIN: Well, I want ‑‑ I'm ‑‑ there is another important point to be added, and that is this, that the ‑‑ we've heard about the threat to radio, some of which is beginning to be felt, some of which is a little over the horizon from satellite and Internet and iPod and whatever. The answer to that threat is precisely the kind of local emphasis that these stations are doing today.
LISTNUM 95 \l 14733 If you fragment the market, if you force them away from that, if you build them more into the jukebox model, you'll start a downward spiral.
LISTNUM 95 \l 14734 COMMISSIONER PENNEFATHER: Well, you chose to compare the Canadian average to Regina and Saskatoon and, within that Canadian average, I'm sure there are many stations which also offer community service. So we looked at it from the point of view of basic programming expenditures across this country with more or less the same kinds of programming expenses, but it's an average and, within that average, I'm sure is community service.
LISTNUM 95 \l 14735 So relative to the economic question is this comparison which allows us to see a higher level of programming expenditures in Regina and Saskatoon which, you would agree, could skew the profitability level. That's the question ‑‑ the point I'm making here.
LISTNUM 95 \l 14736 MR. GOLDSTEIN: Yes.
LISTNUM 95 \l 14737 COMMISSIONER PENNEFATHER: Okay. Figure 10 in your ‑‑ I just wanted to be sure I read it right. In fact, staff pointed out to me that I'd probably misinterpreted it first round. Just to be sure we do understand it, figure 10 again is a comparison, and when we look at Saskatoon and Regina on the graph, is this telling us that they are below the Canadian average?
LISTNUM 95 \l 14738 MR. GOLDSTEIN: That is correct. The bar on the left, the grey bar ‑‑ if yours printed the same as mine did?
LISTNUM 95 \l 14739 COMMISSIONER PENNEFATHER: Yes, it did somewhat.
LISTNUM 95 \l 14740 MR. GOLDSTEIN: The grey bar shows the average PBIT for the five years indicated and the darker bar to the right of it in each case shows the difference with the Canadian average.
LISTNUM 95 \l 14741 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 14742 It ‑‑ I first read that that was the PBIT, and it's considerably ‑‑ you'd say today it's 5 percent whether we agree with that or not, or whether there are different interpretations of that. It certainly is not a minus at this stage.
LISTNUM 95 \l 14743 MR. GOLDSTEIN: I ‑‑
LISTNUM 95 \l 14744 COMMISSIONER PENNEFATHER: Which I had misunderstood this figure.
LISTNUM 95 \l 14745 MR. GOLDSTEIN: No, no, no, and nor was it intended to say it was a minus. The ‑‑ this, remember, is a five‑year average. As you're aware, the Commission used to do a radio market report and it used five‑year averages. And so in the spirit of that, I thought it to be fair ‑‑
LISTNUM 95 \l 14746 COMMISSIONER PENNEFATHER: Okay.
LISTNUM 95 \l 14747 MR. GOLDSTEIN: ‑‑ to use five‑year averages. We know the numbers because they were placed on the record before lunch this morning so ‑‑
LISTNUM 95 \l 14748 COMMISSIONER PENNEFATHER: I wondered also, finally, if you had any comment ‑‑ my colleague noted the analysis done by Newcap concerning population. Standard also tabled another interpretation looking at retail sales and compared to population then, the provinces are ranked on a per capita radio sales and, in this sense, Saskatchewan is the province that comes out on top, number 1. Do you have any comment on that interpretation of the market?
LISTNUM 95 \l 14749 MR. GOLDSTEIN: Yes, I do. I think, first of all, you have a situation here where we have a lot of small markets and because you have small population bases, that will tend to produce a higher per capita figure. But I thinking ‑‑ think in gaining revenue, the reason I come back to profitability, there's a cost of revenue. There's a cost; you have to spend something to get revenue.
LISTNUM 95 \l 14750 And because you're dealing with small units, you don't have the same economy of scale that you'll have in Calgary or in Edmonton. The cost of gaining that per capita revenue is such that ‑‑ I mean PBIT isn't anything more or less than really a measure, if you will, of what's left over after the cost of gaining the revenue. And so there's a high cost, when you have low economies of scale, of making that per capita happen.
LISTNUM 95 \l 14751 COMMISSIONER PENNEFATHER: Okay, thank you. Thank you, Madam Chair.
LISTNUM 95 \l 14752 MR. RAWLINSON: Commissioner Pennefather, could I just comment on the question of expenses? We do run high expense radio stations. We have a number of long‑term employees. We have many great employees. We do, as mentioned, terrific community programming. We also do some Aboriginal programming. Running news talk stations is a very expensive thing. It also takes a huge amount of management time to run news talk stations. It's almost like it's a different business than running music stations and ‑‑ as we've discovered.
LISTNUM 95 \l 14753 Also to generate the revenues that we do, which I think we also generate significant revenues at our radio stations, takes strong sales management, strong salespeople, and a fair amount of management time on that too. So that the ‑‑ that's just what we do, and we think that the communities are way better served with that type of radio station than a lean, mean type approach. So that explains it.
LISTNUM 95 \l 14754 THE CHAIRPERSON: Vice‑Chair Arpin...?
LISTNUM 95 \l 14755 COMMISSIONER ARPIN: Thank you.
LISTNUM 95 \l 14756 You just said that you're doing Aboriginal programming. Are you doing any Aboriginal programming here in Regina?
LISTNUM 95 \l 14757 MR. GOLDSTEIN: Sorry, not in Aboriginal language.
LISTNUM 95 \l 14758 COMMISSIONER ARPIN: But ‑‑ yes, but catering to the Aboriginal population?
LISTNUM 95 \l 14759 MR. GOLDSTEIN: Yeah, we produce a one‑hour show that runs on all of our AM stations in Saskatchewan, called Meeting Ground, and we also have run ‑‑ and that's run, I think, twice a week, but it's a one‑hour show and then repeated once. And we also run a series of vignettes for a number of years called Seeds of Success. Those are very short, a number of those just talking about success stories in the Aboriginal community. Both those programs take way more time and expense and the ‑‑ than any audience or revenue generated from them.
LISTNUM 95 \l 14760 COMMISSIONER ARPIN: The ‑‑ I have a few questions but I will have to be quiet. I'm playing with some confidential information so I need to be ‑‑ my questions may not be as clear as one could ‑‑ will have liked. But you're just saying that ‑‑ and I'm looking at aggregate numbers for the two companies that are working here in this market, at least to ‑‑ as a starter.
LISTNUM 95 \l 14761 You did mention that the ‑‑ you have a good base of employees that you have kept growing, but I notice that from the year 2002 to the year 2005 the market had a decline of close to 15 employees altogether so ‑‑ or rather ‑‑ so I think you have ‑‑ you have had to ‑‑ the market had ‑‑ the players in the market have had to look in making some decisions because I know ‑‑ notice also that, here, 2002 was not a beautiful year. The PBITs were negative for that year, so obviously some decisions had to be made and ‑‑ but the decline in the number of employees has been constant. If it wasn't a drop of 15, it was ‑‑ started by 7, then 2 others and then 5 others and ‑‑ just in the year 2005.
LISTNUM 95 \l 14762 If you are saying that you're ‑‑ because ‑‑ I'm asking the question because you said that at Rawlco you can ‑‑ you've maintained ‑‑ even in difficult times you maintained the base of the ‑‑ of your employees. Does that mean it's the competitor that has ‑‑ decrees its number of employees? And I will ask them also a very similar question.
LISTNUM 95 \l 14763 MR. GOLDSTEIN: I don't have the statistics in front of me for that, but it's not my understanding that we have decreased them. And I've ‑‑ quite frankly, I'm not sure that they have either, so I think that may be just a difference in the way it was filed or something. I don't know, but I don't believe that we've decreased the number of employees that we have. I can think of several areas where we've increased.
LISTNUM 95 \l 14764 MS LEYLAND: Yeah, I would echo that from, you know, practical running of radio stations' point of view, that we have increased. And Gord often will speak to me about the fact that we're adding employees in additional areas to do the new things that we want to do.
LISTNUM 95 \l 14765 COMMISSIONER ARPIN: I see. The ‑‑ we've been made aware that some corporate expenses have been applied to the station for ‑‑ and those corporate expenses obviously do increase the expense line of the operation of the organization, shall it be a factor that we keep in mind in calculating the PBIT? We ‑‑ we're to ‑‑ or should we deduct the ‑‑ in re‑establishing the PBITs, should we deduct the corporate expense?
LISTNUM 95 \l 14766 MR. GOLDSTEIN: Mr. Arpin, we are a small company, and it would seem to us that corporate expenses have to be charged somewhere. So, you know, when you file your CRTC returns, there isn't a separate category for corporate expense and then for each individual radio station. They have to be allocated amongst your radio stations.
LISTNUM 95 \l 14767 COMMISSIONER ARPIN: But they've been allocate ‑‑ to my knowledge, they have not been allocated to all of your radio stations. You've chosen some markets.
LISTNUM 95 \l 14768 MR. GOLDSTEIN: That's not ‑‑ that ‑‑ they have been allocated to all radio stations in what we consider to be a reasonable manner, yes, all radio stations.
LISTNUM 95 \l 14769 COMMISSIONER ARPIN: Okay. Mr. Goldstein, in your conclusions you said that, based on your evaluation, no radio station ‑‑ no new ‑‑ or you're saying no new commercial radio station into the regional ‑‑ Regina market should be approved. Will you consider the two Aboriginal applicants that we heard this morning to be a commercial player? Because they are looking to ‑‑ to raise advertising revenues, and we surely heard clearly some numbers from Natotawin and in the other case, they are contemplating more or less sponsorship rather than straight advertising.
LISTNUM 95 \l 14770 MS LEYLAND: No, we are fine with those applications.
LISTNUM 95 \l 14771 COMMISSIONER ARPIN: You're fine with those two applications?
LISTNUM 95 \l 14772 MR. GOLDSTEIN: As am I.
LISTNUM 95 \l 14773 COMMISSIONER ARPIN: Okay. No, but I know that you were ‑‑ I was asking myself, you were considering them as commercial because they do ‑‑ they are contemplating advertising revenues?
LISTNUM 95 \l 14774 MR. GOLDSTEIN: No, they ‑‑ first of all, obviously at the time I wrote that, I was looking at their applications as filed, but I don't think that anything they've said would tilt things so far as to cause a problem.
LISTNUM 95 \l 14775 COMMISSIONER ARPIN: Thank you very much. Those were my questions.
LISTNUM 95 \l 14776 THE CHAIRPERSON: Commissioner Williams...?
LISTNUM 95 \l 14777 COMMISSIONER WILLIAMS: Good afternoon, Mr. Rawlinson, Ms Leyland and Mr. Goldstein and panelists. Mr. Goldstein, I'm a little bit confused and maybe you can help me. Are you under a retainer arrangement with Rawlco or any other applicant here?
LISTNUM 95 \l 14778 MR. GOLDSTEIN: I am not under retainer.
LISTNUM 95 \l 14779 COMMISSIONER WILLIAMS: Are you getting paid in any way?
LISTNUM 95 \l 14780 MR. GOLDSTEIN: Oh, I'm absolutely getting paid of course.
LISTNUM 95 \l 14781 COMMISSIONER WILLIAMS: Yeah, okay.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14782 MR. GOLDSTEIN: And I ‑‑
LISTNUM 95 \l 14783 COMMISSIONER WILLIAMS: I was just trying to ‑‑
LISTNUM 95 \l 14784 MR. GOLDSTEIN: Absolutely, and ‑‑
LISTNUM 95 \l 14785 COMMISSIONER WILLIAMS: ‑‑ trying to figure out if you were here as a volunteer or if somebody hired you.
LISTNUM 95 \l 14786 MR. GOLDSTEIN: ‑‑ and handsomely so.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14787 MR. GOLDSTEIN: But this was made very clear in our letter of intervention and ‑‑
LISTNUM 95 \l 14788 COMMISSIONER WILLIAMS: Yeah.
LISTNUM 95 \l 14789 MR. GOLDSTEIN: ‑‑ and in the report.
LISTNUM 95 \l 14790 COMMISSIONER WILLIAMS: I just wanted to clarify that.
LISTNUM 95 \l 14791 MR. GOLDSTEIN: Absolutely.
LISTNUM 95 \l 14792 COMMISSIONER WILLIAMS: Yeah, I just ‑‑ why I wanted to know is that you answered separately to the last question of Vice‑Chair Arpin. You said, "As am I", which I kind of said, oh, gees maybe he is here a little independent other than what I've heard earlier. Okay.
LISTNUM 95 \l 14793 MR. GOLDSTEIN: We may have hired Ken, but he still has his own opinions.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14794 COMMISSIONER WILLIAMS: Yeah, okay. Well, Mr. Goldstein, you're an economist, and I'm very far from an economist. I'm a small businessman and a regulator, I guess.
LISTNUM 95 \l 14795 I read in today's paper at lunch, you may not have ‑‑ may or may not have read the same article, but the CIBC World Markets issued an economic report stating that the economic boom in Saskatchewan leads the country second only to Alberta. And this information was published in today's local newspaper, and the article further states that the economic boom is primarily resource based, the funds flowing to government coffers of such a current projected volume that the Saskatchewan Government has reduced provincial sales tax by more than 25 percent.
LISTNUM 95 \l 14796 So I'm wondering, in your opinion as an economist, do you think that the growth opportunities for Saskatchewan may be a little more optimistic than we've been hearing? Maybe in the 2001 to 2005 time frame averaged over those years might produce a slightly different than ‑‑ a different forecast than the most recent experience has been demonstrating?
LISTNUM 95 \l 14797 MR. GOLDSTEIN: I have the article here.
LISTNUM 95 \l 14798 COMMISSIONER WILLIAMS: Okay, good. Yeah.
LISTNUM 95 \l 14799 MR. GOLDSTEIN: I also saw it. I would point out that the projection, first of all ‑‑ actually, if you notice, I've used the Conference Board as my going forward.
LISTNUM 95 \l 14800 COMMISSIONER WILLIAMS: Yeah.
LISTNUM 95 \l 14801 MR. GOLDSTEIN: The projection in CIBC for 2006 is actually a little lower than the Conference Board one that I relied on. And for the year after, it's actually a little higher, so it works out about the same over those two years.
LISTNUM 95 \l 14802 But I think the key point here is that I would love every part of Canada to boom forever. We're dealing with a situation of resource commodity prices, and I think it's important to continue reading in that same article where it says the economist who's quoted, it says, "It's no secret that Saskatchewan has long had a below‑average rate of population growth, and it is that population that listens to the radio ‑‑ not the wells, not the mines, not the potash, but it's the population that listens to the radio."
LISTNUM 95 \l 14803 And I wish it were otherwise and I think that I would like everything good to happen in this province, but when I look at the reality of where we're at in the radio business, where we're at in the kinds of indicators that affect the radio business, I would be very cautious.
LISTNUM 95 \l 14804 COMMISSIONER WILLIAMS: Yeah. Elsewhere in that newspaper and others, they talk about vast inventories of industrial property and other real estate stock being bought up and sold quickly, another ‑‑ I guess to my layman's limited knowledge of how things go up and down, that things actually are really improving here. Like, people are buying stuff and maybe there will be people coming here. Would you be saying that that's ‑‑
LISTNUM 95 \l 14805 MR. GOLDSTEIN: Let's hope so.
LISTNUM 95 \l 14806 COMMISSIONER WILLIAMS: Let's hope so? Okay, yeah. Okay ‑‑
LISTNUM 95 \l 14807 MR. RAWLINSON: Commissioner Williams ‑‑
LISTNUM 95 \l 14808 COMMISSIONER WILLIAMS: It's a cautious optimism, I guess, is what I'm hearing.
LISTNUM 95 \l 14809 MR. RAWLINSON: I'm sorry, I kind of jumped in on you. I apologize.
LISTNUM 95 \l 14810 COMMISSIONER WILLIAMS: Yeah, that's ‑‑ no, that's fine.
LISTNUM 95 \l 14811 MR. RAWLINSON: I just want to make a quick comment, but I think things do look better today than they have for a while, for the future. And I'd ‑‑ really do hope that things are going to improve. We just had so many false starts and, you know, I've had ‑‑ we've had many times when we've had ‑‑ said, boy, you know, the next couple of years are really looking good for Saskatchewan when they first started developing uranium in Saskatchewan, when potash came along, and it ‑‑ there's been a number of time ‑‑ things that we thought were really going to make a huge difference, and they have. But there's this incredible ‑‑ there's two things.
LISTNUM 95 \l 14812 There's this ‑‑ the agricultural population has continued to decline, so that's a factor. And the other thing is is that we have the bad fortune of living next to Alberta, and it just ‑‑ as much as we try in Saskatchewan, Alberta just keeps sucking the people out, and so it's ‑‑ so I'm ‑‑ I am hopeful that things are going to get better, and we're not saying they're terrible now. We're just saying we're hoping that things will really ‑‑ for once really start to boom here, but they haven't yet.
LISTNUM 95 \l 14813 COMMISSIONER WILLIAMS: One of the big differences I see between these two provinces, and I've had the advantage of living in Alberta for the last few years, but I didn't live there all the time ‑‑ is I think there's a ‑‑ there was an attitude, I remember when I first went there, and I think they called it the Alberta advantage, which was relatively low prices, well‑educated workforce and, you know, a gung ho attitude about their future opportunity which didn't look that good in the early '90s in Alberta either.
LISTNUM 95 \l 14814 Now, Saskatchewan's probably got a better educated public. I think it's one of the most educated publics in the country. I don't know that for sure. Maybe Mr. Goldstein would know that. And it's got resources that one of the other articles I read ‑‑ and I apologize, but I read everything that I can get my hands on. And it says the large ‑‑ that possibly the largest oilfield find since 1953 in the southwestern corner, I guess, of Saskatchewan and dropping down into Montana and some of the lower States. And the other 1953 oil find is the one basically that got Alberta into the big time the first time anyway.
LISTNUM 95 \l 14815 So I guess if I would look at Saskatchewan, I'd say there's a real Saskatchewan advantage because now Alberta is plagued with high housing prices. You can't find labour or trades anywhere. I'd say the boom economies do have a bit of a down side, and it's hard to get anything done. And when you do get stuff done, it's very expensive, which would ‑‑ I guess companies that were looking for some sort of advantage, to look naturally toward Saskatchewan.
LISTNUM 95 \l 14816 And then I was thinking, well, maybe that's why this industrial land is being bought up and maybe that's why there's residential projects under construction. Like, they're not building them for ‑‑ and hoping someone would come. I would imagine that the people financing them, unless they're financing them out of their back pockets, would expect them to have a real reasonable opportunity to recoup that money so they could pay back the debt.
LISTNUM 95 \l 14817 Do you have ‑‑ like, I just don't see it as frightening an economic prospect in this province as I've been hearing to some extent.
LISTNUM 95 \l 14818 MR. RAWLINSON: Well, I'll comment quickly and then let Ken speak to that. But quite frankly, I don't think we are feeling that it's frightening. I think that we think that Saskatchewan is, as it always has been, pretty steady and things do ‑‑ the prospects do look good.
LISTNUM 95 \l 14819 All we're suggesting is is that, you know, if you come right back to the licensing issue, there's ‑‑ if you give an extra licence to a market, and it proves to be too many, it throws the market into destruction for a long time, and you can't take it back.
LISTNUM 95 \l 14820 If you under‑licence, i.e. if there should have been a licence granted, and you say "Well, let's just wait for several years", you can't correct that. But we've had a case ‑‑ it came up yesterday, I think, where somebody said, "Gee, the last station in Regina was 20‑some years ago".
LISTNUM 95 \l 14821 Well, you know, Regina radio was really over‑radioed for that period and is ‑‑ what happened was there was actually two licenses given at that time, and it went from four radio stations to six radio ‑‑ I'm talking commercial radio stations, commercial mainstream stations.
LISTNUM 95 \l 14822 And subsequent to that, several of the radio stations had severe financial difficulties. Almost all of them changed hands, and it was one of the worst radio markets for many, many years. And, you know, the ‑‑ Mr. Hill had to come in and buy some stations, and the great old CKCK actually ‑‑ I don't know whether they went formally into receivership, but it virtually went bankrupt. I mean there was some really tough times for virtually every other radio station in the marketplace, except the two that we had that ‑‑ and we struggled and we had losses and so on, but at least we were able to carry on.
LISTNUM 95 \l 14823 And so making an ‑‑ over‑licensing, at any given time, really it just takes a long time to get it sorted and usually there's some tremendous turmoil in the meantime. If you say "Well, we're not sure" and say ‑‑ and we can always come back a couple of times ‑‑ several years later, and so I'm saying that ‑‑ right back to your question on the economics ‑‑ there are some things that look promising, but we have had those kind of promising prospects before.
LISTNUM 95 \l 14824 That oilfield that you mentioned is an oilfield that everybody, I think, knew existed except they thought it had been primarily tapped out. They thought it was a certain level, and they've now discovered ‑‑
LISTNUM 95 \l 14825 COMMISSIONER WILLIAMS: Yes, there's a new technology ‑‑
LISTNUM 95 \l 14826 MR. RAWLINSON: ‑‑ a new type of drilling.
LISTNUM 95 \l 14827 COMMISSIONER WILLIAMS: ‑‑ that's come forward or something that's ‑‑
LISTNUM 95 \l 14828 MR. RAWLINSON: Yes, new technology and they're thinking that it can ‑‑
LISTNUM 95 \l 14829 COMMISSIONER WILLIAMS: Yeah.
LISTNUM 95 \l 14830 MR. RAWLINSON: ‑‑ develop into something and so ‑‑ and I'm somewhat familiar. That's actually, I think, southeastern Saskatchewan. My wife's family is from down there, and you see the odd well there, but then you also see one that was from 20 years ago that ‑‑ they aren't prolific wells, and they do cost more money to drill these wells but, yes, there is some potential for that.
LISTNUM 95 \l 14831 So again, let's hope. But we're still next to Alberta where, you're right, things are more expensive, but there's ‑‑ but the jobs also pay a lot more and there's still that appeal to get people to go there. So there are some people actually that are saying "Hey, things are a lot cheaper in Saskatchewan; let's move back to Saskatchewan" or "Let's move to Saskatchewan". Let's hope there's a lot more of those but, still today, the trend is still the opposite direction so ‑‑
LISTNUM 95 \l 14832 MR. GOLDSTEIN: Yeah, and just a couple of very quick comments. First of all, I looked at that map of the oilfield. I was trying to see if it extended into Manitoba ‑‑
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14833 COMMISSIONER WILLIAMS: No.
LISTNUM 95 \l 14834 MR. GOLDSTEIN: But it didn't get as far as where I live so ‑‑
LISTNUM 95 \l 14835 COMMISSIONER WILLIAMS: Just a little along the border.
LISTNUM 95 \l 14836 MR. GOLDSTEIN: Yeah, yeah. The second thing when you talk about Alberta, it's actually true it's overheated and peoples always say "You know, it's overheated; this will happen", and it reminds me of something that Yogi Berra once said. "Nobody goes there anymore; it's too crowded."
LISTNUM 95 \l 14837 COMMISSIONER WILLIAMS: Yeah.
LISTNUM 95 \l 14838 MR. GOLDSTEIN: But very seriously, it would be really nice to see this turn around. It would be really nice to see the population turn around, so we're weighing a couple of factors here. We're weighing some of these signs that say, you know, maybe this will happen. Maybe these commodity prices will stay at this level. Maybe we'll be able to spin off from the commodity prices into certain other kinds of activities ‑‑ maybe, maybe, maybe.
LISTNUM 95 \l 14839 On the other hand, we see Statistics Canada issue a projection that show that, over the next 25 years, only Saskatchewan and Newfoundland will lose population. We see the Conference Board projections for the next five years, so I guess you want to go with your hopes. You certainly don't want to play to your fears, but the real numbers as they're currently laid out in front of us, I still think say caution.
LISTNUM 95 \l 14840 And I agree completely with what Gordon said, caution lets you correct on the plus side later. Lack of caution doesn't let you correct later.
LISTNUM 95 \l 14841 COMMISSIONER WILLIAMS: Well, thank you very much, Mr. Rawlinson and Goldstein. That's my questions, Madam Chair.
LISTNUM 95 \l 14842 THE CHAIRPERSON: Round 2, Commissioner Pennefather...?
LISTNUM 95 \l 14843 COMMISSIONER PENNEFATHER: Brief question, Mr. Goldstein. The Conference Board report that you referenced in your presentation today, what is the date of that?
LISTNUM 95 \l 14844 MR. GOLDSTEIN: Fall '06.
LISTNUM 95 \l 14845 COMMISSIONER PENNEFATHER: Fall '06?
LISTNUM 95 \l 14846 MR. GOLDSTEIN: Yeah.
LISTNUM 95 \l 14847 COMMISSIONER PENNEFATHER: And it was just pointed out to me that while perhaps decline ‑‑ are the growth rates not as such positive? For example, 2008 is 2.4 percent; 2009, 2.3 percent. Do the rates ‑‑ they're positive however.
LISTNUM 95 \l 14848 MR. GOLDSTEIN: The rates are positive but lower than they were and lower than Canada.
LISTNUM 95 \l 14849 COMMISSIONER PENNEFATHER: Thank you. Thank you, Madam Chair.
LISTNUM 95 \l 14850 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 14851 I have a few questions. I read your report, Mr. Goldstein, and my initial reaction was that part of the problem with the Regina and Saskatoon markets is the size of the incumbents and that they're not Rogers, where they get to amortize their expenses over ‑‑ the same expense, you know, over Lord knows how many stations, and so scale is part of the problem or the size of the incumbents is part of the problem.
LISTNUM 95 \l 14852 And I guess I then want to go to the issue of your linking profitability and gross revenues, and the thing between gross revenues and profitability is expenses. And so then that leads me ‑‑ Mr. Rawlinson to say ‑‑ to ask you to inform us, either now or on a confidential basis, who has paid the costs, the pre‑application costs of your applications to Edmonton and to Calgary? And is that a cost of the company? Has it been expensed through Rawlco?
LISTNUM 95 \l 14853 And secondly, have you been capitalizing the staff costs, not capital costs but staff costs of the launch of the Edmonton station? I know Ms Leyland spent a good number of days and I'm sure other staff has, too, on that station. And I know you would capitalize your capital expenses, but did you also capitalize your staff costs or have they gone into the expenses?
LISTNUM 95 \l 14854 And my point is drawing a string between the revenues and the expenses and ‑‑ because as Mr. Goldstein said, PBIT is what's left over after the cost of earning that revenue, not future revenue. So I'm asking that you would provide us with that information on a confidential basis and if you could, if possible, quantify the pre‑application costs of both Edmonton and Calgary, and the staff costs if indeed they have not been capitalized into the launch of Edmonton? Could you do that? And I don't know what's reasonable in terms of a length of time to answer.
LISTNUM 95 \l 14855 MR. GOLDSTEIN: Would a week be reasonable?
LISTNUM 95 \l 14856 THE CHAIRPERSON: Sure, within a week, yeah.
‑‑‑ UNDERTAKING / ENGAGEMENT
LISTNUM 95 \l 14857 THE CHAIRPERSON: Now ‑‑ and this is not rocket science, but I'll do it as if I'm the best litigator in the world. I agree with you that the population has not changed in Saskatchewan but, Ms Leyland, has the distribution of that population changed?
LISTNUM 95 \l 14858 MS LEYLAND: This microphone, by the way, is faulty, so I'm just ‑‑
LISTNUM 95 \l 14859 THE CHAIRPERSON: I noticed that. I was going to tell Claude, yes.
LISTNUM 95 \l 14860 MS LEYLAND: Intermittent electrical problem. Yes, as we both know because we've lived here for a while.
LISTNUM 95 \l 14861 THE CHAIRPERSON: Yes, and that's the point because we're talking ‑‑ we're not talking about Saskatchewan. We're talking about Regina and Saskatoon, and that's where the population increases have happened. And you want to say something about that, Mr. Goldstein? Please. Because you were talking about the number of years to listen, and that's ‑‑
LISTNUM 95 \l 14862 MR. GOLDSTEIN: Yes, just as a very simple example ‑‑ we're talking about Regina, so let's talk about Regina.
LISTNUM 95 \l 14863 THE CHAIRPERSON: Yeah.
LISTNUM 95 \l 14864 MR. GOLDSTEIN: And the comment that was made about the last new station licence in this market was over 20 years ago, so I dutifully went on to the Statistics Canada site and I looked up the population from 1986 of the Regina census metropolitan area and it was 190,566.
LISTNUM 95 \l 14865 THE CHAIRPERSON: In when, I'm sorry?
LISTNUM 95 \l 14866 MR. GOLDSTEIN: 1986.
LISTNUM 95 \l 14867 THE CHAIRPERSON: '86.
LISTNUM 95 \l 14868 MR. GOLDSTEIN: 190,566, and according to Statistics Canada in 2005 199,041, so that's not what you'd call a huge increase over a 20‑year period.
LISTNUM 95 \l 14869 So when we talk about the proportions changing, if you look only at the proportion of Regina as a proportion of Saskatchewan and say it's gone up, yes, it has. Part of it is because the population of Regina has gone up a little and part of it is because the rural population has gone down a lot.
LISTNUM 95 \l 14870 THE CHAIRPERSON: Yes. What about the extended CMA?
LISTNUM 95 \l 14871 MR. GOLDSTEIN: That is the ECMA.
LISTNUM 95 \l 14872 THE CHAIRPERSON: The extended ‑‑ the ECMA?
LISTNUM 95 \l 14873 MR. GOLDSTEIN: It's as Statistics Canada defines the census metropolitan area. It's ‑‑
LISTNUM 95 \l 14874 THE CHAIRPERSON: Okay, but what about the surrounding areas because of the bedroom communities now?
LISTNUM 95 \l 14875 MR. GOLDSTEIN: That ‑‑ that's all ‑‑ see, the definition of a CMA is to include bedroom communities. That's how they define a CMA.
LISTNUM 95 \l 14876 THE CHAIRPERSON: Okay. I thought there was another one when we were doing ‑‑
LISTNUM 95 \l 14877 MR. GOLDSTEIN: Well, there are extended ‑‑
LISTNUM 95 \l 14878 THE CHAIRPERSON: ‑‑ the telephone ‑‑
LISTNUM 95 \l 14879 MR. GOLDSTEIN: ‑‑ markets in television and there's a central market for BBN Radio.
LISTNUM 95 \l 14880 THE CHAIRPERSON: Yeah, okay.
LISTNUM 95 \l 14881 MR. GOLDSTEIN: And my recollection is that central and CMA are identical.
LISTNUM 95 \l 14882 THE CHAIRPERSON: Okay. Okay, I think that's ‑‑ I think we can let you off the hot seat. Thank you very much.
LISTNUM 95 \l 14883 MS LEYLAND: Thank you.
LISTNUM 95 \l 14884 THE CHAIRPERSON: Madam Secretary...?
LISTNUM 95 \l 14885 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 14886 I will now call the next appearing intervener, Hospitals of Regina Foundation. If you would come forward please?
‑‑‑ Pause
LISTNUM 95 \l 14887 THE SECRETARY: Would you please identify yourself or introduce yourself? And then you will have ten minutes for your presentation.
LISTNUM 95 \l 14888 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 14889 MS DAVIS: Good afternoon. My name is Judy Davis, and I am the chief executive officer for the Hospitals of Regina Foundation. I'd like to thank you for the opportunity to appear before the hearing this afternoon.
LISTNUM 95 \l 14890 The Hospitals of Regina Foundation is the largest charity of its kind in the Regina area. We are an independent, voluntary‑led organization that raises funds for medical technology, education and research for Regina's hospitals.
LISTNUM 95 \l 14891 Because we do not receive any funding for government, we rely on individuals, corporations and community groups for our financial support. Our collective efforts have had an immensely positive impact on the quality of care provided, which has also held ‑‑ helped attract and retain medical professionals in our community.
LISTNUM 95 \l 14892 I'm proud to say that since our inception in 1988, the foundation has raised over $65 million in support of better health care. This year alone, the foundation will raise in excess of $7 million that will be invested in new operating room equipment, a new cardiac cath lab, breast and prostate assessment equipment, and patient comfort items like electric beds and lifts.
LISTNUM 95 \l 14893 Our success comes from our partnerships, and one of the most important partnerships we have built has been with Rawlco Radio, and we are grateful to them for their ongoing support through the annual Z99 radiothon that benefits the new neonatal intensive care unit at the Regina General Hospital.
LISTNUM 95 \l 14894 This year will make the 20th annual radiothon in support of better medical equipment for the tiniest babies. It is immensely popular in our community and extremely successful. To date, over $1.4 million has been raised.
LISTNUM 95 \l 14895 Perhaps in some circles this would not be considered significant. However, in our city and a city this size, it has meant the difference between using new state of the art technology versus getting by with old outdated equipment.
LISTNUM 95 \l 14896 The commitment of Rawlco Radio goes far beyond the radiothon. It truly extends to their employees who are committed ambassadors of the foundation, spread word about the need for enhanced health care.
LISTNUM 95 \l 14897 Station manager Tom Newton served on the foundation board until his term expired last year and now Z99 program director, Kristy Werner, has come on board to fill that gap.
LISTNUM 95 \l 14898 The total Rawlco team commitment is further demonstrated through the work done by a number of Z99 staff to line up pledged support from businesses in the community to ensure financial goals are met for the radiothon.
LISTNUM 95 \l 14899 Publicity is extensive and begins well in advance of the event. In addition to the on‑air interviews, promotional ads and donor testimonials, a number of brochures are distributed throughout our community. As a foundation, we could not accomplish this level of publicity and support without Z99's efforts.
LISTNUM 95 \l 14900 Together we have built an event that culminates in a 36‑hour live broadcast. By sharing inspirational stories and encouraging people to give generously, Z99 has created a lifeline of support for the new neonatal unit. The goal this year is to raise funds to purchase heart monitors. All babies need their heart rate and breathing monitored, and these new monitors are absolutely state of the art.
LISTNUM 95 \l 14901 Rawlco Radio's commitment to the children of southern Saskatchewan extends far beyond the radiothon. In 2004, Rawlco announced a $1.5 million donation to establish the Rawlco Centre for Mother Baby Care at the Regina General Hospital. It's an exciting project that will have an impact on families for generations to come.
LISTNUM 95 \l 14902 As the lead donor for the foundation's Small is Big Campaign to furnish and equip the new centre, Rawlco demonstrated true leadership and their support was the catalyst to encourage others to come on board. Our campaign would not have achieved the success that it did without their support.
LISTNUM 95 \l 14903 Rawlco is truly a company that is philanthropic and community minded and aims to make a difference where its employees live and work. And that's really why I'm here today, to highlight the contributions Rawlco Radio makes to the quality of life in Regina, and demonstrate how important their support is to the Hospitals of Regina Foundation.
LISTNUM 95 \l 14904 I value the partnership we've built with Rawlco over many years and their generous airing of foundation public service announcements and support of all of our fundraising goals has greatly assisted us in brand awareness and the funds that we have raised.
LISTNUM 95 \l 14905 I am concerned that increased competition in our market could impact our existing relationship and decrease the effectiveness of our partnership in our shared efforts to raise funds in the community. It is my hope that the environment remains such that our partnership continues to blossom and grow for 20 more years.
LISTNUM 95 \l 14906 Thank you.
LISTNUM 95 \l 14907 THE CHAIRPERSON: Thank you very much.
LISTNUM 95 \l 14908 MS DAVIS: Thank you.
LISTNUM 95 \l 14909 THE CHAIRPERSON: Madam Secretary...?
LISTNUM 95 \l 14910 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 14911 I would now call on the next appearing intervener, Paul Martin Communications, if you could come forward?
‑‑‑ Pause
LISTNUM 95 \l 14912 THE SECRETARY: If you could introduce yourself? And then you will have ten minutes for your presentation.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 14913 MR. MARTIN: Thank you.
LISTNUM 95 \l 14914 Good afternoon. I'm Paul Martin, president of Paul Martin Communications and I'd like to ‑‑
LISTNUM 95 \l 14915 THE CHAIRPERSON: If I could just interject?
LISTNUM 95 \l 14916 MR. MARTIN: Yes.
LISTNUM 95 \l 14917 THE CHAIRPERSON: Not the Paul Martin from Montreal?
LISTNUM 95 \l 14918 MR. MARTIN: No, the other ‑‑
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14919 THE CHAIRPERSON: The real Paul Martin.
LISTNUM 95 \l 14920 MR. MARTIN: I think I referred to it the other day as the employed one.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14921 MR. MARTIN: Thank you, Madam Chair.
LISTNUM 95 \l 14922 I'd like to add some further comments to the written submission that I made so I thank you for the opportunity to join you.
LISTNUM 95 \l 14923 In particular, I'm going to focus on two main areas which you've heard a fair bit about and I'd just like to add my voice to it. There's been lots of discussion about Saskatchewan's population and I guess it's, in my characterization, is at best static, which is perhaps considered the optimistic view in the province.
LISTNUM 95 \l 14924 In fact, we've suffered net out‑migration every year since ‑‑ 1992 was the last positive year we had, and there may be some arguments that we're about to see another one of those bumps where we could get back onto the positive side.
LISTNUM 95 \l 14925 And we have an economy here that's quite cyclical, and it seems that our cycle comes once every 25 years, and we may be on the edge of ‑‑ or sort of around it. There are some indicators suggesting 2005 may have been the hot year and in 2006 we're beginning to see a bit of a decline, and we'll continue to see that going forward there.
LISTNUM 95 \l 14926 There were some references to economic forecasts, CIBC World Markets in particular today. There was one about ten days ago from one of the other major banks which would play Saskatchewan in that fourth spot, so probably in that 3 to 3 and a half percent range is what the general consensus is. So while it's strong by Saskatchewan standard, certainly not anything that is nationally outstanding.
LISTNUM 95 \l 14927 But as we watch the out‑migration issue, as someone who has been involved in writing about business issues and political issues in this province, and also now more engaged in policy formation on the economic front ‑‑ you know, we've watched this out‑migration challenge significantly. We like to jokingly say that when the Roughriders play in Calgary, it's a home game. And that may be the very reason why they won't let our mascot in there this weekend.
LISTNUM 95 \l 14928 But the result here has been what economists call a hollowed‑out economy or we have a high dependency ratio and that we have a high number of young people, and that is predominantly seen in the rapid growth rates in the population base in the Aboriginal community, and then we have a high number of seniors, disproportionately high compared to the national average. Our problem is inbetween, between 19 and 64 in working age, if you want, where we have significantly below the national average in terms of population within each of those age categories.
LISTNUM 95 \l 14929 In fact, the most likely person to leave Saskatchewan is between the ages of 19 and 24, and 60 percent or 59 percent of them will go to Alberta. So we've seen this trend going and, while many in policy circles in the province are optimistic we can reverse it, at this point we've not seen it.
LISTNUM 95 \l 14930 It's been since ‑‑ 1982 was the last time ‑‑ well, that was the first negative, so '81 was the last positive number that we saw in terms of migration.
LISTNUM 95 \l 14931 But we have indeed seen some population shifts within the province as we've seen consolidation. In rural, in agricultural communities farms are larger, fewer people on each piece of land. They have tended to move more to the urban centres, and so we've seen a little bit of shifting within the province. But generally, if you look at the provincial numbers, they have not changed very significantly at all.
LISTNUM 95 \l 14932 This has been a key issue for the business community and for politicians, and we are beginning to see work into political platforms into the policy discussion that goes on here.
LISTNUM 95 \l 14933 In terms of what we see within the major urban centres, Regina, I think, has probably been slower in its growth but is more stable. It's anchored by government finance, insurance type industries more on the service side sector.
LISTNUM 95 \l 14934 Saskatoon has been somewhat more volatile. It has enjoyed a bit of growth in the last few years compared to Regina. It's industrially based, but that tends to be more volatile. And it is more vulnerable to closures as we've ‑‑ of major industries as we've seen in the last little while the loss of a pulp and paper mill just north of Saskatoon and, more recently, the announcement of an impending closure of that ‑‑ or a major meat processing facility in Saskatoon.
LISTNUM 95 \l 14935 In fact we've even seen this ‑‑ the people that were displaced, in particular with Prince Albert. Now we've seen the new air service being added from Saskatoon through Prince Albert and on to Fort McMurray, so what we're seeing is the population might reside here but in fact is working in Alberta and commuting back and forth.
LISTNUM 95 \l 14936 And that takes me to the broader issue, I think, of market fragmentation, and it is a concern of mine. As someone who's engaged in broadcasting in the community, I freelance for the Rawlco chain and for also Golden West and I had ‑‑ I do a business commentary, and they're heard as well on the Yorkton station.
LISTNUM 95 \l 14937 You know, at the root of all of this audience is what it's all about, and if the audience isn't growing ‑‑ and yet, that's contrasted by the number of media options that are coming along, and I think I delineated those in my written piece. You really can't help but have market fragmentation.
LISTNUM 95 \l 14938 And I get worried about that because there was a point in my career where I was doing television. We had a television program. It was a very high quality TV show produced here in Regina and then later in Saskatoon with the CTV operations, and won pretty much every award that we could ever submit it to. We took the show around the world. We had budgets that enabled us to go to China, to the UK, to the United States. Not only is that show gone, but many of the other programs that were generated here locally are gone as well.
LISTNUM 95 \l 14939 I saw that as nothing more than a byproduct of fragmentation. As the audiences decline, simply the advertising revenue wasn't there to the station and they were forced, through prudence, to have to trim back their program options. And as a result, alternative voices within the province, such as mine, were not available on that station anymore. But perhaps more importantly, from an audience perspective, was that we were served less local, more national. And the local stories were not being told. Certainly the business stories were not being told as well or in any sort of in‑depth fashion.
LISTNUM 95 \l 14940 So I raise that as a concern, that I worry about any additional licences being granted. While on the surface that sounds great, all the options ‑‑ all the more options the better, as long as we don't lose what we've already got. If we have to undermine the program options that we've got in order for more a variety or more of the same or different version of the same, I would not be a real fan of that. I would think that at least maintain the standard of programming that we've got.
LISTNUM 95 \l 14941 You know, to bring in more John Tess really just doesn't seem to be progress to me. I'd much rather that have a greater opportunity to have more in-depth coverage of ‑‑ brought to the airways by people who live here locally, rather than importing more product.
LISTNUM 95 \l 14942 So my concern is a dual one; if the population is not growing and we add more licences to it, we just fragment the marketplace further and undermine what we've already got. So thank you.
LISTNUM 95 \l 14943 THE CHAIRPERSON: Commissioner Williams has a question.
LISTNUM 95 \l 14944 COMMISSIONER WILLIAMS: In terms of adding more licences, your comment is you'd rather just ‑‑ well, you know your comment. Does that hold true for the addition of the Aboriginal applicants that claim that they're currently underserved, the market is underserved for their community?
LISTNUM 95 \l 14945 MR. MARTIN: You know, I think I'd probably echo their view. I think that in the last five to ten years the voices of the First Nations and the Aboriginal community have begun to be heard, but they weren't heard at all before that. So we've made some progress, but I think that they've got a long ways to go. And, you know, we ‑‑ I think probably there's some merit in continuing to allow that to continue to grow.
LISTNUM 95 \l 14946 COMMISSIONER WILLIAMS: Okay. Thank you very much for that.
LISTNUM 95 \l 14947 MR. MARTIN: Yeah.
LISTNUM 95 \l 14948 COMMISSIONER WILLIAMS: I have no further questions, Madam Chair.
LISTNUM 95 \l 14949 THE CHAIRPERSON: Vice‑Chair Arpin has a couple of questions.
LISTNUM 95 \l 14950 COMMISSIONER ARPIN: Yeah, Mr. Martin, we also heard an application for a gospel music radio station, and I don't think gospel music is offered in this market.
LISTNUM 95 \l 14951 MR. MARTIN: Not to the best of my knowledge.
LISTNUM 95 \l 14952 COMMISSIONER ARPIN: No. And do you think it will be ‑‑ it will complement the radio offering in the market or will it be a competitor that you think should be of a similar nature than the other more programming genre that ‑‑ more commercial programming genre?
LISTNUM 95 \l 14953 MR. MARTIN: It ‑‑ and I don't know that I can comment. I don't know what their business case was, whether they were going to look for local advertising revenue or not but ‑‑
LISTNUM 95 \l 14954 COMMISSIONER ARPIN: They're looking for some significant advertising revenues.
LISTNUM 95 \l 14955 MR. MARTIN: From the local market?
LISTNUM 95 \l 14956 COMMISSIONER ARPIN: Yes.
LISTNUM 95 \l 14957 MR. MARTIN: Presumably that would be a further fragmentation that would disrupt ‑‑ and my baseline theory is that I'm not necessarily opposed to the addition of voices. I just want to make sure that if you give us more, we don't take away what we've already got. Let's build upon the foundation but not undermine the foundation.
LISTNUM 95 \l 14958 COMMISSIONER ARPIN: The ‑‑ it's not necessarily in this room, but surely outside the room, I'm hearing a lot about how important the government is in this province. And do you have an idea of where the share of advertising that the government is investing in the overall media, and the radio in particular?
LISTNUM 95 \l 14959 MR. MARTIN: I have no idea of what their share of advertising revenue is. But just as a general conversation or observation, I would think that you're hearing pretty accurate stuff, that the government is fairly well involved in this economy, yes.
LISTNUM 95 \l 14960 COMMISSIONER ARPIN: So ‑‑
LISTNUM 95 \l 14961 MR. MARTIN: And I was in the newspaper business at one point and I just wish the government would have bought more at that time but ‑‑
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14962 COMMISSIONER ARPIN: So they never buy enough?
LISTNUM 95 \l 14963 MR. MARTIN: They didn't buy enough from me anyway.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 14964 COMMISSIONER ARPIN: But it's also got ‑‑ government expenditures is also somehow cyclical; when the elections are coming, they're investing more than the day after the election.
LISTNUM 95 \l 14965 MR. MARTIN: Well, that's absolutely accurate, especially the day after a change in government. But, you know, they're cyclical in two contexts. One, there's the political cycle, but there's also the economic cycle. And I think that, you know, much has been said about the oil industry, and certainly that's been quite a potent catalyst for the province, but we don't have a lot of oil companies headquartered here ‑‑ a couple of small ones.
LISTNUM 95 \l 14966 Most of the money that's generated from the oil industry, any profits tend to ‑‑ from the production side at least, tend to flow outside the province. The only place that it gets captured is either in the service industry or in the provincial treasury through royalties, which then allows the province to, you know, open it's purse to do what it does.
LISTNUM 95 \l 14967 And it has recently added some advertising campaigns to the mix but, you know, that too, is cyclical as well. I mean we've seen certainly the rise on the oil and gas side and on the mineral side, but at the same time, we've seen significant challenges on the forestry side and now we're seeing some on the value added side in agriculture.
LISTNUM 95 \l 14968 COMMISSIONER ARPIN: Thank you very much, Mr. Martin.
LISTNUM 95 \l 14969 MR. MARTIN: You're welcome.
LISTNUM 95 \l 14970 COMMISSIONER ARPIN: Madam Chair...?
LISTNUM 95 \l 14971 THE CHAIRPERSON: Thank you, Mr. Martin. Nice to see you again. There ‑‑ we have no more questions.
LISTNUM 95 \l 14972 MR. MARTIN: Well, thank you very much.
LISTNUM 95 \l 14973 THE CHAIRPERSON: Madam Secretary...?
LISTNUM 95 \l 14974 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 14975 I would now call Mr. Neil Meckelborg to come forward to present his intervention.
‑‑‑ Pause
LISTNUM 95 \l 14976 MR. MECKELBORG: Test, test. It's working?
LISTNUM 95 \l 14977 THE SECRETARY: I would ask that you introduce yourself and then you will have ten minutes for your presentation.
LISTNUM 95 \l 14978 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 14979 MR. MECKELBORG: My name is Neil Meckelborg. I'm a recording engineer, songwriter, record producer, studio owner, weekend musician and director of Rawlco's 10K20 program. These are two of the 29 artists that recorded CD's with 10K20's support this year; Kim Fontaine from Saskatoon and Morgan Mayer from Regina.
LISTNUM 95 \l 14980 I've been a professional musician for almost 30 years and a Saskatchewan resident most of my life. I've played in numerous rock and roll bands over the years, the most successful of which was a seven‑year ‑‑ seven years as lead singer for Saskatoon's Line Up in Paris. Two albums, two radio singles and video that was aired on MuchMusic, as well as five years of touring from Victoria to Toronto, has left me with some wonderful memories as well as the kind of music industry understanding that only comes from experience.
LISTNUM 95 \l 14981 After the demise of Line Up, I began putting some of the studio skills I'd learned over the years to use, recording bands myself. This led to a basement studio, a garage studio, my own facility, and now partnership in one of Saskatchewan's largest recording facilities, Audio Art Recording in Saskatoon. I also served on the Saskatchewan Recording Industry Association board of directors for two years.
LISTNUM 95 \l 14982 Rawlco Radio approached me earlier this year to be the director for their 10K20 program. This is a program where 20 artists from Saskatchewan are given $10,000 each to make a CD. I gladly accepted the opportunity and was very exited about the project.
LISTNUM 95 \l 14983 It wasn't until I was on my way home from the meeting, however, that I really started to realize what this actually meant. Twenty artists from Saskatchewan getting ten grand each to record an album. That's 20 artists. As a musician living in the province most of my life, I think it is safe to say that there's never been this much of an infusion of support into the Saskatchewan music industry at one time.
LISTNUM 95 \l 14984 The project was launched in April, and we were flooded with requests. There were almost 250 applications. I was amazed at the number of people applying and the quality of the applications. The most daunting task was going to be choosing 20. Then Rawlco made my job easier and found funding for nine more albums, bringing the total to 29.
LISTNUM 95 \l 14985 That's almost $300,000 pumped into the Saskatchewan music economy over the course of one year. I think it's safe to say that that has never happened before, and it's also a precedent, I think as far as I know, in the country. I don't think anything other than government support in either provincial or a federal level has matched that.
LISTNUM 95 \l 14986 My job as director was to identify artists that would be funding candidates and help them through the process of their recordings. This meant anything from helping them find studios, musicians and producers to just advice and opinions on how the project was progressing.
LISTNUM 95 \l 14987 The finished albums began arriving in September, but the majority have arrived in the last month or few weeks. At this point we have 23 of 29 completed, and 5 of the remaining 6 are scheduled for completion within the next few weeks.
LISTNUM 95 \l 14988 One 10K20 artist ran into a major snag when the producer he was going to use for his album was no longer available. Scheduling made it impossible for the producer to participate in the album project, and the entire project was put on hold until another producer could be found. This situation put the artist in an awkward position, and I feel it noteworthy to point out that Rawlco chose to continue his funding instead of cutting him off when the original funding agreement was no longer possible. The artist is currently negotiating with other producers and is hoping to have his album completed by the end of the year.
LISTNUM 95 \l 14989 Rawlco has made a commitment to playing these artists and many other local artists as well. This is an important point and one that I have witnessed countless times driving home from work and hearing local bands on Rock 102 and C95 in Saskatoon.
LISTNUM 95 \l 14990 This fact is crucial to the success of this project. Without airplay, these albums are likely to be sold off stage at gigs and sent off to record companies to be tossed out the back door because nobody's ever heard of them.
LISTNUM 95 \l 14991 The significance of a quality competitive recording for an artist's future development can't be overstated, and having it receive radio play is just as important. It is so much more than just hearing yourself on the radio and having your buddies call you to up to ring your praises. An album that is getting airplay is a sales tool, a calling card and a legitimization of the artist.
LISTNUM 95 \l 14992 With airplay, an artist can get more gigs that pay better. They can sell more CDs at those gigs. They can send their disk to record companies and expect some to actually listen to it. If they're getting airplay, they must be for real.
LISTNUM 95 \l 14993 Other radio stations in other cities are far more likely to pick up a single if it's getting airplay somewhere else, and the list goes on. I'll stop there, but if ‑‑ it's important to point out the importance of airplay as well as the recording.
LISTNUM 95 \l 14994 Something very cool that happened during the project, that I wasn't expecting, was the fact that most of the artists spent more than their $10,000. Some doubled it. This is significant because it says that they were willing not just to use up the free money and get the disk done, but take the opportunity to make the best record they could, which was part of the main goal of the project.
LISTNUM 95 \l 14995 That, to me, shows the true success of the project; to help artists that were ready and prepared record the best record that they could. This goes without exception through the list of artists, from first‑time recording artists to seasoned veterans. It was amazing.
LISTNUM 95 \l 14996 I personally have never seen anything generate so much excitement in the Saskatchewan music industry ‑‑ the supplies to artists that received funding, artists that applies ‑‑ applied and didn't, and non‑musicians alike.
LISTNUM 95 \l 14997 Project 10K20 has increased the output of professional album releases in the province this year by probably 50 percent, just single‑handedly from the project. Project 10K20 ‑‑ I read that line. And this all comes just in time for the Junos next summer too. The Juno announcement a few weeks ago in Saskatoon talked about the new ground‑swell of interest in Saskatchewan on a national level and something like 10K20, and the continuation of it, is an immeasurable tool for the development of current and next generation Saskatchewan artists.
LISTNUM 95 \l 14998 The question I hear most often is are they going to do this again next year. My understanding is that they will continue the program, but the numbers of artists funded will not ‑‑ has not yet been decided. This is not an unexpected question, but I think it's ‑‑ it has more importance than you initially think.
LISTNUM 95 \l 14999 During this one year ‑‑ or doing this one year will give Saskatchewan a burst of new albums to show the country at the Junos, as well as a substantial increase in artists' confidence to go beyond gigs and touring and take their music to the rest of the world.
LISTNUM 95 \l 15000 With today's technology, that really isn't just a sappy thought; it's a fact. However, doing something like 10K20 on an ongoing basis is a sustainable funding base to develop Saskatchewan talent for the future. I'm trying not to sound like a romance novel here, but it's true. Every ‑‑ even if five or ten artists were funded each year, it would be an opportunity for artists to focus their assets on making a better album than they could otherwise hope for. And with airplay on a nationally recognized radio station, artists have a legitimate calling card to open doors that otherwise might not open.
LISTNUM 95 \l 15001 The Saskatchewan Government is currently bringing together music industry people to look at ways of helping the industry grow and prosper both within and outside of the province. I think having Project 10K20 continuing on a regular basis would be a big step toward that goal happening.
LISTNUM 95 \l 15002 Thank you for your time.
LISTNUM 95 \l 15003 THE CHAIRPERSON: Commissioner Cugini has a few questions for you.
LISTNUM 95 \l 15004 COMMISSIONER CUGINI: Well, maybe just one, depending on your answer. Thank you for being here this afternoon. While I can agree that 10K20 is a laudable project for the artists that it has benefited and will continue to benefit, is it not advantageous to have as many radio outlets as possible in a market so that those CDs can get more airplay?
LISTNUM 95 \l 15005 MR. MECKELBORG: The radio outlets, I'm ‑‑ I'm not ‑‑ I suppose that's a ‑‑ that is a legitimate point, but without the albums in the first place and without the albums of a quality that a radio will play, it's kind of a secondary point. The albums first need to be there.
LISTNUM 95 \l 15006 And the fact that 10K20 is enough money for an album to record an album ‑‑ sorry, for an artist to record an album that is nationally competitive ‑‑ like, you can set it on the radio right next to the top ten, and you should be able to have a product that's competitive with that. I think that's ‑‑ getting the album first is more of a priority. And then on top of that, Rawlco is very supportive of these projects. I've ‑‑ I haven't heard this many local bands on any other station in ‑‑ that I've heard of.
LISTNUM 95 \l 15007 COMMISSIONER CUGINI: Are the artists that are supported by this project, are they restricted to any one genre of music?
LISTNUM 95 \l 15008 MR. MECKELBORG: No, it's ‑‑
LISTNUM 95 \l 15009 COMMISSIONER CUGINI: So it spans across all genres?
LISTNUM 95 \l 15010 MR. MECKELBORG: Yeah, all cultural ‑‑ every ‑‑ everything from hip hop artists to rock and roll artists to country to pretty much across all genres.
LISTNUM 95 \l 15011 COMMISSIONER CUGINI: Any Aboriginal artists?
LISTNUM 95 \l 15012 MR. MECKELBORG: Yeah, there was a ‑‑ there's an Aboriginal hip hop artist, an Aboriginal country artist, and a Metis pop duo.
LISTNUM 95 \l 15013 COMMISSIONER CUGINI: Thank you. Thank you very much.
LISTNUM 95 \l 15014 MR. MECKELBORG: Yeah, thank you.
LISTNUM 95 \l 15015 THE CHAIRPERSON: Thank you, Mr. ‑‑ oh, Vice‑Chair Arpin...?
LISTNUM 95 \l 15016 COMMISSIONER ARPIN: To your knowledge, do the ‑‑ has these artists and their albums been played by other radio stations than Rawlco Radio stations?
LISTNUM 95 \l 15017 MR. MECKELBORG: I'm not aware of ‑‑ at this point, I don't know.
LISTNUM 95 \l 15018 COMMISSIONER ARPIN: Now, you ‑‑ we have two artists here today. To their knowledge, has your CD been played elsewhere than on a Rawlco Radio station?
LISTNUM 95 \l 15019 MS FONTAINE: Well, for me personally, I just handed in my masters three weeks ago, and they're just being added to the Rawlco rotation currently as we speak. But it's up to the artist to market their material to other radio stations. Whether or not the other artists have taken that step, I'm not aware of that yet.
LISTNUM 95 \l 15020 COMMISSIONER ARPIN: Have you?
LISTNUM 95 \l 15021 MS MAYER: I've been on the Rawlco Radio station since I was 11, and I haven't been on any other. Rawlco has been very supportive through that and ‑‑ yeah, so ‑‑
LISTNUM 95 \l 15022 COMMISSIONER ARPIN: Thank you.
LISTNUM 95 \l 15023 THE CHAIRPERSON: Thank you, Mr. Meckelborg and ‑‑ I'm sorry, I forget who ‑‑
LISTNUM 95 \l 15024 THE SECRETARY: May I ask the two ladies to identify themselves so you see your name on the transcript?
LISTNUM 95 \l 15025 MS FONTAINE: My name is Kim Fontaine.
LISTNUM 95 \l 15026 THE CHAIRPERSON: Right.
LISTNUM 95 \l 15027 MS MAYER: My name is Morgan Mayer.
LISTNUM 95 \l 15028 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 15029 Madam Secretary...?
LISTNUM 95 \l 15030 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 15031 I would now like to call on the next four appearing interveners to appear as a panel as they are in support of Standard Radio: MapleMusic & Open Road Recordings, The Good Brothers, The Poverty Plainsmen, and Birdsong Communications. With respect to Birdsong Communications, they are not listed on the agenda. That was inadvertently missed.
‑‑‑ Pause
LISTNUM 95 \l 15032 THE SECRETARY: We'll start with MapleMusic and Open Road Recordings. If you could identify yourself before you speak? And you will each have ten minutes for your presentation.
LISTNUM 95 \l 15033 Go ahead.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15034 MR. KITCHENER: Good afternoon.
LISTNUM 95 \l 15035 My name is Ron Kitchener, and I own RGK Entertainment Group, an artist management company based in Toronto and Nashville. We represent Jason McCoy, Core Blund(ph), Doc Walker, The Road Hammers, and Johnny Reid. I also operate Canada's independent label of the year, three years running, Open Road Recordings partnered with MapleMusic.
LISTNUM 95 \l 15036 Country music radio remains an ‑‑ our number one priority in terms of promotion and opportunity when developing careers, launching CDs and marketing live concerts to the public. The lack of an FM station in Regina is a significant missing link in a city of such strong country music support.
LISTNUM 95 \l 15037 While Regina ranks as one of our top and most important country markets in Canada, I believe the market could be so much stronger and significant to much of the prairie culture here in Saskatchewan. The market has everything the format and industry require except an FM station satisfying the demand on an overflowing country music fan base.
LISTNUM 95 \l 15038 Regina has always been ideal for touring with numerous options that work for all levels of artists, from The Pump Roadhouse that has been supportive of new acts, to a thousand‑seat general admission facility, a 2,000‑plus‑seat art centre, and the Brandt Centre, a larger arena, not to mention the Regina Casino that has regularly hosted concerts and provided support spots to many developing local artists in front of national headliners.
LISTNUM 95 \l 15039 The annual country music festival in Craven, just down the road, is one of the top country music festivals in Canada, and the attendance numbers and the magnitude of talent placed on those stages over that weekend in July truly justify this area as a power house for the format.
LISTNUM 95 \l 15040 And I can speak for ‑‑ I feel I can speak for the entire country music industry to say how excited we are that Regina will host the 2007 Country Music Awards next September.
LISTNUM 95 \l 15041 Standard Broadcasting is an accomplished team with a strong national reputation and have been nothing but supportive to the development of my artists and country music in general. The support for all formats and commitments to projects that benefit new and developing artists are very welcome and applauded by the entire music business.
LISTNUM 95 \l 15042 The annual radio awards during Canadian Music Week are one example. Each year, whether through performance, presenting or an award winning, we have had an artist benefit from this event; Doc Walker in 2004, Johnny Reid in 2005, The Road Hammers earlier this year.
LISTNUM 95 \l 15043 Standard and Sound Source recently recorded a full one‑hour radio special around the release of Doc Walker's new album providing a professionally edited show that documents the rise of one of Canada's top bands and showcases material from their new album. This show will air in over 20 markets across the country in ‑‑ this weekend in advance of that album coming out next week.
LISTNUM 95 \l 15044 Nationally, we have been able to create significant promotions with the Standard stations that increase our profile and provide valuable time exclusively for our artists. For example, Standard's BX93 in London, Ontario have hosted our clients on a few occasions with basement concerts, where an artist will perform new songs for a small intimate audience with a show broadcast live at 6 p.m. prime time. We have had success with label and management clients Jason McCoy, The Wilkinsons and Jake Matthews.
LISTNUM 95 \l 15045 Another leap‑of‑faith effort was creating a sound check party with QX104 in Winnipeg for Johnny Reid a couple years ago when he truly was in the early stages of development. A chunk of promotion time was dedicated to bringing an audience down to the club for an exclusive event normally not accessible to the public, so it created a must see event.
LISTNUM 95 \l 15046 The benefit to Johnny in that market was truly important for his profile when he returned there six months later as part of a Brad Paisely/Terri Clark tour that played to 10,000 people at the MTS Centre.
LISTNUM 95 \l 15047 We are investing significant time and money into our artists' recordings in order to make them world class, and the FM signal allow us to sound that way ‑‑ sound the way the music should as it competes with all other music formats.
LISTNUM 95 \l 15048 Country music has a very loyal fan base and continues to have a growing younger audience, the new audience that is developing as the music changes and is represented in the new country format.
LISTNUM 95 \l 15049 Pop and rock fans are finding personal satisfaction with the sound of the country artists today and more so than they've received in the AC and the hot AC formats, and are testing and staying with new country.
LISTNUM 95 \l 15050 Standard's plan for 40 percent CanCon alone is a strong statement about how our format and the artists have grown and can provide world‑class music. However, the most important item of the application is the announcement of playing the Canadian power currents as much as the national ones.
LISTNUM 95 \l 15051 By having it the other way, as many Canadian stations have it, we are denying the opportunity for Canadian artists to get played and therefore chart the same as the internationals. The lack of Canadian artists topping our national charts has been unfortunate, and Standard's even‑play proposal will assist bringing us one step closer to fair and even play between Canadian and international artists on a national level.
LISTNUM 95 \l 15052 Standard's community focused programming and assistance towards the development of Saskatchewan artists, and therefore the industry, is impressive. And I believe the rewards of that support will be shown sooner than later on a national stage.
LISTNUM 95 \l 15053 With so many ‑‑ with so little music available on the AM dials, it is not uncommon for the majority of the public to search elsewhere for the music they want, and unfortunately that is not talk‑dominated AM dial ‑‑ dials.
LISTNUM 95 \l 15054 In a market overflowing with loyal and new country music fans, an FM licence is the last remaining piece required here in Regina and paramount to continued growth in the format.
LISTNUM 95 \l 15055 Thank you for your time.
LISTNUM 95 \l 15056 THE SECRETARY: We will continue with The Good Brothers. If you could identify yourself? And you'll have ten minutes.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15057 MR. GOOD: My name is Bruce Good. I'm the leader of a group called The Good Brothers. We have recorded 15 albums and we're fortunate enough to have received eight Juno awards for country group of the year over ‑‑ we've sold in excess of a quarter of a million records, and in '04 we were inducted into the Canadian Country Music Hall of Fame.
LISTNUM 95 \l 15058 I guess I'm here for a few reasons. One is certainly gratitude to Standard Broadcasting who are partly responsible for the success that we enjoyed over the years, due to the fact that our outlawed brand of country music was not necessarily embraced by AM radio. However, FM radio was there for us then.
LISTNUM 95 \l 15059 Now, it seems my sons have picked up the ball, carrying on the family tradition in a group called The Sadies. In fact The Sadies performed here in Regina just last week and they headlined the Regina Folk Festival last summer.
LISTNUM 95 \l 15060 They run into the same problem, I suppose, that their father and their uncles did in that their brand of music isn't exactly the type that you'll here on AM radio. So their hope is FM radio. As they say, I guess, the apple doesn't fall far from the tree.
LISTNUM 95 \l 15061 But as a performer who has toured for more than 30 years, it's always been apparent that Regina has a large fan base and ‑‑ for country music. We stop here on every tour, whether it's Buffalo Days or Craven or to perform at The Pump Roadhouse. The Pump Roadhouse of course is the longest running country music establishment in Canada, and it's right here in this city. Craven of course which draws tens of thousands of country fans, which is only a few kilometres north of the city, is up and running again and has been for the last couple of years, I understand.
LISTNUM 95 \l 15062 I guess the longevity of country music is proven by the fact these festivals and this ‑‑ the club that has been here so long are still running and still existing today. In 2007 Regina will host the CCMA or Canadian Country Music Awards confirming this province and this city is a leader in Canadian country culture.
LISTNUM 95 \l 15063 Regina is like few cities in this great country of ours with its uptown rural atmosphere, a place where the country truly melds with the city. We appreciate what CKRM has done for country music in the past and know that, as a pioneer in radio, they will continue to have a strong voice in Regina. And I believe personally ‑‑ I believe that an FM station will actually help strengthen the already existing country station by introducing a new and younger audience to country music.
LISTNUM 95 \l 15064 We can continue, I suppose, with the status quo or the same old/same sold, but I'd like to see this city enjoy the excitement of an FM country station and think Standard Broadcasting is the one to deliver it and strengthen the future of Canadian country music.
LISTNUM 95 \l 15065 Thank you very much.
LISTNUM 95 \l 15066 THE SECRETARY: We'll continue with The Poverty Plainsmen.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15067 MR. SMITH: Hi. My name is Mark Smith, and I'm a lead singer and founder of the group The Poverty Plainsmen. We are going to be celebrating our 20th year in the music business coming up here in 1997. We currently are Canada's independent group of the year. We won that year ‑‑ award last year in St. John. We've been the country music ‑‑ Saskatchewan Country Music Association country band of the year seven out of the last ten years.
LISTNUM 95 \l 15068 And I found, coming to Regina ‑‑ I guess I'm one of the odd ones. I moved here in 1992 from Manitoba, and Regina's just been nothing but good to me. I guess I wear two hats. Not only did we really have a successful, and continue to have a successful music, career as The Poverty Plainsmen, I've managed to buy The Pump Roadhouse in 1997. We've managed to build a new brew pub and eatery and liquor store on the northwest end of Regina. We just currently bought a brand new nightclub called The Drink Nightclub on Dewdney Avenue. We're just sort of getting started at that one and we're going to be building a new casual fine dining steakhouse in Regina here as well on the northwest end.
LISTNUM 95 \l 15069 And although I have a great relationship with CKRM and the Harvard Group ‑‑ I've spent lots of money with those guys, and also with Rawlco as well. And I just find that there's been a big void, however, in this city for FM country. Ever since the late '90s when Country 92 went off the air and went to a lite format, I personally didn't like it.
LISTNUM 95 \l 15070 I find that if we're trying to promote a country show in this city, it's very difficult. I've ‑‑ I find that Country 100 in Moose Jaw is a great radio station as well. We do lots of work with them, but it's not a Regina flavour. It's a Moose Jaw flavour. And I think a city of 200,000 could use a good FM country station. I feel strongly about that.
LISTNUM 95 \l 15071 The Standard Radio Group has brought a very good plan to the table. I think they're going to be giving lots back to the community, you know, especially any local talent. They're going to be based here in Regina which is very, very important. And from an artist's point of view, I think it's a plus, and also from an advertisory ‑‑ advertiser point of view, I think it's a big plus as well. And I think that's about all I have to say.
LISTNUM 95 \l 15072 Thank you.
LISTNUM 95 \l 15073 THE SECRETARY: Thank you. And we'll continue with Birdsong Communication.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15074 MR. LIST: Thank you very much, Madam Chair and Commissioners for this opportunity to support or to talk in support of the Standard Radio application.
LISTNUM 95 \l 15075 Just imagine my presentation with a steel guitar playing in the background because I think it will really add to this. I know Bruce was supposed to do that, but Air Canada lost it or something.
LISTNUM 95 \l 15076 I wear many hats here today. My name is Don List of course. I'm the president of Birdsong Communications. I'm an owner of the company that has celebrated its 28th anniversary just this last week. I've been active in the community in Regina. As a matter of fact I grew up about three blocks from here, so you might call me, you know, committed to this community.
LISTNUM 95 \l 15077 I have been involved in the cultural industries. I am a motion picture producer. I'm also very actively involved with Aboriginal youth theatre, Night‑Wind Theatre. I am also an active member in ‑‑ or as a board member of the Conexus Art Centre. I have been involved with motion picture development, policy development and I've seen this community grow. I've seen it prosper.
LISTNUM 95 \l 15078 My presentation ‑‑ and I believe you have my intervention. I would like to focus on three points, and the first one is I have to commend you on your comments about showing that the ‑‑ well, I've got an empty glass here, but I really do believe that the community ‑‑ the economy in Saskatchewan is growing. It's vibrant, and thank you for talking about it showing that our glass is full.
LISTNUM 95 \l 15079 I've gone through the ups and downs of this community and I see a lot of young people in this community. I'm a sessional lecturer at the university, First Nations University. I was involved in the Indian Native Communications Program and I understand that Standard Broadcasting, the Canadian Talent Development Fund is focusing on that.
LISTNUM 95 \l 15080 Anyways, so when this opportunity came to speak for this, I see that, yes, Saskatchewan and particularly Regina could use another company, another broadcaster. I believe that as a vibrant community, the economics that we have right now will support that. I see it. I love the opportunity of getting a new office, new people coming in here, possibly a few new Rider fans. And I think that it's the attitude that we have to have, that I didn't move to Alberta. A lot of people didn't. And I think that when you have a chance of bringing in a new company ‑‑ I believe this would be Standard's first time in this province, so I have to look at that and say that's very, very positive. So they would be a welcome addition to our community.
LISTNUM 95 \l 15081 One of the ‑‑ the second point I support wholeheartedly with this application is the Canadian Talent Development initiative. I have a 12‑year history with a program development fund, the CTV Saskatchewan Program Development Fund, which I'm a board of trustee. And you might be familiar with it at the CRTC.
LISTNUM 95 \l 15082 I have seen firsthand what money put into the hands of young writers, young technicians, film makers ‑‑ and now 12 years later, they aren't so young anymore, but they are working in the industry and those little bit of money, which grew over the years and what it has done. I see an initiative like Standard Radio coming in with their commitment to the developing young people is wonderful, and I can only say I support it wholeheartedly.
LISTNUM 95 \l 15083 The third point which I'd like to talk about is the ‑‑ my particular interest in the initiative. Again, it's maybe tying it back to the Canadian Talent Development with the First Nations University of Canada. I was involved with the formation of INCA(ph) in '87, '88, '89 and I am now enjoying the fruits of the labour of seeing wonderful people, young people coming up through the ranks, Aboriginal ancestry, and they are working in the industry.
LISTNUM 95 \l 15084 The initiative to put in programming, bursaries and getting these people into the work field ‑‑ or workforce, again is quite commendable. If you take note of my comment, I said although the ‑‑ I support the fund and I believe it might be small, but it grows. I think yesterday I found out that in three weeks it did grow already. Much to your chagrin, I believe.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15085 MR. LIST: But it's a great initiative. And again, my history with the development fund and seeing what wonderful things it does, I just believe that, you know, an initiative like this will have ‑‑ should be supported.
LISTNUM 95 \l 15086 I'm willing and able to answer any questions based on this. And if there's difficult questions, I'll just toss them over to Bruce. Thank you very much for this opportunity.
LISTNUM 95 \l 15087 THE CHAIRPERSON: Thank you all, gentlemen. Commissioner Cugini is first up to bat.
LISTNUM 95 \l 15088 COMMISSIONER CUGINI: Good afternoon and welcome. I just ‑‑ going to the type of music that is applied on an AM country station versus an FM country station, and I do admit I'm not as well versed in country music as you gentlemen are obviously. But, Mr. Good, you said that your brand of country music is an outlaw brand and isn't typically played on AM. First of all, what does that mean?
LISTNUM 95 \l 15089 And secondly, can you tell me in general terms what are the differences between a type of country music that's played on an AM station and that which is played on an FM station?
LISTNUM 95 \l 15090 MR. GOOD: Certainly. I can speak for myself when it comes to this of course. Back in that day which was mid '70s through to the late '80s, it was really referred to as ‑‑ before new country, and it was really considered country and western, which was the old brand. That was the type of music that was played on AM country stations.
LISTNUM 95 \l 15091 Our particular style of music was mixed with a little bit of rock and roll. It was with the delivery, the instrumentation, for example, was different than the regular steel guitars that Don would like to hear. It just had a different sound that was hard to ‑‑ as I used to say, it was as though we were between a rock and a country place.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15092 MR. GOOD: It was really hard to get placed, and that's where FM, to our benefit, came to our rescue, you might say. And in particular in the Toronto area, it was Standard Broadcasting. And I guess that's the only way I can define it at that time.
LISTNUM 95 \l 15093 Today, compared to what we played back in those days, our music was actually very tame. Today it has taken on a brand new sound, a brand new look, and it's now termed as new country, which now is an old term anyway.
LISTNUM 95 \l 15094 COMMISSIONER CUGINI: And what are the difficulties your son is facing?
LISTNUM 95 \l 15095 MR. GOOD: Their type of music is so hard to define, so hard to pigeon‑hole. They play ‑‑ they've played regularly and charted on the college ‑‑ the campus radios across the land. They're played on CBC. They're played on FM radio ‑‑ not a lot, but they are.
LISTNUM 95 \l 15096 It's really their ‑‑ at this point in their careers, in their early careers it's the only play they receive at this time. And their music can be defined as ‑‑ it has been called alternative country, and it's a type of music that is being more and more accepted, I believe, first of all in my opinion, on FM radio before it ever enters into the AM stream.
LISTNUM 95 \l 15097 COMMISSIONER CUGINI: Thank you. Thank you very much, Madam Chair.
LISTNUM 95 \l 15098 THE CHAIRPERSON: And the second batter is Commissioner Pennefather.
LISTNUM 95 \l 15099 COMMISSIONER PENNEFATHER: Thank you, Madam Chair.
LISTNUM 95 \l 15100 You were here a moment with the previous intervener, I think, Mr. List, in the room. And my colleague, Commissioner Cugini, actually asked about what you say in your point 2, the ‑‑ adding to the healthy, competitive environment. Can you comment a little more on that ‑‑ your point about the importance of a healthy, competitive environment to artists' music in this community and what you meant by that comment?
LISTNUM 95 \l 15101 MR. LIST: Here I get myself into trouble. As I say, I was ‑‑ I'm in small business. May father was in small business. My grandfather was in small business, and together I ‑‑ you know, that's almost 60 years.
LISTNUM 95 \l 15102 I started out here as a young pup, a graduate of the University of Regina. And film, no ‑‑ everyone said there's no chance, no possibility that you could, you know, make a go of it in the film industry here. Had I listened to some of those people in those communities in the broadcasting industry ‑‑ and I'm talking motion picture and TV ‑‑ they ‑‑ the best advice was go to Los Angeles or to Toronto. We did that. All of us kind of did our stints, but the attitude seemed to be that there wasn't a big enough pie.
LISTNUM 95 \l 15103 And, you know, right now you look at Regina, and if ‑‑ we don't say that anymore, but we have a sound stage. We have a very, very vibrant Corner Gas station.
LISTNUM 95 \l 15104 THE CHAIRPERSON: Please don't exaggerate about the health of that industry, please, Mr. List.
LISTNUM 95 \l 15105 MR. LIST: Okay.
LISTNUM 95 \l 15106 THE CHAIRPERSON: I'm afraid my colleagues might think that we're doing very well here in Saskatchewan.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15107 UNIDENTIFIED SPEAKER: We'll explain later.
LISTNUM 95 \l 15108 COMMISSIONER WILLIAMS: It's a Saskatchewan thing I'm starting to find.
LISTNUM 95 \l 15109 MR. LIST: Your home town is coming to ‑‑ but, no, I'd said that there's room. I mean ‑‑ and again, this is very personal because, I mean, at one point people said, "Well, the pie is too small", and I think that we've proven it in our cultural industry and I see the talent that comes through. And we can't sustain, you know, jobs for all the people that are coming through our schools, the university, the theatre department ‑‑ an excellent program. So they will move on, and that's something that we are quite proud of in Saskatchewan is being a great people exporter. And I ‑‑ I'm proud of that, but I want to make sure that it stays here too.
LISTNUM 95 \l 15110 So I think it's the competitive, positive attitude has to say, yeah, I'm willing to compete. I'm willing to take on that challenge, and I think that's what I meant by the healthy environment because I do see that there is a lot of things happening here, very positively. My company is growing. We have a full staff, you know, and we just celebrated 28 years so ‑‑
LISTNUM 95 \l 15111 COMMISSIONER PENNEFATHER: I understand. Thank you. Thank you, Madam Chair. And just to ‑‑ so you know, Madam Chair is a very strong defender of monies and support to Saskatchewan art and Saskatchewan film and television and all the rest of it so ‑‑
LISTNUM 95 \l 15112 MR. LIST: And we thank ‑‑
LISTNUM 95 \l 15113 COMMISSIONER PENNEFATHER: ‑‑ so when the chart went up about Saskatchewan as special, we know.
LISTNUM 95 \l 15114 THE CHAIRPERSON: And ‑‑
LISTNUM 95 \l 15115 COMMISSIONER PENNEFATHER: We've been told.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15116 THE CHAIRPERSON: And unfortunately I can't ‑‑ have very little to complain about these days, so I don't want to make a big deal about it. Vice‑Chair Arpin...?
LISTNUM 95 \l 15117 COMMISSIONER ARPIN: Thank you, Madam Chair.
LISTNUM 95 \l 15118 Which type of country format will you qualify the Moose Jaw radio station? Is it new country or is it ‑‑
LISTNUM 95 \l 15119 MR. SMITH: I would say it's more new country.
LISTNUM 95 \l 15120 COMMISSIONER ARPIN: It's more new country?
LISTNUM 95 \l 15121 MR. SMITH: Yeah.
LISTNUM 95 \l 15122 COMMISSIONER ARPIN: We heard earlier today that they were delivering a crystal clear ‑‑ that's where ‑‑ the words that were used, "Crystal clear signal over Regina". Do you have any ‑‑ so both of you are reside ‑‑ are residents of Regina. Do you have any comment on that quality of that crystal clear signal?
LISTNUM 95 \l 15123 MR. LIST: Well, I do occasionally listen to Moose Jaw, the country station there, and that's where I got the first ‑‑ heard the first term. I didn't know what it was. I thought it was an advertising thing because, you know, I ‑‑ it does ‑‑ it sounds good. I know ‑‑ like, technically is that ‑‑ if that's a question, yeah, it's ‑‑ you know, I mean I would not expect anything but a good sounding signal, if that's the ‑‑
LISTNUM 95 \l 15124 COMMISSIONER ARPIN: Well, the reason I'm asking the question ‑‑ well, it seems to me that Moose Jaw is about 50 miles from Regina; would you say that ‑‑ or 50 kilometres?
LISTNUM 95 \l 15125 MR. LIST: Oh, yeah. Yeah, it's 40 minutes ‑‑
LISTNUM 95 \l 15126 COMMISSIONER ARPIN: Forty minutes ‑‑
LISTNUM 95 \l 15127 MR. LIST: ‑‑ from Regina.
LISTNUM 95 \l 15128 COMMISSIONER ARPIN: ‑‑ 40 minutes' drive so ‑‑
LISTNUM 95 \l 15129 MR. LIST: With your radar detector on ‑‑
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15130 COMMISSIONER ARPIN: With radar, okay.
LISTNUM 95 \l 15131 MR. LIST: Yeah, I'm not sure where that's coming from. Sorry, sir, I ‑‑ do you know?
LISTNUM 95 \l 15132 COMMISSIONER ARPIN: Well, it means that if you have a crystal clear signal from Moose Jaw, then the country format is already available in Regina in some sort.
LISTNUM 95 \l 15133 MR. SMITH: I think that is correct. There's ‑‑ there is a country format here, but like I said earlier, it's not of a Regina flavour. It's more of a Moose Jaw and southern Saskatchewan flavour. And they do say that on the radio station all the time, and I know whenever ‑‑ myself, when you want to do business with that radio station, they're 50 kilometres or 60 kilometres ‑‑
LISTNUM 95 \l 15134 COMMISSIONER ARPIN: Yeah, sure.
LISTNUM 95 \l 15135 MR. SMITH: ‑‑ out of the city, so it makes it hard.
LISTNUM 95 \l 15136 MR. GOOD: If I may? I'm not from the area, but to add to that, it would seem to me that not being from Regina ‑‑ and now I'm getting off the music a little bit, but it would mean that any events, any local events, or any news ‑‑ or whatever the case may be ‑‑ I don't think they have traffic in Moose Jaw but ‑‑
LISTNUM 95 \l 15137 COMMISSIONER ARPIN: Do they have traffic in Regina?
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15138 MR. GOOD: But it just would seem to me that ‑‑
LISTNUM 95 \l 15139 COMMISSIONER ARPIN: Particularly from a guy coming from Toronto.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15140 MR. GOOD: It just seems to me it's a matter of what is really ours, and I think this is a ‑‑ this would be a station that Regina could proud ‑‑ proudly call theirs because it is. It would be about Regina. It wouldn't be about Moose Jaw.
LISTNUM 95 \l 15141 COMMISSIONER ARPIN: Thank you, Madam Chair.
LISTNUM 95 \l 15142 THE CHAIRPERSON: Thank you, gentlemen, very much. Thank you. Mr. List, is there anything you don't do?
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15143 MR. LIST: I'll leave my resume here but ‑‑
LISTNUM 95 \l 15144 MR. GOOD: He doesn't play steel guitar.
‑‑‑ Laughter / Rires
‑‑‑ Pause
LISTNUM 95 \l 15145 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 15146 Before we proceed to the next panel of support interveners, I'd just like to indicate for the record that one of the support interveners for Touch Canada had indicated on his intervention the Saskatoon application number, when in fact it was for Regina. So I will be calling the intervener for ‑‑ with the next panel.
LISTNUM 95 \l 15147 Therefore, if the following five supporting interveners for Touch would come forward? Jennifer Jade Kerr, Zbitnew and Associates, Lighthouse To All Nations, Shelan Schnell and the Regina Evangelical Ministerial Association.
‑‑‑ Pause
LISTNUM 95 \l 15148 THE SECRETARY: We will start with Ms Jennifer Jade Kerr. You will have ten minutes for your presentation. Please go ahead.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15149 MS KERR: Thank you.
LISTNUM 95 \l 15150 Good afternoon. You'll have to forgive my nerves, but it's very odd being up here with ‑‑ in front of the microphone without my guitar. Hopefully I won't have to break into song to finish my presentation.
LISTNUM 95 \l 15151 Regardless, I feel very honoured to have the opportunity to speak to you about something that makes me very excited ‑‑ the possibility of a Christian radio station here in Regina.
LISTNUM 95 \l 15152 There are many reasons why I would love to see this station become reality. I would like to connect these reasons to each of my three jobs. Apparently a theme up here is multi‑tasking.
LISTNUM 95 \l 15153 My day job is as registrar of Western Christian College. I work with the college students, helping them organize their academic programs, encouraging them, and being an advocate for their individual needs.
LISTNUM 95 \l 15154 Our students are very diverse. First year students, to single moms, to fully employed adults looking to continue their education. Many of them are leading very challenging lives, and are in constant need of positivity and encouragement. Any direction from which that comes is much appreciated.
LISTNUM 95 \l 15155 My students are very excited about the Touch Broadcasting application. They keep asking how it is going and say how great it would be if this station were to come through.
LISTNUM 95 \l 15156 Many of our dorm students from out of town miss the Christian stations available in their home towns and would love to have one here. Western Christian also has a high school with over 100 grade 9 to 12 students from many walks of life. A dream of mine is to watch a lunch hour sports game some day, hearing Regina's Christian radio station blaring through the sound system and knowing that we are being consistent with the messages of positivity, self‑respect, love and respect for others that we are teaching the students in their classrooms.
LISTNUM 95 \l 15157 President Kevin Vance of Western Christian College & High School agrees with me. "It would be a blessing to our students and staff to have a Christian music station in this city."
LISTNUM 95 \l 15158 In addition to being a college and high school, Western Christian has on its campus the second largest theatre seating auditorium in Regina. Early this fall, and last fall as well, we hosted the Great Canadian ‑‑ excuse me, the Great White North Supertour, a Christian music tour billing some of today's most popular Canadian Christian artists like Amanda Faulk, Nifty, Thousand Foot Krutch, Manafest, Gaetz Avenue, Stereotrap ‑‑ woohoo, Saskatchewan boys ‑‑ and many more. This event has sold nearly to capacity both years, with around one ‑‑ with ‑‑ excuse me, with around 1,000 youth and young adults packing our 1,013‑seat auditorium to see their favourite bands.
LISTNUM 95 \l 15159 This is a group of people that is energetically passionate about their music. And I do mean this truly, the auditorium floor moves when these kids start jumping. And there's not a station in this city devoted to their kind of music. They find their favourite artists through MySpace and iTunes, not through Regina radio.
LISTNUM 95 \l 15160 Most of them, like me, because of this non‑radio music interaction receive little, if any, local news or talk content on a daily basis and are often too busy or too blase to stop and intentionally watch news or local programming. If that is not a wide‑open target just waiting to be addressed, I'm not sure what it.
LISTNUM 95 \l 15161 I am also a youth worker in this city at my church. I work with the 12 to 18 age demographic and I love introducing them to music that I enjoy and trust. I am a self‑proclaimed music junky and I know a lot of my kids are too, and I am very concerned with the damaging messages they pick up from the music they listen to every day.
LISTNUM 95 \l 15162 I try to teach them respect for themselves and others, and they listen to music that degrades women and glorifies drug use and violence. I try to teach them physical modesty, and they are bombarded by images of barely clothed women flaunting their sexuality. I try to teach them about being accountable and trustworthy in relationships, and they're listening to songs about the joys of promiscuity and how to lie and get away with it.
LISTNUM 95 \l 15163 I'm 25 years old, and I don't approve of those messages going into my head, let alone the heads of my kids. I would love for them to have instant access to music that speaks of peace, joy, solid values, confidence, relationships of integrity, and how awesome it is to be loved just the way they are.
LISTNUM 95 \l 15164 That's what a Christian format radio station in Regina would be; instant access to the positive messages that I desire from my youth and others like them to hear, understand and live out.
LISTNUM 95 \l 15165 As a youth worker in this city, I participate in a group called the Regina Youth Pastors Ministerial. The group, representing over 25 churches of various denominations, meets once a month to discuss issues that are youth are facing, joint program initiatives, and also just to encourage each other in our work.
LISTNUM 95 \l 15166 The Regina youth pastors are excited about the possibility of this station in Regina. As people that spend their professional lives working with youth and caring deeply about their total wellbeing, it is very exciting and encouraging to have their support behind this initiative.
LISTNUM 95 \l 15167 My third job; one of the greatest joys of my life is my music. I have been writing songs for 13 years and performing steadily for the last 6. The artistic community of Regina has provided me with many opportunities and mentors along my musical journey. I have performed at Casino Regina, the Craven Country Jamboree, The Pump Roadhouse, on CBC Radio One, Telemiracle, and various other events and venues, in addition to touring nationally with a four‑piece group called Saltwater.
LISTNUM 95 \l 15168 I am a member of both SaskMusic, formerly the Saskatchewan Recording Industry Association, and the Saskatchewan Country Music Association where I fall within the gospel, adult and songwriter categories. I have been self‑marketing a demo CD called Foretaste, which I recorded in 2003 and am currently recording a full‑length project entitled, "Life In General". It includes the best and most requested material I have written over the last seven years covering topics such as being single, a phone conversation with a best friend, my faith, feeling loved, feeling unloved, and even my favourite old pair of shoes. It's my mom's favourite.
LISTNUM 95 \l 15169 Whether a song I write is explicitly about my faith or not, I write from the perspective of someone learning how to live a moral and confident life in a world that does not encourage that.
LISTNUM 95 \l 15170 When someone compliments me on a song I've written and says "That is so much like what I'm going through and your words encourage me to keep going", that is a really great gift. The give and take between artists and audience is a very powerful thing and I'm only beginning to understand its implications.
LISTNUM 95 \l 15171 I have performed at a lot of different venues and events and feel most in the zone as an artist when I am able to be honest and true to who I am, presenting the difficulties and joys that life can include when you are attempting to live with that level of personal transparency.
LISTNUM 95 \l 15172 A good friend told me once that you should always be HOT; honest, open, and transparent. And that has become a great guideline for me as a songwriter and performer.
LISTNUM 95 \l 15173 A Christian radio station would give me the exposure within a community I love and want to serve and encourage and would also allow me to express myself honestly as an artist. It would open doors to additional performances, increase record sales, and just the excitement that comes from moving my artistic career to another level. Also because of my broad writing and performing style and the topics they tend to cover, radio airplay on anything other than a Christian format station is admittedly going to be sparse.
LISTNUM 95 \l 15174 The Regina music community has given me so much, and I want to give back in the best way possible and I would love for the exposure for my new CD to start right here. And in order for me and other local artists to get consistent airplay in Regina and still be who we are, we need this station.
LISTNUM 95 \l 15175 I need to add one extra category to this presentation which is related to my interests as an artist but also speaks to my interest in music as a whole. As I said before, I'm a music junky. I listen to and love many genres of music. One thing I love about the Christian music format is that it is so broad, just like my own musical tastes.
LISTNUM 95 \l 15176 Within my own Christian music collection I have hard rock, pop, hip hop, punk, independent singer/songwriters, country, emo, worship, novelty/comedy, and kids' music, much of it Canadian as well. That is what a Touch Broadcasting station can offer Regina that no one else can ‑‑ variety. And not just within the market, but within the station's programming itself.
LISTNUM 95 \l 15177 Contemporary Christian music is fuelled by such a wealth of influences that coming out ‑‑ that the music coming out is incredibly diverse. That's what I want to hear on the radio and so do many of my friends and peers.
LISTNUM 95 \l 15178 Right now, although I listen to music through most of my waking hours, I rarely listen to Regina radio. A rotation of Christian CDs live in my car so that I can enjoy my favourite artists to and from work, and as I run around town with my youth.
LISTNUM 95 \l 15179 At work I turn into ‑‑ I tune into a Christian radio station over the Internet because there is nothing on Regina airways that holds my interest. There is no Regina station that I would call my station.
LISTNUM 95 \l 15180 If this application by Touch Broadcasting is accepted, Shine FM Regina would instantly be my station ‑‑ as a youth worker, as a young adult mentor, as an artist and as a music listener. And I know I'm not alone in that feeling.
LISTNUM 95 \l 15181 Again, I want to thank you for granting me the honour of presenting to you today. As you can tell from the number of letters sent in support of the Touch Broadcasting application, there are a lot of people who are passionately in support of this application and for many compelling reasons. We would love to have a station that we can call our own.
LISTNUM 95 \l 15182 Thank you.
LISTNUM 95 \l 15183 THE SECRETARY: Thank you.
LISTNUM 95 \l 15184 We'll proceed with Zbitnew and Associates. Have I pronounced it correctly? If you could introduce yourself before your presentation?
LISTNUM 95 \l 15185 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15186 MS ZBITNEW: Good afternoon, Madam Chair, CRTC Commissioners and staff. My name is Wallis Zbitnew. You said that very well. I always tell people, remember I'm a bit new.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15187 MS ZBITNEW: I'm a business woman in Regina in the area of real estate investments and I'm also past president of the Regina South Rotary Club. Other hats I wear are those of journalist, educator, certified self‑talk trainer, and motivational speaker.
LISTNUM 95 \l 15188 My interest in the realization of a Christian radio station in Regina connects with my educational and business interests as well as my dedication to rotary, which includes community service.
LISTNUM 95 \l 15189 The importance of ethics and honesty in the business world is at the top of my list. I avoid ‑‑ personally I avoid dealing with a person or a company if I find out they are lying about a product or a service or if they are not up front with their costs and quality of service they provide.
LISTNUM 95 \l 15190 Recently on the national news information about the prevalence of everyday lying was a shocking revelation to me. What messages are being programmed into the brains of people to make them think that lying is an acceptable form of communication? We need help.
LISTNUM 95 \l 15191 One step in the right direction would be providing an alternative radio station which speaking truth and fact to people of all ages. Certainly our mayor, His Worship Pat Fiacco, who is recently re‑elected to his third term in office by receiving 81 ‑‑ 84.1 percent of the vote is popular because we, the citizens of Regina, appreciate ‑‑ among other things ‑‑ his positive I Love Regina campaign, which is successful and ongoing.
LISTNUM 95 \l 15192 Similarly positive effects from an alternative Christian radio station would enhance the spirit of our mayor's I Love Regina campaign. Broadcasting positive music and messages through the airwaves by establishing a Christian radio station in Regina will work together for good for the morale of the citizens and community pride.
LISTNUM 95 \l 15193 As a thought doctor, I know the impact of both negative and positive sights, sounds, words and music on our minds. As a mother of three and a grandmother of two, I know the influence of the media on the minds and lives of my children. It is the responsibility of the community to provide alternatives for our people so they can make the right choices for successful living.
LISTNUM 95 \l 15194 Christian radio has not been available for them as a choice. Now is the time to go forward with a Christian radio station in Regina. When I visit my children in Vancouver, their car radio is set at Praise FM which comes out of Bellingham. My son, his wife and two children enjoy the music on Christian radio daily as they drive. They claim it promotes peace and harmony in their family.
LISTNUM 95 \l 15195 People are complex beings. In order to function fully and live a balanced life, we need to nurture every aspect of who we are, including the following capacities: Intellectual, emotional, physical, psychological and spiritual. Life tends to be out of balance when we neglect nurturing one or more of those five areas. Radio in Regina provides a good assortment of golden oldies, rock and country and western music, however it lacks balance.
LISTNUM 95 \l 15196 Current radio music does not satisfy the spiritual nourishment my soul desires. Other Christians agree, and several ‑‑ specifically Nina Braelean and Iris Williams ‑‑ took on the task of bringing in big named ‑‑ a big name Christian singer, Michael W. Smith, to the Conexus Art Centre. As well, Canadian gospel singers who have performed in Regina include Janelle, Steve Bell, Brian Doerkson, Mike Mallot, and Rory Allen. Regina residents enjoy bi‑annual inter‑denominational city‑wide praise musical events at the Simpson Auditorium, which is second in size only to the Conexus Art Centre.
LISTNUM 95 \l 15197 During my 30 years in Regina, there has never been such a proactive wave of bringing in gospel music as there is now. These client events are powerful indicators that Regina has an audience desiring uplifting Christian music that promotes the fruit of the Spirit which is love, joy, peace, long‑suffering, gentleness, goodness, faith and meekness. The need is clear; Regina is ripe for a gospel radio station.
LISTNUM 95 \l 15198 I would now like to share a few words regarding my involvement with Rotary. Rotary International is a service club with approximately 1.2 million members in more than 200 countries and geographical areas. As past president of the Regina South Rotary Club, I am familiar with implementing rotary's four‑way test in my business and personal life.
LISTNUM 95 \l 15199 It consists of 28 powerful and effective words which are: Of the things we think, say or do, number 1, is it the truth? Number 2, is it fair to all concerned? Number 3, will it build goodwill and better friendships? Number 4, will it be beneficial to all concerned? The implementation of something as simple but profound as a four‑way test contributes to the integrity Rotary has enjoyed for a hundred years. Worldwide projects in education, health, literacy and the environment are carried out in truth, honesty and accountability because the values inherent in the four‑way test are adhered to by Rotarians.
LISTNUM 95 \l 15200 Similarly, a Christian radio station in Regina would serve, like the four‑way test, in promoting values and moral standards amongst all ages in our community. The radio station would be a beacon, a lighthouse pointing the community away from dangerous rocks towards harmony and peace and respect among all men, women and children.
LISTNUM 95 \l 15201 The question is asked, can Regina financially fund and support a new gospel radio station? The large and broad Christian community in Regina has already found means and ways to fund several Christian schools. When it comes to upholding values, people inevitably find a way to come up with funding. If it's beneficial to ourselves, to our children, to our survival, we will always afford it. In other words, operating a Christian radio station which would give us exactly what we want, like Rotary's four‑way test, would be accomplished even through sacrificial giving.
LISTNUM 95 \l 15202 Currently we were not hearing the values and standards we cherish on regular radio stations, and we're willing to pay the utmost to achieve the highest standard for ourselves and future generations.
LISTNUM 95 \l 15203 The audience is here in Regina. We need Christian radio programming to assist in achieving the balance every human being requires to live a happy life. Now is the time for the needs and wishes of the Christian community to be met. We will gladly handle the finances. The product is worth the cost. Values, morals and standards in our community cannot be measured in dollars and cents. Changed lives are worth the cost.
LISTNUM 95 \l 15204 Thank you for considering our request. The impact of Christian radio will go on into eternity.
LISTNUM 95 \l 15205 THE SECRETARY: Thank you.
LISTNUM 95 \l 15206 We will now proceed with the Lighthouse To All Nations intervention. If you could, again, introduce yourself before speaking?
LISTNUM 95 \l 15207 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15208 MR. OGUNRINDE: Good afternoon, Madam Chairman, Commissioners and CRTC staff. I'm here as a parent, an educator and a pastor. I'm a parent of three mature ladies ages 21, 19 and 17 and, as an educator, upwards of seven years in the teaching career at the University of Regina, I helped train minds.
LISTNUM 95 \l 15209 But now as a spiritual leader, a pastor of a multi‑racial and multi‑ethnic congregation, my responsibility is to help mold, guard and guide the moral conscience of our society, also to help educate and promote values that make for a safe and healthy society.
LISTNUM 95 \l 15210 As an immigrant, I have been truly amazed and grateful for a blessed country such as ours. And one of the factors that make Canada to be voted twice by the United Nations as the best country to live in, is the economic growth and opportunities that abound. While this is an indisputable fact, somehow the foundation of our society has been compromised in the pursuit of these opportunities.
LISTNUM 95 \l 15211 Moral and family values that we once held so dearly are being eroded and mortgaged. We have pursued economic opportunities to the detriment of a wellbeing ‑‑ of the wellbeing of the family.
LISTNUM 95 \l 15212 Our society has become a stressful one. We have become a workaholic society. We have become intoxicated with success in order to ‑‑ and in order to maintain our insatiable appetite for luxury and opulence ‑‑ we have become intoxicated with success in order to maintain our insatiable appetite for luxury and opulence. Consequently we have made room ‑‑ we have made no room for a healthy family lifestyle. The cultural gangs, youth and young offenders, arson, substance and drug abuse, prostitution are becoming rampant. Kids as old as 9 to 12 year‑olds are increasingly committing acts that greatly alarm us.
LISTNUM 95 \l 15213 At the heart of this is neglect. I'm concerned about the legacy that we're going to pass on to the next generation that comes behind us. From personal experience, I understand a nation is as strong as its foundation. The family is the foundation of our society. I also believe that the thought in the mind of a man is mostly the function of his action. In other words, our thoughts determine or governs the rule and conduct of our lives.
LISTNUM 95 \l 15214 Music does not only entertain, it educates and has a message that is able to influence one's action. Much of what young people listen to today have messages that are often subliminal, promoting drugs, violence, suicide, vigilante justice, self‑destruction, bodily harm and rape. This kind of music offers no hope.
LISTNUM 95 \l 15215 As an pastor, I've often been on the receiving end. While young people are being destroyed, I have been left to pick up the broken pieces, devastated lives, and deal with the trauma from the misguided actions instigated by messages of the music. In some situations I have had to deal with grief counselling of families that have been affected through the death of young people, with the often difficult task of conducting funerals of our young people. I have been very distressed and helpless as I see young talents and potentials wasted and destroyed.
LISTNUM 95 \l 15216 When the music that young people listen to promotes all kinds of crime listed above, it can no longer be tolerated as entertainment but crime against humanity.
LISTNUM 95 \l 15217 And in our fast ‑‑ and in our fast‑paced society where there's little or no supervision of what young people are listening to, it is important to promote a safe alternative music that promotes moral values, respect for humanity and authority, and a love for our communities and, above all, a respect and reference for God.
LISTNUM 95 \l 15218 This is why I'm in support of the application for Touch Canada Broadcasting Incorporated that will provide contemporary gospel music. This kind of music is fast gaining popularity among young people, including my own children and their friends, and the young in our congregation and our fast‑growing immigrant communities.
LISTNUM 95 \l 15219 The contemporary gospel music is being produced in many styles by a multitude of artists and musicians on many successful market labels in Canada and the United States and is available in all fine music stores everywhere.
LISTNUM 95 \l 15220 Around the city you can hear this great music piped into the floor spaces of the Shoppers Drug Mart and Wal‑Mart and in other public and private spaces. Contemporary gospel music is becoming of interest to local and visiting bands in great numbers at various concert venues. The only place contemporary gospel music is not available is in Regina.
LISTNUM 95 \l 15221 My reason for being here today is on behalf of our local airwaves. I believe it is time for all our community, for our kids, and the young and old to be able to tune in on their radio dial to popular gospel music. We have all the other popular music formats to listen to on local radios, but we are still missing this one.
LISTNUM 95 \l 15222 As a spiritual leader in these troubled times and working in a city neighbourhood having so many troubled youth, I think it's appropriate and long overdue to have a community FM radio station with a positive message for all.
LISTNUM 95 \l 15223 On no less than about three or four occasions I have been in a crisis intervention where I have been to the police station and also I've been to court trying to wrestle young kids out of the hand of the government to say that we can actually give them hope. And in most cases, it has been a situation of arson and destruction of properties and all because of some of the influences that they get because of what they listen to.
LISTNUM 95 \l 15224 My experience has been that communities that offer FM contemporary gospel music, are listening to it and playing it all the time, one can be assured and secure that the message being aired any time of the day or night does not require parental concerns for monitoring. This kind of music educates and offer hope.
LISTNUM 95 \l 15225 I'm aware that other provinces and media centres in Canada have this type of music radio available and I believe it's time for Regina and our province to have it too.
LISTNUM 95 \l 15226 Madam Chairperson and Board, I ask that you give strong consideration to my concluding remarks. It's time to repair the foundation of our society through a wholesome message of contemporary gospel music. It's time for wholesome family oriented community minded radio in our city. It's time to give hope. It's time to grant an alternative.
LISTNUM 95 \l 15227 Thank you very much.
LISTNUM 95 \l 15228 THE SECRETARY: Thank you.
LISTNUM 95 \l 15229 I would ask Miss Shelan Schnell ‑‑ have I pronounced this correctly?
LISTNUM 95 \l 15230 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15231 MS SCHNELL: Yeah, my name is a tongue‑twister. My name is Shelan Schnell and thank you for your time and allowing me to speak today. I am here to speak on behalf of teachers who are doing their best to teach children who will positively affect the work and those around them with enthusiasm and courage in a world that sometimes is uncertain and dangerous.
LISTNUM 95 \l 15232 There's much opportunity in our country right now for our children, but there's also a great deal of breakdown in families and communities which are seriously impacting the safety and support of our children each day. As a classroom teacher of grade 1 and 2 students, I see each day how at risk our re children are.
LISTNUM 95 \l 15233 The culture of gangs, suicide, murder, drugs, prostitution and crime is more common among young people these days. Violence is so familiar to our students, and the media is a huge influence on our children and is impacting them in many ways. Music has a lot to do with our society. It is a part of everyone's lives, especially our youth. And what a lot of youth are listening to does nothing to stop destructive thoughts and actions but even sometimes encourages them.
LISTNUM 95 \l 15234 In schools we are trying to teach students respect for others and themselves, kindness, empathy, tolerance, caring, peace and self‑worth, but it is difficult when so much in media goes against that, including music.
LISTNUM 95 \l 15235 I just have a couple of examples of what students are listening to, and a popular artist right now is Fergie. And one of her songs, London Bridges, says, "All my girls get down on the floor back to back, drop it down real low. I'm such a lady but I'm dancing like a ho 'cause you know I don't give a F, so here we go."
LISTNUM 95 \l 15236 And another popular artist is Beck, and he says in his music, "I want to defy the logic of all sex laws. Let the handcuffs slip off your wrists. I'll let you be my chaperon at the halfway home." And then one of his songs ‑‑ the title of his songs is "Fing With My Head".
LISTNUM 95 \l 15237 And these are only two examples, but the influence of what is heard in media can also be heard with my students as young as grade 1 and 2. Just yesterday one of my grade 2 boys said to one of the grade 2 girls, "You're hot." And a couple of years ago a grade 1 boy said to another girl, "I want to have sex with you." And a grade 2 boy said to another teacher, "You have a nice A‑S‑S." And we had to suspend one of my grade 2 boys a couple of years ago for trying to hump girls on the playground.
LISTNUM 95 \l 15238 I supervise in the lunch room each day, and the students asked if they could bring music in to listen to during lunch. Now, these are grade 1 and 2 students, so I didn't think they would bring anything that would be inappropriate to play in a Catholic school. But as we had the music on, all of a sudden a song came on with the F word, and I had to turn it off and I had to start previewing any CDs that came and that they brought in.
LISTNUM 95 \l 15239 Right now there's music out there that is becoming more and more popular each day, and many people are tapping into this positive message of the contemporary Christian music. And as a young adult, I have stopped listening to radio and buying CDs that do not have a positive message which promote my values and morals.
LISTNUM 95 \l 15240 I'm lucky to have Max Digital on my TV where I can listen to a contemporary Christian channel at home. Most of my friends are now listening to the contemporary Christian music also. We find the messages are important in our lives, they're life‑giving, and they're worthwhile to listen to. And I would love to have access to that music 24/7, whether in my car, at school, or in my radio.
LISTNUM 95 \l 15241 And I believe is it time for everyone in our community, especially our youth, to be able to tune in to popular contemporary Christian music on the radio. I think it is important to hear music and to be exposed to a message that says to them that they're valued and loved. And I believe Regina would highly benefit by having a Christian music radio station available and I know many others like me would tune into it throughout the day and even at school.
LISTNUM 95 \l 15242 Many teachers, I know, play music in their classrooms and even have the radio playing while students are working on projects. And this would be a great station for them to play during the day and not have to worry about the content, whether its announcers are using curses or crude language or even disrespectful words or music.
LISTNUM 95 \l 15243 And I know I've had to turn off the radio sometimes in the morning, when I've had students come in early to help me, because of the content. And I know many other provinces and cities throughout Canada have this type of music radio available, and it's time for Regina and our province to have it. And I feel Touch Canada Broadcasting has done a tremendous service by spearheading this application and I'm excited that it's happening here in our city.
LISTNUM 95 \l 15244 Thank you all very much for letting me appear before the Commission today.
LISTNUM 95 \l 15245 THE SECRETARY: Thank you.
LISTNUM 95 \l 15246 I would now ask the Regina Evangelical and Ministerial Association, if you could also introduce yourself?
LISTNUM 95 \l 15247 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15248 MR. BERGEN: Good afternoon.
LISTNUM 95 \l 15249 I represent ‑‑ my name is Clay Bergen, and I represent the Regina Evangelical Ministerial Association. Thank you for taking the time to hear my comments in favour of the application of Touch Canada for Regina and not Saskatoon, but I could be there for Saskatoon, I guess, but ‑‑ being born and raised in Winnipeg, it was never my dream to live in Regina.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15250 MR. BERGEN: After living in the United States for ten years, it was a delight to move back to Canada, but it was Regina in 1985. This has been my home for the past 21 years. It has been a great place to raise my family. However, there's always been something missing here and ‑‑ which has been a radio station that plays the music that I enjoy and has the values that are important me. This FM gospel music station would fill that void.
LISTNUM 95 \l 15251 I travel across our country and when I get close to Calgary, I can hardly wait to find Shine FM and to listen to that in Calgary and then in Edmonton.
LISTNUM 95 \l 15252 Explosion of the Internet has filled some of that void by allowing me to listen to stations that play Christian gospel music. However, that's limited to my computer and/or paying for a satellite radio station. I believe that we should have this format of gospel Christian music available to the Regina public at no cost. I'm also tired of having a US brand of religious programming from those Internet stations.
LISTNUM 95 \l 15253 As a chairman of the Regina Ministerial Association, I represent over 10,000 individuals in Regina that would listen to such a format on the radio. This association represents 52 churches, 43 organizations in Regina that would benefit by having this format for a radio station. It would give us the ability to address issues that affect us here.
LISTNUM 95 \l 15254 As a CEO of one of those non‑profit organizations, it would allow me the avenue to present my message to my city. As a former minister in Regina, I see the advantage of having a local station that allows the Canadian message of what I believe and what is happening here in our city.
LISTNUM 95 \l 15255 This is not a bandwagon that I have just jumped on. For the past four years I have been involved in the community FM radio station, 91.3 CJTR as a member and a host for a Sunday morning talk show called New Times. This weekly show has allowed us to share what is happening around our city and community.
LISTNUM 95 \l 15256 New Song is another radio show that highlights the music for local artists, that I have been involved with in the station. Our shows have also helped to raise the funds for this community‑owned station. However, it's been our goal to see the style of radio expanded to a 24‑hour, seven‑day‑a‑week format as we have established a positive track record in broadcasting. We have also been involved in training DJs, broadcast hosts, and running a sound board for these programs.
LISTNUM 95 \l 15257 But finally, these are all good reasons to approve the application for Touch Canada Broadcasting, but the bottom line for me is this: If there were people in a burning building and I had the ability to go in and save them, it would be imperative upon me to go and save them. I have that opportunity now.
LISTNUM 95 \l 15258 We have a lot of hurting people in our city that need help. They need a message of hope, peace and love. That is what this station is all about. Touch Canada Broadcasting has a proven track record. Now we have the chance to offer that message of hope through the gospel music to Regina. Please give us that opportunity.
LISTNUM 95 \l 15259 Thank you for your consideration.
LISTNUM 95 \l 15260 THE CHAIRPERSON: Vice‑Chair Arpin...?
LISTNUM 95 \l 15261 COMMISSIONER ARPIN: Thank you very much, Madam Chair.
LISTNUM 95 \l 15262 Throughout this proceeding, I think the main question that arose was, could the market support another radio station. I know that you're not advertisers. You're two pastors, musicians, teachers and ‑‑ but do you think that the market ‑‑ because obviously Touch will have to make some money in order to sustain the level of production that they want to do in this market. And do you think there is a market for a gospel music radio station in Regina?
LISTNUM 95 \l 15263 MR. BERGEN: Well, I'll speak to that. This morning, the place ‑‑ the office that I rent is a Christian owner. And I went past his office and I saw him there and I said, "I'm making this presentation today." And I said, "If you were given the opportunity to advertise your business" ‑‑ he's a realtor in our city ‑‑ "through a gospel Christian music station, would you do it?" And he totally agreed that he would do that. And I believe there are resources. There are Christian businesses here in town that would support this radio station and the values that this radio station stands for, that they do not support in other radio media. And so I believe there is an opportunity for that commercial buy ‑‑ that would need to be here.
LISTNUM 95 \l 15264 MS SCHNELL: I just ‑‑ also I know in my church that we have a bulletin that goes out in the back. There's ‑‑ people can advertise their businesses, and I know there's 25 businesses that are being advertised in the church bulletin. That's just one church in the city out of many.
LISTNUM 95 \l 15265 MS ZBITNEW: I did address that question in my presentation and, as I said, if there's something that's a burning issue that you and I, whether we're Christians or not, we'll find a way. If there's something ‑‑ let's say that we're dying of cancer and there's a drug that we can buy that's going to cure us and it costs $100,000, do you think we'd be able to come up with that $100,000? I'm saying yes, we can.
LISTNUM 95 \l 15266 Christians are people who, by and large, are used to tithing. And on top of their tithing, they do ‑‑ they have sacrificial giving. And if it's something that I really want for the good of my family, myself, my children, my community, I will forego some of the other things in my life.
LISTNUM 95 \l 15267 And I believe I'm speaking on behalf of many Christians in Regina. We will forego maybe going to a movie or whatever it is, in order to have what is very important in promoting values and ethics and honesty and this kind of music for our community. I believe the funding is already in place.
LISTNUM 95 \l 15268 COMMISSIONER ARPIN: Thank you very much. Thank you.
LISTNUM 95 \l 15269 THE CHAIRPERSON: Thank you, gentlemen and ladies. I believe we will take a 15‑minute break. That means, by my watch, it is ten after four and so it will be 25 after four.
LISTNUM 95 \l 15270 Thank you.
‑‑‑ Upon recessing at 1610 / Suspension à 1610
‑‑‑ Upon resuming at 1630 / Reprise à 1050 1630
LISTNUM 95 \l 15271 THE CHAIRPERSON: Order please. Madam Secretary...?
LISTNUM 95 \l 15272 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 15273 I would now like to call, as a panel, the following two interveners, Circle of Aboriginal Community Voices and Mills Productions. If they are present, if they could come forward for their presentation of their intervention?
‑‑‑ Pause
LISTNUM 95 \l 15274 THE SECRETARY: And I gather they are not present. Therefore, we will hear the last appearing intervener for the Regina applications, Harvard Broadcasting Inc. If you would come forward for your presentation please?
‑‑‑ Pause
LISTNUM 95 \l 15275 THE SECRETARY: Again, for the record, if you could just simply introduce yourself? And you will have ten minutes for your presentation.
LISTNUM 95 \l 15276 Thank you.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15277 MR. COWIE: Thank you very much.
LISTNUM 95 \l 15278 And before we begin, Madam Chair, for the record, we apologize for missing our earlier appointment today. We were ‑‑ got a little mixed up in our efforts. In any event, thank you for allowing us to appear after all, after being tardy.
LISTNUM 95 \l 15279 Madam Chair, Members of the Commission, my name is Bruce Cowie, vice president of Harvard Broadcasting. Seated on my right is Michael Olstrom, Harvard's station group manager. And on my left is Debra McLaughlin of Strategic Inc. Seated in the back row on my right is Tina Svedhal, vice president investments. And Rob Malcolmson, our legal counsel.
LISTNUM 95 \l 15280 At the outset, let me thank you for granting us this opportunity to appear and present our intervention commenting on the applications for new radio stations here in Harvard's home market, Regina. It is with great reluctance we appear in intervention, but we really have, in our choice, no choice. As you will hear, market conditions in Regina simply do not warrant competitive entry at this time.
LISTNUM 95 \l 15281 Harvard owns and operates three radio stations in this city; a full‑service country AM and adult contemporary FM and a mainstream rock FM. The city's other three radio stations are operated by Rawlco Radio. The two stations operated by Golden West Broadcasting in nearby Moose Jaw also derives some revenue from Regina and garner audience share in the market. The Golden West was recently granted a third licence in Moose Jaw and that station, when it launches, will further fragment Regina radio audiences.
LISTNUM 95 \l 15282 Suffice it to say, Regina with eight and soon to be nine stations available in the market is highly competitive, and the formats offered to the radio audiences are, in our view, sufficiently diverse. We support the principle of increased competition and program diversity as evidenced by our recent applications in Moose Jaw, Calgary, Fort McMurray, Medicine Hat and Saskatoon.
LISTNUM 95 \l 15283 However, not all markets can support competitive entry at any given time. Indeed recent Commission decisions is that new licences will be issued where, one, when PBIT levels of the incumbent operator are such that the market can accommodate new entry with minimal impact on the existing services or, two, in markets where PBIT levels are low but economic indicators nevertheless demonstrate that market growth will facilitate a new entry.
LISTNUM 95 \l 15284 Madam Chair, the ‑‑ neither of these factors are present in Regina at this time. PBITs in Regina are well below levels at which the Commission has traditionally been prepared to grant new licences. Current PBIT levels for all stations in the market are estimated to be less than 10 percent.
LISTNUM 95 \l 15285 While PBITs are a key indicator of marketability to accommodate new entries, we recognize that low PBITs are not necessarily determinative. We understand that if growth prospects of a market are sufficiently positive, new licences are sometimes issued but, in Regina, all economic indicators suggest and the market is not growing.
LISTNUM 95 \l 15286 Michael...?
LISTNUM 95 \l 15287 MR. OLSTROM: Regina is not a growing market. GDP growth has been well below the Canadian average for two of the past four years. Furthermore, the Conference Board of Canada projects that growth in this area will not come close to the Canadian average for the next four years.
LISTNUM 95 \l 15288 Similarly, the population growth expectation has also been significantly below the national average and is forecast to remain at only that of the national average going forward. Retail sales have also been sporadic. In two of the past four years, retail sales in Regina have been performing at one‑third of the Canadian average.
LISTNUM 95 \l 15289 Going forward, the projections are for marginally positive growth but at a rate that is only slightly better than inflation and certainly below the growth expected for the country.
LISTNUM 95 \l 15290 Financial Post Markets concurs with this negative forecast. The Regina market is already 13 percent below the national average and while some growth is forecast through 2010, growth in Regina will only amount to a paltry 2.5 percent per year for the next four years once the catch‑up is factored out.
LISTNUM 95 \l 15291 Contract this to a market like Medicine Hat with a population approximately one‑third of Regina, it is currently sitting at a retail sales per capita which is 58 percent above the Canadian average and the growth anticipated for the next four years is an increase of 34 percent. As we discussed earlier this week, that is an example of an economically healthy market.
LISTNUM 95 \l 15292 One of the factors underpinning this unsteady performance is lack of diversity in the economic base. The Conference Board of Canada assigns ratings to markets based on the breadth and range of industries that support the local economy. A score of one represents maximum diversity. Anything below one is an indication of the degree to which shifts in any one industry sector ‑‑ or industrial sector will impact the overall performance of the market. Regina is rated at .81, a lower score than the majority of the rated markets.
LISTNUM 95 \l 15293 MR. COWIE: So what we have here in Regina is a market with a low PBIT level and flat‑to‑negative growth across all economic indicators. The fragile state of the Regina radio market is further demonstrated when key retail sales indicated are compared to neighbouring Moose Jaw.
LISTNUM 95 \l 15294 In Moose Jaw 2006 retail sales were fully 25 percent above the national average while Regina's retail sales were 13 percent below the Canadian average. 2006 retail sales per household in Moose Jaw were $35,600, while Regina was almost 30 percent lower at 25,600 per household. Per capita retail sales in Regina were also 30 percent behind Moose Jaw.
LISTNUM 95 \l 15295 Earlier this year the Commission denied applications for new entrants in Moose Jaw but did grant a third licence to the incumbent broadcaster, Golden West, on the basis that a new competitor in Moose Jaw would have an undue negative ‑‑ a negative impact on existing stations. In broadcasting decision 2006‑190 the Commission stated as follows: "The Commission has analyzed the Moose Jaw radio market and based on low level of profitability of the only incumbent radio broadcaster in the market, the decline in over the last ten years and the modest projection for growth in the economy in the upcoming years, the Commission concludes that Moose Jaw is not able to absorb the introduction of a new broadcaster at this time without having an undue negative impact on the existing radio stations in the market."
LISTNUM 95 \l 15296 And Regina radio market exhibits those same conditions; low levels of profitability, stagnant population and modest growth projections. Given the presence of these adverse conditions in Moose Jaw, the Commission decided just six months ago, that new competitive entry in that market was not justified. In Harvard's view, the results should be the same here in Regina at this point in time.
LISTNUM 95 \l 15297 While Harvard supports competition and diversity and all radio markets are not created equally, the unfortunate reality is that Regina's radio market is not robust and the issuance of a new licence would, in our submission, have an undue negative impact on existing licences.
LISTNUM 95 \l 15298 For these reasons, we urge the Commission to approach licensing in Regina with a high degree of caution. In our view, no new licence should be issued at this time. In the interim, the market should continue to be monitored, and when relevant economic indicators warrant, Harvard would have no objection to the issuance of new competitive licences Regina.
LISTNUM 95 \l 15299 We thank you for this opportunity and would be pleased to answer any questions.
LISTNUM 95 \l 15300 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 15301 Vice‑Chair Arpin...?
LISTNUM 95 \l 15302 COMMISSIONER ARPIN: I read your conclusion but, as you are aware, there are other type of less commercial, I will say, type of applicant like the Christian music/gospel music applicant. There is two Aboriginal applicant as well. Are ‑‑ when you're saying no new radio station for Regina, are you including these three in your recommendation?
LISTNUM 95 \l 15303 MR. COWIE: All three of those would be exempt from our recommendation, so we would not object to those.
LISTNUM 95 \l 15304 COMMISSIONER ARPIN: You would not object to them. The ‑‑ I did ask earlier, Rawlco, regarding staffing reduction in the market over the last four years, at least the data that the Commission has was covering two ‑‑ 2002 to 2005. The 2006 numbers are not either in or compiled, but I was noticing that there was a reduction of people working in the radio sector in the market.
LISTNUM 95 \l 15305 I'm asking the question because I've heard and read that the ‑‑ somewhere that the incumbent have provide ‑‑ are ‑‑ have increased staffing in order to provide better quality programming, better service to the community. Now, the data that the Commission has gathered over the last years is showing the contrary. Do you have any comment on that?
LISTNUM 95 \l 15306 MR. COWIE: Well, I would ask ‑‑ we did hear that discussion, and I would ask whether that was exclusively for the Regina market?
LISTNUM 95 \l 15307 COMMISSIONER ARPIN: Yeah, it's ‑‑ I'm ‑‑ I was working at the Regina market.
LISTNUM 95 \l 15308 MR. COWIE: Okay.
LISTNUM 95 \l 15309 COMMISSIONER ARPIN: I was not talking Saskatchewan. Or is it strictly Regina?
LISTNUM 95 \l 15310 MR. COWIE: Well, we have looked at that and we may be, at the moment, one lower than we were last year, but we have not had any kind of reduction like that over that period of time.
LISTNUM 95 \l 15311 COMMISSIONER ARPIN: I understand that you're reporting somehow person‑years rather than the actual individual, so that may be the thing that makes the difference.
LISTNUM 95 \l 15312 MR. COWIE: Well, we in this case counted bodies.
LISTNUM 95 \l 15313 COMMISSIONER ARPIN: You counted bodies?
LISTNUM 95 \l 15314 MR. COWIE: Yes.
LISTNUM 95 \l 15315 COMMISSIONER ARPIN: And if you are returning back to, say, four years ago in 2002, have you reduced staffing since the ‑‑ since that period?
LISTNUM 95 \l 15316 MR. COWIE: No, we have not.
LISTNUM 95 \l 15317 COMMISSIONER ARPIN: You have not. The ‑‑ I will also ask Mr. Paul Martin about government advertising expenditures, how significant advertising ‑‑ government advertising placement is for your group?
LISTNUM 95 \l 15318 MR. COWIE: It ‑‑ it is significant and it is also fleeting. That comes and goes.
LISTNUM 95 \l 15319 COMMISSIONER ARPIN: Yeah, that ‑‑ but ‑‑
LISTNUM 95 \l 15320 MR. COWIE: But in the current context, and we're in a time leading up to a provincial election here, and I won't give you a number. That would be revealing secrets, but I would tell you it is a significant amount of money to our radio station.
LISTNUM 95 \l 15321 COMMISSIONER ARPIN: Because ‑‑ well, I'm asking the question because I know that it is, generally speaking, volatile. It goes by cycle and ‑‑
LISTNUM 95 \l 15322 MR. COWIE: Yes.
LISTNUM 95 \l 15323 COMMISSIONER ARPIN: ‑‑ and it ‑‑ so in terms of advertising category, what are the main category of advertisers that and ‑‑ that I could find here in Regina?
LISTNUM 95 \l 15324 MR. COWIE: Retail advertisers?
LISTNUM 95 \l 15325 COMMISSIONER ARPIN: Yes, by category; automotive, furniture ‑‑
LISTNUM 95 \l 15326 MR. COWIE: Oh.
LISTNUM 95 \l 15327 COMMISSIONER ARPIN: ‑‑ sports or whatever.
LISTNUM 95 \l 15328 MR. COWIE: Well, I'll have Michael refer to that.
LISTNUM 95 \l 15329 MR. OLSTROM: You mentioned a couple off the top. Automotive is a major advertiser with us, as are a number of the furniture dealers. We also have restaurants and, as mentioned as well, government are significant advertisers as well.
LISTNUM 95 \l 15330 MR. COWIE: In addition to that, because your AM station ‑‑ it operates in an agriculture based economy here, we do a high level of agri business. That, too, is changeable with crop conditions and all of those things, but that has been a very important part of the business we do, and it ‑‑ it's ‑‑ and as you know, one of ‑‑ our AM radio station is still one of the top radio stations in the country in terms of audience and service.
LISTNUM 95 \l 15331 So it's ‑‑ as long as that retained ‑‑ is retained over time, it's of benefit to us, but it's ‑‑ we get a wide range. We do a lot of work with some of the gentlemen you had here today on the music scene with some of the clubs, you know, particularly the pub and all of those. We're very active in that scene and also on our FM radio stations, so it's a pretty wide ‑‑
LISTNUM 95 \l 15332 COMMISSIONER ARPIN: Array of advertisers ‑‑
LISTNUM 95 \l 15333 MR. COWIE: Yes.
LISTNUM 95 \l 15334 COMMISSIONER ARPIN: ‑‑ that you would ‑‑
LISTNUM 95 \l 15335 MR. COWIE: Yes.
LISTNUM 95 \l 15336 COMMISSIONER ARPIN: Well, I thank you for your presentation. I think you're conclusions are clear, and that will surely ‑‑ the Commission will have to take them very seriously into consideration, so thank you very much.
LISTNUM 95 \l 15337 MR. COWIE: Thank you.
LISTNUM 95 \l 15338 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 15339 I just have a few questions. There's a tally on the presentation you gave today on page 5, you talked about retail sales indicators and where did that information come from?
LISTNUM 95 \l 15340 MR. COWIE: I'm going to ask Debra McLaughlin to respond to that.
LISTNUM 95 \l 15341 MS McLAUGHLIN: The now infamous Financial Post Markets.
LISTNUM 95 \l 15342 THE CHAIRPERSON: The FP?
LISTNUM 95 \l 15343 MS McLAUGHLIN: Yes.
LISTNUM 95 \l 15344 THE CHAIRPERSON: Okay. I am also then going to ask the same question I asked of Rawlco. I'm aware that you had applications in, I'm going to say, from 2000 on in Calgary, Edmonton, Vancouver, Ottawa and then you hit the jackpot in Calgary. And the expenses of those applications, if you could answer in confidence, whether they were borne by Harvard Developments or Harvard Broadcasting, and if you could provide us with those numbers in confidence within a week? Does that sound fair?
LISTNUM 95 \l 15345 MR. COWIE: We certainly will do that, and I'll ask Tina Svedhal to respond to the first part of your question.
LISTNUM 95 \l 15346 THE CHAIRPERSON: Oh, she ‑‑ you can do it in confidence.
LISTNUM 95 \l 15347 MR. COWIE: All right. We'll do it this way.
LISTNUM 95 \l 15348 THE CHAIRPERSON: Yes.
LISTNUM 95 \l 15349 MR. COWIE: Thank you.
LISTNUM 95 \l 15350 THE CHAIRPERSON: Just because I certainly don't want to put you in, you know ‑‑ and in terms of the gearing up for Calgary, are you capitalizing the salaries ‑‑ again in confidence. Don't touch your button, Michael. Are you capitalizing your salaries or not, you know, as a capital expense?
LISTNUM 95 \l 15351 MR. COWIE: I'll have Tina Svedhal respond to that. My understanding is we are not.
LISTNUM 95 \l 15352 THE CHAIRPERSON: Including all of the prelaunch expenses, are they being capitalized or are they just being part of the expenses?
LISTNUM 95 \l 15353 MS SVEDHAL: Yes, Madam Chair, I'll respond in our confidential response in a week.
LISTNUM 95 \l 15354 THE CHAIRPERSON: That sounds perfect.
LISTNUM 95 \l 15355 MS SVEDHAL: Just to clarify, do you want it from 2000 forward or just the last two years? You did mention 2000 earlier.
LISTNUM 95 \l 15356 THE CHAIRPERSON: Yes. Well, I would actually say '99 because the ‑‑ if I recall the first hearing you appeared at was in October 2000 in Calgary.
LISTNUM 95 \l 15357 MS SVEDHAL: Sure.
‑‑‑ Undertaking / Engagement
LISTNUM 95 \l 15358 THE CHAIRPERSON: If you could?
LISTNUM 95 \l 15359 MS SVEDHAL: Sounds good. Thank you.
LISTNUM 95 \l 15360 MR. COWIE: I was going to say a licence I thought we should have won by the way. I'm just kidding.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15361 THE CHAIRPERSON: Persistent pays, Mr. Cowie. Thank you.
LISTNUM 95 \l 15362 MR. COWIE: Thank you very much.
‑‑‑ Pause
LISTNUM 95 \l 15363 THE CHAIRPERSON: We're now proceeding to Phase IV. Madam Secretary...?
LISTNUM 95 \l 15364 THE SECRETARY: That's correct. Thank you, Madam Chair.
LISTNUM 95 \l 15365 Before we proceed to Phase IV, I'd just like to indicate for the record that the applicant, Radio CJVR, has filed with the Commission the ‑‑ their commitments they had made earlier for the Regina applications, which is a breakdown of the estimated cost associated with their CTD initiatives, as well as an amended table of their proposed spoken‑word commitments. This document will be placed on their application file for anyone who wishes to review them.
LISTNUM 95 \l 15366 As indicated, we are now proceeding to Phase IV in which applicants can reply to all interventions that were filed on their application. Applicants will be asked to appear in reverse order if they wish. And I would now ask Natotawin Broadcasting if they wish to intervene at this point?
‑‑‑ Pause
LISTNUM 95 \l 15367 THE SECRETARY: I see they're not present. Then we will go with AVR.
‑‑‑ Pause
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15368 MR. BUCHANAN: Good afternoon, Madam Chair, Members of the Commission, AVR does wish to have a short dialogue with the Commission about the condition of licence relating to the two‑year period or the implementation of local. Whether we do that today or tomorrow in the context of Saskatoon is indifferent to us. I ‑‑ my understanding was the Commission would ‑‑ was prepared to do this tomorrow since it would presumably be the identical condition applied to both applications and we could have a fuller discussion then.
LISTNUM 95 \l 15369 THE CHAIRPERSON: Yeah, I think that's fine. I just wanted the process to show that this point of this Regina hearing is still alive and we'll just transfer it into the Saskatoon hearing
LISTNUM 95 \l 15370 MR. BUCHANAN: Understood.
LISTNUM 95 \l 15371 THE CHAIRPERSON: Okay, thank you very much. Madam Secretary...?
LISTNUM 95 \l 15372 THE SECRETARY: Thank you.
LISTNUM 95 \l 15373 I would now call of Radio CJVR Ltd., if they wish to come forward at this ‑‑ for this phase?
‑‑‑ Pause
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15374 MR. SINGER: Good afternoon, Madam Chair, Commissioners. CJVR would like to thank the Commission for hearing our Regina applications in a fair and comprehensive manner. We'd also like to thank the many interveners who wrote letters of support for our proposed two FM applications.
LISTNUM 95 \l 15375 Finally, I'd like to address those Regina and community organizations that wrote letters of concerns stating that increased competition will result in loss of support by the Rawlco Radio group. I wish to assure each of them that given approval of one or two of our licences, we will be happy to provide significant promotional support to all community organizations.
LISTNUM 95 \l 15376 In our mind, more broadcasters means more community support. We welcome the opportunity to promote and support the Regina community.
LISTNUM 95 \l 15377 Thank you.
LISTNUM 95 \l 15378 THE CHAIRPERSON: Thank you, Mr. Singer.
LISTNUM 95 \l 15379 THE SECRETARY: Now, with that, I'll call on Touch Canada Broadcasting, if they wish to appear in Phase IV?
‑‑‑ Pause
LISTNUM 95 \l 15380 THE SECRETARY: Please go ahead, Mr. Hunsperger.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15381 MR. HUNSPERGER: Thank you, Madam Chair, Members of the Commission.
LISTNUM 95 \l 15382 First of all, we want to thank all of our supporting interveners, both appearing and non‑appearing, with their letters and comments which we greatly appreciate.
LISTNUM 95 \l 15383 We've been advised by Commission counsel that you will permit us to clarify our position with respect to two issues; local programming and balance, which were points of contention during Phase I of our application. We greatly appreciate and thank you for this opportunity.
LISTNUM 95 \l 15384 I will first ask Malcolm Hunt, our network program director to address local programming.
LISTNUM 95 \l 15385 MR. HUNT: Our Regina station, if approved, will broadcast 98 hours of ‑‑ per week of local programming, as defined by the Commission's current regulations and policies. These 98 hours are comprised of, one, 40 hours live to air made up of 3 hours of morning drive 6 to 9 a.m. and 5 hours of afternoon drive 1 to 6 p.m. Monday to Friday.
LISTNUM 95 \l 15386 Number 2, 52 hours per week of voice track programming produced at our existing facilities in Edmonton and at the Regina station. This programming is specific to Regina and will only be aired in Regina.
LISTNUM 95 \l 15387 Six hours per week of locally, produced in Regina, prerecorded programming. This time block is comprised of our top 20 music program aired Saturdays 9 to 11, and our praise and worship music program aired Sundays from 6 to 10 a.m. With 98 hours per week of local programming, we will air more than double the minimum 42 hours required by the Commission's regulations in order to be able to solicit local advertising.
LISTNUM 95 \l 15388 I apologize for any misunderstanding I may have caused in Phase I with respect to this matter and I thank you for this clarification opportunity.
LISTNUM 95 \l 15389 MR. HUNSPERGER: I will now address the issue of balance. We do not believe that we are a religious broadcaster as defined in the Commission's religious broadcasting policy, public notice CRTC 1993‑78, rather we have always considered our operations as gospel music stations which broadcast a minimum amount of religious brokered spoken‑word programming for purely economic reasons.
LISTNUM 95 \l 15390 On page 7 of the public notice, CRTC 1993‑78, when defining what is ‑‑ a religious program is, the Commission states ‑‑ and I quote, "It will not include religious music programs in which the spoken‑word content is non‑religious."
LISTNUM 95 \l 15391 Since none of our spoken‑word content in our music programs, for example, DJ comment, human interest features is religious in nature, the vast majority of our program one clearly does not fall under the religious policy. That leaves only the brokered spoken‑word programming, which does of course does have a religious connotation.
LISTNUM 95 \l 15392 With regards to this, I draw your attention to the list of stations we submitted in Phase I, which currently broadcast the same brokered programs that we proposed to carry in Regina. The stations highlighted in black are deemed by the Commission to fall under the religious policy.
LISTNUM 95 \l 15393 As you can see, the majority of stations airing this type of programming do not fall under that policy. They represent a variety of formats ranging from country to ethnic. We are not for a moment suggesting that these stations are religious. We believe, however, that we, as a gospel music broadcaster, should be regulated in the same manner as these stations.
LISTNUM 95 \l 15394 All of this being said, we take our responsibilities regarding balanced programming as mandated by the Broadcasting Act very seriously. We have over 20 years of combined on‑air experience in our existing operations in Edmonton and Calgary. The Commission has not received a single complaint regarding our programming during that time, and we're very proud of that record.
LISTNUM 95 \l 15395 In conclusion, we are prepared to accept the Commission's general condition of licence with respect to the religious policy, even though we don't consider ourselves a religious broadcaster, if you deem it appropriate.
LISTNUM 95 \l 15396 Further, if the Commission deems it appropriate, we would be willing to accept the condition of licence capping the amount of brokered spoken‑word programming at a maximum of 15 hours per week for the term of licence. This would represent 11 percent of our 126‑hour broadcast week.
LISTNUM 95 \l 15397 We are not prepared to accept a COL regarding a specific amount of balanced programming as we feel that we would then be regulated in a different manner than most of the other stations that air the same brokered programming that we propose to broadcast, if granted a licence in Regina.
LISTNUM 95 \l 15398 Thank you.
LISTNUM 95 \l 15399 THE CHAIRPERSON: Thank you, Mr. Hunsperger. Madam Secretary...?
LISTNUM 95 \l 15400 THE SECRETARY: I would now call on Standard Radio, if they wish to come forward at this phase?
‑‑‑ Pause
LISTNUM 95 \l 15401 THE CHAIRPERSON: Feeling somewhat schizophrenic, Mr. Buchanan, these days?
LISTNUM 95 \l 15402 MR. BUCHANAN: ‑‑ tomorrow also.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15403 MS TAYLOR: Hello again. By the way, I'd like to mention that I have received a number of e‑mails from my staff back in Winnipeg, all containing very interesting information on noticing heart attack symptoms and whatnot, so I appreciate their thoughtfulness.
LISTNUM 95 \l 15404 I appreciate the opportunity, as well, to appear again today. I'd like to thank the appearing supporters that we had earlier in the day. Some of them did travel a great distance on our behalf, and we're very grateful.
LISTNUM 95 \l 15405 My name's Sharon Taylor. I'm representing Standard Radio with Mr. Grant Buchanan from McCarthy Tetrault, our legal counsel. I just want to make a few brief comments, the first of which I'd like to comment briefly on economics.
LISTNUM 95 \l 15406 We believe that the economic indicators, that the Regina market is strong and growing, are there. And although they seem to have been stated for you every which way but sideways, the article in today's paper was referenced earlier. But since it's so fresh, I just want to take a moment, if you don't mind, and read some of the pertinent items from it into the public record.
LISTNUM 95 \l 15407 The section was titled, "Saskatchewan's Out‑performance Continues. Resource rich Saskatchewan is on track to record a healthy 3.3 percent real GDP advance this year with even slightly faster growth in store for 2007. This will provide the province a five‑year average growth rate of 3.4 percent, faster than any of the seven provinces to its east and more than a percentage point above the province's trend.
LISTNUM 95 \l 15408 Canada is the world's largest uranium producer, and it all comes from Saskatchewan. In agriculture, provincial crop production could still run slightly below average levels in 2006, but poor harvest in other countries, i.e. Australia, lend support to prices and point to healthy future cash receipts.
LISTNUM 95 \l 15409 Labour income growth has been robust with competition from Alberta driving wages higher. Brisk housing market activity has served as a foundation of support for consumer spending while a gradual moderation in housing activity from such elevated levels can be expected next year, the government's recent PST cut will stoke consumer spending."
LISTNUM 95 \l 15410 I believe that these are strong indicators, and there have been many others presented in the last two days. I also find it difficult to imagine that this growth is happening everywhere in Saskatchewan but Regina.
LISTNUM 95 \l 15411 While it's clear that the current broadcasters are not keen on change in their market, I think the indicators are positive for change.
LISTNUM 95 \l 15412 I'd like to also comment briefly on format diversity. There is no new country music radio station on FM in Regina. While Country 100 in Moose Jaw can be heard in Regina, the Commission made note in their decision this past May in licensing a new FM station in Moose Jaw that the Moose Jaw market and the Regina market are two different markets.
LISTNUM 95 \l 15413 Locally CKRM, the AM country station, sees strength in their listeners 55 and older. Our station will appeal to a much younger audience. Forty‑five percent of our audience, according to our research, will be the return of Regina listeners who are currently listening to the Moose Jaw station.
LISTNUM 95 \l 15414 Now I would like to hopefully add some clarity to our Canadian Talent Development position. In our application we promised a minimum of $100,000 in cash per year over the seven‑year term. In our presentation we increased that amount to $150,000 in cash per year. We were comfortable putting this increase on the record during our presentation yesterday. This increase did not match or put our application ahead of other competing applicants in terms of CDT expenditures.
LISTNUM 95 \l 15415 In other words, although we uncovered certain needs that we wanted to fill, the playing field for Canadian Talent Development remains the same.
LISTNUM 95 \l 15416 The Saskatchewan Music Educators Association is frankly a group that we were just not aware of when we were filing our application and helping to provide instruments, education, music instruction and guidance to children in inner city schools in Regina is something that we're quite sorry that we didn't know about when we did file.
LISTNUM 95 \l 15417 We hope that this clarification will help put to rest Madam Chair's opinion that the CTD component was viewed as an auction. Most sincerely if that were our intent, in true auction form we should have, and I imagine we would have, outbid our competitors. In fact, this is something that has happened more or less on the fly, if you will, at other hearings when applicants have offered to increase commitments during the hearing process.
LISTNUM 95 \l 15418 This is a four‑phase competitive hearing, and other applicants, should they have felt aggrieved in any way, could have come forward in Phase II and complained. This did not happen, which should speak volumes about the other applicants' concerns.
LISTNUM 95 \l 15419 The Commission clearly has the ability to allow these changes. That said, should the Commission feel that the process in this case has been compromised, we guarantee that the commitments made in our original application will be honoured as submitted, pending your approval of course that they qualify.
LISTNUM 95 \l 15420 Should the Commission grant us this licence as amended, we do intend to follow through on the additional support that we outlined in our oral presentation.
LISTNUM 95 \l 15421 A quick comment regarding the discussion regarding Mr. Grierson's(ph) comments on national advertising. His contention is the national advertising will not increase with another operator in the market and, instead, national advertising will just be spread out thinner among all the operators. I believe that Mr. Grierson's rep house, CBS, presently represents 31 of the 34 radio stations in the province. With that kind of strangle‑hold on representation, I believe that competition in this area would be beneficial to national advertisers.
LISTNUM 95 \l 15422 We also cannot imagine that when adding a new exclusive format to the market that national spending will not be, in some way, positively stimulated.
LISTNUM 95 \l 15423 Finally, we have prepared and would like to submit a breakdown of our news commitment. In total, we are offering five hours and 46 minutes of news weekly, which is much more significant than our original total which did not include our commitments to weather, road conditions and our Sunday news magazine program. And to be clear, this is not a change to our original application. It was always there.
LISTNUM 95 \l 15424 Thank you very much, and I'm glad that I got through at this time so that you could understand me.
LISTNUM 95 \l 15425 THE CHAIRPERSON: Commissioner Cugini...?
LISTNUM 95 \l 15426 COMMISSIONER CUGINI: Ms Taylor, thank you.
LISTNUM 95 \l 15427 I, too, got an e‑mail from my assistant in Gatineau this afternoon recommending that I drown in a couple of hot toddies tonight. So you're right, it's nice to know that people back home not only are listening to us, but care for our wellbeing.
LISTNUM 95 \l 15428 MS TAYLOR: Very nice.
LISTNUM 95 \l 15429 COMMISSIONER CUGINI: Because you did raise the issue of the CTD and, in your discussion with Commissioner Cram yesterday, she did make it clear that the Commission may decide to obligate you to the $700,000 level as originally submitted.
LISTNUM 95 \l 15430 I just wanted to be absolutely clear, and you did provide some clarity today that, as filed, that is how you would spend the $700,000. So just to be clear, it means that Saskatchewan Music Educators Association, Radio Starmaker Fund, and the Canadian Country Music Association would not receive any CTD?
LISTNUM 95 \l 15431 MS TAYLOR: Could you repeat those groups for me again ‑‑
LISTNUM 95 \l 15432 COMMISSIONER CUGINI: Sure.
LISTNUM 95 \l 15433 MS TAYLOR: ‑‑ please?
LISTNUM 95 \l 15434 COMMISSIONER CUGINI: What I have ‑‑ when we compare what was originally filed with what was said yesterday, the organizations that are new to the list ‑‑
LISTNUM 95 \l 15435 MS TAYLOR: Yes.
LISTNUM 95 \l 15436 COMMISSIONER CUGINI: ‑‑ were the Saskatchewan Music Educators Association ‑‑
LISTNUM 95 \l 15437 MS TAYLOR: Correct.
LISTNUM 95 \l 15438 COMMISSIONER CUGINI: ‑‑ the Radio Starmaker Fund ‑‑
LISTNUM 95 \l 15439 MS TAYLOR: Correct.
LISTNUM 95 \l 15440 COMMISSIONER CUGINI: ‑‑ and the Canadian Country Music Association?
LISTNUM 95 \l 15441 MS TAYLOR: That's correct.
LISTNUM 95 \l 15442 COMMISSIONER CUGINI: So if the $700,000 were replies as filed, these three organizations would not receive CTD?
LISTNUM 95 \l 15443 MS TAYLOR: That's correct.
LISTNUM 95 \l 15444 COMMISSIONER CUGINI: And the other amounts as filed would stay?
LISTNUM 95 \l 15445 MS TAYLOR: You bet.
‑‑‑ Technical difficulties / Problèmes techniques
LISTNUM 95 \l 15446 COMMISSIONER CUGINI: So ‑‑
LISTNUM 95 \l 15447 MS TAYLOR: You were correct in all three items that you listed. Those three groups, the Saskatchewan Music Educators Association, the Canadian Country Music Association, and Starmaker, were not in our original application.
LISTNUM 95 \l 15448 COMMISSIONER CUGINI: And you would accept, as a condition of licence, the CTD expenditure as filed?
LISTNUM 95 \l 15449 MS TAYLOR: Correct.
LISTNUM 95 \l 15450 COMMISSIONER CUGINI: Thank you very much.
LISTNUM 95 \l 15451 MS TAYLOR: You're welcome.
LISTNUM 95 \l 15452 THE CHAIRPERSON: Did you ‑‑ no. Thank you very much.
LISTNUM 95 \l 15453 MS TAYLOR: Thank you.
LISTNUM 95 \l 15454 THE CHAIRPERSON: Madam Secretary...?
LISTNUM 95 \l 15455 THE SECRETARY: We now call on Newcap, if they wish to appear in this phase?
‑‑‑ Pause
LISTNUM 95 \l 15456 THE CHAIRPERSON: Madam Secretary?
LISTNUM 95 \l 15457 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 15458 Mr. Maheu, you can go ahead.
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15459 MR. MAHEU: Thank you very much.
LISTNUM 95 \l 15460 Good afternoon, Madam Chair, members of the Commission, staff. Newcap would just like to take a couple of moments here in Phase IV to address a number of points.
LISTNUM 95 \l 15461 First and foremost, we'd like to thank the letters of support received from the number of interveners who would like to see an oldies based classic hits radio station by Newcap come to Regina. We appreciate the time and effort they took to send their letters and words of support on our behalf to the Commission, so on ‑‑ for the record, thank you for those folks.
LISTNUM 95 \l 15462 We'd like to take a very short period of time, maybe two, two and a half minutes and very quickly touch on some of the points raised in the Rawlco Radio intervention heard earlier this afternoon. First of all, just to clarify a point that the ‑‑ was raised in that intervention and the question by the Commission of Mr. Goldstein's report and where Mr. Goldstein was asked to comment on the comparisons that we made in our opening remarks in our presentation for a new station in Regina, where we took markets like St. John, New Brunswick and Moncton, and so on, and basically gave the Commission information on the average number of stations on a per capita basis and so on.
LISTNUM 95 \l 15463 Just to clarify our intent on that, we did not see that as a steel sword piece of evidence to say that this market needs or deserves more radio. It was more anecdotal, to give you a sense of markets of a similar size and the range and scope of service that's available in those markets. And we also tried to choose markets that were similar in some ways to Regina where they were stand‑alone cities, not in the shadow of a major metropolitan area like a Hamilton or even a Kitchener or something like that, but municipalities that have stood on their own and had their own radio market unto themselves. So if that created any confusion or concern, we apologize, but we really presented that as extra anecdotal information to help put things into the perspective.
LISTNUM 95 \l 15464 There was a comment raised in the intervention earlier from Rawlco about new radio stations, and I'm going to paraphrase because I don't know the transcript but ‑‑ about how a new station coming to the market could possibly upset the status quo as it relates to public service groups in Regina getting their support from the incumbent broadcasters.
LISTNUM 95 \l 15465 There was a mention made that community and business leaders were concerned about their advertising messages being deluded, that they would lose their easy access to interviews and advertising opportunities on the incumbent radio stations, particularity the Rawlco stations and that ‑‑ I believe it was mentioned that it would complicate their radio buying. Newcap does not believe that to be true at all.
LISTNUM 95 \l 15466 I don't really know what these folks were told, if anything, but that does not seem to be based in fact at all. It's our opinion that more radio in a community offers more avenues for service and more access, not less. And also it's been our experience in other markets where we operate where new applicants have received licences and, all of a sudden, we're on the other end and we're facing new emerging competition in markets, that a couple of things happen.
LISTNUM 95 \l 15467 Number one, we get a lot better very quickly at what we do because competition always makes everybody keener and sharper and more eager to please, and it's not that we weren't doing a good job before, as the incumbent broadcasters are here, but when new competition arrives, everybody moves their game up a level. At least that's been our experience.
LISTNUM 95 \l 15468 And secondarily, we found that our level of service to the community, public service groups, not‑for‑profit groups and charities also increased because there were more radio stations in the market, looking to generate goodwill and build themselves a business. So just as a word to the business and community leaders in Regina, that we believe the exact opposite will be true in Regina where more radio service will mean more access and more opportunity for some of these not‑for‑profit groups.
LISTNUM 95 \l 15469 And there are probably some out there that don't get their fair share of awareness because there's just not enough time in a day on six radio stations in a market to make everybody happy, and extra radio will give some of those folks an opportunity to be heard.
LISTNUM 95 \l 15470 Mr. Pringle on the Rawlco panel made some observations about the music that Newcap was proposing for the market place, which is an oldies based classic hit station, and I think Mr. Pringle said something to the effect that the major music genres in the Regina market are covered with stations playing the country, pop and rock. And while I will agree with him to some point that the six stations in the marketplace do play some of the songs that we are proposing to play, no one radio station in the market even comes close to playing a meaningful or substantive amount of the kinds of music that we're proposing as a format, and I just wanted to get that on the record. You could cherry‑pick, playlist on stations and hear songs from time to time and go, well, that's an oldie, but it's not an oldies based classic hits radio station.
LISTNUM 95 \l 15471 Mr. Pringle also mentioned that the oldies formatting ‑‑ I think his quote was, "Stations in Canada are bailing on the oldies format." And there's some truth to that in Canada, but it's for a different reason than you might think. Stations are leaving the oldies format in Canada largely because they have been relegated to the AM band because of current regulations for the CRTC. And we all know where music on the AM is going. Now, and into the future, it's becoming less and less of a viable prospect for a radio station playing music.
LISTNUM 95 \l 15472 Although there are certainly some success stories, and we have one of them in Camrose with CFCW playing country, but it's certainly targeted at a 45‑plus audience. But oldies is still a very viable format for adults aged 45 to 64. And to have it as part of an oldies based classic hits format on the FM band, we're very confident that there will be a great market for that radio station, and the research certainly indicates that.
LISTNUM 95 \l 15473 And then finally, very briefly, Mr. Rawlinson was speaking as part of his intervention that even though the economic indicators for Regina look favourable for the future ‑‑ and I'm paraphrasing again, not quoting ‑‑ but he's heard this before. They've heard ‑‑ we've heard these things in the past about Regina, and sometimes they didn't quite turn out that way, or to be true.
LISTNUM 95 \l 15474 And all we would have to say to respond to that is that even if it is true and it may well be true, during those periods of time the incumbent broadcasters have continued to do business in this marketplace and they made a profit, even if that profit is somewhat below the Canadian average, there's all sorts of reasons how those numbers come to be what they are, but they are in business and having some success.
LISTNUM 95 \l 15475 The Saskatchewan Government is certainly bullish on the economy and the future of this province, and I'm sure Regina and Saskatoon in particular because they're the major centres. I noticed watching a hockey game a couple of weeks ago, the Saskatchewan Government advertising that we should all consider relocating and opening up a business in Saskatchewan because the future is bright.
LISTNUM 95 \l 15476 I've seen the newspaper ads in national newspapers as well and I would sum up only by saying that we would like to take the province up on their invitation to open a business in Saskatchewan and we would like to do it as soon as possible.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15477 MR. MAHEU: Thank you very much.
LISTNUM 95 \l 15478 If you have any questions, I'd be happen to answer them.
LISTNUM 95 \l 15479 THE CHAIRPERSON: Thank you, Mr. Maheu. Madam Chair ‑‑ Madam Secretary...?
LISTNUM 95 \l 15480 THE SECRETARY: I get another promotion. Thank you, but I won't take your job.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15481 THE SECRETARY: Before we close the proceedings for the Regina applications, I'd just like to indicate for the record that AVR has filed with the panel the AVR program descriptors had ‑‑ they had undertook to do. They will be placed on ‑‑ this will be placed on their application file.
LISTNUM 95 \l 15482 This completes the considerations of items 10 to 16 of the agenda, Madam Chair, and we're ready to proceed with the Saskatoon market if you wish.
LISTNUM 95 \l 15483 THE CHAIRPERSON: I'm happy to announce that volume 3 is now finished, of the evidence, and we're moving north two and a half hours. So Mr. Maheu, do you want a few ‑‑ ten minutes to set up, and then we can go to Saskatoon?
LISTNUM 95 \l 15484 Thank you.
LISTNUM 95 \l 15485 THE SECRETARY: Madam Chair, if I could ask your indulgence?
LISTNUM 95 \l 15486 THE CHAIRPERSON: Yes.
LISTNUM 95 \l 15487 THE SECRETARY: I was just provided with the Standard Radio spoken‑word commitments that they had promised they would give, so that will also be placed on their application file. Thank you.
LISTNUM 95 \l 15488 THE CHAIRPERSON: Thank you.
‑‑‑ Upon recessing at 1725 / Suspension à 1725
‑‑‑ Upon resuming at 1735 / Reprise à 1735
LISTNUM 95 \l 15489 THE CHAIRPERSON: Order please. Madam Secretary...?
LISTNUM 95 \l 15490 THE SECRETARY: Thank you, Madam Chair.
LISTNUM 95 \l 15491 We are now at the review of the Saskatoon market applications and we will now proceed with item 17 on the agenda, which is an application by Newcap Inc. for a license to operate an English language FM commercial radio programming undertaking in Saskatoon.
LISTNUM 95 \l 15492 The new station would operate on frequency 91.5 megahertz, channel 218C1, and with an effective radiated power of 100,000 watts, non‑directional antenna, antenna height of 179.1 metres. Appearing for the applicant is Mr. Rob Steele who will introduce his colleagues, and you will then have 20 minutes for your presentation.
LISTNUM 95 \l 15493 Mr. Steele...?
PRESENTATION / PRÉSENTATION
LISTNUM 95 \l 15494 MR. STEELE: Thank you very much.
LISTNUM 95 \l 15495 Well, good afternoon, Madam Chair, Members of the Commission, Commission staff. I'm Rob Steele, president and CEO of Newcap, and before we begin our presentation, I'll just re‑introduce our team very briefly this time. To my ‑‑ starting at my right is David Murray, Glenda Spenrath, Mark Maheu, Sue Stevenson and Brad Boechler.
LISTNUM 95 \l 15496 And before we begin our presentation, I would like to put on the record a technical change that we were required to make to our application by Industry Canada. On October 23rd we had sent a letter to the Secretary General indicating that Industry Canada had requested a change in our channel from 218C1 to 218C, and this represents no change to our coverage or our business plan.
LISTNUM 95 \l 15497 I would like to ask Mark Maheu now to present our proposal for a new classic hit station in Saskatoon.
LISTNUM 95 \l 15498 MR. MAHEU: In preparing our application for Saskatoon, Newcap conducted a strategic research study of the marketplace. We surveyed residents aged 18 to 64 about their musical taste and preference to determine what opportunities might exist for a new radio station in Saskatoon.
LISTNUM 95 \l 15499 Newcap tested nine different formats by describing the musical sound and then playing a short montage of that music to each respondent. The music formats most in demand were classic hits being the most popular, followed by classic rock, and then by '60s and '70s oldies.
LISTNUM 95 \l 15500 We then examined only those musical styles that had a strong positive interest from the respondents. The same three formats emerged as the most in demand. '60s and '70s oldies leads the way at 18 percent, classic hits at 15 percent, and classic rock at 11 percent. According to the listeners surveyed, the choice for Saskatoon is clear; '60s and '70s oldies mixed with a pop based classic hits.
LISTNUM 95 \l 15501 In Saskatoon, the oldies based and classic hits formats have strong positive interest from listeners aged 35 to 64 and has a gender split and appeal of 55 percent female and 45 percent male. The format we proposed will be comprised 45 percent with music from the '60s and '70s, the pop oldies from groups like the Mama's and the Papa's, The Beach Boys, The Supremes, and The Guess Who. Fifty‑five percent of the music will come from the pop based classic hits genre from the '80s, '90s and now, from artists like Phil Collins, Tom Cochrane, Elton John and Matt Mays.
LISTNUM 95 \l 15502 The essence of this type of format is up tempo, fun and strongly rooted in the great pop hits the target listener grew up with over the past 40 years. The station will also program a number of music based features designed to entertain and engage listeners. We will air A Year in Your Ear, a review of the music from a certain or particular year and the events and trends that characterized that year.
LISTNUM 95 \l 15503 Sundays from noon until six, it's Psychedelic Sunday with the best of classic rock and classic hits from the psychedelic era, mid '60s through the mid '70s. And weekdays at noon it's The Original Album Alphabet from Astral Weeks to Zooropa. The classic album A to Z each day will go through the alphabet at least ten letters per day.
LISTNUM 95 \l 15504 Oldies based classic hits music is the foundation of our new radio station proposal, but to make our offering complete, we have also proposed an extensive schedule of news and information programming to address the needs and wants of listeners as they tune in throughout the day.
LISTNUM 95 \l 15505 MS STEVENSON: As we pointed out yesterday, radio's biggest advantage is to be resolutely local and live. For this format, it is even more important. The baby boomer audience that we will primarily serve depends significantly on radio for information.
LISTNUM 95 \l 15506 So once again, we decided to increase our news commitment to 5 hours and 45 minutes of which 75 percent would be local, complemented by engaging compelling information, along with community and local entertainment features.
LISTNUM 95 \l 15507 In addition to 81 newscasts per week, our news room of four full‑time and one part‑time journalist will bring context to the news with 35 behind‑the‑news one‑minute public affair segments. And three other features, our listener poll, Live Tonight, and Inside Saskatoon. Our programming staff will develop a number of other features to reach out and involve our listeners, including our community event updates and Your Town.
LISTNUM 95 \l 15508 For our adult audience, the news will contain more than just the day's events. It will also provide investment news for those interested in mutual funds, RRSPs, and the market, health news and tips for the baby boomer population and lifestyle news for an active community. As well, the announcers will be encouraged to go beyond talk about music, weather or traffic, to engage the audience with elements of interest to them.
LISTNUM 95 \l 15509 At Newcap Radio, our corporate philosophy is to give back to each community. We accomplish this in various ways, from Christmas drives for food in Ottawa, our Children's Trust Fund, our VOCM Cares effort in St. John's, or our hugely successful Cures for Kids radiothon and Golf a Kid to Cure. In Saskatoon we will work with local city leaders and charitable organizations to determine the greatest unfilled needs. We will then mobilize our efforts to assist them.
LISTNUM 95 \l 15510 Saskatoon has a number of names including the Bridge City and the Science City, but it also likes to be known as the Festival City. Each summer the city holds many festivals including the SaskTel Jazz Festival, Shakespeare on the Saskatchewan, the Vesna Ukranian celebration and a Saskatoon Fringe Festival. We will promote those cultural events in advance. In addition, we will be on scene with our mobile studio to provide reports and interviews and to help create the buzz that goes along with these festivals. We know that the existing stations in the market already do a great job in this area, but we think another hand can only help.
LISTNUM 95 \l 15511 And now to speak to the economic outlook that makes us confident we can sustain this service, here's Brad Boechler.
LISTNUM 95 \l 15512 MR. BOECHLER: Thanks, Sue. Madam Chair, we made the case for a positive economic outlook for Saskatchewan. And if you thought I was optimistic yesterday, I'm even more encouraged about what's going on north on Highway 11.
LISTNUM 95 \l 15513 While the population's ‑‑ while the province's population was declining in the late 1990s, the bright spot was Saskatoon. FP Markets indicates that the city grew 2.5 percent between 2001 and 2006 and projects a further growth of 2004 by 2011. With a population of 237,000 people, Saskatoon has 35,000 more people than Regina. Put another way, Saskatoon is the size of Regina and Moose Jaw combined.
LISTNUM 95 \l 15514 In 2006 total income in Saskatoon will be 11 percent higher than Regina, and FP Markets projects that it will increase a further 9 percent from 2006 to 2008, and by a total of 22 percent by 2011.
LISTNUM 95 \l 15515 Retail sales is also an area where Saskatoon outpaces Regina to some extent. In 2006 retail sales will exceed in Regina by 13 percent, the $2.4 billion in retail sales in 2006 are projected to increase by 9 percent by 2008 and by 24 percent by 2011. And this will have a direct impact on radio revenues.
LISTNUM 95 \l 15516 While Saskatoon has a larger population, higher incomes and greater retail sales, it has the same number of commercial radio stations as Regina. And while we don't have the access to the Commission's financial returns for the market, we conclude that radio revenues and profits will reflect the reality.
LISTNUM 95 \l 15517 We are also convinced that the citizens of Saskatoon are even more underserved than those in Regina. And if you recall, and it appears that more than a few people in the room do, I gave you few examples of other markets when we presented our application for Regina. There are almost 40,000 people per radio situation in Saskatoon compared to the lower numbers in the other markets we cited yesterday, including Regina with one station for 34,000.
LISTNUM 95 \l 15518 We believe that Saskatoon residents have the right for a greater range of radio choice and editorial diversity to the extent that a market can support it, and this one can definitely support more radio.
LISTNUM 95 \l 15519 MR. MAHEU: When you are running a radio station focused on older music, you have to look at the Canadian Talent Development activities a little differently than you would on a current based music radio station. So while on news stations like our alternative rock station in Ottawa or our newly licensed Triple A station in Calgary, we can invest in trying to break new bands, and that is not the nature of our audience or our format that we're proposing for Saskatoon.
LISTNUM 95 \l 15520 Instead, we believe that our best contribution can be one to the grassroots, the new learners in music and those continuing to learn, as well as a national organization that helps take emerging acts to the next level.
LISTNUM 95 \l 15521 So we're proposing to devote $215,000 each year, or just a million and a half dollars over the course of the first licence term, to the development of Canadian talent. $90,000 each year will go to the Radio Starmaker Fund, and we have asked them to direct that money to Saskatoon artists on an as‑possible basis.
LISTNUM 95 \l 15522 SaskMusic will receive $85,000 each year from Newcap for two streams of their programs; for emerging artists and for new artists. The emerging artist stream will be directed toward educational programs on how to break into foreign markets, including funding to attend international music trade fairs. The new artist stream will include an education strand as well for live performance development and for public relations.
LISTNUM 95 \l 15523 Madam Chair, you have heard us say this before, but we believe it, that it bears repeating again. In an environment characterized by an increasing competition for listening time, with increasingly narrow music niches being available on the Internet and from satellite, not to mention today's technologies like 95 radio stations, or whatever, being available on your cell phone, local radio needs to break some new ground in some new markets.
LISTNUM 95 \l 15524 Our best chance to fill the most popular sounds that people want to hear is with local radio, compelling radio with high quality stereo sound and local content that only a local radio station can deliver. More stations providing greater choices to listeners means a stronger, sustainable future for local radio.
LISTNUM 95 \l 15525 Earlier Brad Boechler spoke of the prosperity in Saskatoon. The clearest witness of that prosperity is the number of applications that your call for that market has attracted. The existing broadcasters in Saskatoon do a great job. Their letters of support attest to that. We are not here to ask for a licence because they're not doing a good job, not at all. We are asking to be allowed to compete with them with a format that is currently not available in the market, that will expand listening choice, provide a new editorial voice to Saskatoon and grow radio's overall share of the advertising pie. We believe that we have provided an excellent application for Saskatoon. A strong business plan ‑‑
LISTNUM 95 \l 15526 THE CHAIRPERSON: I hate to ask you to stay again, Mr. Maheu. The ‑‑ we have problems again.
LISTNUM 95 \l 15527 MR. MAHEU: Technical difficulties. Please stand by?
‑‑‑ Technical difficulties / Problèmes techniques
LISTNUM 95 \l 15528 MR. MAHEU: Is that okay, Madam Chair, to ‑‑
LISTNUM 95 \l 15529 THE CHAIRPERSON: Yes, thank you. Please ‑‑
LISTNUM 95 \l 15530 MR. MAHEU: No problem.
LISTNUM 95 \l 15531 THE CHAIRPERSON: Please go ahead.
LISTNUM 95 \l 15532 MR. MAHEU: We believe that Newcap has provided an excellent application for Saskatoon. We have a strong business plan based on a comprehensive research study canvassing multiple formats in the marketplace. We provide a strong local programming proposal with more than adequate program spending to meet our proposal's needs. We've made a significant contribution to the development of Canadian talent, $1.5 million over the course of the first seven years of licence.
LISTNUM 95 \l 15533 I'd like to thank you for our time and attention. We'd be pleased to answer any questions you might have about our proposal.
LISTNUM 95 \l 15534 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 15535 Commissioner Pennefather...?
LISTNUM 95 \l 15536 COMMISSIONER PENNEFATHER: The journey continues. Good evening, ladies and gentlemen. We'll discuss your application beginning with programming and moving on through the talent development and economic analysis, and perhaps end up with a discussion similar to the one we had regarding the Regina market. And while there are similar questions, we are in a new market. We have moved along to Saskatoon, so I'd appreciate wherever possible that any general comments that are economic, et cetera, we add some precision as far as Saskatoon is concerned.
LISTNUM 95 \l 15537 Looking at the programming, the first area, I'd like to just touch base on ‑‑ we've talked about this before, is the indicated programming. And just to clarify on the August 14th deficiency, you mentioned ‑‑ I think it's a similar issue we raised before in the other application. You've indicated nearly a hundred percent of your programming will be locally produced with the exception of some syndicated. So could you clarify which parts of your feature programming might be syndicated, how many hours of programming would this syndication represent, do you envision any other syndicated programming, and will it be produced nationally or internationally?
LISTNUM 95 \l 15538 MR. MAHEU: Thank you.
LISTNUM 95 \l 15539 Our approach right now for our proposal in Saskatoon for the radio station is to use a minimum amount of syndicating programming. As it stands right now, we'd like to leave it on the table as an option to run some, but on a going‑forward basis to give you a sense of how local and how much originating programming is going to happen on the radio station, you know, our best estimate would be 98 percent of what we do on the radio station would be locally produced or live programming in Saskatoon.
LISTNUM 95 \l 15540 The only time that we would consider running some syndicated programming ‑‑ and we wouldn't be able to tell you with great specificity at this point whether it be international or domestically produced syndicated programming ‑‑ is there are some syndicated program in ‑‑ programs available that touch on the oldies genre and the classic hits genre. They're more rockumentaries or documentary type of programs, instalment programs that could be aired on the radio station over a number of weeks.
LISTNUM 95 \l 15541 And if we did run those programs, I would say it would be less than two hours a week of syndicated programming. We've also proposed that the radio station not implement any voice tracking between 6 a.m. and midnight on a Monday‑through‑Sunday basis, that we are live or live to air with people in the studio.
LISTNUM 95 \l 15542 And the only time we would not have somebody on the radio, quote on quote, behind a microphone is when we are running some station produced programming. Psychedelic Sunday, for instance, could be a program that would be possibly hosted by a morning team or an afternoon or a music department person that would not be there doing the show life per se, but it would be produced in station, aired on the station on the weekend, and there would be somebody in the studio running that program and available to do surveillance information and service on the air on a live basis.
LISTNUM 95 \l 15543 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 15544 That helps amplify what you have in response to question 3 wherein you did say, we'll be nearly a hundred percent, include one or two hours per week, but it helps to understand that you're not talking about a hundred percent period.
LISTNUM 95 \l 15545 Moving on to news, information and within the spoken‑word programming, we have your attachment again ‑‑ and thank you for that ‑‑ laying out the scheduled news and the non‑news. A similar question that I asked, I think yesterday, was the increase from your original application in terms of the numbers of news packages which would have been produced by two journalist announcers and one news director. Considering the increase, would this result in an increase in staff and numbers of journalists you propose to hire? And if so, would the financial statement be revised?
LISTNUM 95 \l 15546 MR. MAHEU: The financial statement and our proposal for program spend and our business plan would remain as it is. We believe that we have an adequate number of people in those news positions to accomplish what we've proposed, even with the increase up to 5 hours and 45 minutes of news and information per week, and then a total of 20 hours of spoken word, so there would be no change to our business plan.
LISTNUM 95 \l 15547 COMMISSIONER PENNEFATHER: We discussed previously your approach which is the same, the structure is the same; scheduled news and then non‑news. And your strategy, I believe, is the same to increase the news component as a result of the current context for radio ‑‑ in the radio environment, and we discussed why you didn't increase the non‑news section as such. Let me ask a slightly different question, looking ahead ‑‑ and we'll discuss this in more detail ‑‑ we have a different median age here and a different demographic. Why the same approach?
LISTNUM 95 \l 15548 MR. MAHEU: The demographic for this radio station is very similar to another proposal you've heard recently. What's different about this one, and we found it quite interesting that Saskatoon, in terms of its music tastes and the type of people that would listen to this format, is somewhat different than what we've found in other markets. And there's no easy way to explain it other than the average age in Saskatoon generally is slightly younger than other markets in Saskatchewan, including Regina.
LISTNUM 95 \l 15549 But what's interesting about this one is that there seems to be equal appeal for this format across the three demographic groups of 35‑44, 45‑54 and 55 to 64. The other difference this as well, although the median age changes on this one from 48 to 49, it ‑‑ the interesting thing about it is that the skew is a little bit different. This one is more female skewed than male. The other proposal that we had talked about was more male skewed, and I think that is basically a function of the marketplace and what music and what formats are available in the market. It's slightly different or perceived to be slightly different by listeners in Saskatoon, and that's why we believe that the appeal of this format is a little more female skewed in terms of what impact that has on the news ‑‑
LISTNUM 95 \l 15550 COMMISSIONER PENNEFATHER: Yes ‑‑
LISTNUM 95 \l 15551 MR. MAHEU: ‑‑ and information to ‑‑
LISTNUM 95 \l 15552 COMMISSIONER PENNEFATHER: ‑‑ that was my question.
LISTNUM 95 \l 15553 MR. MAHEU: Sorry, it's a long proceed to get to the question you asked ‑‑ is people who enjoy this kind of music are of a certain age predominantly, and the real heart and soul of the format, although it appeals 35 to 64, the real heart and soul appeal of the radio station is in that 45 to 59 age group, so it's very similar to the other proposal.
LISTNUM 95 \l 15554 And although it's skewed slightly more to women than to men would ‑‑ the only thing that would change in the way we would approach the news ‑‑ we would still take the same approach in the news and information that we have in other proposals, but given the fact that the target is slightly more female skewed than the male will have an impact on the topicality that we employ on the radio station as some of the things we talk about, and it would also probably manifest itself ‑‑ and I'm going to ask Sue to touch on this briefly, too. It would manifest itself likely in some of the feature programming that we do and some of the things that we cover and the topics that we cover to make sure that we are delivering on the needs and wants of a female based target audience on the radio station.
LISTNUM 95 \l 15555 But it is ‑‑ it's still pretty close to 50/50, so if we were to be operating this radio station in Saskatoon with this target group and operating another one with the exact same format in another market, the news and information and the spoken word on the radio stations, the amount is the same, but the topics and the issues that we would focus on or do more of will be based on the targeting of the radio station.
LISTNUM 95 \l 15556 MS STEVENSON: All right, as Mark mentioned, we would skew the topics on the radio station somewhat. That's not to say we wouldn't touch on a number of similar topics, money matters, but perhaps health and lifestyle issues might get a more prominent role because we're skewed more female. You know, there's a bit of a different dynamic, and our programming would have to reflect that.
LISTNUM 95 \l 15557 COMMISSIONER PENNEFATHER: That's understood. It was just the pattern is exactly the same, so I just wanted to fill in the blanks a little bit to understand why you felt it would work in a similar manner.
LISTNUM 95 \l 15558 The staff of journalists, will they be responsible, as well, as for the scheduled news for the non‑news component?
LISTNUM 95 \l 15559 MS STEVENSON: As we have talked about before, they would be responsible of course for all the newscasts, and there are a number of programs they would be responsible for; the listener line, the public affairs program, and Live Tonight. The community events and the Your Town features chores would probably fall more into the programming side of things.
LISTNUM 95 \l 15560 COMMISSIONER PENNEFATHER: And when it comes to the listener poll and how it will be integrated into your programming, could you describe that to us? And who would be responsible for that?
LISTNUM 95 \l 15561 MS STEVENSON: That would come under the news room.
LISTNUM 95 \l 15562 COMMISSIONER PENNEFATHER: The news.
LISTNUM 95 \l 15563 MS STEVENSON: Definitely news. It's something that you have to be careful with to make sure that nothing untoward gets on the air, so that would definitely have to be something the news room takes responsibility for. The announcers could help to promote the event and build it up and talk about it, but ultimately it would be the news room who would be responsible for what gets on the air.
LISTNUM 95 \l 15564 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 15565 Let's go to the format again. And let me put it this way, in the supplementary brief on page 7, we started out with this as a broad based classics format operating a variety of music from classic hits to more of an oldies offering music from the '60s and '70s. And in fact in your supplementary brief you divided the decades; the '60s at 20 percent, the '70s at 20 percent, the '80s at 50, and the '90s to present at 10.
LISTNUM 95 \l 15566 I think what we have ‑‑ what you presented today is called olders based and classic hits and I sense a shift in that breakdown. And can you explain that and can you explain why you shifted?
LISTNUM 95 \l 15567 Basically, I think, looking very quickly at your speaking notes, you have '60s and 70s at 45 percent, '80s and '90s at 55. There's been a slight adjustment in the break ‑‑ the way the decades will be distributed so ‑‑ and I think the word oldies and classic hits was different from broad based.
LISTNUM 95 \l 15568 MR. MAHEU: Sure. I'd like to address the name of it first. In terms of broad base classic hits, that was the ‑‑ that's what we called it as a format monicker or a name in the supplementary brief. In our opening remarks we called it oldies based classic hits, just ‑‑ we thought it would help clarify or give a better understanding of what ‑‑ really what the radio station would sound like and what it would be comprised of, so it's really a label more than anything else. And broad based classics or oldies based classic hits are just industry terms that basically describe the same thing.
LISTNUM 95 \l 15569 Going to your question on the percentages of music and what genre they're coming from or what era they're coming from, since we filed our research for Saskatoon ‑‑ and we filed it some time ago ‑‑ we've had the opportunity in a number of our markets, but especially in Charlottetown, to have real hands‑on, real world experience with this format that we did not have when we put this supplementary brief together.
LISTNUM 95 \l 15570 It's always one thing to see research on a piece of paper and a format idea. It's quite another to implement it on a radio station and hear it come to life and see what happens to it.
LISTNUM 95 \l 15571 Very briefly, in Charlottetown, Prince Edward Island, we operated ‑‑ and still do ‑‑ CHTN Radio. We applied for a conversion from AM to FM. CHTN was one of those last of its kind oldies radio stations on the AM band, playing predominantly music from the '60s and '70s. It was just a great straight‑ahead oldie station because it could be.
LISTNUM 95 \l 15572 The Commission gave us permission to convert it to FM, which was good news in one way, that we were going to be able to compete with other radio stations, but the bad news was we'd have to alter the format because we couldn't do the pure oldies format on the FM band. So what we did there is ‑‑ you know, we had done our research in Saskatoon and we saw at least ‑‑ I'm not saying Saskatoon to Charlottetown are the same by any stretch, but we thought, well, I think we can supplement the oldies format with the great pop classic hits from the '80s and the '90s. And we've done that in Charlottetown and, you know, the result is a radio station called Ocean FM or Ocean 100 in Charlottetown, and it is programming right now about 45 percent from the '60s and '70s and about 55 percent from the '80s and '90s. We stream it on line. You can check it out yourself. It's a great sounding radio station and it's working.
LISTNUM 95 \l 15573 The response that we've had to this radio station from local islanders is unbelievable. It's an overwhelming response, better than we anticipated because we thought folks who just loved oldies were going to be mad that we weren't just playing '60s and '70s music anymore, and we were going to have to explain to them why we couldn't. But it's worked out quite well. The radio station sounds good and it ‑‑ and the response is excellent.
LISTNUM 95 \l 15574 And so given that experience and seeing it work in a real world, real life example in a market of 70,000 people gave us pause to, you know, kind of rename the format oldies based classic hits and focus our Saskatoon proposition a little more in that way.
LISTNUM 95 \l 15575 COMMISSIONER PENNEFATHER: It may ‑‑ yes, I can see why you see it working as a formula, but if you look at what's currently in this market ‑‑ let's look at it from that point of view, why you thought it would work. Considering what's here currently, it would appear not only to cover some of the same decades but also skew females. So why what you are offering would be different and offer diversity?
LISTNUM 95 \l 15576 MR. MAHEU: Well, it's certainly a format that is not being done as a pure format in the Saskatoon marketplace as there are in other markets. There are radio stations that play bits and pieces of format genre. You're going to find radio stations in the AC format or hot AC that do play some classic hits material. You'll find radio stations in the softer AC formats that also play some classic hits material or oldies material. You'll find classic rock stations that do play some oldies material and some classic hits, but that's not what they specialize in. It's not what they're famous for, and it's not the number one reason people tune those radio stations in.
LISTNUM 95 \l 15577 How we're different from every other incumbent radio station in Saskatoon is we're ‑‑ we would be the only radio station that would be focused purely on the oldies from the '60s and '70s and classic hits combined. And that combination, through the research that we've done, seems to be the most popular choice that Saskatoon listeners are saying they would like to have in the marketplace, would listen to most and could become their very favourite radio station.
LISTNUM 95 \l 15578 And when we're looking at an 18 percent or format void for oldies from the '60s and '70s, in radio terms in a market the size of Saskatoon, an 18 percent hole is a big hole. When we do research in markets, when we see an opportunity that big, it's ‑‑ we call it a slam dunk. It's ‑‑ that hole is there, and they are ready for this radio station, and it could do very well.
LISTNUM 95 \l 15579 COMMISSIONER PENNEFATHER: So it brings me to, again, this ‑‑ the median age 49 years according to your list here, which explains the move towards the oldies side of the equation, and that's the connection there ‑‑
LISTNUM 95 \l 15580 MR. MAHEU: It really is.
LISTNUM 95 \l 15581 COMMISSIONER PENNEFATHER: ‑‑ as opposed to pop and adult contemporary and so on.
LISTNUM 95 \l 15582 MR. MAHEU: Exactly. The first people that will gravitate to this radio station the quickest will be people with a very high predisposition to be first choice favourite users of oldies music. So those folks are going to be the first folks that discover this radio station and go "Oh, you know, there's a great new radio station playing music from the '60s and '70s." Again, I have to say that, given the way the regulations are right now on the hit versus non‑hit, we're going to ‑‑ you know, obviously we say it's 45 percent to make sure that we have a little room there so that we don't break rules.
LISTNUM 95 \l 15583 But, you know, we want to take the radio station as much ‑‑ as close to oldies as we possibly can and stay within the CRTC rules. But the market's telling us pretty clearly if the rule wasn't in place, this would be an oldies radio station predominantly '60s and '70s, but we've had to put that extra '80s and a little bit of '90s in to cover off and make it work.
LISTNUM 95 \l 15584 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 15585 I ‑‑ that's very helpful. Thank you. Moving to CTD, first I just wanted to clarify in your remarks this evening in describing your 1.5 ‑‑ just over, I think it's 1.505 ‑‑ you mention the 90,000 to Starmaker, and we'll get back to the details.
LISTNUM 95 \l 15586 You mention the 85,000 annually to the two stream of programs, but you didn't mention the 40,000 to the University of Saskatchewan which is part of your proposal as we have it to date. Is there a reason for that? Is there a change or was that just a mistake?
LISTNUM 95 \l 15587 MR. BOECHLER: That is an oversight on our part.
LISTNUM 95 \l 15588 COMMISSIONER PENNEFATHER: Okay.
LISTNUM 95 \l 15589 MR. BOECHLER: The University of Saskatchewan in fact is included in our CDT program. Letters sent from Dean McNeill, head of the University of Saskatchewan music department, dated October 3rd, outlines the details.
LISTNUM 95 \l 15590 COMMISSIONER PENNEFATHER: Yes, I have that. I just wanted to be sure, and staff brought to my attention that it had ‑‑ it wasn't in the presentation, so we want to be careful that ‑‑
LISTNUM 95 \l 15591 MR. BOECHLER: Absolutely. Our ‑‑
LISTNUM 95 \l 15592 COMMISSIONER PENNEFATHER: ‑‑ it hasn't been ‑‑
LISTNUM 95 \l 15593 MR. BOECHLER: ‑‑ apologies on that.
LISTNUM 95 \l 15594 COMMISSIONER PENNEFATHER: ‑‑ and the (off mic...)
LISTNUM 95 \l 15595 MR. BOECHLER: It is exactly.
LISTNUM 95 \l 15596 COMMISSIONER PENNEFATHER: Staying on that component of your CTD, again we're looking at a detailed description in the deficiencies of the way the funding would be disbursed through top scholarships and festivals and the breakdown. Is, again, the 40,000 to be split equally between scholarships and support for music festivals? Is it still an even breakdown?
LISTNUM 95 \l 15597 MR. BOECHLER: In my conversations with Dean McNeill, he is perfectly comfortable with that. One of the things that ‑‑ the only thing that we touched about regarding scholarship would ‑‑ if he had the flexibility based on need, based on the year, do they ‑‑ you know, if we start them out at 4 or $5,000 scholarships annually, can they go to 210 based on needs, wants, desires of the university. And I said, as long as we work through their scholarship department at the University of Saskatchewan and they fulfil our mandate with the CRTC and Canadian Talent Development, we would have no issues with it.
LISTNUM 95 \l 15598 COMMISSIONER PENNEFATHER: So ‑‑ and that kind of discussion has taken place, that even with that flexibility, you have to have some assurance that the funds ‑‑
LISTNUM 95 \l 15599 MR. BOECHLER: Yes.
LISTNUM 95 \l 15600 COMMISSIONER PENNEFATHER: ‑‑ will go in these?
LISTNUM 95 \l 15601 MR. BOECHLER: Yes
LISTNUM 95 \l 15602 COMMISSIONER PENNEFATHER: And do you have that agreement in writing ‑‑
LISTNUM 95 \l 15603 MR. BOECHLER: We ‑‑
LISTNUM 95 \l 15604 COMMISSIONER PENNEFATHER: ‑‑ with the university?
LISTNUM 95 \l 15605 MR. BOECHLER: ‑‑ we have it in agreement in principle from the standpoint if we are fortunate to receive the licence, then we sit down and we'll have that all organized and in writing from the university.
LISTNUM 95 \l 15606 COMMISSIONER PENNEFATHER: Okay. Similar question as per the proposal yesterday for Regina, in an earlier letter from the Commission on 15 September 2005, which you answered September 30th, 2005, there's a detailed breakdown again of the established and merging artist programs. And again, that has increased by 15,000, and I don't know if we've received a revised budget breakdown, and if you could provide that?
LISTNUM 95 \l 15607 MS SPENRATH: Yes, I have it prepared, and we can provide it for you at your convenience.
LISTNUM 95 \l 15608 COMMISSIONER PENNEFATHER: Thank you. It's ready immediately?
LISTNUM 95 \l 15609 MR. BOECHLER: Yes, it is.
‑‑‑ Undertaking / Engagement
LISTNUM 95 \l 15610 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 15611 Did you the address contribution to East Coast artists?
LISTNUM 95 \l 15612 MR. BOECHLER: Again ‑‑
LISTNUM 95 \l 15613 COMMISSIONER PENNEFATHER: Sorry, East Coast. Nothing against the East Coast but ‑‑
LISTNUM 95 \l 15614 MR. BOECHLER: Yes.
LISTNUM 95 \l 15615 COMMISSIONER PENNEFATHER: And the administration costs, will you also explain how that works in this budget breakdown?
LISTNUM 95 \l 15616 MR. MAHEU: The budget breakdown that you're going to receive does break down the administrative costs to give the Commission a sense of what those administration costs are made up of. So there is some detail in the budget.
LISTNUM 95 \l 15617 COMMISSIONER PENNEFATHER: So we can assess if it's appropriate? And ‑‑
LISTNUM 95 \l 15618 MR. MAHEU: Absolutely.
LISTNUM 95 \l 15619 COMMISSIONER PENNEFATHER: ‑‑ find the ‑‑ finally, similarly in this breakdown there are ‑‑ there is funding to artist representatives such as published ‑‑ publicists and managers. Do you have an explanation for those costs as well?
LISTNUM 95 \l 15620 MR. BOECHLER: In referring to ‑‑ I'm sorry?
LISTNUM 95 \l 15621 COMMISSIONER PENNEFATHER: In the breakdown you can see not only administration costs, but some artist management ‑‑ artist/management travel, so the question just is to clarify whether monies are going to artists or their managers ‑‑
LISTNUM 95 \l 15622 MR. BOECHLER: No, they ‑‑ the money there would be going to the artists.
LISTNUM 95 \l 15623 COMMISSIONER PENNEFATHER: So if you could amplify this breakdown not only in terms of costs, but in terms of an explanation of that?
LISTNUM 95 \l 15624 MR. BOECHLER: Sure.
LISTNUM 95 \l 15625 COMMISSIONER PENNEFATHER: That would be very helpful.
LISTNUM 95 \l 15626 MR. BOECHLER: Absolutely.
LISTNUM 95 \l 15627 COMMISSIONER PENNEFATHER: And that would ‑‑
LISTNUM 95 \l 15628 MS SPENRATH: Yes ‑‑
LISTNUM 95 \l 15629 COMMISSIONER PENNEFATHER: ‑‑ apply to the other breakdown.
LISTNUM 95 \l 15630 MS SPENRATH: I'm sorry. I can file that immediately after this presentation.
LISTNUM 95 \l 15631 COMMISSIONER PENNEFATHER: I'm sorry, I didn't hear you.
LISTNUM 95 \l 15632 MS SPENRATH: I can file that immediately after this presentation.
‑‑‑ Undertaking / Engagement
LISTNUM 95 \l 15633 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 15634 Now, the ‑‑ we're moving into the final section and we'll go back to format and ask you a little more precisely the impact of potential licensing of your oldies/classic hits station. And you indicate in your application that 35 percent of your advertising revenues in year 1 would come from existing stations, so hence there is some impact vis‑a‑vis the format.
LISTNUM 95 \l 15635 How do you assess the potential of the classic hits, now oldies/classic hits format to attract new advertisers to radio compared with other formats?
LISTNUM 95 \l 15636 MR. MAHEU: Well, a couple of ways, and in a moment I'm going to ask Brad Boechler to speak to that a little more specifically. Any new radio station that signs on in the market has two challenges facing it, and it's the same for everyone.
LISTNUM 95 \l 15637 First of all, you have to go out and generate some sort of audience. You've got to let people know that you're there, and you've got to build an audience of listenership.
LISTNUM 95 \l 15638 And your second big challenge is to go out and build goodwill in the community and generate some revenue in sales, so those are two separate and distinct streams of work that need to be done for a radio station. The easier part is getting a new radio station on the air, promoting it and generating an audience. The tough part is to then monetize it.
LISTNUM 95 \l 15639 We believe that our business plan that put together is quite modest and very achievable. The 35 percent figure coming from other radio stations is a big number ‑‑ a big percentage of a smaller number though. In terms of the revenue that we've projected for first year in the marketplace, 35 percent of that is rather small.
LISTNUM 95 \l 15640 As a matter of fact, you know, based on what we project the market is doing right now, it's probably a week and a half's worth of revenue in the radio market, so it's not significant.
LISTNUM 95 \l 15641 We do believe that the economic activity and the robust vitality that the community is experiencing right now lends itself to a new entrant being able to go out and knock on some doors and generate radio advertising revenue that is not currently being received by the incumbent radio stations.
LISTNUM 95 \l 15642 The fact that we're bringing this format, if we're licensed to the marketplace, also puts us into a unique position to be able to bring a proposition to advertisers to reach a group of people that presently are not well served or satisfied because this format is not available. This is a very lucrative audience to advertisers, 35 to 64‑year‑olds in terms of disposable income. And we believe that ‑‑ and again, being the new kid on the block, so to speak in Saskatoon, if we're fortunate enough, we're going to be knocking on some doors that quite possibly haven't been knocked on in a little while, and our rates are not going to be as high as the incumbent radio stations until we have some sort of track record.
LISTNUM 95 \l 15643 So we believe we've got a really good value proposition for the marketplace, and it's to be a matter of doing a good job on the air and the hard work on the street. Brad, you may want to add to that.
LISTNUM 95 \l 15644 MR. BOECHLER: Sure. Thanks, Mark. We are estimating the radio market value to be worth currently about 16 and a half to $17 million on the high side, and that's current. Our first year, as Mark ‑‑ our first year budget, as Mark has alluded to, is about 1.4 all in, national retail combined. And again, we are ‑‑ we would be a standalone in a market made up of strong consolidated operations. We will be new in the market. We have to earn our way to credibility with the advertisers. We ‑‑ it's going to take us longer, as experience has shown us, as we've launched new stations and new operations, another market, that the sales will lag behind the acceptance of the radio station from a listener standpoint.
LISTNUM 95 \l 15645 The other thing we add, and it's a similar example to yesterday, if we take two years from this point forward, we would be on the air sometime, and if were fortunate ‑‑ not to be presumptuous, we would be on the air sometime in 2008. Based on what we've shared with you earlier, based on projection growths, we predict the market will be worth about $18 million, $18.5 million in ‑‑ by the year 2008 whether you ‑‑ whether a new licence is granted in the market or not.
LISTNUM 95 \l 15646 And Glenda Spenrath has some more economic data for us that can tend to back up that number for us and ‑‑ as we're not privy to the numbers in the marketplace.
LISTNUM 95 \l 15647 MS SPENRATH: Thanks, Brad. Yes, I did look at some other economic indicators for the market of Saskatoon. And in particular, I looked at the new housing starts and I do have an article from the October 11th Saskatoon Star Phoenix in which they quote from the Canada Mortgage and Housing Corporation. The new housing starts in Saskatoon for the first nine months of 2006 are up 32.8 percent over last year. And they go on to state that in 2006, 53 percent of the new housing starts in the Province of Saskatchewan in the first nine months have occurred in Saskatoon, so it's robust.
LISTNUM 95 \l 15648 And in addition to that, I also looked at the construction price index, the new housing price index published by Stats Canada for the year ended ‑‑ for the 12 months ended August 31st of '06. If you pull out Calgary and Edmonton, which are clearly anomalies, and they looked at 19 other metro markets within Canada, Regina and Saskatoon were on top, number 1, as far as the new housing price index goes.
LISTNUM 95 \l 15649 And I did actually step outside of the statistics for a moment, and when I was driving down here ‑‑ I used to live in Saskatoon for a number of years, and so I stopped in to visit a colleague at Pricewaterhouse Coopers when I was passing through, and he urged me to take a look at some of the new areas in town because so much has changed since I was there.
LISTNUM 95 \l 15650 And so I drove down on the south end of Clarence Avenue and he said that the city is putting in the infrastructure for an area to house 10,000 new homes. And so I took a drive down there, and in addition to the homes are new car dealerships. And a lot of the homes in the area, the infrastructure is going in and the new homes are going in. And directly across the road from it, backing onto the Willows Golf Course is a whole new area of executive homes. So, you know, things are marching along, and it's very good there.
LISTNUM 95 \l 15651 In addition to that, again, I looked at population. I've been ‑‑ I looked at 2005's population, and what the analysts were expecting to happen a year ago ‑‑ and they were looking ahead in Saskatoon for a five‑year period, at that point they were projecting increases of .8 percent in the population for Saskatoon, only a year later in 2006, they've now revised their projections upward to a population growth of 2.4 percent. So they've increased their projections threefold in this one‑year period, looking forward five years. So I really do believe the vital signs are very strong for Saskatoon.
LISTNUM 95 \l 15652 COMMISSIONER PENNEFATHER: Thank you.
LISTNUM 95 \l 15653 That's very helpful. As you know, there's going to be different versions of that outlook, and you provided some of that ‑‑ those comments in your remarks here.
LISTNUM 95 \l 15654 Certainly one of ‑‑ as Vice‑Chair Arpin said a little while ago, one of the key points of this hearing, and now in Saskatoon as well, is the discussion of the indicators that we should use to assess markets of the impact that licensing one or two, or any or none, commercial stations will have on the market and the capacity of the market to absorb a new licence.
LISTNUM 95 \l 15655 Again, if we can speak to that point and look at the Saskatoon market, if you could again tell us what you would advise are the important indicators. Just to sum up, you've ‑‑ you also, I think, have three here. You mentioned a few, but in terms specifically to this market, have you something that you could add to our discussion to look at what are the factors that we should consider specific to Saskatoon? There is market profitability, but what are the other factors that you would consider? And I hope they're not anecdotal, Mr. Maheu.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15656 MR. MAHEU: No. You know, there are a number of things to consider. Radio and its ability to generate revenue, and that's really, I think, one of the key things that we're all thinking about when it comes to how much room would there be in a marketplace to add new service because the Commission has the very difficult job of balancing the needs of the community and the citizens with the needs of incumbent broadcasters because, without them being successful, there is no service. And at what level can the market absorb service and how much is enough and how much is too much, so you need to consider all things very carefully.
LISTNUM 95 \l 15657 You can never be a hundred percent sure of anything. What we are sure of though, when it comes to Saskatoon, and its ability to absorb new and additional service in the market, is all the signs are ‑‑ in terms of the economy are there, that things are going to be better in the future than they are today. We see population growth happening in the city.
LISTNUM 95 \l 15658 And another key indicator for radio is what's going on in terms of retail sales. How much money are consumers spending in a marketplace? Is it going up? Is it going down? How much is it on a per capita basis? And Saskatoon's numbers are pretty impressive.
LISTNUM 95 \l 15659 And, Brad, do you have those numbers handy by the way? I just ‑‑ I'll come to you in a sec ‑‑ or we ‑‑ somebody has them. The retail sales activity that's going on in Saskatoon, even if you looked at it on a retail sales per radio station in the market basis, we took a look at that, and it's quite an interesting fact when it comes out because, when you compare it to other markets of similar or equal size, it leads us to believe that the economic activity that's going on in Saskatoon could certainly support a lot more service. Do you have it, Brad?
LISTNUM 95 \l 15660 MR. BOECHLER: I don't have it by station, but I do have ‑‑ the economic indicators as of what they're saying today is retail sales in 2006 will be $2.4 billion this year and projected to increase by 9 percent by 2008. And that, again, is from FP Markets.
LISTNUM 95 \l 15661 MR. MAHEU: To give you a better sense in terms of retail sales in Saskatoon, the retail sales in Saskatoon are $397 million per radio station. So the economic activity in the entire city, there's $397 million in retail sales for every radio station in the city.
LISTNUM 95 \l 15662 If you go to the ‑‑ I don't want to reference Regina because you cautioned against that. But if you took a look at Moncton for instance, a city that's a little bit smaller, in terms of economic activity and revenue available per radio station, it's in the 200 million range.
LISTNUM 95 \l 15663 Saskatoon, by all measures, when we looked at the amount of retail sales happening in the marketplace per commercial radio station operating, was anywhere from 50 percent to 90 percent higher than a lot of equivalent markets. And actually we have that information and we can ‑‑ would be happy to give it to you. The markets we looked at were Moncton; Brandon, Manitoba; Belleville ‑‑ they all ranged in the 2 to $300 million per radio station range.
LISTNUM 95 \l 15664 So, you know, as retail sales go in a marketplace; furniture, durable goods, discretionary consumer spending, restaurants, et cetera, by that measure, that's where radio and local radio sales lives and dies. When the economy is good and people are spending, we do well as an industry. When things tighten up and people stop spending and retail sales go down, we're on the leading edge of that. And we're one of the first mediums to get cut back when things start to get a little tough.
LISTNUM 95 \l 15665 But all indicators are right now that things are very good in Saskatoon, and the indicators are, at least from what we've seen, is they're going to continue to get better over a period of time. So that leads us to believe ‑‑ and I think that's the strongest indicator ‑‑ that the marketplace can absorb and sustain new additional services.
LISTNUM 95 \l 15666 COMMISSIONER PENNEFATHER: Thank you. Thank you very much. I'll hand you back to Madam Chair and my colleagues, and thank you for answering my questions again.
LISTNUM 95 \l 15667 MR. MAHEU: Thank you.
LISTNUM 95 \l 15668 THE CHAIRPERSON: Vice‑Chair Arpin...?
LISTNUM 95 \l 15669 COMMISSIONER ARPIN: Thank you, Madam Chair.
LISTNUM 95 \l 15670 The ‑‑ Mr. Maheu, you said that according to your estimate and your own internal study, that the incumbent station were gathering about $16 million of advertising revenues out of the Saskatoon market, growing to 18 million by the year 2008. How did you arrive at those numbers?
LISTNUM 95 \l 15671 MR. MAHEU: I'll ask Brad Boechler to give you the detail on that, if I may, Mr. Vice‑Chair?
LISTNUM 95 \l 15672 MR. BOECHLER: I travel all over the country. I talked to broadcasters from other companies almost on a weekly basis. National agencies, people in business, I'm still in quite close contact with a lot of friends and acquaintances ‑‑ some in the business, some not in the business in Saskatchewan. I had direct access and responsibility for the Regina and Saskatoon markets with a different company up until 1999, so I had a good sense from there. And we just felt since Mr. Cowie and Mr. Rawlinson won't tell us what the number ‑‑ or I'm sorry, Mr. Hildebrand and Mr. Rawlinson won't tell us what the numbers are, they'll go with ours.
LISTNUM 95 \l 15673 But seriously, that's where we came from. We knew it was higher than Regina. We estimate Regina's spend this year to be in the $13 million range. I knew it was higher than that because historically it always has been, so that's it in a nutshell.
LISTNUM 95 \l 15674 COMMISSIONER ARPIN: So if it's not in a formula of some kind, it's ‑‑ by your own experience, a market of similar size and the ‑‑
LISTNUM 95 \l 15675 MR. BOECHLER: Exactly.
LISTNUM 95 \l 15676 COMMISSIONER ARPIN: ‑‑ the retail activity in similar markets that you have arrived to ‑‑
LISTNUM 95 \l 15677 MR. BOECHLER: I ‑‑
LISTNUM 95 \l 15678 COMMISSIONER ARPIN: ‑‑ to that guess ‑‑
LISTNUM 95 \l 15679 MR. BOECHLER: In researching the ‑‑
LISTNUM 95 \l 15680 COMMISSIONER ARPIN: ‑‑ estimate?
LISTNUM 95 \l 15681 MR. BOECHLER: I'm sorry, Vice‑Chair. In researching the market and consulting with my colleagues, we think we're pretty close. It's not something we just pulled out of the air and said this will justify a case why more radio stations should be added. We think we're quite close in both markets but more specifically Saskatoon. And in using the economic indicators and projected growth and traditionally, as Mr. Maheu has said, how radio sales, retail sales in particular, follow overall retail sales, we thought we're in pretty good shape. We're confident in our projection anyway.
LISTNUM 95 \l 15682 COMMISSIONER ARPIN: Well, that was my question. Thank you, Madam Chair.
LISTNUM 95 \l 15683 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 15684 I have two questions. Would you agree to a COL of a minimum of 124 hours live to air programming during the broadcast week?
LISTNUM 95 \l 15685 MR. MAHEU: No problem at all.
LISTNUM 95 \l 15686 THE CHAIRPERSON: Thank you.
LISTNUM 95 \l 15687 This age group, they're also the CBC age group ‑‑ not that CBC wants it that way ‑‑ but CBC has had a lot of coverage problems in Saskatoon, and they will be putting in their nesting FM solution ‑‑ at least they have been given the authority to do that.
LISTNUM 95 \l 15688 Do you think that will change, like, this group? Do you think it will lower your 18 percent hole if they have adequate CBC coverage or is it a totally different group?
LISTNUM 95 \l 15689 MR. MAHEU: It's really a different group of people. The people that ‑‑ in the survey and that we based our proposal format proposal on are first choice heavy users of this type of music. It's the radio station and the kind of format they choose to listen to most.
LISTNUM 95 \l 15690 What I can say, though, is that, you know, we're going to make it more difficult for CBC to get ready and share in that market because we are going to put, as you've seen, a pretty good emphasis on news and information. So our goal is to make sure that when people are tuned to our radio station that they get the kind of news and information and service on the air outside of the music, so they feel looked after and they don't feel the need to go somewhere else to supplement to get news and information.
LISTNUM 95 \l 15691 And, you know, there are going to be those who listen to the CBC regardless and ‑‑ because they like it, and they're first choice heavy users of news and talk, but we are not planning on targeting those people, but we want to do a good enough job so our folks don't feel they have to leave and go to CBC. So we're confident we can compete.
LISTNUM 95 \l 15692 THE CHAIRPERSON: You can now do your two‑minute sales job.
LISTNUM 95 \l 15693 MS BENNETT: Can I just ‑‑
LISTNUM 95 \l 15694 THE CHAIRPERSON: Oh, I'm sorry. Sorry, Leanne. I'm ‑‑
LISTNUM 95 \l 15695 MS BENNETT: That's okay. We're so quiet over here. Just the retail sales per commercial station numbers that you are planning to file, would you be able to file them tomorrow morning?
LISTNUM 95 \l 15696 MR. MAHEU: Sure we would, yes.
LISTNUM 95 \l 15697 MS BENNETT: Okay.
LISTNUM 95 \l 15698 MR. MAHEU: And they're from FP Markets so ‑‑ but we've got it on a one sheeter for you. Okay?
LISTNUM 95 \l 15699 MS BENNETT: Okay, thank you.
LISTNUM 95 \l 15700 MR. MAHEU: Sure.
LISTNUM 95 \l 15701 THE CHAIRPERSON: I am sorry, counsel. Now you can start. Thank you.
LISTNUM 95 \l 15702 MR. MAHEU: Well, there's never a sale without the close. So very briefly, thank you very much for your time and your attention.
LISTNUM 95 \l 15703 It's Wednesday already and it's been a pleasure to present our proposal format idea for Saskatoon to you. We're very bullish on Saskatchewan as a province and Saskatoon as a potential market for Newcap Radio to be in. It's a beautiful city with great people.
LISTNUM 95 \l 15704 The economic activity in the city, from our point of view, tells us that there's certainly room for new service to be viable and sustainable in the marketplace. We believe we've come with a very good format idea, one that will have a minimum amount of impact on incumbent broadcasters while at the same time be satisfying a need and a want that clearly, through the research that we did, exists in the marketplace.
LISTNUM 95 \l 15705 We've brought the news and information programming as part of your proposal and we've committed to do it, and we will, because we know it's going to be necessary to be successful. And on top of that, we're putting our money where our music is. We're putting a million and a half dollars on the table as part of our initiatives to develop Canadian talent. We've got some good partnership ideas with the university and we'd love the opportunity to put that into effect and get to work and put a great new radio station on in Saskatoon.
LISTNUM 95 \l 15706 So on behalf of all of us at Newcap Radio, thank you for the opportunity to tell you about it.
LISTNUM 95 \l 15707 THE CHAIRPERSON: Thank you, Mr. Steele, Mr. Maheu and panel.
LISTNUM 95 \l 15708 And we will be adjourning this evening, but because we're three‑quarters of an hour early, we're going to start tomorrow morning at quarter to eight.
‑‑‑ Laughter / Rires
LISTNUM 95 \l 15709 THE CHAIRPERSON: Okay, okay ‑‑
LISTNUM 95 \l 15710 COMMISSIONER CUGINI: You might.
LISTNUM 95 \l 15711 THE CHAIRPERSON: ‑‑ 8:30.
‑‑‑ Upon adjourning at 1835 /
L'audience est ajournée à 1835
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