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Broadcasting Decision CRTC 2006-180
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Ottawa, 3 May
2006 |
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Newcap Inc.
Ottawa, Ontario |
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Application 2006-0284-8
Broadcasting Public Notice CRTC 2006-50
13 April 2006 |
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CILV-FM Ottawa – Licence amendment
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The Commission approves
an application to amend CILV-FM Ottawa’s condition of licence that
specifies its required expenditures on Canadian talent development, in
order to redirect $700,000 from the Radio Starmaker Fund to Aboriginal
Voices Radio (AVR) for the purpose of developing programming and
implementing AVR’s national radio network. The $700,000 contribution to
AVR may be paid either in a one-time lump sum, or in $100,000 yearly
payments over seven consecutive broadcast years. |
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The application
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1. |
The Commission received an
application by Newcap Inc. (Newcap) to amend the broadcasting licence
for the radio programming undertaking CILV-FM Ottawa, in order to amend
its condition of licence that specifies its required expenditures on
Canadian talent development (CTD). |
2. |
CILV-FM’s current CTD condition
of licence is set out in English-language alternative rock FM radio
station in Ottawa, Broadcasting Decision CRTC 2005-253,
23 June 2005 (Decision 2005-253),
and reads as follows: |
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3. The licensee shall make direct expenditures of at least $7
million over seven consecutive years on the development and promotion
of Canadian talent, as detailed in this decision. Upon commencement of
operation, this amount shall be distributed over seven consecutive
broadcast years as follows:
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- $400,000 in each broadcast year to the Radio Starmaker Fund;
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- $50,000 in each broadcast year to the Nepean School of Music to
support its annual summer music skills clinic and to develop an
intensive year-long training program for selected students who wish
to form a band; and
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- $550,000 in each broadcast year to support three local bands, at
least one of which will be an alternative rock band, chosen by a
panel of judges and to provide sustained support for the band of the
year.
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3. |
In its application, Newcap
proposed to redirect $100,000 in each broadcast year over
seven consecutive years from the Radio Starmaker Fund (Starmaker) to
Aboriginal Voices Radio (AVR) for the purpose of developing programming
and implementing AVR’s national radio network. |
4. |
Newcap acknowledged that its
proposed contribution to AVR would not meet the Commission’s eligibility
criteria for contributions to CTD, as set out in Appendix 1 to An FM
policy for the nineties, Public Notice CRTC 1990-111,
17 December 1990 (Public Notice 1990-111).
However, Newcap submitted that there is a lack of Aboriginal programming
on Canadian radio and that Aboriginal musical and artistic talent
is deprived of radio airplay in Canada. Accordingly, in Newcap’s view,
its proposed contribution to AVR to assist it in developing programming
and implementing its national radio network would provide an important
benefit to the Canadian broadcasting system in accordance with section 3(1)(o)
of the Broadcasting Act (the Act). |
5. |
Newcap provided letters of
support for its proposal by AVR and by the Canadian Association of
Broadcasters (CAB), on behalf of Starmaker. |
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Interventions
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6. |
The Commission received
interventions in connection with this application by the Canadian
Independent Record Production Association (CIRPA) and by Starmaker. |
7. |
CIRPA stated that a letter from
the CAB does not constitute a letter from Starmaker. According to CIRPA,
Starmaker never provided its support for the proposal and the
application should therefore be denied. |
8. |
For its part, Starmaker
confirmed that it did not provide a letter of support to Newcap for this
application. Nevertheless, Starmaker stated that it takes no position in
this matter but that it "supports all broadcasters and the CRTC in
determining the best use of CTD contributions with input from
stakeholders and the public in general." |
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Applicant’s reply
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9. |
In response, Newcap apologized
for the misunderstanding noted in the interventions with respect to
Starmaker’s position on this application. Newcap nevertheless submitted
that Starmaker’s approval of the redirection of funds is not required
for the disposition of this application. |
10. |
Newcap also stated that, in its
original application for a broadcasting licence to operate a radio
station to serve Ottawa, it had proposed to contribute $100,000 in each
broadcast year to AVR. |
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Commission’s analysis and determination
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11. |
In Newcap’s original application
for a radio broadcasting licence to serve Ottawa, it proposed to contribute
$100,000 in each broadcast year over seven consecutive years to Aboriginal
Voices Radio Network (AVRN) to fund the salary, travel and office
expenses to staff a new position of coordinator of Aboriginal talent.
In Decision 2005-253, the Commission
found that, consistent with the guidelines set out in Public Notice
1990-111, Newcap’s proposed
contribution to AVRN did not warrant acceptance as an eligible CTD initiative.
In accordance with Newcap’s commitment made at the 1 December 2004
public hearing, the Commission, directed Newcap to reallocate the
proposed annual $100,000 contribution to Starmaker. |
12. |
In its evaluation of Newcap’s
present application to redirect this contribution back to AVR, the
Commission has taken into consideration the fact that, under CILV-FM’s
current CTD condition of licence, the licensee must spend a minimum
of $1 million in each broadcast year, or $7 million over
seven consecutive years on CTD. Under the CTD plan established by
the CAB and accepted by the Commission in Contributions by radio
stations to Canadian talent development – A new approach, Public
Notice CRTC 1995-196,
17 November 1995 (Public Notice 1995-196),
licensees serving markets the size of Ottawa are required, by condition
of licence, to contribute a minimum yearly amount of $8,000 to CTD.
Accordingly, the Commission notes that, even if Newcap were permitted
to redirect $100,000 of its required annual CTD expenditures from
Starmaker to AVR , the licensee’s minimum required expenditures in
this regard far exceed the minimum requirements set out in Public
Notice 1995-196. |
13. |
In the present case, the
Commission notes that Newcap proposed to allocate funding to AVR for the
purpose of developing programming and implementing its national radio
network. The Commission considers that, while Newcap’s proposed funding
for AVR would not contribute directly to CTD, it would certainly
contribute to the achievement of the objective set out in section
3(1)(o) of the Act, which states that "programming that reflects the
aboriginal cultures of Canada should be provided within the Canadian
broadcasting system as resources become available for the purpose."
Accordingly, the Commission is satisfied that Newcap’s proposed
contribution to AVR would provide a benefit to the Canadian broadcasting
system. |
14. |
In light of the above, the
Commission approves the application by Newcap Inc. to amend the
broadcasting licence for the radio programming undertaking CILV-FM
Ottawa, in order to amend its condition of licence that specifies its
required expenditures on CTD. The Commission authorizes the licensee to
redirect $700,000 of its current required CTD expenditures from the
Radio Starmaker Fund to Aboriginal Voices Radio (AVR) for the purpose of
developing programming and implementing AVR’s national radio network.
The $700,000 contribution to AVR may be paid either in a one-time lump
sum or in $100,000 yearly payments to be made over seven consecutive
broadcast years. Conditions of licence to that effect are set out
below. |
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3. The licensee shall make direct expenditures of at least
$6.3 million over seven consecutive years on the development and
promotion of Canadian talent. Upon
commencement of operation, this amount shall be distributed over seven
consecutive broadcast years as follows:
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- $300,000 in each broadcast year to the Radio Starmaker Fund;
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- $50,000 in each broadcast year to the Nepean School of Music to
support its annual summer music skills clinic and to develop an
intensive year-long training program for selected students who wish
to form a band; and
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- $550,000 in each broadcast year to support three local bands, at
least one of which will be an alternative rock band, chosen by a
panel of judges and to provide sustained support for the band of the
year.
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4. The licensee shall devote a minimum of $700,000 to Aboriginal
Voices Radio (AVR), to paid either in a one-time lump sum or in
$100,000 yearly payments over seven consecutive broadcast years, for
the purpose of developing programming and implementing AVR’s national
radio network.
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Secretary General |
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This decision is to be appended
to the licence. It is available in alternative format upon request,
and may also be examined in PDF format
or in HTML at the following Internet site:
http://www.crtc.gc.ca |