ARCHIVED -  Decision CRTC 95-637

Decision

Ottawa, 29 August 1995

Decision CRTC 95-637

Craig Broadcast Systems Inc.

Brandon, Foxwarren, McCreary and Melita, Manitoba - 940956600

Licence renewal for CKX-TV and its transmitters

Following a Public Hearing held in Winnipeg beginning on 5 June 1995, the Commission renews the broadcasting licence for the television programming undertaking consisting of CKX-TV Brandon, CKX-TV-1 Foxwarren, CKX-TV-3 McCreary and CKX-TV-2 Melita, from 1 September 1995 to 31 August 2002, subject to the conditions in effect under the current licence as well as to those conditions specified in the appendix to this decision and in the licence to be issued.

Local reflection

On 24 March 1995, the Commission issued Public Notice CRTC 1995-48 in conjunction with the release of decisions renewing the licences of privately-owned, English-language television stations in British Columbia, Ontario and Quebec. In that public notice, the Commission reiterated the importance of the principle of local reflection and reminded television licensees that they have a special responsibility to serve the public within the particular geographic areas they are licenced to serve.

In this regard, the Commission expects Craig Broadcasting Systems Inc. (Craig) to adhere to the commitment made in its renewal application to broadcast a minimum average of 16 hours 45 minutes per week of original local news programming during the new licence term.

With respect to other local programming, the Commission notes that CKX-TV will continue to broadcast programs such as "The Manitoba Farm Report", "The Kids Club" and "The Sharing Circle".

Children's programming

The Commission notes the licensee's commitment to broadcast a minimum average of 3 hours 30 minutes per week of Canadian programming aimed at children (2 to 11 years) and to increase this amount to 4 hours per week by year 7 of the licence term.

Expenditures on Canadian programming

As part of its licence renewal, Craig requested that the 1989-1990 base amount used to calculate CKX-TV's expenditures on Canadian programming for the current licence term, as expected under the formula prescribed by the Commission, be decreased from $640,000 to $504,710. Craig explained that its original 1989-1990 base amount was based on revenue projections which, in fact, have not been realized. The licensee proposed a base amount that reflects the actual revenues CKX-TV earned during the current licence term.

The Commission considers that Craig's requested adjustment to the formula's 1989-1990 base amount is reasonable and, therefore, approves the licensee's request.

In addition, consistent with adjustments permitted by the Commission in the case of other licensees, the Commission will permit a further downward adjustment in the amount of $60,000, to the amount of Canadian programming expenditures expected under the formula in the first year of the new licence term (1995-1996).

The adjustment relates to the amount projected by the licensee for master control expenses in the first year of the new licence term.

The Commission reminds Craig that, in the future, it should not include master control expenses in its Canadian programming expenditures for the purpose of financial reporting.

Accordingly, inasmuch as the licensee's advertising revenues and network payments in the broadcast year ending 31 August 1994 were less than $10 million, the Commission expects the licensee to expend, in the first year of the new licence term, at a minimum, the amount it was expected to expend in the 1994-1995 broadcast year, before consideration of any overexpenditures or underexpenditures from prior years, increased or decreased in accordance with the prescribed formula linked to the station's advertising revenues and network payments and then decreased by the $60,000 master control adjustment previously explained. In each subsequent year of the licence term, the Commission expects the licensee's Canadian programming expenditures to be adjusted in accordance with the Commission's prescribed formula.

The Commission notes that the licensee has elected to average the percentage increase in total advertising revenues and network payments over a period of three years. In accordance with the provisions contained in Public Notice CRTC 1995-48, the Commission expects the licensee to adhere to this same three-year averaging mechanism throughout the new licence term.

Program development

The Commission reminds the licensee of the Commission's expectations set out in Public Notice CRTC 1989-27 dated 6 April 1989 and entitled "Overview: Local Television for the 1990s" regarding the important role that local television stations play in program development. In this regard, the Commission notes the licensee's commitment to spend a total of $45,000 on program development over the seven-year licence term.

Service to the deaf and hard of hearing

Consistent with its policy approach for closed captioning announced in Public Notice CRTC 1995-48, the Commission encourages the licensee, by the end of the licence term, to caption all local news programming, including live segments, using either real-time captioning or another method capable of captioning live programming.

The Commission also encourages the licensee to close caption at least 90% of all programming during the broadcast day by the end of the licence term.

Employment equity

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. In this regard, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Interventions

The Commission acknowledges the numerous interventions submitted in support of the renewal of this licence and has noted the comments expressed therein.

Allan J. Darling
Secretary General

APPENDIX/ANNEXE

Conditions of licence for CKX-TV Brandon

1. The licensee shall operate this broadcasting undertaking as an affiliate of the English-language television network operated by the Canadian Broadcasting Corporation.

2. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council (CBSC).

3. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's "Voluntary Code Regarding Violence in Television Programming", as amended from time to time and accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the CBSC.

4. The licensee shall adhere to the provisions of the CAB's "Broadcast Code for Advertising to Children", as amended from time to time and accepted by the Commission.