ARCHIVED -  Decision CRTC 97-535

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Decision

Ottawa, 29 August 1997
Decision CRTC 97-535
Fairchild Television Ltd.
Across Canada - 199702436
Licence renewal
1. Following Public Notice CRTC 1997-66 dated 28 May 1997, the Commission renews the broadcasting licence issued to Fairchild Television Ltd. to operate a national Chinese-language specialty programming undertaking, from 1 September 1997 to 31 August 2004, 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.
2. This undertaking provides a national, discretionary, specialty service that consists of programming of Type A, as defined in Schedule II to the Specialty Services Regulations, 1990, having as its target audience the Chinese-speaking communities of Canada. This undertaking broadcasts 115.5 hours per week of programming of which 98.5 hours are in Cantonese and 17 hours are in Mandarin.
3. The Commission acknowledges the numerous interventions submitted in support of this application.
This decision is to be appended to the licence.
Laura M. Talbot-Allan
Secretary General
This document is available in alternative format upon request.
APPENDIX TO DECISION CRTC 97-535 / ANNEXE À LA DÉCISION CRTC 97-535
FAIRCHILD TELEVISION LTD.
CONDITIONS OF LICENCE
Nature of the service
1. The licensee shall provide a national discretionary specialty service that consists of programming of Type A, as defined in Schedule II to the Specialty Services Regulations, 1990, having as its target audience the Chinese-speaking communities of Canada.
Exhibition of Canadian programs
2. The licensee shall devote to the broadcast of Canadian programs not less than
(i) 40% of the time from 6:00 p.m. to 11:00 p.m. and
(ii) 30% from 6:00 a.m. to midnight.
Expenditures on Canadian programs
3. (a) The licensee shall expend on the acquisition of, or investment in, Canadian programs in each year of the licence term, 29% of the gross revenues earned during the preceding year.
(b) In each broadcast year of the licence term, excluding the final year, the licensee may expend an amount on Canadian programming that is up to five percent (5%) less than the minimum required expenditure for that year calculated in accordance with this condition; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underspending.
(c) In any broadcast year of the licence term, including the final year, the licensee may expend an amount on Canadian programming that is greater than the minimum required expenditure for that year calculated in accordance with this condition; in such case, the licensee may deduct:
(i) from the minimum required expenditure for the next year of the licence term, an amount not exceeding the amount of the previous year's overspending; and
(ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overspending and any amount deducted under paragraph (i) above.
(d) Notwithstanding the above, during the licence term, the licensee shall expend on Canadian programming, at a minimum, the total of the minimum required expenditures calculated in accordance with the licensee's conditions of licence.
Exhibition of non-Canadian programs
4. The licensee shall broadcast, in each semester of its licence term, a minimum of 250 hours of first-run non-Canadian programs produced by, and acquired from, sources other than TVB of Hong Kong (TVB) or any of its subsidiaries, which programming shall constitute not less than 20% of the total number of hours of non-Canadian programs broadcast during that semester.
Expenditures on non-Canadian programs
5. The licensee shall, in each broadcast year, expend on non-Canadian programs produced by, and acquired from, sources other than TVB or its subsidiaries, an amount representing not less than 15% of its total expenditures on non-Canadian programs.
6. The licensee shall submit a report, by 30 November 1997 and annually thereafter throughout the licence term, containing data setting out the expenditures it has made to comply with the requirements specified in each of conditions of licence 4 and 5 above.
Advertising
7. (a) During each clock hour, the licensee shall broadcast not more than eight minutes of commercial messages of which no more than four minutes shall be local commercial messages.
(b) In addition to the maximum of eight minutes of commercial messages referred to in (a), the licensee may distribute during each clock hour, a maximum of 30 seconds of additional advertising material that consists of unpaid public service announcements.
(c) Where a program occupies time in two or more consecutive clock hours, the licensee may exceed the maximum number of minutes of advertising material allowed in those clock hours, up to a maximum of ten minutes in any clock hour, provided that the average number of minutes of advertising material in those clock hours occupied by the program does not exceed eight minutes.
Advisory committees
8. The licensee shall submit a report by 31 August of each year of the licence term, updating the membership information on file with the Commission and outlining the activities of its advisory committees during the preceding year.
Policy guidelines
9. The licensee shall ensure that the policy guidelines that establish the mechanisms the licensee will use to ensure balance in programming, and the procedures it will follow in dealing with complaints by the public on this matter and on other aspects of its service, including the issue of violence, which were accepted by the Commission and made public, remain in place.
Adherence to industry codes
10. 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.
11. 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.
12. 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.
Restrictions Concerning Ownership and Participation on the Board of Directors and in Senior Management
13. In keeping with its by-laws filed with the Commission, the licensee shall prohibit the participation as a director or as an officer of the licensee company, of any nominee, employee or representative of TVB, Condor Entertainment B.V., their affiliates or subsidiaries, or of any person associated with these companies or with whom the licensee has entered into an agreement for the acquisition of programs.
14. The licensee shall provide the Commission with any changes to the names and biographical descriptions of the members of its board of directors filed with the Commission. The licensee shall notify the Commission before any change is effected in the composition of its Board of Directors, or in its ownership or in the ownership of its principal shareholder, Happy Valley Investments Ltd.
Definitions:
In these conditions:
"broadcast year" shall have the same meaning as those set out in the Television Broadcasting Regulations, 1987.
"clock hour" means a period of 60 minutes beginning on each hour and ending immediately prior to the next hour.
"expend on acquisition" means
(a) expend to acquire exhibition rights for the licensed territory, excluding overhead costs;
(b) expend on the following items associated with the production of a program:
- talent fees (on air and other)
- directly-attributable salaries and benefits
- film and tape
- studio sets, properties and other production materials
- use of remote and other production facilities
- delivery of remote programs to the satellite uplink or main studio and
- any other matter directly related to the production of a program; or
(c) expend on the production of filler programming, as defined in section 2 of the Pay Television Regulations, 1990, including direct overhead costs.
"expend on investment" means expend for the purposes of an equity investment or an advance on account of an equity investment, but not overhead costs or interim financing by way of a loan.
"semester" means each six-month period beginning 1 March and 1 September.
"officer" means the chairperson, president, vice-president, secretary, treasurer, comptroller, general counsel, general manager, managing director or any individual who performs functions for the licensee similar to those normally performed by an individual occupying any such office, and each of the licensee's five highest paid employees, including the above.

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