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Decision
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Ottawa, 23 August 1985
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Decision CRTC 85-696
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Radio QX-FM Inc.
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Selkirk, Manitoba - 850845900 - 850870700
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At a Public Hearing in Winnipeg on 28 May 1985, the Commission considered an application to renew the broadcasting licence for CFQX-FM Selkirk, expiring 30 September 1985, and a further application for the transfer of negative control of the licensee company.
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The licensee was requested to appear at the hearing to discuss these matters with the Commission, as well as its failure to implement fully the programming commitments contained in its existing Promise of Performance. The Commission also wished to examine with the licensee concerns arising from certain proposals set out in its new Promise of Performance.
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Renewal
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It is a condition of licence that an FM licensee make all reasonable efforts to fulfill substantially each section of its Promise of Performance. All instances of non-compliance with the Promise of Performance are viewed with concern by the Commission. A major concern of the Commission in the present case has been the licensee's failure to achieve its commitments with respect to the provision of adequate amounts of Mosaic and Foreground programming.
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At the hearing, the manager of CFQX-FM, Mr. Barry Jones, acknowledged that there had been shortfalls in the station's performance, throughout its current term of licence, as regards Mosaic and Foreground programming. On behalf of the licensee, he promised that these problems would be overcome in the future. He also acknowledged the importance of such programming:
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... in researching Commission documentation, the one phrase which appeared to me to be a priority to accept was the requirement for FM to be something more, for FM to involve a greater preparation of programming of a varied and comprehensive nature.
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In its deliberations with respect to the current renewal application, the Commission has taken into account the licensee's resolve to overcome the inadequacies in its programming and to fulfill the commitments set out in its new Promise of Performance. The Commission has also taken into account the serious financial difficulties experienced by the station since the time it was first licensed in 1981, and the extent to which such difficulties may have affected its past performance in adhering to its commitments: in 1982, financial problems encountered in establishing and operating CFQX-FM forced the licensee company into early receivership; the station's assets were subsequently transferred to the present owners in 1983 (Decision CRTC 83-502).
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Given the licensee's past problems with compliance, however, and consistent with the Commission's approach in dealing with applications for licence renewal by FM licensees who fail to achieve the commitments contained in their Promise of Performance, the Commission has no recourse but to conclude that a full term licence renewal for CFQX-FM is not justified.
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The Commission therefore renews the broadcasting licence for CFQX-FM Selkirk for a period of two years, from 1 October 1985 to 30 September 1987, subject to the conditions of licence specified in the licence to be issued.
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During this period, the Commission expects the licensee to respond to the programming concerns identified in this decision, as well as to demonstrate full adherence to the commitments contained in its new Promise of Performance and to the requirements of the FM policy and regulations. The licensee's performance in this regard will be monitored closely by the Commission and carefully considered at the time of its next licence renewal.
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Under the new Promise of Performance, CFQX-FM will operate within musical Group I, which encompasses the present Easy Listening music format of the station, and is defined in Public Notice CRTC 1984-151 on the Review of Radio.
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The licensee requested a reduction in the amount of Canadian content for category 5 (Music-General) selections from the currently authorized level of 15% to 10%. This request is approved. In light of the particular circumstances of this station, the Commission considers that this level is acceptable and notes that it coincides with the minimum level for new Easy Listening FM stations proposed by the Consultative Committee on Music on Radio (Public Notice CRTC 1984-84).
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The Commission notes that the licensee will change the vocal: instrumental ratio from 35:65 to 50:50. The Commission considers that this change is reasonable in light of the Easy Listening format of the station and the decreasing availability of new and suitable instrumental recordings.
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The licensee also proposed to reduce the amount of category 6 music (Music-Traditional and Special Interest) from 14 hours 30 minutes to 4 hours 30 minutes per week. In its policy statement on the Review of Radio in March 1983, however, and in a number of recent decisions, the Commission reaffirmed that FM stations authorized to broadcast Music-Traditional and Special Interest would generally not be permitted to reduce this programming to a level of less than 8 hours per week. In this regard, the Commission emphasized the importance of providing an adequate level of specialized music in order to ensure that varied and comprehensive listening fare is available in any given market. At the same time, it offered greater flexibility to FM licensees in the scheduling and selection of category 6 music.
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The Commission considers that a departure from the policy is not warranted in this case. Accordingly, and as discussed with the licensee at the hearing, its proposal to reduce the amount of category 6 music from 14 hours 30 minutes to 4 hours 30 minutes per week is approved only in part. The Commission approves a reduction of music from this category to 8 hours per week.
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The Commission recognizes that certain types of Traditional and Special Interest music are not compatible with some forms of popular music and reminds the licensee that it may choose the type of category 6 music which is most compatible with its music format. The licensee also has the choice of presenting these musical selections in identifiable blocks of programming, or interspersed with other selections.
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The Commission acknowledges the licensee's plans to increase the amount of news broadcast on CFQX-FM from 6 hours 30 minutes to 9 hours per week. It expects the licensee to ensure that the staff and other station resources allocated to the production of local news are sufficient to guarantee the consistent quality of such programming as well as the quantity proposed.
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The Commission approves the licensee's request for authority to reduce the overall level of Spoken Word programming from 30 hours 45 minutes to 24 hours 30 minutes per week, but notes that the licensee's Promise of Performance contains a minimal commitment to Enrichment material.
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As emphasized by the Commission in Public Notice CRTC@AVI 84-151> 1984-151 entitled The Review of Radio - Simplification of the FM Policy, the provision of high quality Foreground and Mosaic programming is an integral part of the FM policy. Based on the licensee's past performance in the area of Spoken Word programming and the discussion that took place at the hearing on this subject, the Commission has some concern that the licensee may continue to experience difficulty in achieving its commitment of 33% of high quality Mosaic and Foreground programming.
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As specified earlier in this decision, the Commission will monitor the licensee's performance during the next licence term, in all aspects of its Spoken Word programming, including news, Mosaic and Foreground. The Commission expects the licensee to take whatever measures are necessary to fulfill its commitments in this regard.
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In its renewal application, the licensee proposed to broadcast a level of commercial minutes in excess of that permitted for independent FM licensees under the Commission's regulations. The licensee is reminded that, pursuant to section 8 of the Radio (FM) Broadcasting Regulations, it must not exceed the maximum allowable level of commercial minutes of 150 minutes per day, or the maximum weekly level of 17 hours and 30 minutes.
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Transfer of Negative Control
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As noted earlier, the Commission also considered an application to transfer negative control of the licensee company. Under this proposal, 50% of the licensee's issued and outstanding shares would be transferred from Mr. Peter Simpson to Megill-Stephenson Company Limited, a company controlled by Winnipeg businessman Mr. Robert Chipman. The remaining 50% of the licensee's issued and outstanding shares would continue to be held by Mr. Jack Turner, also of Winnipeg.
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This application is approved. The Commission is satisfied that the business experience and financial resources to be made available to the licensee through its new shareholder should enable it to overcome its financial difficulties and remedy the shortcomings in its programming. The Commission notes in this regard the following statement by Mr. Chipman:
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We believe through our participation we will contribute financial stability. We will allow the present management to concentrate on marketing and programming and, as I mentioned, in due course, to achieve the business objectives that we have set for the station. I believe that we have a reasonable financial resource as a company and we have reached an agreement with Mr. Turner that we are prepared to be supportive of the station until such time as it is profitable.
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In approving the share transfer, the Commission has also taken into account the advice received from Mr. Chipman, subsequent to the hearing, that he considered the proposed investment by his company in the licensee's shares to be "conditional on a five year renewal being in place".
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For the reasons expressed earlier in this decision, and consistent with the Commission's policy for dealing with non-compliance by FM licensees, the Commission has decided not to grant a full term renewal of the CFQX-FM licence. At the same time, the Commission acknowledges the importance of the investment proposed by Megill-Stephenson Company Limited in enabling the licensee to continue to provide a valuable service to residents of the area. It therefore encourages the prospective shareholder to proceed with its plans, as stated at the hearing, "to execute a radio station serving the Interlakes as best as we possibly can".
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The Commission also wishes to emphasize that this short-term renewal is intended to allow the licensee sufficient time to rectify the deficiencies in its programming. In this regard, the Commission notes that Commission staff are available to consult with the licensee and to provide assistance and advice on programming policy matters.
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Fernand Bélisle Secretary General
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