Vol. 147, No. 19 — September 11, 2013

Registration

SI/2013-95 September 11, 2013

BROADCASTING ACT

Order Declining to Refer Back to the CRTC Decision CRTC 2013-263

P.C. 2013-901 August 26, 2013

Whereas the Canadian Radio-television and Telecommunications Commission (“the Commission”), in its Broadcasting Decision CRTC 2013-263 of May 28, 2013, renewed the broadcasting licences of the Canadian Broadcasting Corporation for its radio services, Espace Musique and Radio 2;

Whereas, subsequent to the rendering of the decisions to renew the broadcasting licences of the Canadian Broadcasting Corporation for its radio services, Espace Musique and Radio 2, the Governor in Council received a petition requesting that those decisions be referred back to the Commission for reconsideration and hearing;

And whereas the Governor in Council, having considered the petition, is not satisfied that those decisions derogate from the attainment of the objectives of the broadcasting policy for Canada set out in subsection 3(1) of the Broadcasting Act (see footnote a);

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Canadian Heritage, pursuant to section 28 of the Broadcasting Act (see footnote b), declines to refer back to the Commission for reconsideration and hearing the decisions, contained in Broadcasting Decision CRTC 2013-263 of May 28, 2013, to renew the broadcasting licences of the Canadian Broadcasting Corporation for its radio services, Espace Musique and Radio 2.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

To respond to a petition requesting the Governor in Council to refer back to the Canadian Radio-television and Telecommunications Commission (CRTC) for reconsideration and hearing, pursuant to section 28 of the Broadcasting Act, the decisions to renew the broadcasting licences of the Canadian Broadcasting Corporation (the Corporation or CBC) for its radio services Espace Musique and Radio 2, contained in Broadcasting Decision CRTC 2013-263 of May 28, 2013 (the Decision).

Objective

To communicate that the Governor in Council is not satisfied that the decisions renewing the broadcasting licences of Espace Musique and Radio 2 derogate from the attainment of the policy objectives set out in subsection 3(1) of the Broadcasting Act (the Act).

Background

From November 19 to 30, 2012, the CRTC held a public hearing to consider the renewal of broadcasting licences of the Canadian Broadcasting Corporation that were set to expire on August 31, 2013.

On May 28, 2013, the CRTC issued the Decision which renewed these broadcasting licences of the Corporation, including the one for the French-language radio network, Espace Musique, and the one for the English-language radio network, Radio 2. In the Decision, the CRTC states that it sought to ensure that the objectives of the Act are met and that the Corporation has sufficient flexibility to adjust to a constantly changing broadcasting environment and the financial constraints under which it operates.

One of the main points addressed during the public hearing was the Corporation’s proposal to introduce paid national advertising on two of its four radio networks, namely Espace Musique and Radio 2. In its Decision, the CRTC approved, “by condition of licence, […] the broadcast of paid national advertising for a period of three years only” and imposed certain safeguards to preserve the nature of these services. These include permitting “the broadcast of a maximum of four minutes of national paid advertising […] in any clock hour”; limiting “the number of times that programming can be interrupted for advertising to no more than twice per clock hour”; and “conditions of licence that require Espace Musique to broadcast a minimum of 3 000 and Radio 2 to broadcast a minimum of 2 800 distinct musical selections during each broadcast month.” Moreover, the CRTC Decision stipulates that if the Corporation “wishes to continue to broadcast advertising after that period, it will have to apply” for this. The CRTC “will expect the CBC to provide evidence that advertising has not had an undue negative effect on the advertising markets, that advertising has not been unduly disruptive to listeners, that the CBC’s level of investment in radio has been maintained and that the variety and diversity of the service that Espace Musique and Radio 2 provide has not been diminished.”

On July 11, 2013, the Governor in Council received a petition concerning specifically the renewal of the Espace Musique and Radio 2 broadcasting licences, contained in the Decision. Essentially, the petitioner disagreed with the condition of licence allowing these services to carry paid national advertising. The petitioner therefore requested that the Governor in Council refer these decisions back to the CRTC for reconsideration and hearing.

Pursuant to section 28 of the Broadcasting Act, the Governor in Council may refer a decision back to the CRTC for reconsideration and hearing if he is convinced that the decision derogates from the attainment of the policy objectives of the Broadcasting Act. In the present case, after careful consideration of the petition, the Governor in Council was not satisfied that the decisions derogate from these objectives.

Therefore, under section 28 of the Broadcasting Act, the Governor in Council has declined to refer back to the CRTC for reconsideration and hearing the decisions to renew the Corporation’s broadcasting licences for its radio services Espace Musique and Radio 2 contained in Broadcasting Decision CRTC 2013-263 of May 28, 2013.

Implications

As a result, the CRTC decisions stand.

Departmental contact

Scott Shortliffe
Deputy Director General
Broadcasting and Digital Communications Branch
Department of Canadian Heritage
Telephone: 819-997-9058