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On June 2, the CRTC started its hearing into the acquisition of TQS Inc. by Remstar Broadcasting. After the acquisition in April, Remstar announced plans to revive the bankrupt network -- namely shutting down news operations in Montreal, Quebec City, Sherbrooke, Trois-Rivieres and Saguenay.
Complaints
Quebec politicians not only called on the CRTC to either deny the transaction request or order Remstar to maintain TQS' local news operations, but they also wanted Quebec to be given additional control over broadcasting in the province.
Quebec Premier Jean Charest sent a letter to three federal ministers saying the province wants to begin negotiating the right to control telecommunications and cultural policies within the province.
While Charest's objective is greater input into CRTC decisions affecting Quebec broadcasters, other provincial parties such as Parti Quebecois and Action democratique du Quebec want complete control over telecommunications in the province. The Bloc Quebecois wants to create a Quebec radio-television council (CQRT), which would have full control over issues such as licensing new Canadian and foreign channels in the province.
Maria Mourani, Bloc MP for Ahuntsic, says, " 'this body will ensure that Quebec culture will be predominant in the face of foreign culture - a protection for Quebec culture and not a laxity for foreign culture.' " She explains, " 'what Mr. Charest is asking for is a type of regional branch office. What we are asking for is really a devolution of powers.' " In fact, the Bloc feels that Ottawa should give the power to regulate broadcasting to any province that wants to.
Quebec politicians aren't the only ones concerned about the shutdown of TQS' local news operations. Many of the 240 interventions received by the CRTC were from Quebec citizens who outlined the importance of TQS news to their lives (Tech Media Reports, 05/30/2008).
The Hearing
At the hearing, Remstar said that TQS can't afford to fight with news competitors. The station is waging a losing battle in the news ratings wars with TVA and Radio-Canada (Toronto Star, 06/03/2008). Ratings for TQS newscasts have dropped 40% in the last four years. TQS vice-president Serge Bellerose explains, " 'we would never be able to return TQS to profitability if we maintained the status quo in news' " (Marketing Daily, 06/03/2008). Shutting down the newsrooms will allow Remstar to invest more money in drama (Toronto Star, 06/03/2008).
CRTC chair Konrad von Finckenstein told Remstar owners Maxime and Julien Remillard, " 'we have a lot of problems with your application. You're asking us to make an exception, one that would be in violation of our policy.' "
A 1995 CRTC ruling stated that " 'the production of local news and information constitutes the primary vehicle for local stations to achieve' " certain objectives of the Broadcasting Act, von Finckenstein points out. He questions how the CRTC can reconcile that ruling with Remstar's proposal.
Maxime Remillard explains that while TQS will not have news, it will have public affairs analysis and citizen-produced information and opinions that would reflect Quebec's regions.
Von Finckenstein points out that earlier in the year, the CRTC " 'rejected an application from HDTV Network because it lacked local content. We approved Rogers' purchase of CityTV on the condition that it reinstitute news in Vancouver, which had been discontinued.' " He says, " 'that means we have been clear. News is an integral part of broadcasting stations. Given that, how can we justify giving you a licence when you contemplate not having any news?' "
TQS' Bellerose explains, " 'we could keep doing news with a lot fewer resources. Obviously, they would be news programs of lesser quality, they'd be less attractive, and they would reinforce the trend towards eroding audiences...and consequently, less revenue' " (Cartt, 06/04/2008).
The CRTC also accused TQS of not respecting Canadian content requirements. According to figures by the Commission, Canadian content on the station dropped from 54% to 32% during the day and from 49% to 42% at night between 2001 and 2007. CRTC guidelines state that Canadian shows should represent at least 60% of programming during the day and 50% of programming at night (Broadcaster, 06/04/2008).
Recommendations
On the final day of public hearings, the CRTC gave Remstar a list of issues it wants addressed in the next week, and asked the company to submit a " 'new programming proposition' " that includes Category 1 regional or local news programming " 'in a format of its own choosing.' " The CRTC added, however, that it is " 'open to examining an innovative concept, different from the traditional news program.' "
The Commission also wants to know how Remstar will finance its rebuilding plan and the sources of the money. It further requested to see the financial statements of both Remstar and the two Remillards. CRTC's broadcasting vice-chair Michel Arpin said that without this information, the Commission will reject the application for a licence.
In addition, the CRTC wants TQS to present a detailed plan on how it will increase the number of hours of priority programming, and asked that it set up an adequate system to show that it is meeting Canadian content requirements.
Finally, the CRTC requested more information about revenue generated from local ad sales compared with local programming expenses, and about its plan to provide program sub-titles for the hearing impaired (Cartt, 06/05/2008).
The CRTC's decision on TQS' proposed licence change is expected to come in the early summer (Cartt, 06/04/2008).
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