Highlights of the CRTC'S Canadian Talent Development (CTD) Policy

The CRTC outlined its new market by market approach to CTD contributions in CRTC's PN 1995-196. The new approach slashed radio stations' direct CTD funding from $7 million to $1.8 million and made indirect commitments voluntary. The notice offered licensees the opportunity to apply for relief from their commitments with respect to direct cost contributions to CTD which were made at the time of their last license renewal. Instead, each licensee would assume a condition of license (COL) requiring them to send their contributions directly to eligible third parties which include FACTOR, MusicAction, national, provincial and regional music organizations, performing arts groups, schools and scholarship recipients.

In implementing its new approach, the CRTC ensured that more than $1 million would be guaranteed to FACTOR/MusicAction in previous year. It also noted that stations who had made commitments to MusicAction would be required to provide this funding for the entire license term. Under the CRTC's new approach, which began in 1996-97, indirect commitments also became voluntary. It is important to note that stations in their first term of license, are expected to adhere to their existing CTD commitments for the duration of their first license term and that commitments made at the time of an ownership or control transaction must be continued.

The CRTC's new approach noted that all moneys going to third parties must be directly connected to the development of Canadian musical and other artistic talent. The Commission further noted that grants to schools would generally be eligible for purposes of Canadian talent development only when directed to arts faculties to purchase instruments or undertake performances or when such grants are used to fund other projects related to the development of musical and artistic talent. Scholarships will only qualify when they support students engaged in music, journalism or other artistic studies. Grants to those organizations offering courses in broadcasting or devoted to the continuing education of radio station staff will not qualify.

The CRTC requires that licensees demonstrate their compliance by submitting proof of their contributions to third party organizations as part of their annual returns. The Commission generally expects that radio stations ensure that at least half of their annual CTD payments are made in the first quarter of each fiscal year, with the remaining balance paid before the end of the third quarter.

For more information, please refer to CRTC documents (see below) or contact Richard Cavanagh at (613) 233-4035, ext. 353.

1) PN 1995-196, CRTC outlines its new approach to CTD; and

2) CRTC Decision 1997-137, CRTC confirms its new approach to CTD following an appeal from Music Industry.