Judgments

Decision Information

Decision Content

A-54-80
CTV Television Network Limited (Applicant) v.
Canadian Radio-television and Telecommunica tions Commission, National Action Committee on the Status of Women, Association of Canadian Television and Radio Artists, Mr. Kevin Hopper, the 1812 Committee, Joint Broadcast Committee, Association of Canadian Advertisers Inc./Insti- tute of Canadian Advertising, the Canadian Film & Television Association, Council of Canadian Filmmakers, Interchurch Communications, the Anglican Church of Canada, the Association of Television Producers and Directors (Toronto) (Respondents)
Court of Appeal, Thurlow C.J., Ryan J. and MacKay D.J.—Toronto, September 18, 19 and 22; Ottawa, November 10, 1980.
Broadcasting — Appeal from CRTC decision renewing appellant's broadcasting licence conditional upon the presen tation of a specified number of hours of original new Canadian drama each season — Whether CRTC exceeded its authority under s. 17 of the Broadcasting Act — Whether CRTC dis criminated against appellant — Whether CRTC failed to comply with requirements of par. 17(1)(a) — Whether the condition interferes with freedom of expression — Whether CRTC failed to give proper notice of particular question to be imposed — Whether condition is severable from renewal — Appeal allowed because CRTC failed to give proper notice of the type of condition being considered — Broadcasting Act, R.S.C. 1970, c. B-11, ss. 3, 15, 16, 17(1).
Appeal from a decision of CRTC renewing appellant's broadcasting licence conditional upon the presentation of a specified number of hours of original new Canadian drama each season. The following issues were considered: whether or not the CRTC can control program content under section 17 of the Broadcasting Act; whether or not CRTC discriminated against appellant by acting pursuant to section 17, instead of making rules applicable to all licensees under section 16; whether or not CRTC failed to comply with requirements of paragraph 17(1)(a) that a condition be "related to the circum stances of the licensee"; whether or not the condition imposed interferes with the right to freedom of expression declared in paragraph 3(c); whether or not the Commission breached the rules of natural justice in that the appellant was not given adequate notice that the particular condition would be imposed; and whether or not the condition is severable from the renewal of the licence.
Held, the appeal is allowed. The decision should be set aside and the matter referred back to the Commission for reconsider ation and redetermination according to law after the appellant has been afforded a reasonable opportunity to produce evidence and make representations with respect to conditions to be imposed. Prima facie it seems to be within the power of the Committee under section 17 when renewing the appellant's licence to impose a condition designed to further one of the objects of the broadcasting policy. It would not be within the power granted in paragraph 16(b), except under subparagraph 16(1)(b)(ix), to make regulations requiring licensees to present original new Canadian dramas. Until the power to make regu lations under subparagraph 16(1)(b)(ix) has been exercised, the power under section 17 to deal with the subject-matter on an individual basis is not ousted by subparagraph 16(1)(b)(ix). If the CRTC has power to deal with it at all, it must be by the route of imposing a licence condition under section 17, which, by its terms is broad enough for that purpose. The complaint of discrimination also fails. It was not shown that the condition placed a more onerous burden on appellant than on other network licensees and as the Commission is authorized to impose conditions related to the circumstances of the licensee, discrimination can be said to be contemplated by the Broad casting Act provided the condition is one that is related to the circumstances of the licensee. Although there is nothing in the wording of the condition which expresses or describes anything about the circumstances of the appellant or any relationship of the condition to the circumstances of the appellant, there are certain matters described elsewhere in the decision which are factual bases which the Committee considered in deciding to impose the condition. The condition, concerned as it is with the presentation of Canadian drama and containing no restrictions on freedom of expression in drama, does not offend the right to freedom of expression in paragraph 3(c). There was no notice that a condition requiring the presentation of a specific number of hours of original new Canadian drama in each season would be considered. Natural justice does not require that a person to be affected by a decision have notice in advance of the decision itself and be given an opportunity to make representations in regard to it. But where the decision to be given is not one prescribed by law in which the person concerned knows the limits of an unfavourable decision, natural justice does require that a person be given, in outline at least, the limits of the action which the Commission intends to consider. The Commis sion, before imposing such a condition, should have told the appellant that the imposition of the condition or of some more stringent condition of the same nature was under consideration and should have asked what the appellant had to say as to why the Commission should not impose it. The condition is not severable as it is apparent that the Commission did not intend to grant the renewal without the condition.
Capital Cities Communications Inc. v. Canadian Radio- Television Commission [1978] 2 S.C.R. 141, referred to. Confederation Broadcasting (Ottawa) Ltd. v. Canadian Radio-Television Commission [1971] S.C.R. 906,
referred to. John Graham & Co. Ltd. v. Canadian Radio- Television Commission [1976] 2 F.C. 82, referred to.
APPEAL. COUNSEL:
E. Goodman, Q.C. and K. Robinson for applicant.
T. Heintzman and P. Grant for respondent Canadian Radio-television and Telecommuni cations Commission.
E. Bartley for respondent Association of Canadian Television and Radio Artists.
SOLICITORS:
Goodman & Goodman, Toronto, for appli cant.
McCarthy & McCarthy, Toronto, for respondent Canadian Radio-television and Telecommunications Commission.
Hyde, Pollit, Arnold & Kirshin, Toronto, for respondent Association of Canadian Televi sion and Radio Artists.
The following are the reasons for judgment rendered in English by
TIIURLOW C.J.: This is an appeal under section 26 of the Broadcasting Act, R.S.C. 1970, c. B-11, as amended, from a decision of the Canadian Radio-television and Telecommunications Com mission which renewed the appellant's network broadcasting licence for a period of three years from September 30, 1979, but made it subject to a condition which, as it appears in the licence, reads as follows:
It is a condition of this licence that 26 hours of original new Canadian drama be presented during the 1980-81 broadcasting year, and 39 hours of original new Canadian drama be present ed during the 1981-82 season.
In the notice of appeal the condition is alleged to be that portion of the decision which reads:
The Commission considers that, in entering the 1980's, the CTV priority must be the strengthening of its Canadian enter tainment programming, with particular emphasis on the de velopment of Canadian dramatic programs capable of attract ing viewers in the most competitive mid-evening hours. Accordingly, it will be a condition of the renewal of the CTV network Licence that 26 hours of original new Canadian drama be presented during the 1980-81 broadcasting year, and 39 hours of original new Canadian drama be presented during the 1981-82 season. In planning and developing the necessary pilots
for these dramatic programs or series, a minimum of 50% should be entirely domestic, rather than co-productions with foreign partners. The primary orientation should be on Canadi- an themes and the contemplated production should be intended for telecasting in the peak viewing periods of the evening schedule.
In the course of argument, counsel for the appel lant sought to treat the whole paragraph as being the condition and it was argued that the condition in the licence varied from that in the decision, that both varied from what had been approved by the Executive Committee of the CRTC and that nei ther was the condition authorized by the Commit tee. In my view, as a matter of construction, the only part of the paragraph cited from the decision which imposes a condition is the sentence which begins with the word "accordingly" and prescribes the condition in the same terms as appear in the licence. While the wording differs somewhat from that of the minute of the Executive Committee, I am not persuaded that there is any difference of substance or that the wording of the condition as it appears in the decision was not within the author ity to prepare the decision conferred by the Com mittee on two named persons by the resolution as minuted or that it was not approved by the mem bers of the Committee before it was issued over the signature of the Acting Secretary General of the Commission. Moreover, if there is any differ ence it appears to me that the wording, as it appears in the licence, is less restrictive and less onerous than that of the minute and affords the appellant no basis for complaint. I shall according ly treat the condition imposed as being that set out in the licence.
The appellant's principal attack was that in imposing the condition, the CRTC exceeded its authority. It was submitted that with respect either to the standard of programs or to programs that are part of a network operation, the intent of sections 16 and 17 of the Broadcasting Act is that the Commission must proceed by regulation under section 16 to make rules applicable to all licensees or to all licensees of a class and that it was never intended that the CRTC should deal with pro gramming on an ad hoc basis or discriminate between one licensee and another. In this connec tion it was pointed out that the legislation spells out the right of licensees and other interested persons to a reasonable opportunity to make
representations with respect to proposed regula tions, including those respecting programming. It was submitted, more particularly, that if the CRTC has authority to control program content it can only do so by regulations under section 16, that the CRTC power under section 17 is subordi nate to that under section 16 and that by purport ing to act under section 17 the CRTC not only placed a more onerous burden on CTV than on other licensees but discriminated against CTV in a manner not contemplated by the Broadcasting Act.
The authority of the Executive Committee to issue broadcasting licences is conferred by subsec tion 17(1). It provides:
17. (1) In furtherance of the objects of the Commission, the Executive Committee, after consultation with the part-time members in attendance at a meeting of the Commission, may
(a) issue broadcasting licences for such terms not exceeding five years and subject to such conditions related to the circumstances of the licensee
(i) as the Executive Committee deems appropriate for the implementation of the broadcasting policy enunciated in section 3, and
(ii) in the case of broadcasting licences issued to the Corporation, as the Executive Committee deems consistent with the provision, through the Corporation, of the nation al broadcasting service contemplated by section 3;
(b) upon application by a licensee, amend any conditions of a broadcasting licence issued to him;
(c) issue renewals of broadcasting licences for such terms not exceeding five years as the Executive Committee considers reasonable and subject to the conditions to which the renewed licences were previously subject or to such other conditions as comply with paragraph (a);
(d) subject to this Part, suspend any broadcasting licence other than a broadcasting licence issued to the Corporation;
(e) exempt persons carrying on broadcasting receiving under takings of any class from the requirement that they hold broadcasting licences; and
(f) review and consider any technical matter relating to broadcasting referred to the Commission by the Minister of Communications and make recommendations to him with respect to any such matter.
The objects of the Commission in furtherance of which licences may be issued, are set out in section 15 which provides that subject to the Broadcasting Act, the Radio Act, R.S.C. 1970, c.
R-1, and any directions issued from time to time by the Governor in Council under the authority of the Act:
... the Commission shall regulate and supervise all aspects of the Canadian broadcasting system with a view to implementing the broadcasting policy enunciated in section 3 of this Act.
The policy declaration of section 3 is a long one but it seems desirable to set it out in full:
3. It is hereby declared that
(a) broadcasting undertakings in Canada make use of radio frequencies that are public property and such undertakings constitute a single system, herein referred to as the Canadian broadcasting system, comprising public and private elements;
(b) the Canadian broadcasting system should be effectively owned and controlled by Canadians so as to safeguard, enrich and strengthen the cultural, political, social and eco nomic fabric of Canada;
(e) all persons licensed to carry on broadcasting undertakings have a responsibility for programs they broadcast but the right to freedom of expression and the right of persons to receive programs, subject only to generally applicable stat utes and regulations, is unquestioned;
(d) the programming provided by the Canadian broadcasting system should be varied and comprehensive and should pro vide reasonable, balanced opportunity for the expression of differing views on matters of public concern, and the pro gramming provided by each broadcaster should be of high standard, using predominantly Canadian creative and other resources;
(e) all Canadians are entitled to broadcasting service in English and French as public funds become available;
(/) there should be provided, through a corporation estab lished by Parliament for the purpose, a national broadcasting service that is predominantly Canadian in content and character;
(g) the national broadcasting service should
(i) be a balanced service of information, enlightenment and entertainment for people of different ages, interests and tastes covering the whole range of programming in fair proportion,
(ii) be extended to all parts of Canada, as public funds become available,
(iii) be in English and French, serving the special needs of geographic regions, and actively contributing to the flow and exchange of cultural and regional information and entertainment, and
(iv) contribute to the development of national unity and provide for a continuing expression of Canadian identity;
(h) where any conflict arises between the objectives of the national broadcasting service and the interests of the private element of the Canadian broadcasting system, it shall be resolved in the public interest but paramount consideration shall be given to the objectives of the national broadcasting service;
(i) facilities should be provided within the Canadian broad casting system for educational broadcasting; and
(j) the regulation and supervision of the Canadian broadcast ing system should be flexible and readily adaptable to scien tific and technical advances;
and that the objectives of the broadcasting policy for Canada enunciated in this section can best be achieved by providing for the regulation and supervision of the Canadian broadcasting system by a single independent public authority.
The authority conferred by section 17 to further the objects of the Commission is a broad one. Under it, for the purpose of regulating and super vising all aspects of the Canadian broadcasting system with a view to implementing the policy enunciated in section 3, the Executive Committee may issue, amend at the request of the licensee, renew or suspend broadcasting licences or may exempt persons carrying on broadcasting receiving licences from the requirement of having a licence. For the same purpose when issuing or renewing a licence, the Committee may make the licence sub ject to such conditions related to the circumstances of the licensee as the Committee deems appropri ate for the implementation of the broadcasting policy enunciated in section 3. Prima facie it seems to be well within the power of the Commit tee under section 17, when renewing the appel lant's licence, to impose a condition designed to further one of the objects of the broadcasting policy, provided the condition is one that is "relat- ed to the circumstances of" the appellant and provided that its imposition is not contrary to the Act or to a regulation that has been made in exercise of the power to make regulations con tained in section 16. As I see it, the question to be determined at this point is thus, whether section 16 or the regulations made under it have the effect of withdrawing from the broad scope of the power of the Committee under section 17, the authority to impose the condition here in question.
Section 16 provides:
16. (I) In furtherance of its objects, the Commission, on the recommendation of the Executive Committee, may
(a) prescribe classes of broadcasting licences;
(b) make regulations applicable to all persons holding broad casting licences, or to all persons holding broadcasting licences of one or more classes,
(i) respecting standards of programs and the allocation of broadcasting time for the purpose of giving effect to paragraph 3(d),
(ii) respecting the character of advertising and the amount of time that may be devoted to advertising,
(iii) respecting the proportion of time that may be devoted to the broadcasting of programs, advertisements or announcements of a partisan political character and the assignment of such time on an equitable basis to political parties and candidates,
(iv) respecting the use of dramatization in programs, advertisements or announcements of a partisan political character,
(v) respecting the broadcasting times to be reserved for network programs by any broadcasting station operated as part of a network,
(vi) prescribing the conditions for the operation of broad casting stations as part of a network and the conditions for the broadcasting of network programs,
(vii) with the approval of the Treasury Board, fixing the schedules of fees to be paid by licensees and providing for the payment thereof,
(viii) requiring licensees to submit to the Commission such information regarding their programs and financial affairs or otherwise relating to the conduct and management of their affairs as the regulations may specify, and
(ix) respecting such other matters as it deems necessary for the furtherance of its objects; and
(c) subject to this Part, revoke any broadcasting licence other than a broadcasting licence issued to the Corporation.
(2) A copy of each regulation or amendment to a regulation that the Commission proposes to make under this section shall be published in the Canada Gazette and a reasonable opportu nity shall be afforded to licensees and other interested persons to make representations with respect thereto.
It will be observed that while the authority to make regulations under this section is also related to the furtherance of the objects of the Commis sion, the subject-matter that may be dealt with by regulations made under it is, except under sub- paragraph 16(1)(b)(ix), limited to prescribing classes of broadcasting licences and to particular subjects. Among these, however, is subparagraph 16(1)(b)(i), which authorizes the making of regu lations respecting "standards of programs" and "the allocation of broadcasting time" for the pur pose of giving effect to paragraph 3(d). When the wording of subparagraph 16(1)(b)(i) is compared with that of paragraph 3(d) it becomes apparent that what may be the subject of regulations under subparagraph 16(1)(b)(i) does not cover the whole of what is embraced in paragraph 3(d) but only the "standards of programs" and "the allocation of broadcasting time" for the purposes described in paragraph 3(d). It would not, in my opinion, be
within this power to make regulations requiring licensees to present original new Canadian drama or any other particular type of programs simply by allocating times for its presentation or by prescrib ing programming standards to which the drama or other program must conform. It follows in my opinion that if the CRTC has power to require the presentation of original new Canadian drama at all, such power is not found in the authority to make regulations under subparagraph 16(1)(b)(i). Nor is it a subject that is covered by the Non- Canadian Programs provisions in the present Television Broadcasting Regulations, C.R.C. 1978, Vol. IV, c. 381.
It was not argued that the subject could proper ly be dealt with by regulations under subparagraph 16(1)(b)(ix), but assuming that it could be, I think it is apparent from the reference in that subpara- graph to "the furtherance of its objects" and the reference to the same objects in section 17, that at least until the power to make regulations under subparagraph 16(1)(b)(ix) has been exercised, the power under section 17 to deal with the subject- matter on an individual basis is not ousted by subparagraph 16(1)(b)(ix).
Once the subject-matter of the condition is seen to be outside the regulation-making power of subparagraph 16(1)(b)(i) and is not dealt with in
regulations made under subparagraph 16(1)(b)(ix), it is apparent that if the CRTC has power to deal with it at all it must be by the route of imposing a licence condition under section 17, which, as I have pointed out, is by its terms broad enough for that purpose.
The appellant's principal submission accordingly fails.
The complaint of discrimination also fails. It was not shown that the condition placed a more onerous burden on the appellant than on other network licensees and as the Commission is authorized to impose such conditions related to the circumstances of the licensee as the Executive Committee deems appropriate for the implementa tion of the broadcasting policy, I do not see how
discrimination, even if it exists, can be said to be not contemplated by the Broadcasting Act pro vided the condition is one that is related to the circumstances of the licensee within the meaning of paragraph 17(1)(a).
For the same reasons, the appellant's further submission that the subject-matter of the condition was already dealt with by the Non-Canadian Pro grams provisions of the Television Broadcasting Regulations also fails. As I read them these provi sions are merely time allocation regulations. Not only is there nothing in them which in my opinion deals with the subject-matter of the condition here in question or conflicts with it, but in my view, as already expressed, the subject-matter of the condi tion was not properly one for regulations under subparagraph 16(1)(b)(i).
A further submission of the appellant, one that I have found more troublesome than the foregoing, was that there was no evidence of circumstances of the appellant to which the condition related so as to fulfil the requirements of paragraph 17(1)(a) that a condition be "related to the circumstances of the licensee".
There is a dearth of authority on what the phrase embraces.
In Capital Cities Communications Inc. v. Canadian Radio-Television Commission', a deci sion of the CRTC, after referring to litigation in which the licensees were involved and expressing the Commission's concern that a settlement might affect the licensees' ability to carry out their obli gations under the Broadcasting Act, went on to say [at page 149]:
Hence, in such circumstance, the Commission's consent must first be obtained before any terms of settlement and, in particu lar, any injunction is voluntarily consented to by any licensee.
This was held to be beyond the authority of the Commission when dealing with an application to amend licences.
Laskin C.J.C. said at page 169:
On the assumption of jurisdiction in the sense canvassed in the answer to question 1, two further issues are raised touching the exercise of authority by the Commission in the present case. Paragraph (b) of question 3 refers to that portion of the
1 [1978] 2 S.C.R. 141.
Commission's decision in which it made its consent a prerequi site to any settlement by the respondents of litigation initiated against them by the appellants in the Federal Court. I can find no basis in the Act for this requirement. The concern of the Commission that any settlement should not prejudice the abili ty of the respondents to carry out their obligations under the Broadcasting Act is understandable, but the Commission has licensing control which it can exercise to secure such conformi ty. There may be issues in a settlement which could not be of any concern to the Commission in respect of its authority, and it is an overreaching for it to include a requirement in its decision of its consent to the settlement of private litigation. This part of the decision is clearly severable; indeed, it was not argued by the appellants that the whole decision must fall if this part was beyond the Commission's authority.
In Confederation Broadcasting (Ottawa) Lim ited v. Canadian Radio-Television Commission 2 , the Supreme Court held that the CRTC did not have authority to impose as a term of a renewal that at the end of the period the licensee should not have a right to apply for a further renewal.
In neither case was there occasion to consider what is meant by "conditions related to the cir cumstances of the licensee".
In John Graham & Company Limited v. Canadian Radio-Television Commission 3 , I ex pressed the view that a licence condition requiring the consent of the CRTC to the transfer of shares in a licensee company was one relating to the circumstances of the licensee within the meaning of paragraph 17(1)(a), but that situation is so far removed from what is involved here that the case affords no assistance.
Turning to the condition here in question, it is first to be observed that there is nothing in its wording which expresses or describes anything about circumstances of the appellant or any rela tionship of the condition to circumstances of the appellant. Nor is there anything in the paragraph of the decision cited in the notice of appeal which discloses circumstances of the appellant to which the condition may be related. There are, however, certain matters described elsewhere in the decision which as it appears to me are factual bases which the Committee took into consideration in deciding to impose the condition. They are mingled with the
2 [1971] S.C.R. 906.
3 [1976] 2 F.C. 82 at 84.
reasoning and conclusions and counselling of the decision and are found both before and after the paragraph cited in the notice of appeal, but they all appear to be circumstances of the appellant to which the condition relates.
First, there is a reference to the affiliation agreement between the stations and the network, approved by the Commission's decision of 22 January 1973, having included the objectives of:
... operating in Canada "... a national network program service in the public interest. Such services will be varied, balanced and designed in concept to serve the national interest comprising a balanced mix of the elements of information, public service, the arts and entertainment programming, within the overall capacity of the CTV System."
Next there is a paragraph which contains a finding that this has not been achieved in certain respects, particularly in respect of Canadian drama. The paragraph reads:
In the Commission's view substantial progress was made during the 1970's by the network and its member stations in meeting this objective in relation to certain types of programming. The Commission considers that CTV has been very successful in the areas of information programs and sports, and should be com mended for the high quality of the news and public affairs and sports staff which it has assembled and developed. However, in the opinion of the Commission, CTV has not yet in the main achieved comparable results with distinctive Canadian enter tainment programming, particularly in the field of drama. Much of the discussion at the February 1979 Public Hearing dealt with this deficiency.
This deficiency of the CTV programming is I think a relevant circumstance of the appellant in relation to its application for renewal of its licence.
There is then a paragraph referring to the exten sion of service and the paragraph cited in the notice of appeal follows. It is in turn followed by a paragraph which cites what appears to me to be another circumstance of the appellant: viz. the financial and productive capability of the CTV system to sustain a significantly greater production effort. It reads:
It is recognized that this condition will necessitate a substantial increase in the funds provided for the development and produc tion of Canadian programs at a time when many other network costs are increasing. Nevertheless, the Commission is satisfied that the resources in the CTV system, both in terms of financial
and production capability, are sufficient to sustain a signifi cantly greater production effort. What is required now is the commitment of the member stations to employ these resources collectively.
Two paragraphs later the decision proceeds:
At the Public Hearing the Chairman of the CTV Executive Committee, speaking for the member stations, stated several times that the present network arrangements did not prevent effecting increased programming expenditures whenever such increases were agreed to by the Board of Directors. The member stations can be assessed to permit such cost increases according to the network's cost-sharing formula. It was regret table, however, that no satisfactory commitment was made by CTV to increase expenditures on Canadian programming de velopment and production in order to produce domestic pro grams capable of attracting Canadian viewers in the face of foreign competition. The above condition of licence will now require such a commitment.
Here, as it seems to me, is expressed another circumstance of the appellant: viz. its capacity to increase expenditures and to assess member sta tions and its unwillingness to make a satisfactory commitment to increase expenditures on Canadian programming development and production in order to produce domestic programs capable of attracting Canadian viewers in the face of foreign competition. Having regard to the fact that what was before the Commission was whether the licence of the appellant should be renewed, and that there had been what the Commission regard ed as a failure by the appellant to achieve satisfac tory results in the field of Canadian drama, this seems to me to be a particularly important circum stance of the appellant.
Later, the decision proceeds:
In reviewing the situations of the various CTV member stations, it is obvious that there are great variations in financial strength, capability and will to produce programs of national network calibre. The Commission considers that each member station should place primary emphasis in its individual local operation on the provision of suitable news and public affairs programs. However, in order to improve significantly Canadian entertainment programming, different resources of various sta tions should be combined for purposes of developing network programs capable of attracting audiences nationally. Thus some member stations could undertake the development of pilots for possible national use, while other stations not capable of such development could contribute financially according to their ability to do so. It is recognized that the production of such programs can only be expected from the larger stations and the Commission considers that these stations must commit themselves to this development.
The first sentence of this paragraph appears to me to cite a relevant circumstance of the appellant i.e. the great variations in the financial strength, the capability and the will of member stations to produce programs of national network calibre.
Finally, there is the circumstance found in the following paragraph, that the network does not assume enough of the financial risk and expense of productions by network stations.
The Commission also considers that the network itself should be prepared to absorb more, if not all, of any shortfall between the cost of production and the lease payment made by the network to the producing station. At present the station produc ing the program must usually hope to achieve additional sales beyond the network to recover its cost, let alone to make any profit on the project. This need has an inevitable effect on the nature and elements of the program concerned. It would be desirable for the network to assume much more of the risk and the expense than it now does in many instances. Obviously this will require the provision by the member stations to the net work of substantially greater funds for programming.
Having regard to these features of the situation with which the Executive Committee was dealing, I do not think it can be said that there were not circumstances of the appellant to which the condi tion related or that the Committee did not base its decision on them.
It was also submitted that the condition offends paragraph 3(c) by seeking to control the content of programs and thus by interfering with the right to freedom of expression. In my opinion, there is no merit in this submission. There is nothing whatever in the condition which interferes with freedom of expression within the meaning of paragraph 3(c). Even if it were possible, as I think it is not, to read paragraph 3(c) as if it stood alone and were to be given the widest possible meaning, the condition, concerned as it is with the presentation of Cana- dian drama and containing no restrictions on freedom of expression in such drama, would not offend it.
I turn now to the contentions put forward by the appellant that in imposing the condition the Corn- mission breached the rules of natural justice in that the appellant was not given adequate notice before the hearing that the imposition of a condi tion was to be considered and in that the decision
was made by members who had not been present throughout the hearing. The first of these objec tions, in my view, in the circumstances, involves two questions, that is to say, whether the appellant had notice that a condition of some sort as to the production of Canadian drama might be imposed as a term of renewal of the appellant's licence and, second, whether in the circumstances, the appel lant had adequate notice and a fair opportunity to present its position with respect to the particular condition which was imposed.
On the first of these issues, I think it is apparent that the appellant had ample notice that its failure to fulfil the expectations generated by its represen tations made at previous licensing hearings as to the presentation of Canadian drama would be a subject of discussion at the hearing of February 1979. The notice of that meeting specified that the discussion would include "the adequacy of the network structure and operation". This is, I think, to be read in the context of what had been said in earlier decisions of the Commission, and what had transpired in the meantime. The decision of Janu- ary 22, 1973 which renewed the appellant's licence from October 1973 to September 30, 1976 con tained the following:
At the public hearing the Commission expressed the desire that the Network develop more drama programming with Canadian themes, concerns and locales. The Network acknowl edged the need and stated it expected to introduce at least one new venture of this nature by the start of the 1973-74 season.
The decision of July 5, 1976, which renewed the appellant's licence for a further three years includ ed the following:
At the November 1972 Public Hearing the Commission expressed interest in developing drama with Canadian themes, concerns and locales. Subsequently, CTV presented "Excuse My French", a weekly drama series produced by CFCF-TV in Montreal, employing French and English-speaking Canadian performers. The series, which is not being continued, ran two seasons, achieving the third highest rating among CTV's Canadian programs in the winter of 1975-76. The Commission expects the network, in future schedules, to correct the deficien cy of no weekly Canadian drama in the 1976-77 network schedule.
In August 1978, the Commission by letter noti fied the appellant of its intention to discuss at the public hearing the appropriate role of CTV enter ing the 1980's including, inter alia, the topic of "conditions necessary for improving Canadian programming".
Next the. appellant's letter of September 25, 1978 applying for renewal of its licence included the following paragraphs:
The CTV Television Network last appeared before the Com mission in November 1975 to seek the renewal of its licence. The Commission's decision to renew that licence for a period of three years was announced in July 1976 (CRTC 76-395). In that announcement, the Commission drew to the Network's attention several points of concern.
For example, the CRTC said it expected the Network, in future schedules, to correct a perceived deficiency of weekly Canadian drama in the 1976/77 network schedule. During the broadcast season just recently concluded, CTV produced and scheduled a successful, weekly half-hour adventure-drama series entitled, "Search and Rescue" and, for the current 1978/79 season planned, invested in, developed and committed to produce and schedule a science fiction-drama half-hour series, "The Shape of Things to Come". Both projects were the product of interna tional co-production agreements with independent producers. The latter property has been deferred indefinitely as a conse quence of the failure of independent Canadian financial part ners, despite the co-producers and ourselves having delivered theatrical distribution with monetary guarantees, U.S. and foreign television distribution with substantial financial guaran tees and our own Canadian license contracts—all of which conformed to their expressed needs and requirements.
It is, I think, manifest from this that the appel lant was fully aware that the subjects of (1) Canadian drama, (2) the appellant's performance with respect to the presentation of Canadian drama and (3) the Commission's concern that not enough was being achieved with respect to the presentation of Canadian drama would be subjects of discussion at the public hearing. It seems to me that this would have generated at the least an uneasy feeling that the Commission might consid er imposing a condition on the renewal of the appellant's licence, but, in my view, it does not amount to notice that that was to be considered. The matter was, however, carried much further in the written intervention of the Council of Canadi- an Filmmakers, (CCFM). The document, consist-
ing of some 40 typewritten pages, contains a dis cussion on the subject of Canadian drama and the appellant's failure to live up to its promises of performance with respect to Canadian drama and concludes by recommending that "individualized performance committments [sic]" be attached as conditions of the appellant's licence, including, inter alla,
(f) minimum program category quotas to be established, particularly for drama.
This intervention, in my opinion, effectively put the appellant on notice that the Commission would be asked by the intervener to impose a condition requiring a minimum presentation of Canadian drama and would have occasion to consider that course. That, I think, is sufficient, so far as it goes, to satisfy the natural justice requirement of notice that the imposition of a condition as suggested by the intervener would be considered.
The other question, that of whether there was due notice that the Commission would consider imposing a condition of the kind imposed, that is to say one requiring the presentation of a specific number of hours of original new Canadian drama in each of the 1980-81 and 1981-82 broadcasting seasons and whether the appellant had a reason able opportunity to make representations with respect to such a condition is more serious. There was no formal or written notice that such a condi tion would be considered. Nor was there any oral notice of it. In the course of the hearing, there was a lengthy discussion of the subject of Canadian drama but, so far as I have found, no mention was made of a condition even resembling the kind imposed until late in the proceedings, when, in the course of the questioning of Mr. Murray Chercov- er, the President of the appellant Company, by Commissioner Dalfen, the following exchange occurred between the Chairman and Mr. Chercover:
COMMISSIONER DALFEN: I wonder if you could have a rest for a while, Mr. Chercover, and I could ask Mr. McGregor and Mr. Peters .... You may not have a rest so soon, the Chairman wants to ask some questions.
THE CHAIRMAN: My question is very short, but before he moves to another area, what would be—you don't have to give me my reaction—but how about a condition of licence that would read like this:
One drama per year, twenty-six episodes, during five years.
MR. MURRAY CHERCOVER: One drama, twenty-six episodes a year. Would you mean by that then that you would for example have no concern about our withdrawal from the support we've given to the feature industry, or one-shot drama specials that we've shown you, and/or with independant (sic) producers?
I mean, that's the kind of thing that reduces our flexibility to respond to the product and the productivity of the private independent producers. It's an arbitrary ... it's the classic thing that Mr. Dalfen was talking about. It's a counterproductive, quantitative, therefore constraining regulation, as it were.
It's not an incentive.
THE CHAIRMAN: I was thinking of that as a minimum. A floor. It's very clear. One drama, twenty-six episodes per year, five years, next licence. Interesting.
MR. MURRAY CHERCOVER: If that's a deal, let's make it.
As a matter of fact, for seven years we'll keep working in the feature field.
THE CHAIRMAN: I did not say seven years.
Well, you sleep on it. We'll move with the next line of questioning.
In my view, if the Commission was considering or intended to consider the imposition of a condi tion of the kind later imposed, this was not ade quate notice either of the Commission's intention or of the substance of the condition to be con sidered. And while Mr. Chercover was invited by the Chairman to "sleep on it", by which I assume it was intended that he consider it, I do not think the episode amounts to fair notice that the Com mission was considering or intended to consider the imposition of the condition later imposed or that the invitation to "sleep on it" was the offer of an opportunity to make representations with respect to the effect of the imposition of such a condition.
Natural justice does not, as I understand it, require that a person to be affected by a decision have notice in advance of the decision itself and be given an opportunity to make representations in regard to it. But where, as here, the decision to be given is not one prescribed by law in which the person concerned knows the limits of an unfavour able decision, it seems to me that natural justice does require that a person be given, in outline at least, the limits of the action which the Commis-
sion intends to consider. In my opinion, in the particular circumstances of the case, the least that fairness to the appellant required, was for the Commission, before issuing a decision imposing such a condition, to tell the appellant that the imposition of the condition or of some more strin gent condition of the same nature was under con sideration and to ask what the appellant had to say as to why the Commission should not impose it.
It is to be observed that there are elements in the condition which were not in what was recom mended in general terms by the CCFM interven tion. The recommendation suggested no minimum number of hours. Nor did it specifically mention "new" or "original" Canadian drama. Moreover, the condition imposed differs in substance from that suggested in the exchange between the Chair man and Mr. Chercover.
In my opinion, therefore, the decision cannot stand. It should be set aside and the matter should be referred back to the Commission for reconsider ation and redetermination according to law after the appellant has been afforded a reasonable op portunity to produce evidence and make represen tations with respect to conditions, if any, to be imposed on the appellant's licence requiring the presentation of Canadian drama and after such evidence and representations have been duly and fairly considered by the Commission and by its Executive Committee.
As it is necessary to refer the matter back to the Commission, where the representations of the appellant on the imposition of conditions will be made to the Commission itself, before the matter is dealt with by the Executive Committee, the second objection of the appellant, that the full panel of members of the Commission were not present throughout the public hearing, in my view, becomes irrelevant. But there is no doubt that all the members of the Commission who had been present at the beginning of the public hearing were not present throughout and that, at one point, when the subject-matter of Canadian drama was under discussion, the members present consisted of but two members of the Executive Committee.
The matters complained of occurred on the second and third days of the public hearing. At the commencement of the sittings on the second day, one of the members was not present. The tran script indicates that the hearing proceeded without him, and without objection by the appellant. The member was present later in the day but when he came in was not noted. The transcript for the afternoon of the third day records the following:
THE CHAIRMAN: ... At this point we will break for fifteen minutes. I would like, however, to say this—and I think I have to have the agreement of the applicants—that a few members on my panel have some problems about flights, and also for something else in another city tomorrow morning, so if you have no objection we will continue with a reduced panel. But it depends on the applicants, if they accept that or not.
If they don't, they will have to stay.
MR. D. OSBORN: If Mr. Hylton has any kind of memory, I think I know what his response will be.
MR. JOHN HYLTON: No, I was just wondering if we should have a little survey and see who is leaving and who is staying, and whether they had been nice to us in their questions.
THE CHAIRMAN: Let me give you an allegory. You have a cup of coffee, the coffee and the sugar are gone, only the cream is left.
MR. MURRAY CHERCOVER: Would you care to name names?
THE CHAIRMAN: No, I will not name names. That will be the surprise after the coffee break.
MR. JOHN HYLTON: That gives us no concern, sir. THE CHAIRMAN: Thank you. It is much appreciated.
Fifteen minutes. Un [sic] pause de quinze minutes.
—A recess was taken at 3:45 p.m.
—Upon resuming at 4:10 p.m.
(Present on the panel upon resuming, were Chairman, Dr. P.
Camu, Commissioner C. Dalfen, and Commissioner J. Hebert).
At this stage, three members of the Commission were absent. Later, Mr. Hebert also retired from the hearing. These members were absent during at least a part of the time when the appellant was making its response to interventions, including that of CCFM. It appears as well that the same four members who absented themselves subsequently took part in the consultation provided for in sub section 17(1) and that two of them were also present at the meeting of the Executive Committee which approved the renewal of the licence subject to the condition.
Assuming that the members who were present at the beginning of the public hearing had been
designated to hear the matter pursuant to subsec tion 19(4), it seems extraordinary that they should not have been present throughout the hearing. Moreover, it does seem undesirable, if not, indeed, contrary to the Broadcasting Act, that a member who is part of a panel designated to hold a public hearing and who absents himself during a part of the hearing should thereafter be present at or participate in the consultation required by subsec tion 17(1). Counsel for the Commission urged that the departure of the members from the hearing had been in one instance with the express, and in the others with the tacit, approval of the appellant and that the appellant had subsequently filed a lengthy memorandum for the information of the members who had absented themselves. He sub mitted that the objection had been waived and that in any event the public hearing required by the statute was merely for the purpose of obtaining the representations of members of the public and of informing the Commission and that it was not necessary in law for the members to remain in attendance throughout the hearing.
Since in my view the appellant's objection is now irrelevant, it does not appear to me to be necessary to reach a concluded opinion either on the objection or on the answer of the Commission and nothing in these reasons should be regarded as supporting either the objection or the answer. However, I think it is opportune to observe that for a Chairman at a hearing at which a party is seeking renewal of a licence to ask a party to say whether he objects to a member of the panel leaving while the hearing is in progress is capable of putting the party in a position of embarrassment into which he should not be put. Undoubtedly, he could object but if he did he might well have to wonder if by doing so his position with the Com mission was being prejudiced. Moreover, for the Chairman to ask if a party approves of members of the panel absenting themselves puts the Commis sion in the undesirable position of asking indul gences from parties who are entitled to assume that members of the panel will stay to hear their presentations.
Several further points were raised with respect to the alleged uncertainty of the condition itself and with respect to alleged uncertainty of what is required by the other wording contained in the
paragraph cited in the notice of appeal. As the matter is to go back to the Commission, it appears to me to be unnecessary to deal with these points on this appeal.
The remaining point that should be mentioned is a submission by the appellant that the condition is severable from the rest of the decision and that it alone should be set aside, thus leaving the appel lant with a renewal licence not subject to such a condition. In my opinion, the condition is not severable from the renewal of the licence as, in my view, it is apparent from the decision that the Commission did not intend to grant the renewal without the condition.
It will be necessary, therefore, as I see it, to set aside the decision in so far as it grants renewal of the licence subject to the condition and to refer the matter back to the Commission for the purpose indicated. As the effect of this will be to leave the appellant without a licence to continue its opera tion the judgment of the Court should not be pronounced for a period of two weeks from the date of the filing of these reasons, or for such further period as may be arranged by agreement of the parties and with the approval of the Court, in order to permit the appellant to seek and the respondent to consider the grant of a temporary licence pending the final determination of the appellant's licence renewal application.
Having regard to Rule 1312 there should be no costs awarded to either party.
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RYAN J.: I concur.
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The following are the reasons for judgment rendered in English by
MACKAY D.J.: I agree with the reasons and conclusions of the Chief Justice in allowing this appeal and also with his directions in respect of the scope of the new hearing.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.