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Decision
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Ottawa, 27 November 1985
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Decision CRTC 85-1212
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South Fraser Broadcasting Limited
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Richmond, White Rock and Delta, British Columbia - 850747700 - 841571300
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At a Public Hearing in Vancouver on 18 June 1985, the Commission considered an application to amend the broadcasting licence for CISL Richmond/White Rock/Delta by increasing the night-time transmitter power from 7,500 watts to 10,000 watts and relocating the transmitter site from Mud Bay (Delta) to Lulu Island, approximately 12.5 kilometers to the northwest; and a further application for approval of share fer of more than 10% of the total issued shares of the licensee company.
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Changes in Technical Parameters
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South Fraser Broadcasting Limited in Decision CRTC 79-521, to operate an AM station on the frequency of 940 kHz with a power of 2,500 watts (day and night) from a transmitter site located at Lulu Island. In that decision, the Commission noted that the communities of White Rock and Delta with any degree of reliability and required, "as a condition of licence, that the licensee take immediate steps to locate a suitable frequency in consultation with the Commission, and apply for service to these areas within the term of this licence".
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When it renewed the licence for CISL (Decision CRTC 84-59), the Commission approved a change in frequency from 940 to 650 kHz, an increase in the power from 2,500 to 10,000 watts (day-time) and to 7,500 watts (night-time) and the relocation of the transmitter site from Lulu Island to Mud Bay. These changes were to enable South Fraser to "provide Delta and White Rock with a signal of consistent quality".
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South Fraser subsequently informed the Commission that the Mud Bay location was no longer available for use as a transmitter site and that, on a temporary basis, it would operate on the 650 kHz frequency with a reduced power of 2,500 watts (day-time) and 725 watts (night-time) from the Lulu Island transmitter site. This temporary operation would provide sufficient time for it to make new technical arrangements and file an application to amend its licence accordingly, in order that it may provide adequate service to the entire area for which it was originally licensed.
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In assessing the present application, the Commission has taken into account the fact that South Fraser was originally granted a licence on a competitive basis, conditional upon White Rock and Delta being adequately served. After careful consideration of the technical information submitted by South Fraser, the Commission is unable to conclude that the proposed changes would provide White Rock and Delta with a good quality interference-free night-time signal. Accordingly, the Commission denies the proposal to increase the night-time power from 7,500 watts to 10,000 watts and relocate the transmitter site from Mud Bay to Lulu Island
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In light of the fact that the authorized site at Mud Bay is no longer available to the licensee, and in order to allow sufficient time for South Fraser to find a transmitter site that will provide adequate service to White Rock and Delta, the Commission approves an amendment to South Fraser's licence to operate CISL, on a temporary basis, on the frequency of 650 kHz, with a power of 2,500 watts (day-time) and 725 watts (night-time) from the Lulu Island transmitter site, for a period of one year from the date of this decision.
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Share Transfers
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The Commission also considered an application by South Fraser for approval of share transfers representing more than 10% of the company's total issued shares.
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At the hearing, it was established that several unauthorized share transfers have occurred since South Fraser was licensed in 1979. As a result of these transfers, Mr. Michael Dickinson, who held 60% of the voting shares in 1979, now controls only 38% of the voting shares through his ownership of 76% of the shares of Dickinson Radio Holdings Ltd. The shares in the holding company are subject to a shareholders' agreement which limits to some extent Mr. Dickinson's control over the holding company.
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The Commission has determined that as a result of these share transfers there has been a change in the effective control of South Fraser. In 1979, Mr. Dickinson had clear-cut control of the licensee company, but no clear-cut control.
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The Commission is of the view that a denial would impose financial hardship upon South Fraser at a time when it may require considerable funds to ensure that adequate service is proconsiders that approval of the share transfers is in the public interest. Accordingly, the Commission approves the proposed share structure set out in Notice of Public Hearing CRTC 1985-38 dated 22 April 1985.
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The Commission is concerned, however, about the fact that the transfers noted above occurred without prior authorization, as required by a condition of South Fraser's licence. It cautions South Fraser that should this practice continue in the future conditions of its licence, the integrity of the licensing process would be put into question and the renewal of its licence could be jeopardized or its licence could be revoked.
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Fernand Bélisle
Secretary General
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