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Ottawa, 9 May 1986
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Decision CRTC 86-435
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Diffusion Laurentides Inc.
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Sainte-Adèle and Val-Morin, Quebec - 853303600 - 853304400 - 852990100
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Following a Public Hearing in Montreal on 17 March 1986, the Commission approves the application for authority to transfer effective control of Diffusion Laurentides Inc., licensee of CIME-FM Sainte-Adèle and CIME-MF-1 Val-Morin, through the transfer of 636 common voting shares, representing 55% of the outstanding common shares, from 114993 Canada Inc. (19.1%), Jean-Pierre Hogue (24.6%), Guy Dagenais (0.1%) and 114388 Canada Inc. (11.2%), along with 8,808 preferred non-voting shares to Radio MF C.I.E.L. (1981) Inc., a company indirectly controlled by Jean-Pierre Coallier.
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At the hearing, Diffusion Laurentides pointed out that it was experiencing difficulty due to the competition among Montreal radio stations and the seasonally variable market in the Laurentian area. It stated that, for purely financial reasons, it had been unable to fulfil its commitment with regard to Foreground format programming over the past year or to solve the technical problems affecting the operation of its stations. On 29 July 1985 (Decision CRTC 85-597), the Commission renewed the licences for CIME-FM and CIME-MF-1 for one year only, until 30 September 1986, noting that the licensee had not met its 13% Foreground programming commitment by broadcasting a level of only 5.6%, and that various technical concerns were affecting the operation of its stations. These included specifically the use of a rebroadcasting station (CIME-MF-1) as an originating station and of CIME-FM as its rebroadcaster and the unauthorized technical parameters employed in the operation of CIME-MF-1.
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Jean-Pierre Coallier, Manager of CIEL-FM Longueuil, is an experienced broadcaster. He stated at the hearing that, after an agreement in principle was signed with Diffusion Laurentides Inc. in the fall of 1985, the licensee had taken concrete steps to remedy the situation. According to a self-evaluation of CIME-FM programming conducted early in March 1986, the licensee calculated that it was broadcasting a level of 11.7% Foreground programming. At the hearing, Mr. Coallier made a commitment to reach the promised level of 13% by 1 May 1986. He added [TRANSLATION]: "From now on, CIME-FM will meet the commitments contained in its Promise of Performance."
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The licensee's performance and its adherence to its programming commitments will be dealt with in the Commission's decision on the application for the renewal of the licences for CIME-FM Sainte-Adèle and CIME-MF-1 Val-Morin, which was also considered at this hearing. A separate decision will be published shortly.
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As for the technical problems, Mr. Coallier said that his consulting engineer had contacted the Department of Communcations and proposed a plan for corrective action. He added [translation]: "We are making a firm commitment to resolve the technical problems of the two Diffusion Laurentides stations as soon as possible after the CRTC confirms our transaction". The changes would cost between $30,000 and $50,000 and would be implemented before the expiry of the present licences on 30 September 1986.
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Mr. Coallier also pointed out the advantages of the transaction for both CIME-FM and CIEL-FM, which would make it possible to integrate and make better use of the services of both stations, especially in administration, advertising, data processing and technical areas. This will itself lead to substantial savings, and enable the two independent FM stations to deal better with competition from other Montreal radio stations whose coverage reaches well into each of their principal markets, these being the Laurentians north of Montreal in the case of CIME-FM and the South Shore of Montreal in the case of CIEL-FM.
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The Commission has noted the commitment that both stations will maintain their individual identities and distinct characteristics. CIME-FM will retain an automony over its own programming, especially in its news broadcasts, and will continue to reflect the Laurentian area. The Commission has also noted the statement that CIME-FM will extend its coverage area to include the Saint-Jovite area as soon as financially feasible. The Commission encourages the licensee to proceed with these plans at the earliest possible date.
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In view of the fact that this transaction will enable CIME-FM to remedy its financial problems, the experience and proven performance of Mr. Coallier as a broadcaster, and the firm commitments that have been made to correct both the technical concerns and the level of Foreground programming, the Commission is convinced that approval of this transaction will have concrete and significant advantages for both broadcasting undertakings concerned and the communities they serve, and that such approval is in the public interest.
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As well, the Commission approves the application to amend the licence for CIME-MF-1 Val-Morin by changing the frequency from 104.9 MHz to 102.9 MHz. This application became necessary as a result of Decision CRTC 85-492, which authorized Radio Lachute (1980) Inc. to operate a new FM station at Lachute, Quebec on the frequency 104.9 MHz.
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In accordance with paragraph 22(1)(b) of the Broadcasting Act, the Commission will only issue the licence amendment, and the authority granted herein may only be implemented, at such time as written notification is received from the Department of Communications that it will issue an amendment to the Technical Construction and Operating Certificate.
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The Commission notes that, at the hearing, the licensee withdrew that part of its application to increase the power of CIME-MF-1 from 3.9 watts to 14 watts.
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Fernand Bélisle
Secretary General
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