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Ottawa, 26 August 1991
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Decision CRTC 91-635
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Carleton-Victoria Broadcasting Co. Ltd.
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Woodstock, Perth-Andover and Plaster Rock, New Brunswick - 902742600
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Pursuant to Public Notice CRTC 1991-57 dated 28 May 1991, the Commission approves the application for authority to transfer effective control of Carleton-Victoria Broadcasting Co. Ltd., licensee of the radio programming undertaking CJCJ Woodstock and its distribution undertakings CJCJ-1 Perth-Andover and CJCJ-2 Plaster Rock through the transfer of 100% of the issued and outstanding shares (7,095 shares) from Tantune Inc., a company controlled by Charles E. Russell, to Radio One Ltd.
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The purchase price for the shares is $1,150,000. Based on the evidence filed with the application, the Commission has no concerns with respect to the availability or the adequacy of the required financing.
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Because the Commission does not solicit competing applications for authority to transfer effective control of broadcasting undertakings, the onus is on the applicant to demonstrate to the Commission that the application filed is the best possible proposal under the circumstances, taking into account the Commission's general concerns with respect to transactions of this nature. As a first test, the applicant must demonstrate that the proposed transfer will yield significant and unequivocal benefits to the community served by the broadcasting undertaking and to the Canadian broadcasting system as a whole, and that it is in the public interest.
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The Commission has assessed the various projects and initiatives put forward by Radio One Ltd. as being benefits associated with the application. In general, the Commission is satisfied that the benefits package is clear and unequivocal, and that approval is in the public interest.The Commission, however, has rejected as a benefit the proposed expenditure of $10,000 associated with a radio network link with CKHJ-FM Fredericton for the provision of regional and provincial news and sports reports, on the grounds that this initiative would not result in an increase in the quantity of news and sports provided.Similarly, although the Commission notes the $6,500 benefit claimed in respect of the applicant's plans to implement a computerized music system, it considers that this proposal, while benefiting the station itself, is not an unequivocal benefit to the community or the broadcasting system.
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Moreover, Radio One Ltd. indicated that it would expand an existing Canadian talent search initiative involving performances by local artists. Of the $30,000 associated with two additional talent searches proposed by Radio One Ltd. as part of its benefits package, the Commission has rejected $7,000 on the basis that only $23,000 of the proposed amount would be an incremental benefit. Nevertheless, the Commission expects the applicant to ensure that the proposed expenditures of $109,500 included in the benefits package are made in accordance with the schedule outlined in the application.
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Allan J. Darling
Secretary General
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