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Ottawa, 30 July 1993
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Decision CRTC 93-325
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993682 Ontario Limited
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Lindsay, Ontario - 930073200
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Acquisition of assets
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Following a Public Hearing held in the National Capital Region on 16 June 1993, the Commission approves the application submitted by 993682 Ontario Limited for authority to acquire the assets of radio programming undertaking CKLY Lindsay from Price Waterhouse Limited, acting as receiver/manager and agent for McNabb Broadcasting Limited (McNabb), and for a broadcasting licence to continue the operation of this undertaking.
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The Commission will issue a licence to 993682 Ontario Limited, expiring 31 August 1996, the current expiry date, upon surrender of the current licence. The licence will be subject to the conditions in effect under the current licence, as well as to those conditions specified in this decision and in the licence to be issued.
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McNabb experienced financial difficulties with the operation of CKLY which caused the station to go into receivership. On 15 July 1992, the Commission authorized Price Waterhouse Limited, the receiver, to assume temporary management authority of McNabb. Accordingly, Price Waterhouse Limited is the vendor.
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The purchaser, 993682 Ontario Limited, consists of eleven shareholders. All of the shareholders are Canadian; eight of the eleven shareholders live in Lindsay. No shareholder holds clear control of the company. The purchase price relating to this transaction is $700,000. 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 intangible benefits identified by the applicant as flowing from this transaction. In general, the Commission is satisfied that the benefits package is clear and unequivocal and that approval of this application is in the public interest.
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In assessing this application, the Commission has taken into consideration the current licensee's serious financial difficulties. The Commission considers the applicant's commitment to ensure the continuation of Lindsay's only local radio service to be a significant benefit of this transaction. Moreover, the Commission is satisfied that the applicant has sufficient financial resources to maintain and improve this service.
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The Commission notes that the applicant has undertaken to maintain the commitments contained in CKLY's current Promise of Performance and is proposing to increase the amount of local programming broadcast on the station each week from 117 hours to 121 hours. In addition, the applicant has indicated that it will increase the amount of news programming broadcast each week from 7 hours 6 minutes to 8 hours 20 minutes. The applicant will also increase the station's news staff to four full-time employees and will establish a network of "stringer" reporters to allow for enhanced local news coverage.
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The applicant also confirmed that it will fulfill all of the Canadian talent development initiatives committed by McNabb under the current licence. Specifically, in each year of its licence term, the applicant will allocate $8,650 in direct expenditures and $9,000 in indirect expenditures to Canadian talent development.
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In Public Notice CRTC 1992-59 the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment. In keeping with the Commission's policy, it encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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It is a condition of licence that the applicant adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and approved by the Commission.
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It is also a condition of licence that the applicant adhere to the provisions of the CAB's "Broadcast Code for Advertising to Children", as amended from time to time and approved by the Commission.
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The Commission acknowledges the interventions submitted in support of this application by Don McCumber, the Honourable Bill Scott, Lindsay Collegiate & Vocational Institute, Queen Street United Church, Ross Memorial Hospital and the Victoria/ Haliburton Chapter of the Crohn's and Colitis Foundation of Canada.
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Allan J. Darling
Secretary General
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