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Ottawa, 2 September 1993
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Decision CRTC 93-569
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London Communications Inc.
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Hamilton, Ontario - 930283700 - 930284500
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Acquisition of Assets
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Following a Public Hearing in the National Capital Region beginning on 6 July 1993, the Commission approves the applications for authority to acquire the assets of CKMO and CKLH-FM Hamilton from Armadale Communications Limited (Armadale), and for broadcasting licences to continue the operation of these undertakings.
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The Commission will issue licences to London Communications Inc. (London), for CKMO expiring 31 August 1995, and for CKLH-FM expiring 31 August 1999, the current expiry dates, upon surrender of the current licences. The licences will be subject to the same conditions as those in effect under the current licences, as well as to any other condition specified in this decision and in the licences to be issued.
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London is wholly-owned by Jack W. Schoone and Irving Zucker. Both shareholders have extensive broadcasting experience, having operated radio stations in small and mid-sized markets throughout Canada for more than thirty years.
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The purchase price relating to this transaction is $3,500,000. Based on the evidence filed with the applications, the Commission has no concerns with respect to the availability or the adequacy of the required financing. 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 the applicant as being the benefits associated with this transaction. In general, the Commission is satisfied that, in light of the financial difficulties of the stations, approval of these applications is in the public interest.
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According to London, the intangible benefits to result from this transaction include the financial stability of the new owners, enhanced local and regional emphasis in news, the addition of a street reporter, and improvements to station facilities.
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The proposed tangible benefits included $125,000 over seven years for the provision of bursaries, equipment and financial assistance to Mohawk College, $135,000 over seven years to support the "Art and Music" show, and $90,000 for Canada Day concerts in the next seven years.
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Although the Commission notes the proposed tangible benefits claimed in respect of the initiatives noted above, it has rejected them as benefits of this transaction on the basis that they are not incremental to commitments made by Armadale with respect to Canadian talent development. Nevertheless, the Commission expects the applicant to ensure that all of the proposed expenditures included in the benefits package are made in accordance with the schedule outlined in the applications. This will result in a total of $350,000 to be spent during the next seven years.
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It is a condition of each licence that the licensee 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 each licence that the licensee 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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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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Allan J. Darling
Secretary General
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