ARCHIVED -  Decision CRTC 88-820

Decision

Ottawa, 25 November 1988

Decision CRTC 88-820

CJMD Chibougamau (1986) Inc.

Chibougamau and Chapais, Quebec -880764600

Following a Public Hearing in Trois-Rivières, Quebec on 5 July 1988, the Commission approves the application for authority to acquire the assets of CJMD Chibougamau and its rebroadcaster CFED Chapais, owned by C.J.M.D. Chibougamau Inc., and for broadcasting licences to continue the operation of these undertakings under the same terms and conditions as the current licences.

The Commission will issue licences to CJMD Chibougamau (1986) Inc. upon surrender of the current licences. The new licences will expire on 31 August 1991.

The applicant company is controlled by Messrs. Daniel Tremblay, Frontenac Tardif and Jean-Robert Tardif. The Commission called the applicant to the public hearing to discuss the Commission's concerns regarding the above-mentioned transaction which had been carried out without prior Commission authorization, as well as the broadcast of programs received from networks operated by Télémédia Communications Inc. (Télémédia).

With respect to the acquisition of assets, the current licensee explained that the sales contract had been ratified in March 1986 and that it was not aware at the time that the prior authorization of the Commission was required. It stated that the stations were then in [TRANSLATION] "serious financial difficulty" and that the purchaser planned to inject new funds to ensure their survival.

For its part, the applicant stated that, in the year following the acquisition, it had moved the station to new premises and had improved the technical facilities. It had then re-organized the staff, hired a new general manager, two program hosts and a full-time journalist, and had purchased a news van and other equipment. The applicant has invested a total of $140,000, including $10,000 from each shareholder at the time of the transaction, and subsequent loans totalling $110,000 of which $60,000 was in the form of personal loans. Finally, the applicant stated that the revival of the stations had enabled it to offer improved programming and to attract more advertisers which, in conjuction with the economic growth in the region, has increased. sales by, approximately 30% since March 1988.

The Commission has taken into account the particular circumstances noted above with respect to the transaction. It has also noted the isolation of the communities of Chibougamau and Chapais, the fact that these stations provide the only local radio service in their areas, and the benefits that local residents have derived from the transaction. The Commission is satisfied that the tangible and intangible benefits associated with the transaction are significant and unequivocal benefits for the commnities saved, and that these benefits are commensurate with the size of the transaction and the resources available to the parties.

The Commission is nonetheless concerned by the fact that, various actions were taken without it prior authorization, as is required by condition of licence. It reminds the applicant that any future failure to fully comply with the regulatory requirements related that the transfer of ownership or control could jeopardize the renewal of its licences or result in their revocation.

At the hearing, the licensee stated that it now carries local newscasts of 3 to 8 minutes' duration at 12:15 p.m. and 5:15 p.m. daily and that, commencing in August 1988, it would also broadcast local news at 8:15 a.m. On weekends local newscasts are not carried.

In this regard, the Commission received an intervention from the Conseil des usagers des médias de la Sagamie Inc., objecting to the cessation of CJMD's news service in April 1988 for a two-month period and requesting that the station enact measures to ensure that the service is maintained. In its reply, the applicant stated that a full-time journalist had been hired in June 1988, thus enabling the station to add a third newscast to its daily schedule. At the hearing the applicant also pledged to maintain the existing level of local news during the current licence term.

The Commission notes that the applicant was unable to comply with its request for a self-assessment report, the submission of logger tapes and the playlist for the week of 6 to 12 March 1988. However, it did submit the program log and explained at the hearing that it has since repaired its tape recorder and purchased new equipment to prevent any reoccurrence of this problem.

Subsections 8(5) and 8(6) of the Radio Regulations, 1986 require each licensee to retain and furnish to the Commission upon request "a clear and intelligible tape recording or other exact copy of all matter broadcast", for a period of at least four weeks from the date of the broadcast. The Commission reminds the applicant of the importance of complying with these obligations. The applicant is, therefore, required to submit a report within 60 days of the date of this decision confirming that equipment is in place, that it is operational and that it meets Commission requirements.

Further, the Commission notes that the program log submitted included rebroadcasts of network programs. The applicant confirmed at the hearing that, between midnight and 6:00 a.m., it carries programs received from networks operated by Télémédia, as well as national and international newscasts, certain other programs including "Festival de l'humour," "Musique en tête," and "Premier jour," and that it rebroadcasts baseball and hockey games.

The applicant is reminded that any such rebroadcasts, if involving network affiliation, must have the prior approval of the Commission. The applicant is therefore required to submit to the Commission within 60 days of the date of this decision, such network affiliation applications as are necessary or copies of any agreements it has for the rebroadcast of such programs.

Fernand Bélisle
Secretary General