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Ottawa, 23 January 1993
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Decision CRTC 93-23
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Monarch Broadcasting Ltd.
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Lethbridge and Taber, Alberta - 920868700 - 920869500
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Following a Public Hearing in the National Capital Region held on 30 November 1992, the Commission approves the applications by Monarch Broadcasting Ltd. (Monarch) for authority to acquire the assets of CHEC Lethbridge and CFEZ Taber from Shaw Radio Ltd. (Shaw), and for broadcasting licences to continue the operation of these undertakings, under the same terms and conditions as the current licences.
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The Commission will issue licences to Monarch, expiring 31 August 1996, upon surrender of the current licences. The licences will be subject to the same conditions as those specified in 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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Monarch, the purchaser, is an Alberta-based broadcasting company which controls two television and seven radio stations in western Canada. It is a wholly-owned subsidiary of Monarch Communications Inc., which is a holding company owned and controlled by W.H. Yuill.
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Shaw Cablesystems Ltd., the parent company of Shaw, the vendor, is an Edmonton-based company with extensive cable holdings across Canada, including a cable undertaking serving part of Edmonton. It currently controls five radio stations in Alberta, including CISN-FM Edmonton, CHEC Lethbridge and CFEZ Taber, as well as two radio stations in Ontario.
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In a related decision released today (Decision CRTC 93-22), the Commission approved an application to transfer the effective control of CHQT Broadcasting Ltd. from Monarch to Shaw Cablesystems Ltd. Monarch advised the Commission that the applications approved herein and the application to transfer the control of CHQT were interdependent.
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The purchase price relating to the Monarch transaction is $1,000,000. 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.
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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 applications filed are the best possible proposals 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 benefits package identified by the applicant as flowing from this transaction and, in general, is satisfied that it is significant and unequivocal, and that approval of the transaction is in the public interest.
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Monarch proposed a benefits package on behalf of CHEC totalling $40,000 over four years to be directed to "Project Discovery", an annual talent search to promote musical talent in Alberta. In addition, Monarch will spend $8,290 in each year of the licence term to continue Shaw's commitments to Canadian talent development made at the time of CHEC's last licence renewal approved in Decision CRTC 91-669 dated 28 August 1991.
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In the case of CFEZ, Monarch proposed a benefits package totalling $7,500 over three years, which will also be directed to "Project Discovery". Monarch will also maintain Shaw's $5,500 annual commitment towards the development of Canadian talent.
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According to Monarch, the intangible benefits to result from this transaction include its expertise as a manager of small- and medium-market radio stations.
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It is a condition of each 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 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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The Commission acknowledges the numerous interventions submitted in support of these applications.
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Allan J. Darling
Secretary General
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