ARCHIVED -  Decision CRTC 94-344

Decision

Ottawa, 29 June 1994

Decision CRTC 94-344

CKER Radio Ltd.

Grande Prairie, Alberta - 932137300

Aquisition of assets

Following a Public Hearing in the National Capital Region beginning on 25 April 1994, the Commission approves the application for authority to acquire the assets of CFGP Grande Prairie from Rogers Broadcasting Limited (Rogers), and for a broadcasting licence to continue the operation of this programming undertaking.

The Commission will issue a licence to CKER Radio Ltd., expiring 31 August 1996, the current expiry date, upon surrender of the current licence. The licence will be subject to the same conditions as those in effect under the current licence, as well as to any other condition specified in this decision and in the licence to be issued.

The purchase price relating to this transaction is $1,300,000. 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.

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.

The Commission has assessed the various projects and initiatives put forward by CKER Radio Ltd. as being the benefits associated with 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.

The Commission notes the total benefit claimed in respect of this application amounts to $48,750 which includes $5,000 to be spent on receiving equipment and a total of $3,750 over 5 years on daily conference calls to discuss current news items. The Commission considers these two proposals to fall within the categories of proposed benefits that have been generally rejected as such for reasons outlined in Public Notice CRTC 1993-68 dated 26 May 1993.

The Commission also expects that the applicant will promote Northern Alberta Regional talent with on-air promotion valued at $45,000 over a five-year period. The applicant will also put into place a creativity training program for employees through seminars and workshops.

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 application.

The Commission reaffirms the particular importance it attaches to the development of Canadian talent and notes that CKER Radio Ltd. will maintain the initiatives currently committed to by Rogers. This commitment represents an annual direct cost expenditure of $4,500 with indirect costs of $18,400. It encourages the applicant, during the licence term, to continue its efforts towards the support, development and on-air exposure of local and regional talent.

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 applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

It is a condition of 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.

It is also a condition of 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.

Allan J. Darling
Secretary General