ARCHIVED - Decision CRTC 94-928
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Decision |
|
| Ottawa, 19 December 1994 | |
| Decision CRTC 94-928 | |
| Key Radio CKYC Limited | |
| Toronto, Ontario - 940551500 | |
Transfer of control of CKYC |
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| Following a Public Hearing in the National Capital Region beginning on 20 September 1994, the Commission approves the application for authority to transfer effective control of Key Radio CKYC Limited (Key Radio), licensee of CKYC Toronto, through the transfer of 1,000 common shares (100%) from Rogers Communications Inc. (RCI) to Telemedia Communications Ontario Inc. (Telemedia). | |
| The Commission also renews the broadcasting licence for CKYC from 1 September 1995 to 31 August 1999, 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. | |
| The licence term granted herein, while less than the maximum of seven years permitted under the Broadcasting Act, will enable the Commission to consider the renewal of this licence in accordance with the Commission's regional plan. | |
| The purchase price for the shares is $5,000,000. 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. | |
| The vendor in this transaction, RCI, acquired effective control of Key Radio as part of a much larger transaction approved today in Decision CRTC 94-923. | |
| Because the Commission does not solicit applications for authority to transfer ownership or 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. | |
| Common ownership of two radio stations of the same type and same language in the same market is an issue raised in the present case, as a consequence of Telemedia's existing ownership of another Toronto AM radio station, CJCL. | |
| The Commission notes that an application by Angelo Cremisio, on behalf of a company to be incorporated, to acquire the assets of CJCL from Telemedia was on the agenda of the 20 September 1994 Public Hearing. In Decision CRTC 94-929, also published today, Mr. Cremisio's application has been denied. As a result of that denial, Telemedia remains the owner of two AM radio stations in Toronto. | |
| The Commission's longstanding policy is that two radio broadcasting undertakings of the same class serving the same market should not fall under common ownership. The Commission notes Telemedia's statement regarding its willingness to divest itself of CJCL, in the event of denial of the Cremesio application. Consistent with Telemedia's position and its policy, the Commission directs Telemedia to ensure that an application for authority to transfer effective ownership or control of CJCL to a third party is filed with the Commission within twelve months of the date of this decision, and is accompanied, if applicable, by a suitable package of clear and unequivocal benefits. | |
| The Commission notes that CKYC has been unprofitable over the three years proceeding the filing of this application. The applicant offered tangible benefits totalling $402,500 to be spent over the first seven years following approval of the application and 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 CKYC's current annual direct cost budget for such initiatives is $7,500. As a part of this application, Telemedia proposed to redirect $5,000 from an existing Canadian talent development initiative to digital radio research and development. The Commission notes that digital radio research is not considered to be a Canadian talent development initiative. Accordingly, the Commission requires Telemedia to continue to allocate a total amount of $7,500 per year toward Canadian talent development initiatives. Further, the Commission requires the licensee to submit, within three months of the date of this decision, a report outlining its revised plans for the support, development and on-air exposure of local and regional talent, including direct expenditures. | |
| 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. | |
| 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. | |
| 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. | |
| The Commission acknowledges the interventions submitted with regard to this application. | |
|
Allan J. Darling Secretary General |
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