ARCHIVED -  Decision CRTC 96-396

Decision

Ottawa, 13 August 1996

Decision CRTC 96-396

Walter Hulme, on behalf of North Channel Broadcasters Inc., a company to be incorporated

Elliot Lake, Blind River and Espanola, Ontario - 199600446 - 199600453 - 199600461

Acquisition of assets

Following a Public Hearing in the National Capital Region held on 5 June 1996, the Commission approves the applications for authority to acquire the assets of CKNR Elliot Lake and its transmitter CJNR Blind River, and of CKNS Espanola from Pelmorex Radio Limited (Pelmorex).

The applications for the aquisition of assets were contingent upon approval of the application for a new FM licence to serve the above-noted communities.

The price of the transaction is $125,000. 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.

The Commission notes that, although the applicant did not propose any tangible benefits, CKNR and CKNS have been unprofitable over the three years preceding filing of these applications. Accordingly, the Commission is satisfied that the applications meet the criteria set out in Public Notice CRTC 1993-68 entitled "Application of the Benefits Test at the Time of Transfers of Ownership or Control of Broadcasting Undertakings". The Commission notes the important benefit associated with this transaction, that being the maintenance of a viable radio service to serve Elliot Lake, Blind River and Espanola. Accordingly, the Commission is of the view that approval of these applications is in the public interest.

Conversion of CKNR to FM

The Commission also approves the application for a broadcasting licence for an English-language FM radio programming undertaking at Elliot Lake, on the frequency 94.1 MHz, channel 231C, with an effective radiated power of 90,000 watts.

The Commission will issue, subject to the requirements of this decision, an FM licence to Walter Hulme, on behalf of North Channel Broadcasters Inc., a company to be incorporated, expiring 31 August 1999, upon surrender of the current licences for CKNR and CKNS. The new FM licence will be subject to the conditions specified in this decision and in the licence to be issued. The Commission notes that the coverage area of CKNS Espanola as well as that of the transmitter CJNR Blind River will be served by the new FM undertaking.

The licence term granted herein, while less than the maximum of seven years permitted under the Broadcasting Act (the Act), will enable the Commission to consider the renewal of this licence in accordance with the Commission's regional plan and to better distribute the workload within the Commission.

This authority will only be effective and the licence will only be issued at such time as the Commission receives documentation establishing that an eligible Canadian corporation has been incorporated in accordance with the application in all material respects and that it may be issued a licence.

In assessing this application, the Commission has taken into account the ongoing support and excellent relationship with Pelmorex which is reflected in the financing terms proposed, and also the availability of its network programming when the proposed FM station is not broadcasting local programming. The Commission also noted the support of local investors, business and community leaders.

The applicant plans to broadcast 25 hours weekly of local programming, including 9 hours and 30 minutes each week of news and community programming.

Upon implementation, the FM station will operate in a single-station market as defined in Public Notice CRTC 1993-121 entitled "Local programming Policy for FM Radio - Definition of a Single-Station Market". In accordance with the policy outlined in the above-noted public notice, the new FM station is excluded from the policy requirements respecting local programming and advertising for commercial FM stations operating in markets served by more than one private commercial station, as outlined in Public Notice CRTC 1993-38 dated 19 April 1993. Consequently, the FM station may solicit and accept local advertising, irrespective of the amount of local programming that it broadcasts.

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 applicant 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.

It is a condition of licence that this station not be operated within the specialty format, as defined in Public Notice CRTC 1995-60, as amended from time to time by the Commission.

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. In this regard, the Commission encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

The authority to carry on an FM radio programming undertaking at Elliot Lake will only be effective and the licence will only be issued at such time as construction of the undertaking is completed and it is prepared to commence operation. If the construction is not completed within twelve months of the date of this decision or, where the applicant applies to the Commission within this period and satisfies the Commission that it cannot complete construction and commence operation before the expiry of this period, and that an extension of time is in the public interest, within such further periods of time as are approved in writing by the Commission, the licence will not be issued. The applicant is required to advise the Commission (before the expiry of the twelve-month period or any extension thereof) in writing, once it has completed construction and is prepared to commence operation.

The Department of Industry has advised the Commission that this application is conditionally technically acceptable, and that a Broadcasting Certificate will only be issued once it has been determined that the proposed technical parameters will not create any unacceptable interference with aeronautical NAV/COM services.

In accordance with subsection 22(1) of the Act, the Commission will only issue the licence and the authority will only be granted at such time as written notification is received from the Department of Industry that its technical requirements have been met, and that a Broadcasting Certificate will be issued.

This decision is to be appended to the licence.

Allan J. Darling
Secretary General