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Decision
CRTC 96-95
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Ottawa, 29 March 1996
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9022-6242 Québec inc.
Baie-Comeau and Forestville, Quebec - 952357200 - 952358000
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Acquisition of assets
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Following a Public Hearing in Vancouver beginning on 27 February 1996, the Commission approves the applications for authority to acquire the assets of CHLC-FM Baie-Comeau and its transmitter CFRP Forestville from Cogeco Radio-Télévision inc., and for a broadcasting licence to continue the operation of this undertaking.
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The Commission will issue a licence to 9022-6242 Québec inc., expiring 31 August 2002, 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 the licence to be issued.
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The Commission notes that, although the applicant did not propose any tangible benefits, CHLC-FM has been unprofitable over the three years preceding filing of this application. Accordingly, the Commission is satisfied that the application meets 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 CHLC-FM and its transmitter CFRP as a viable, local radio service to Baie-Comeau and Forestville. Accordingly, the Commission is of the view that approval of these applications is in the public interest.
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The Commission reaffirms the particular importance it attaches to the development of Canadian talent. As part of its applications, the applicant indicated that it was unable to make a commitment in direct expenditures to Canadian talent development because of the station's financial difficulties. The Commission will expect the applicant to make direct cost contributions to the development of Canadian talent once the station achieves a positive operating income, the profit before interest and tax (PBIT) index being the primary profitability indicator.
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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.
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This decision is to be appended to the licence.
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Allan J. Darling
Secretary General
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