ARCHIVED -  Decision CRTC 97-170

Decision

Ottawa, 25 April 1997

Decision CRTC 97-170

502260 N.B. Inc.

Bathurst, New Brunswick and Truro, Nova Scotia - 199612966 - 199612974 - 199612982

Acquisition of assets

1.  Following a Public Hearing in Montréal beginning on 24 February 1997, the Commission approves the applications for authority to acquire from Radio Atlantic (CKCL) Ltd. and Radio Atlantic (CKBC) Ltd. the assets of CKTO-FM, CKCL Truro, and CKBC Bathurst and for broadcasting licences to continue the operation of these undertakings.

2.  The Commission will issue licences to 502260 N.B. Inc. expiring on 31 August 2003 for CKTO-FM and CKCL and on the current expiry date of 31 August 1998 for CKBC, upon surrender of the current licences. The licences will be subject to the same conditions as those in effect under the current licences, as well as to any other condition specified in this decision and in the licences to be issued.

3.  The Commission notes that this transaction constitutes a change in control from the Eddy family to a group composed of three individuals. The stations are currently owned by Radio Atlantic Holdings Ltd., and ultimately controlled by the Eddy family through Force Holdings Limited. The current president and part owner of Radio Atlantic (CKCL) Ltd. and Radio Atlantic (CKBC) Ltd., John Eddy, will remain part owner of the stations through Radio Atlantic (CFNB) Ltd. Accordingly, there will be substantial continuity in the management and orientation of these stations.

4.  The purchase price relating to this transaction is $1,395,000. 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.

5.  The Commission notes that the applicant did not propose any tangible benefits. Considering the special circumstances surrounding the stations, 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 these stations as viable, local radio services to Truro and Bathurst. Accordingly, the Commission is of the view that approval of these applications is in the public interest.

6.  According to the applicant, approval of these applications will result in the creation of a larger group of affiliated Maritime radio stations with significantly enhanced means and ability to meet the challenges presented by new forms of competition. The Commission notes that the applicant proposed to spend, over the next five years, $173,000 on behalf of CKBC and $358,000 on behalf of CKTO-FM and CKCL. These expenditures will include technical upgrades and equipment purchases.

7.  The licensee is required, by condition of each licence, to make payments to third parties involved in Canadian talent development at the level identified for it in the Canadian Association of Broadcasters' (CAB) "Distribution Guidelines For Canadian Talent Development", as set out in Public Notice CRTC 1995-196 or as amended from time to time and approved by the Commission, and to report the names of the third parties associated with Canadian talent development, together with the amounts paid to each, on its annual return. The payments required under this condition of licence are over and above any outstanding commitments to Canadian talent development offered as benefits in an application to acquire ownership or control of the undertaking.

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

9.  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.

10.  In view of the approval granted herein, it would appear that no further action is required on the applications 199614384 and 199614392 submitted by Radio Atlantic (CKCL) Ltd. for the renewal of the licences for CKCL and CKTO-FM.

This decision is to be appended to each licence.

Allan J. Darling
Secretary General

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