ARCHIVED -  Decision CRTC 97-272

Decision

Ottawa, 25 June 1997

Decision CRTC 97-272

Raedio Inc.

Stratford, Ontario -199616976

Acquisition of assets

1. Following a Public Hearing in Toronto beginning on 14 April 1997, the Commission approves the application for authority to acquire the assets of the radio programming undertaking CJCS Stratford from Telemedia Communications Inc., and for a broadcasting licence to continue the operation of this undertaking.

2. The Commission will issue a licence to Raedio Inc., expiring 31 August 2003, 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.

3. Raedio Inc. is controlled by a holding company (80.1%), which in turn is controlled by Steven Rae, who is currently the General Manager of CJCS. The remaining 19.9% of Raedio Inc. is owned by Telemedia Communications Inc. The applicant has stated its intention to continue all current CJCS programming commitments.

4. The purchase price relating to this transaction is $500,000. 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.

5. 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.

6. The Commission has assessed the benefits package identified by the applicant as flowing from this transaction and, in general, is satisfied that it is significant and unequivocal, and that approval of the transaction is in the public interest.

7. According to the applicant, the intangible benefits to result from this application include the addition of news gathering personel to cover regional communities, a new "Week in Review" news program, increased free air-time to community service groups and a new weekly family program featuring local input. In addition, the Commission recognizes the station's new local ownership as a significant benefit representing the addition of a new player to the broadcasting industry.

8. The proposed tangible benefits of this application total $11,200, made up of annual contributions of $1,600 over seven years to Canadian talent development.

9. The licensee is required, by condition of licence, to make payments to third parties involved in Canadian talent development at the level identified for CJCS 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 of the transaction herein approved.

10. It is a condition of licence that the licensee adhere to the guidelines on gender portrayal set out in the CAB's Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.

11. 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.

12. 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.

This decision is to be appended to the licence.

Laura M. Talbot-Allan
Secretary General

This document is available in alternative format upon request.

DEC97-272_0