ARCHIVED - Decision CRTC 98-475
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Ottawa, 5 October 1998
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Decision CRTC 98-475
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9063-0104 Québec inc., doing business under the name of Radio Gaé-Rit Lac Mégantic
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Lac Mégantic, Quebec - 199802624
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Acquisition of assets
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1. Following a Public Hearing in the National Capital Region held on 11 August 1998, the Commission approves the application for authority to acquire the assets of the radio programming undertaking CKFL Lac Mégantic from Radio Plus Lac Mégantic inc., and for a broadcasting licence to continue the operation of this undertaking.
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2. Upon surrender of the current licence, the Commission will issue a licence to 9063-0104 Québec inc., doing business under the name Radio Gaé-Rit Lac Mégantic, expiring 31 August 2003, the current licence expiry date. 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.
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3. The price of the transaction is $74,500. 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 and is satisfied with the benefits flowing from this transaction. Moreover, the Commission is of the view that approval of this application is in the public interest.
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4. In Public Notice CRTC 1998-41 dated 30 April 1998 entitled Commercial Radio Policy 1998, the Commission stated that, in respect of transfers of ownership and control of profitable radio programming undertakings, it would expect benefits representing a minimum direct financial contribution to Canadian talent development of 6% of the value of the transaction. In this regard, the licensee has made a commitment to contribute $894 each year, over the next five years, to be distributed as stipulated in the public notice:
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· 3% to be allocated to a new Canadian music marketing and promotion fund;
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· 2% to be allocated to MusicAction;
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· 1% to be allocated to either of the above initiatives, to other Canadian talent development initiatives, or to other eligible third parties directly involved in the development of Canadian musical and other artistic talent, in accordance with Public Notice CRTC 1995-196, as may be amended from time to time.
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5. The 3% contribution which is to be allocated to the Canadian Music Marketing and Promotion Fund must be directed to the Canadian Association of Broadcasters who will hold all contributions in trust pending the creation of the fund.
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6. In addition, the licensee is required, by condition of 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 concurrently with its annual return.
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7. Finally, the Commission notes that the above-noted contributions are over and above any outstanding commitments offered by the previous licensee as benefits in an application to acquire ownership or control of the undertaking.
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8. The licensee indicated that the programming will be identical to that which CKFL currently broadcasts. The Commission notes that the licensee intends to provide increased coverage of socio-economic and socio-cultural activities within the community.
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9. 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 accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.
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10. 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 accepted by the Commission.
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11. 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 licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
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12. The Commission acknowledges the intervention submitted by l'Association québécoise de l'industrie du disque, du spectacle et de la vidéo (ADISQ) and the licensee's reply thereto.
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This decision is to be appended to the licence.
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Secretary General
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This document is available in alternative format upon request.
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