ARCHIVED -  Decision CRTC 98-503

Decision

Ottawa, 24 November 1998

Decision CRTC 98-503

Cogeco Radio-Télévision inc.

Public Hearing held on 8 October 1998
National Capital Region

Acquisition of the assets of CFRS-TV and of CKRS-TV and its transmitter CKRS-TV-1

1. The Commission approves the applications for authority to acquire the assets of the television programming undertakings CFRS-TV (TQS) and CKRS-TV (SRC) Jonquière and its transmitter CKRS-TV-1 Saint-Fulgence from Radio Saguenay ltée, and for broadcasting licences to continue the operation of these undertakings.

2. The Commission will issue licences to Cogeco Radio-Télévision inc. (Cogeco), expiring 31 August 2005, the current expiry date, upon surrender of the current licences.

3. The purchase price relating to this transaction is $5,754,626. 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.

4. 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 applications filed are the best possible proposals 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 transfers will yield significant and unequivocal benefits to the community served by the broadcasting undertakings and to the Canadian broadcasting system as a whole, and that they are in the public interest.

5. 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.

6. The Commission has noted the intangible benefits proposed by Cogeco. As part of these benefits, Cogeco has proposed to maintain a regional presence on both stations, to produce regional programming and to offer, in conjunction with the CÉGEP at Jonquière, over a period of five years, five internships in the fields of television, radio and production.

7. In the area of tangible benefits, Gogeco has proposed that both stations will broadcast an additional eight minutes per week of separate local news headlines. In order to improve the news coverage throughout Saguenay/Lac St-Jean, Cogeco expects to hire a reporter-correspondent and to provide this person with a mobile facility for the production and routing of signals. Finally, Cogeco will establish a scholarship program for students in Arts and Technology at the Jonquière CÉGEP. These scholarships would total $12,500 over five years.

8. The Commission expects the licensee to honour its commitment to broadcast on CFRS-TV, on an annual basis, a minimum weekly average of 1 hour and 23 minutes of local news programming and to ensure that these newscasts are different from those of CKRS-TV Jonquière.

9. The Commission also expects the licensee to honour its commitment to broadcast on CKRS-TV, on an annual basis, a minimum weekly average of 3 hours of local news programming and to ensure that these newscasts are different from those of CFRS-TV Jonquière.

10. The public was invited to participate in the review process for this application and the Commission has considered all of the interventions submitted.

Conditions of licence

11. The licence is subject to the terms and conditions set out in the licences to be issued. Further, as conditions of licence, the licensee must:

· 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;

· 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;

· adhere to the guidelines on the depiction of violence in television programming set out in the CAB's Voluntary Code Regarding Violence in Television Programming, as amended from time to time and approved by the Commission. The application of this condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.

Other matters

12. The Commission expects the licensee to maintain its commitment to provide captioning (open or closed) or signing for its local news headlines. The Commission requires the licensee to submit a report, by no later than 31 March 1999, outlining its progress towards meeting this expectation. The Commission encourages the licensee to make yearly progress in the area of captioning.

13. The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996 (1996 EEA), and therefore files reports concerning employment equity with Human Resources Development Canada. As a result of a consequential amendment to the Broadcasting Act, the Commission no longer has the authority to apply its employment equity policy to any undertaking that is subject to the 1996 EEA.

Secretary General

This decision is to be appended to each licence.
This document is available in alternative format upon request, and may also be viewed at the following Internet site:www.crtc.gc.ca