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ARCHIVED - Decision CRTC 2000-763

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Decision CRTC 2000-763

  Ottawa, 21 December 2000
  629112 Saskatchewan Ltd.
Saskatoon, Saskatchewan - 200018988
- 200018996 
  20 November 2000 Public Hearing
in Burnaby
 

Acquisition of the assets of CJWW and CFQC-FM

1. The Commission approves the applications for authority to acquire the assets of the radio programming undertakings CJWW and CFQC-FM Saskatoon from Forvest Broadcasting Corporation, and for broadcasting licences to continue the operation of these undertakings.
2. Upon surrender of the current licences, the Commission will issue licences to 629112 Saskatchewan Ltd. expiring 31 August 2007, the current expiry date. The licences will be subject to the conditions set out in the licences to be issued, as also set out in Public Notice CRTC 1999-137.
3. The purchase price for the shares is $7,450,000. 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.
4. Elmer Hildebrand Communications Inc., the parent company of 629112 Saskatchewan Limited, currently owns two other commercial radio stations in Saskatoon, namely CJRK-FM and CKOM-FM. In Decision CRTC 2000-762 issued today, the Commission approves a transaction that will result in a transfer of control of CKOM-FM to Rawlco Inc. on behalf of 614546 Saskatchewan Ltd. As a result of that transaction and of the transaction approved in this decision, Elmer Hildebrand Communications Ltd. will own three commercial radio stations in the same market. Approval of these applications is therefore consistent with the scope of the Commission's policy on the common ownership of radio stations. According to this policy, in markets with less than eight commercial stations operating in a given language, a single licensee may own or control as many as three stations operating in that language, with a maximum of two stations on either the AM or FM band.
5. In evaluating applications that would result in common ownership, the Commission requires applicants to address the issue of diversity of voices. The applicant pointed to the presence of various radio stations and television signals as well as the local newspaper as evidence that a diversity of news voices is available in the community. The Commission is satisfied that, following the approval of these applications, Saskatoon will continue to be served by a diversity of news voices.
6. Consistent with the requirements of the benefits test outlined in Commercial Radio Policy, 1998 (Public Notice CRTC 1998-41), the applicant proposed the following benefits that represent the required minimum direct financial contribution to Canadian talent development of 6% of the transaction. The applicant indicated that the 6% ($447,000) would be allocated over seven years as follows:
 
  • 3% ($223,500) as a contribution to the Canadian Music Marketing and Promotion Fund;
 
  • 2% ($149,000) as a contribution to FACTOR; and
 
  • 1% ($74,500) to local Canadian talent development initiatives and to Canadian Women in Communications.
7. These commitments are over and above CJWW and CFQC-FM's existing commitments and conditions of licence.
8. The Commission considers that a donation to Canadian Women in Communications would not qualify as an eligible expenditure under the benefits policy set out in Public Notice 1998-41. The policy stipulates that the final one percent of a benefits package may be allocated to the new Canadian music marketing and promotion fund, FACTOR, other Canadian talent development initiatives or to other eligible third parties directly involved in the development of Canadian music and other artistic talent in accordance with Public Notice CRTC 1995-196, as may be amended from time to time. The Commission therefore expects the licensee to ensure that all money in its benefits package is spent on initiatives that qualify under the terms of the Commission's policy.
 

Other matters

9. 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 (PN 1992-59).
 

Related CRTC document

 
  • Public Notice 1998-41 - Commercial radio policy, 1998
  Secretary General
  This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined at the following Internet site: http://www.crtc.gc.ca

Date Modified: 2000-12-21

Date modified: