ARCHIVED - Decision CRTC 2001-479

Decision CRTC 2001-479

Ottawa, 10 August 2001

CHAU-TV Communications ltée
Carleton, Sainte-Marguerite-Marie, Port-Daniel, Chandler, Percé, Gaspé, Rivière-au-Renard, Cloridorme and L'Anse-à-Valleau, Quebec; and Saint-Quentin, Kedgwick and Tracadie, New Brunswick 2001-0420-9

Transfer of assets - Intracorporate reorganization

The Commission approves the application by CHAU-TV Communications ltée (formerly 3760464 Canada Inc.) for authority to acquire the assets of the television programming undertaking CHAU-TV Carleton and its transmitters,^* and for a broadcasting licence to continue the operation of this undertaking.

CHAU-TV is currently licensed to 591992 B.C. Ltd., which is a wholly-owned subsidiary of the applicant CHAU-TV Communications ltée. The transaction thus constitutes an intracorporate reorganization having no impact on the ultimate ownership or management of the undertaking.

The Commission will issue a licence to the applicant upon surrender of the current licence. The new licence will expire 31 August 2005 (the current expiry date), and will be subject to the conditions contained in this decision and in the licence to be issued. These are the same as those set out in Appendix 6 to Decision CRTC 2000-87 dated 24 March 2000, in which the Commission approved an application to transfer the assets of CHAU-TV to 591992 B.C. Ltd., a company that was controlled at that time by Corus Entertainment Inc.

In Public Notice CRTC 2001-2 dated 5 January 2001, the Commission announced that it had, by majority vote and by Letter of Authority A00-0128, approved the transfer of control of 591992 B.C. Ltd. to its current parent company, now known as CHAU-TV Communications ltée. In that public notice, the Commission noted the applicant's commitment to implement tangible benefits representing 10% of the transaction's value, in accordance with the policy set out in Public Notice CRTC 1999-97. The Commission added:

The benefit payments of $700,000 will be averaged over a period of seven years and will be paid to independent producers working in regions outside of Montréal specifically, Eastern Quebec and New Brunswick. The Commission also notes the applicant's comitment to file, at the end of each year, a full report of the productions financed through the benefits flowing from the transaction.

The Commission expects CHAU-TV Communications ltée to fulfil commitments with respect to the implementation of all tangible benefits that remain unimplemented as of the date of this decision.

In its application, CHAU-TV Communications ltée requested that the Commission make its authorization of the current transaction retroactive to 1 March 2001, one day following the formal completion of the transaction involving the transfer of ownership and control of 591992 B.C. Ltd. to CHAU-TV Communications ltée (then named 3760464 Canada Inc.).

Retroactive approval of applications would be inappropriate, and would be contrary to the regulatory requirement, applicable to all licensed broadcasting undertakings, that the Commission's prior approval be obtained in respect of any action that would result in a change, by whatever means, of the effective control of an undertaking.

The licensee shall 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. 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 (CBSC).

The licensee shall 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 the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the CBSC.

The licensee shall 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.

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).

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: www.crtc.gc.ca