ARCHIVED - Decision CRTC 2001-481

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Decision CRTC 2001-481

Ottawa, 10 August 2001

The Gulf Broadcasting Company Limited
Summerside, Prince Edward Island 2001-0317-7

Application processed by Public Notice CRTC 2001-54 dated 15 May 2001

Transfer of control


The Commission approves the application for authority to transfer the effective ownership and control of The Gulf Broadcasting Company Limited (Gulf Broadcasting), licensee of CJRW-FM Summerside, to Maritime Broadcasting System Limited (MBS). As proposed in this application, MBS will purchase a minimum of 512 common shares of Gulf Broadcasting, representing approximately 92.9% of the company's authorized capital.


MBS is the licensee of a number of radio stations in the Maritimes, including two of Prince Edward Island's four commercial radio stations, namely CFCY and CHLQ-FM Charlottetown. MBS also operates CHTN Charlottetown, the province's fourth commercial radio station, under the terms of a Local Management Agreement with the station's owner, NewCap Inc.


Financial consideration for the shares to be purchased by MBS is $650,000. 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.


The level of concentration of ownership in Prince Edward Island, and the possible impact this may have on the diversity of voices, were matters raised by the Commission in Public Notice CRTC 2001-54 announcing this application. In response to its notice, the Commission received three interventions, all of which were in support. Among other things, the interveners cited the applicant's responsible performance as a broadcaster and the fact that it is owned and controlled by residents of the Maritimes.


The Commission notes that, while the applicant has not offered any tangible benefits in connection with this application, such benefits are not required under the commercial radio policy announced in Public Notice CRTC 1998-41, since CJRW-FM has not earned a profit during any of the past three years. On balance, the Commission considers that approval will bring about improvement in the financial performance of CJRW-FM and ensure that the local service offered by the station is preserved. It is satisfied that these intangible benefits outweigh the above-mentioned concerns about concentration of ownership.

Secretary General
This decision is to be appended to the licence. It is available in alternative forma upon request, and may also be examined at the following Internet site:

Date Modified: 2001-08-10

Date modified: