ARCHIVED - Broadcasting Decision CRTC 2002-258

Broadcasting Decision CRTC 2002-258

Ottawa, 30 August 2002

H.F. Dougall Company Limited, on behalf of North Superior Broadcasting Ltd.
Marathon, Ontario

Application 2002-0195-5
Public Hearing in the National Capital Region
12 August 2002

Transfer of control

In this decision, the Commission approves an application by H.F. Dougall Company Limited, on behalf of North Superior Broadcasting Ltd. (North Superior), to acquire the effective control of North Superior through the purchase of all of its issued and outstanding shares.

1.

The Commission received an application by H.F. Dougall Company Limited (H.F. Dougall), on behalf of North Superior Broadcasting Ltd. (North Superior), to acquire the effective control of North Superior through the purchase of all its issued and outstanding shares.

2.

Currently, North Superior owns and operates two radio stations: CFNO-FM Marathon and CJWA-FM Wawa. In a related decision released today, CJWA-FM Wawa - Acquisition of assets, Decision CRTC 2002-259, 30 August 2002, the Commission approved the acquisition of CJWA-FM by Labbe Media Incorporated.

3.

H.F. Dougall is owned and controlled by Mr. Hector Fraser Dougall, the sole trustee, through the H.F. Dougall Family Trust.

4.

Mr. Dougall indicated that the purchase price of the transaction would be $600,000. The applicant confirmed that, in accordance with the benefits requirements set out in Commercial Radio Policy 1998, Public Notice CRTC 1998-41, 30 April 1998 (the Commercial Radio Policy), it would make direct financial contributions to Canadian talent development of $36,000 over five years. This represents 6% of the value of the transaction, of which 3% would be allocated to the Canadian Music Marketing and Promotion Fund and 3% to the Foundation to Assist Canadian Talent on Record (FACTOR).

Interventions

5.

Cindy Long of Thunder Bay, Ontario filed an intervention expressing concern regarding the potential impact of the proposed transaction on the level of media ownership concentration in her community. Mrs. Long stated that Mr. Dougall already owns and operates three radio stations, two television stations as well as a local newspaper in Thunder Bay. She submitted that acquiring the radio station in Marathon would enable Mr. Dougall to further influence editorial content throughout his media holdings and would translate into "control of the airwaves."

6.

In response, the applicant stated that Mr. Dougall's radio and television stations and weekly newspaper in Thunder Bay face strong competition from the many other media that serve the city, including 8 other radio stations, direct-to-home satellite broadcasting distribution undertakings, cable broadcasting distribution undertakings and a daily newspaper. The applicant stated that Mr. Dougall does not influence the editorial content presented in his media and that his stations strive to provide a strong local presence through broadcasting local news and programming. Further, the applicant stated that its ownership would establish a stronger radio voice in the Marathon region.

The Commission's analysis and conclusion

7.

Based on the evidence filed with the application, the Commission has no concern with respect to the availability or the adequacy of the required financing.

8.

The Commission has considered the views expressed in the intervention regarding concentration of ownership in Thunder Bay. As stated in An FM policy for the nineties, Public Notice CRTC 1990-111, 17 December 1990, the Commission defines the market of an FM station to be any area within either the 3 mv/m signal contour of the station, or the central area of the community served by the station as defined by Bureau of Broadcast Measurement (BBM), whichever is smaller. The Commission notes that Thunder Bay is located far outside CHNO-FM's 3 mv/m signal contour and even well beyond its larger 0.5 mv/m contour. The BBM's reports also indicate that Marathon is not within the Thunder Bay radio market.

9.

Moreover, the Commission is satisfied that the presence of numerous media outlets in Thunder Bay will ensure that a diversity of voices will be maintained in that market. Based on the foregoing, the Commission does not consider that the acquisition of North Superior by H.F. Dougall raises concerns with respect to concentration of ownership in Thunder Bay. Furthermore, in view of the fact that H.F. Dougall does not currently operate any radio station in Marathon, approval of this application would only result in the replacement of one player with another in that market.

10.

The Commission considers that this transaction is also consistent with the objectives of the Commercial Radio Policy and that approval of the proposal is in the public interest. Accordingly, the Commission approves the application by H.F. Dougall, on behalf of North Superior, to acquire the effective control of North Superior through the purchase of all its issued and outstanding shares.

Employment equity

11.

In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, 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.

Secretary General