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Broadcasting Decision CRTC 2003-574
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Ottawa, 17 November 2003
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St. Joseph Corporation, on behalf of a corporation to be incorporated to be known as Salt and Light Catholic Media Foundation
Across Canada
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Application 2003-0655-7
Public Hearing in the National Capital Region
29 September 2003
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Inner Peace Television Network - Acquisition of assets
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The Commission approves the application by St. Joseph Corporation, on behalf of a corporation to be incorporated to be known as Salt and Light Catholic Media Foundation, to acquire the assets of the ethnic Category 2 specialty service Inner Peace Television Network.
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The application
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1.
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The Commission received an application by St. Joseph Corporation, on behalf of Salt and Light Catholic Media Foundation (OBCI) (the Foundation), for authority to acquire the assets of the ethnic Category 2 specialty service Inner Peace Television Network (Inner Peace) from Inner Peace Television Network Inc. (Inner Peace Television). The Foundation also requested a broadcasting licence to continue the operation of the undertaking.
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2.
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Currently, the control of Inner Peace Television resides with St. Joseph Printing Limited (SJPL). SJPL is wholly owned by St. Joseph Corporation, which, in turn, is controlled by the Gagliano family.
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3.
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As proposed in this application, the Foundation would be a not-for-profit charitable organization effectively controlled by a board of directors. The board would be composed of five members, two of which would be from the Gagliano family.
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4.
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The Commission did not receive any interventions in connection with this application.
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The Commission's analysis and determination
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Integrity of the licensing process
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5.
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The Commission notes that this transaction will occur within a relatively short period of time since the approval of an application to operate the service. In Inner Peace Television Network, Decision CRTC 2001-687, 9 November 2001, the Commission approved an application by Paolo Canciani, on behalf of a corporation to be incorporated, for a broadcasting licence to operate an ethnic Category 2 specialty service. The service Inner Peace was launched in July 2002.
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6.
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When parties are granted licences to operate broadcasting undertakings and sell the undertakings after a short period of time, the Commission examines such acquisitions carefully to ensure that they do not compromise the integrity of the licensing process. Licences to operate such undertakings are obtained following a public, and often competitive, process.
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7.
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The Commission notes that Inner Peace is not profitable nor is it expected to be in the foreseeable future. It also notes the applicant's statements that the service may be more successful if it is operated as part of a charitable organization (the Foundation). Such an organization would have the ability to derive operational support from the clergy of the Catholic Church and the Catholic laity, ensuring that Inner Peace would have the operational and financial resources necessary to continue to meet its programming obligations.
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8.
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Accordingly, the Commission finds that the proposed transaction does not compromise the integrity of the licensing process.
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Benefits
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9.
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Building on success - A policy framework for Canadian television, Public Notice CRTC 1999-97, 11 June 1999, states that the Commission will generally expect applicants to make commitments to clear and unequivocal tangible benefits representing a financial contribution of 10% of the value of the transaction, as accepted by the Commission. Given that the assets of Inner Peace will be transferred to the Foundation at no cost, the applicant has not proposed any tangible benefits.
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10.
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In the circumstances, the Commission finds that the value of the transaction (zero) ascribed by the prospective purchaser is satisfactory and acceptable. Consequently, no benefits are required.
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11.
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Furthermore, the Commission considers that the continuation of this service under the proposed ownership represents a significant benefit and would be in the public interest.
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Conclusion
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In light of the above, the Commission approves the application by St. Joseph Corporation, on behalf of Salt and Light Catholic Media Foundation (OBCI), for authority to acquire the assets of the ethnic Category 2 specialty service Inner Peace Television Network, and for a broadcasting licence to continue the operation of the undertaking.
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Issuance of the licence
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13.
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The licence for Inner Peace will expire on 31 August 2008, the current expiry date, and will be subject to the same terms and conditions as those in effect under the existing licence. The Commission will issue the licence once:
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- the current licence has been surrendered to the Commission; and
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- the applicant has satisfied the Commission, with supporting documentation, that an eligible Canadian corporation has been incorporated in accordance with the application in all material respects.
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Secretary General
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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
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Date Modified: 2003-11-17