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Broadcasting Decision CRTC 2005-603
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Ottawa, 23 December 2005 |
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Radio Nord Communications inc.
Donnacona and Sainte-Croix-de-Lotbinière, Quebec |
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Application 2005-1232-8
Public Hearing in the National Capital Region
19 December 2005 |
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Acquisition of assets – CKNU-FM Donnacona and CKNU-FM-1
Sainte-Croix-de-Lotbinière
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The Commission approves the
application by Radio Nord Communications inc. to acquire the assets of
radio station CKNU-FM Donnacona and its transmitter CKNU-FM-1
Sainte-Croix-de-Lotbinière, Quebec. |
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The application
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1. |
The Commission received an application by
Radio Nord Communications inc. (Radio Nord) for authority to acquire the
assets of the radio programming undertaking CKNU-FM Donnacona and its
transmitter CKNU-FM-1 Sainte-Croix-de-Lotbinière, Quebec, from
6087329 Canada Inc., a corporation operated and controlled by Mr.
Patrice Demers. |
2. |
Radio Nord also requested a broadcasting
licence to continue the operation of this undertaking under the same
terms and conditions as those in effect under the current licence, with
the exception of the condition noted below, upon surrender of the
licence issued to 6087329 Canada Inc. |
3. |
Given that CKNU-FM has been unprofitable
for many years, the applicant did not propose any tangible benefits in
the application. |
4. |
Radio Nord proposed to replace CKNU-FM’s
current condition of licence relating to local programming, which reads: |
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- broadcast a minimum of 42 hours of local programming per week
consisting of news and public affairs as well as community service
programming;
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Instead, Radio Nord proposed that CKNU-FM
be subject to the following standard condition of licence, as stipulated
in the appendix to New licence form for commercial radio stations,
Public Notice CRTC 1999-137,
24 August 1999: |
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Subject to paragraph 6, it is a condition of licence for commercial
FM stations serving markets other than single-station markets
(Public Notice CRTC 1993-121),
that the licensee refrain from soliciting or accepting local advertising
for broadcast during any broadcast week when less than one-third
of the programming aired is local. The definition of local programming
shall be as set out in Public Notice CRTC 1993-38,
as amended from time to time.1
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5. |
Radio Nord is a corporation with share
capital, and is ultimately controlled by Mr. Jean-Yves Gourd. Radio Nord
is the licensee of five television stations, one television network and
seven radio stations serving Abitibi-Témiscamingue, the Outaouais and
eastern Ontario. Further, Radio Nord is involved in the Saguenay-Lac-Saint-Jean
region as the controlling shareholder of Group Antenne 6 Inc., the
licensee of five radio stations. Radio Nord also has a new radio station
in Montréal. |
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Interventions
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6. |
The Commission received an intervention in
support of this application as well as interventions in opposition by
two individuals. The opposing interveners expressed concern that the
transaction would result in a loss of CKNU-FM’s unique nature,
particularly with respect to local programming and musical content. |
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Commission’s analysis and determination
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7. |
In making its decision, the Commission has
considered the transaction’s potential impact on the Donnacona market.
Given that Radio Nord does not operate any broadcasting undertakings in
this market, the acquisition of CKNU-FM and its transmitter would allow
the applicant to expand into a new market. |
8. |
In assessing CKNU-FM’s financial situation,
the Commission notes that the undertaking recorded a negative average
profit before interest and tax margin for the three years preceding
the date of the application. Consequently, and in accordance with
Commercial Radio Policy 1998, Public Notice CRTC 1998-41,
30 April 1998, relating to unprofitable undertakings, the Commission
does not require any tangible benefit. |
9. |
The Commission does not have any specific
concerns arising from this application regarding ownership or the
financial impact on the Donnacona market. Radio Nord is a large
broadcaster with experience operating local radio and television
stations. |
10. |
In its evaluation of this application, the
Commission has also taken into consideration the applicant’s commitment
to abide by CKNU-FM’s business plan and to maintain the station’s local
orientation. The Commission considers that this commitment addresses the
major concerns raised by the interveners. |
11. |
In light of the above, the Commission is
satisfied that this transaction is in the public interest. The
Commission approves the application by Radio Nord Communications
inc. for authority to acquire the assets of the radio programming
undertaking CKNU-FM Donnacona and its transmitter CKNU-FM-1
Sainte-Croix-de-Lotbinière. |
12. |
The Commission will issue a broadcasting
licence to Radio Nord, upon surrender to the Commission of the licence
issued to 6087329 Canada Inc. |
13. |
The new licence for CKNU-FM will expire 30
April 2006, the current expiry date. The licence will be subject to the
same terms and conditions as those in effect under the current
licence, with the exception of the new condition set out in
paragraph 4 above. |
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Employment equity
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14. |
Because this licensee is subject to the
Employment Equity Act and files reports concerning employment equity
with the Department of Human Resources and Skills Development,
its employment equity practices are not examined by the Commission. |
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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 in PDF format or in
HTML at the following Internet site: http://www.crtc.gc.ca
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Footnote:
[1] See Local programming
policy for FM radio – Definition of a single-station market,
Public Notice CRTC 1993-121,
17 August 1993, and Policies for local programming on commercial
radio stations and advertising on campus stations, Public Notice
CRTC 1993-38, 19 April
1993. |