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Decision CRTC 2001-480
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Ottawa, 10 August 2001
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Bras d’Or Broadcasting Limited
Sydney, Nova Scotia 2001-0298-9
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Application processed by Public Notice CRTC 2001-54 dated 15 May
2001
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Transfer of control
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1. |
The Commission approves the application for authority to
transfer the effective ownership and control of Bras d’Or
Broadcasting Limited (Bras d’Or), licensee of CHER Sydney, to
Maritime Broadcasting System Limited (MBS).
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2. |
MBS is the licensee of a number of radio stations in the
Maritimes, including ten in Nova Scotia. Two of these are the other
commercial radio stations serving Sydney (CJCB and CKPE-FM). MBS
also owns 40% of the issued shares of Bras d’Or. As proposed in
this application, MBS will purchase an additional 55% of the shares
of Bras d’Or, thereby bringing its holdings in that company’s
shares to 95% of the total. |
3. |
Financial consideration for the shares to be purchased by MBS is
$300,000. 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 Commission is also satisfied
that the nature and quantitative value of the benefits offered by
the purchaser are in keeping with the commercial radio policy set
out in Public Notice CRTC 1998-41. Specifically, MBS committed to
contribute a minimum of $18,000 over five years, or 6% of the value
of the transaction, to the Canadian broadcasting system. Half of the
amount will be allocated to FACTOR, while the remainder is earmarked
for the Radio Starmaker Fund to assist in the marketing of Canadian
music. |
4. |
The level of concentration of ownership in the Province of Nova
Scotia, 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 seven interventions, all of which were in
support. Among other things, the interveners cited the applicant’s
responsible performance as a broadcaster. They were confident that,
under one owner, there would be no deterioration in the service
provided by the three Sydney radio stations. The Commission notes in
this instance that approval of this application is consistent with
the common ownership policy set out in PN 1998-41. According to this
policy, in markets served by fewer than eight commercial radio
stations in a given language, a person may be permitted to own as
many as three of them, including no more than two in a single band
(AM or FM). |
5. |
In addition to the services of the three commercial radio
stations now all to be operated by MBS, Sydney receives the
programming of both Radio One and Radio Two of the CBC, as well as
that of television stations operated by the CBC, CTV and CanWest
Global. Sydney’s media also include a daily newspaper owned by
CanWest Global. The Commission is thus of the view that Sydney
residents will continue to have access to an adequate level of
diversity in news voices. Moreover, the Commission is satisfied that
approval will bring about improvement in the financial performance
of CHER and ensure that the local service offered by the station is
preserved.
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Secretary General |
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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: http://www.crtc.gc.ca
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Date Modified: 2001-08-10 |