| |
Broadcasting Decision CRTC 2006-263
|
| |
Ottawa, 27 June
2006 |
| |
Jim Pattison Broadcast Group
Ltd. (the general partner) and
Jim Pattison Industries Ltd. (the limited partner), carrying on business
as Jim Pattison Broadcast Group Limited Partnership
Nanaimo, Parksville, Courtenay and Port Alberni, British Columbia |
| |
Application 2005-1284-9
Public Hearing at Québec, Quebec
20 March 2006 |
| |
CHWF-FM and CKWV-FM Nanaimo, CIBH-FM and CHPQ-FM Parksville, CKLR-FM
Courtenay and CJAV-FM Port Alberni – Acquisition of assets
|
| |
The Commission approves
the application by Jim Pattison Broadcast Group Ltd. (the general
partner) and Jim Pattison Industries Ltd. (the limited partner),
carrying on business as Jim Pattison Broadcast Group Limited
Partnership, to acquire the assets of CHWF-FM and CKWV-FM Nanaimo, CIBH-FM
and CHPQ-FM Parksville, CKLR-FM Courtenay and CJAV-FM Port Alberni, from
Island Radio Ltd. |
| |
The application
|
|
1. |
The Commission received an
application by Jim Pattison Broadcast Group Ltd. (the general partner)
and Jim Pattison Industries Ltd. (the limited partner), carrying on
business as Jim Pattison Broadcast Group Limited Partnership, (the
Pattison Group) for authority to acquire the assets of the
English-language, commercial radio programming undertakings CHWF-FM and
CKWV-FM Nanaimo, CIBH-FM and CHPQ-FM Parksville, CKLR-FM Courtenay and
CJAV-FM Port Alberni, from Island Radio Ltd. The applicant also
requested broadcasting licences to continue to operate the undertakings
under the same terms and conditions as those in effect under the current
licences. |
|
2. |
The vendor, Island Radio Ltd.
is controlled by West Coast Broadcasting Ltd. and 88988 Investments Ltd.
The purchaser, the Pattison Group is ultimately controlled by Mr. James
A. Pattison, the sole director of Jim Pattison Ltd. |
|
3. |
The applicant stated that the
value of the proposed transaction would be $12.5 million. It proposed a
tangible benefits package totalling $750,000, which represents 6% of the
value of the transaction. The benefits funding would be allocated as
follows: $375,000 to be directed to the Radio Starmaker Fund, $250,000
to be directed to the Foundation to Assist Canadian Talent on Records
(FACTOR), and $125,000 to support the Jim Pattison Broadcast Group’s
"Save the Music Foundation", a non-profit foundation devoted to funding
Canadian talent development (CTD) projects in British Columbia and
Alberta. The applicant stated that the "Save the Music Foundation"
funding related to this benefits package would be used to support CTD
projects in the central region of Vancouver Island. The applicant
indicated that the benefits would be distributed over seven years.
In addition to the proposed tangible benefits, the applicant made
a commitment to upgrade the facilities of CIBH-FM and CHPQ-FM Parksville,
at an approximate cost of $100,000, to be expended over the licence
term. |
| |
Interventions
|
|
4. |
The Commission received
comments in connection with this application by Mr. D. W. (Wax) Williams
and Mr. Charles Benson. |
|
5. |
In the interveners’ view, the
current licensee of CIBH-FM and CHPQ-FM Parksville does not provide
adequate local reflection of the community the two radio stations are
licensed to serve. The interveners submitted that the applicant should
be required to provide more local programming on these radio stations,
as well as to establish studios in the Parksville/Qualicum Beach
community. |
| |
Applicant’s reply
|
|
6. |
In response, the Pattison Group
noted that the current licensee of CIBH-FM and CHPQ-FM operates local
studios in Parksville and cited some of the community events that have
been sponsored by these radio stations over the past year, including
numerous festivals, parades, fairs and fund raising activities.
The applicant also stated that CIBH-FM and CHPQ-FM each broadcast live
morning shows hosted by local residents as well as local newscasts and
weather reports. It added that all voice tracks broadcast by these radio
stations are locally produced and reflect the Parksville and Qualicum Beach
(Oceanside) markets. The Pattison Group maintained that its commitment
to improve these radio stations’ broadcast facilities shows that it is
committed to enhancing their exposure in the market. |
| |
Commission’s analysis and determination
|
|
7. |
The Commission has considered
the arguments presented by the applicant and the interveners. The
Commission is satisfied that the applicant’s response and its commitment
to local reflection adequately address the concerns raised by the
interveners. |
|
8. |
In light of the above, the
Commission approves the application by Jim Pattison Broadcast
Group Ltd. (the general partner) and Jim Pattison Industries Ltd.
(the limited partner), carrying on business as Jim Pattison Broadcast
Group Limited Partnership, to acquire the assets of the
English-language, commercial radio programming undertakings CHWF-FM and
CKWV-FM Nanaimo, CIBH-FM and CHPQ-FM Parksville, CKLR-FM Courtenay and
CJAV-FM Port Alberni, from Island Radio Ltd., and for broadcasting
licences to continue the operation of these undertakings. |
|
9. |
With respect to implementation
of the benefits offered as part of this transaction, the Commission
notes the applicant’s commitment to distribute the benefits over a seven
year period. The Commission has determined that the seven year period
will commence on 1 September 2006, and that the expenditures will be
made in accordance with the applicant’s proposed allocations, as set out
in an appendix to this decision. |
| |
Issuance of the licences
|
|
10. |
The Commission will only issue
the licences to Jim Pattison Broadcast Group Ltd. (the general partner)
and Jim Pattison Industries Ltd. (the limited partner), carrying on
business as Jim Pattison Broadcast Group Limited Partnership,
once the current licences issued to Island Radio Ltd. have been
surrendered to the Commission. |
|
11. |
The new licences for the
undertakings listed below will expire on the current expiry date for
each undertaking, and will be subject to the same terms and
conditions as those in effect under the current licences. |
| |
CHWF-FM Nanaimo
|
31 August 2007 |
| |
CIBH-FM Parksville
|
31 August 2008 |
| |
CKLR-FM Courtenay
|
31 August 2011 |
| |
CJAV-FM Port Alberni
|
31 August 2011 |
|
12. |
The new licences for CKWV-FM
Nanaimo and CHPQ- FM Parksville will expire on 31 August 2012, and will
be subject to the same terms and conditions as those in effect
under the current licences. |
| |
Employment equity
|
|
13. |
In accordance with Implementation
of an employment equity policy, Public Notice CRTC 1992-59,
1 September 1992, the Commission encourages the applicant to consider
employment equity issues in its hiring practices and in all other
aspects of its management of human resources. |
| |
Secretary General |
| |
This decision is to be appended
to each 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 |
| |
Appendix to Broadcasting Decision CRTC 2006-263
|
| |
The total of $750,000 in required benefits
shall be distributed by the stations over seven consecutive years
beginning 1 September 2006, at the individual levels indicated below. |
| |
Station
|
Location
|
Percentage of total benefit
|
Total seven-year contribution
|
| |
CKWV-FM |
Nanaimo |
28% |
$210,000
|
| |
CHWF-FM |
Nanaimo |
19% |
$142,500
|
| |
CIBH-FM |
Parksville |
9% |
$ 67,500
|
| |
CHPQ-FM |
Parksville |
3% |
$ 22,500
|
| |
CKLR-FM |
Courtenay |
30% |
$225,000
|
| |
CJAV-FM |
Port Alberni |
11% |
$ 82,500
|
Date Modified: 2006-06-27 |
