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Decision CRTC 2001-703
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Ottawa, 19 November 2001
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Corus Radio Company
Cornwall, Ontario 2001-0759-1
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Application processed by
Public Notice CRTC 2001-104
dated 28 September 2001 |
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Transfer of control
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1. |
The Commission approves the application for authority to
acquire control and ownership of 519957 Ontario Ltd. by transferring
all of the issued and outstanding shares held by the Emard family to
Corus Radio Company. |
2. |
519957 Ontario Ltd. owns all of the issued and outstanding shares
of Tri-Co Broadcasting Limited, licensee of three radio stations in
Cornwall. The purchaser, Corus Radio Company, is a wholly owned
subsidiary of Corus Entertainment Inc. |
3. |
The purchase price for the shares is $4,041,000. 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. |
4. |
This transaction involves the transfer of ownership of three
radio stations in Cornwall: CJUL, CFLG-FM and CJSS-FM. This
application falls within the scope of the Commission’s policy on
the common ownership of radio stations. According to this policy, in
markets with less than eight commercial stations operating in a
given language, a single licensee may own or control as many as
three stations operating in that language, with a maximum of two
stations on either the AM or FM band. |
5. |
In evaluating applications that would result in common ownership,
the Commission requires applicants to address the issue of diversity
of voices. Corus described the variety of news and information media
available to Cornwall residents, including two local dailies and
two community newspapers as well as newspapers and other
publications from Ottawa and Montréal. There is also another local
radio station owned by Radio Communautaire Cornwall-Alexandria inc.
and a television news service. In addition, Cornwall receives
approximately 25 out-of-market radio signals originating from
Ottawa, Montréal and the U.S. Accordingly, the Commission is
satisfied that, following approval of this application, Cornwall
will continue to be served by a diversity of news voices. |
6. |
Consistent with the requirements of the benefits test outlined in
Commercial Radio Policy, 1998 (Public Notice CRTC 1998-41),
the benefits offered represent the required minimum direct financial
contribution to Canadian talent development of 6% of the total
amount of the transaction. This represents a total amount of
$242,500 spread over seven years, including: |
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· 3% ($121,230) to be allocated to the
Radio Starmaker Fund and the Fonds Radiostar; |
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· 2% ($80,820) as a contribution to
FACTOR; and |
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· 1% ($40,450) to Canadian talent
development initiatives in the local area. The licensee will direct
these contributions to the Weave Shed Arts and Entertainment Centre
and the Aultsville Hall. |
7. |
The Commission also notes Corus Radio’s other commitments to: |
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· ensure that the stations continue to
offer diverse programming choices to local area residents in an
increasingly competitive environment; |
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· provide the stations with access to
research and audience sampling data to ensure the programming
responds to the needs and desires of local area residents; |
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· provide the stations with access to
capital to upgrade transmission and studio equipment and fund their
conversion to digital; |
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· allow the stations to become part of
the new Local Media Internet Venture (LMIV) project and provide
enhanced localized web sites to area residents; and |
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· ensure that the stations continue to
be involved in the Cornwall community. |
8. |
All of these commitments are over and above the stations’
existing commitments and conditions of licence. |
9. |
The Commission expects Corus Radio to adhere to all of its
commitments to tangible and intangible benefits. |
10. |
The Commission notes that this licensee is subject to the Employment
Equity Act and therefore files reports concerning employment
equity with Human Resources Development Canada. |
11. |
The Commission acknowledges the interventions submitted in
support of this application. |
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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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