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ARCHIVED -  Decision CRTC 2001-703

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Decision CRTC 2001-703

Ottawa, 19 November 2001

Corus Radio Company
Cornwall, Ontario 2001-0759-1

Application processed by
Public Notice CRTC 2001-104
dated 28 September 2001

Transfer of control

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:

· 3% ($121,230) to be allocated to the Radio Starmaker Fund and the Fonds Radiostar;
· 2% ($80,820) as a contribution to FACTOR; and
· 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:

· ensure that the stations continue to offer diverse programming choices to local area residents in an increasingly competitive environment;
· 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;
· provide the stations with access to capital to upgrade transmission and studio equipment and fund their conversion to digital;
· 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
· 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.

Secretary General

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: www.crtc.gc.ca

 

Date Modified: 2001-11-19