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Broadcasting Decision CRTC 2003-107
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Ottawa, 3 April 2003
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CHAU-TV Communications ltée
Carleton, Quebec
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Application 2002-0622-8
Broadcasting Public Notice CRTC 2003-1
8 January 2003
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CHAU-TV Carleton - Amendment of commitments relating to tangible benefits
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The application
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1.
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In Transfer of ownership, Public Notice CRTC 2001-2, 5 January 2001, the Commission announced that it had approved, by Letter of Authority A00-0128 dated 21 November 2000, the transfer of ownership and control of 591992 B.C. Ltd., licensee of CHAU-TV Carleton and its 11 transmitters, to 3760464 Canada Inc., a wholly-owned subsidiary of Télé Inter-Rives ltée.
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2.
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The Commission noted the applicant's commitment to offer tangible benefits that represent 10% of the transaction's value, in accordance with the policy set out in Building on success - A policy framework for Canadian television, Public Notice CRTC 1999-97, 11 June 1999. The benefit payments of $700,000 were to be averaged over a period of seven years and be paid to independent producers working in regions outside Montréal, as well as eastern Quebec and New Brunswick. The Commission also noted the applicant's commitment to file, at the end of each year, a full report of the productions financed through the benefits flowing from the transaction.
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3.
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In Transfer of assets - Intracorporate reorganization, Decision CRTC 2001-479, 10 August 2001, the Commission approved the application by CHAU-TV Communications ltée (formerly 3760464 Canada Inc.) for authority to acquire the assets of CHAU-TV Carleton and its transmitters, and for a broadcasting licence to continue the operation of this undertaking. The Commission noted that, following this transfer, it expected CHAU-TV Communications ltée to "fulfil commitments with respect to the implementation of all tangible benefits that remain unimplemented as of the date of this decision."
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4.
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CHAU-TV Communications ltée now asks to amend, in part, the commitment made pursuant to the aforementioned transaction, as follows:
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- the applicant wishes to build microwave links between Baie-Saint-Paul and Rivière-du-Loup and between Caraquet and Carleton at a cost of $250,000; and
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- the applicant wishes to purchase a mobile unit provided with transmission equipment at a cost of $45,000.
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5.
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The total cost of expenditures planned in the context of this application is $295,000. The Commission notes that, of the initial commitment of $700,000, the applicant has already invested $107,150 in program production projects and will also devote the residual amount of $297,850 to such projects.
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6.
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In support of its application, the applicant submitted that these amendments would enable it to improve the quality of news services offered to the public. The applicant submitted that the size of the territory it covers causes a delay of 24 hours between the production of news reports and their broadcast in certain regions served by the smaller stations, as is the case at Caraquet and Baie-Saint-Paul. The applicant also pointed out that the purchase of a mobile unit would enable its reporters to respond more quickly.
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7.
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The Commission did not receive any interventions concerning this application.
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The Commission's analysis and determination
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8.
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In Application of the Benefits Test at the Time of Transfers of Ownership or Control of Broadcasting Undertakings, Public Notice CRTC 1993-68, 26 May 1993 (Public Notice 1993-68), the Commission established that, for operating and capital expenditures "to be considered as tangible benefits, applicants must demonstrate that these costs would not be incurred in the ordinary course of business and that the public will benefit from their implementation." In the appendix to that notice, the Commission added that the transmission by microwaves and the purchase of a mobile unit are acceptable as tangible benefits, provided they are incremental (that is, over and above normal capital expenditures).
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9.
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Having considered the reasons given by the applicant in support of its application, the Commission is satisfied that the proposed expenditures related to the establishment of microwave links and to the purchase of a mobile unit comply with the criteria set out in Public Notice 1993-68. In view of the size of the territory served by the applicant, the Commission is of the view that the establishment of microwave links between Baie-Saint-Paul and Rivière-du-Loup and between Caraquet and Carleton will improve the quality of the service by allowing the same-day broadcast of local and regional news in those regions. Furthermore, the purchase of a mobile unit will enable reporters in the territory served to respond more quickly. The Commission is therefore satisfied that approval of this application is in the public interest.
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10.
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Accordingly, the Commission approves the application by CHAU-TV Communications ltée to reallocate the amount of $295,000 from commitments to independent production made pursuant to the transfer of ownership of CHAU-TV Carleton to Télé Inter-Rives ltée. This amount will be distributed as follows: $250,000 for the construction of microwave links between Baie-Saint-Paul and Rivière-du-Loup and between Caraquet and Carleton; and $45,000 for the purchase of a mobile unit provided with transmission equipment.
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11.
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The Commission reiterates that the residual amount of $297,850 stemming from tangible benefits must be paid to independent producers working in regions outside Montréal, as well as eastern Quebec and New Brunswick.
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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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Date Modified: 2003-04-03