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ARCHIVED -  Broadcasting Decision CRTC 2004-557

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Broadcasting Decision CRTC 2004-557

  Ottawa, 22 December 2004
  Newcap Inc.
Lloydminster, Alcot Trail, Bonnyville, Meadow Lake, Provost and Wainwright, Alberta
  Application 2004-0518-5
Public Hearing in the National Capital Region
1 November 2004
 

CILR-FM, CKSA-FM, CITL-TV, and CKSA-TV Lloydminster - Acquisition of assets

1.

The Commission approves the application byNewcap Inc.(Newcap) for the authority to acquire the assets of the radio programming undertakings CILR-FM and CKSA-FM Lloydminster and CKSA-FM's transmitter, from Sask-Alta Broadcasters Limited (Sask-Alta), and to acquire the assets of the television programming undertakings CITL-TV and CKSA-TV Lloydminster, with their respective transmitters, from Mid West Television Ltd. (Mid West),an associate corporation of Sask-Alta. The applicant also requested broadcasting licences to operate the undertakings under the same terms and conditions as those in effect under the existing licences.

2.

The Commission notes that approval of this transaction will result in effective control of the undertakings changing to that of Newcap. Newcap is a wholly owned subsidiary of Newfoundland Capital Corporation Limited, a corporation under the ultimate control of Harold R. Steele.

3.

The value of the transaction is $12,550,000 of which $6,246,000 is allocated to the assets of the radio programming undertakings and $6,304,000 to the assets of the television programming undertakings. Newcap proposed as tangible benefits of this transaction, initiatives totalling $1,005,160, which represents 6% of the radio assets ($374,760) and 10% of the television assets ($630,400).

4.

Specific benefits of this transaction related to the radio programming undertakings include $31,230 per year to be contributed to the Radio Starmaker Fund, $20,820 each year to be contributed to the Foundation to Assist Canadian Talent on Record and $10,410 annually to be expended on musical instruments for school music programs.

5.

Specific initiatives related to the benefits of this transaction for the television sector include additional 30 minute newscasts on both Saturdays and Sundays, to be broadcast on CITL-TV. This commitment is incremental to the 30 minutes of local reflection programming currently on CITL-TV and to the 8 hour 20 minute shared commitment to local reflection, for both CITL-TV and CKSA-TV. The costs of the additional news programming will be $46,000 per year for added staff, and $60,000 in capital expenditures for production and editing equipment related to the addition of a newsgathering unit.

6.

The benefits related to the television acquisition also include $294,400 for the conversion of production equipment from analog to digital computerized video. This expenditure is beyond the financial capability of the current owner, and is expected to be completed 12-15 months after the closing of this transaction.

7.

The Commission did not receive any interventions in connection with this application.

8.

The Commission will issue licences to Newcap Inc., once the current licences issued to Sask-Alta Broadcasters Limited and Mid West Television Ltd. have been surrendered to the Commission.

9.

The new licences will expire on the same expiry dates as those set out in the current licences and will be subject to the same terms and conditions as those in effect under the current licences.

10.

Because this licensee is subject to the Employment Equity Act and files reports concerning employment equity with theDepartment of Human Resources and Skills Development, its employment equity practices are not examined by the Commission.
  Secretary General
  This decision is to be appended to each 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: 2004-12-22