ARCHIVED - Broadcasting Decision CRTC 2011-111

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Route reference: 2010-935

Ottawa, 21 February 2011

Haliburton Broadcasting Group Inc.
Sturgeon Falls, Ontario

Application 2010-1502-4, received 20 September 2010

Public hearing in the National Capital Region

11 February 2011

CFSF-FM Sturgeon Falls – Acquisition of assets

1.      The Commission approves the application by Haliburton Broadcasting Group Inc. (Haliburton) for authority to acquire, from JOCO Communications Inc., the assets of the English-language commercial radio programming undertaking CFSF-FM Sturgeon Falls and for a new broadcasting licence to continue the operation of the undertaking under the same terms and conditions as those in effect under the current licence, and as set out in the appendix to this decision. The Commission did not receive any interventions in connection with this application.

2.      Haliburton is controlled by Mr. Christopher Grossman through his ownership and control of Beaumaris Group Inc., Haliburton’s controlling shareholder.

3.      Because the Commission does not solicit competing applications for authority to transfer the ownership or control of radio, television and other programming undertakings, the onus is on the applicant to demonstrate that the benefits proposed in the application are commensurate with the size and nature of the transaction (refer to Public Notice 1998-41 and Broadcasting Public Notice 2006-158).

4.      The value of the transaction based on the Assets Purchase Agreement is $500,000. Based on its general practice, the Commission has reviewed the value of the transaction to determine if adjustments to the purchase price are required. Following its review, the Commission is satisfied that this amount fairly represents the value of the transaction.

5.      Consistent with the Commission’s tangible benefits policy set out in Broadcasting Public Notice 2006-158, Haliburton proposed a tangible benefits package equal to 6% of the proposed $500,000 value of the transaction (i.e. $30,000).

6.      Additionally, in Broadcasting Regulatory Policy 2010-499, the Commission amended its approach to the allocation of tangible benefits. Accordingly, tangible benefits must be distributed as follows:

• 3% to the Radio Starmaker Fund or Fonds Radiostar;

• 1.5% to FACTOR or MUSICACTION;

• 1% to a Canadian Content Development (CCD) initiative, at the discretion of the purchaser; and

• 0.5% to the Community Radio Fund of Canada.

7.      Accordingly, the Commission directs Haliburton to allocate its benefits contribution as follows over seven consecutive broadcast years:

• $15,000 to the Radio Starmaker Fund;

• $7,500 to FACTOR;

• $5,000 to a CCD initiative, at the discretion of the purchaser; and

• $2,500 to the Community Radio Fund of Canada.

Secretary General

Related documents

• Campus and community radio policy, Broadcasting Regulatory Policy CRTC 2010-499, 22 July 2010

• Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006

• Commercial Radio Policy 1998, Public Notice CRTC 1998-41, 30 April 1998

*This decision is to be appended to the licence.

Appendix to Broadcasting Decision 2011-111

Terms, conditions of licence and encouragement for CFSF-FM Sturgeon Falls

Terms

The licence will expire 31 August 2013.

Conditions of licence

1.      The licence will be subject to the conditions set out in Conditions of licence for commercial AM and FM radio stations, Broadcasting Regulatory Policy CRTC  2009-62, 11 February 2009, with the exception of condition of licence 8 relating to the solicitation of local advertising, which does not apply to stations operating in a single-station market.

Encouragement

Employment equity

In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Date modified:

2011-02-21