Strict conditions imposed on TQS acquisition

The controversial acquisition of Quebec-based broadcaster TQS Inc. by Remstar Inc. has been approved by the CRTC but with strict conditions. In April, Remstar put forward a proposal that would abolish the news department and cut down on local news in TQS jurisdictions in Montreal, Sherbrooke, Trois-Rivières, and Saguenay. Under the CRTC decision announced today, Remstar will be allowed a reduced amount of local news. In Montreal, the CRTC imposed two hours of local news, while in Sherbrooke, Trois-Rivières, and Saguenay, Remstar is obligated to air local news for 50 minutes to one hour weekly. In addition, it will offer at least 30 minutes of news programs on weekends on TQS affiliated stations. The CRTC says this reduced amount of news programming does not meet conventional standards but notes that the move was approved with consideration for TQS’ financial difficulties. “Holding a licence to operate a conventional television station comes with certain responsibilities and obligations, one of which is to provide viewers with a significant amount of local news,” CRTC chair Konrad von Finkenstein said in a statement. “In this case, we have taken into account TQS’s precarious financial situation and will allow, as a short-term measure and on an exceptional basis, a reduced amount of local news.” The CRTC expects TQS to increase the amount of local news programming in three years. In April, TQS VP Serge Bellerose said the French-language network had registered $18 million in losses for last year, with the losses averaging $1.2 million a month since January. Since the network’s launch in 1986, it has bled $225 million in revenues, said Bellerose. Last December, TQS sought protection from its creditors as its parent company Cogeco Inc. explored ways of selling it. In a statement, Bellerose said the CRTC decision puts the company in position to implement a plan agreed to by the network’s creditors and the courts. In addition, he said discussions will begin with various TQS partners to put in place a restructuring and revamping scheme that will respect the company’s commitments and obligations as laid out by the CRTC decision. The CRTC decision was criticized by the Communications, Energy and Paperworks Union of Canada (CEP), a union representing media workers. "Despite strong opposition from within Quebec, the CRTC has rammed through a decision that contradicts the past 40 years of its own regulatory policies and precedents, once again claiming that exceptional financial circumstances warrant the weakening of our broadcasting system," said Peter Murdoch, CEP’s VP.

Strict conditions imposed on TQS acquisition

News | 06/26/2008 9:39 pm EDT

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