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Local. Business. Intelligence. August 16–22, 2011 • Issue 1138

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Native bands aim for Asian opportunities 6

The fight to get forest products to market

The market and Mr. Jones: volatility rattles mining juniors 6

Lumber companies are grappling with road, rail and port challenges as the industry ramps up production to satisfy growing Asian demand for B.C. wood  4-5

How to leverage company tax breaks for retirement funds 8 Storm clouds spare property owners from interest hikes 10 Market turmoil adding new bumps along B.C. biotech’s road to profitability 12 Surrey businesses pushing for light-rail connections 13 NHL star’s off-ice wildlife  18 The province’s changing franchise landscape: upgrades, acquisitions, new arrivals 21, 23 Off to court 24-25 Native bands need to build better business expertise 28

Canfor CEO Don Kayne using his sales expertise to develop new markets for B.C. lumber 31 Biggest food franchises in B.C. 20 Biggest non-food franchises in B.C. 22

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Pattison buys into booze business >Province’s largest company acquires Everything Wine and Libations in its first foray into alcohol sales By Glen Korstrom

J

im Pattison has broken a longtime aversion to investing in alcohol-related businesses by buying the three-location Everything Wine chain and two Libations liquor stores from Vancouver businessman Paul Clinton. The Jim Pattison Group owner’s interest in Everything Wine came after Clinton approached Pattison representatives about leasing space next to Save-On-Foods grocery stores in Alberta. “Alberta is where the company needs to grow,” Clinton told Business in Vancouver August 9. “But you need access to good locations. The [private liquor sales] market is much more penetrated by the private sector than it is in B.C.” Alcohol sales are increasing faster in Alberta than in B.C. Canada’s largest private liquor retailer, Liquor Stores N.A. Ltd. (TSX:LIQ), reported August 8 that in the first six months of 2011 its Alberta same-store sales rose 4.4% compared with 1.3% in B.C. Clinton approached Pattison because his Save-On-Foods grocery chain is one of the rare Alberta grocers that doesn’t own private liquor stores. “Loblaws has their own liquor stores. Safeway has their own liquor stores. [Central Alberta] Co-op has their own liquor stores,” Clinton said. “Save-On-Foods didn’t own liquor stores, so their grocery centres or shopping centres were potentially an interesting place to locate Everything Wine stores.” Clinton is pursuing new business opportunities, but longtime general manager Trent Anderson will stay at Everything Wine. Clinton launched Everything Wine when he bought three small wine stores – and their rare wine-only licences – from the Mark Anthony Group in April 2007. He then promoted a new warehouse concept for wine sales by opening the largest wine stores in the province, including a 12,000-square-foot location in North Vancouver. He then marketed his products with full-page newspaper advertising that highlighted promotions such as a 5% discount on a 12-bottle case that includes any mix of wines.

Another sweet deal done Cakewalk: Lori Joyce (left) and Heather White, founders of Cupcakes, are now featured in Cupcake Girls. The TV series is produced by Vancouver’s Force Four Entertainment, which could benefit from a new trade agreement between B.C. producers and broadcasters. See Entertainment, 3

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Daily business news at www.biv.com  August 16–22, 2011

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Jamie Garrett plays guitar in a band, rides a skateboard and runs an up-and-coming digital media company called Idea Rebel, which developed a Facebook campaign for EA Sports that boasts more than 13 million fans.

Full Disclosure Last year the Surrey School Board had to pay nearly $500,000 to the Pacific Carbon Trust when it failed to achieve carbon neutrality. The money went to companies like Encana and Interfor, but critics question whether the carbon offset program will actually reduce greenhouse gases. Business in Vancouver takes a closer look at the business of carbon offsets in the province and its impact on public and private organizations. Biggest shopping centres and biggest commercial and residential real estate brokerages in B.C.

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•In “Cultural master plan” (Hospitality & Tourism – issue 1137; August 9-15) incoming Tourism Vancouver chairman Howard Jang was incorrectly referred to as Brian Jeng.


News

August 16–22, 2011  Business in Vancouver

Entertainment producers hail rights deal as “huge victory”

Briefs

Government review blasts Hydro spending, recommends job cuts, reduced rate increase

B.C.-based film and television producers see trade agreement as a way to regain leverage in negotiations with broadcasters, retain key international rights and build up new revenue streams

Rob Bromley, owner and partner of Force Four Entertainment: “[terms of trade deal] sets us up for a long time to come” By Jenny Wagler

V

ancouver’s beleaguered independent film and television producers are optimistic that their fortunes could soon change for the better as a new framework for deals with Canadian broadcasters goes into full effect this month. The framework, kick-started by the Canadian Radio-television and Telecommunications Commission (CRTC), gives producers a standard set of rights to their productions when negotiating with broadcasters. Producers previously had to secure whatever rights they could each time they negotiated with broadcasters. “I think it’s huge,” said Rob Bromley, owner and partner at Vancouver-based production company Force Four Entertainment. “It sets us up for a long time to come.” The Canada Media Production Association (CMPA), representing independent producers,

hammered out the terms of trade agreement this spring with private broadcasters Astral Media Inc. (TSX: ACM.A, ACM.B), Corus Entertainment Inc. (TSX: CJR.B), BCE Inc. (TSX: BCE) subsidiary Bell Media, CTV, Rogers Communications Inc. (TSX: RCI.B) and Shaw Communications Inc.’s (TSX: SJR.B) television division, Shaw Media. The deal has been phased in since June 1 and took full effect August 1. The CMPA is now in talks with the Canadian Broadcasting Corp. for a similar deal. Its deadline is set for June 2012. In Vancouver on a recent tour to explain the agreement to independent producers across Canada, CMPA president and CEO Norm Bolen told Business in Vancouver that the CMPA has been lobbying for a terms of trade deal for nearly a decade. A similar deal in the United Kingdom helped revitalize the production sector in that country.

“It enables us to take a little more control of our own projects, especially in terms of ancillary and international rights” – Alexandra Raffe, head of production, Thunderbird Films

“But we got nowhere because the broadcasters just ragged the puck.” In the last decade, Bolen said vertical integration of broadcasters has reduced market options

for producers, which has left them with less negotiating leverage and worse deals. He added that the situation has degenerated dramatically for producers since he headed up programming for the former Alliance Atlantis Communications Inc. and launched the History Television channel in 1997. “[Producers] would give me the show for three years, they would give me a limited number of plays and I would get it for one channel only: History Television.” Bolen noted that after the licence term expired, the producer could sell it to another broadcaster for an additional few years and then other broadcasters after that. Vertical integration, he said, eliminated the multiple-window marketplace and the revenue that represented. “Now, the broadcaster says, ‘I want your program, but I actually want a seven- or eight- or 10- or 12-year licence for the same fee; I want unlimited plays and I want the right to play that on all of my channels – 30, if I want to, until I’m tired of that program – and then I also want the right to sublicense it to a competing company until they exhaust it.’” Bolen said broadcasters have also increasingly been taking international rights and requiring producers to direct their tax credits into financing productions. That left producers with nothing to capitalize their businesses. They key change came about a year ago, when the CRTC directed broadcasters to negotiate a terms of trade deal with the CMPA or face having one imposed on them. With negotiations w rapped up, Bolen sa id key gains for producers include:

3

•limited licence terms to allow a multiple-window market to redevelop; •25% of tax credits stay with producers to fund their businesses; and •international rights stay exclusively with producers to allow them to develop further revenue streams abroad. Bromley and Alexandra Raffe, head of production at Thunderbird Films Inc., said the agreement will help create more sustainable businesses for local producers. “It enables us to take a little more control of the destiny of our own projects, especially in terms of ancillary and international rights,” Raffe wrote in an email. “It means we will not have to dig into our margins to subsidize production quite so often.” Bromley added that the agreement will provide planning clarity and predictability for producers – particularly around issues such as rights, which he said can provide a significant revenue source through international sales. Bromley noted t hat Force Four’s successful TV show Cupcake Girls has sold into more than 90 countries, providing “significant money” for the company to capitalize its business. “The main thing terms of trade does is it allows us to build a business,” Bromley said. Hughes Mousseau, director of corporate communications for Astral Media, said the new deal would “bring heightened clarity and rigour to future negotiations and partnerships. … [It] will further strengthen the Canadian production sector and ensure that opportunities are fully realized to everyone’s benefit.” •

A provincial government panel has suggested that BC Hydro cut more than 1,000 jobs to trim its costs and lessen the burden on taxpayers. L as t week , a review panel appointed by Energy Minister Rich Coleman delivered a host of recommendations to help the province’s largest utility limit rate increases. Hydro agreed to cut $800 million in spending in an effort to limit rate increases in the next few years. The panel was formed after Hydro announced plans to increase rates 32% over the next three years. Hydro has agreed to limit the rate increase to 15.8% over the next three years. “While there’s a strong focus on being the best and reliability and service, there has not always been a strong focus on cost efficiency,” Cher yl Wenezenki-Yolland, a panel member and acting deputy minister of advanced education, said of the utility. During a press conference, she described BC Hydro as a very “siloed” organization with “a lot of duplication between departments.” The panel suggested the utility cut its job numbers to 4,800 from 5,868. BC Hydro CEO Dave Cobb committed to slashing only 350 jobs. “The number the panel has put forward I think is something that we will look at,” he said. “It is not necessary to get there to deliver this rate increase.” The panel also recommended that the utility reduce its overtime payments to employees, postpone office renovation work at its headquarters and revisit its capital project planning and spending initiatives, among other things. “Hydro will go further than the recommendations to cut costs and manage their finances,” Coleman said. “This is the first step.” jmckay@biv.com

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News

Daily business news at www.biv.com  August 16–22, 2011

full disclosure

Foresters face freight headaches head-on Lumber companies are grappling with road, rail and port challenges as the industry ramps up to satisfy growing Asian demand for B.C. lumber By Joel McKay

T

West Fraser CFO Larry Hughes: the company’s sea-borne shipping challenges have disappeared since it chartered a ship

of time before ships and containers would be hard to come by. That’s a big deal in an industry where transportation is the second largest cost of doing business. In the first six months of 2011, West Fraser and Canfor spent $465 million on freight and other distribution costs. That includes everything from trucks and railcars to ships and containers. “These particular participants were looking for a way to assure themselves of delivery of their product to market … this is a strategic move,” explained Robert Fischer, CEO of Loadline Forest Carriers, the company

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Port Metro Vancouver

he massive Cielo di San Francisco will steam into a Chinese port in the coming days laden with as much as 18 million board feet of B.C. lumber. The ship, which departed a North Vancouver port earlier this summer, is evidence of an unprecedented level of co-operation among B.C.’s largest forestry companies. The mission? To not only get Asian customers hooked on the quality of B.C.’s trees, but also to make sure the products made from those trees get to market on time and within budget. T h at ’s w hy We st Fr a s er Timber (TSX:WFT), Canfor (TSX:CFP) and Tolko Industries have joined forces to charter a ship for a year to carry their products to market. Larry Hughes, West Fraser’s vice-president, finance, and CFO, said despite the efficiency of B.C. ports, the rapid increase in lumber shipments to Asia, notably China, started to put a strain on container availability last year. “There had been at times late last year … some challenges with lumber shipments,” said Hughes. Their products were still getting to market, but the forest companies could see that if the volume of exports continued to increase it would only be a matter

Lumber shipments through Port Metro Vancouver increased 48% in the first half of the year thanks to Asian demand

created to charter the Cielo di San Francisco. The pinch at the port came on the heels of record levels of lumber exports to China, totalling $687 million in 2010. Exports to the Asian juggernaut continue to soar, eclipsing the value of lumber sent to the U.S. in May for the first time on record. (See “B.C. lumber firms court more clients in Asia” – issue 1137; August 9-15.) That’s good news for foresters across the province. Yet the market shift, following years of downsizing and mill closures, has also revealed major gaps in the industry’s logistical capacity. MaryAnne Arcand, executive director of the Central Interior Logging Association, said Interior producers are battling a “continuous shortage of truck drivers.” The shortage is a result of the

“We can ship lumber from our Quesnel mill to Shanghai for roughly the equivalent cost of shipping it to San Antonio, Texas” Larry Hughes, vice-president, finance, and CFO, West Fraser Timber

recent downturn in the industry, which saw many drivers leave forestry for jobs in Alberta’s oil and gas sector. “We’re seeing cost increases as a result,” said West Fraser’s Hughes. On top of that, sawmills remain at the mercy of two rail companies, which some in the industry have called a “monopoly.” “I’m hearing from the sawmills that moving lumber by rail is also a challenge, not enough railcars available,” said Arcand. She added that Highway 16 has become a bottleneck for forest products moving west toward Prince Rupert. Despite the challenges, forest product shipments from B.C. ports have shot through the roof. The volume of containers exported via the Prince Rupert Port Authority jumped 82% year-over-year. “That’s mostly attributed to


News

August 16–22, 2011  Business in Vancouver

5

full disclosure

2of 9 %China’ B.C ss

. lumber hare ex Year-to- ports date: M ay 20

2me.8 million tres cub

11

of lumb ic er

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That is very high on our radar screen” – Pat Bell, B.C.’s minister of jobs, tourism and innovation

supply becomes constrained. The Cielo di San Francisco, for example, is a breakbulk ship. Even though some forestry companies have had trouble locating containers in the past, both Prince Rupert and Port Metro Vancouver say they have plenty of capacity. B.C.’s jobs minister Pat Bell, on the other hand, believes the province’s ability to handle the increase in forest-product movements is nearing capacity. “We are potentially coming to a constraining place,” said Bell. “That is very high on our radar screen.” In addition to chartering a ship, West Fraser is refining logistical efficiences elsewhere in the province. Earlier this year, the forestry giant signed a service-level agreement with CN (TSX:CNR), Squamish Terminals, Tembec

Chartered Accountants and Business Advisors

months

of 2011

l  umber ef B.C. xp Year-todate: Ma orts y 2011

Lumber numbers

“We are potentially coming to a constraining place.

forest products,” said Shaun Stevenson, vice-president of marketing and business development at the port. Prince Rupert, which converted its breakbulk terminal into a container terminal just a few years ago, said it’s re-thinking its breakbulk options. “We think there’s likely the need to explore the development of breakbulk capacities in Prince Rupert,” said Stevenson. The Port Alberni Port Authority said it also has seen shipments of lumber and logs steadily increase in the last year. Lumber shipments via Port Metro Vancouver jumped 48% to 2.3 million tonnes in the first six months of 2011 compared with the same period last year. Foreign breakbulk exports posted a 12% increase in the first six months, signalling a shift away from container shipments as

first fiv e

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$3.6 billion $687 million Up 48% Up 1,891% Up 82%

The value of B.C. lumber exports in 2010

The value of 2010 B.C. lumber exports to China

Lumber exports through Port Metro Vancouver in the first six months of 2011 Breakbulk lumber exports to China through Port Metro Vancouver in the first six months of 2011 Container export volumes through Prince Rupert Port Authority year-over-year to July

(TSX:TMB), Canfor Pulp and Da ishowa Ma r ubeni International to improve supply-chain efficiency for the export of wood pulp from Howe Sound. Kim Stegeman, manager of marketing and administration at Squamish Terminals, said the agreement means workers are unloading railcars seven days a week instead of five. “Increasing the day’s service was a big change,” Stegeman said. M e a n t i m e , Va n c o u v e r ’s International Forest Products

(TSX:IFP.A) bought full control of Seaboard Shipping Co. earlier this year in an effort to have more control over its shipping options. But aside from all the effort being put into shipping products to China, no one will say how much it actually costs to get their products to the Asian market. Citing competitive reasons, Loadline’s Fischer wouldn’t divulge the cost to ship lumber via the Cielo di San Francisco. But he did say it allows for “transparent costing” for member mills.

• Professionalism • Quality • Integrity

“They will know exactly what it’s going to cost … whereas if you go through a third party you don’t know that, you’re just getting a number with a profit margin built in,” Fischer said. Brad Johansen, president and CEO of Welco Lumber, a lumber marketing and distribution company in Vancouver, said at times this year there has been a “significant spread” in the cost between offshore and domestic shipments. West Fraser wouldn’t divulge its freight costs either, but Hughes said it’s competitive with the U.S. “We can ship lumber from our Quesnel mill to Shanghai for roughly the equivalent cost of shipping it to San Antonio, Texas,” said Hughes. And as long as B.C. lumber producers can keep ships filled with their products, he doesn’t believe shipping costs will be a problem. “As long as t here is a demand t here, our v iew is t he transportation costs will not be prohibitive.” The Cielo di San Francisco is due back in Vancouver on September 10. • jmckay@biv.com

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News

Daily business news at www.biv.com  August 16–22, 2011

Credit concerns take bite out of Howe Street Junior companies watched their market value disintegrate last week as investors fled high-risk stocks By Joel McKay

.S. credit woes and European debt concerns took Howe Street investors on a wild ride last week as junior companies shed market value at rates reminiscent of the 2008 financial crisis. The TSX Venture Exchange, the life force behind Vancouver’s pool of 800 junior mining companies, jettisoned 7% of its value after markets opened last Monday following news that the U.S.A.’s credit rating had been downgraded to AA+. The Venture had lost 18% of its value by market close August 8 compared with a recent high of 2,059 on July 22. That’s compared with a 14% drop in the value of the big board TSX Composite Index over the same period. The market volatility wiped out billions of dollars of investor value for large producing companies and junior explorers alike, but one investor believes the juniors will

Dominic Schaefer

U

Platinum Group Metals co-founder Michael Jones: “it’s one of those great lessons of take tea when it’s poured, and don’t try and take it when it’s not or you’ll pay for it”

have a more difficult time clawing back to positive territory than their revenue-positive cousins. “Anyone who has to raise money is facing a significant challenge in the near term, and that encompasses a lot of, if not all, the juniors that aren’t in production yet,” said

Licences: BCLDB discounts

Jim Pattison: teetotalling business-empire builder from Pattison, 1

The wine-only licences are key to Everything Wine’s business strategy, because they give the company deeper wholesale wine discounts than most private liquor stores get from the British Columbia Liquor Distribution Branch (BCLDB), which is the province’s monopoly liquor supplier. The BCLDB gives private retailers various discounts off its suggested retail price. Twelve wine-only stores were granted licences in the mid-1980s, and their owners get discounts totalling more than 30% off the BCLDB’s suggested retail price. Most of B.C.’s private liquor stores, including Libations, get a 16% discount off BCLDB prices, but, unlike the 12 wine-only stores, are allowed to sell beer and spirits. Pattison notes on his

website that the “Jim Pattison Group does not invest in, or desire to own, businesses associated with gambling/gaming or liquor/ wine/spirits.” That dictum likely stems from his Pentecostal upbringing and personal preference as a teetotaller. Pattison was unavailable at press time to tell Business in Vancouver why, at 82, he’s finally dipping his toe in the booze business. Wine retailers contacted by BIV said Pattison’s involvement in their industry is unlikely to affect them much. But John Clerides, who owns both a wine-only licence and Marquis Wine Cellars on Davie Street thinks it could prompt the B.C. government to loosen regulations to allow private B.C. beer, wine and spirit stores to sell more groceries. Currently, those stores can sell: •soda pop, but not milk; •beef jerky, but not bricks of cheese; and •bags of chips, but not bread. “Jim Pattison I don’t think will put up with the small-mindedness of the current and historical policies of the BCLDB,” Clerides said. “There are going to be some changes down the road.” • gkorstrom@biv.com

Stefan Ioannou, a mining analyst with Haywood Securities. The challenge for juniors is that they rely on issuing shares to investors to raise money to fund their operations, which makes them inherently more risky than companies that have a steady source of income from mines already in production. Michael Jones, a prevalent face in Vancouver’s junior mining scene and co-founder of Platinum Group Metals (TSX:PTM) and MAG Silver (TSX:MAG), believes the volatility will be short-lived. But he also said it could force early-stage companies to offer bigger discounts on private placements needed to continue funding their operations. “Companies that are forced to try and raise money in this immediate market are going to have a very difficult time,” said Jones, whose Platinum Group Metals had, fortunately, closed a $260 million loan agreement with several banks on August 2.

Michael McPhie, president and CEO of copper explorer Curis Resources (TSX-V:CUV), said there’s a tremendous “disconnect” between the actual supply-demand fundamentals of the metals market and the volatility in the public markets.

“Anyone who has to raise money is facing a significant challenge in the near term” – Stefan Ioannou, analyst, Haywood Securities

“Obviously investors are getting a bit spooked by what’s going on, but the underlying fundamentals supporting copper are tremendous, and we expect those underlying prices to continue,” said McPhie. He also believes the drop in stock prices has created a buying

opportunity for investors who missed out on bargain-basement deals in the aftermath of the financial collapse. Ioannou agreed the sell-off has more to do with market paranoia than any change in commodity fundamentals. Still, he believes junior companies are going to have to work extra hard to get their stories noticed in the marketplace in the near term. “Unless you have hit the ball out of the park with exploration results, you’re not going to get a lot of attention for average-type news,” said Ioannou. “So in the very near term the advice would be making sure you conserve your cash.” For Jones the lesson is simple: junior companies should’ve raised money when they had the chance. Said Jones: “The moral of the story is take tea when it’s poured not when you have to have it.” • jmckay@biv.com

Aboriginals ante up with Asian business strategy First Nations want to work directly with Chinese investors to develop resources By Joel McKay

BC

’s First Nations are keen to tap into Chinese investment, creating a new level of competition for Vancouver’s resource companies. Last week, the BC First Nations Leadership Council announced a China strategy aimed at generating stronger ties between the province’s indigenous peoples and China’s business community. The strategy was announced following a trade mission to China, which came in response to a “growing commercial interest” in British Columbia’s natural resources sector. “First Nations in British Columbia are experiencing unprecedented inquiries from Chinese companies to develop projects on their territories,” said Union of BC Indian Chiefs Grand Chief Stewart Phillip. The strategy means First Nations would take a more proactive approach to business dealings with Chinese investors. In the past, Asian investors have formed

partnerships with Vancouver resource firms that then establish relationships with First Nations communities near their projects. That method has resulted in conflict between the business community and aboriginals, often resulting in

“We’re on the verge of signing a deal as a result of the Chinese investors’ influence on their Canadian partners” – Dave Porter, CEO, First Nations Energy & Mining Council

failed agreements and soured relations. The new strategy calls for annual business missions between First Nations communities and China, and the establishment of a “China desk” to help aboriginals develop business opportunities. W hen asked if First

Nations believe they can get a better deal working directly with Chinese investors than local resource companies, Grand Chief Edward John said, if nothing else, the strategy ensures aboriginals are included in the conversation. “In the past we’ve either been sidelined or ignored, and in this case we’re saying we need to have jobs, we need to have an economy, we need to ensure we benefit from the resources that are extracted in our territory,” said John, political executive of the First Nations Summit. “We shouldn’t be sitting on the sidelines and our people lining up in the welfare lines … anything that gets beyond that is better than what we have now.” Dave Porter, CEO of the First Nations Energy and Mining Council, said working directly with Chinese investors in the past has turned negative business relationships positive. “We’re on the verge now of signing a deal as a result of the Chinese investors’ influence on their Canadian partners,” said Porter. The strateg y was

announced at a press conference hosted by the Asia Pacific Foundation of Canada. “The strategy represents a significant step forward in developing a broader appreciation for the rise of Asia and its impact on Canada and First Nations communities,” commented Yuen Pau Woo, president and CEO of the foundation. Still, the strategy has a long way to go before it could be considered a success. For example, Phillip said First Nations need to build more capacity in their communities so they can properly assess potential business deals with Asian investors. Stockwell Day, former federal minister of international trade and the Asia-Pacific Gateway, wouldn’t comment on whether First Nations have been left out of previous conversations between the government, industry and Asian investors. But he did say the strategy is a positive step forward for B.C.’s aboriginal community. (See Public Offerings, page 28.) • jmckay@biv.com


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8

Finance

Daily business news at www.biv.com  August 16–22, 2011

BY THE NUMBERS

Losses are shown in brackets. Graph information by Stockwatch.

Westport Innovations Inc. (TSX:WPT) Figures in U.S. dollars Gas pains: The natural gas engine-maker saw its net loss in the first quarter increase 123%. Westport’s gross margin edged down to 33.9% of total revenue compared with 34.5% for the same period in 2010. Still, the company signed agreements with General Motors and Caterpillar to research Earnings per share and evaluate natural gas technologies. Westport finished the 3 months 2011 period with $162m in cash and short-term investments.

▲76% ($18.1m) ($0.38) Revenue: $45m 3 months 2011

Net income 3 months 2011

$30 $25 $20 $15 $10

A

O

D

F

A

J

A

O

D

F

A

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A

O

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OncoGeneX Pharmaceuticals Inc. (NASDAQ:OGXI) Figures in U.S. dollars Trials and tribulations: The cancer therapy developer saw its revenue increase slightly in the second quarter thanks to increased efforts associated with custirsen phase 3 clinical trials. Meantime, revenue for the six months ended June 30 was down to $3.1m compared with $6.4m in 2010. Earnings per share OncoGeneX’s net loss also increased to $6.5m compared 6 months 2011 with a net income of $0.2m in the same period in 2010.

$20

Wet-wired: The telecom giant saw a 6.4% increase in revenue in the second quarter thanks to nearly 10% growth in wireless revenue and 3% growth in wireline revenue. The company added 94,000 new wireless subscribers in the second quarter and 46,000 new TV customers. Net income Earnings per share was up 7.3% in the second quarter to $324m. Telus finished 6 months 2011 the second quarter with $21m in cash and short investments.

$60

▲12% ($6.5m) ($0.67) Revenue: $1.9m 6 months 2011

Net income 6 months 2011

$18 $16 $14 $12 $10

Telus Corp. (TSX:T)

▲6.4% $324m $0.99 Revenue: $2.55b 6 months 2011

Net income 6 months 2011

41% 70% 24%

of Canadians with social networking profiles “like/follow” at least one brand/ company. of Canadians aged 50+ who have not yet retired expect a “successful retirement.” of online Canadians seek info or advice from financial institution websites on a weekly basis. of online Canadians communicate with people more online than offline. of Canadians who own or plan to buy one agree smartphone technology will be a major economic driver. of online Canadians who are likely to buy a tablet in next 12 months. Want more hot numbers? Visit the Ipsos News Centre at www.ipsos-na.com/ news-polls.

daily online edition

BUSINESS TODAY Weatherhaven to provide camps in Amazon Burnaby-based Weatherhaven, which makes portable shelters, has signed a deal to provide Brazilian oil and gas company HRT Participaceos em Petroleo SA with exploration camps in the Amazon. The shelters will be used for HRT’s oil and gas exploration and production program. Thursday, August 11

Market panic hurts high-end liquor sales High-end liquor and expensive wine sales have dropped, along with North American stock markets, according to

$35 $30

David Sung

A selection of the latest business stats collected by Ipsos Reid and Business in Vancouver.

90% 10%

$45 $40

Business wealth watch

Hot numbers

48%

$55 $50

Liberty Wine Merchants general manager Robert Simpson. If a strong rally does not continue, he said it could be months until he sells another bottle of French champagne. Wednesday, August 10

British Columbia ahead of curve in debt reduction B.C. is ahead of all other Canadian provinces for achieving personal debt freedom, according to a CIBC poll. The poll found 37% of British Columbians report being debt-free, versus 28% of Canadians. Monday, August 8

Full stories and other local business news at www.biv.com/businesstoday Daily business news direct to your inbox! Sign up at www.biv.com/newsletters

Owners of business failing to leverage company tax advantages to help them save for retirement

M

a ny ent repreneurs don’t re a l i z e t hat they have far more f lexibility to keep more of their hard-earned money in their pockets. Business owners and incorporated professionals, including lawyers, accountants and consultants, may find their greatest tax advantage lies in paying themselves through dividends, not salary, and investing the money that would normally go into an RRSP into their corporation, where it can be reinvested. T he problem is t hat many incorporated individuals don’t know about this dividend approach and therefore aren’t employing it. And it could be costing them tens of thousands of dollars every year. For example, business owners in B.C. making less than $500,000 per year who pay themselves a salary, pay Canada Pension Plan (CPP) premiums and invest in RRSPs are paying more in taxes than necessary and losing retirement savings money than if they were to consider a more entrepreneurial approach to compensation and savings that only an incorporated business owner can enjoy. Let me explain. Using the conventional “take a salary” approach, the owner of an incorporated business takes a salary from the

business (high enough to provide maximum RRSP contribution room, which is typically $122,000), likely splits income with his or her spouse (paying them a justifiable salary) and both pay personal income tax. Using a dividend strategy, the owner pays himself and his spouse dividends, rather than salary, taking enough to fund their personal living requirements but leaving the excess – some of which would have gone into RRSPs – in a corporate investment account, where it is invested. The corporation is taxed at the small-business rate, and the business owner and spouse income split to pay a lower rate of income tax on the dividends. The combined total tax using this strategy is lower than the personal income tax paid in the first scenario. Other benefits to using the dividend approach: •it allows greater flexibility to split income between spouses, since Revenue Canada might question some salary divisions between spouses. On the other hand, income splitting using a dividend compensation approach is more conservative, as one doesn’t need to justify the amount of dividends paid to a shareholder; •the business owner avoids paying CPP premiums, especially since entrepreneurs

have to make both employee and employer contributions. Small-business owners might find they’re better served by investing that money in their corporation, rather than giving it to the government to manage or control when they’re able to receive it;

Business owners might find their greatest tax advantage lies in paying themselves through dividends, not salary, and investing the money that would normally go into an RRSP into their corporation •whereas RRSP contributions must be transferred to an RRIF and withdrawals begin at a set age, investing corporately offers more control over when business owners get – and pay taxes on – their savings; and •saving outside of RRSPs offers flexibility with your choice of investments. For example, you can’t invest in hard-asset real estate properties through your RRSP. As with most tax strategies, however, there are some caveats.

The dividend approach is not a cookie-cutter taxpla nning solut ion. If a company’s pre-tax income exceeds $500,000, it might be better to employ a combination of dividends and salary strategies because corporations that exceed $500,000 in taxable income pay a higher rate – 26.5% versus 13.5% (based on B.C. rates) – and should consider paying themselves salary up to the level where RRSP contribution can be maximized, roughly $122,000. Another important consideration would be creating the right corporate structure and, perhaps, including a family trust to facilitate income splitting and allow creditor protection of assets. The dividend approach strategy to compensation is unique to business owners and incorporated professionals. It’s an approach that many entrepreneurs can benefit from and should examine with their financial adviser and tax specialist. When coupled with good planning and smart investing, it can significantly accelerate wealth building and help business owners achieve retirement much sooner than they think. • David Sung is the president of Nicola Wealth Management, a Vancouver-based financial planning firm.


finance

August 16–22, 2011  Business in Vancouver

9

jobs drop in Goods sector

Insider Trading

All five major subsectors down in July

▼3.3% ▼10.4% ▼7.2% ▼3.6% The following is a list of trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed by the week ending August 4. The information comes from a compilation of required reports filed with the BC Securities Commission within five calendar days of a change in an insider’s holdings.

Insider: Daniel MacInnis, president and CEO Company: MAG Silver Corp. (TSX:MAG) Shares owned: 261,300 Trade date: July 21, 25, 28, 29, August 2, 3 Trade total: $464,074 (net) Trade: Sale of 67,300 shares over five days at prices ranging from $9.52 and $10.95 per share after acquiring 90,000 shares at $2.46 per share through the exercise of options. Insider: John Nugent, executive chairman Company: Euromax Resources Ltd. (TSX-V:EOX) Shares owned: 690,000

Trade date: July 28, 29, August 2, 3 Trade total: $148,337 Trade: Purchase of 440,000 shares over four days at prices ranging from $0.32 to $0.37 per share. Insider: Peter Lloyd, vicepresident and general manager, Peak Gold Mines Company: New Gold Inc. (TSX:NGD) Shares owned: 107,667 Trade date: August 3 Trade total: $107,150 Trade: Acquisition of 13,667 shares for $7.84 per share through the exercise of options. Insider: John Greenslade, president and CEO Company: Baja Mining Corp. (TSX:BAJ) Shares owned: 480,000 Trade date: July 20 Trade total: $96,073 (net) Trade: Sale of 200,000 shares at prices ranging from $1.17 to $1.20 per share following the acquisition of 350,000 shares for $0.40 per share through the exercise of options.

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Insider: Lindsay Swann, director Company: Ascot Resources Ltd. (TSX-V:AOT) Shares owned: 0 Trade date: July 19, 20 Trade total: $92,155 Trade: Sale of 85,000 shares at prices ranging from $1.02 to $1.15 per share after acquiring 85,000 shares through the exercise of options. Insider: Mark Stevens, vicepresident, exploration Company: Augusta Resource Corp. (TSX:AZC) Shares owned: 0 Trade date: June 30 Trade total: $92,000 Trade: Sale of 20,000 shares for $4.60 per share. Insider: Edward Seraphim, COO Company: West Fraser Timber Co. Ltd. (TSX:WFT) Shares owned: 2,002 Trade date: August 3 Trade total: $89.980 Trade: Purchase of 2,000 shares at $44.99 per share. Insider: Jim Pettit, chairman and CEO

Company: Bayfield Ventures Corp. (TSX-V:BYV) Shares owned: 504,000 Trade date: June 27 Trade total: $81,800 Trade: Sale of 50,000 shares at $0.94 per share and 40,000 shares at $0.87 per share. Insider: Douglas Jones, vicepresident, China operations Company: Eldorado Gold Corp. (TSX:ELD) Shares owned: 0 Trade date: July 14 Trade total: $80,907 (net) Trade: Sale of 50,000 shares at prices ranging from $15.37 to $17.03 per share after acquiring 50,000 shares for $15.37 through the exercise of options. Insider: Gerald Carlson, director Company: Almaden Minerals Ltd. (TSX:AMM) Shares owned: 38,000 Trade date: July 4, 6 Trade total: $80,500 Trade: Sale of 20,000 shares at $3.21 per share and sale of 5,000 shares at $3.26 per share. rchu@biv.com

July July July July employment employment employment employment (goods (natural (agriculture) (manusector) resources) facturing) Goods-sector employment slumped heavily (-3.3% seasonally adjusted) in July, with all five major industry groups in the sector posting employment losses. Natural resources led the race to the bottom, shedding more than a 10th (-10.4%) of its workforce and surrendering most of the gains made in recent months. Employment in agriculture also fell sharply (7.2%), marking the sixth time in seven months that the industry has recorded job losses.

B.C. unemployment holds stable in July B.C.’s unemployment rate held firm at 7.3% (seasonally adjusted) in July, as a slight rise in employment (0.2%) was offset by an increase in the size of the labour force (0.3%). Employment gains were realized entirely by women aged 15 years and older (0.5%) as male employment edged lower (-0.1%).

-BC Stats Infoline, Issue 11-31, August 5

Building permits in municipalities advance in June The value of building permits issued by municipal authorities across B.C. advanced 9.9% (seasonally adjusted) in June. While commercial building intentions fell nearly one-fifth (-19.7%), the value of residential permits jumped by roughly one-third (32.6%), particularly for multi-family dwellings.

-BC Stats Infoline, Issue 11-31, August 5

Year-to-date building permits up slightly in June Year-to-date, the value of building permits issued in B.C. was up slightly (1.9%) in June. Building intentions in Nechako (-49.9%), Cariboo (-33.8%), Kootenay (-21.2%), Thompson-Okanagan (-15.8%) and Vancouver Island/Coast (-10.8%) slipped at doubledigit levels.

-BC Stats Infoline, Issue 11-31, August 5


10

Real estate

Daily business news at www.biv.com  August 16–22, 2011

Real estate roundup

Peter Mitham Storm clouds save property owners from interest rate hikes; in-migration slowdown rings alarm bells for B.C. developers Housing idyll Canadian Bankers Association statistics indicate the proportion of residential mortgages in B.C. three months or more in arrears was 0.47% in May 2011, down from a recent high of 0.49% in February. This is slightly above the national average of 0.41%. (A mortgage that’s three months or more in arrears is liable to proceedings by lenders.) The proportion of mortgages in arrears in May 2008 was just 0.15%, but has risen steadily with just one month’s interruption in April 2010. The good news is that today’s borrowers face neither the double-digit mortgage rates of the late 1980s and early 1990s nor the sharp correction in home prices that contributed to the woes of 1991-92. The economy has also held its own, unlike 199803 when arrears were north of 0.5% of all mortgages. However, the danger today is that historically low rates and relatively stable economic conditions have lulled buyers into an idyll. With fear roiling stock markets this month and casting economic growth in doubt, homeowners should recognize the danger stagnant wages and job losses pose. Bryan Yu, an economist with Central 1 Credit Union, says the recent increase in mortgages in arrears was linked to a rise in job losses during the 2009 recession. The incipient decline in the arrears rate reflects the province’s modest employment growth. “We have seen lower employment growth and, historically, if you look at not only the mortgage in arrears but also the bankruptcy levels, both of them are highly correlated with the employment picture and the labour market picture,” Yu

Number of mortgage-holders behind in payments is down Residential mortgages in arrears as a percentage of all B.C. mortgages 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20%

10 20

08 20

06 20

04 20

02 20

The percentage of residential mortgages three months or more in arrears in B.C. is off its February peak, suggesting that homeowners are getting their financial houses in order

explained. But with the U.S. announcing last week that it would hold the line on interest rates well into 2013 and the Bank of Canada likewise expected to hold off hiking its prime rate until 2012, Yu expects homeowners to enjoy low interest rates for the foreseeable future. “That would be a positive in terms of this mortgage arrears number,” he said. “That would probably bring us down even further.” Building caution The rebound in housing markets of the past two years has given many developers the gumption to surge ahead with new

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construction, but MPC Intelligence Inc. believes there’s reason for caution. While interest rates look to remain in buyers’ favour, the latest edition of the Condo Market Opportunities Report points to slowing in-migration figures to warn that household growth is slowing. While sales of condominium apartment and townhomes is set to be 73% greater in 2011 than in 2009, net migration to B.C. was 50% lower in the first three months of this year versus the same period of 2010. And projections indicate it could end 2011 down 40% overall from last year. MPC argues this could translate into a 10% to 15% drop in new condo sales in 2012, leaving developers with excess inventory. “Overall, we see prices and sales sort of pulling back in 2012,” said Jeff Hancock, senior manager with MPC. “A big red flag for us was the migration numbers, which really took a bit of a dive.” Developers have been disciplined with respect to pricing, even cutting prices at projects that launched this summer in response to slowing sales. But that might not be enough to keep demand in balance with

supply if potential buyers haven’t moved here. Add in economic uncertainties and Hancock says developers need to be cautious and understand the markets where they’re hoping to build lest they contribute to the gathering headwinds. “It’s going to be an oversupply or some unforeseen economic catastrophe that could really push the market over the edge,” Hancock said. “It’s not necessarily pricing, because we’ve seen pricing come down and we’ve seen the market respond to it.” According to the report, Fraser Valley builders should be particularly aware of over-supply possibilities.

“A big red flag for us was the migration numbers, which really took a bit of a dive” – Jeff Hancock, senior manager, MPC Intelligence

Hotel sales rise A million-dollar upgrade to the Lake Okanagan Resort just north of Kelowna on the west side of Lake Okanagan is one sign of the investment B.C. hotel owners are making in their properties. Rooms at the resort, which sits on 300 acres, have been renovated and a 158-slip marina has been added to the property. Calgary’s Northwynd Resort Properties Ltd. acquired Lake Okanagan Resort last summer during the restructuring of Fairmont Resort Properties Ltd. Its portfolio includes other former Fairmont properties in Nevada, Mexico and Belize. Other buyers have also been active in the province this year, with Colliers International Hotels reporting eight properties trading in the first half of 2011. That compares with six in the same period last year and 12 hotel sales overall in 2010. • pmitham@telus.net

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11

August 16–22, 2011 Business in Vancouver   Daily email edition: www.biv.com

Colliers International INVESTMENT 1436 Pendrell Street Pendrell Mansions

Vancouver

West End heritage building. 14 suites averaging over 1,000 SF.

$4,498,000

John Gee Steve Fame

38058 Cleveland Avenue Squamish

968 Nicola Street Langtry Apartments

Vanouver

West End building. Proven track-record, well maintained and easy to manage.

John Gee Steve Fame

$2,888,000 Lot 1 Court Ordered Sale

Five Coves

3836 Carrigan Court Burnaby Carrigan Place Apartments

6588 Royal Ave. & 6483 Bruce St. Horseshoe Bay Motel Horseshoe Bay

Large 65-unit garden apartment. Walking distance to Lougheed SkyTrain Station.

High quality 23-room motel asset and adjacent single family residence.

John Gee Owen Yates

$10,898,000

Cecilia Tse* Tom Andrews

$5,018,000

933 Brookmere Station Road Marshall Springs Brookmere

Fort Nelson Hotel Court Ordered Sale

Fort Nelson

ced

edu ce R

Pri

20,672 SF mixed-use building consisting of 15 residential units and 4 retail units.

5 acre water-access peninsula with 1,600’ of waterfront and amazing views.

$5,000,000

$1,595,000

Cecilia Tse* Simon Lim*

Mark Lester* Alan Johnson

90 acres 30 minutes southwest of Merritt. 178 lot development appoved.

12 acres in downtown core. Hotel, motel, restaurant and more.

Mark Lester* Alan Johnson

$3,500,000

Mark Lester* Alan Johnson

$4,500,000

INDUSTRIAL 5888 Trapp Avenue Burnaby Glenwood Industrial Estates

18380 McCartney Way

Richmond

1050 United Boulevard

Coquitlam

7990 Hoskins Street

Delta

185,000 SF on 15.7 acres. Rail/barge access. 53,227 SF premium light industrial space in South Burnaby.

Darren Cannon*, Stuart Morrison* $8.45/SF Greg Lane

63,575 SF new freestanding warehouse/manufacturing facility.

$5.95/SF

Bruno Fiorvento* Andrew Lord

Space from 25,000 to 111,000 SF.

Todd Scarlett Malcolm Earle

Sublease

In the Know

$8.75/SF

Craig Kincaid-Smith

Metro Vancouver Historical Performance 2,500,000

METRO VANCOUVER INDUSTRIAL MARKET OVERVIEW

5.0% 4.5%

2,000,000

4.0% 3.5%

1,500,000

3.0%

1,000,000

2.5% 2.0%

500,000

1.5% 1.0%

0

0.5%

-500,000

New Supply (SF)

Net Absorption (SF) Current Qtr

2011 Q2

2011 Q1

2010 Q4

2010 Q3

2010 Q2

2010 Q1

2009 Q4

2009 Q3

2009 Q2

2009 Q1

2008 Q4

2008 Q3

2008 Q2

2008 Q1

2007 Q4

2007 Q3

2007 Q2

2007 Q1

2006 Q4

2006 Q3

2006 Q2

2006 Q1

0.0%

2005 Q4

The Metro Vancouver industrial market remained strong during the second quarter of 2011. Although the level of absorption was not as high as in the first quarter, the completion of a number of build to suit projects resulted in positive absorption of 227,671 square feet. Despite the positive absorption the vacancy rate rose slightly to 4.1 percent, up from 4.0 percent in the previous quarter, as a significant amount of sublease space came back to the market. The volume of sale transactions continues to compress, due to a supply constrain, while the demand for quality investment product continues to strengthen. As developers pursue ways to justify developing speculative product, there remains a disconnect between the very high land prices and discounted lease rates.

Vacancy Rate

This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2011. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Colliers Macaulay Nicolls Brokerage Inc. (Vancouver). *Personal Real Estate Corporation. PO #11061.

200 Granville Street, 19th Floor, Vancouver, BC, V6C 2R6 | 1 604 681 4111 | www.collierscanada.com


12

Technology

Daily business news at www.biv.com  August 16–22, 2011

Biotech’s battle to remain buoyant The sector’s high research costs, high risk and high profit potential up against new market jitters By Nelson Bennett

ocal biotech and pharmaceutical companies are posting firsthalf financials that demonstrate why the life-sciences sector is not for the faint-of-heart investor. While Angiotech Pharmaceuticals recapitalizes in the wake of creditor protection, two of Vancouver’s other major players in biotech – OncoGenex Pharmaceuticals Inc. (Nasdaq:GXI) and QLT Inc. (Nasdaq:QLTI; TSX:QLT) – burned through millions in the first half of 2011 to post operating losses of $9.6 million and $8.7 million, respectively. While those companies are well capitalized and enjoy steady revenue from previously approved drugs, market volatility threatens smaller startups, which need venture capital to fund horrendously costly clinical trials. “When we see these major volatility swings, I think you can only describe it as gut-wrenching,” said Bob Butchofsky, president and CEO of QLT, which has emerged in recent years from a series of major divestments and restructuring to find itself on solid financial ground. Starting in 2005, QLT, which specializes in treating eye diseases, had to lay off half its workforce and sell off assets. The company is now

Richard Lam

L

QLT CEO Bob Butchofsky: major volatility swings are “gut-wrenching”

growing again, collecting royalties on drugs it developed – Visudyne (used to treat macular degeneration) and Eligard (a prostate cancer drug) – and is hiring. The company sold Eligard for $230 million and has increased its head count by more than 50 in the last year-and-a-half to 170. “We’re pretty much unlike every other biotech in town,” Butchofsky said. “We’ve got $200 million in cash, we’ve got no debt, we’ve got positive cash flow and we have two very exciting programs in the ocular space.” Companies that don’t have QLT’s

royalties must rely on equity markets, which are again in flux, as they were in 2008 when investors pulled their money out of biotech. The Nasdaq biotech index was down more than 15% midweek, which may spell bad news for smaller biotech firms depending on how long the contraction lasts. “Those companies typically get started with venture backing and the venture market has really dried up,” Butchofsky said. That may explain why iCO Therapeutics Inc. (TSX-V: IC) has hired Equicom Group Inc. to help raise capital. Equicom specializes in

life sciences in Eastern Canada. “They’re probably trying to get their stock price up,” said Jim Heppell, president and founder of Lions Capital Corp. “It sounds like iCO is looking to expand their investor base over to Eastern Canada.” One advantage iCO has over other small pharmaceutical companies is that it focuses more on search and development than research and development – obtaining rights to drugs that have already been approved or are partway through clinical trials and then repurposing them for treatments for which they were not originally designed. That approach reduces the amount of money the company must spend on clinical trials. John-Paul Heale, assistant director for the University of British Columbia’s industrial liaison office, which helps scientists commercialize their ideas and inventions, said the biotech sector has been recovering from the shock of 2008’s sudden withdrawal of capital. “If there is a double-dip recession in the U.S., it will affect investor cash and biotech will suffer,” he said. But Heppell said there’s reason for optimism, because large pharmaceutical companies with expiring drug patents are facing competition from generic drug-makers and are

therefore in buy mode. He added that because of biotech’s high overhead and high risk, it’s a lot like gold mining, and tends to attract only the savviest venture capitalists. It’s also like gold mining in its potential payoffs. Lions Capital was a lead firstround investor in Aspreva Pharmaceuticals, the Victoria company that Galencia Group bought in 2007 for $1 billion. Lions Capital got back 23.4 times what it invested in the company. “That’s why people invest in life sciences,” Heppell said. “It’s risky, but when you hit it right, it’s a lot of fun.” The problem for biotech is the high cost of proving new drugs or treatments through human clinical trials. Heppell estimated that because clinical trials are expensive a biotech’s monthly burn rate is anywhere from $300,000 to $1.5 million. OncoGenex, for example, which specializes in cancer treatments, posted first-half financials last week that showed a net loss of $9.6 million in 2011’s first six months. When a company doesn’t have strong, steady revenue from its previously approved products, it can run into debt quickly. That was the case with Angiotech, which found itself unable to pay its creditors after royalties from its Taxus coronary stent started falling. In January, Angiotech filed for creditor protection, and its stock was delisted from the Nasdaq and Toronto Stock Exchange. Angiotech emerged from creditor protection in May after a recapitalization. • nbennett@biv.com

High-Tech Office

Alan Zisman Gauging Google’s latest social media initiative

C

lichés abound: “Build a better mouse trap and the world will beat a path to your door”; “If at first you don’t succeed, try, try again.” Both may represent feelings over at the GooglePlex, where Google, the world’s

most successful Internet search company, is hoping that Google+, a fourth try at social networking, will succeed where previous efforts Orkut, Google Wave and Google Buzz have failed. T he compa ny hopes

learn Centre your business in a strong, liveable, healthy community high teCh business parks major post seCondary institutions Go to Burnaby’s Economic Development Strategy 2020 online www.burnaby.ca/eds2020 or contact the Planning Department at 604.294.7400 to learn more.

Google+ will appeal to Twitter users frustrated by that service’s 140-character limit or the awkwardness of connecting images or videos to tweets, and to Facebook users frustrated by the difficulty targeting postings to only some Facebook “friends” and unhappy with that service’s apparent indifference to privacy issues. While I never got the point of Google’s earlier Wave and Buzz services, Google+ offers easy-to-use improvements over Facebook and Twitter. The best is “circles.” While Facebook allows users to create groups of friends, most users haven’t figured out how to do that. Google+, by contrast, makes creating circles and assigning followers to them straightforward – and a basic part of the interface. Each time a user posts, she or he is asked what circle(s) should receive the message. Users have control over what personal information is shared with each circle: friends and family get to see my phone number; acquaintances do not. A business owner could

create circles for customers or suppliers, for specific product lines or marketing campaigns, with different posts targeted for each. Facebook “friending” is a two-way street: each sees the other’s posts. Google+ is more like Twitter with followers instead of friends: I follow you, you choose whether you want to follow me. A Google+ user can invite email or social network contacts to join the service and follow her or him; people

A business owner could create circles for customers or suppliers, for specific product lines or marketing campaigns who don’t join can still be sent postings as email messages but will be unable to contribute to the online conversation. Since you can post long entries, easily add photos and video and optionally make posts “public” – searchable on the web – Google+ can become a

blogging medium. But it’s more; you can post a message to a single person, making it an email replacement. Post a message to your customers or employees, making it a business newsletter replacement. Post a message to all your circles, making it a Twitter replacement – without that service’s limitations. But that’s not all. “Sparks” is Google+ speak for topics of interest. Pick a featured topic or search for a topic of choice to see what’s been posted – and made public – on that topic. You can “pin” that spark onto your personal list, making it easy to return again and again. More Google+ speak: “hangouts.” Instant video-conferencing for up to 10 participants. The person speaking is displayed in the big window in the centre. If you leave Facebook or Twitter your data disappears; Google+ instead has a “data liberation” tool that lets users take their data with them if they choose to leave. Nevertheless, it’s not clear whether the world is ready for another social media service – even a better one. In

the first three weeks following its June 28 launch, Google signed on some 20 million users. Facebook, however, boasts over 750 million. And while visits to the Google+ site soared over those first three weeks, both visits and average time on site dropped the following week as users found that there wasn’t a critical mass of either contacts or conversations. That made Google+ seem like a pub without many other customers. (Note that Facebook is also facing a shrinking user base, at least in the U.S., Canada and the U.K.) Google+ is, as I write, a beta; for now, you can’t just sign on – you need to be “invited” by a current user. Personal accounts only, no businesses need apply. And real names only. If you’re interested in trying this wouldbe Facebook/Twitter-killer and don’t have anyone else to invite you to the party, drop me a line. You’re all my “friends,” aren’t you? • Alan Zisman (www.zisman. ca) is a Vancouver educator and computer specialist. His column appears weekly.


Surrey Report

Inside Facilitating the future — 14 New business leaders roll out strategies to establish Surrey as an economic force Women in Business  Businesswomen in Surrey demonstrate attributes of successful entrepreneurs

Quarterly News Report August 16–22, 2011; issue 1138

Bureaucracy busters

Business supports light rail Several new lines being considered would link SkyTrain with south Surrey and Langley By Glen Korstrom

urrey business leaders are joining civic leaders south of the Fraser River by lobbying for light rail in Surrey to be the region’s top transit priority once the province confirms financing for the Evergreen Line. Metro Vancouver mayors are urging the BC Liberals to hike gas taxes by $0.02 per litre with that funding earmarked to pay for the Evergreen Line and other transit upgrades. “Light rail will for sure bring more shoppers to Guildford Town Centre,” said that shopping centre’s general manager Peggy White. “We already enjoy about 10 million shoppers each year and I know that the folks at Metrotown probably enjoy double that because SkyTrain is there.” White’s 985,000-square-foot mall is currently being renovated to add a further 215,000 square feet of retail space where there previously were parking stalls, she said. A multi-storey parkade is being built so that there will be 5,200 total parking spaces – up from 3,500 current spaces and the 5,000 spaces that existed before the mall expansion started. Most of the 800 people who work at Guildford on an average day drive to work and take parking spots that would otherwise be freed up for shoppers, she said. “A lot of people travel across the bridge to do a lot of their shopping – fancy shopping, if you wish – what you would get on Robson Street, Metrotown or Oakridge. We want to fill that void south of the Fraser [River], big time,” said White.

Richard Lam

S

Guildford Town Centre general manager Peggy White believes that a lightrail line between Surrey’s City Centre SkyTrain station and her mall would dramatically increase the number of shoppers

Metrotown has 1.8 million square feet of retail space and 8,500 parking spaces according to general manager Doug MacDougall. White believes that having light rail run from the City Centre SkyTrain station along a modified 104th Avenue to Guildford and then to South Surrey via King George Boulevard would dramatically improve transit access to Guildford. Mayor Dianne Watts mentioned that route during her state of the city address in April. She added that another spike in that light-rail project would be to extend to Langley along Fraser Highway. “The run along 104th Avenue from City Centre to Guildford is a straightforward line. The problem

is that it’s too short,” acting mayor Marvin Hunt told Business in Vancouver. “All the way down to south Surrey would be nice but it will come down to how many dollars we have to spend.” He mocked comments that Vancouver mayoral candidates Gregor Robertson and Suzanne Anton made earlier this summer to Business in Vancouver, advocating an extension of the Millennium Line through the Broadway corridor as the next logical transit megaproject for the region. “Vancouver is always the first priority because it’s Vancouver. They’ve got the Canada Line, the Expo Line, the Millennium Line, the Broadway B-Line busses. They’ve got whatever

else under the sun. But, yes, they’re right, Vancouver should get more,” Hunt said before quickly adding, “I’m being exceedingly sarcastic.” Surrey does not have even a single B-Line bus right now, although that would be slated to change if Victoria approves the $0.02 hike to gas taxes to pay for the Evergreen Line. “The reason we want light rail is that we want to promote our businesses. With SkyTrain, whether it is up in the air or tunnelled, people don’t get to see businesses when they are going by. They don’t get to see new stores that go in,” Hunt said. Some business owners along the route, such as Lisa Bui who owns Pink Rose Nail on 104th Avenue, told BIV that they are ambivalent about improved transit. Unlike many main streets, 104th Avenue already does not have parking, Bui said. Her shop has one offroad designated spot and she does not expect that clients will have any more difficulty parking if the lightrail line is installed. The Surrey Board of Trade has through the years participated in countless studies and workshops investigating rapid transit in the city. The board’s CEO, Anita Patil Huberman, told Business in Vancouver that the three main technologies recently considered were SkyTrain, light rail or an expanded system of B-Line busses. “We created a policy statement at our board meeting in May that officially advises TransLink that we support the development of light rail as the primary rapid transit option in Surrey,” she said.  •

A red-tape reduction committee struck by the City of Surrey finds 75 out of 300 policies to be outdated or unnecessary By Nelson Bennett

I

f there’s anything a businessperson hates more than taxes, it’s red tape. Surrey already boasts one of the lowest business and industrial tax rates in the region. And now it is working on becoming one of the least bureaucratic cities in the region. In January, as part of the city’s two-phase economic investment action plan, and at the urging of the Canadian Federation of Independent Business (CFIB), Surrey Mayor Diane Watts struck the red-tape reduction advisory committee and appointed Coun. Linda Hepner to head it up. “We needed to see some leadership at the municipal level,” said Laura Jones, CFIB’s vice-president, Western Canada, who was the one who convinced Watts to strike the committee. “We heard a lot about processes,” said Hepner, who chaired the 16-member committee. “There is a whole lot of cost to business that is unintended.” The CFIB calculates the cost of meeting government regulations in B.C. is worth $4.8 billion. It is particularly onerous for small businesses, because while they have to meet

gkorstrom@biv.com

See Frustration, 15

submissions now accepted Visit the NewCity Design Awards website for info about competition categories, submission requirements, and details on sister awards in: Beautification, Sustainability, Social Planning and Clean Energy.

Surrey is BuilDiNg the Future

Announcing the 2011

Recognizing Surrey’s most significant accomplishments in urban design & architecture.

The 2011 NewCity Design Award categories range from single family dwellings to comprehensive mixed use developments. The awards will collect and promote examples of best practices shaping British Columbia’s most dynamic large city, and will be selected by this distinguished international jury: David Down FRAIC, Senior Architect/Urban Designer City of Calgary Susan Jones FAIA, Founding Partner, atelierjones architects. Seattle, Washington Margot Long FCSLA, Principal, PWL Partnership Landscape Architects, Vancouver

— 16

Key Dates Sept 9, 2011

deadline for submissions

Oct 25, 2011

awards reception hosted by Mayor Dianne Watts

The inaugural Award Program is open to projects completed anytime after Jan 1, 2001, and citizens, or any member of project development teams, may submit a nomination.

www.surrey.ca/awards

11587


14 Surrey Report

Daily business news at www.biv.com  August 16–22, 2011

Facilitating the future development of the city’s downtown core and strengthening government relations. Mary Jane Stenberg, new president of the SBOT, sees cultivating and securing top talent through education as key to the future success of the community. Stenberg, a longtime educator who owned her own private post-secondary institution called Stenberg College for 15 years and who is currently the special adviser to the president on strategic initiatives at Kwantlen Polytechnic University,

By Jennifer Harrison

T

wo newly minted and experienced presidents at the helm of the Surrey Board of Trade (SBOT) and the Downtown Surrey Business Improvement Association (DSBIA) are intent on bolstering the transformation of Surrey’s city centre. Bi l l Rempel, v icepresident and general manager of Blackwood Partners Management Corp. and president of the DSBIA since February, is intent on promoting the economic

is intimately aware of the link between business and education. “We have two major universities – Simon Fraser University’s Surrey campus and Kwantlen – and a lot of really bright, innovative grads coming out of both institutions,� she said. “We want to encourage them to stay here, start their businesses here or work for existing business, and bring all that youth and energy and education to this region to help develop it and keep it going.�

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In a classic chicken-andegg scenario, Stenberg explains that, on the other hand, if there isn’t a vibrant business community, then there is no incentive for premier talent to stick around. “You can’t look at one segment or the other; you have to look at education, social policy and business as a continuum; I think my background helps the board of trade do that,� said Stenberg. As past president of the Downtown Vancouver Business Improvement Association, Rempel believes that the issues facing Surrey are no different from those of any other metropolitan area. However, when asked about the perception of Surrey as a sleeper community, Rempel is quick to note that the DSBIA is making great headway in addressing this notion.

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Some key initiatives have been to organize media and real estate tours to Surrey along with visits to tradeshows and exhibitions to encourage growth and investment in the area. Rempel admits, “Our immediate area is crying out for a new hotel, which I hope will be the next development

Richard Lam

New business leaders roll out strategies to establish Surrey as an economic force

Mary Jane Stenberg, president of the Surrey Board of Trade, wants to ensure that there are opportunities for youth to be educated and to contribute to the development of Surrey

in our downtown. In addition, there is a large demand for triple-A office space in downtown Surrey. The office tower at Central City is currently 100% leased, but GE Capital Real Estate has plans for additional office towers at Gateway Business Park.� When speaking of the SBOT’s goals for the future, Stenberg agreed. The establishment of an International Trade Centre facilitated by the board of trade will be instrumental in bringing more business to Surrey and creating more jobs. The SBOT has signed memoranda of understanding with about 10 consulates to work with them on economic development. Stenberg said, “We are looking for funding and talking to provincial and federal governments to help fund us so we can establish ourselves as a portal to encourage international partners to invest in Surrey and invest in some of our local companies.� Realizing her time is fleeting with a one-year tenure as president, Stenberg says her most important role is keeping things on track at the SBOT. “My personal goals are to really solidify relationships with the mayor and council,

Bill Rempel, president, Downtown Surrey Business Improvement Association: “the term ‘South of the Fraser’ is catching the attention of the entire Lower Mainland. Surrey will soon be the largest city in B.C.�

to promote their vision even more and to represent the views of our members in terms of the advocacy work we do to continue to go out and survey their needs and make sure that we address them.â€? Rempel’s highest priority during his term as president? “To ensure the business voice is heard as [the DSBIA] continues to contribute to the shaping of our evolving community. Decisions are being made today which will impact future generations and we have a great opportunity to be part of this process.â€?  • jharrison@biv.com

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Surrey Report 15

August 16–22, 2011  Business in Vancouver

From Bureaucracy, 13

many of the same requirements as big businesses, they don’t have their economies of scale. “Red tape costs time and it costs money,” said Peter Simpson, president of the Greater Vancouver Homebuilders Association and committee member. “So we’re pleased that Surrey is looking at ways to either mitigate or eliminate it.” The committee examined 300 city policies and determined 25% were either unnecessary or counter-productive. The city has been working to either scrap or streamline those policies, Hepner said. “Policies that we develop today may have little or no relevance a decade from now, and there has to be a sunset clause in those policies,” she said. One of the biggest complaints the committee heard was about city hall processes. For example, the city requires inspections at certain stages of a development. But homebuilders complained that when they booked an inspector, he or she didn’t always show up on time, which meant they would often have to pay tradesmen to stand around waiting to have an inspection. In response to those complaints, Surrey is now implementing a new electronic notification system that will let builders know, by email or SMS, what the status of

the inspection is, and if any delays are expected. Inspectors will also have equipment that will allow them to print inspection documents on the spot. Another source of frustration for anyone trying to do business with municipal bureaucrats is simply getting through to the right person in a timely fashion and getting consistent, accurate information. Too often, they end up passed onto different departments, getting conflicting information or no answer at all. “People wanted clear direction, immediately,” Hepner said. “So we’ve got a management system that identifies an immediate contact person for them, that they’re not getting that runaround.” Now, when a businessperson contacts city hall with a development plan, a project manager is appointed and he or she works with a team of city officials from relevant departments to make sure the process is streamlined and co-ordinated. The city is also working on streamlining its online processes. Hepner said her committee heard from businesses that they want to be able to conduct business online – including making payments –without having to come down to city hall at each stage of a development process. Hepner’s committee will be meeting in September and will be issuing a final report

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informing the city’s business community of the steps it has already taken and plan to take in the future. To make sure the city’s red-tape reduction strategies are working, Hepner said the committee is recommending measurement protocols to ensure the actions it is recommending are working and continuing to be followed. That’s one policy Jones said she wouldn’t mind seeing city hall hold on to. “Not all rules are bad rules,” she said. • nbennett@biv.com

Richard Lam

Frustration: Shuffled around departments

Surrey businessman Charrold Haddad should find it easier to do business with Surrey City Hall due to a red-tape reduction committee headed by Coun. Linda Hepner


16 Surrey Report

Daily business news at www.biv.com  August 16–22, 2011

women in business

Kristi Miller Businesswomen in Surrey demonstrate attributes of successful entrepreneurs

O

ut of necessity or passion, women throughout history have been active entrepreneurs. In Canada today, it’s reported that up to 50% of small businesses are women-owned. But as plentiful as women-led small businesses may be, there are challenges. A 2009 University of Ottawa survey sums

it up like this: women-owned businesses are “significantly smaller, less profitable and less likely to grow compared to firms owned by men.” At face value, the current extent of the “glass divide” separating the success and size of men-owned businesses from those owned by women is discouraging. But I see a

fundamental change underway: women are increasingly ready, willing and able to grow their small businesses to the next level. I believe much of this can be attributed to the significant increase in post-secondary education over the past decade. Statistics Canada reports that more women now

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graduate from post-secondary education programs than men. As a result, a new generation of women has emerged – one that is well educated in business, financially sophisticated, more risk tolerant, well networked and ready to go big with their businesses. These women are also not afraid to ask questions.

Frequently, I’m approached by female entrepreneurs here in Surrey and asked what I see as the key attributes for owners wanting to take their small businesses to that next level. Without hesitation, I tell them to draw on those qualities that launched them on their entrepreneurial journey: Tenacity: Be tenacious. Persevere. You faced obstacles getting your business started – you’re going to face new ones as you grow it. You didn’t quit then; don’t give up now. P r a g m at i s m : M a k e practical choices, establish efficient processes, set challenging but achievable goals. Seek out and listen to trusted advisers before making decisions and then make choices you can live with. Remember, not everything has to be perfect and not everyone has to agree with you. It’s your company, after all. A broad range of communication techniques and styles: In today’s interconnected world, effective communication is king (or queen!). Moving from a oneor two-person operation to a multi-person, multi-cultural, multi-regional team requires you to connect with your stakeholders like never before. Make good use of the communication skills that you already possess and tailor your communication style to each situation and audience. The ability to say “I don’t know”: Saying you don’t know gives you the permission and freedom to learn more about yourself, your business and your customers. Asking, learning and re-calibrating: these are essential qualities to successfully to growing your business. Good, old-fashioned elbow grease: All successful entrepreneurs share a tremendous work ethic. But be careful of this derailer: as you add more staff, the type of work you’ve done in the past must change. Getting bigger means entrusting important parts of your business to others. You will still work hard – very hard – but the nature of the work will become increasingly strategic as your business scales. Optimism: Every successful entrepreneur I know believes that things can be done better. Never lose your faith in and commitment to

continuous improvement. I recently had the pleasure of working alongside a businesswoman here in Surrey who I believe epitomizes these attributes: Meeru Dhalwala of Vij’s. Meeru – together with her husband Vikram – had a vision to bring the best flavours and foods of India to the North American marketplace. Her beginnings were

Women are increasingly ready, willing and able to grow their small businesses to the next level humble – fuelled only by a passion for what could be. Today, Meeru has diversified her business – it has rapidly grown into two (soon to be three) restaurant concepts, a cookbook series, a well-established media presence in the North American ethno-food industry and a new packaged-foods manufacturing operation. In fact, the New York Times applauded Vij’s as “one of the best Indian restaurants in the world.” It’s women like Meeru – ones who have crossed the glass divide – who continue to inspire the emerging generation of women entrepreneurs. With Surrey’s healthy business environment, good mix of demographics and access to strategic local and global markets, I’m confident we will continue to attract more of these enterprising women to our city and hear of more home-grown successes. Entrepreneurs who are thinking big about their businesses are good for the health and overall well-being of the entire Surrey business community. • Kristi Miller is vice-president of First West Capital – a subordinated and mezzanine debt fund based in Surrey. With more than 15 years of financial industry experience, Miller is also the immediate past president of the Association of Women in Finance (AWF) and an enthusiastic supporter of the Forum for Women Entrepreneurs. Learn more at firstwestcapital.ca or by emailing kmiller@firstwestcapital.ca.


17

August 16–22, 2011  Business in Vancouver

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Sustainability

18

SponSor’S MeSSage

Daily business news at www.biv.com  August 16–22, 2011

NHL all-star Scott Niedermayer teams up with World Wildlife Fund Canada 2010 Olympic gold medallist and captain of Team Canada joins WWF to become new freshwater ambassador

W

e have noticed that some developers are still apprehensive about green development rating systems (LEEDTM, BuiltGreenTM etc.). They feel that it is too expensive, time consuming, or cumbersome, so are reluctant to consider it. But they might be surprised and want to consider that: 1) most projects these days can simply meet the basic LEEDTM and BuiltGreenTM requirements just by following best management practices including energy and water efficiency; 2) many jurisdictions in BC are now looking for some demonstration of a sustainable design such as LEEDTM ‘equivalency’; and 3) an experienced sustainability consultant can cost-effectively guide developers and design teams with incorporating and documenting sustainability measures to a standard that is acceptable to regulators. Damien Crowell, B.Sc., MCIP, P.Ag., LEEDTM AP Environmental Planner/Scientist

J

ust over a year after retiring from the NHL and leading Team Canada to an Olympic gold medal in Vancouver, Scott Niedermayer has taken up the reins again to bring the city, and the country, international recognition. This time, however, even the salmon will be applauding him. Niedermayer has joined forces with the World Wildlife Fund (WWF) to become Canada’s freshwater ambassador, with a focus on the Pacific region. In his new role, Niedermayer will be working with the WWF in its freshwater program, a job that entails raising awareness of the issues involved with the consumption of fresh water and the impacts its usage has on the ecosystems that depend on it.

“I was eager to explore something different than frozen ice and a piece of rubber, which was great – I had a lot of fun doing that. But at the same time, I was excited to learn some new things and try on something different”

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As someone who’s always had an interest in the environment and conservation, it wasn’t long after his June 2010 retirement from the NHL that Niedermayer’s agent suggested he connect with the WWF. “I was eager to explore something different than frozen ice and a piece of rubber, which was great – I had a lot of

Dominic Schaefer

Don’t be afraid to Leed

By Jen O’Rourke

Darcy Dobell, vice-president Pacific region, World Wildlife Fund Canada, welcomes former NHL star Scott Niedermayer as Canada’s new freshwater ambassador

fun doing that. But at the same time, I was excited to learn some new things and try on something different,” said Niedermayer. It’s a move that WWF president and CEO Gerald Butts and vicepresident, Pacific region, Darcy Dobell trust will raise awareness and inspire Canadians nationwide about freshwater ecosystems and the importance of conserving those ecosystems. “We’re looking to elevate fresh water as a policy issue, a public relations issue. ... Our point is a really simple, straightforward one: that the life that’s in and around freshwater ecosystems, like grizzly bears and salmon – all the things that make B.C. B.C. – are really important. We need to have a better scientific understanding of what those species need before

we start taking so much of it for ourselves,” said Butts. The government is currently working on overhauling B.C.’s freshwater legislation, which is more than 100 years old. As it stands right now, what is required to keep the environment alive around freshwater ecosystems doesn’t have to be taken into consideration before the resource is allocated for commercial, industrial or residential purposes. With Vancouver having a “hyperaware” public and a mayor that makes it his goal publicly to make the city the greenest city on earth, having it also become a leader in the world for freshwater sustainability is something Dobell hopes will soon become a reality. “We can be ahead of the problem and get ready and be prepared,

because things are going to change,” said Dobell. “It’s good to have the legislation in place now, but we can also take this opportunity to be the first jurisdiction in Canada ... to be a model, not just for jurisdictions that have had to do this because of scarcity, but to be able to show this to other places – how you can do this right, proactively.” As for what drew Niedermayer to WWF as his choice in conservation organizations, it was all about their approach. “I like how they seem to approach it with some give and take and some finesse, and try and just get everybody feeling good about what’s going on,” said Niedermayer, “as opposed to maybe being the loudest voice in the room, and that’s more my style.” • news@biv.com

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sustainability 19

August 16–22, 2011  Business in Vancouver

sustainability

NINA WINHAM Greening human nature

C

an we get to a sustainable economy by adapting the economy as we know it? Or does something much deeper have to happen? That question surfaced at a recent public consultation process I was invited to, leading up to next year’s “Rio+20” UN Conference on Sustainable Development. The event highlighted the gap between two pathways to change: a measured transition based on increased investment and pursuit of green opportunity, or a transformative leap based on grappling with human nature and its potential for self-destruction. Epic? Quite. First, the presenter from United Nations Environment Program (UNEP), Amy Fraenkel, did a tidy job of offering key findings from the agency’s recent report, Towards a Green Economy (available online at unep.org/greeneconomy). It’s good news if you harbour lingering worries that going green could be bad for business. The report concludes that “the greening of economies is … a new engine of growth … a net generator of decent jobs and … a vital strategy for the elimination of persistent poverty.” Greening the economy requires upfront investment, then leads to both higher GDP and improved environmental outcomes. Fraenkel did note that the report was written to catch the attention of economists, using accepted frameworks of economic analysis and practice. The challenge that rose from the floor was whether such framing does

us any good or dooms us to continued failure. It came from Bill Rees, the designated respondent. A professor at UBC, a specialist in population ecology and a founding member of One Earth Initiative (one of the event’s conveners), Rees is the author of the concept of ecological footprint, and a respected advocate for sustainability change. Green means smaller Rees put a plain point on his message: the scale of human enterprise on the planet is simply too big. We are destabilizing the climate, fishing at a pace that will empty the oceans, destroying soil reserves and other natural resources – and no amount of growth, no matter how smart, green or “sustainable,” can save us. “A green economy is a smaller economy,” said Rees. “I tell you right now, there will never be 11 billion people on this planet.” Rees says any species, introduced to an unused environment, will go through a “plague phase” where it pollutes and uses up resources until the population crashes. “Humans are doing that right now,” he said. “But this will take us down, as it has taken down other previous human cultures. So my challenge is for us to rise to our capacity as human beings.” To do this, he says, there are a few fundamentals to be recognized: • recognize we must have a smaller economy; • achieve more justice in the way proceeds are distributed between populations; and

• a c h i e ve p opu l at ion stability. Rees believes that rather than growth, we need redistribution. “It’s obscene for 20% of the world’s people to earn 80% of world’s income and 20% to be living on 1% of the income. It is unsustainable – and it cannot be solved by growth.” Would change be painful? Not for those who already have enough. At that level, Rees said, “There is no correlation anymore between income and indicators of population health or felt well-being. People are driven by a model that says more money will make you happy – but that is patently false.” Redistributing income would benefit those who are impoverished. For those of us who already have sufficiency, the benefit would be more time. “Shifting out of the carbon economy doesn’t mean a damn thing if we don’t make significant change,” said Rees. “What’s the single most important thing we can do to advance the green economy? My answer is ‘know ourselves’ – we don’t understand ourselves as a species.” Humans: discounters and deniers Rees says human beings are inherently discounters: “We prefer the here and now; we don’t give a damn about the future, or other species. If you left fruit on the tree for someone else, you didn’t get to eat them,” he said. (This makes us the same as most other animals.) We’re also hierarchical. “We put a great deal of prestige in wealth and

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“We’re acting like the most primitive species in the planet, focused on the short term, as if there is no future to think about. We’re missing out on being truly human” – Bill Rees, specialist in population ecology, founding member, One Earth Initiative

political power. Those who have wealth and political power will defend it to the hilt.” Those two traits lead to our capacity for “deep denial,” said Rees. “We will deny the problems that will take us down.” Which has spawned, he pointed out, a huge industry dedicated to misinformation about our current environmental state of affairs.

There’s good news, however. Rees said we humans have four capabilities that a re u n iquely ou r ow n. These, if we harness them, might save us: •we are high ly intel ligent, with the ability to reason logically, consider facts, and plan a course of action; •we have the capacity for forward planning; •we have the capacity for moral judgment, to differentiate between right and wrong; and •we have compassion, the ability to understand the needs of others and extend care. These capabilities could make the difference to our outcome on the planet, if we use them. But Rees argues that, by planning for a green economy using standard concepts such as growth, we’re not. Harnessing our best “We’re acting like the most primitive species in the

planet, focused on the short term, as if there is no future to think about,” he said. “We’re missing out on being truly human. “Here is my challenge,” said Rees. “Become intelligent. Plan sensibly using that intelligence. Exercise your capacity for moral judgment and compassion for other humans and other species. Because continuing to act like an animal in plague phase simply guarantees our demise.” I don’t know if UNEP was listening, but I hope anyone toiling for more grow th without visioni ng much deeper solutions takes a moment, and hears. • Nina Winham (nina@newclimate.ca) is principal of New Climate Strategies, helping clients build value through sustainability and communications strategy. She writes regularly on sustainability topics. w w w. newclimate.ca.

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List

20

Daily business news at www.biv.com  August 16–22, 2011

Biggest food franchises B.C. in B.C. Biggest food in franchises

DEKKER HEWETT GROUP Vancouver’s Trusted Wealth Management Team

604.643.0285

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Ranked by number of B.C. locations in 2011 Rank '11

1 2 3 4 5 6 7 8 9 10 11

Company

Products/services Year Top local executive(s) founded

Franchise fee Capital required Start-up costs

System No. B.C. No. B.C. sales franchises locations '10 '11 '11

SUBWAY Franchise Systems of Canada Ltd

Quick-service restaurants

1988

Margot Micalleff Alex Melikian

NP

NP

367

Tim Hortons

Quick-service restaurants

1978

Glenn Mortimer, vice-president of operations, Western Canada

$5.2 bil.

2781

2781

A&W Food Services of Canada Inc

Quick-service restaurants

1956

$794 mil.

173

173

Dairy Queen Canada Inc

Quick-service 1956 restaurants with softserve dessert treats Full-service and 1928 quick-service restaurants Toasted sandwich 1981 restaurants

Paul Hollands, president and CEO Graham Cooke, vice-president, new restaurant expansion NP

$7,500 - $15,000/ $100,000/ $200,000 NP/ $430,000 - $480,000/ $50,000 $55,000/ $365,000 - $1,100,000/ $25,000 US$35,000/ Varies/ Varies $40,000 (Triple-O's), $75,000 (White Spot)/ $750,000 (Triple-O's), $1,500,000 (White Spot)/ $25,000+ (Triple-O's), $50,000+ (White Spot) $25,000/ $90,000/ $227,000 - $316,000 $25,000/ $85,000 - $115,000/ $250,000-$360,000 $25,000/ $100,000 - $120,000/ $280,000 - $330,000 $60,000/ $600,000 - $800,000/ $1,500,000 - $2,400,000 $30,000/ $175,000/ $300,000 - $450,000 $55,000/ $2,000,000/ $1,200,000-$2,200,000

NP

NP

140

NP

902

115

NP

NP

92

NP

90

90

NP

62

62

$853 mil.3

NP

61

NP

NP

49

NP

36

36

$40,000/ $500,000/ $1,000,000+ NP $25,000/ $350,000/ $50,000 Frank Di Benedetto, president and CEO $45,000/ $300,000 - $400,000/ $800,000 - $950,000

NP

NP

31

$52.6 mil.

27

27

NP

NP

24

Darryl Chandra, president Michael Anthony, chair

NP

NP

24

NP

23

23

NP

22

23

NP

NP

21

NP

NP

21

$468.5 mil.

12

21

NP

18

18

NP

NP

14

NP

NP

12

NP

NP

12

NP

10

10

25 King Edward St Suite 101, Coquitlam V3K 4S8 P: 604-777-1999 F: 604-777-1998 www.subway.com

874 Sinclair Rd, Oakville, ON L6K 2Y1 P: 905-845-6511 F: 905-845-0265 www.timhortons.com 171 Esplanade W Suite 300, North Vancouver V7M 3K9 P: 604-988-2141 F: 604-988-5531 www.aw.ca 5045 South Service Rd Suite 3000, Burlington, ON L7R 3Y3 P: 905-639-1492 F: 905-639-8877 www.dairyqueen.com

White Spot Ltd

1126 Marine Dr SE, Vancouver V5X 2V7 P: 604-321-6631 F: 604-321-0637 www.whitespot.com

Quizno's Canada Restaurant Corp

355 King St W Suite 300, Toronto M5V 1J6 P: 877-481-7827 F: 647-259-0341 www.quiznos.ca

13 14 14 16 16 18 18 18 21 22 23 23 25

NP

Panago Pizza

Pizza delivery/takeout 1986 outlets

Sean DeGregorio, CEO

Blenz The Canadian Coffee Co Ltd

Premium coffee, espresso and beverages; light food Casual dining restaurant

1991

George Moen, president

1964

Jim Treliving, co-chair George Melville, co-chair Mark Pacinda, president and COO John Horsley

109 Atlantic Ave Unit 302A, Toronto M6K 1X4 P: 877-731-0310 F: 905-574-6718 www.franchisepanago.com 535 Thurlow St Suite 300, Vancouver V6E 3L2 P: 604-682-2995 F: 604-684-2542 www.blenz.com

Boston Pizza International Inc

5500 Parkwood Way, Richmond V6V 2M4 P: 604-270-1108 F: 604-270-4168 www.bostonpizza.com

M & M Meat Shops Ltd

Specialty frozen food 1980

Burger King Restaurants of Canada Inc

Quick-service restaurants

1969

NP

Wendy's Old Fashioned Hamburgers

Quick-service restaurants

1978

NP

Taco Time Canada

Mexican fast-food

1977

Ricky's All Day Grill

Full-service restaurant

1960

Taco Del Mar

Mexican seafood quick-service restaurants Family restaurant

1992

Waves Coffee House

Coffee house franchisor

2005

De Dutch Pannekoek House

Casual dining

1975

Nando's Chicken Canada

Flame-grilled chicken 1994 restaurants

Keg Restaurants Ltd

Steakhouse restaurants

1971

Fatburger Canada

Quick-service burger

2005

$15,000/ $156,700-$376,500/ NP Gordon Beattie, president $50,000/4 $200,000/ $750,000 NP $25,000/5 $300,000 - $350,000/ NP Bill Waring, president $37,500/ Varies/ Varies Dan Isserow $35,000/ $400,000/ NP David Aisenstat, chair, president & CEO $50,000/ Jim Croteau, COO $2,000,000 - $3,000,000/ Doug Smith, EVP Varies James Henderson, EVP NP NP

The Pantry Hospitality Corp

Family restaurant

1974

Mike Hoffmann, president

Esquires Coffee Houses Inc

Coffee shops

1992

NP

Mr Mikes Steakhouse and Bar

Steakhouse and bar

1960

Yuri Fulmer, CEO

Joey's Only Seafood Restaurants

Seafood restaurant

1985

NP

PO Box 2488, 640 Trillium Dr, Kitchener, ON N2H 6M3 P: 519-895-1075 F: 519-895-0762 www.mmmeatshops.com

401 West Mall Suite 700, Etobicoke, ON M9C 5J4 P: 416-626-6464 F: 416-626-6691 www.burgerking.ca

12

Warren Erhart, president

1 Dave Thomas Blvd, Dublin, OH 43017 P: 614-764-3100 F: NP www.wendys.ca

franchisor 7156 Fisher St SE, Calgary T2H 0W5 P: 866-835-8226 F: 403-543-3499 www.tacotimecanada.com 1901 Rosser Ave Suite 401, Burnaby V5C 6S3 P: 604-637-7272 F: 604-637-8874 www.rickysrestaurants.com 3071 No.5 Rd Unit 1, Richmond V6X 2T4 P: 855-425-0868 F: 206-624-7065 www.tacodelmar.com

ABC Country Restaurants Inc

15373 Fraser Hwy Suite 202, Surrey V3P 3R3 P: 604-583-2919 F: 604-586-8488 www.abccountry.ca 715 Columbia St, New Westminster V3M 1B2 P: 604-540-9283 F: 604-540-9299 www.wavescoffee.ca 8484 162 St Suite 108, Surrey V4N 1B4 P: 604-543-3101 F: 604-543-3107 www.dedutch.com 13931 Sparwood Pl Suite 130, Richmond V6V 1X2 P: 604-303-0881 F: 604-303-0882 www.nandoscanada.com 10100 Shellbridge Way, Richmond V6X 2W7 P: 604-276-0242 F: 604-276-2681 www.kegsteakhouse.com

restaurants 1901 Rosser Ave Suite 401, Burnaby V5C 6S3 P: 604-637-7272 F: 604-637-8874 www.fatburgercanada.com 1812 152nd St Suite 203, Surrey V4A 4N5 P: 604-536-4111 F: 604-536-4103 www.thepantry.ca 12823 Crescent Rd Suite 4, Surrey V4P 1J6 P: 604-541-1004 F: 604-535-1411 www.esquirescoffee.com 1500 Georgia St W Suite 1900, Vancouver V6G 2Z6 P: 604-684-6901 F: 604-684-6937 www.mrmikes.ca 514 42nd Ave SE, Calgary T2G 1Y6 P: 403-243-4584 F: 403-243-8989 www.joeys.ca

Sources: Interviews with above companies and BIV research. NR Not ranked NP Not provided NA Not applicable 1 - Includes 195 standard restaurants, 57 nonstandard and 27 self-serve kiosks 2 - Includes 41 White Spot franchises and 49 TripleO's franchises 3 - System sales 4 - Plus 4% royalty fee and 2% advertising fee based on monthly sales volume 5 - Monthly 6% royalty fee based on gross sales plus 3% advertising fee

1972

$40,000/ $450,000-$600,000/ NP $25,000/ $250,000/ $250,000 - $350,000 $50,000/ $400,000 - 500,000/ $800,000 - $1 million NP

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List

August 16–22, 2011  Business in Vancouver

21

Clancy’s rebrands to carve out bigger market share in specialty meats sector C

lancy’s Meat Co. CEO Paul Monger didn’t cut any corners when he realized that he needed to rejuvenate his company’s brand if he wanted to take on the competition in the specialty meats franchise industry. Monger introduced Canada’s specialty food market to the concept of the “modern-day butcher shop.” By adding an extensive line of frozen products accessible by selfserve freezers and a wide range of packaged sauces and marinades, Monger has executed a complete product overhaul designed to appeal to consumers’ evolving desires and tastes. “We really need to carve out our business like anyone else,” Monger said. “We have to fight hard for that positioning, and this rebrand of our locations will help us achieve that.”

Stocked with fresh and frozen products, the new Clancy’s Meat stores are bright, airy and modern. In the 12 months since it started rolling out its new product line, the Surrey-based company has sold more than 25 new franchise locations across Canada and experienced a 250% system-wide sales growth. Monger plans to open as many as 10 stores in B.C. over the next year, but, he said a lot depends on real estate. “We get quite a bit of attention from investors, but the acquisition of real estate is a large focus in target communities and [that] can sometimes create a waiting game. A franchisee in Langford outside of Victoria has been looking for quite some time. Patience will pay off, but they do have certain restrictions because of similar grocer y-anchored

locations,” said Monger. “[Lease] rates are excessively high, up to $50 to $60 a square foot.” But he added that there are good opportunities in the local marketplace and pointed to Burnaby’s Kensington Square Plaza as an example. “Normally, we don’t find space in a grocery-anchored site because they typically prevent Clancy’s or other fine meat shops from getting in there. “It’s a busy plaza with restaurants, grocery, banks, and a real local win for the company to get in this area.” Clancy’s has another location in Burnaby under construction, a store in Cloverdale opening in spring of 2012 and is close to completing its first outlet in Kamloops. “A lot of what we’ve been doing is outside of B.C., developing

Clancy’s Meat Co.

Take Five tackles overhaul in hotly contested Metro Vancouver café trade

Meat matters: Surrey-based Clancy’s Meat Co. campaigning under a new banner

‘seed’ stores in Alberta, Saskatchewan and Ontario,” he said. T h e f i r s t C l a n c y ’s s t or e opened in Langley in 1997. Since then, another seven locations have opened in the Metro Vancouver area. In 2008, the company accelerated growth through franchising.

It takes a minimum investment of from $200,000 to $500,000 to own a turnkey Clancy’s Meat franchise, including a franchise fee of $25,000. The franchisee is also on the hook for 3% advertising and 3% royalty fees.

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see Subway, 23


22

List

Daily business news at www.biv.com  August 16–22, 2011

Biggest non-food franchises in B.C. Ranked by number of B.C. locations in 2011 Rank '11 Company

1

Products/services

Year Top local executive(s) founded

Franchise fee Capital required Startup costs

System No. B.C. No. B.C. sales franchises locations '10 '11 '11

Pharmasave Drugs (Pacific) Ltd

Retail drug store chain

1981

David Reston, CEO, Pharmasave Pacific Sue Paish, CEO, Pharmasave National

NP

$325 mil.1

129

129

RE/MAX of Western Canada

Real estate franchisor

1980

Elton Ash, regional executive vice-president

$43.8 bil. 118

118

Jim's Mowing British Columbia

Lawn and garden services, plus landscaping, snow removal throughout B.C. by insured and bonded owneroperators Print and copy shops and business services centres

1997

Dennis Reidy, president

$5,000 - $25,000/ As required/ $30,000 - $215,000 $490 + Taxes/ $39,500 + Taxes/ NP

NP

81

81

1990

David Drucker, president and CEO

$35,000/ $146,150 - $179,550

NP

NP

60

$1,000/2 $50,0002 $29,420 - $111,5152 NP

NP

53

54

$187.9 mil.

NP

51

$20,000/3 $65,000/ $200,000 min. NP

NP

NP

49

NP

45

45

$12,500 - $22.500/ $100,000/ $105,500 - $161,500 NP

NP

NP

39

NP

NP

36

$75,000 - $300,000 $400,000/ $65,000 - $135,000 $25,000/ Varies/ Varies NP

NP

NP

36

NP

30

31

NP

NP

28

NP

NP

NP

26

$20,000/ $100,000 - $175,000/ $200,000 - $300,000 $15,000/ $50,000 - $100,000/ $100,000 -$180,000

NP

NP

26

NP

24

24

NP

NP

23

5685 176A St, Cloverdale V3S 4C5 P: 604-574-2621 F: 604-574-0233 www.pharmasave.com

2

1060 Manhattan Dr Suite 340, Kelowna V1Y 9X9 P: 250-860-3628 F: 250-860-7424 www.remax-western.ca

3

1515 Pemberton Ave Suite 105, North Vancouver V7P 2S3 P: 604-990-0714 F: 604-990-0724 www.jimsmowing.ca

4

The UPS Store (formerly Mail Boxes Etc)

505 Iroquois Shore Rd Unit 4, Oakville, ON L6H 2R3 P: 800-661-6232 F: 905-338-7491 www.theupsstore.ca

5

Kumon Math and Reading Centres

After-school math and reading 1989 programs

Lisa Kaul, president (Kumon Canada Inc.)

Ok Tire Stores Ltd

Tire and automotive services

1953

Greg Sims, president and CEO

Your Dollar Store with More

Retail dollar store

1998

Russ Meszaros, co-founder and CEO David Uzelman, co-founder

Century 21 Canada LP

Real estate office franchisor

1975

First Choice Haircutters

Hair care

1984

Gary Charlwood, chair and CEO Donald Lawby, president and COO Brian Rushton, senior vice-president, operations Alan Storry, vice-president, franchise development

Expedia CruiseShipCenters

Travel

1988

NP

Sussex Insurance Agency Inc

General insurance agency

1976

Ken Armstrong, founder

Budget Brake and Muffler

Automotive repair

1972

NP

Windsor Plywood

Building materials

1969

Randle Jones, president

Medicine Shoppe Canada

Pharmacy

1992

Sutton Group Realty Services Ltd

Real estate franchise

1983

Alan Arnstein, vice-president of franchise development Sandra Gill, director of franchise development, B.C. and southern Alberta NP

Wine Kitz Franchise Inc

On-premise winemaking 1992 services and carry a large selection of home winemaking supplies Auto repair and maintenance 1956 services

Tim Martin, director of franchise operations

NP

$20,000 - $30,000 $50,000 - $100,000

Uniglobe Travel (Western Canada) Inc

Travel agency franchisor

1981

Dependent on business $3 bil. model chosen

23

23

Great Canadian Dollar Store (1993) Ltd

Dollar stores

1993

Hank Oostveen, vice-president, agency marketing and industry relations Michael Raincock, vice-president, agency operations NP

$19,880/ $165,000+/

NP

NP

22

Coast Hotels & Resorts

Hotel ownership, management 1972 and franchising

Shuhachi Naito, senior vice-president

5.5% of gross room revenue

$208.3 mil.

17

21

Mr Lube Canada

Warranty-approved vehicle maintenance services

1976

NP

NP

NP

21

Minuteman Press International Inc

Printing services

1973

NP

$50,000/ $300,000 - $550,000/ $900,000 - $1,500,000 $19,500 - $45,500/ $50,000 - $150,000

NP

19

19

Nurse Next Door Home Healthcare

In-home caring

2001

$40,000/ $115,000/ $115,000

NP

18

19

Rent-A-Wreck

Used car rentals

1977

John DeHart, co-founder Ken Sim, co-founder Judy Brooks, executive director David Reeve, vice-president, franchise development NP

NP

NP

NP

19

ServiceMaster of Canada

Disaster restoration, janitorial 1953 services, commercial and residential carpeting

Robert Brennan , president

$25,000 - $68,000/ Minimum $25,000/ NP

NP

19

19

4664 Lougheed Hwy Suite 226, Burnaby V5C 5T5 P: 604-454-1001 F: 604-454-1002 www.kumonfranchise.ca

6

19082 - 21st Ave, Surrey V3S 3M3 P: 604-542-7999 F: 604-542-7990 www.oktire.com

7

620 Leon Ave Suite 200, Kelowna V1Y 9T2 P: 250-860-4225 F: 250-860-4215 www.dollarstore.ca

8

1199 Pender St W Suite 700, Vancouver V6E 2R1 P: 604-606-2100 F: NP www.century21.ca

9

210 6465 Millcreek Dr, Mississauga, ON L5N 5R6 P: 800-617-3961 F: 905-567-7000 www.firstchoice.com

10 10 12 13 14 14 16 17 17 19 20 20 22 22 22 22

1055 Hastings St W Suite 400, Vancouver V6E 2E9 P: 604-685-1221 F: 604-685-1245 www.cruiseshipcenters.ca 173 Forester St Suite 108, North Vancouver V7H 0A6 P: 604-983-6955 F: 604-983-6933 www.sussexinsurance.com 185 Golden Dr Suite 200, Coquitlam V3K 6T1 P: 604-464-1239 F: 604-464-1426 www.budgetbrake.com 10382 176th St, Surrey V4N 4N5 P: 604-581-4661 F: 604-581-8886 www.windsorplywood.com 10104 103rd Ave, 1600 Bell Tower, Edmonton T5J 0H8 P: 800-267-8877 F: 780-425-3980 www.futureofpharmacy.com 1080 Mainland St Suite 206, Vancouver V6B 2T4 P: 604-691-1620 F: 604-691-1640 www.sutton.com 27 Scott St W, St. Catharines, ON L2R 1E1 P: 800-263-4790 F: 800-453-5535 www.winekitz.com

Midas International Corp

1300 Arlington Heights Rd, Itasca, IL 60143 P: 800-621-0144 F: 630-438-3700 www.midasfran.com 1444 Alberni St Suite 302, Vancouver V6G 2Z4 P: 800-864-4562 F: NP www.uniglobetravel.ca

2957 Jutland Rd Suite 101, Victoria V8T 5J9 P: 877-388-0123 F: 250-388-9763 www.dollarstores.com 1090 Georgia St W Suite 900, Vancouver V6E 3V7 P: 604-682-7982 F: 604-682-8942 www.coasthotels.com 725 Eaton Way Suite 110, Delta V3M 6S5 P: 604.759.4300 F: NP www.mrlube.com 4190 Lougheed Hwy Suite 410, Burnaby V5C 6A8 P: 604-435-4496 F: 631-249-5618 www.minutemanpress.ca 5511 West Blvd Suite 320, Vancouver V3M 3W6 P: 604-228-4357 F: 604-228-4359 www.nursenextdoor.com 7710 5th St SE Unit 204, Calgary T2H 2L9 P: 403-259-6666 F: 403-259-6776 www.rent-a-wreck.ca 5462 Timberlea Blvd, Mississauga L4W 2T7 P: 800-263-5928 F: 905-670-0077 www.servicemaster.ca

Do not miss the Book of Lists, a compilation of lists featured in BIV, including biggest law firms, Sources: Interviews with above companies and BIV research. NR Not ranked NP Not provided NA Not applicable 1 - System-wide sales 2 - Only pertains to Kumon construction companies, biotech firms and many more. Free to subscribers ($79.95 plus HST for one Canada Inc. 3 - Plus 4% royalty fee and 0.5% advertising fee year) or $35 plus HST as a separate purchase. Purchase lists as Excel files at www.biv.com/listsforsale

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, Jenny Wagler and Jennifer Harrison, lists@biv.com

>Next week: Biggest shopping centres and biggest residential and commercial real estate brokerages in B.C.

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List

August 16–22, 2011  Business in Vancouver

23

Airports on A&W expansion menu By Glen Korstrom

W

gkorstrom@biv.com

Subway: 600 new stores, 27 in Canada, opened in 2011 from Clancy’s, 21

Take Five takes on new look With around 400 coffee shops in the Lower Mainland, it takes something special to stand out from the competition. Longtime restaurateurs and brothers Dean and Steve Punzo think they’ve done just that. Throughout August, seven Metro Vancouver Take Five Café locations reopened with a new look highlighted by a revamped logo and instore rebranding. “We’ve changed the look and feel of the cafés, but the much-loved coffee and Italian-inspired foods remain the same,” said Steve. Having experience with consulting agencies for creative and business decisions in the past, the Punzo brothers worked together to come up with the chain’s first rebranding since opening in 2003. “What really separates Take Five Café from the rest of the competition is the quality of our coffee,” said Steve. “It’s a balance – not over-roasted – right through the espresso to the drip coffees and decaf … and the food is top notch.” He added that while initially it was a challenge to explain the entire scope of the rebranding to franchisors, “everyone has embraced the new look and is excited for the future of the company.” Take Five Café opened a café kiosk at Richmond Centre in January and plans to open a ninth location at New Westminster’s Brewery

District redevelopment this fall. The European-style coffee houses evolved from the Punzo family’s original business, the upscale Caffé dé Medici restaurant on Robson Street, a recipient of the Distinguished Restaurants of North America as well as several Wine Spectator Awards. Dean and Steve started working at Caffé de Medici in the early 1980s and took over the business in 1995 when their father retired. When asked about expanding Take Five outside of the Lower Mainland, St e ve re s p ond e d , “ We want to grow, but grow responsibly.” Ta ke Five f r a nch i se prices were not available as of press time. Subway opens another 600 stores in 2011 In May, June and July, Subway franchisees have opened nearly 600 new locations in 48 countries, 42 U.S. states and seven Canadian provinces. That brings the total of new Subway restaurants to just over 1,200 for the year. All of the new restaurants account for roughly 1.4 million square feet of retail space and provide jobs for approximately 12,000 people. In total, 27 new franchises have opened in Canada this year, including B.C. locations at Simon Fraser University, Victoria’s Royal Jubilee Hospital and Home Depot in Port Coquitlam. International milestones for the period include establishing more than 600 locations

in Brazil, 200 in Russia and opening the first Subway restaurant in Liechtenstein. One of the most popular franchises in the world, the Subway chain now has more than 8,000 locations across the globe. A Ca nad ia n Subway franchise requires an investment of from $80,000 to $310,000, including a $15,000 franchise fee. EmbroidMe sews up a master franchise deal Embroidery franchise EmbroidMe has signed a master franchise agreement with serial franchisee Stuart Erskine to develop the brand in Canada over the next few years. Its initial focus will be in Alberta and Ontario. “We a re ver y e xc ited to welcome Stuart Erskine into the EmbroidMe system,”said EmbroidMe president Mark Johnson. “Stuart brings with him

several years of experience in the franchising industry, which will enable him to grow the EmbroidMe brand across Canada.” Erskine is also master franchisor for Billboard Connection, an outdoor advertising agency, and owns and operates sign promotional and advertising franchise Magnetsigns. Embroid Me ha nd les screen-printing and marketing specialties. The franchise requires a total investment of between $66,000 and $187,000, including an initial franchise fee of $35,500 under a 35-year agreement. There is also a royalty fee. • Compiled by Kevan O’Brien/ Western Investor. Western Investor (www.westerninvestor.com) is a division of Business In Vancouver Media Group. Published monthly, it focuses on commercial real estate in Western Canada.

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Toronto a nd Mont re a l airports. One obstacle is that airport authorities often hire one company to operate all food services. If that company decides it’s not interested in an A&W, Cooke said, A&W would then be out of luck. A&W has 11 corporately owned and 729 franchised restaurants. Approximately half of White Spot’s 65 full-service restaurants and 55 of its 60 Triple-O’s-branded restaurants are franchised. •

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sector that we’ve found interesting is airports. There’s lots and lots of traffic – far more, typically, than there would be in a university setting.” A&W has franchised locations both pre-security and post-security at the Vancouver and Calgar y international airports. Those restaurants produce a much higher volume than does the average A&W restaurant. Cooke said he would jump at the opportunity to also have restaurants at the Edmonton, Winnipeg,

Your donations to United Way will support after-school tutoring and summer activity programs for 42,000 school-age children across the Lower Mainland to help kids make the right choices. Thank you.

hite Spot Ltd. is expanding its Triple O’s brand in the next month to Langara College, the University of British Columbia (UBC) and British Columbia Institute of Technology (BCIT). It already operates Triple O’s restaurants at two Doug las C ol lege c a mpuses and its director of operations, Scott Lewis, told Business in Vancouver last week that he believes post-secondar y institutions make great locations

for restaurants. Executives at the other major Lower Mainland-based fast-food f ra nchisor, A&W Food Services of Canada Inc., are less keen to open restaurants on campuses even though the chain has locations at UBC, Carlton University and Wilfred Laurier University. “We consider college campuses interesting but, for us, they’re non-strategic,” A&W vice-president of new restaurant expansion Graham Cooke told BIV August 9 “The only institutional

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24

Law

Daily business news at www.biv.com  August 16–22, 2011

Trouble

BUYER’S ALERT Companies listed below,

which are not members of the Better Business Bureau, have failed to respond, as of March 18, 2011, to Better Business Bureau of Mainland B.C.’s efforts to mediate complaints from July 25, 2011 to July 29, 2011. In some instances, the company may have taken care of the complaint and considered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records cannot reveal either position. Please note that BBB members must respond to customer complaints that are brought to their attention. Source: BBB. ConsumersReward Solutions, Vancouver Devon Arnold Painting, North Vancouver Direct Survey Solutions, Vancouver Discount Auto Glass, Port Coquitlam Duet Introductions, Surrey E Q 3, Vancouver Easyhome Ltd., Kelowna Eaton’s Commercial & Residential Services Ltd., Burnaby Element Electronics, Vancouver Empire Vehicle Solutions Inc., Surrey EnStar Air Conditioning Inc., Richmond Exteriors Plus, Kelowna First Choice Sunroom Ltd., Kelowna Fitwells For Women, Coquitlam Fuzion Tek Hair Studio, New Westminster Gentleman Jim’s Limousine Service, Surrey Gismondis, Abbotsford Global Training Services, Vancouver Great Canadian Oil Change Ltd., Coquitlam Gustafson’s Dodge Chrysler Jeep, Williams Lake H S S Wholesale, Abbotsford Imperial Parking Canada Corp., Vancouver InComm Canada, Richmond instantincomecash machine.com, North Vancouver InterAction Computer Entertainment Inc., North

Vancouver International Moves Ltd., New Westminster KidZrock Childcare, Surrey Lewis Mechanical Group Ltd., Langley Little Shop of Beauty, North Vancouver Master Dry Cleaners, Langley NCO Financial Services Inc., Surrey Noir Lash Lounge Inc., Vancouver Nomorerack Retail Group, Vancouver Only Deals, Delta Onni Group Of Companies, Vancouver Oxygenergy Electronics, Richmond Rani Iron and Aluminum Works Ltd., North Vancouver Rollies.com, Vancouver Save on Black Top (2008) Ltd., Surrey Sitro Technologies Inc., Burnaby Son Motors Ltd., Surrey Spotlight Jewellers Inc., Abbotsford Sundance Pool Spa Ltd., Vernon Sunny International Services Corp., Vancouver Swiss European Spa, Vancouver Teaching Things, Surrey Top Wraps Inc., Surrey Tourism Whistler, Whistler Triple A Roofing Ltd., Surrey Two Small Men with Big Hearts Moving Co., Surrey Warren Audio, Maple Ridge The following companies have responded to the BBB subsequent to being published: Master Movers, Vancouver More Than Designs, Kamloops

Who’s Getting Sued These corporate writs were

filed with the B.C. Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court. Defendant: Alpha Aviation Inc. Box 11, 505 Burrard St., Vancouver Plaintiff: 0371984 B.C. Ltd.

Fresh. Local. Business. Daily news to your inbox. Sign up at www.biv.com

2900–595 Burrard St., Vancouver Claim: $500,000 for a lease extension related to the Boundary Bay Airport; $450,000 for the airport development; damages; and an order. Defendants: Lunny Design and Production Group Inc. and Shane Lunny and Jaana Wilkie 500–935 17th Ave., Calgary and 1365 Gordon Ave., West Vancouver Plaintiff: Canadian Broadcasting Corp. 181 Queen St., Ottawa Claim: $262,500 for an interactive multimedia display contract; $268,711 for damages; a declaration Lunny holds the funds in a constructive trust; and an accounting. Defendants: Microline Veneer & Forest Products Corp. and Eagle River Industries Inc. and Eagle Wood Fiber Inc. 4872A Lybarger Rd., Malakwa Plaintiff: C.H. Anderson & Associates Ltd. 200–879 Marine Dr., North Vancouver Claim: $242,933 for debt related to engineering services; and a builders lien for $242,933. Defendants: IQuest Performance Inc. and Adrian Block and Richard Matthews and Kimberley Froom and Kevin Kanerva and William Cheyne and Richard Carrick 39–3363 Rosemary Heights Cres., Surrey and 4800 Lakeshore Rd., Kelowna and 5247 River Rd., Delta and 189 Glenmore Rd., Kelowna and 555 Knowles Rd., Kelowna and 5380 Lakeshore Rd., Kelowna and 3319 140A St., Surrey Plaintiff: Bank of Montreal 1600–925 W. Georgia St., Vancouver Claim: $210,519 against IQuest for debt; $150,000 against Block, Cheyne, Matthews, Kanerva and Froom; $42,116 against Carrick. Defendant: Neelco Construction (1986) Inc. 1500–13450 102nd Ave., Surrey Plaintiff: Surespan Structures Ltd. Box 48600, 1200–200 Burrard St., Vancouver Claim: $197,342 for debt related to a supply contract for bridge work; $146,882 for extra labour; and damages for delay. Defendant: Walter Melnyk Address unavailable Plaintiff: Brian J. Shpak C.A. 650–1188 W. Georgia St., Vancouver Claim: $170,000 in debt for business advice related to a hotel purchase; and damages for breach of contract. Defendants: Pink Blossom Florist Inc. coba Pink Lotus and Satinder

Steven Dhillon 403–609 Granville St., Vancouver and 7328 145A St., Surrey Plaintiff: Telefora Canada Inc. 250 Howe St., 20th floor, Vancouver Claim: $153,133 for debt related to a subscription agreement for floral products. Defendants: Alex B. Taskumis and Patrick Corsi dba Q4 AL Centro Restaurant and Q4 Group Holdings (Richards Street) Ltd. and 0682990 B.C. Ltd. formerly known as Millennium Robson Properties Ltd. 12280 Ewen Ave., Richmond and 4180 St. Paul’s Ave., North Vancouver and 780 Richards St., Vancouver and 1600–925 W. Georgia St., Vancouver and 1500– 1055 W. Georgia St., Vancouver Plaintiff: Pacific Restaurant Supply Inc. 700–595 Burrard St., Vancouver Claim: $107,741 in the form of a declaration against the lands for restaurant equipment; and an order. Defendants: Macquarie Mushroom Farm Ltd. and Henry Yu Chang Lau and Marina Yuk Chen Lee and Jane Doe and John Doe Addresses unavailable Plaintiff: B.C. Hydro and Power Authority 333 Dunsmuir St., Vancouver Claim: $104,302 for electricity diversion related to a marijuana grow-op; and damages. Defendants: John Wynnyk and Steve Wynnyk and Kenneth Buckles 23965 Kanaka Creek Rd., R.R. #1, Maple Ridge and 26757 100th Ave., Whonnock Plaintiff: Premier Bandwheel & Equipment Ltd. 7674 Garrett Dr., Delta Claim: $63,200 for materials related to land improvements. Defendants: Kitov Resources Ltd. and Rod Salfinger and Gavin Robertson and John McCordic 4360 Agar Dr., Richmond and 218–3388 Rosemary Heights Cres., Surrey and 3310 Apex Pl., North Vancouver Plaintiff: Joda LLC 1350 Eldbridge Payne Suite 208, Chesterfield, MO Claim: $64,568 for debt related to a Nevada judgment. Defendant: Evidencepix Inc. Address unavailable Plaintiff: Kulwant Malhi aka Kal Malhi 4873 Delta St., Delta Claim: $50,000 order for a loan. Defendant: Plaza 88 Developments Ltd.

100–1455 W. Georgia St., Vancouver Plaintiff: Northwest Atlantic (BC) Broker Inc. 19th floor, 885 W. Georgia St., Vancouver Claim: $44,179 for services related to a lease agreement. Defendants: Silvermere Forest Products Inc. and John Wynnyk and Steve Wynnyk 9067 Church St., Fort Langley Plaintiff: NDF Enterprises Ltd. 300–350 Lansdowne St., Kamloops Claim: $40,160 for debt for land redevelopment; and a builders lien for $40,160. Defendant: Western Seed & Erosion Ltd. 200–4769 222 St., Langley Plaintiff: AgroSeed Marketing Inc. 1000–840 Howe St., Vancouver Claim: $40,115 for grass seed products. Defendants: Anna Clark and Eddy Philomena and Theodor Bosman, as executor of the will of David Allen King, deceased 8 Montizambert Wynd, West Vancouver Plaintiff: Camelot Construction 700–555 Burrard St., Vancouver Claim: $22,839 for property renovations; and a builder’s lien for $22,839. Defendants: Amcon Construction Ltd. formerly known as Take Over Machinery Ltd. and Anton Hans Bader 230–19150 Lougheed Hwy., Pitt Meadows and 19629 McNeil Rd., Pitt Meadows Plaintiff: Roynat Inc. 300–666 Burrard St., Vancouver Claim: $20,561 for goods and equipment; and damages. Defendants: KLM Industries Ltd. and Tymatt Contracting Ltd. and Madden Enterprises Ltd. dba The Madden Group of Cos. 25th floor, 700 W. Georgia St., Vancouver Plaintiff: Keystone Supplies Co. 1–11090 River Rd., Richmond Claim: $19,176 for freight goods. Defendant: Tim Powers 447 Karp Crt., Coquitlam Plaintiffs: JDP Construction and Josip Tolzmann 280–666 Burrard St., Vancouver Claim: $9,135 for a construction contract; damages for breach of the contract; damages for defamation; and an injunction. Defendants: Sococ Trading Ltd. and Min Ji Wu 63 Kenilworth Gate, Markham, ON and 138– 11180 Coppersmith Pl., Richmond

Plaintiff: Roynat Inc. 300–666 Burrard St., Vancouver Claim: $8,869 for an equipment lease; and damages. Defendants: Canada HD Int’l Investment Group Corp. and Hong Zhang and Sijing Xie 7239 Barnet Rd., Burnaby Plaintiff: Sen Western Wholesale Lumber Ltd. 5331 Cordova Bay Rd., Victoria Claim: $3,806 for labour and materials; and a builders lien for $3,806. Defendants: Republic Bicycles Inc. and John Victor Hurford and Armand Hurfurd Box 1850, 201–1365 Pemberton Ave., Squamish and 1444 Maple Cres., Squamish and 1–41340 Government Rd., Brackendale Plaintiff: Alex Leonard Royston Hinkson, an infant, by his litigation guardian, Lara Rachael Hinkson 4–1233 Main St., Squamish Claim: Rescission of a contract to purchase a bicycle; return of the cash deposit; and damages. Defendant: Neel Kamal Sharma 15982 80A St., Surrey Plaintiff: Churchill Armoured Car Service Inc. 410–1333 W. Broadway, Vancouver Claim: Damages for conversion of funds that were to be placed in ATMs by an armoured car guard; compensation for breach of fiduciary duty, an enquiry and accounting; payment of the monies found owed to be due; damages; and an injunction. Defendant: City of Surrey 800–666 Burrard St., Vancouver Plaintiff: Dan Bottrill 700-1006 Beach Ave., Vancouver Claim: Damages for wrongful dismissal from a position as deputy city manager. Defendants: JLK Projects Ltd. and Hamza Demolition Ltd. 16639 62A Ave., Surrey and 11640 Aztec St., Richmond Plaintiff: The Owners, Strata Plan LMS2185 5735 Hampton Pl., Vancouver Claim: Damages for a sprinkler head that was damaged and caused flooding during the course of rehabilitation work. Defendants: Hollingsworth Homes Ltd. and Re/Max Lionel Lorence and Russell Hollingsworth and Lionel Lorence 2410 Marine Dr., West Vancouver and 200– 1455 Bellevue Ave., West Vancouver Plaintiff: Forbes Cooper


Law 25

August 16–22, 2011  Business in Vancouver

Trouble

Lawsuit of the week

B.C. company launches lawsuit over helicopter flight records Helicopter journey logs are at the heart of a lawsuit that has pitted B.C.-based Heliproducts Industries Ltd. against Medford, Oregon-based S.O.F. Air, Inc. and its president, Ken Batten. Heliproducts filed suit against the two defendants in B.C. Supreme Court July 19. According to the statement of claim, the plaintiff and S.O.F. entered into a one-year contract for S.O.F. to lease a Eurocopter AS350. Under the terms of the lease, S.O.F. would pay US$768 an hour for the number of operating hours recorded in the aircraft journey logbook. The court document alleges that it was “an express or implied term” of the lease that S.O.F. would accurately record the number of operating hours of the aircraft, as indicated on the helicopter’s Hobbs meter, in its journey log. The plaintiff claims S.O.F. neglected and failed to return the journey log to the plaintiff and instead returned a redacted copy of the log, on which aircraft operating hours were redacted or blacked out. When Heliproducts complained about the redacted journey log, the court document alleges that S.O.F. and Batten provided the plaintiff with a fraudulent journey log, “in which they purposely understated the operating hours of the aircraft with a view to deceiving the plaintiff as to the number of operating hours of the aircraft.” The suit also alleges that S.O.F. didn’t return the aircraft to the plaintiff in the same condition it was received in, necessitating $44,457 in repairs. Heliproducts is suing for general and special damages, a declaration that the plaintiff is entitled to the return of the journey log and an order requiring that it be returned. At press time, no statement of defense had been filed. None of these allegations has been proven in court.

4989 Meadfeild Wynd, West Vancouver Claim: Damages for negligent misrepresentation related to a property sale, in which the square footage was less than advertised and sold for.

Plaintiffs: 0915406 B.C. Ltd. and 388028 B.C. Ltd. 220–1501 W. Broadway, Vancouver Claim: An order setting aside the sale of the property related to the Punjab Cloth House; an order; and damages.

Defendants: Ansell Construction Ltd. and TDM Consulting and Associated Engineering (B.C.) Ltd. and The City of Kelowna 200–270 Hwy. 33 W., Kelowna and 3948 Gallaghers Parkway, Kelowna and 1000–840 Howe St., Vancouver and 1435 Water St., Kelowna Plaintiffs: The Owners, Strata Plan KAS 1506 and Gary Richards and Sharon Parker and Lynn Gotro and Heidi Mitchell 133 Wyndham Cres., Kelowna Claim: Damages for construction work that damaged property.

Defendant: EPI Environmental Products Ltd. 801–1788 W. Broadway, Vancouver Plaintiff: Omniplast Inc. 5350 rue Ramsay, SaintHubert, QC Claim: Damages for breach of contract related to additives for biodegradable plastic bags.

Defendants: Linda Choy and Marianna Chu 7638–7642 Cambie St., Vancouver Plaintiffs: Luxor Homes & Developments Ltd. and 0780012 B.C. Ltd. 7320 Lindsay Rd., Richmond and 8640 Minler Rd., Richmond Claim: Performance of the land sale; a declaration the plaintiffs hold a purchaser’s lien.

Defendants: 0768723 B.C. Ltd. and Kelowna Mountain Development Services Ltd. 200–1465 Ellis St., Kelowna Plaintiffs: David Martens and Lorraine Martens and Cecil William Goodrich and Vivian Goodrich and Daniel Gleeson and Marjorie Ellen Duff and Emily C.W. Fung and B2B Trust Addresses unavailable and 130 Adelaide St. W., Toronto Claim: A declaration the transfer is null and void or is a fraudulent preference related to insolvent circumstances and debt; and orders.

Defendants: Vancouver Punjab Cloth House Ltd. and 0834618 B.C. Ltd. and Jatinder Singh Minhas Addresses unavailable

Defendants: Victory Motors (Abbotsford) Ltd. and Actton Super-Save Gas Stations Ltd. and Shell Canada Ltd. and Phil Van Enterprises Ltd.

33258 South Fraser Way, Abbotsford and 20275 2nd Ave., Langley Plaintiff: Jansen Industries 2010 Ltd. 33261 South Fraser Way, Abbotsford Claim: An order the defendants pay damages for property contamination; and damages. Defendant: Amir Yashar Shoolestani 1906–58 Keefer Pl., Vancouver Plaintiff: Solterra Dolce Ltd. Partnership 1000–840 Howe St., Vancouver

Claim: Specific performance of the strata purchase agreement and damages, or, a declaration the plaintiff is entitled to the $149,980 deposit, or, general damages for breach of contract. Defendants: Mountain Air Industries Ltd. and Ronald Sim dba 21 Degrees – Mountain Air 687 E. 20th Ave., Vancouver and 9144 Emerald Dr., Whistler Plaintiffs: Geoffrey Paul Muge and Brenda Jones 1000–840 Howe St., Vancouver Claim: Damages for a water

pipe that froze, cracked and caused damage. Defendants: Bob Prokopetz dba Castle Home Improvements 10647 Chestnut Pl., Surrey Plaintiff: Thomas Millar and Linda Millar 1912 Inglewood Ave., West Vancouver Claim: Damages for breach of contract and negligence related to a roofing contract. Defendants: Anthony John Brogan and Leida-Marie Brogan and Christina Ann Brogan, deceased, Joseph Freddie Gagnier

and Ada Elizabeth Gagnier Address unavailable Plaintiff: Abstract Developments Inc. 1626 Garnet Rd., Victoria Claim: Damages for property contamination. Defendant: E-Pro Enterprises Inc. 4599 Chatterton Way, Victoria Plaintiff: Abstract Developments Inc. 1626 Garnet Rd., Victoria Claim: Damages for breach of an environmental assessment agreement. •

Giving Guide

2012

Regional PhilanthRoPic oPPoRtunities

Publication Date October 27, 2011

Promote your corporate giving philosophy and the non-profits you support to B.C.’s business leaders Business In Vancouver Media Group, publishers of Business in Vancouver newspaper, Western Investor and more than a dozen business-related magazines, are delighted to launch an exciting new print and digital publication called Giving Guide – Regional Philanthropic Opportunities. This informative glossy, full-colour magazine will showcase the diverse range of non-profit associations and the organizations that so generously support them here in B.C. Giving Guide provides both sponsors and non-profits with a great opportunity to share their story with the region’s business leaders. Non-profits play a huge role in improving the quality of life of residents throughout the region. This new essential reference tool – with yearlong presence in print and online will showcase a nonprofits compelling mission, progress, governance and many other initiatives and encourage other business leaders to support non-profit associations in our region.

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A guide to British ColumBiA's philAnthropiC Community • Non-profits • Foundations • Cultural organizations

Call today: For more information please contact Katherine Butler at 604-688-2398 or kbutler@biv.com.


26

For the record

People on the Move Email your For the Record

information to: fortherecord@ biv.com. Please include a highresolution, colour headshot where possible.

•Accounting

Nancy Harris has been appointed vice-president and general manager of Sage Simply Accounting. She was previously COO at ESO Solutions and Asure Software.

•Aerospace

John Graber ha s been appointed president, helicopter services, at CHC Helicopter, replacing interim president Scott Pinfield. Graber was previously president of ABX Air and MRO AAR Aircraft Services and general manager and senior vice-president of operations at ATA Airlines.

•Education

Greg Anderson has been appointed dean, applied research, at the Justice Institute of BC, replacing Carol Amaratunga, who will continue as research associate. Anderson was previously chair and professor of kinesiology and physical education at the University of the Fraser Valley.

•Finance

Paula Martin and Linda Morris have been appointed adviser to CEO Tamara Vrooman; and senior vicepresident of marketing and

communications, respectively, at Vancity. Martin was previously senior-vice president of member engagement at Vancity. Morris was previously CEO of the Canadian Breast Cancer Foundation, BC/Yukon, deputy minister in the public affairs bureau for the BC Government, vice-president, communications and community engagement, for Vancouver Coastal Health and director of public affairs for the Vancouver Port Authority.

•General

Scott McFie and Martin Moran have been appointed director, commercial business development, Western Canada, and director of business development, Western Canada, respectively, at FirstOnSite Restoration. McFie was previously senior vice-president, international business development and sales, at ClaimsPro Inc. Moran was previously a leader and adjuster with Cunningham Lindsey. Tim Courtney has been appointed vice-president of commercial insurance at ICBC. He was previously vicepresident at Markel Insurance and vice-president of underwriting at Zurich Canada.

•Hospitality/

Tourism/Convention

Sebastien Le Goff has joined the operations management team at Cactus Restaurants Ltd., where he will oversee the service and bar operations at Cactus Club restaurants. He

Daily business news at www.biv.com  August 16–22, 2011

Paula Martin and Linda Morris are adviser to CEO Tamara Vrooman, and senior vice-president of marketing and communications, respectively, at Vancity

Scott McFie and Martin Moran are director, commercial business development, Western Canada, and director of business development, Western Canada, respectively, at FirstOnSite Restoration

was previously general manager for db bistro moderne, director of operations and beverage manager with Uva Wine Bar and Cibo Trattoria, director of operations and wine director at Lumiere and Feenies and restaurant and wine director at Cin Cin. 

and Rodinia Lithium Inc.

•Media

Kerry MacDonald has joined Business in Vancouver as advertising sales manager. He was previously regional manager at Shaw Cable.

•Resources

Eira Thomas has resigned as director of Stornoway Diamond Corp. and chair of its board. She was a founder of the company and previous CEO. Tony Walsh has been appointed chair. He is president, CEO and a director of Sabina Gold & Silver Corp.

and is a director of Stornoway. He was previously president and CEO of Miramar Mining Corp. Catherine Feore has been appointed vice-president, marketing, at Adroit Resources Inc. She was previously national expert in urban policy to the European Commission, head of office for Greater Manchester and principal at Orpheus Public Affairs. James Cross has resigned from the board and as vice-president, corporate development. Ryan Ptolemy has been appointed CFO of United Silver Corp. Ptolemy is CFO and corporate secretary of Aberdeen International Inc. and CFO at Dacha Strategic Metals Inc., Alder Resources Ltd., Belo Sun Mining Corp.

Anthony Floyd and James Chapman have been appointed to the board of Expedition Mining Inc. Floyd is a director of Inca Pacific Resources Inc. and Toro Resources Corp. and was previously president of Inca Pacific and a founding member of Lumina Copper Group. Chapman is a director of Golden Cross Resources. Paula Rogers has been appointed to the board and named chair of the audit committee at Timmins Gold Corp. She is CFO of Castle Peak Mining Ltd. and was previously vice-president and treasurer, at Goldcorp Inc. and treasurer of Wheaton River Minerals Ltd. Augusto Baertl has been

appointed an adviser to Luna Gold Corp. He was previously managing director general at Compania Minera Milpo SA and CEO of Compania Minera Antamina.

Hats Off Business in Vancouver welcomes submissions from local small businesses and large corporations alike that demonstrate examples of corporate philanthropy and community involvement in the Vancouver area. High-resolution images are also welcome. Sirona Biochem Corp. donated $25,000 to the Canadian Diabetes Association’s proud supporter program. Pharmasave and Chevron donated $21,000 and $15,000, respectively, to the Canadian

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European model shown. Features and equipment may vary in Canada. MSRP of a 2011 BMW 535i xDrive All-Wheel Drive with Executive Package starts at $70,300. Lease rates are those offered by BMW Financial Services Canada only on approved credit (OAC). *Lease rate of 4.9% available for up to 48 months. Lease example based on $842 a month for 48 months. Down payment or equivalent trade of $8,650. Freight and PDI and other additional fees are extra and due on signing. HST and licence fee are extra. Total obligation is $49,068. The residual value of the vehicle at end of term is $30,229. Annual kilometres limited to 24,000; $0.15 per excess kilometre. Excess wear-and-tear charges may apply. Additional province-specific fees, taxes, and charges may be extra. Retailers are free to set individual prices and charge administration fees, which may change the APR or the price of the vehicle. Offer expires August 31, 2011. Delivery must be taken by August 31, 2011. Offer requires Retailer participation. Offer is subject to availability and may be cancelled or changed without notice. Certain conditions apply. See your local BMW Retailer or vancouverretailers.bmw.ca for full details. †Certain limitations apply; see Retailer for details. ©2011 BMW Canada Inc. “BMW”, the BMW logo, BMW model designations and all other BMW related marks, images and symbols are the exclusive properties and/or trademarks of BMW AG, used under licence.


for the record 27

August 16–22, 2011  Business in Vancouver

Greg Anderson is appointed dean, applied research, at the Justice Institute of BC

Kerry MacDonald joins Business in Vancouver as advertising sales manager

Nancy Harris is vice-president and general manager of Sage Simply Accounting

Tim Courtney is vice-president of commercial insurance at ICBC

Loyd McNicol, director, Lohn Foundation, and Jackie Murray, catheterization lab manager, Royal Columbian Hospital

Steve Thompson, marketing and merchandising manager, Pharmasave; and Rory Green, revenue development co-ordinator, Canadian Cancer Society, B.C. & Yukon

Cancer Society. Money was raised during the society’s Daffodil Campaign in April. Coast Capital Savings Credit Union donated $15,000 to Junior Achievement of British Columbia in support of teaching young people financial literacy through business education programs. The Chris Spencer Foundation donated $5,000 to Big Sisters of BC Lower Mainland in support of the Go Girls! Healthy Bodies, Healthy Minds program, which encourages physical activity, healthy eating and the development of a positive self-image among girls aged 11 to 14.

Careers

• www.employmentinvancouver.com • E-mail: employpaper@biv.com • Tel: 604-688-8828 • Fax: 604-669-2154

Work With us & groW a career Glacier Media Group is growing. Check our job board regularly for the latest openings: www.glaciermedia.ca/careers

Legal Assistant The Tsawwassen First Nation has an exciting opportunity for a full time regular Legal Assistant to assist with litigation and solicitor files, prepare documents and other correspondence, filing, arrange meetings and travel or conference attendance, prepare expense reports, access and monitor document data bases and collate documents, maintain “bring-forward” system, and other duties as required. Requirements: Legal Assistant Certificate, 2-3 years experience, working knowledge of Word 7, Excel, Publisher, Summation or Ringtail software, teamwork skills, familiar with “bring-forward” systems, and able to work 8:30 – 4:30 p.m. Submit cover letter and resume by August 29, 2011, to: Saira Bradley Human Resource Manager 1926 Tsawwassen Drive Tsawwassen BC, V4M 4G2 Fax: 604-943-9226 E-mail: sbradley@tsawwassenfirstnation.com

The Lohn Foundation donated $5,000 to Royal Columbian Hospital to help fund a multipurpose suite at RCH. •

Short-listed applicants will be contacted for interview.

VP, Corporate Services/CFO BC Safety Authority

T

All qualified applicants are encouraged to reply, in confidence, by quoting file #14468 to:

search@janetdavid.com We thank and acknowledge all applicants and will proactively contact those selected for interviews.

+ asso ciates in c.

he BC Safety Authority (BCSA) delivers one of the most comprehensive, cost-recovered technical public safety systems in North America. As the Province’s delegated, non-profit authority, the BCSA mandates the safe installation and use of technical equipment. With a commitment to collaboration, fairness, consistency and a risk-managed approach to regulatory oversight, the BCSA promotes safety through research, education, issuance of permits and licenses, development of policies and safety standards, and the monitoring and enforcement of compliance to safety standards across a wide variety of industries and sectors. The BCSA maintains a central office in New Westminster and delivers services from 28 regional and community offices located throughout the province. Recognized as one of the top 100 Employers in Canada, the BCSA employs approximately 300 persons. The BCSA wishes to attract a proven leader to the position of VP, Corporate Services/CFO. Based in New Westminster, this role reports to the CEO and works collaboratively with other members of the executive team, the Board of Directors and a wide array of external stakeholders. The position guides a team of five direct reports. The role is actively involved in formulating and executing corporate strategy and has key accountabilities for risk management, financial forecasting, planning and reporting, asset management, budgets and controls, and information technology. The ideal candidate is a university graduate and strategic financial professional with a recognized accounting designation and at least 10 years of progressive management experience in complex organizations. The candidate must have experience in leading change and in working with Finance and Audit Committees of Boards of Directors. The candidate must have a track record of providing effective and integrative leadership in asset and risk management, finance, management and external reporting, financial controls, asset management and information systems. A flexible thinker with the ability and courage to contribute and to respectfully confront to move issues forward with transparency, the ideal candidate is a decisive team player who enjoys coaching and mentoring others. The BCSA offers competitive compensation and benefits and an engaging culture. For more information about the organization, please visit www.safetyauthority.ca.


28

Comment

Daily business news at www.biv.com  August 16–22, 2011

letters

Clean coal and more public relations fiction If you’re like me, then you’ve probably seen one too many of those TV ads that talk about how “clean coal” is supposedly powering America.  In truth, there’s no such thing as “clean coal” and no homes or businesses in the United States or Canada are being powered by “clean coal.” Environmental experts from around the world all agree that coal is the dirtiest fuel source one can use to produce electricity.  Not only is coal the dirtiest of all fuels, it’s also the biggest source of greenhouse gas emissions like carbon dioxide, which cannot currently be captured and stored in an even remotely cost-effective way. So until the emissions and pollutants generated by burning coal can be captured and stored safely, which is looking more and more doubtful every day, no one should be claiming that coal is a clean energy source because it is not even close to being clean. Sandra Robinson, Maple Ridge

City bike-lane report doesn’t go far enough to protect small businesses I’m choking back the urge to say “I told you so” to Vancouver city councillors who thought that taking out parking, restricting turns and erecting concrete barriers to create a bike lane on Hornby Street would not hurt businesses. The bike-lane impact study commissioned by the city found merchants on Hornby have experienced a sales decline of 10%. The total loss in sales attributed to the Hornby and Dunsmuir bike lanes is $2.4 million. It cost about $4 million to build the lanes. The report puts a rosy spin on the losses by referring to them as “moderate.” How many people would describe a 10% hit to their incomes as “moderate”? The report points out that there were some “hot spots” where businesses fared worse. How much worse is left to the imagination. The report includes some sensible recommendations. It suggests the city look at flexible approaches to sharing road space such as using automatic bollards that can be raised and lowered to establish a separated bike lane or to accommodate parking, depending on the circumstances. Better consultation with affected parties before and after traffic changes are made is another suggestion. As sensible as these suggestions are, the report sidestepped the most important question: what do you do when a public project has a serious negative impact on someone’s livelihood? While each Vancouver taxpayer footed a bit of the $4 million to build the lanes, is it fair to ask a small group to pony up a significant portion of their take-home pay? The report goes as far as suggesting “that mitigation strategies be decided before construction begins.” That’s not far enough. I have a challenge for the mayoral candidates for Vancouver: be bolder than this report. Develop a set of guidelines to be followed for projects that disrupt business activity for more than a month. The guidelines should include estimating the costs to small-business owners and compensating them for a year’s worth of sales losses or paying for moving costs. In other words, develop a plan that takes into account the full costs of these projects instead of loading much of the burden onto hardworking men and women who run small businesses and have families to support. Seattle had a great model for its light-rail construction that included similar provisions. Mayor Gregor Robertson is familiar with it because he suggested it would have been the right approach when Cambie businesses suffered during construction of the Canada Line. How would such a model have changed things on Hornby? To keep costs down, council would have had a much stronger incentive to consider alternatives that would not have had such big impacts on business – a residential street, a Minneapolis-style lane that preserved parking and put the bike lane between the curb and the parked cars or the bollards suggested in the bike-lane impact study. Some will argue that compensating small business is too expensive. If that’s true, it suggests the bike lanes weren’t really worth it in the first place. Laura Jones, senior vice-president, research, economics and Western Canada, Canadian Federation of Independent Business

What’s your opinion? BIV welcomes readers’ opinions. All letters, including those sent by e-mail, must include the author’s name, address and daytime telephone number. Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Fax: 604-688‑1963. E-mail: news@biv.com. We reserve the right to edit for brevity, clarity and legality.

Cartoon by Rice

Public Offerings

Timothy Renshaw Self-government no guarantee of economic self-sufficiency

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he First Nations enterprise engine has been jump-started in various areas of the country, but there are still miles to go before it’s firing on more than a couple of cylinders. Bright spots abound. The most recent examples include the Kwantlen First Nation’s launch of the Seyem’ Qwantlen Group of Companies (“Rise in aboriginal enterprise” – issue 1132; July 5-11) and last week’s BC First Nations Leadership Council announcement of a strategy to cultivate stronger relationships with China. But not all is clear skies on the native business frontier. Native society, especially on reservations, needs to undergo a major cultural shift from dependency to self-reliance if the free enterprise seeds sown now are to bear more than occasional fruit. That’s not going to be easy. A recent Frontier Centre for Public Policy report underscores that reality. The Nisga’a Treaty, Self-Government and Good Governance: the Jury is Still Out assesses the impact of the controversial agreement B.C. signed with the Nisga’a 13 years ago. It claims to be the only such assessment thus far of how the treaty and its allocation of self-government to the band has affected social and economic realities in what has aspirations to be an independent country within Canada. It’s not surprising that no

measurement of the treaty’s impact has been done elsewhere. Management accountability, after all, remains in short supply on too many of Canada’s native reservations. As the study quotes former BC Liberal leader Gordon Gibson: “the Nisga’a treaty is held out as an example of the right way to settle Indian claims, and yet we simply do not know how it is working after seven years and cannot trust any of the three governments involved to tell us of problems.”

As with many other native bands in Canada, the Nisga’a nation needs help in training its people in business basics The Frontier Centre study mines much of its information from extensive interviews with Nisga’a band members. Insights from interviewees include misgivings about the new Nisga’a government and the continuation of old-style tribal nepotism that inter-marries bloodlines, business and politics. The study also found what Clint Davis, CEO of the Canadian Council for Aboriginal Business, previously pointed out to Public Offerings (“Job 1 on native reserves: Build business-management skills” – September 28-October 4, 2010; issue 1092). As with many other

native bands in Canada, the Nisga’a nation needs help in training its people in business basics. Without those, it will remain ill-equipped to take advantage of the opportunities in resource development and other enterprise that can free its members from what author and Tsimshian Nation member Calvin Helin (Dances with Dependency) calls Ottawa’s welfare trap. Concerns were also expressed about “the preparedness of Nisga’a citizens for income taxation,” which is scheduled to come into effect in 2013. Tax freedom day everyday is apparently seen as a native birth right in Canada. But one of the report’s most unsettling revelations is Ottawa’s view that the Nisga’a will likely never be self-sufficient. According to the study’s conversations with the treaty manager for B.C. at Indian and Northern Affairs, self-sufficiency “may never be achieved.” “In practice,” write the study’s authors, “the federal government apparently lacks a written plan for self-sufficiency, and it did not conduct any risk assessments for the Nisga’a treaty.” That underscores the destructive dual-dependency factor in Canada’s native enterprise equation. If no one in a native band, especially the “independent” nation of Nisga’a, is ever ultimately going to be held accountable for ensuring its people become economically selfsufficient, it will never happen. That’s a grim prospect for more than just Canada’s natives. • Timothy Renshaw (trenshaw@biv. com) is the editor of Business in Vancouver. His column appears every two weeks.

President and Interim Publisher: Paul Harris; Editor: Timothy Renshaw; News Features Editor: Baila Lazarus; Editorial Proofreader: Noa Glouberman; Online Editor: Nelson Bennett; Staff Writers: Nelson Bennett, Richard Chu, Jennifer Harrison, Glen Korstrom, Joel McKay, Jenny Wagler; Art Director: Randy Pearsall; Photographer: Dominic Schaefer; Production Manager: Don Schuetze; Production: Rob Benac, Carole Readman, Natalie Reynolds, Soraya Romao, Annette Spreeuw; Director Sales and Marketing: Cheryl Carter; Marketing & Events: Azadeh Hollmann, Paige Millar; Display Advertising Sales: Janice Frome, Blair Johnston, Michele MacKenzie, Pia Tomlins, Chris Wilson, BIV Magazines Publisher: Paul Harris; Editor: Naomi Wittes Reichstein; Sales Manager: Joan McGrogan; Advertising Sales: Lori Borden, Corinne Tkachuk; Administrator: Katherine Butler; Senior Researcher: Anna Liczmanska; Research/Verification: Caroline Smith; Director, Audience Development: Todd Babick; Subscription Sales Supervisor: Navreet Gill; Circulation Manager: Veera Irani; Subscription Sales: Gerard Veeneman; System Administrator: Les Valan; Accounting: Denise Moffatt; Credit Manager: Yvonne Posch Business in Vancouver is published by BIV Media Limited Partnership at 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Telephone 604-688-2398; fax 604-688-1963—For reprints: Veera Irani 604-608-5115 E-mail addresses: subscribe@biv.com, ads@biv.com, news@biv.com, letters@biv.com TWITTER@BIZINVANCOUVER • Www.biv.com • www.bivinteractive.com


comment 29

August 16–22, 2011  Business in Vancouver

Public Eye

Sean Holman Government under fire for spending over $100,000 to spiff up spin website

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he provincial government is on track to spend more than $100,000 to renovate the website it uses to put its public relations material onto the Internet. A citizens’ services ministry spokesman defended the renovations as being part of the Clark administration’s commitment to open up government, noting they came in “well under budget.” But New Democrat House leader John Horgan is blasting that project as an unnecessary expenditure. The renovated site – which was launched in mid-March – is supposed to provide reporters with a “one-stop” 24-7 shop for the government’s “news, feature stories, videos, audio, photos, live-streaming and social media.” According to records obtained by Public Eye via a freedom of information request, Pennsylvania-based After6 Services LLC received $55,441 to set

up the software powering the new “Digital Hub BC Newsroom.” Another $43,085 will go to Liberal-connected Backbone Technology Ltd. That includes the $16,685 the company has already received to design the hub and another $2,000 per month to host the site.

“Quite honestly, the fact they’re characterizing this as in the interest of families is just absolutely laughable” – John Horgan New Democrat House leader

Backbone Technology is the same firm that has worked for the BC Liberals since 2001, setting up a private intranet for its executive as well as the party’s website. The company made news

what government is doing to serve them,” while responding to the media’s “e volv i ng ne w sro om requirements.” In response Horgan said, “Quite honestly, the fact they’re characterizing this as in the interest of families is just absolutely laughable.” He added, in a reference to Premier Christy Clark’s ubiquitous commitment to put families first, “It speaks to taking government messaging to the level of the absurd. And it’s clearly absurd to say that families are going to want to know what obscure cabinet ministers are saying while spending public money trying to curry favour. “I think if I had $100,000, I would be putting it toward autism services, I would be putting it toward a whole host of programs that have been cut or eliminated by BC Liberals rather than finding ways to make them look family friendly on the Internet.”

last month when it was disclosed the government had secretly given it a $52,746 contract to develop its harmonized sales tax (HST) information website. Li ke t he HST work, Backbone’s digital hub contract would usually have been awarded following a competitive process. But internal government guidelines allow that process to be circumvented if only one contractor is qualified to do the work, which is what happened in this case. The citizens’ services spokesman also said Backbone got that work, which started in early March, because the government didn’t have the time to go through a competitive process. And, in any case, the company “delivered this project on time and to a high standard of quality.” The spokesma n sa id the new website will help “families and businesses … quickly find information, photos and videos about

BUS NESS LEADERS TOURNAMENT

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As for the government’s decision to directly award a contract to Backbone Technology, Horgan stated, “If you’re committed to open tendering processes then timelines have to be established so you can have open tendering processes instead

of using timelines as an excuse to circumvent.” • Sean Holman (editorial@ publiceyeonline.com) is editor of the online provincial political news journal Public Eye (www.publiceyeonline. com).

daily online edition

BUSINESS TODAY Canada needs simpler taxes, CGA-Canada says Canada’s overly complex tax system needs to be simplified, according to the Certified General Accountants Association of Canada (CGA-Canada). The association’s recently released study – The Need for Tax Simplification: A Challenge and an Opportunity – highlights ways the current tax system

is costing consumers, businesses and the economy both time and money in compliance requirements. Few attempts to simplify the tax system have been made since its creation in 1917, and the study points to the need for a review of both the personal and corporate income tax systems. Wednesday, August 10

Full stories and other local business news at www.biv.com/businesstoday Daily business news direct to your inbox! Sign up at www.biv.com/newsletters

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Registration now open! J

oin us on August 23 for the inaugural Business Leaders Golf Tournament presented by Business in Vancouver and Association for Corporate Growth (ACG) Vancouver Chapter. This full day event includes golf, networking reception and dinner. Don’t miss your opportunity to play golf with senior executives, dealmakers and professionals involved in corporate growth, development, and mergers and acquisitions.

When: August 23, 2011

Where: University Golf Club – 5185 University Blvd. Price: $175 for BIV subscribers, ACG and TMA members $200 for non-subscribers/members

Part proceeds go to Powerchair Football Canada, www.powerchairfootballcanada.com

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30

Datebook

Daily business news at www.biv.com  August 16–22, 2011

Guarantee the publication of your listing for $50 per issue (plus hst). 604-608-5189 or datebook@biv.com

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Professor Stephen Toope September 14, 2011, 11:45 AM: Professor Stephen Toope, President & Vice-Chancellor University of British Columbia. $69 members and guests/$96 future-members (+HST). The Fairmont Waterfront, Waterfront Ballroom, 900 Canada Place Way. Vancouver, BC. reservations@

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assessment in the product development process . $ 25 members/$35 non-members. Hampton Inn & Suites, 19500 Langley Bypass (Route 10). Surrey. Kimberly Hall: 604-7137809, kimberly.hall@cme-mec. ca. http://bc.cme-mec.ca/. The World MoneyShow Vancouver September 19, 2011, 8:30 AM: Learn how to best position your portfolio for profit in 2011 and beyond. As this new era of investing unfolds, smart investors know it’s imperative to stay informed and educated. Free admission. Vancouver Convention Centre, 1055 Canada Place. Vancouver. 800-9704355. http://www.moneyshow. com/tradeshow/vancouver/ w o r l d _ m o n e y S h o w /m a i n . asp?scode=023199. APEGBC Annual Conference & AGM October 13, 2011, 8:00 AM: Join us as we celebrate accomplishments in the professions of engineering and geoscience. A s BC ’s premiere engineering and geoscience event, the Annual Conference and AGM are sure to offer participants valuable opportunities to network with leading professionals in these industries. Prices vary. Delta Grand Okanagan Resort and Conference Centre. Kelowna, BC. Shirley Chow: 604-412-4865, ac2011@apeg.bc.ca. http://www. apeg.bc.ca/ac2011/.

Courses, Workshops, Seminars SharePoint 2010 as a Records Management and Retention Solution Au g us t 19, 20 11, 1: 30 PM: Attend a free seminar on how SharePoint 2010 can be used for records management and retention. The presenter is Marcel Roy, SharePoint Specialist and Records Manager. Free. BCIT Downtown Campus, RM 281, 555 Seymour Street. Vancouver. pat@ tracrecords.ca. www.tracrecords. ca/events.

Canadian Securities Course (CSC) September 8, 2011, 8:00 AM: Be qualified to apply for licensing as a mutual funds salesperson. Sign up for the CSC at Ashton College. Contact an Admissions Adviser now. Ashton College. Vancouver. 60 4-89 9- 0803, info@ashtoncollege.com. www. ashtoncollege.com.

HR Metrics Benchmarking Service - Oct Demo & Overview October 28, 2011, 8:30 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. No charge. Online. 604-694-6946, lwhalley@bchrma.org. http:// www.bchrma.org/content/events/ ls/details.cfm?EventID=035-223.

Foundation in Sustainable Community Development September 15, 2011, 9:00 AM: This course addresses the confusion surrounding sustainability and presents the certificate’s vision of sustainable community development and related principles. $900. 515 W. Hastings St. Vancouver. Joshua Randall, 778-782-5254. http:// www.sfu.ca/city/course1popup. htm.

Sustainable Economics for the Real World November 4, 2011, 9:00 AM: This course provides an overview of the emerging field of sustainable economics, as well as the tools for building the business case for sustainability. $600. 515 W. Hastings St. Vancouver. Joshua Randall, 778-782-5254. http:// www.sfu.ca/city/course3popup. htm.

CTT+ Train the Trainer Course S eptember 19, 2011, 8:30 AM: Anybody who needs to train groups of people in an effective and efficient manner can benefit from this course. Perfect for those looking to show instructional presentation skills for their MCT designation. $995/ person. 555 Seymour Street. Vancouver. Bart Simpson: 888480-1629, bart@trab.com. www. trab.com.

Communicating Sustainability for Awareness, Accountability and Action N ove m b e r 25, 20 11, 9 :0 0 A M : T h i s c o u r s e p r ov i d e s tips and tools for effective communications practice and examines how sustainability is perceived by the public. $600. 515 W. Hastings St. Vancouver. Joshua Randall, 778-782-5254. http://www.sfu.ca/city/sust906. htm.

HR Metrics Benchmarking Service - Demo & Overview September 28, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo, Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma.org. http:// www.bchrma.org/content/events/ ls/details.cfm?EventID=035-252.

HR Metrics Benchmarking Service - Nov Demo & Overview N ove m b e r 30, 20 11, 9 :0 0 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma.org. http:// www.bchrma.org/content/events/ ls/details.cfm?EventID=035-253.

Applications in Sustainable Community Development September 30, 2011, 9:00 AM: Through field trips and presentations by sustainability project champions, you will explore the application of sustainability principles in a variety of programs, projects and business ventures. $600. 515 W. Hastings St. Vancouver. Joshua Randall, 778-782-5254. http:// www.sfu.ca/city/course2popup. htm.

HR Metrics Benchmarking Service - Jan Demo & Overview January 18, 2012, 9:00 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. Complimentar y. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma.org. http:// www.bchrma.org/content/events/ ls/details.cfm?EventID=035-254.

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Festivals Dances for a Small Stage 24 August 10, 2011, 8:00 PM: A wildly energized, cabaretthemed evening of cutting-edge choreography at The Legion on The Drive. Doors open at 7pm. 19+ only. Tickets: $20 cash at door. 2205 Commercial Drive. Vancouver. http://movent.ca.

Golf Tournaments T.I.P. Invitational Golf Tournament July 26, 2011, 11:00 AM: Swing! At the Sixth Annual Tourism Industry Partners (TIP) Invitational Golf Tournament. All proceeds from this event will foster future generations of tourism professionals through scholarships and bursaries to colleges and supporting organizations. Please see our website for prices. Fairmont Chateau Whistler Golf Club. Whistler. tipgolf@gmail.com. www.tipgolf.ca. Business Leaders Golf Tournament August 23, 2011, 12:00 PM: Play golf with the Vancouver business community including senior executives, deal-makers and professionals involved in corporate growth, development, and mergers and acquisitions. A full day event including golf, dinner and great prizes! $175 BIV subscribers, ACG or TMA members/$200 general public. Universit y G olf Club, 5 18 5 University Blvd. Vancouver. Azadeh Hollmann: 604.608.5197, ahollmann@biv.com. https://www. eplyevents.com/BusinessLeaders GolfTournament. • Deadline for Datebook listings is noon Tuesday for the following week’s paper. Listings are published on a guaranteed basis for $50 per week, plus hst. Free listings will run in print as space permits. Go to www.bivdatebook. ca to post your listing. Published Datebook listings are at the discretion of BIV.

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Profile

August 16–22, 2011  Business in Vancouver

31

Don Kayne

By Joel McKay

Root seller Don Kayne is banking on his sales expertise to open

A

fter 32 years of behind-the-scenes wheeling and dealing, Don Kayne has stepped into the limelight to navigate one of B.C.’s largest lumber producers out of a mammoth market slump. It won’t be easy. After all, the 53-year-old executive will have to stickhandle a bushel of touchy and complex issues, including the oft-blood-boiling U.S.-Canada softwood lumber agreement, a record slump in the U.S. housing market, the aftermath of the pine beetle infestation and access to new markets abroad. The list of challenges stacked against Canfor (TSX:CFP), not to mention every other B.C. lumber producer, is enough to make even the most stoic business leader tuck tail and run. Some have. But Kayne, who’s just as comfortable jawing about the complex nature of the current lumber market as he is about the day’s weather, plans to stick it out in forestry. From where he’s sitting, the market has nowhere to go but up. “The upside in this industry is huge,” said Kayne, who was appointed Canfor’s latest president and CEO in May. “Every other resource except for lumber has capitalized based on the global demand picture changing, and I think lumber is really primed for that future.” His comments could seem overly optimistic to those who have watched B.C.’s most storied industry fade into the sunset in recent years. But for those who have been watching a little closer, Kayne could be on to something. His company was one of the first to tap new demand for B.C. lumber in China a decade ago. In the last few years, the Asian juggernaut’s demand for B.C. lumber used in concrete forming has skyrocketed. Should that demand continue, Kayne believes B.C.’s forestry sector could boom once the U.S. housing market recovers. The trick is getting his company ready for the next super-cycle, knowing the U.S. is still 18 to 24 months away from a recovery. “This industry is so tough,” said Kayne. “If you were conservative before,

you’re ultra-conservative now. “What gives us optimism is Asia, but in terms of the U.S. I still think we need to be really careful and cautious that we don’t base too many things we’re going to do on a quick recovery.” Kayne’s history with Canfor dates back 32 years, and his experience in the industry is even longer. At the age of 15, the North Vancouver native went to work as a weekend maintenance employee at a sawmill in New Westminster. After finishing forestry and business administration programs at the British Columbia Institute of Technology, Kayne had his pick of industry-related jobs throughout the province. But he wanted to work for Canfor, where his uncle had been chief forester. A planer mill elsewhere in the province had offered him a job, but he held off on giving his answer hoping that Canfor would call back with a position. In a moment of characteristic gutsiness, Kayne phoned Canfor and delivered an ultimatum. “I said, ‘Look, I’ve had three interviews; if you don’t give me an answer I’m going to go.’” He was hired on the spot and became Canfor’s first marketing trainee in June 1979. But more than two decades would pass before Kayne would realize that a real opportunity existed for B.C. lumber in a market that, up until the turn of the millennium, was non-existent: China. “It really started to take shape even more in the middle of 2004 and 2005 when we saw the U.S. [housing] market go to unbelievable levels,” he said. “Really, we knew it just couldn’t last like that.” At the time, U.S. housing starts had topped two million units per year. By the time the Great Recession hit in the fall of 2008, that number had dropped to 777,000 units per year, dipping as low as 477,000 in April of 2009. Housing starts continue to languish but, fortunately for Canfor, Chinese demand for lumber has displaced some of that demand. That’s not to say the company

Richard Lam

the floodgates for B.C. lumber in new overseas markets

Canfor CEO Don Kayne: “you think going in you know it, but what’s apparent now is how much you don’t know”

glided through the economic storm with ease. Kayne’s predecessor, Jim Shepard, curtailed mills, cut executive pay and sold the company jet to help Canfor ride out the downturn. Meantime, Kayne was making inroads in Asia where he hoped to stake out a new future for the company. It’s paid off. As of February, Canfor was shipping the equivalent production of four sawmills to China. In May, the value of lumber exports to China surpassed the U.S. for the first time in history. Kayne believes there’s a lot of demand in Asia that has yet to be tapped. “China has the opportunity to double, [and] Japan, which we don’t talk near enough about, [is a] huge opportunity.” The company is so keen to maintain and grow its foothold in Asia that it has partnered with competitors West Fraser Timber (TSX:WFT), Tolko Industries and Western Forest Products (TSX:WEF) and built a ship to transport products to Asia. David Emerson, a past CEO of Canfor, said Kayne’s focus on

diversifying the company’s markets would be key to its long-term survival. “If you do not have a really good sense of what the seismic shifts are in the global economy … then I think you’re going to end up selling your business to somebody that does,” said Emerson, who is also a former federal cabinet minister. But China isn’t a cure-all for Canfor or the B.C. lumber industry’s problems. Fortunately, Kayne knows that, which is why he’s focused on ensuring the company has the proper mix of trees to continue feeding its mills. He also committed to a $300 million capital plan to modernize Canfor’s mills. That way, when the U.S. market eventually returns, Canfor will have the fibre and technology on hand to flood the market with lumber and roll out the welcome mat for the return of the good times. “It’s got a long way to go,” said Kayne. “But, absolutely, I do believe it can be there again right near the top.” •

Mission: To transform Canfor into a top quartile performer Assets: 32 years of forestry experience and a knack for sales and marketing Yield: Strong ties with Chinese customers and ever-growing sales into Asia

jmckay@biv.com

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Check them out at www.biv.com/profiles


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Daily business news at www.biv.com   Business in Vancouver August 16–22, 2011

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