Business in Vancouver 2011-07-05 by GLACIER MEDIA DIGITAL LIMITED PARTNERSHIP dba BUSINESS IN VANCOUVER

Local. Business. Intelligence. July 5–11, 2011 • Issue 1132

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Alloys and aerospace: The battle for beryllium

Creating wealth with stealth 3

Local engineering company opens top-secret facility near Boston to tap global defence-sector market opportunities created by high-tech metal casting expertise: 5

Bike lanes blasted – again 4 Port Gateway closed 6 Insider trading insights: Who bought what, when 9 Ebb and flow of B.C.’s waterfront real estate market 10 Forest sector’s high-tech survival plan 15 Executive team building 20 Why riot responsibility resides in high places 28

Lara Kozan and YYoga’s positive revenue positions 31 Biggest forest companies in B.C.

dominic schaefer

Postal strike stopped too early 29

Seyem’ Qwantlen business group director Brenda Fernies: business development opportunities are flowing to the band from “all directions”

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Rise in aboriginal enterprise

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>Kwantlen First Nation rekindling historic business acumen with launch of four new companies >Growing purchasing power is arming B.C. aboriginal bands with the economic muscle needed to establish development arms

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By Joel McKay

t might not be the largest band in the Lower Mainland, but Kwantlen First Nation is harnessing the rising tide of aboriginal purchasing power to revive its business spirit. A year ago the band, which has 200 members and six reserves spread between Fort Langley, Maple Ridge and Mission, was developing ideas about how best to capitalize on its lands and resources. Earlier this year, those debates turned into a reality when the Kwantlen launched four companies, collectively known as the Seyem’ Qwantlen Group of Companies, that reached into half a dozen different business sectors to

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re-ignite the band’s entrepreneurial history. “The Lower Mainland is bursting at its seams … and it’s encroaching now on reserve lands where people want to do business with First Nations,” explained Brenda Fernie, director and corporate secretary of the Seyem’ business group. Unlike larger bands that have been able to capitalize on valuable Vancouver and waterfront landholdings, the Kwantlen are just beginning to feel a rush of demand as development moves east. With only 200 members, the Kwantlen have struggled to rekindle the long lost business spirit that allowed them to become a key trading partner with the Hudson’s Bay see EDCs, 6

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Daily business news at www.biv.com July 5–11, 2011

contents Columnists Money’s Worth Kim Inglis Real Estate Roundup Peter Mitham High-Tech Office Alan Zisman Business Lunch Glen Korstrom Boardroom Strategy Mike Desjardins CEO Advantage Nancy MacKay Family Law Nicole Garton Jones At Large Peter Ladner National Affairs Mark Milke

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Now online AgriMarine explores farming bluefin tuna in Japan Law firm launches class action suit against Eastern Platinum Telus awarded major B.C. government contract Westport inks deal with GM to develop natural gas engines

Prophecy coal delivers historic shipment to Russia

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July 5–11, 2011 Business in Vancouver

Tapping wealth with stealth

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BUSINESS TODAY

Hyperstealth Biotechnology is taking the science of concealment to new levels with camouflage that can change colour and light-bending material that the company claims can turn soldiers invisible

Guy Cramer: like his grandfather, who invented the walkie-talkie, the Hyperstealth boss is an inventor with no formal science background By Nelson Bennett

uy Cramer is not a magician; he’s not even a formally trained scientist. But he claims a new camouflage material his company is developing can essentially turn soldiers, tanks and other military vehicles and weaponry invisible. It’s called adaptive camouflage, and it’s just the latest development to come out of Cramer’s Maple Ridge company, Hyperstealth Biotechnology Corp. “We call it quantum stealth,” Cramer said. “If you saw the movie Predator, that’s the idea.” Cramer is limited in how much he can say or demonstrate because the mainstay of his business is with military organizations around the world. In other words, it’s classified. But essentially what adaptive

camouflage does is bend light, similar to the way in which fibre optics bend light. A person or tank cloaked in light-bending “metamaterial” would essentially stream light around it, so that a person – or army – would literally see right past the object and would see only what is behind the camouflaged subject. If Cramer can demonstrate that his adaptive camouflage has practical applications for the military, it would make the high-tech camouflage he now makes seem quaint. “We’ve almost made our own technology obsolete,” he said. Jeff Young, a professor at the University of British Columbia’s physics and astronomy department, said the difficulty in bending light waves depends on the wavelength. Coming up with a material that bends visible light will be more of a challenge than, say, bending the radio

waves picked up by radar, because the wavelengths are longer. “It’s a much bigger challenge in the visible [light spectrum],” Young said. Cramer’s is not the only company working on bending light. Several universities and labs claim to have demonstrated some form of light bending. The challenge will be becoming the first to develop practical applications. Cramer is also working on Smartcamo, which uses a small electrical charge to change the colour of a fabric as the background changes. Incredible though some of his work might seem, what is perhaps even more incredible is that Cramer has no formal training in science or engineering. Then again, neither did his grandfather, Donald Hings, the man who invented the walkietalkie. After graduating high school, Cramer spent about six years as an apprentice with his grandfather in his electronics R&D lab, Electronic Labs of Canada. With a handful of investors, Cramer founded his own company in 1999. Its principal focus was developing a new kind of hyperbaric chamber (used to treat scuba divers suffering from the bends). He also developed a passive negative ion generator based on electrochemical reactions.

“We call it quantum stealth. If you saw the movie Predator, that’s the idea” – Guy Cramer, CEO, Hyperstealth Biotechnology

Neither invention took off at the time. Meanwhile, after the Canadian military spent a small fortune on a new camouflage pattern (a nowcommon pixilated pattern), Cram-

er declared he could come up with something better and much cheaper. In 2003, with a $100 software program and a formula based on fractal equations, he came up with a pattern that, he said, more closely replicates patterns in nature and is therefore more effective at concealment. “At a tactical distance, the brain is actually perceiving branches, or leaves or bushes,” Cramer said. He posted the camouflage pattern on the Internet and got a call from Jordan’s military office, which ordered Cramer’s camouflage for 300,000 uniforms. “That got us back into drawing a revenue back into the company,” Cramer said. Cramer and an assistant create a wide variety of camouflage patterns for a variety of military organizations around the world, from Canada and the U.S. to Afghanistan. Close to two million uniforms and 3,000 military vehicles in several countries use Hyperstealth camouflage designs. Cramer has also worked with W.L. Gore to develop a camouflage called Optifade for deer hunters. Gore worked with an animal vision expert to determine how ungulates see, and Cramer came up with a pattern that makes the wearer virtually invisible to deer. “They tested this in the field, and they’re saying the deer can’t see them at all,” Cramer said. Hyperstealth recently landed a deal to provide the pattern for the Afghan National Army, Civil Order Police and border guard through a licensing agreement with a U.S.based company. After more than a decade, Hyperstealth’s 126 investors (including family and friends) are finally seeing a return on investment. “We were able to pay a dividend to the shareholders for the first time last year,” Cramer said. • nbennett@biv.com

B.C. government awards $1b contract to Telus Telus has secured a 10-year strategic telecommunications services contract with the B.C. government worth approximately $100 million per year. Telus (TSX:T) will provide telecommunications and strategic services to government and its publicsector partners, while expanding high-speed Internet connections in rural and remote areas of B.C. and improving cellular coverage along highways across the province. Up to 450 schools in the province will also get improved high-speed fibre optics, which will increase bandwidth. Thursday, June 30

Securities commission bans West Van businessman for life A BC Securities Commission (BCSC) panel has fined and ordered a permanent market ban against a man who fraudulently obtained more than $500,000 from four investors. Adam Keller raised approximately $523,100 from two B.C. and two Alberta investors, claiming that he would execute trades in the foreign exchange market or invest funds in unique investment opportunities on their behalf. Thursday, June 30

International conglomerate buys B.C. wind farm IPR - GDF SUEZ North America has bought Vancouver-based Sea Breeze Power Corp.’s Knob Hill Wind Farm project. The deal, announced on June 27, is worth $12 million, with a milestone payment of $1.9 million to be issued at the close of the transaction. Tuesday, June 28

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Daily business news at www.biv.com July 5–11, 2011

Business concerned by NPA policy void City of Vancouver merchants charge that inconsistent stand on Hornby bike lane issue another illustration of party waffling By Glen Korstrom

on-Partisan Association (NPA) mayoral candidate Suzanne Anton has criticized Vancouver Mayor Gregor Robertson more for his style and priorities than on differences in policy. The rhetoric recently hit full boil when council’s first item of business following the June 15 Stanley Cup riot was set to be whether to approve a pilot project to allow residents to grow wheat on their lawns. But Hornby Street business owners say Anton needs to do more than criticize leadership traits to win the civic election in November. They want alternatives to one of Robertson’s most controversial policies: the creation of a separated bike lane along Hornby Street. The City of Vancouver and Vancouver Economic Development Corp. announced in May that Stantec Consulting, Site Economics and Mustel Group Market Research would conduct a six-week, $125,000 study to quantify the effect on business that bike lanes on Dunsmuir and Hornby streets have had. The city is set to release the report later this month. Business in Vancouver’s unscientific survey of business owners reveals that many want clear alternatives to Robertson’s policies. “[Anton is] a bit of a flip-flopper on a lot of things. That’s a fairly general consensus talking to people I know around here,” said David

Dominic Schaefer

Hornby Street business owners say NPA mayoral candidate Suzanne Anton needs to have strong, clear policies if she hopes to unseat Mayor Gregor Robertson

Prior, who owns Rumours Hair Design on Hornby Street. “People are pretty disappointed. They need somebody stronger to go up against the mayor.” Prior and other Hornby Street entrepreneurs, however, say Anton is better than Robertson. Appleton Galleries owner Ron Appleton was a longtime NPA supporter who defected to Vision Vancouver last election because he

didn’t like the way the NPA forced out former mayor Sam Sullivan. He is now “terribly disappointed” with Robertson yet uninspired by Anton. “She waffles on so many things that it’s hard to know where she stands,” Appleton said. Prior and Appleton met Anton the day of the October 5 vote on the bike lane and, they say, she told them she supported their oppos-

ition to the lane. Hours later, she voted for the lane. The next morning she released a statement saying that she was withdrawing her support for the project because work crews had already started installing bike lane signs – revealing that the previous night’s vote was a sham. “We’ve seen it on other issues where she votes one way and then the next day complains about it,” Appleton said. Anton voted in April against Paragon Gaming Corp.’s proposal for a mega-casino attached to BC Place. Hours later, she clarified that she still supports the concept of expanded gambling. Her vote, however, did not stop her from slamming Robertson the next day in a press release titled, “Mayor throws out a billion dollars’ worth of economic activity.” In 2009 and 2010, Anton voted with council to support spending money on food projects that came from community initiatives. She then attacked Robertson for wanting to support a community initiative to spend $5,000 of taxpayer money to fund a pilot project to explore growing wheat in front lawns. Like other vociferous Hornby bike lane opponents, Art Knapp Plantland and Florist owner Wim Vander Zalm believes the bike lane should stay because it would be expensive to remove it. “They need to tweak the lanes and identify other options,” he said,

“because the way it is now, there’s no benefit to anybody.” Anton’s challenge is twofold: ensuring that anti-bike-lane business owners vote on election day and attracting votes from motorists who are frustrated with downtown traffic congestion. “That’s the NPA’s struggle,” agreed former NPA mayoral candidate Peter Ladner, who believes installing the bike lanes was the right policy. “I’m not part of that struggle right now. So I don’t know how they’re going to do it.” Simon Fraser University city

“She waffles on so many things that it’s hard to know where she stands” – Ron Appleton, owner, Appleton Galleries

program director Gordon Price, who served six terms on Vancouver city council, believes Vision Vancouver is likely to win a second majority on council because it has remained united. He urges the NPA to strategically attack the city’s process for installing the bike lanes but not to oppose the lanes outright. “The bike lane issue is a problem for the NPA if they’re seen to be too virulent in their criticism,” he said. • gkorstrom@biv.com

Retailers grapple with Hornby bike lane impact By Glen Korstrom

any Hornby Street businesses have closed since the street’s controversial bike lane was completed last year in time for the December shopping season. Some owners who vigorously opposed the bike lane have sold their businesses; others have changed their product mixes to appeal more to cyclists; and those that have continued to offer the same services or products have suffered reduced sales. Two restaurants that have been around for decades – Kettle of Fish at the corner of Hornby Street and Pacific Boulevard and Mona’s Fine Lebanese Cuisine half a block north – have closed. So did the relatively new Milwaukee Market Creamery next door to Mona’s. “Business is terrible,” said Emil

Malak, owner of Bellaggio Café. “The bike lane has not just impacted my business, it’s choked the whole of the city.” He estimated this year’s sales drop at about 30% compared with last year’s and said he’s had to lay off staff. Malak said he intends to tough it out. But others have thrown in the towel. Former Café de France owner Lahten Abassi sold his business to Jennifer Pham in April. Hair salon owners like Rumours Hair Design’s David Prior and C:EHKO’s Farshad Shafiekhani say the bike lane has hurt sales. Prior said his annual sales have dropped about 5%. Shafiekhani has turned to Groupon to boost revenue. Wim Vander Zalm has watched sales increase up to 10% in each of his 17 Art Knapp Plantland and

Florist locations, except Hornby Street. Sales there dropped about 20% and forced him to change the store’s product mix to bring in women’s clothes to the front of what has been a garden-supply store for decades. “Once they started no left turn from Pacific Boulevard onto Hornby, it was a continuum,” Vander Zalm told Business in Vancouver. “They then took away a lane and then they made my block of Hornby a one-way street. They kept hitting us when we were down.” Appleton Galleries owner Ron Appleton, more precisely described it as being like the city “taking a baseball bat to my head.” The 67-year-old closed his decades-old art gallery and has moved to a warehouse in Marpole that has no walk-by traffic. “I had no choice but to downsize and move to something a bit more

Dominic Schaefer

As sales dip, store owners having to make tough decisions, including closures and strategic product changes

Bellaggio Café owner Emil Malak: sales are down “terribly” since the Hornby Street bike lane was installed outside his restaurant

affordable,” Appleton said. “I was at the point of trying to sell the business as a going concern. I’d been 40 years in downtown Vancouver and made a decent living. [The bike lane

has] been harmful to my business, my family and, most important, to my two employees, who I lost when I had to leave.” • gkorstrom@biv.com

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July 5–11, 2011 Business in Vancouver

full disclosure

Rare find Local exploration company banking on vertical integration to tap tightly controlled beryllium market that services aerospace and defence sectors

ost Vancouverites want nothing to do with Boston these days, but one local firm has bet on a highly secretive manufacturing facility on the outskirts of Beantown. The 63,000-square-foot facility in Wilmington, Massachusetts, houses IBC Advanced Alloys’ (TSX-V:IB) Engineered Materials division. It specializes in beryllium-aluminum alloys called Beralcast. In layman’s terms, the alloys combine beryllium’s lightweight stiffness with aluminum’s processing characteristics to create parts for technology, aerospace and defence sectors. But the fact that Beralcast technology has been used in U.S. missile systems, NASA thruster mounts and was approved for the aborted multibillion-dollar Comanche stealth helicopter program isn’t what makes the facility so secretive. Rather, what’s had competitors clambering to get a look at the inner workings of the facility (and forced IBC to guard its doors very closely) is the method the company uses to cast a beryllium alloy. That’s IBC’s big secret, explained company president and CEO Anthony Dutton, because traditional parts made with beryllium alloys have to be machined. Beralcast alloys can be cast into complex shapes that need little or no machining, said Dutton. Now, all the junior company has to do is show the market it can deliver on its promises. “What we have to explain to them is who we are as a company, why we’re big enough to be able to deliver on their requirements,” said Dutton. Nuclear history IBC’s beginnings are not all that different from any of the other junior companies that spring up along Vancouver’s Howe Street. In 2007, Dutton and hedge fund manager James Passin were chatting at a mining conference when they agreed that beryllium was going to play a big role in the coming nuclear renaissance. “We didn’t have to go very far before we realized, bingo, it’s beryllium,” Dutton told Business in Vancouver in 2009. That idea led Dutton and Passin, who manages New York-based hedge fund Firebird Management LLC, which owns 29.6% of IBC, to develop a vertically integrated mining-to-manufacturing business in Vancouver. The idea was to supply beryllium, which is used in nuclear reactors, for

the nuclear renaissance. That initiative is still part of the company, but IBC’s revenue-generating arm has since taken precedence. Since 2007, the company has secured the largest known block of beryllium mineralization properties on the planet, which are right next door to the only operating beryllium mine in the U.S. – Materion’s (NYSE:MTRN) Spor Mountain mine. The company also bought the U.S.A.’s largest specialized metals forging press operator and its second-largest beryllium melt shop. Today, the Vancouver junior employs dozens of people at plants in Pennsylvania, Missouri, Indiana and Massachusetts. IBC has also secured a long-term beryllium supply contract with Kazatomprom, which stockpiles and processes the rare metal. Dutton said vertical integration is essential for IBC’s business model because the beryllium industry is small.

“A complex story always creates problems” – John Kaiser, analyst and author

“To be able to create long-term sustainable shareholder value you have to control the whole value chain,” said Dutton. “If you’re a gold company you can run a very successful gold mine, you can have another company that’s a gold processor and another that’s a jeweller, and they can all exist independent of one another. “But in the specialized metals business there are choke points … so it’s much more sensible to create this integrated value chain.” To get a sense of just how small the beryllium market is, one need not look far. There are only two major beryllium alloy manufacturers in the world – Materion and Japan’s NGK Insulators. According to the U.S. Geological Survey (USGS), there was only 170 tonnes of beryllium produced in the U.S. in 2010. More than half of the material imported into the U.S. came from one place – Kazatomprom’s Ulba Metallurgical Plant in Kazakhstan. The metal has become so strategically important that in 2005 the U.S. Department of Defense coughed up millions of dollars to build a beryllium facility in Ohio with Materion.

IBC Advanced Alloys Corp. (TSX-V:IB) $0.30 $0.20 $0.10 $0.00

Vancouver CEO: Anthony Dutton Employees: N/A Market cap: $42m P/E ratio: N/A EPS: ($0.02) Sources: Stockwatch, TSX

For a junior company out of Vancouver with a $42 million market cap, the beryllium market is a tough nut to crack. But that market is growing as high-tech companies and defence contractors seek out stronger, lightweight alternatives to traditional materials. And IBC has spent a lot of time acquiring expertise to tap those markets. 363rd time’s the charm Fifteen years ago, a customer of Massachusetts-based Starmet asked if a beryllium alloy could be cast into complex shapes. The company wasn’t sure, but then Ray White piped up. “I said, ‘Let’s try it’” said White, president of IBC Engineered Materials in Wilmington. “Honestly, I don’t think I knew any better. That’s the kind of person I am: why can’t it be done?” The company got to work and after a considerable amount of time, and 363 different alloy mixtures, finally found the secret sauce. Unfortunately, Starmet went bankrupt and was bought out by another company that did little to advance its prospects. White moved on but never forgot about the patent that had his name on it. Last year, IBC bought Starmet’s successor, Beralcast, in a cash and share deal valued at $4.25 million. The deal was struck on the condition that White come back and head up the company’s newest division in a new plant (the previous facility was tainted with depleted uranium and other toxins from its unrelated munitions business). “It’s been my dream for 15 years,” said White. “I could see this 15 years ago … it’s like Christmas every day.” Like a host of other employees at IBC, he’s walking evidence of a business strategy that focused on acquir-

Joel McKay

By Joel McKay

IBC CEO Anthony Dutton (left) and Ray White say the beryllium market is so tightly controlled the company keeps the names of its customers secret

ing the right people as well as the right equipment. One of its executives spent a chunk of his career with Materion, while another handled sales for Ulba Metallurgical Plant. In order to grease the wheels in Washington, D.C., IBC has hired Command Strategies LLC to weave through the U.S. defence network’s complex procurement process. It’s has also appointed a retired U.S. Marine Corps. major general to its board of directors and hired a former vice-president of Exelon Corp. (NYSE:EXC), North America’s largest nuclear power generator, to advance its nuclear fuels division. But has any of it paid off? In April, the company renewed research agreements for nuclear fuel development with Purdue and Texas A&M universities. IBC has also signed an agreement with the U.S. military’s Army Research Laboratory and Naval Air Systems Command to test beralcast alloys in unmanned aerial drones. Despite the acquisitions, agreements and technologies, analysts aren’t publishing ringing endorsements of the company. Downgraded Last month, Vancouver-based Fundamental Research Corp. downgraded its rating of the company from “buy” to “hold.” “We had to downgrade them mainly because of their liquidity problems, and we also need to see some improvement in their manufacturing division,” commented analyst Siddharth Rajeev. Although its revenue increased 30% in 2011’s third quarter year-overyear, the company has yet to turn a profit. Meantime, its stock has languished between $0.10 and $0.20

for much of the last year, though it briefly hit a 52-week high of $0.32 in May. Rajeev expects IBC to turn a profit in fiscal year 2013. Still, success in the junior market can have as much to do with marketing as it does with results, and analysts have said IBC’s story is too complex. “A complex story always creates problems,” said John Kaiser, an analyst and publisher of Kaiser Bottom-Fish Online. “Brokers have exactly 30 seconds to grasp the story, and if they can glimpse some hook that they can repeat the story in 30 seconds to their clients then you’ve got them.” Dutton would say otherwise. “It’s a company with quite a few moving parts, but it’s essentially a very simple company,” said Dutton. Kaiser said one of the key’s to the company’s future success will be proving how much beryllium it has sitting in the ground in Utah, which would establish the possibility for an in-house supply. “Otherwise you’re always wondering when the flaky Kazakhs are going to cut you off,” Kaiser said. Rajeev, on the other hand, believes the company needs to build more strength in its manufacturing divisions. “They need to get this cash flow or revenue-generating business to a profitable situation,” said Rajeev. “If that’s achieved, then I think this company has great potential.” Dutton, on the other hand, just wants to make sure he doesn’t do what his competitors have done – get comfortable. “They take their eyes off the ball,” Dutton said, “so when we come along we’re a breath of fresh air.” At press time, the company’s shares were valued at $0.17 • jmckay@biv.com

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July 5–11, 2011

North Shore council kills Gateway project Business blasts North Van City’s rejection of the $57 million Low Level Road improvement project in wake of resident opposition By Jenny Wagler

ity of North Vancouver council has nixed half of a $100 million project to improve North Shore rail and port operations. The decision leaves the fate of the remaining half of the project up in the air. “I don’t know if I’ve been part of a more disappointing decision by a municipal government,” said Anne McMullin. The president and general manager of the North Vancouver Chamber of Commerce called the project “a vital link in the overall transportation network and infrastructure that is being built around Metro Vancouver.” It included a rail overpass by the entrance to Neptune Bulk Terminals and the raising and realignment of Low Level Road to allow for more rail capacity. Port Metro Vancouver (PMV) has taken the lead on the project for the initial design phase. The project was to be funded by PMV, Transport Canada, TransLink, CN (TSX: CNR; NYSE: CNI), Canadian Pacific Railway Ltd. (TSX:CP; NYSE: CP) and the City of North Vancouver. The city’s contribution was to have been land plus $800,000 for the Low Level Road realignment. On June 13, North Vancouver council voted against the $57.3 million Low Level Road realignment but in favour of the $41.6 million Neptune overpass. City of North Vancouver councillor Rod Clark said residents living above Low Level

An artist’s rendering of extra rail capacity and dedicated bike and pedestrian lanes that would have been created by the project to raise and realign Low Level Road along the North Van waterfront

Road were “well-organized” and concerned about noise, dust, pollution and obstructed views. However, Clark said residents for the most part supported the project but wanted more mitigation measures instituted to address their concerns. Clark, who voted against both halves of the project, said PMV hadn’t presented sufficiently detailed plans and designs. “Before we [North Vancouver council] give any kind of building permit, you need to have detailed plans signed off by engineers and architects,” he said. “Port Metro was trying to say to us, ‘We have all these pretty pictures and we’re giving you all these promises, so we don’t have to do the detailed design,’ and that’s not acceptable.” PMV is assessing whether to proceed with the council-approved overpass and if the funding partners are willing to pay for the reduced project. Peter Xotta, PMV’s vice-president of

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planning and development, said the entire project might be cancelled. “[If that happens], the loss would be all of the things that we’d hoped to gain: increased capacity and operational efficiency in that area to support the continued trade growth that we anticipate of our bulk commodities in the port,” he said. McMullin called council’s decision

“shocking.” “The benefits to the community, to the region, to the country were enormous,” she said. North Vancouver Mayor Darrell Mussatto also voiced disappointment with council’s decision against the Low Level Road project. “It was going to help the businesses on the port, no doubt about that.” Mussatto added that the realignment would have extended the pedestrian and cyclist Spirit Trail and stabilized a steep embankment above Low Level Road that will now have to be fixed with taxpayer money. As to his hopes that half the project will still proceed, the mayor said: “I’m keeping my fingers crossed, but I’m not holding my breath.” • jwagler@biv.com

EDCs: Helping bands build business acumen from Rise, 1

Co. at Fort Langley in the early 19th century. At the time, the Kwantlen were the largest First Nations group on the lower Fraser River, with a territory that stretched from Tsawwassen to Mission. In the 1700s, the band population numbered between 10,000 and 15,000 members, Fernie said, before an outbreak of small pox began to take its toll. In recent years, the band has focused on providing education opportunities for its younger members, building capacity that will allow the community to develop business opportunities and generate wealth. “There’s been a lot more in the last number of years, and even more than the opportunities we have the capacity [to take advantage of] as well,” she said. One of those business opportunities came to fruition earlier this year when the Kwantlen assumed operations at the Fort Langley National Historic Site gift shop, located near the band office on McMillan Island. “We were fortunate … being at the fort was pretty low risk because we have an ongoing customer base visiting the fort so we’re seeing revenue,” Fernie said. The band is also using its development companies to get involved in cultural heritage, forestry, fisheries, construction and commercial development. The Kwantlen hope to hit the market with a land development opportunity in Maple Ridge this fall, a plan that’s been in the works for years. But instead of just selling off the land or signing over a lease, Fernie said the band is focusing on business strategies that generate the most benefit for the community. “We’re trying to get away from just signing over the land and having no involvement,” she said. “We want to create employment for the long term for band members.” Her comments echo a common theme these days among bands throughout B.C. that are more interested in long-term gains than shortterm payouts. Bands have begun to establish economic development corporations (EDCs), which lay out strategies to capitalize on a community’s

resources and strengths. A recent TD Economics report suggested the increase in the number of EDCs has improved aboriginal income totals across Canada. The report said the total combined income of aboriginal businesses, households and government sectors will hit $24 billion this year, double what it was a decade ago. TD said the total business income of Canada’s aboriginal market is expected to hit $9 billion this year compared with $4 billion in 2001. “By putting a number out there and showing the aboriginal income [across Canada] is actually exceeding that of Newfoundland and Labrador and Prince Edward Island combined, it shows you how important these individuals are to the national economic outlook,” said Sonya Gulati, an economist with TD.

“The … conditions are ripe now for aboriginal communities to capitalize on business opportunities” – Clint Davis, president and CEO, Canadian Council for Aboriginal Business

She said the increase in aboriginal purchasing power presents new opportunities for the private sector to form business relationships with aboriginals. Clint Davis agreed. “The opportunities are limitless,” said Davis, president and CEO of the Canadian Council for Aboriginal Business. “The … conditions are ripe now for aboriginal communities to capitalize on business opportunities.” And even though the Kwantlen are one of the Lower Mainland’s smaller bands, Fernie believes it has all the right stuff to build success. “We see ourselves as the quiet underdog,” Fernie said. “That’s fine; we’re going to carry on and surprise people, and we kind of like being in that role.” •

July 5–11, 2011 Business in Vancouver

Daily email edition: www.biv.com

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Finance

Daily business news at www.biv.com July 5–11, 2011

BY THE NUMBERS

Losses are shown in brackets. Graph information by Stockwatch.

Taiga Building Products Ltd. (TSX:TBL)

▲2.6% $4.6m Revenue: $956m Fiscal 2011

Net income Fiscal 2011

Softwood slump: Taiga suspended the first payment of its semi-annual dividend last week in light of weaker financial performance. Although the company’s revenue was higher in 2011 than 2010, the summer expiry of the home renovation tax credit and slumping commodity prices impacted second, Earnings per share third- and fourth-quarter results. The company finished the Fiscal 2011 year with a $12m net decrease in its revolving credit facility.

$0.14

$1.40 $1.20 $1.00 $0.80 $0.60 $0.40

Radiant Communications Corp. (TSX-V:RCN) Steady eddy: The Vancouver-based broadband company saw revenue increase $100k in the first quarter compared with the same period in 2010. Radiant said its revenue is primarily recurring in nature and therefore relatively predictable on a quarterly basis. The company’s operating expenses Earnings per share increased 7.7% in the first quarter to $3.2m. Radiant finished 3 months 2011 the quarter with $4.8m in cash and short-term investments.

▲1.6% ($62k) $0.00 Revenue: $8m 3 months 2011

Net income 3 months 2011

$1.00 $0.80 $0.60 $0.40

Wall Financial Corp. (TSX:WFC) Condo king: The real estate developer saw its revenue soar in the first quarter due to the closing of 343 condominium units at the Capitol Residences development. Meantime, revenue from hotel operations dropped to $11.5m in the first quarter compared with $16m in the same period last Earnings per share year. The drop was primarily due to stimulus the company 3 months 2011 received in 2010 for the Winter Olympic Games.

▲131% $16.4m $0.50 Revenue: $202m 3 months 2011

Net income 3 months 2011

$20 $15 $10 $5

Money’s Worth

Kim Inglis IPPs can help business owners, executives maximize retirement savings

usiness owners, high-income executives and incorporated professionals are increasingly using individual pension plans (IPPs) to maximize retirement savings, particularly if they’re concerned about having enough in their RRSPs to fund desired retirement lifestyles. According to Westcoast Actuaries Inc., more than $200 billion will be invested in IPPs by 2020. IPPs are one-person defined benefit pension plans that achieve pre-determined income streams in retirement by using tax-deductible contributions. The allowable contributions are generally higher than for RRSPs, enabling tax-free growth of a larger pool of retirement assets. According to GBL Actuaries & Consultants, IPPs permit up to 65% greater accumulation of retirement assets than RRSPs. IPPs are best suited to people

over 40 who have already maximized their RRSPs but want to enhance their retirement benefits. The ideal candidate earns over $127,000. Dividends cannot be used to fund IPPs, so business owners must pay themselves a salary adequate for contribution requirements. IPPs can only be set up by the employer and need to follow Canada Revenue Agency pension plan rules and regulations. Self-employed professionals must form a professional corporation to meet the required employer-employee relationship. Employer expenses paid on behalf of the employee are fully tax deductible by the employer. Unlike RRSPs, individual pension plans do not have predetermined contribution limits. Within the rules on how large the defined benefit can be, an individual deter-

mines the desired retirement income goal and an actuary determines the contributions required to achieve it. The actuary reviews the IPP every three years and adjusts the contributions accordingly.

Unlike RRSPs, individual pension plans do not have predetermined contribution limits Depending on the jurisdiction of the IPP, the actuary can increase contribution requirements if investment returns are inadequate to fund future payments. This allows the deficit to be topped up with larger tax-deductible contributions. IPPs can contain a variety of investments, including investment funds, stocks, bonds and GICs in

accordance with diversification requirements. For instance, an IPP cannot invest more than 10% of the fund’s book value in one security, and the targeted rate of return is set at a conservative 7.5% per annum. Most individuals opt for professional management of their IPP holdings. IPPs offer significant advantages, such as higher tax-deductible contributions and tax sheltering of asset growth. An added bonus for many business owners is that the assets are 100% protected from creditors. IPPs allow for past service funding and, if an individual retires earlier than 65, a terminal funding contribution can be made to provide further retirement benefits. IPPs are not without drawbacks. They have higher setup and administration costs and, unlike RRSPs, the funds are generally locked in.

IPPs can also reduce or eliminate the ability to contribute to a RRSP. If the actuary mandates higher contributions, they must be made up regardless of the financial circumstances of the employer. However, the additional funding can usually be amortized over a five-year period. There are many intricacies to IPPs, so it’s imperative to understand all the details. Professional help is advisable, as particular attention must be paid to Canada Revenue Agency rules to ensure IPPs continue to meet pension requirements. • Kim Inglis (www.reynoldsinglis. ca) is an investment adviser with Canaccord Wealth Management, a division of Canaccord Genuity Corp. The views in this column are solely those of the author.

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finance

July 5–11, 2011 Business in Vancouver

EI claims down in B.C.

Insider Trading

April recipients drop 17.8% year over year

▼17.8% ▼25.6% ▲1.1% ▲0.6% The following is a list of trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed during the week ending June 23. 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: Keith Neumeyer, president and CEO Company: First Majestic Silver Corp. (TSX:FR) Shares owned: 2,886,000 Trade date: June 17 Trade total: $820,000 Trade: Sale of 50,000 shares at $16.40 per share and the acquisition of 100,000 shares at $4.30 per share through the exercise of options. Insider: Shaun Perlin Heinrichs, CFO Company: Yukon-Nevada Gold Corp. (TSX:YNG) Shares owned: 2,450,000 Trade date: May 31 Trade total: $375,000 Trade: Acquisition of 750,000 shares through the granting of options at $0.50 per share. Insider: Donald Jewell, director Company: Tekmira Pharmaceuticals Corp. (TSX:TKM) Shares owned: 330,276 Trade date: June 16 Trade total: $271,500 Trade: Purchase of 60,000 shares at $2.85 per share under a prospectus and 30,000 warrants at $3.35 per unit. Insider: Robert Alexander Archer, president and CEO Company: Great Panther Silver Ltd. (TSX:GPR) Shares owned: 1,380,100 Trade date: June 22 Trade total: $205,121 Trade: Sale of 40,300 shares at $3.45 per share and 19,100 shares at $3.46 per share after exercising option to purchase 59,400 shares. Insider: Rohan Hazelton, vicepresident, finance Company: Goldcorp Inc. (TSX:G) Shares owned: 2,168 Trade date: June 22 Trade total: $243,218 Trade: Sale of 5,000 shares at $48.64 per share. Insider: Gerald George Carlson, director Company: Almaden Minerals Ltd. (TSX:AMM) Shares owned: 250,000 Trade date: June 8

Trade total: $164,500 Trade: Granting of 50,000 options worth $3.29, each which expire in 2016. Insider: Robert John MacDonald, CFO Company: Quadra FNX Mining Ltd. (TSX:QUX) Shares owned: 10,000 Trade date: June 21 Trade total: $135,300 Trade: Purchase of 10,000 shares at $13.53 per share. Insider: James Arthur Sturgess, senior vicepresident, corporate development and government affairs Company: Augusta Resource Corp. (TSX:AZC) Shares owned: 110,850 Trade date: June 21 Trade total: $127,575 Trade: Sale of 31,500 shares at $4.05 per share following a June 17 purchase of 15,554 shares at $4.07 per share ($63,304) and the sale of 22,000 shares at $3.97 per share ($87,340). Insider: John Scott Davidson, managing director, global head of marketing and communications Company: Canaccord Financial Inc. (TSX:CF) Shares owned: 13,460 Trade date: June 17 Trade total: $123,650 Trade: Sale of 10,000 shares at $12.365 per share Insider: Brian Hayward, director Company: Glacier Media Inc. (TSX:GVC) Shares owned: 40,000 Trade date: June 17 Trade total: $94,300 Trade: Acquisition of 41,000 shares at per share prices ranging from $2.30 and $2.35 per share. Insider: Gilmour Glausen, president and CEO Company: Augusta Resource Corp. (TSX:AZC) Shares owned: 1,071,326 Trade date: June 17 Trade total: $79,560 Trade: Acquisition of 20,000 shares at $3.978 per share. Insider: Marcel de Groot, board chair Company: Luna Gold Corp. (TSX:LGC) Shares owned: 2,756,840 Trade date: June 21 Trade total: $75,000 Trade: Acquisition of 250,000 shares at 0.30 per share from the exercise of options. Insider: Randall Milner,

senior vice-president, general counsel and corporate secretary Company: Methanex Corp. (TSX:MX) Shares owned: 12,152 Trade date: June 21 Trade total: $63,525 Trade: Sale of 3,000 shares acquired from the exercising of options worth $17.85 per share. Per share sale price ranged from $28.87 to $28.95. Insider: Graeme Witts, director Company: Mercer International (TSX:MRI) Shares owned: 78,000 Trade date: June 15 Trade total: US$44,000 Trade: Acquisition of 4,000 shares at US$11.08 per share. Insider: Deepk Hundal, corporate secretary Company: Aura Minerals Inc. (TSX:ORA) Shares owned: 465,000 Trade date: June 21 Trade total: $41,200 Trade: Sale of 20,000 options at $2.06 per share

International Inc. (TSX:ICS) Shares owned: 279,375 Trade date: June 17 Trade total: $12,000 Trade: Acquisition of 47,500 shares at $0.12 per share and 52,500 shares at $0.125 per share Insider: Brian Slusarchuk, director Company: Greenscape Capital Group Inc. (TSX-V:GRN) Shares owned: 658,032 Trade date: June 20 Trade total: $11,495 Trade: Direct acquisition of 56,000 shares at per share prices from $0.20 to $0.22 per share, plus the acquisition of 30,000 shares via Skanderbeg Capital Group Ltd. at per share prices from $0.20 and $0.21 per share. Insider: Paul Anthony Brennan, senior vice-president, business development Company: Tekmira Pharmaceuticals Corp. (TSX:TKM) Shares owned: 9,000 Trade date: June 16 Trade total: $11,400 Trade: Acquisition of 4,000 shares at $2.85 per share.

Insider: Anthony Robert Guglielmin, CFO Company: Ballard Power Systems Inc. (TSX:BLD) Shares owned: 107,593 RSUs, 49,201 common shares Trade date: June 14 Trade total: $38,594 (RSU sale) Trade: Exercised rights to acquire 14,201 shares at $1.53 per share and sell 25,225 restricted share units at $1.53 per unit.

Insider: William Bullis, director Company: Canlan Ice Sports Corp. (TSX:ICE) Shares owned: 2,700 Trade date: June 13, 16 Trade total: $5,055 Trade: Purchase of 2,000 shares at $1.88 per share on June 13, and purchase of 700 shares at $1.85 per share on June 16.

Insider: James McNeill Singleton, director Company: Canfor Corp. (TSX:CFP) Shares owned: 10,000 Trade date: June 22 Trade total: $29,790 Trade: Acquisition of 3,000 shares at $9.93 per share.

Insider: John Anthony Versfelt, president and CEO Company: Cabo Drilling Corp. (TSX:CBE) Shares owned: 2,893,538 Trade date: June 14 Trade total: $4,640 Trade: Purchase of 32,000 shares at $0.145 per share. •

Insider: Boyd Clarke, director Company: QLT Inc. (TSX:QLT) Shares owned: 73,000 Trade date: June 17 Trade total: US$27,000 Trade: Acquisition of 4,000 shares at US$6.75 per share. Insider: Thomas John Bitove, director Company: Intrinsyc Software International Inc. (TSX:ICS) Shares owned: 319,300 Trade date: June 17 Trade total: $12,000 Trade: Acquisition of 100,000 shares at $0.12 per share. Insider: George Arthur Duguay, director Company: Intrinsyc Software

Year-over- Year-over- Year-over- Year-overyear change year change year change year change in recipients in recipients in recipients in recipients (B.C.) (Alberta) (N.S.) (N.B.) Between April 2010 and April 2011, the number of employment insurance (EI) beneficiaries in B.C. dropped a notable 17.8%, a rate of decline second only to Alberta where the number of beneficiaries fell by one-quarter (-25.6%). Nova Scotia (1.1%) and New Brunswick (0.6%) were the only provinces to record year-over-year increases, such that nationwide, the number of beneficiaris was down 11.3%. In April, the number of people collecting EI in B.C. fell to 66,950 (seasonally adjusted), decreasing 3.7% from March.

B.C. retail sales rise in April Retailers in B.C. saw sales rise for the third consecutive month in April (1.3% seasonally adjusted), and recorded one of the highest increases among the provinces. Retail sales gains were seen in half of the provinces, most markedly in Alberta (1.6%) and B.C.

-BC Stats Infoline, Issue 11-25, June 24

B.C.’s Q1 2011 population rises 1.1% year over year As of April 1, 2011, B.C.’s population was estimated at 4,563,296, up 1.1% from the same quarter in 2010. Overall, B.C.’s population grew at a rate equal to the national average (1.1%) and sixth strongest among the provinces.

-BC Stats Infoline, Issue 11-25, June 24

Canada’s composite index rises 1% in May Canada’s composite index of leading indicators rose 1% in May, marking the largest increase registered so far in 2011. The manufacturing sector showed the most significant improvement from the previous month led by a 9.8% increase in new orders. The ratio of shipments to inventories continued to advance and the average workweek lengthened.

-BC Stats Infoline, Issue 11-25, June 24

Your Central City law ﬁrm, in Surrey.

MCQUARRIE.COM

Real estate

Daily business news at www.biv.com July 5–11, 2011

real estate roundup

Peter Mitham Fraser Valley schools, casinos getting busy; Chinese buyers continue to drive Metro Vancouver housing market It’s academic School is out for most students, but the University of the Fraser Valley (UFV) is studiously proceeding with expansion plans for its campuses in Abbotsford and Chilliwack. UFV has listed its Chilliwack North campus at Airport and Yale roads with Cushman & Wakefield Ltd. Proceeds from the sale of the 27-acre site will fund development of a new $45 million campus on 85 acres at Canada Education Park (on the former site of CFB Chilliwack). The property is listed at $30 million.The school is also working with Abbotsford to develop a plan for the area surrounding its growing campus located south of Highway 1 and bisected by King Road. UFV has 47 acres in Abbotsford but will require 20 to 40 acres over the next 50 years, according to Craig Toews, director of campus planning for UFV. “It will provide a vision for future build-out and amen-

ities that will really serve the community but also serve our students as they’re looking for options for affordable housing, and amenities such as food and services,” Toews said of the so-called U District planning initiative. Boosting amenities on and in the vicinity of its campuses is also important because the university is trying to become more campus-oriented rather than a commuter school. Moreover, limited transit connections between campuses means they require a critical mass of their own. This is in part why a $15 million student centre is being built at the Abbotsford campus. “[While] trying to evolve from our roots as a commuter college to a full university we need amenities on campus,” Toews said, “and this whole U District piece plays into that.” In the game Great Canadian Gaming Corp. has been an active player in the Fraser Valley market

ark

eP Live theatre in th

this spring, picking up a Chilliwack bingo hall and a Surrey development site. The casino operator, which last year raked in revenue of $383.5 million, acquired the assets and undertakings of the Chilliwack Bingo Association at the beginning of June for a base amount of $10 million. The deal gives Great Canadian a bingo hall and a fiveacre development site where it plans to develop a community gaming centre. The bingo association could receive further proceeds from the deal if Great Canadian successfully develops a gaming centre on the five-acre site. The deal in Chilliwack follows the purchase of a 25-acre site at 14933 Colebrook Road a month earlier by 0871194 B.C. Ltd., a company whose principal is Great Canadian executive chairman and CEO Ross McLeod. The purchase price was $7.7 million, $2.2 million below the list price, and gives McLeod approximately 19 acres net for mixeduse development.

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0, 2011 July 8–August 2 ghts 8pm Alternating ni .ca kets visit tuts For info & tic

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Malkin Bowl, Sta

are coming straight from China” – Jeff Hancock, senior manager, MPC Intelligence

McLeod didn’t return calls for comment on the deals. Buyer orientation There was a time, five years ago, when press releases regularly hit this columnist’s inbox trumpeting long lineups and same-day sell-outs of condo projects. “Some buyers actually tried to line up last week to get the jump on other buyers,” remarked an announcement for Richmond’s Versante project in 2005. Another, just a few months later, saw Cressey Development Corp. vice-president Hani Lammam’s comment that Lotus, also in Richmond,

pmitham@telus.net

Prized in the city, waterfront is a bargain along the B.C. coast, with some prices at 2004 levels

“Y

Presenting

their deposit cheques

the cheques for those immigrating buyers are coming from, said Jeff Hancock of market research firm MPC Intelligence Inc., it’s clear that Chinese money is what’s driving sales. “You start asking them where their deposit cheques are coming from, and you start seeing a huge proportion of their deposit cheques are coming straight from China,” Hancock said. While this doesn’t obviously mean the buyers are all resident in China, it does mean that sales are not connected with local economic factors. Hancock goes so far as to say the environment is complex enough to prevent any one set of data from effectively tracking buyer origins. Still, a mix of smart marketing by developers and savvy and strategic decisionmaking on the part of buyers is giving Chinese buyers an edge in lineups. And the more of them there are, the more successful a project will be, regardless of what the rest of the market is doing. “Make no mistake,” Hancock said. “They are driving the new home market.” •

Shifting real estate tides By Frank O’Brien Western Investor

Prices start at $19

“A huge proportion of

caused, “a lineup down the block; one realtor lined up at 5:30 am in the cold. … It was a bit like Boxing Day.” Photos sent to the press often showed throngs of eager Asian buyers, a phenomenon repeating itself today with reports of 400 people queuing for a crack at Eight West in New Westminster and hopeful buyers at the second phase of Quintet in Richmond lining up three days in advance of the launch. The presence of offshore – read, Chinese – interests in the lines is being hotly debated in a way it wasn’t five years ago. The most recent figures, circulated to media last week by MAC Marketing Solutions (which handled marketing of Lotus), notes that of 500 buyers in the first five months of this year, approximately two-thirds were of Chinese descent but, of these, just three listed an address in China as their primary residence. “What’s really happening is we are largely selling to immigrating Chinese purchasers, who are choosing to live, and to invest in Vancouver,” Cameron McNeill, president of MAC, concluded. But if you look at where

ou can’t go wrong buying waterfront,” has been a real estate mantra in B.C. for decades, but this year there’s a split in the market: unprecedented demand in Metro Vancouver, but continued signs of a prices falling in the hinterland. “There is a big gap between vendor expectations [of prices] and the market reality,” said Mark Lester of Colliers International’s Unique Properties group, which often markets highend waterfront property. Today’s B.C. coastal market, he said, is characterized by a huge number of listings and flat sales. “The Gulf [Islands] is not moving at all,” Lester said, adding that the sales downturn is seen in both raw waterfront land and in potential income-generating property, such as fishing lodges. He added that it’s a far cry from four or five years ago when there was a frenzy for any type of waterfront real

estate along the B.C. coastline, a trend that led to some poorly-thought-out commercial projects. Lester said the withdrawal of Alberta and U.S. buyers following the 2009 recession has meant waterfront vendors must now depend on a smaller – and less wealthy – pool of domestic buyers, and he said prices have fallen to what could be record lows. He points to one property, not a Colliers listing, on DeCourcey Island near Nanaimo, where one acre of serviced waterfront is up for sale for $199,900. “Look at this long term,” Lester said, “and it could be a great investment.” Other Vancouver Island realtors agree, noting that waterfront prices on Quadra Island and even Vancouver Island are now in the bargain-basement bin. Lorne Gait of Coast Realty Group in Ladysmith is offering a classic old oceanfront cottage on a 7,600-squarefoot waterfront freehold lot for $399,900, 40% below what the property may have sold

for back in boom times. He said there are other waterfront parcels on the east side of Vancouver Island now selling for $550,000 to $750,000, which would have started at $850,000 in 2006. Island action Waterfront prices on Quadra Island are now close to 2004 prices, agreed Nancy Allweather of Discovery Islands Real Estate on Quadra. “It’s all based on supply and demand,” she said, “and now there is more supply than demand.” Discovery has “ideal waterfront cottages” listed from under $600,000, including a one-quarter-acre lot with a 2,000-square-foot house at $459,000. Meanwhile, the 620-acre Cape on Bowen Island development started marketing last month, offering 29 10-acre waterfront lots at $2 million each, “dramatically below” what they would have been priced at a few years ago, according to a spokesman for the developer, Leeda Development Group. A Royal LePage survey of

B.C. waterfront cottage sales shows that prices have fallen on other waterfront parcels close to Vancouver. On the southern Sunshine Coast, a 35-minute ferry ride from West Vancouver, waterfront prices are off at least 20% to 30% from the peak, local realtors say. According to the Royal LePage survey, most investors agree, with 89% of Canadians surveyed saying that buying a vacation home is a good investment. The annual Re/Max Recreational Report, released this spring, says this is the summer to get deals in B.C., as prices are at or near bottom. “Oppor t u n it ies t hat haven’t been seen in years are now presenting themselves, especially on the West Coast,” said Elton Ash, regional executive vice-president, Re/Max of Western Canada. “Prices are down as much as 20% from peak levels reported in 2006-07, bringing ownership within reach to many potential purchasers. The strengthening oil sector has also brought Albertans back into

Real Estate

July 5–11, 2011 Business in Vancouver

How waterfront prices have changed* Market

2008

2011

BRITISH COLUMBIA: North Okanagan South Okanagan Tofino Ucluelet Saltspring Island

$1,500,000 $1,000,000 $869,000 $649,000 $1,300,000

$995,000 $800,000 $825,000 $529,000 $669,000

ALBERTA: Sylvan Lake

$1,250,000

$800,000

SASKATCHEWAN: Qu’Appelle Lakes

$300,000

$500,000

MANITOBA: Lake Winnipeg

$250,000

$280,000

ASPAC

*Starting price for a three-bedroom, winterized recreational cottage on a standard-sized waterfront lot. Source: Re/Max Recreational Property Report 2011

ASPAC’s River Green is setting all-time condominium sales and price records in Richmond

from Shifting, 10

the mix, driving demand for both local and coastal B.C. properties. 2011 could be the turning point.” Fraser River In the Vancouver region the cache of waterfront remains strong, with large developers starting some of the largest riverfront projects ever seen. The biggest example is River District, a 130-acre residential and commercial development on the Fraser River in south Vancouver. Once known as the East Fraser Lands, the site is the location of the former Canadian White Pine mill and one of the last pieces of undeveloped

waterfront land in the city. ParkLane Homes and Polygon, two of B.C.’s largest home builders, will begin construction this year. The River District development plan features a mix of townhomes, low- and mid-rise apartments and highrise towers. The future phases of the community will also include shops, a grocery and smallformat retail, a community plaza, two new schools and a community centre. The City of Vancouver and ParkLane have already unveiled plans for the 6,000-square-foot community centre. Vancouver Mayor Gregor Robertson, who attended the

River District launch, called the announcment “a momentous occasion” that opens “a new chapter in the story of Vancouver. This remediated brownfield site, which stretches a kilometre-and-ahalf along the banks of the Fraser River, is getting a new identity. This will be a largescale, mixed-use community with more than 7,000 residential units built in the coming years – a really exciting addition to the city, and reconnecting us to our river and the long history that we have here.” Richmond In Richmond, a massive luxury condominium complex is

being built around the Olympic speedskating oval on the Fraser River waterfront. The 25 buildings of the River Green complex will cover 11 hectares on the south shore of the river on land once owned by the City of Richmond, which sold it for $145 million. ASPAC Development sold out the first 150 condominiums its initial tower to set a Richmond sales record. The sale of the first tower more than covered the cost of land for the entire site. Aspac plans to build six more towers just in the first phase. The opening weekend of sales included 28 homes that sold for more than $1 mil-

lion each: an average price per square foot of more than $700. The opening weekend also saw four penthouses sell at more than $3.4 million each (about $1,000 per square foot), setting a Richmond sales records for both single condominium sale prices and price per square foot. False Creek On False Creek in Vancouver, condo sales at the former Olympic Village finally came to life after prices were adjusted downward. The False Creek waterfront has since attracted other big developers. This spring, Onni Developments unveiled its Central, a “horizontal highrise”

of three towers that includes luxury condominiums, retail space and an office tower at the eastern edge of False Creek. The building is a tower laid horizontally across two smaller supporting towers. The top tower links the two supporting towers, which are parallel to each other, and spans a 25,000-square-foot central courtyard. In all, the LEED development will rise 18 or 19 storeys and offer 304 residential units in two towers, including the horizontal section. Final Vancouver city approval was expected in July, with completion by 2013 at the earliest. For those vendors holding waterfront property outside of the Lower Mainland – and as far east as Alberta’s Sylvan Lake – the return of rollicking demand and higher prices would be welcomed. While both Royal LePage and Re/Max forecast a strong recovery starting this summer, vendors may recall that the same predictions were made in both 2009 and 2010.• 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.

B.C. golf courses in the rough Recreation sector adjusting to challenging times as fewer players, more competition driving trend to discounted rates By Peter Mitham Western Investor

esidents of Prince George consider Pine Valley Golf Centre, a par-three course with a 2,446-yard fairway, a public amenity. Owned by the city since the 1960s but overseen by a private contractor, it doesn’t return much to municipal coffers. The driving range was sold for development in the late 1990s, delivering a significant hit to revenue, but the course continues to provide an intown option for golfers. Its relatively flat fairway is especially attractive to senior players. “We work closely with the contractor to keep the rates as low as possible,” Brad Beckett, manager of recreation and cultural services for Prince George, said. “It’s pretty close to breaking even.” The other major course in town is the Prince George Golf and Curling Club property, which will be sold under plans to relocate the course to a new site north of the Nechako River in Harper Valley. The club’s old course will be redeveloped, including a portion of the adjacent Pine Valley course. But the paths the two golf courses are taking highlight the challenges facing the overbuilt, tax-hit golf

industry in B.C. While municipal courses offer a cheap alternative to clubs and private courses, market forces are requiring golf centres of all stripes to be business savvy. Profit pressure The pressures facing course owners and operators are many, according to Kris Jonasson, executive director of the provincial sport association British Columbia Golf. “Owning a golf course is a very difficult business to make a profit in,” Jonasson said. Golf courses now have to charge HST on green fees, as well as food and beverage services, neither of which bore the old provincial sales tax. Meanwhile, the number of golfers in the province has declined, boosting competition for market share. “The HST is just one part of a very complex puzzle,” Jonasson said. The proliferation of golf courses in the province and resulting competition is the top reason he identifies for the challenges operators face. “The fact that we may be overbuilt now in terms of the number of golf courses that we have given the number of golfers probably has

a bigger impact than the HST does,” he said. The one area of the province where competition is limited is the land-tight Lower Mainland. Here, private clubs grab the top end of the market while municipal courses fill a similar niche to Pine Valley in Prince George. Yet the operating philosophy is significantly different in Metro Vancouver compared with Prince George. Rather than being satisfied to charge rates low enough to break even, courses run by Vancouver, North Vancouver and Burnaby have adopted an entrepreneurial approach to the business. Vancouver, for example, spent $10.5 million repositioning its courses; Burnaby also adjusted its management approach. This is in sharp contrast to some Canadian cities, which are selling off their golf courses, citing low income. A recent audit in Winnipeg, for example, found that its three cityowned courses are more than $8 million in debt and losing about $1 million per year. City-owned courses David O’Connor, assistant director of golf operations for Burnaby,

believes that municipal courses can be profitable. Burnaby realized it couldn’t subsidize its courses; they would have to become user-pay and take an entrepreneurial approach to their operations, he explained. As O’Connor said, “We’re competing against every other public golf course, and we have to be as good or better than our competition.” The city recently opened a $6 million clubhouse at Riverway, one of two regulation-length courses Burnaby operates as well as two short courses and two driving ranges. The culmination of a decade of planning, the clubhouse adheres to a strict business plan that reflects the municipality’s commitment to operating the course – and its other properties – as a business. Prices falling Still, declining demand means golf courses risk getting hurt by falling fees. Courses across the Lower Mainland have been dropping prices to attract players in the face of declining demand. While some peg the drop at as much as 25%, others are more conservative. The picture is complex, a reflection of the variety of influences discouraging players from

teeing off. Rita Rennie, corporate marketing manager for Golf BC, which operates courses across B.C. and in Hawaii, said the weather, exchange rates, passport requirements for U.S. travellers and other factors influencing the tourist trade have all hit the game. Courses at resorts have been hit particularly hard. Prices dropped at Golf BC’s Okanagan courses, including the Okanagan Golf Club and Gallagher’s Canyon properties in Kelowna, because more courses are competing for fewer tourist dollars. Meanwhile, its courses in Whistler have seen fees decline and adjustments to the value proposition players enjoy. Furry Creek, in contrast, cut peak-season rates to $99 from $109. Rennie said the course is becoming established again after taking a hit during Sea-to-Sky Highway construction. Players realize they can get from downtown Vancouver to Furry Creek in about 25 minutes – faster than a drive to UBC after work. • 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.

Technology

Daily business news at www.biv.com July 5–11, 2011

High-Tech Office

Alan Zisman PlayBook scores from various angles for BlackBerry users

t’s become fashionable to comment how RIM is caught in a downward spiral. The Ontario-based company, with its BlackBerrys, had several years at the top of the smartphone market where its emphasis on security and IT manageability made it a favourite of large enterprises. But it hasn’t seemed able to respond to competition from Apple’s iPhone or Android-powered smartphones. RIM’s releases have consisted of small improvements to its Curve and Bold models and awkward attempts at large touchscreen models. In pre-announcing its PlayBook tablet, RIM promised to do better. A new tablet OS for powerful multitasking. Best-of-show support for Flash. Appeal to both business and home users.

W hen t he PlayBook finally became available, though, reviews were disappointing. Wired, for instance, headlined: “BlackBerry PlayBook Tablet Lacks All the Right Moves.” Most often commented: no built-in email application. Instead, users can “bridge” their PlayBook to their BlackBerry and read the BlackBerry’s email on the tablet’s larger screen. The new OS means zero compatibility with BlackBerry apps. “There’s an app for that?” Not quite yet – though selection at RIM’s App World is improving. RIM loaned me a PlayBook for several weeks. Surprise! I like it. It’s a seven-inch tablet. That makes it easier to tote around, lighter and easier to hold in one hand than 10-inch competitors like iPad and Xoom. The wide-

screen display (1024 x 600 resolution) is crisp; battery life, at around eight hours, is good. Like the Xoom, there are micro-USB and microHDMI ports for connection to digital cameras and high-res TVs and projectors and front- and rear-facing cameras that far outclass the pitiful resolution of the iPad 2 cameras. Also like the Xoom (at least in Canada) – Wi-Fi only. No 3G options. (PlayBook owners can tether to their BlackBerry’s 3G connection. No extra charge.) Unlike the Xoom, there are 16- ($499), 32- ($599) or 64- ($699) gigabyte models – priced, in each case, $20 less than the equivalent iPad 2. You can drag and drop files from a Windows PC or Mac (after installing software) to a PlayBook either connected by USB or across

a Wi-Fi network. At first glance, the clean, sleek hardware may present a puzzle. How to get to the home screen for program icons? The PlayBook secret?

The seven-inch tablet is lighter and easier to hold in one hand than 10-inch competitors like iPad and Xoom The frame surrounding the display is “live”; swoop from below the screen to return home. Swoop down to display menus and settings. Swoop left or right to move to another running application. Nice, once you know the trick. The home screen shows the top row of application

icons (tap an arrow to see the rest of your icons) – above that is a parade of running applications. This makes it easy to switch to a different (running) app, and there’s a little (x) under each, making it a no-brainer to shut down any you’re no longer needing, freeing up memory – easier than on an iPad or iPhone and much easier than on Android devices like the Xoom. The browser is fast with (like the Xoom, but not the iPad) convenient tabs. Unlike the Xoom, it usually displays pages laid out like on a “real” computer rather than mobile phone pages. (A very good thing!) Flash support is the best of any tablet – better than on the Xoom, for instance. Hidef video watching, both on the PlayBook and connected to a TV, was very good. About that lack of email/

contacts/calendar apps: I didn’t miss them, since I access all of the above via a Gmail webmail account. On the PlayBook that worked just fine, though I missed being able to share documents or photos as attachments. Reportedly, bridging (via Bluetooth) to a BlackBerry works fine, too, though I couldn’t test it. RIM is promising “real” email (etc.) apps some time this summer, if that’s important to you. Also promised for the summer: 3G versions. And more apps. PlayBook remains a work in progress, but if you use a browser a lot and especially if you’re a BlackBerry user, it may be the tablet for you. • Alan Zisman (www.zisman. ca) is a Vancouver educator and computer specialist. His column appears weekly.

Strategic Marketing

Judy Bishop Startups 2.0 – financing changes a testimony to industry growth

oney of ten u nites people, and so it was in late May when the Canadian Venture Capital Association (CVCA) held its annual meeting of top venture and private equity minds, this time in Vancouver. According to Steve Hnatiuk, event chairman and Vancouver venture capitalist, Vancouver broke every record set in the CVCA event’s 23-year histor y: more than 650 attendees, serious international participation and a deep bench of top-quality speakers and panellists. So what’s going on? It’s all about startup fever. B.C. networking and investor events are jammed. Company accelerators and

incubators are full. In the late 1990s it was all about the new Internet. No one knew how wacky startups would make money, but they built audiences fast and we all bet they could monetize. Thus the Internet bubble formed – and burst – soon thereafter. Things are different now. Yes, it’s all about the Internet, again. But it’s also about mobile technolog y and smartphones, about a very different landscape and different success factors. The startup ecosystem has radically changed. Oodles of startups are using capital-efficient models, benefiting from lower costs and Internet-enabled delivery, and are reaching serious revenue with minute

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investments. It’s dirt cheap to start a company now. Internet bandwidth is huge, even for mobile devices. Storage and computing power are almost free. Mostly free open-source tools enable creation of applications, websites, games and mobile sites. Online business models are proven or low-risk. And huge social media momentum and infrastructure make it fast and cheap to spread the word. For under $100,000, companies can put usable product into customers’ hands for validation and refinement. Once there’s a bit of traction, an angel round can be raised to beef up team and marketing depth. Small wonder that a key theme at the CVCA event was the new breed of angels, super angels and smaller venture capital (VC) funds now prominent in startup investments. A ngel i nvestors a re wealthy individuals who fund business startups, usually in exchange for convertible debt or equity.

Angels are increasingly organizing themselves into groups or networks to share research and pool investment capital. While angels invest their own funds, venture capitalists (VCs) professionally manage others’ pooled money. The pace of angel investing has skyrocketed, now funding over 20 times more startups than VCs. Small investors can breed with small startups to birth incredible companies – all at light speed. Today is a fantastic time for startup investing. Sure, companies may be valued lower than in recent decades, but the cost of achieving those valuations is also a fraction of what it has been – thus delivering much higher investor returns. Truthfully, startups are about fast failure. Sav v y entrepreneurs are emotionally intelligent enough to push hard, but know to cut and run if their market foray fails. Failing fast is much easier when only minimal cash is raised and few investors need to be

appeased. Ah, but here’s the badnews catch. Though starting a company costs a 10th of what it used to, a startling number of startups blow up because they fail to realize that expanding their com-

It’s all about startup fever pany costs twice as much as before. So entrepreneurs expend all their energy chasing money rather than building the business. Once seed capital from angel investors has been spent to obtain market validation, a company’s “rea l ” f inancing ef for t starts: millions in capital that come from classic VCs or super angels – all seeking traditional metrics, valuation and execution. Moving from the seed stage to follow-on financing has changed substantially. According to Amar Varma, managing partner of Extreme Venture Partners, the Holy Grail of early-stage

VCs is now a “race to get in early, then get out as quickly as possible. Building up big, high-value companies requires linking arms and coinvesting with others at different levels of investment and expectation.” VCs now make tiny early-stage cheques to secure a seat at the follow-on table, despite the burden inherent in holding lots of small investments. Today, traditional VCs hold a lower ownership in companies than in the recent past. The implications of all these changes to the companies, angel investors and other financiers in the company’s lifecycle are profound and worthy of a deeper look. Next column: moving from startup phase to company growth. • Judy Bishop (judy@ judybishop.ca) is the managing partner of Bishop + Company, a provider of corporate and marketing services to changing companies since 1991. Her column appears monthly.

Small business

July 5–11, 2011 Business in Vancouver

Local entrepreneurs entertaining new financing options in wake of recession

Dominic Schaefer

For many, selling future sales for cash today is a simpler alternative than navigating the complexities of securing a bank loan

David Gens co-founded Merchant Advance Capital last September and has been buying small-business owners’ future sales since

By Glen Korstrom

ighter bank lending restrictions during the economic downturn resulted in small business owners being rejected more often for loans or having to jump through extra hoops to get that financing. Entrepreneurs who did not want to deal with stricter regulations had few options. That’s changing. When Richmond garage door ma nu fac t u rer Arkadiusz Lewandowski recently needed to borrow $50,000 for his Garador business, he dreaded the idea of going to a bank to fill out reams of paperwork and waste what he considered too much time. Instead, he looked at a concept that Vancouver entrepreneur David Gens is spearheading. Gens launched Merchant Advance Capital Ltd. last September and has since loaned approximately $750,000 to 23 businesses. “We buy future credit- and debit-card sales,” Gens said. “I’ll say, ‘I’ll buy $50,000 of your future sales for $40,000 today. I’ll take 5% of each sale until I get repaid my full $50,000.’” The interest rate varies because a company with slow sales that takes two years to repay the loan would have a lower annual interest rate

than one that has brisk sales and can repay the loan in six months. The model is similar to that of CanaFunding – a New York and San Francisco-based company that has operated in Vancouver since 2007 and has conducted hundreds of transactions in this city, CanaFunding president David Goldin told Business in Vancouver.

“We buy future creditand debit-card sales. I’ll say, ‘I’ll buy $50,000 of your future sales for $40,000 today. I’ll take 5% of each sale until I get repaid my full $50,000’” – David Gens, CFO, Merchant Advance Capital

Company-wide, CanaFunding has bought hundreds of millions of dollars of future sales from small businesses, he said. “I found that, with Merchant Advance, it was a lot easier and a lot quicker to fund the company than it would have been had I gone to a bank,” said Lewandowski, who also considered factoring.

Garador owner Arkadiusz Lewandowski experimented with a new financing option for small-business owners when he borrowed $50,000 from Merchant Advance Capital

Factoring companies pay cash up front to buy a client’s accounts receivable contracts for approximately 80% of the contracts’ value. The factor then waits for payment and performs all necessary legwork to remind the debtor client that the bill remains outstanding. Once the factor gets paid in full, its staff deducts a fee that tends to be between 2% and 5% of the contract’s value. The factor then sends the remaining money back to the client. “I felt that, with factoring, because they take over all your receivables and customers make out cheques to a different company than the one they first deal with, that it portrays not that good an image in most consumers’ minds,” Lewandowski said. “If I was dealing with a company and then they said, ‘You have to send your cheque to this other company,’ I would feel that the company I was dealing with is maybe unstable because, for some reason, their accounts receivable is being handled by someone else.” Business owners such as Jordair Compressors Inc. owner and president Jeremy Rowand agree that this could be a concern. Rowand told BIV that he likes factoring because it can improve cash flow and reduce his number of accounts-receivable staff.

“Business is great,” Pyx Financial Group Inc. owner Cassandra Consiglio told BIV. Her 19-year-old company has 15 staff and more than 36 clients across Western Canada. “Factoring typically does well in an upswing as well as in a downturn,” she said. Tighter lending requirements at banks prompt more companies to try factoring

during recession years. Alternatively, she said, when the boom years arrive, there are plenty of fast-growing small businesses that need supplemental funding and are open to trying factoring. “We’re finding that B.C. is relatively suppressed still in terms of growth, so we did a huge amount of our business in northern B.C.

Through a generous gift made by Maria Logan, a long-time Arts Club supporter, all new or increased gifts to the Arts Club Theatre Company will be matched up to $35,000.

and Alberta over the winter,” Consiglio said. She had not heard of Gens’ business until BIV spoke with her. But Consiglio said she advocates any alternative that accelerates a business’ access to cash flow. Gens left his day job at CAI Capital Management last August to devote himself, along with partner Kevin Ainsworth, to building Merchant Advance. The duo have 22 investors, including one who invested $220,000. Many others invested as little as $10,000. The investors split 80% of the company’s profits. Gens and Ainsworth, who are also investors, get a 20% share of their company’s profits. Gens’ and Ainsworth’s loans tend to be between $30,000 and $250,000 and are usually to businesses that have been operating for at least one year. “One of our requirements is that the business has a physical location and is swiping credit and debit-cards through a terminal,” Gens said. “It’s difficult for us to audit online transactions.” • gkorstrom@biv.com

Maria Logan Photo by Claude Biron

Deadline August 31, 2011

Make your donation today Online: www.artsclub.com Phone: 604.687.5315 x261 Mail: 1585 Johnston Street Vancouver, BC V6H 3R9 The Arts Club Theatre Company is a not-for-profit registered charity and all gifts $20 and more will qualify for a tax receipt. For more information, contact Sheila Kearney Miller at skmiller@artsclub.com or 604.687.5315 x261

Now is the time to give

Food

Daily business news at www.biv.com July 5–11, 2011

Business lunch

Glen Korstrom Vancouver culinary institute upgrades as it prepares for sale acific Institute of Culinary Arts (PICA) owner Sue Singer spent $500,000 in the last few months to renovate the restaurant and bakery at the 15-year-old Granville Island cooking school that she plans to sell within the next two years. That’s on top of ongoing investments to keep her eight kitchens in state-of-the-art condition for students. The 62-year-old has been slipping into retirement during the past few years and now works half-time. “When I’m 65 years old, I want to be able to be gone from here so I can do some travelling before they put me in a home,” Singer said. Finding a buyer should be relatively easy given that her profitable venture has been increasing revenue thanks to a wider range of courses, more corporate events and higher tuition prices for her culinary school’s diploma program. Singer hiked tuition by $500 to $14,575 last year for her culinary arts and baking and pastry arts programs because the curriculum was expanded

“We probably have about a 72-hour supply of food on store shelves in Vancouver” – Brent Mansfield, co-chairman, Vancouver Food Policy Council

to include a foundation-level Wine and Spirit Education Trust course and a food and beverage operations management course. Only 190 of her school’s 216 culinary student spots are filled during the current summer semester, but she said the institute’s September, January and April intakes are usually at capacity. Enrolment at the 30-employee culinary school has been flat the last few years and Singer believes her school will enjoy increased demand from students thanks to a recent federal government decision to give each foreign student who attends PICA an automatic work visa. Previously, only public institutions such as Vancouver Community College were able to offer that perk to international students. The full-time culinary programs makes up about 66% of

Singer’s revenue. The corporate side of her business, which includes teambuilding sessions and oneoff courses on topics such as beer appreciation, generates about 30% of her revenue. Her bakery and restaurant provide the remaining 4%. Wheat yards to provide oasis in urban food deserts Fears that Vancouverites will not have secure access to food following a catastrophe have started to gain traction. The day after Mayor Gregor Robertson championed a pilot project to allow residents to grow wheat on front lawns, the Vancouver Food Policy Council released a 200-page report that provides a snapshot of how illequipped Metro Vancouver is to supply itself with food were supply lines ever to be cut. “[Wheat from Vancouver lawns] certainly isn’t going to feed many families. It’s a demonstration-type crop,” Robertson told media last week. “It’s more a symbol of food security.” Vancouver Food Policy Council co-chairman Brent Mansfield agrees. “There’s a lot of frailties and things that are scary within our food system which makes food vulnerable to sudden changes in prices,” he said. “Because of just-in-time delivery services to grocers, bar codes and the way grocery stores operate, we probably have about a 72-hour supply of food on store shelves in Vancouver.” Mansfield’s report urges tougher laws to protect agricultural land that sometimes doubles as ad-hoc garbage sites when people dump everything from old couches to construction materials. The report also identifies “food deserts” – neighbourhoods where residents are required to drive to get to a grocery store. “Shaughnessy has one food store,” Mansfield said. “Grandview-Woodland has 63 food stores.” Smaller jazz festival boosts hotel business Employees at O’Doul’s Restaurant and Bar had to count heads to ensure they were not over their 200-person limit when Wynton Marsalis stopped by after his June 26 to perform a free jam session. “We had to close doors and not let anyone else in. So we were at capacity if not over,”

Dominic Schaefer

Pacific Institute of Culinary Arts owner Sue Singer: “when I’m 65 years old, I want to be able to be gone from here so I can do some travelling before they put me in a home”

said the restaurant’s sommelier Calvin DesChene. Sales were easily double that of a normal Sunday night. DesChene estimated that sales during the Vancouver International Jazz Festival are usually double what the restaurant does during a normal week because it is a festival sponsor. This year’s jazz festival, however, is about 100 concerts smaller than in past years. Its 2011 budget was $3.4 million – 30% less than the $4.8 million budget the festival had in 2009, when its 10day extravaganza showcased 1,800 musicians at 40 venues attracting more than 500,000 spectators. The result for O’Doul’s was nights during the week that were sluggish given that it was during the jazz festival. DesChene estimated that sales this year during Vancouver’s largest music festival are about 10% less than last year. Cool spring likely to shrink B.C. wine production Hot sunny days have descended on the Okanagan, but winemakers still fret that this year will likely yield a below-average grape bounty. Business in Vancouver paid a visit to Road 13 winery

+ vineyards co-owner Pam Luckhurst in June when, under cloudy skies, her vineyard crew was pruning leaves in her vineyard. “That will enable the grape bunches to get more sun,” Luckhurst explained. Luckhurst said that if the region does not get a long and warm summer, her vineyard crews will likely have to cull grape bunches so the remaining grape bunches will be able to get enough nourishment to fully ripen. It’s similar to how

she culls deadheads from a flower pot on the new outdoor patio of a 10,000-square-foot building that she and husband Mike Luckhurst spent about $3 million to build. The structure houses their new eatery and tasting lounge, which are used mostly for privately booked wine tours where visitors are also able to nibble charcuterie, cheeses and breads. The building also features a mechanical room and storage space. The Luckhursts spent $2

million in order to buy the former Golden Mile Cellars and 24 acres of land in 2003. They rechristened their venture Road 13 and have since bought an additional 22 acres of land. Production has increased from 1,000 cases in their first year to what was originally anticipated to be about 20,000 this year. The Luckhursts say that their new storage space will soon enable them to produce 25,000 cases in a year. • gkorstrom@biv.com

daily online edition

BUSINESS TODAY Dairy farmer to abandon Venture exchange Delta’s IND DairyTech (TSXV:IND) has had enough with the public markets. The China-focused raw milk producer announced plans to consolidate its common shares and cancel a listing on the TSX Venture Exchange. The deal comes a day after IND issued a news release saying it had discovered accounting “errors” in three of its lease

agreements, which were originally treated as capital leases but have since been determined operating leases. Thursday, June 30

AgriMarine to raise bluefin tuna in Japan AgriMarine Holdings (TSXV:FSH) is banking on its proprietary closed-containment fish farm technology to rear one of the world’s most prized fish – bluefin tuna. The Vancouver-based

company said it had entered a research and development agreement with the school of marine science and technology at Tokai University in Japan to use its technology to raise bluefin on a commercial scale. The company, which operates salmon- and troutrearing facilities in China and Canada, said the agreement comes at a time when bluefin fisheries are at risk of collapse due to over-fishing. Monday, June 27

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

FORESTRY REPORT

Sponsored by

Monthly News Report July 5–11, 2011; issue 1132

Tech and forestry sectors join forces

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Lockheed Martin is one of a number of technology companies researching new uses for forest resources as Canada’s lumber companies seek innovative ways to survive industry downturn

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Forest Products Association of Canada spokeswoman Catherine Cobden says new wood-based technologies are already hitting the market

Lockheed Martin, one of the world’s largest defence contractors, has designed and built a wood-fibre-powered heat and power plant (pictured) for its research facilities in New York By Joel McKay

tep aside lumber, the forestry sector needs to embrace stateof-the-art technologies if it’s ever going to shed its cyclical nature. This according to proponents of Canada’s bio-pathways project, an industry-led initiative to seek out and develop new ways to make the most out of every fibre of wood in the nation’s forests. Although the project was launched in 2009, bio-pathways took a leap forward in Vancouver a few weeks ago when a network of forest companies, invest-

ors, high-tech representatives and sustainability experts met at the University of British Columbia to discuss how forest product technologies could be used in other industries. “We have quite an opportunity to produce a wide variety of additional products at pulp and paper and lumber mills in this country,” said Catherine Cobden, vicepresident, economics and regulatory affairs, at the Forest Products Association of Canada (FPAC). “One of the things [bio-pathways] pointed to was growing business relationships and part-

nerships with other segments of the economy,” she said. The focus on cutting-edge technologies began a few years ago when the forest industry was forced to deal with both the pine beetle infestation and the U.S. housing market collapse, a double whammy that bankrupted some companies and forced others to rethink their business model. Since then, FPAC and other forestry sector organizations have been researching novel ways for wood to be used in everything but lumber and pulp and paper. Earlier this year, FPAC pre-

Knowledge gaps. Naturally connected. When your client says, “Let’s use wood,” will you be prepared? Introducing the Architect’s Toolkit, a complete resource that helps you understand the varieties and technical possibilities of British Columbia wood species and products. Building code regulations? No problem. With advances in wood science, today’s building codes allow wood to be used in a broader range of buildings and applications. And it’s all in the Architect’s Toolkit — case studies, wood samples, a buyers guide, and much more — all designed to help you, and your client, get the most out of B.C. wood. British Columbia wood. Sustainable by nature. Innovative by design.

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dicted the global bio-market would total $200 billion in just four years, with Canada accounting for one-quarter of it. A report envisioning that new market explained how wood fibre could not only be used to generate heat and power but also to manufacture clothing, tires, medicines and even airplane parts. “What that tells us is not only can we do this stuff with trees, but there’s a real growing market to be served,” said Cobden. The problem, traditionally, has been getting forestry companies to think beyond dimensional lumber. David Fung, chairman and CEO of the locally based ACDEG Group of Companies, which has its hands in forest products and biomass energy, said industry has been reluctant to shift away from 2x4 production. And that’s made it difficult for new forest product technologies to get off the ground. “We have been abusing our resource because we could afford to,” said Fung. “The time has come when the world has said, ‘Canada, we don’t need you making those low-value

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products’ … if we want to maintain our standard of living it’s time to start using our brains.” But it’s not easy for forestry companies to forget about their bread and butter, especially when the market remains in recovery mode. That’s why the bio-pathways project has brought together different sectors that could leverage their pocketbooks and know-how to get new technologies off the ground. “It’s really hard for a commodity-based industry like the forest industry to think about doing this on their own,” said Cobden. “So what we could do is partner with a chemical company interested in an offering to the marketplace of a biochemical. They already know that market, so the partnership is to bring people together to discuss mutually beneficial relationships.” see Defence, 18

Inside Wood First initiative - 17 Architects want to work with wood First Nations forestry - 18 New licensing plan lauded

Daily business news at www.biv.com July 5–11, 2011

Biggest forestry companies in B.C. Ranked by number of B.C. employees in 2011 Rank 2011

Company

Products

Top local executive

Largest shareholder(s)

Subsidiaries

Revenue Year '10/ founded '09

Net income '10/ '09

No. worldwide No. B.C. staff '11 staff '11

Lumber, engineered lumber, Canfor Corp structural panels, decking, trim, 1700 75th Ave W Suite 100, Vancouver V6P 6G2 and recycled wood P: 604-661-5241 F: 604-661-5235 www.canfor.com siding products

Don Kayne, president and CEO

James A. Pattison

TSX:CFP

Canfor LP OSB L.P. Canfor Pulp LP

1938

$2.4 billion $2.2 billion

$161.3 million ($70.5 million)

4,690

3,800

West Fraser Timber Co Ltd 858 Beatty St Suite 501, Vancouver V6B 1C1 P: 604-895-2700 F: 604-681-6061 www.westfraser.com

Lumber, laminated veneer lumber, panels and plywood and pulp and paper

Henry Ketcham, chair, president and CEO

Henry Ketcham and William Ketcham

1955

$2.9 billion $2.4 billion

$166.2 million ($340.8 million)

6,700

3,500

Lumber, oriented strand board,

Al Thorlakson, executive Al Thorlakson chair Brad Thorlakson, Privately held president and CEO

Tolko Marketing and Sales Ltd.

1956

3,100

2,300

Dominic Gammiero, chair and CEO

Tricap Management Ltd.

Western Lumber Sales Limited MBKK (Japan)

2004

$667.9 million $580.5 million

$27.7 million ($75.3 million)

2,016

2,004

Kevin Clarke, president and CEO

Widely held

2001

$1.2 billion $1.2 billion

($396.9 million) ($4.4 million)

1,800

1,300

Seaboard Shipping

1963

$625.6 million $389.8 million

($3.9 million) ($23.9 million)

1,365

950

1973

4,300

850

$200 million $250 million1

800

770

3 4 5

Tolko Industries Ltd plywood and veneer, kraft paper, 3000 28th St, Vernon V1T 6M1 bins, bio-mass energy, P: 250-545-4411 F: 250-549-5353 www.tolko.com harvest and other value-added products Western Forest Products Inc Lumber, logs, wood chips and 435 Trunk Rd, Duncan V9L 2P9 value-added remanufacturing P: 250-748-3711 F: 250-748-6045 www.westernforest.com Catalyst Paper Corp Specialty papers, directory 3600 Lysander Ln Suite 200, Richmond V7B 1C3 paper, newsprint, market pulp P: 604-247-4400 F: 604-247-0512 www.catalystpaper.com

TSX:WFT

TSX:WEF

TSX:CTL

Fine grain raw material for

International Forest Products Ltd remanufacturing into consumer Duncan Davies, 1055 Dunsmuir St Suite 3500, Vancouver V7X 1H7 products, finished and semipresident and CEO P: 604-689-6800 F: 604-689-6825 finished products and structural www.interfor.com

Fairfax

TSX:IFP.A

building materials

Wayzata Investment Partners LLC, Trilogy Capital LLC, Varde Management LP

Tembec Inc 220 Cranbrook St N, Cranbrook V1C 4J7 P: 250-426-9205 F: 250-426-7055 www.tembec.com

Forest, pulp and paper products

Teal Jones Group 17897 Trigg Rd, Surrey V4N 4M8 P: 604-587-8700 F: 604-581-6162 www.tealjones.com

Western red cedar lumber, bevel, siding, timbers; D. Fir and Dick Jones, president Hemlock lumber; Western red Tom Jones, CEO cedar roofing and sidewall shakes and shingles

Domtar Pulp and Paper Products Inc 2005 Mission Flats Rd, Kamloops V2C 1A9 P: 250-434-6000 F: NP www.domtar.com

Paper-grade, bleached softwood kraft and specialty pulp grades

Weyerhaeuser Company Limited 925 Georgia St W, Vancouver V6C 3L2 P: 604-661-8000 F: 604-661-8377 www.weyerhaeuser.com

Building products - dimensional softwood lumber, engineered lumber (Parallam, Timberstrand), Anne Giardini, president NYSE:WY OSB. Northern bleached softwood kraft pulp

Zellstoff Celgar LP 1921 Arrow Lakes Dr PO Box 1000, Castlegar V1N 3H9 P: 250-365-7211 F: 250-365-4211 www.mercerint.com

Softwood pulp, bio-electricity

Conifex Timber Inc 2925 Virtual Way Suite 110, Vancouver V5M 4X5 P: 250-996-8241 F: 250-996-5420 www.conifex.com

Lumber products and residuals

Richmond Plywood Corp Plywood 13911 Vulcan Way, Richmond V6V 1K7 P: 604-278-9111 F: 604-278-2617 www.richply.com

Gorman Bros Lumber Ltd 3900 Dunfield Rd, Westbank V4T 2G3 P: 250-768-5131 F: 250-768-2822 www.gormanbros.com Babine Forest Products Ltd Highway 16 East, Box 4000, Burns Lake V0J 1E0 P: 250-692-7177 F: 250-692-4595 www.hamptonaffiliates.com Brink Forest Products Ltd 2023 River Rd, Prince George V2L 5S8 P: 250-564-0412 F: 250-564-0796 www.brink.bc.ca

Dennis Rouinsville

TSX:TBC

Alan Hitzroth, managing director of operations Cherie Hanvold, managing director of finance and administration Ken Shields, chair, president and CEO Kevin Horsnell Yuri Lewis, CFO Manjit Sihota, president Terry Davis, vicepresident, sales Joe Andrews, general manager

Tom and Dick Jones

Privately held

Teal Cedar Products, Stag Timber, J.S. Jones, Titan Ridge, Cascade 1947 Cedar, Teal Cedar Lumber NP

2006

8,500

440

1965

13,931

434

None

422

TSX-V:CFF

$57.4 million $31.3 million

($10.8 million) ($10.3 million)

417

Privately held

None

1956

400

Privately held

Oroville Reman and Reload Inc.

1951

$85 million $75 million

405

350

PVR, Houston BC

1975

250

Coulson Forest Products Ltd.; Coulson Aircrane Ltd.; Executive 1960 Transport Airways Ltd; Coulson Manufacturing

200

TSX:UFX

Mercer International (100%)

NASDAQ:MERC

Value-added lumber products

Rick Scott, CFO Ron Gorman, president and CEO

Studs and J grade/export grade framing lumber

Hampton Affiliates

Fingerjoint lumber

John Brink, president and CEO

John Brink

Coulson Group of Companies 4890 Cherry Creek Rd, Port Alberni V9Y 8E9 P: 250-723-8118 F: 250-723-7766 www.coulsongroup.com

Forest products

Wayne Coulson, CEO, Coulson Group Jim Messer, COO Susan Merivirta, CFO

Ainsworth Lumber Co. Ltd 1055 Dunsmuir St Suite 3194, Vancouver V7X 1L3 P: 604-661-3200 F: 604-661-3201 www.ainsworthengineered.com

Oriented strand board, pointSix engineered flooring, stairtreads, thermastrand radiant barrier roofing, webstock for I-Joists

Rick Huff, president and Brookfield Special Situations Fund II CEO Chris Davies, CFO TSX:ANS

None

1953

$329.5 million $285.9 million

$9.4 million ($21.6 million)

610

165

Kalesnikoff Lumber Co PO Box 3000 Hwy 3A, Castlegar V1N 3L8 P: 250-399-4211 F: 250-399-4170 www.kalesnikoff.com Carrier Lumber Ltd 4722 Continental Way, Prince George V2N 5S5 P: 250-563-9271 F: 250-563-9371 www.carrierlumber.bc.ca TimberWest Forest Corp2 856 Homer St Suite 300, Vancouver V6B 2W5 P: 604-654-4600 F: 604-654-4662 www.timberwest.com Ardew Wood Products Ltd 1195 Houston St, Merritt V0K 2B0 P: 250-378-6161 F: 250-378-6313 www.ardew.com

Kiln-dried dimension lumber, FOHC or boxed heart posts, timbers and beams, flooring, panelling and decking

Ken Kalesnikoff, president

Privately held

1939

150

SPF dimension and studs

Bill Kordyban

110

Logs, real estate

Paul McElligott, president and CEO Robert Allen, CFO

TFL Forest Products Ltd., Pacific Forest Products Ltd.

1997

$268.1 million $150.3 million

($60.2 million) ($55.8 million)

1966

14 15 16

19 20 21 22

Privately held

Widely held

TSX:TWF-U

Structural lumber and laminating Erik Norgaard, president Norgaard family stock

Sources: Interviews with above companies and BIV research. NR Not ranked NP Not provided NA Not applicable 1 - 2008 figure 2 - To be acquired by BCIMC and the Public Sector Pension Investment Board for $1 billion

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Forestry Report 17

July 5–11, 2011 Business in Vancouver

Sponsor’s Message

Architects pin blue ribbon on B.C.’s Wood First policy

Knowledge gaps.

Wood-frame building fire in Richmond not a commentary on building code changes, experts say

ot sure what building material should be featured in your next development? The province wants you to choose wood. More than a year has passed since the province introduced its Wood First Act, which requires all provincially funded buildings to use wood as the primary construction material. And architects are signing on in droves to make use of one of B.C.’s most storied resources. “What isn’t good about it?” said Russell Acton, principal of Acton Ostry Architects, who frequently uses wood in his designs. Earlier this year, Acton received a green building award from the Canadian Wood Council for the Salt Building in Vancouver’s Olympic Village. The project required Acton and his team to restore the landmark 1930s-era building. “It’s really about transforming the use of a building but being sympathetic to the original materials,” described Acton. His company rehabilitated the building’s existing wood beams and added new ones to create a “patchwork quilt” design for the ceiling that’s pleasing to the eye. The firm also managed to divert 98% of the project construction waste away from landfills, and sourced 10% of its materials regionally. But the Salt Building wasn’t the first time Acton had featured wood in his designs. In 2007, the firm received an institutional wood design award from the Canadian Wood Council for its King David High School project in Vancouver. “We’re certainly recognized as being champions of wood in B.C.,” said Acton. And he’s not the only one. “We could really see wood was having a renaissance before the Wood First Act came in … architects are really into wood,” said Mary Tracey, executive director of Wood WORKS! BC. But all that support for wood threatened to come

tumbling down in May when a six-storey woodframe building went up in flames. On May 3, a fire engulfed the Remy in Richmond, a 188-unit condo development that was supposed to be B.C.’s first six-storey wood-framed building. The Remy was the result of building code changes that took effect in 2009, allowing developers to build structures up to six storeys high using wood instead of concrete.

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Opponents of the province’s wood-first initiatives immediately lashed out, questioning the safety of taller wood-frame buildings. But architects, engineers and wood proponents shot down the criticism, saying the Remy fire was a freak construction accident. “The Remy fire occurred while the building was under construction,” commented Michael Giroux, president of the Canadian Wood Council. “This meant that fire safety features such as sprinklers and gypsum board protection, as well as fire doors in firewalls, all required in the completed building, had not yet been installed.” Len Garis, Surrey’s fire chief, said the concerns people have about fire safety in taller wood-frame buildings stem from a lack of information. “There’s more fire protection in a mid-rise wood -frame building than in most buildings already in the community,” Garis said. “The Remy fire should not become a six-storey fire issue – Remy was a construction fire.” Vancouver architect Michael Green believes tall wood buildings can be just as fire-safe as their concrete

naturally: wood is an online resource that provides the

Dominic Schaefer

By Joel McKay

Naturally connected.

latest information on wood products from B.C. that are used in markets around the Acton Ostry Architects principal Russell Acton relied on wood to rehabilitate Vancouver’s iconic Salt Building

counterparts. Green said large-scale, engineered wood panels, which are thicker than traditional light timber construction, could safely build fire-resistant towers 20 storeys high. “People automatically think of wood as a combustible building material, but it’s just not that black and white,” said Green, an architect with mgb Architecture + Design. “Mass wood with thickness may burn on its outside, but not all the way through.” Fire issues aside, the province and municipal governments are forging ahead with wood-first initiatives – championing a variety of buildings made with B.C. wood. More than 30 local governments have already committed to the Wood First Act, and the 2009 changes to the building code have resulted in more than 50 new projects that use wood in five- or

six-storey buildings. And the wood craze has even caught on south of the border. In March, the state of Oregon introduced its own Wood First Bill. “Government on both sides of the border can lead by example by making wood

its preferred choice for public buildings,” Jobs Minister Pat Bell said at the time. “With use in just 15% of commercial and institution construction … we have a major opportunity to expand the market for wood products.” • jmckay@biv.com

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18 Forestry Report

Daily business news at www.biv.com July 5–11, 2011

Defence: Lockheed Martin exploring bio-market options from Tech, 15

One company that’s already working with the forestry sector is Lockheed Martin (NYSE:LMT), one of the world’s largest defence contractors. “We’ve got big eyes and big arms so we’re really out there taking a look to see [in] what other areas this bioindustry is moving, some of them being biochemicals,” said Sean McCarthy, Lockheed’s senior contracts administrator, renewable energy products and solutions.

“We have been abusing our resource because we could afford to” – David Fung, chairman and CEO, ACDEG Group of Companies

A lt hough McCar t hy wouldn’t provide details, he did say the company is researching how wood fibre could be used to make lightweight bio-composites for use

in airplanes. Lockheed is also investigating the use of bio-fuels to power jets and has built and installed a biomass heat and power plant at its research facilities in New York. McCarthy is optimistic about the development of the bio-market, saying tree plantations offer fixed costs for businesses while other fuel sources continue to fluctuate. “You know that what it’s going to cost you today it’s going to cost you 10 years from

now. It’s very predictable, very monitored, so it gives great forecastability for a corporation,” McCarthy said. “And it’s renewable, at the end of the day, that’s the very basics of it.” But the success of Canada and B.C.’s new bio-industry depends on one thing: partnerships. Said Fung: “The big issue in bio-pathways is how fast can we start moving in that direction?” • jmckay@biv.com

Giving Guide

2012

Regional PhilanthRoPic oPPoRtunities

Publication Date September 27, 2011

Showcase your non-profit to B.C.’s business and philanthropic 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 to B.C.’s business community the diverse range of non-profit organizations that have a presence right here in the region. Giving Guide provides 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 year-long presence in print and online – will showcase a non-profit’s compelling mission, progress, governance and many other initiatives.

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Briefs

First Nation foresters

Victoria is making it easier for First Nations groups to generate income from forestry. Last month, the province announced a new woodland licence that provides First Nations with exclusive rights to harvest timber on Crown land, manage and charge fees for botanical forest products and practice stewardship. The announcement coincided with National Aboriginal Day and was a response to a 2009 working roundtable on forestry that contained recommendations to make First Nations full partners in forestry. “This is something First Nations have been specifically asking for,” commented Forests Minister Steve Thomson. “We’ve been working closely with them to develop a licence that meets their specific needs and supports their participation in the forest sector.” The new woodland licence is a long-term, area-based tenure. The licence is restricted to aboriginal communities that have signed forest tenure opportunity agreements with the province, and licence holders are required to prepare management and operational plans to maintain compliance with the province’s environmental standards. The province also said the licence is awarded without competition, though holders would still be required to follow all provincial regulations and pay stumpage fees. Victoria added that the licences, which have a minimum 25-year length, make it easier for First Nations to secure investment and loans for forest-sector projects. “This new woodland licence will allow our communities to make their own decisions in their territory, and create economic opportunities for our families,” said Chief Bill Williams, president of the BC First Nations Forestry Council.

Pulp power B.C.’s largest pulp producer has unveiled a state-of-the-art research facility in Burnaby, intended to advance the company’s manufacturing process so it can continue to compete in the global marketplace. Last week, Canfor Pulp Products Inc. (TSX:CFX) announced three major research investments and

opened its Canfor Pulp Innovation Centre in Burnaby. The $10 million facility will employ nine technical professionals who will research and seek out new ways to improve the company’s pulp manufacturing process. On top of that, the company has committed to a $225,000 research grant program with the University of British Columbia (UBC) and the University of Northern British Columbia (UNBC) to research other pulp initiatives. “We want to encourage the wealth of academic talent at UBC and UNBC to dedicate renewed efforts and enthusiasm toward the manufacture and development of products from our forest resource, and thereby contribute to the future of one of the largest and most consistent contributors to provincial GDP,” said Joe Nemeth, president and CEO of Canfor Pulp. The company owns three pulp mills in Prince George, where it employs 1,200 people and produces $1 billion worth of pulp and paper products every year. Canfor also announced an $8 million partnership with government and equipment suppliers to implement advanced sensing technology to improve production at its three mills. Representatives from UBC and UNBC lauded the research initiative.

Market report

The U.S. housing market has yet to bounce back, but Canada’s softwood lumber business is still humming along thanks to continued demand from China. According to Wood Resource Quarterly, a Seattlebased research firm, lumber production was up 16% in southern B.C. in the first two months of 2011. Global demand for softwood, meantime, was approximately 20% higher in the first quarter of 2011 compared with the year before. “Not surprisingly, it is China that has been the major driver in the higher demand for lumber,” Wood Resource noted. “The country’s sawmills are far from being able to meet the increased demand, and as a result there has been a substantial increase in import volumes the past five years.” Meantime, higher lumber production, an increased log trade and a weak U.S. dollar have also pushed global sawlog prices up for an eighth consecutive quarter to US$88.14 per cubic metre. jmckay@biv.com

FAMILY business

July 5–11, 2011 Business in Vancouver

SponSor’S MeSSage

Business on the move With a background in marketing, Mark Hirschi knew that when he and his father bought a moving company, they would have to work on its image, which included paying more for good employees By Nelson Bennett

hen Mark Hirschi was nine, he told his father that a friend got $5 a week for allowance and asked if he could have an allowance, too. But Bob Hirschi is an old-school, self-made businessman who doesn’t believe in debt financing or handouts, so he put young Mark to work in his Vancouver Island window-covering business. Mark earned $1 for each blind he put up in people’s homes. He earned $25 his first day on the job, and an entrepreneurial seed was planted. “I learned a lot about customers and customer service,” said the 28-year-old entrepreneur. The lessons he learned working with his father would come in handy later in life when, at the age of 25, he became general manager and co-owner of a moving company – Action Movers. “I wouldn’t be able to do this on my own,” he said. “Take his experience and my drive; it kind of works handin-hand.” Born and raised in Switzerland, Bob Hirschi was apprenticed as a pastry chef and immigrated to Canada in 1968 at the age of 23. His first business was a bakery he bought in 1971 in Victoria. He started with one store and three employees, and, by 1978, it had become a small chain – the Little Giant Bakery – with 10 stores and 100 employees. He sold the business in 1981 to go to Papua, New Guinea, with his young family to do missionary work (he is a minister for the New Apostolic Church). When it became apparent he’d have a hard time getting a decent education for his son and daughter in New Guinea, he moved his family back to Canada and went into the car restoration business. In 1986, he sold that business, left Vancouver Island for Vancouver and was involved in a variety of businesses. In 2006, he tried to retire, but was

Dominic Schaefer

Father-son combo Bob and Mark Hirschi doubled Action Movers’ fleet in the three years since buying the company

soon back in business – this time with his son. After studying marketing and graphic design at CDI College and BCIT, Mark Hirschi worked as an art director for a marketing company. He was later hired to help manage Action Movers. He ended up running much of the day-to-day business, and managed to increase sales by 15%.

“We have a good relationship. We trust each other and love each other. We work for each one’s benefit” – Bob Hirschi, president, Action Movers

“I could see, if it was run properly, it could make money,” he said. Some moving companies do not present well, the Hirschis said, so Mark went to work cleaning up the company’s image and building its brand. “I want guys clean-cut because they’re representing our company and

they’re going in the home,” Mark said. “So I did start firing a lot of people and hiring a lot more college students, hiring guys with more experience, paying them maybe a little bit more.” In 2008, Bob Hirschi sold a couple of condos (“I’ve always invested in real estate,” he said) and bought the business outright. Bob owns 51% of the company and is president, although he refers to himself as the company’s “gofer.” He handles the accounting and makes sure the fleet of trucks is maintained. Mark owns 21% and is the general manager. Although he cleaned house, Bob Hirschi kept the name, Action Movers, he said, because his efforts to improve the company’s brand and reputation were already paying dividends. Moving companies typically experience lulls, especially at the end of each month, so Mark expanded into providing its trucks and movers to home staging companies. Mark relied on his marketing and design background to improve the company’s branding through the company’s website, which he designed himself, as well as through social media sites like Facebook, LinkedIn

and homestars.com, where consumers can post rants and reviews. Since buying Action Movers, the Hirschis have expanded the fleet of trucks from six to 11 and now employ 40 workers. They have increased sales by 120% since taking over three years ago. In 2010, the company won the Consumers Choice Award for business excellence. Like many family-run businesses, the father-son combo says one of the biggest advantages of working with family is the trust factor. “It’s nice to have somebody you can trust,” Bob Hirschi said. “We have a good relationship. We all trust each other and love each other. We work for each one’s benefit.” Another benefit is that – unlike so many empty-nesters who rarely get to see their children once they retire – Bob Hirschi gets to see his son every day. “Plus I can pass on my knowledge and my experience, because experience you cannot buy.” “When we bought this company, and especially in the last two years, our relationship has gotten a lot more tender, because we see each other ever day,” Mark said. Now 66, Bob said he will stick around for three more years, then plans to retire – this time for good. •

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Landed lessons: •clean up your company’s image, if needed; •put a bit more money into staff salaries to ensure great customer service; •take advantage of company’s reputation by keeping the name, if appropriate; •cultivate new markets so there’s business all year, especially in industries that experience lull periods; and •ensure that relationships behind the scenes are working well.

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20 marketing

Daily business news at www.biv.com July 5–11, 2011

Boardroom Strategy

Mike Desjardins How to fix your meetings. Now.

business, organization or even simply their division or team. How did we get here? Well, most strategy is traced back to military times, so let’s trace back meetings in the same way. Before email and photocopiers and fax machines, if you wanted multiple people in a company to hear the same message and get on the same page you had to hold a meeting or send out a letter that was typed multiple times by the steno pool. With today’s technology most of the items covered in meeting updates can be easily sent in advance as pre-reading or simplified into key metrics (on-target, ahead, behind, unknown), focusing on what really matters. Now I’m not for abolishing meetings. There is an approach that I’ve seen work most effectively for weekly team tactical meetings that focuses on quick updates, key metrics, a time limit and no set agenda going into the room. If you’re thinking, “No

et me paint the scene: you have a group of executives and senior managers, all well-paid, spending most of their weeks in meetings pretending to be paying attention to mindnumbing updates being read from the document they have sitting in front of them while doing the “BlackBerry/iPhone Prayer”: holding their smartphone under the table, replying to email, texting or furiously working to beat their high score on Angry Birds. One of the most common complaints I hear from CEOs, executives and senior managers is that they spend most of their time in meetings, unclear what the purpose is other than the fact that the meeting is supposed to happen once a week, leaving them with little one-on-one time with their teams, desperate to clear out an overflowing inbox and dreaming about having some whitespace in their calendar so they ca n be innovat ive a nd think creatively about the strategic direction of the

set agenda, how would anything ever get accomplished?” – fear not. The agenda is set during the meeting itself based on the top priorities for those attending, the key metrics and where people feel stuck. Here’s a framework you can use to structure weekly recurring tactical meetings within your business. Personal update: Everyone shares the good, bad and ugly of what’s going on with him or her personally and in the business. This not only helps explain everyone’s context, it also helps build deeper relationships of trust. Top three: Have everyone in the room state the top three things they are focused on over the next week. Stuck poi nts: Have everyone list what the No. 1 thing is that is holding them back from being successful in their role that week. It can be anything from resources, health, time, people, information, technology, etc.

Top 3-5 metrics: As a team, decide what your top 3-5 metrics are – the core numbers, financial and non-financial, that you need to watch weekly. Think of these as the “canary in the coal mine” helping you to forecast what’s

human resources as well as sales and marketing. The CEO was introduced to a rock star candidate through an industry colleague. They met and the CEO was impressed, eventually inviting the potential executive to meet with the team to see if he would be a good fit. Much to his surprise, when he announced the plan, he got significant resistance from each person and was told the role would interfere with the ability of the organization to move forward. The result: a complete loss of trust in the CEO by the executive team members.

make that cut can most likely be dealt with “offline.” Rank the agenda and dive in: Go through the 3-5 items on the agenda and rank them in order of priority so you’re focusing on the most important things up front. That way if you run out of time, at least you’ve tackled the biggest opportunities and challenges. Accountabilities, decisions and communications: Have everyone who is responsible for an accountability or decision list out their understanding of it, along with the timeline and who they need to communicate outcomes to. Good news: Have anyone in the room share any good news that the rest of the team might not be aware of. Appreciations, difficulties and closing statements: As a way of closing, have each person share an appreciation, difficulty (what he or she liked or didn’t like about the meeting or something someone did) and any closing state-

ments he or she would like to make before heading back out into the fray. In my experience, it takes a good month or two of using this format with your team until you really start to see the leverage you can create. After implementing this format it’s not uncommon for executives and team members to say, “We’re actually getting things done; I paid attention through the whole meeting, and I’m excited about what we covered today.” Ye s , t he y ’re ac t u a lly talking about a weekly meeting they “have” to attend. Strange, but true. •

He also did not give the other executives the opportunity to have a say in the decision and to help with the development of the role to ensure there were clear interdependencies with other management functions. Lastly, he did not give anyone on his team the opportunity to express his or her own interest in the new role before he began recruiting.

cuss the business outcomes of the new position and then work together as a team to finalize the role description.

CEO solution Leaders must follow the principle that strategy drives structure and role clarity. At the outset, our CEO should have explained the thinking behind the need to change the team structure and then defined the new role and its responsibilities. In clarifying a new job, it is important to seek the input of each team member individually. Give all executives an opportunity to dis-

In order to identify the best recruiting process for the new role, discuss the pros and cons of doing an internal search versus working with an external recruiter and demonstrate that a key position such as a COO will require the help of external experts. And to retain top talent, give anyone on the team who wishes to apply for the new job the opportunity to do so, provided he or she has the

required skills, behaviours and experience to deliver results. Finally, to further minimize resistance, give everyone the chance to participate in the recruiting process, including meeting potential candidates and having input to the final selection decision. In this case it took the CEO three months to rebuild his team and earn back its trust. By that time, the original COO candidate was long gone and the firm wisely sought external recruiting help. Four months later, a COO candidate was finally hired. •

One of the most common complaints I hear from CEOs, executives and senior managers is that they spend most of their time in meetings, unclear what the purpose is going to happen in your financial future. Build the agenda: After hearing everyone’s updates, top threes, stuck points and the company metrics, decide which 3-5 items need the collective brain power in the room to tackle. Those items that don’t

Mike Desjardins is the CEO at ViRTUS (www.virtusinc. com), an organizational development consulting firm with expertise in strategic planning and implementation, leadership development, change management and succession planning for medium to large organizations. He regularly blogs at www.mikedesjardins. com.

CEO Advantage

Nancy MacKay Get buy-in before adding to your executive team to free up his time to continue working the company’s growth strategy so he decided to expand the executive team with a new COO role. Up to this point, the group had consisted of a CFO, CIO and vice-presidents of

CEO challenge The CEO of a high-growth company had just completed a successful acquisition and wanted to ensure the new addition was well integrated into the organization. At the same time, the CEO needed

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ld. s of the wor ibers subscr fortunate part es and adults in less Global issu lthy dose of Interests: hea Passions and work coupled with a ® n lines aria ss ! anit ed ine side Nak hum ist Bus es Name: on the tour & Thinketh, Jam rganization world travel wholesale hor: As a man Business/O : We are a ium under Current Read, Aut us/Specialty Business Foc ent company for prem parents agem Allen I admire my ngs and brand man ire/Why: , inni sational, sexy Someone I Adm e from humble beg sen r e garments thei mak for cam and antage: We ear using because they t life for themselves Business Adv adian made underw deliver Can created a grea ed fabrics that comfortable te to my tally accredit omers. children. I would invi ectly cust environmen (of all time) perf value to our m d), Five people ing: Actually I’d be exceptional oxerbrief.co her a (my girlfrien edb gat Jann .nak ner din www d with Website: break brea mother. and er content to fath hers, my not a solitary on my two brot “Success is Foundati or Motto: Primus Business Tip Joel has e: it om Nam erbrief.c opportunity I’m act” @nakedbox For all the Founder eneurs E-mail: joel TV Show: tle: CEO / adian Entrepr ! t Favourite /Position/Ti fellow Can ’s Den e up with grea Occupation lems, com ure customers given me and to say CBC’s Dragon is that Solve prob e e ens hav do: plac I to ntly A g at orta Wh goin e. tination: and most imp happy and happy! Holiday Des the seven days I’m ther new ideas Favourite es are happy, things I’m blue sky for and colleagu ation or box full of hot and has nity Organiz n. At Naked® we : I have a big tough time ite Commu stio Credentials of yet I may have a our que Fav h great toug as : That is a to work with so many proud of but credentials! rity Cha and as eneur; ortunity ortant selling them d: Entrepr have the opp that target a very imp We’ve worked s l Backgroun organization be it locally or globally. ways, the Professiona ete; student Path d, specific nee pice, Pacific . amateur athl thers, Hos zen ® with Big Bro Project World Citi e stuFF d and ng Naked Fun g to seei n Favourit bin lly Bur Fina s Subscri of my Busines ievements: I have a lot Reason for And . real Favourite It’s Favorite Ach was very rewarding. e it’s local. lves out it! that. BIV: Becaus hit the she can’t live with to thank for lopments and partner Alex great people ng ainable deve provide sust s for children and you Goals: To nitie ortu l opp educationa

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CEO mistake The CEO had made three critical mistakes. First, he did not explain at the outset why he felt a COO role was necessary to set the team up for greater success.

Leaders must follow the principle that strategy drives structure and role clarity

Nanc y Ma cK ay i s the president of MacKay & Associates (www.mackayandassociates.ca) and the CEO coach and facilitator of 15 CEO and executive forums across Canada with more than 150 members.

Law

July 5–11, 2011 Business in Vancouver

Successfully suing vandals is rare Class action lawsuits against city or police more likely to succeed than those against hooligans who damaged property By Glen Korstrom

aunching civil cases against rioters who smashed property and looted merchandise from business owners during Vancouver’s June 15 riot may make business owners feel empowered, but their chances of success are slim. “There are not a heck of a lot of cases where damages are awarded against petty vandals,” said Borden Ladner Gervais LLP partner David Crerar. “That’s just the reality because of the cost of prosecuting a claim like that when you measure it against the great unlikelihood that the vandal will have money to pay damages. There aren’t a lot of cases out there.” Photographic evidence is persuasive, Crerar said, but the key for plaintiffs is to be able to “authenticate” those photos and have a witness confirm that the photos are genuine. Blenz Coffee CEO George Moen told media he is determined to sue looters. London Drugs president Wynne Powell, meanwhile, is waiting for looters and vandals to first be tried in criminal court. If judges do not order restitution, he plans to sue those whom he can identify. “We’re currently trying to decide the most cost-effective way to do it,” Powell told media one week after the riot. Exactly what will be covered by insurance is still being determined because the drugstore chain’s policy may provide its insurance companies with what Powell calls an “out.” Acts of war and mass civil disobedience, such as a riot, may enable insurance companies to deny compensation. Powell, however, contends that the damage and theft at his store was premeditated by thieves who took two hours to bash in London Drugs’ windows and then selectively take high-priced computers while leaving cheaper ones behind. Powell has spoken with smaller merchants who don’t have the resources that London

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Dominic Schaefer

Fasken Martineau partner Andrew Borrell: if any class action lawsuit is successful at getting damages for owners of property damaged in Vancouver’s June 15 riot, it will be one targeting the City of Vancouver or the Vancouver Police Department – not the vandals themselves

Drugs owner, the H.Y. Louie family, have. Some of those business owners have told Powell that they want to join London Drugs in any civil actions that it takes. Class action lawyers, however, say the best chance of a class action lawsuit succeeding would be one against the City of Vancouver or the Vancouver Police Department, not the vandals themselves. Businesses could band together to argue that mistakes by authorities somehow contributed to their property damage, said Fasken Martineau LLP partner Andrew Borrell. Getting damages out of vandals will be difficult. “In most cases, vandals would have been involved in activities in relation to one business or maybe two businesses,” Borrell said. “You will have different collections of vandals arguably damaging each business. There might be some overlap, but not a lot. The reality is that the claim

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for each business is going to have to be specific to the vandals that damaged each business.” Criminal courts sometimes order guilty vandals to pay victims compensation but those payments are usually not that high and, when the vandalism is part of a riot, are rare. Quebec justice Denis Laliberté ruled in 1995 that if someone is being sentenced for participating in a riot, the purpose of the sentence is to deter future riots. Imprisonment is likely

gkorstrom@biv.com

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the greatest deterrent, he reasoned. So, Laliberté sentenced Andrew Fuller to six months in jail, probation and 150 hours of community service for taking part in a riot in Montreal following the Montreal Canadiens’ 1993 Stanley Cup victory. Laliberté ordered no fine or restitution. Mischief during a riot in Penticton in 1991 prompted a judge to sentence George Glenn Loewen to six months in jail and 150 hours of community service. Loewen also had to pay three nominal fines of $35 each for vandalism such as damaging a fruit stand. Then there’s the case that stemmed from what became known as the Canada Day riot in Edmonton in 2001. Offender Mattieu Jacques offered to donate $1,000 to a foundation, whose building he had vandalized. An Albertan court, however, told him that a more appropriate fine, in addition to a conditional sentence, was $500 because many others were also involved in damaging the structure. Some of the most watched video from Vancouver’s June 15 riot involved vandals setting two police cars ablaze – an act that an Albertan court decided did merit restitution. A drunk Leonard Cantois was not part of a riot when he set two RCMP cars on fire in 2005, causing $58,000 in damage. An Albertan court in 2006 ordered him to pay $10,000 in restitution and to take an alcohol treatment program. •

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22 Law

Daily business news at www.biv.com July 5–11, 2011 Family law

Nicole Garton-Jones Turn to mediation for family business meetings

here is a lack of a common definition of a family business, but it is generally considered to be a business with two or more family members who have financial control of the company where there is some intent to transfer the business to the next generation. Family businesses are often reflected as a system of three intersecting circles: the business circle, the family circle and the ownership circle. The most successful family businesses have a balance and clear boundaries between the three circles with professional business management, responsible ownership and a harmonious family culture. Assisting families to successfully manage the three spheres presents difficult dilemmas. How do you balance individual desires and differences with the interests of the family and the

development of a shared vision? Are the interests of the business or the family more important? How do you celebrate tradition and successes of the past while focusing on the future and a rapidly evolving business climate? What does it mean to be a successful business owner and how does that differ if you do or do not have a role in the family or business management circles? How does the business successfully transition from the founding entrepreneur to the sibling partnership to the cousin consortium stage? Succession is the greatest longterm challenge that most family businesses face. Less than one-third of family businesses make it to the second generation and only approximately 13% make it to the third generation. The failure to plan and manage succession well is the greatest threat

to the survival of a family business. This not only has significant impacts on the hopes, dreams and wealth of individual family members but also on the greater economy as a whole given the pivotal role family businesses play. The most successful succession plans involve careful planning over many years, and it is the CEO’s responsibility to initiate and manage the process in a timely manner. The CEO must: •develop a strategic business plan, create a process to identify and choose successors and train potential successors; •ensure that an adequate estate plan is put in place; •prepare the family for succession, often through the development of a family mission statement that elucidates the family’s relationship with the business; •ensure that the next generation of owners is educated on how to be effective owners and to function well as a co-ownership team; and •focus on preparing for a financially secure and enjoyable retirement or second career. Given how high the stakes are

and its pivotal role in the future of the individuals involved and the business itself, the succession process can be filled with tension and conflict between individual and collective family, business and owner stakeholders.

Less than one-third of family businesses make it to the second generation and only approximately 13% make it to the third generation One way to manage the complexities of the family business succession process is through professionally mediated family meetings. A professional mediator can assist by: •convening the meeting, including determining who will participate and obtaining buy-in for the process from all the parties; •assigning roles and responsibilities, including setting the agenda and ground rules; •facilitating group problem-

solving, including involving appropriate experts; •reaching and recording an agreement; and •holding parties to their commitments, including monitoring changing circumstances and arranging to reconvene as necessary. Whatever the purpose of convening a family meeting, the process of gathering as a family to communicate in a structured way can encourage members to act on important and shared values, with valuable results for both the business and the family alike. Family meetings also often spark a desire to codify a family constitution or mission statement articulating the family’s values and the mechanism by which they are expressed in the business, the family and the community as a whole. Succession may be the most difficult life cycle of a business, but it also has the highest rewards. Why not start today? • Nicole Garton-Jones is the owner of Heritage Law and a 2010 Business in Vancouver Forty under 40 winner. www.bcheritagelaw.com

Trouble

DISCIPLINE •

The British Columbia Securities Commission

A British Columbia Securities Commission (BCSC) panel has fined and ordered a 20-year market ban against a man who illegally distributed securities, provided false information to investors and employed boiler room techniques for the purpose of trading securities, the regulator announced June 22. Thomas Joseph Sears and his company, Royal Crown Ventures Group Ltd., raised $1.9 million by distributing shares to 95 investors (including 56 B.C. residents) without being registered and without filing a prospectus. The panel also found that Sears and Royal Crown made false statements with the intention of trading Royal Crown securities,

and that they telephoned residences in B.C. for the purpose of trading securities. For his misconduct, the panel banned Sears from trading in securities, purchasing securities or exchange contracts, and from becoming or acting as a director or officer of any issuer, registrant or investment fund manager for 20 years. He is also prohibited, for the same period, from becoming or acting as a registrant, investment fund manager or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market. The panel also ordered Sears to pay an administrative penalty of $1.9 million, noting that although fraud was not alleged, Sears engaged in an illegal distribution,

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made misrepresentations in doing so and profited from his misconduct. In addition, there was no evidence that Royal Crown was a legitimate business enterprise or that investors would recover their investment. In addition to the orders against Sears, the panel also permanently cease-traded Royal Crown Ventures Group Ltd.

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 June 13, 2011 to June 17, 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. Action Care Carpet & Furnace Cleaning, Coquitlam Aeroplan Centre, Vancouver Babas Travel Ltd., Vancouver BC Canine Training Centre, Richmond Bell Disposal Service Ltd., West Vancouver Canadian Hemp Co., New Westminster Canadian Massaging Chairs, Langley CanPages Inc., Burnaby CanPharm, Surrey C-Blu Service & Supplies

Ltd., Surrey Celtic Studio, North Vancouver Central Heating & Plumbing, Prince George Chateau Quality Drycleaners Corp., Richmond Clover Glass Ltd., Port Coquitlam Cloverdale Computers, Surrey Coast Solarium & Patio Inc., Langley ConsumersReward Solutions, Vancouver Cost Less Appliances, Surrey Cronos Pizza, Richmond Crystal Glass Canada Ltd., Burnaby Daimler Chrysler Canada Inc., Windsor Duet Introductions, Surrey E Q 3, Vancouver Eaton’s Commercial & Residential Services Ltd., Burnaby Electronic Arts Canada, Burnaby Electronics Unlimited, Kamloops Essentialmall.ca, Vancouver Euro Star Moving & Storage Ltd., Burnaby Fast Income Pro, Vancouver Genies Fine Dry Cleaning, Surrey Globaltec Distributors Ltd., Burnaby Good Deal Stone & Cabinets, Richmond Harbour View Cleaners, North Vancouver Hastings Street Animal Hospital, Burnaby Highmark Homes Ltd., Delta Hockey Shop Source For Sports, Surrey IRG, Langley James Haworth & Son Ltd., Kelowna John Robert Powers, Vancouver Johnston Simister Tax

Services, Chilliwack Kensie, Burnaby Lienbor Custom Cabinets, Surrey Lougheed Laser Dental Group, Burnaby Nomorerack Retail Group, Vancouver Nova Moving & Storage Ltd., Maple Ridge O Soleil Soleil Tanning Salon, Port Moody Okanagan Hosting, Kelowna Our Little Secret Corp.,Vancouver Oxygenergy Electronics, Richmond Phoenix Upholstery, North Vancouver Pink Lotus Florist, Surrey Plentyoffish Media Inc., Vancouver Pro Gas & Heating, Surrey Red Door Discount Warehouse, Vancouver Smart Energy (BC) Ltd., Abbotsford Superwebhost.com, Surrey The Source By Circuit City, West Vancouver Triple A Fresh Produce Inc., Maple Ridge Two Small Men With Big Hearts Dispatch Office, Surrey Valetor Cleaners Ltd. West Vancouver, West Vancouver Valley Furnace Service Inc., Langley Valley Mobile Mechanic, West Kelowna Vancouver Auto Liquidation Centre, Richmond Vanish Day Spa, Surrey Volco Tires Ltd., Richmond Whistler Limousine, Whistler Xenis - Fine Wooden Dolls, Aldergrove Yellow Pages Group, Burnaby The following companies have responded to the BBB subsequent to being

published: Advanced Parking Systems Ltd., Vancouver J & M Coin & Jewellery Ltd., Burnaby Matsqui Stables Inc., Abbotsford Mid-City Roofing & Sheet Metal (2008) Ltd., Kamloops Modus Enterprises Ltd., Vancouver Vista Realty Ltd., West Vancouver

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. Defendants: J. Morash & Co. and James Morash and Francine Morash 301–1665 Ellis St., Kelowna and 1415 Menu Rd., Kelowna Plaintiff: The Bank of Nova Scotia 2900–550 Burrard St., Vancouver Claim: $259,170 against J. Morash & Co. for a credit agreement; and $259,170 against Morash for a credit agreement; $100,000 against Francine Morash for a credit agreement. Defendants: Prosper Media Group Inc. and Craig Brown 607–1708 Dolphin Ave., Kelowna and 2360 Shannon Woods Dr., West Kelowna Plaintiff: Rhino Print Solutions Inc. 13880 Mayfield Pl., Richmond Claim: $98,934 for debt for printed goods and related

Law 23

July 5–11, 2011 Business in Vancouver

Trouble Lawsuit of the week

Neighbours head to court over mirrors, denied access A duplex owner is suing neighbours on an adjoining property for allegedly diminishing the duplex property value by speaking belligerently to realtors, impeding access to the duplex property and installing roof mirrors that reflect directly into the duplex’s master bedroom. Duplex owner K M Developments Ltd. filed civil suit in BC Supreme Court May 11 against Peter Michael Vekens and Margaret Jane Vekens, who own the property at 901 Richmond Place, Port Coquitlam, directly behind the duplex lands at 3901 and 3903 Cedar Drive. According to the suit, tension between the property owners dates to last year’s construction of the duplex, during which Peter Vekens allegedly told K M Developments principal Kevin Kerrigan that he was extremely unhappy about the height of the duplex being constructed. Since then, the suit alleges that the defendants have installed “mirror-type devices” on the roof of their home, “such that when the sun is shinning [sic] it reflects directly into the master bedrooms of both duplexes located on the K M lands.” The suit further alleges that Vekens has advised Kerrigan “that he will take whatever steps he can to make the sale of the duplexes difficult for the plaintiff.” The plaintiffs claim that Vekens has been belligerent and confrontational to realtors and others viewing the property; impeded access to the gate at the rear of the property by placing a steel partition in front of the gate; zip-tied the lock at the gate at the rear of the property; and attempted to interfere with the potential sale of the lands. The plaintiff alleges that the lands’ value has been diminished as a result of the defendants’ actions and that unless the nuisance is abated, will continue to diminish in value. The plaintiff is seeking judgment equal to the loss in value of the K M Lands caused by the actions of the defendants; an injunction enjoining the defendants from placing mirrors and other reflective devises on the roof of their home; and general and punitive damages. In a response to the civil claim filed June 10, Peter Vekens and Margaret Vekens admitted to two mirrors installed on their roof for approximately one month for “aesthetic purposes” but denied that any reflection of sunlight struck any portion of the K M lands in “any material manner.” The response admitted to verbal contact with realtors but stated that that occurred “at the invitation of the realtors” and did not interfere with their work. It did not admit to impeding access to the gate at the rear but said that the defendant’s alleged actions in doing so were in furtherance of his rights to protect his property and the driveway access. It denied zip-tying the gate lock and said the defendants “have done nothing which in fact interferes with sale of the K M lands in any manner.” On June 10, Peter Vekens and Margaret Vekens launched a counterclaim against K M Developments alleging trespass and nuisance. The Vekens are seeking damages, an injunction prohibiting the plaintiffs and their agents from trespassing on the Vekens’ lands and driveway access, and a declaration that the Vekens and the Vekens’ lands are entitled to a right of way and easement between the lands and the roadway at Richmond Place, exclusive to the Vekens lands and the Vekens and to the exclusion of any right of way, easement, or other interest attached to the K M lands. None of these allegations has been proven in court.

services. Defendant: HRG Healthcare Resource Group Inc. aka Healthcare Resource Group Inc. 800–885 W. Georgia St., Vancouver Plaintiff: Altec-Gbogh Research Inc. 700–625 Howe St., Vancouver Claim: $86,458 for debt related to the manufacture of an LCD mounting arm system. Defendant: Norman Ronald Weisse 44–254 Hwy. 8, Merritt Plaintiff: CIT Financial

Ltd. 207 Queens Quay W., Toronto Claim: $85,380 for debt related to an equipment lease. Defendants: 818Channel Media Inc. and Claudia Man Ling Ng 6615–8181 Cambie Rd., Richmond and 7038 Vivian St., Vancouver Plaintiff: Business Development Bank of Canada 700–595 Burrard St., Vancouver Claim: $37,911 for debt arising from a loan agreement.

Defendants: Thanh Tuyen Bui and Ha Van Phan and Vu Hung Le and Jane Doe and John Doe 211 232 St., Langley Plaintiff: British Columbia Hydro and Power Authority 333 Dunsmuir St., Vancouver Claim: $37,869 for electricity diverted for a marijuana grow-op; and damages. Defendants: R.J. Fedorchuk Medical Inc. and Randy James Fedorchuk and Joan E. Fedorchuk 4th floor, 3201 30th Ave., Vernon and 113–5835 Hampton Pl., Vancouver Plaintiff: Royal Bank of Canada Box 5050, Station A, Mississauga, ON Claim: $37,835 for debt against R.J. Fedorchuk Medical Inc. and Randy Fedorchuk. A declaration that the security agreement is a security interest charging the collateral specified, against R.J. Fedorchuk Medical Inc. $30,705 against Joan Fedorchuk. Defendants: Beaumont Timber Co. Ltd. and John Herbert Halliburton 7836 Melford Rd., Vernon and 511 Ponderosa Cres., Salmo Plaintiff: Her Majesty the Queen in right of the Province of British Columbia 1301–865 Hornby St., Vancouver Claim: $33,537 for damage to a bridge after it was struck by a trailer. Defendants: Dan K. Lawrence and Shylah Rayne Dobbin and Joel St. Ange and Paul Johnson and Nigel Page and Jane Doe and John Doe 30211 Brackley Ave., Mission Plaintiff: British Columbia Hydro and Power Authority 333 Dunsmuir St., Vancouver Claim: $32,870 for diverted electricity used for a marijuana grow-op; and damages. Defendants: Godfrey Chan and Linda Ma and Jessica Chan and Yan Tan 38 W. 59th Ave., Vancouver and 9319 70 Ave., Grande Prairie, AB Plaintiff: Regent Park Fairchild Realty Inc. 281 E. Pender St., Vancouver Claim: $27,954 for debt for unauthorized cellular device costs against Godfrey Chan; and damages. A declaration that the defendants were unjustly enriched, arising from the unauthorized cellular device usage, against all defendants; an order; and damages. Defendant: James Dean Riehl and Lorraine Brown and Riehl Rock Landscaping Ltd. 2047 Majestic Cres., Abbotsford and 29665

Sangara Ave., Abbotsford and 305–2692 Clearbrook Rd., Abbotsford Plaintiff: General Bank of Canada 1600–925 W. Georgia St., Vancouver Claim: $27,726 for debt related to a vehicle purchase. Defendants: Valentin Farkas and Vera Farkas and V&V Refrigeration & Air Conditioning Ltd. 7820 Broadmoor Blvd., Richmond and 8121 Cedar Springs Rd., Whistler and 210–11791 Hammersmith Way, Richmond Plaintiff: M.M. Welding Inc. 418–933 Seymour St., Vancouver Claim: $6,750 for renovation work against V&V Valentin; and a declaration for a $7,000 builders lien against Valentin and Vera. Defendants: Enseicom Inc. and CBS Outdoor JCDecaux St. Furniture Canada Ltd. and City of Vancouver and South Coast British Columbia Transportation Authority dba TransLink 225 Rue Norman, Montreal and 800–885 W. Georgia St., Vancouver and 453 W. 12th Ave., Vancouver and 1600–4720 Kingsway St., Burnaby Plaintiff: Sonja Isch Address unavailable Claim: Damages for injuries sustained when a transit bench collapsed beneath the plaintiff. Defendants: S.O.F. Air Inc. and Ken Batten 1070 Kristen Dr., Medford, OR Plaintiff: Heliproducts Industries Ltd. 350–18799 Airport Way, Pitt Meadows Claim: Damages for breach of contract after a helicopter journey log was fraudulently changed during a lease agreement. Defendants: Dr. David G. MacKenzie and The Spinal Decompression Institute 101–1108 Austin Ave., Coquitlam Plaintiff: Daniel Calli 700–375 Water St., Vancouver Claim: Damages for treatment for low back difficulties, which made them worse and caused a neck injury; loss of earning capacity; and cost of health-care services. Defendants: John Doe’s 1-75 and Jane Doe’s 1-75 Addresses unavailable Plaintiff: Blenz the Canadian Coffee Co. Ltd. and Blenz Coffee Ltd. 490–1177 W. Hastings St., Vancouver Claim: Damages for loss of revenue, profit and opportunities related to damage that occurred during the June 15 th Stanley Cup riot. Defendant: Hyun Joo Uh 4154 Ontario St., Vancouver

Plaintiffs: Onni Victoria Hill Nine Development Limited Partnership and Onni Development (Victoria Hill Nine) Corp. 1700–1075 W. Georgia St., Vancouver Claim: Damages for breach of purchase and sale contracts for three units at the Carlyle at Victoria Hill in New Westminster. Defendants: Young Su Lee and Myung Sook Shin 545 Austin Ave., Coquitlam Plaintiffs: Onni Victoria Hill Nine Development Limited Partnership and Onni Development (Victoria Hill Nine) Corp. 1700–1075 W. Georgia St., Vancouver Claim: Damages for breach of purchase and sale contracts for a unit at the Carlyle at Victoria Hill in New Westminster. Defendants: Jessica Murphy and Sachit Shah and Beautiful Canadian Laser and Skincare Clinic Inc. and Syneron, Inc. and ABC No.1 Ltd. and ABC No. 2 Ltd. Address unavailable and 101–13805 104th Ave., Surrey and 201 Selby St., Nanaimo and 544–523 W. 6th St., Los Angeles addresses unavailable Plaintiff: Tanya Henton 601–815 Hornby St., Vancouver Claim: Damages for bungled treatment for cellulite that resulted in burns, discolouration and permanent scaring; the value of care provided by relatives and others; and health-care costs. Defendant: JJM Construction Ltd. 2300–550 Burrard St., Vancouver Plaintiff: Buckingham

Industries Ltd. 1100–925 W. Georgia St., Vancouver Claim: An injunction requiring JJM to remove all equipment, materials and supplies from the Buckingham Lots or any property of Buckingham, arising from JJM’s trespass on the lots as part of the South Fraser Perimeter Road project; orders; declarations that JJM has trespassed upon and damaged the property of Buckingham; and damages. Defendants: Lawrence Kau aka Larry E. Kau and Colleen Walker and Konstadin Michopoulos aka Konstandin Michopoulos N 2316, Mehring Rd., Jefferson, WI and address unavailable and 1406– 1250 Quayside Dr., New Westminster Plaintiff: Dorex Minerals Inc. 1300–1111 W. Georgia St., Vancouver Claim: Damages against Kau and Walker for breach of fiduciary duties and obligations. Damages against Michopoulos for wrongful conversion and unauthorized use of confidential Dorex business and records and interference with Dorex’s economic relations with the exchange and its shareholders; and an order. Defendants: Gateway Appraisal & Consulting Group Inc. and Beverly Pay and Warren Fletcher 700–5951 No.3 Rd., Richmond and 413–1000 Bowron Cres., North Vancouver Plaintiff: CMIC Mortgage Investment Corp. 300–1681 Chestnut St., Vancouver Claim: Damages for losses

www.dorsey.com Suite 1605 Pacific Centre | 777 Dunsmuir St P.O. Box 10444 | Vancouver, BC V7Y 1K4

tel: 604-687-5151

24 News

Daily business news at www.biv.com July 5–11, 2011

Province to fund Vancouver Island rail If Ottawa finances the remaining $7.5 million, the track overhaul could boost freight business, attract tourist dollars and increase Victoria-bound commuter passenger traffic By Jenny Wagler

he province’s recently announced $7.5 million funding commitment will go halfway to restoring Vancouver Island’s E&N Railway, which has been fighting for its survival since the deteriorated track stopped passenger service in March and slowed freight runs to a crawl. Since last October, rail service owner Island Corridor Foundation (ICF) has been petitioning the provincial and federal governments for $15 million to replace 104,000 rail ties (see “Vancouver Island rail fights for survival” – issue 1122; April 26-May 2). Last week, Premier Christy Clark committed the provincial half of that funding. “It’s really important for people on the Island to have this passenger service for tourism but also for freight, and we want to do what we can to preserve it and see if it can work for the people of the Island,” she told a media scrum following the announcement. “This is a big job creator, potentially.” The province has dedicated $500,000 for an engineering inspection of the condition of the approximately 40 rail bridges and trestles on the line – a project that is already moving ahead, according to ICF executive director Graham Bruce. The $7 million balance is conditional on the federal government funding the remaining half of the $15 million project. Bruce noted that the conditional nature of the province’s commitment isn’t a new stumbling block for ICF; he said the ICF agrees that the project requires the full $15 million.

If federal funding comes through, the track overhaul of Vancouver Island rail could be completed within a year and passenger service restored by mid-fall

“If rail’s to continue to run on Vancouver Island, that other $7.5 million is going to have to come across. This wasn’t a piecemeal application. It was to both [the provincial and federal governments].” Bruce added that he’s confident that the federal government will announce the remaining project funds “in the next several weeks.” John Duncan, MP for Vancouver Island North and federal minister of aboriginal affairs and northern development, did not offer any comment on the likelihood of federal funding coming through. “I’m not at liberty to talk in any detail,” he said. “I will say that I’m continuing my advocacy.” Duncan called the future of the rail line “something that’s quite exciting for Vancouver Island.”

“I think that people haven’t really wrapped their head around the fact that the Island’s got basically the same population as New Brunswick,” he said. “We’ve got a high-growth area of the country that’s long and narrow and needs a corridor for the future.” Bruce said if the federal money comes through, the track overhaul should take approximately a year to complete and passenger service between Nanaimo and Victoria could be operational again by mid-fall. At that point, he said, the hope is to have the daily passenger service run from Nanaimo to Victoria and back to Nanaimo, which Bruce said will enable daily train commutes to and from Victoria. The previous passenger service started in Victoria, picked up in Nanaimo and then returned Victoria. That stranded would-be Nanaimo

commuters in the capital city for the evening. Beyond anticipated passenger gains from reversing that trip direction, Bruce said he expects to see the track overhaul generate new business through tourist excursion trains serving, among other markets, the new Nanaimo cruise terminal. But he stressed that “probably the most important gain” from the track improvement will be increased freight business, which he anticipates could come from aggregate producers, Compliance Energy Corp.’s (TSX-V:CEC) proposed coal mine near Courtenay and forestry companies. “It’s been very challenging for our rail operator, Southern Rail [of Vancouver Island Ltd.], to be very aggressive in knocking on potential customers’ doors without the assurance that rail was going to be here,” Bruce said, stating that that problem will disappear if the project moves forward. Bruce said he wasn’t surprised at the provincial funding coming through, just as he’s expecting the federal money to follow shortly. “You can’t continue to talk about the needs of transportation changes, greenhouse gases, climate change and all sorts of other aspects and not deal with the very practical application that’s right here before everybody with respect to the rail line on Vancouver Island. Any other jurisdiction in the world, they would die for a corridor like this that travels within five miles of 500,000 of the 750,000 people who live on Vancouver Island.” • jwagler@biv.com

Trouble suffered arising from an inaccurate property appraisal. Defendants: Couto Electric Ltd. and Tyco Thermal Controls LLC and Tyco Thermal Controls (Canada) Ltd. Box 403, 11–32 Creed St., Kitimat and 250 West St., Trenton, ON and 3000 Royal Centre, 1055 W. Georgia St., Vancouver Plaintiff: 101 Industries Ltd. 46 Clifford St., Kitimat Claim: Damages for losses caused by a fire that occurred as a result of the use of the Raychem IceStop Roof and Gutter De-Icing System. Defendant: The Owners, Strata Plan BCS 3037 210–1575 W. Georgia St., Vancouver Plaintiff: Dustin Ellis 2020–650 W. Georgia St., Vancouver Claim: Damages for injuries sustained when a parking lot gate came off its supports and crashed on top of the plaintiff’s head, knocking him unconscious to the

ground. Defendants: Langfab Fabricators Ltd. and Dams Ford Lincoln Sales Ltd. 6345 197 St., Langley and #5 10320 E. Whalley Ring Rd., Surrey Plaintiff: Insurance Corp. of B.C. 151 W. Esplanade, North Vancouver Claim: Damages for negligence or breach of contract related to a waste truck that collided with the Moody Street Bridge in Port Moody while its rails were in the up position. Defendants: Paccar of Canada Ltd. and Inland Kenworth Ltd. 3rd floor, 6711 Mississauga Rd. N., Mississauga, ON and 2482 Douglas Rd., Burnaby Plaintiff: Insurance Corp. of B.C. 151 W. Esplanade, North Vancouver Claim: Damages for negligence or breach of contract related to a fire that engulfed a truck. Defendants: Joel Gloria

and Josefina Gloria 5286 Wales St., Vancouver Plaintiff: The Capital Residents Ltd. Partnership 833 Seymour St., Vancouver Claim: Specific performance of the strata purchase agreement, or, a declaration of noncompliance with the purchase; forfeiture of the deposit; and damages for breach of contract. Defendant: Paulina Chan 27 Wardell Ave., Rumson, NJ Plaintiff: The Capitol Residences Ltd. Partnership 833 Seymour St., Vancouver Claim: Specific performance of the strata purchase agreement, or, a declaration of noncompliance with the purchase; forfeiture of the deposit; and damages for breach of contract. Defendants: Travelers Guarantee Co. of Canada 2500–650 W. Georgia St., Vancouver Plaintiff: The Owners,

Strata Plan BCS 1348 4295 Blackcomb Way, Whistler Claim: A declaration of obligation to make good the loss and damage the building sustained as a result of renovation defects according to the warranty; specific performance of the warranty, or, damages. Defendants: Wetsern Bus Lines Ltd. and Raymond Therrien and Gary Ferguson 153 Pinto Rd., Kelowna and 3952 Suncrest Crt., Kelowna Plaintiff: 353902 B.C. Ltd. 301-1665 Ellis St., Kelowna Claim: Damages for breach of a lease agreement related to a property that was left contaminated after being vacated. Defendants: Island Furniture Co. Ltd. and Ruth Diana Haynes 520 Herald St., Victoria and address unavailable Plaintiff: Urban Barn Ltd. 3000–1055 W. Georgia St., Vancouver Claim: Damages for rental arrears related to a lease; an accounting; and

payment of all amount found to be due. Defendant: Centex Projects Ltd. 1500–13450 102nd Ave., Surrey Plaintiff: Jas Construction Ltd. 2838 Garden St. No. 1, Abbotsford Claim: Damages for breach of a framing, foundation and forming contract. Defendants: Pedre Contractors Ltd. and The City of Vancouver 316–2800 E. 1st Ave., Vancouver and 453 W. 12th Ave., Vancouver Plaintiff: Thanh The Nguyen 1220–1200 W. 73rd Ave., Vancouver Claim: Damages for a sewer backup that was the result of a negligently installed sewer line. Defendants: Kenneth William Trociuk and Henry Sarava and Gregg Alfonso and Gregg Alfonso Law Corp. 1702 Pritchard Dr., West Kelowna and 2300– 2850 Shaughnessy St.,

Port Coquitlam and 272 Bernard Ave., Kelowna Plaintiff: Cameron Peter Capozzi 2500–700 W. Georgia St., Vancouver Claim: Damages against Sarava for breach of contract and negligence related to a power of attorney agreement and a property sale; orders against Trociuk and damages; and damages against Alfonso for breach of contract and negligence. Defendants: Frank H. Russel and Ray L. Toby and Toby Russell and Buckwell and Partners Architects and ABC Co. #1 and John Doe #1 410–1444 Alberni St., Vancouver and addresses unavailable Plaintiff: Central Agricultural Facility Ltd. 201–33832 South Fraser Way, Abbotsford Claim: Damages for water damage that was the result of construction deficiencies. •

For the record

July 5–11, 2011 Business in Vancouver

index The following are People on the Move categories. Not all appear each week.

• Accounting • Advertising • Aerospace • Architecture • Associations/Societies • Biotech/Life Sciences • Communications/PR • Community • Design • Development/Construction • Education • Energy • Engineering • Finance • General

People on the Move Email your For the Record information to: fortherecord@biv.com. Please include a high-resolution, colour headshot where possible.

•Associations/Societies

Shachi Kurl has been appointed director of provincial affairs for B.C. and Yukon at the Canadian Federation of Independent Business. She was previously a legislative reporter for /A\ News Vancouver Island, associate producer, Global National News, and a contributing columnist for the Vancouver Sun.

•Biotech/Life Sciences

Annalisa King has been appointed to the board of Afexa Life Sciences Inc. She is senior vice-president and CFO of Best Buy Canada Ltd. and was previously senior vice-president of business transformation for Maple Leaf Foods.

•Energy

Marvin Mitchell has been appointed to the board of EcoMax Energy Services Ltd. He was previously exploration manager for Ranger Oil Ltd.

•Finance

Marc Blythe has joined the board of Strategem Capital Corp. He is CEO, president and director of Tarsis Resources Ltd. and was previously corporate senior mining engineer for Placer Dome Inc.

•Hospitality/

Tourism/Convention

Tourism Vancouver has announced its new board of directors for 2011-2012: Howard Jang (chair), executive director, Arts Club Theatre Co.; James Terry, executive vice-president, Rocky Mountaineer; George Bartel, president and CEO, Vancouver All Terrain Adventures; Carolyn Bauer, general manager, Yellow Cab Co.; Ken Cretney, general manager, Vancouver Convention Centre; Larr y Donen, chief brand steward, Jamjar; Nicholas Gandossi, general manager, Opus Hotel Vancouver; Gordon Johnson, regional vice-president and general manager, Delta Hotels & Resorts; Bob Lindsay, owner and operator, Monk McQueens Fresh Seafood & Oyster Bars and

• Health/Medical • Hospitality/Tourism /Convention • Human Resources • Legal • Marine • Manufacturing • Media • Public • Real Estate • Resources • Sales/ Marketing • Technology • Telecommunications

LIFT Bar Grill View; Jonas Melin, general manager, Inn at False Creek – Quality Hotel Downtown Vancouver; Sue Roberts, managing director, CongressWorld Conferences Inc.; Robert Safrata, owner, West Coast Sightseeing/Grayline; John Sandor, general manager, Sutton Place Hotel; Dennis Skulsky, president and CEO, BC Lions Football Club; and Marion Harper Treskin, general manager, the Westin Grand Vancouver.

•Resources

John McGoran has been appointed to the board of Prophecy Platinum Corp. He was prev iously cofounder of Imperial Metals Corp., founder of Fleck Resources and Northern Platinum Ltd. and director of Prophecy Coal Corp. John Kerr and Michael Sweatman have resigned as directors of Platinum. James Turner has been appointed to the board of Pan Terra Industries Inc. as a geological consultant and Michael Slater has been appointed an independent director. Gregory Marr has resigned from the board, but remains as CFO. Turner is CFO of Anglo-Canadian Uranium Corp. and a geologist with Entourage Mining. Slater was previously president of Motivation Industrial Equipment. Graham Clark Jr., chair of United Silver Corp. has been appointed interim president and CEO of the company, replacing Charles Pitcher, who has stepped down. Clark was previously senior vice-president and general counsel at Newmont Mining Corp. John Thomas and Robert Atkinson have been appointed CEO and director, respectively, of Cassius Ventures Ltd. Thomas is president and a director of the company. Atkinson is a director of Sprott Resource Lending Corp., Tasman Metals Ltd., Hansa Resources Ltd. and Spur Ventures Inc. and was previously president and CEO of Loewen Ondaatje McCutcheon & Co. Ltd. Steve Cook a nd A listair Maxwell have been appointed to the board of Cayden Resources Inc. Cook is a tax partner at Thorsteinssons LLP and

Shachi Kurl is director of provincial affairs for B.C. and Yukon at the Canadian Federation of Independent Business

is on the board of Skeena Resources Ltd. and was previously on the board of Brett Resources Ltd. Maxwell was previously president and CEO of Clarus Securities Inc., head of sales and trading at Loewen Ondaatie McCutcheon Ltd. and a financial analyst at the Royal Bank of Canada. Don Demens has been appointed COO of Western Forest Products Inc. He was previously senior vicepresident of sales and manufacturing at the company. Rick Zimmer, Hak-Kyun Shin and Jan Castro have joined the board of Capstone Mining Corp. Zimmer was previously president and CEO of Far West Mining Ltd. Shin is the director general for business development and foreign investment at KORES and was previously director for coal business development and foreign investment before becoming the COO and a director for KORES Canada Corp. Castro is CEO of Pala Investments AG. Colin Benner and Stephen Quin have resigned from the board. Greg Gibson has been appointed to the board of F.D.G. Mining Inc. He is president, CEO and a director of Trelawney Mining and Exploration Inc. James Hutton has been appointed to the board of Salazar Resources Ltd. He is president and CEO of Hutton Capital Corp. and Hutton Capital Management and was previously founder, president and CEO of the Canadian Dominion Resources Group and president and CEO of the CMP Resource Group. Michael Dake has joined the board and has been appointed president, CEO and secretary of Cricket Resources Inc. He is a partner at Whaler Capital Corp. and serves on the board of Shamrock Enterprises Inc. Michael Dake has joined the board of Taipan Resources Inc. He is president, CEO and secretary of Cricket Resources Inc., a partner at Whaler Capital Corp. and is on the board of Shamrock Enterprises Inc. Harry Knutson has been appointed chairman of the board of AgriMarine

Kirsten Fischer, Cut & Colour Salon; Selina Yano, Peace Arch Hospital and Community Health Foundation; and Susie Brown, Silpada Jewellery

Holdings Inc. following the resignation of John Reynolds. Knutson is founder of Nova Bancorp Group.

RBC Foundation donated $50,000 to Junior Achievement of BC for the Economics for Success program.

Fred Sveinson has been appointed director of Fire River Gold Corp. He was previously president and CEO of Gold City Industries Ltd. and founder, president and CEO of Merit Mining Corp.

Scotiabank donated $35,000 to the Canadian Cancer Society’s Relay for Life.

Companies on the Move •Name Change

Crowflight Minerals Inc. has changed its name to CaNickel Mining Ltd. and will continue to trade as TSX:CML. AccelRate Power Systems Inc. has changed its name to Goldstrike Resources Ltd. and will commence trading as TSX-V:GSR.V. Terrace Resources Inc. has changed its name to Terrace Energy Corp. and will commence trading as TSXV:TZR.

•New in Town

Foran Mining Corp. has relocated its corporate head office to Suite 904, 409 Granville Street, Vancouver. Sabai Thai Spa has opened a third location at 1867 Marine Drive, West Vancouver.

Hats Off Business in Vancouver wel-

comes 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. Teck Resources Ltd. donated $500,000 to the the Minerva Foundation for BC Women toward its Combining Our Strength initiative, which provides support to aboriginal women in B.C. Burnaby Hospital Foundation raised $150,000 at its 25th anniversary golf tournament to help purchase urgently needed ambulatory care equipment at Burnaby Hospital.

TD Friends of the Environment Foundation donated $15,000 to the City of Vancouver to replace a nd rehabilitate trees damaged during the riots in downtown Vancouver. White Spot Morgan Crossing donated $7,200 to Peace Arch Hospital and Community Health Foundation to benefit a new emergency

department. Cut & Colour Salon and Silpada Jewellery donated $1,000 to Peace Arch Hospital and Community Health Foundation to help fund priority medical equipment for the urology department. Hemlock Printers won a gold award at the 2011 Sappi North American Printer of the Year competition for best digital print for Peter Schafrick’s photography portfolio. Uniglobe Vision Travel received a Power of the Partnership honour from Vacation.com. •

Peter W. Webster, Chair of the Board of Directors of UBC Investment Management Trust Inc. (UBC IMANT) is pleased to announce the appointment of Jai Parihar as President and Chief Executive Officer. Jai is responsible for selecting and oveseeing institutional investment fund managers and ensuring Jai Parihar, CFA, ICD.D that UBC IMANT’s strategic and operating objectives are achieved in accordance with the investment policies of the funds it manages. Jai has over 25 years of institutional investment management experience, most recently as the Chief Investment Officer for the Alberta Investment Management Corporation from 2002 to 2009. He served in the Province of Alberta’s Ministry of Finance in a variety of positions from 1974 to 2002. From March 2010 to April 2011, Jai served on the Board of Directors of UBC IMANT. He is a current member of the Investment Advisory Committee of the Alberta Teachers’ Retirement Fund. Jai received his Bachelor of Engineering from the University of Udaipur, India and his Masters of Business Administration from the University of Alberta. He is a CFA charterholder and a member of the Institute of Corporate Directors. UBC IMANT is a wholly owned subsidiary of the University of British Columbia, established to oversee investment management of the University’s Endowment Fund, Staff Pension Plan and other designated funds. UBC IMANT engages institutional investment managers for the day-to-day investment of the assets held by the funds. As at March 31, 2011, UBC IMANT’s total assets under management are $2.4 billion.

26 for the record

Daily business news at www.biv.com July 5–11, 2011

daily online edition

7TH ANNUAL

BUSINESS TODAY Local businesses unite to help victims of riot Vancity, Telus, the Fan Zoo and To the Point Tattoo have joined the Vancouver Economic Development Commission (VEDC) to help some of the 55 businesses whose property was damaged in the June 15 Stanley Cup riot. The Vancouver Restoration Fund (www.vancouvereconomic.com) has been

MEGA JOB FAIR

AND TRAINING SOLUTIONS THURSDAY, JULY 21st, 2011 Looking for work? Want to upgrade your skills?

Westport, GM to develop natural gas engines

Innovations Inc. (TSX:WPT) announced it has entered into an agreement with General Motors (NYSE:GM/ TSX:GMM) to research and develop advanced natural gas engine technology. Westport said it plans to add research and development facilities to develop technologies that will allow vehicles to run on natural gas.

Vancouver-based Westport

Wednesday, June 29

established to help those businesses whose insurance does not cover losses sustained during the riot. The fund is assessing applications from the affected businesses and accepting donations from businesses that want to help. Wednesday, June 29

Full stories and other local business news at www.biv.com/businesstoday

Numerous employers & training centers will be attending the PICS MEGA JOB FAIR!

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Ext. 125

Nominations closing soon! Deadline extended: July 22nd, 2011 After 20 years, Business in Vancouver continues to find 40 outstanding young business professionals worthy of the Forty under 40 distinction each year. Forty under 40 celebrates the depth of business talent in British Columbia, from the rising stars of the corporate world to successful entrepreneurs, and non-profit leaders. Winners are chosen based on such values as achievement, experience, innovation, vision, leadership, and community involvement. By nominating some one for BIV’s Forty under 40, you are supporting and developing today’s young business leaders. Winners of BIV’s Forty under 40 have gone on to shape our city and our province in many different ways!

Go to www.biv.com/40under40 to submit a nomination. Sponsored by:

Previous winners: Avtar Bains – 1990 Peter Busby – 1991 Glen Clark – 1991 Rick Hansen – 1991 Susan Mendelson – 1991 Bev Briscoe – 1992 Bob Rennie – 1992 Arthur Griffiths – 1993 Chip Wilson – 1993 Sam Hirji – 1994 Sandra Miles – 1997 Gregor Robertson – 1997 Brian Scudamore – 1997 Wendy Lisogar-Cocchia – 1998 Darren Entwistle – 2000 Thane Stenner – 2000 Peter ter Weeme – 2000 Tracey Axelsson – 2001 Christina Anthony – 2002 Dave Cobb – 2002 Rob Feenie – 2002 Claire Newell – 2004 Colin Bosa – 2005 Steve Mossop – 2005 Stephanie Cadieux – 2006 Jennifer Podmore – 2007 Chris Breikks – 2008 Paul Haagenson – 2009 Jill Earthy – 2010

Datebook

July 5–11, 2011 Business in Vancouver

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

Breakfast, Luncheon, Dinner Meetings Vancouver AM Tourism Association Meeting July 8, 2011, 7:00 AM: Inside the brand new Bank of Montreal tent! Speaker: Christopher Gaze, Artistic Director Bard on the Beach. Catering by The Butler Did It. $28 members, $38 nonmembers, $23 students. Bard on the Beach, Vanier Park . Va n co u ve r. 6 0 4 -7 3 8 - 5 5 0 6 ; office@vancouveram.ca. www. vancouveram.ca. Spirit of Giving July 13, 2011, 10:00 AM: Spirit of Vancouver invites you to our annual Spirit of Giving luncheon on-board the majestic ms Volendam cruise ship to experience the incredible food, wine, hospitality and service of Holland America, and hear from a special guest speaker. $69 members and guests/$96 future-members (+HST). Holland America Line’s ms Volendam, Cruise Ship Terminal Level, 999 Canada Place. Vancouver, BC. www.reservations@ b o a r d o f t r a d e . c o m . w w w. boardoftrade.com.

Conferences, Conventions, Tradeshows 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, smar t investors know it’s imperative to stay informed and educated. Free Admission. Vancouver Convetion Centre, 1055 Canada Place. Vancouver. 800-9704355. http://www.moneyshow. com/tradeshow/vancouver/ w o rl d_ m o n ey 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 the accomplishments in the professions of engineering and geoscience. A s BC ’s p re m ie re e n gin e e r in g a n d geoscience event, the Annual Conference and AGM are sure to offer participants valuable opportunities to network with leading pofessionals in the industr y Prices var y. 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 Canadian Securities Course (CSC) July 6, 2011: Have the skills and knowledge to become a licenced mutual funds salesperson with our Canadian Securities Course. Ashton College. Vancouver. 604899-0803 / info@ashtoncollege. com. www.ashtoncollege.com. 20/20 SMART Session: Product Management for Product Development July 21, 2011, 8:00 AM: I n n ova tio n c a n of te n l e a d businesses into unexplored territory when product developers have to cope with varying levels of uncertainty regarding the product development process. Join us to learn how to manage your p ro du c t d evelo p m ent . $ 2 5 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. HR Metrics Service - Demo & Overview: Manufacturing July 21, 2011, 9:30 AM: Come join us for an overview of the HR Metrics Benchmarking Service with a special focus on the Manufacturing Sector No charge. Online. 604-6946946. http://www.bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-237. HR Metrics Benchmarking Service - July Demo & Overview J u ly 22 , 20 11, 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. 604-6946946. http://www.bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-222. Foundation in Sustainable Community Development S e p te m b e r 15, 20 11, 9 : 0 0 AM: This course addresses the confusion surrounding sustainability and presents th e c e r ti f i c a te’s v i si o n 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. HR Metrics Benchmarking Service - September Demo & Overview September 28, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Ser vice, sign up for this 1-hour demo, Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma. org. http://www. bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls.

cfm?EventID=035-252. Applications in Sustainable Community Development September 30, 2011, 9:00 AM: Through field trips and presentations by sustainability project champions, you will explo re th e ap plic atio n of sustainability principles in a variety of programs, projects and business ventures. $600. 515 W. Hastings St. Vancouver. J o s h u a R a n d a l l , 7 7 8 -7 8 2 5254. http://www.sfu.ca/city/ course2popup.htm. HR Metrics Benchmarking Service - October 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. 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. $ 6 0 0 . 5 1 5 W. H a s t i n g s S t . Vancouver. Joshua Randall, 778782-5254. http://www.sfu.ca/city/ course3popup.htm. Communicating Sustainability for Awareness, Accountability and Action N ove m b e r 2 5 , 20 1 1, 9 : 0 0 AM: This course provides 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 - November Demo & Overview November 30, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Ser vice, sign up for this 1-hour demo Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma. org. http://www. bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-253. HR Metrics Benchmarking Service - January Demo & Overview January 18, 2012, 9:00 AM: If you are looking to learn more about the HR Metrics Ser vice, sign up for this 1-hour demo Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma. org. http://www. bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-254.

Festivals HomeStars Presents Cluttermania: A Musical Revue July 10, 2011, 3:00 PM: Cluttermania, featuring Dust Bunny and the Mavens of Mess, investigates why we seem to be powerless to part with our stuff!!! You’ll be inspired to run home to start de-cluttering! Free. Nikkei Heritage Centre Society, 6688 Southoaks Crescent. Burnaby. nichole@homestars.com. http:// homestars.com/bc/vancouver/ events/cluttermania-a-musicalrevue. Agassiz Slow Food Cycle Tour July 23, 2011, 9:00 AM: This tour provides an educational and culinary experience exploring many farms, some that are open to the public on these days only. This is an event that is suitable for families of all ages. $20/person, Children 12 and under are free. At the corner of Cameron and McCallum Road. Agassiz. www. slowfoodvancouver.com. Chilliwack Slow Food Cycle Tour July 24, 2011, 9:00 AM: This tour provides an educational and culinary experience exploring many farms, some that are open to the public on these days only. This is an event that is suitable for families of all ages. $20/ person, Children 12 and under are

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free. Tourism Chilliwack Visitor Centre, 44150 Luckakuck Way (Exit #116 from Hwy 1, in front of Heritage Park). Chilliwack. www. slowfoodvancouver.com. Dances for a Small Stage 24 Au g ust 10, 20 11, 8:00 PM: A wildly energized, cabaretthemed evening of cutting-edge choreography at The Legion on The Drive. Doors opebn at 7pm. 19+ only. Tickets: $20 cash at door. 2205 Commercial Drive. Vancouver. http://movent.ca.

Golf Tournaments Vancouver CREW 6th Annual Golf Tournament and Silent Auction Fundraiser July 21, 2011, 11:00 AM: Join us at the 6th Annual Vancouver CREW Golf Tournament. The tournament includes 18 holes of golf with a golf cart, the West Coast Classic Buffet dinner, and prizes. Members $225; nonmembers $250. Mayfair Lakes Golf & Country Club. Richmond. Vancouver CREW: 604-601-5107, office@vancouvercrew.org. www. vancouvercrew.org. Business Leaders Golf Tournament August 23, 2011, 12:00 PM: Play golf with the Vancouver business community including senior executives, deal-

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m a ke r s a n d p rofe s si o n a l s 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. University Golf Club, 5 185 University Blvd. Vancouver. Aly-Khan Virani: avirani@biv.com, 604-608-5197. https://www.eplyevents.com/ BusinessLeadersGolfTournament.

Networking functions Mature Women’s Network Annual Bus Trip August 6, 2011, 8:45 AM: An invitation to women over 40 years for a day bus trip including lunch, museums tour, farms, historic sites and gift shops in the Harrison area. Our bus trips are always a highlight of the year for an enjoyable social day. $20.00 members, $30.00 nonmembers (includes membership for balance of the year). 411 Dunsmuir Street. Vancouver. Pre-pay to register. Call 604681-3986 or email m_miller77@ hotmail.com. http:// upcoming.yahoo.com/ event/8149717/BC/Vancouver/ Women39s-Annual-SummerBus-Trip/Mature-Women39sNetwork/. •

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adults in less fortunate parts of the world. Passions and Interests: Global issues and humanitarian work coupled with a healthy dose of world travel on the tourist side! Current Read, Author: As a man Thinketh, James Allen Someone I Admire/Why: I admire my parents because they came from humble beginnings and created a great life for themselves and for their children. Five people (of all time) I would invite to my dinner gathering: Actually I’d be perfectly Foundation content to break bread with Janna (my girlfriend), Name: Joel Primus my two brothers, my father and mother. E-mail: joel@nakedboxerbrief.com Business Tip or Motto: “Success is not a solitary Occupation/Position/Title: CEO / Founder act” What I do: Solve problems, come up with great Favourite TV Show: For all the opportunity it has new ideas and most importantly ensure customers given me and fellow Canadian Entrepreneurs I’m and colleagues are happy, happy and happy! going to have to say CBC’s Dragon’s Den! Credentials: I have a big box full of things I’m Favourite Holiday Destination: A place that is proud of but as of yet I may have a tough time hot and has blue sky for the seven days I’m there. selling them as credentials! Favourite Community Organization or Professional Background: Entrepreneur; Charity: That is a tough question. At Naked® we amateur athlete; student have the opportunity to work with so many great organizations that target a very important and Favourite stuFF specific need, be it locally or globally. We’ve worked Favorite Achievements: Finally seeing Naked® with Big Brothers, Hospice, Pacific Pathways, the hit the shelves was very rewarding. I have a lot of Burn Fund and Project World Citizen. great people to thank for that. Favourite Reason for Subscribing to Goals: To provide sustainable developments and BIV: Because it’s local. It’s real. And my Business partner Alex can’t live without it! educational opportunities for children and young

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Daily business news at www.biv.com July 5–11, 2011

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Shale gas boom threatens B.C.’s clean air initiatives I am one of many Fraser Valley residents who was very grateful when the provincial government took steps to permanently shut down the natural gas-fired Burrard Thermal generating plant in Port Moody. Burning non-renewable fossil fuels in a confined airspace like the Lower Mainland is not good for anyone’s lungs let alone for our children’s lungs or for those of people who suffer from asthma. But now that a new technology has been developed that can extract natural gas locked in massive shale rock deposits (providing an abundant new supply of relatively cheap natural gas), I fear natural gas-fired power plants similar to Burrard Thermal and Sumas II could resurface in this province and reverse the progress we’ve made in cleaning up our air. I would therefore like our elected officials to recommit to clean energy development, because burning natural gas to generate electricity is simply not necessary when we have so many alternative energy resources in this province that can do the job better and do it cleanly and renewably. Staying on the clean energy path is something our children and grandchildren will thank us for someday. Marney Hogan, Langley Cartoon by Rice

Rural businesses backing harmonized tax The HST is helping farmers and ranchers. I have been ranching in B.C. for 24 years. My family and I run an average-sized ranch with one employee. With our harmonized sales tax (HST) savings, I was able to give him a raise, as well as re-invest in our day-to-day operations. The HST has made running a ranch much easier. The HST is more efficient. If the HST were to be replaced with the old PST/GST system, it would be burdensome for us and would increase our expenses. As chairman of the finance and taxation committee (with the British Columbia Cattlemen’s Association), I know the HST is good for B.C.’s agriculture industry. I ask everyone to please do what is right for agriculture: vote “no” on the ballot so that we may keep the HST. Ron Buchanan, Charlie Lake

Entrepreneur says HST helping his small business With help from the harmonized sales tax (HST), I’ve been able to grow my business and hire an employee. The HST has lowered my costs and cut the nightmare of accounting in half. It keeps my small business competitive, and I can pass along savings to my customers. The HST also helps pay for health-care services and education. I’m a 100% believer in the HST as a fair way to tax. That is why I’m voting “no” to keep the HST. Bob Edwards, owner, Bob Edwards Welding

Company CEO credits HST for helping to create construction jobs in Prince George The HST formed a very important part of our decision to invest tens of millions of dollars into construction projects in Prince George. Forty jobs were created. If the HST wasn’t in place, I’m not sure if we would have invested to the extent that we did. My clients see the real value of the HST. Tax harmonization has given us all the ability to build capital projects and therefore create jobs in the Prince George region. Commonwealth Capital has recently undertaken an aggressive urban redevelopment in downtown Prince George. Over the past six months, our business has completed a $10 million health centre and begun construction of the city’s first major urban-residential development, valued at $6 million. Those projects equal jobs, thanks to the HST. Dan McLaren, president and CEO, Commonwealth Group of Companies

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.

At Large

Peter Ladner Sober second thoughts on city’s drunken melee

oming back to Vancouver a week after the riot, I found myself in a city that can’t stop talking about how such an outbreak could have happened. The stories in the media just won’t go away, to the point where one Vancouver Sun columnist actually wrote a column saying people should stop writing columns about this endless topic. From the perspective of someone who has the advantage of exclusively sober second-hand thoughts, here’s my take. First, I don’t think Tourism Vancouver has anything to worry about. Reaction in small-town Colorado, when I told people I was from Vancouver, was consistently, “I’m so sorry to hear about your riot.” No one said, “That settles it. Vancouver is no longer a world-class city and I won’t go there anymore.” It will have zero impact on tourism, except perhaps positively raising people’s curiosity about our city and how something so foul could happen in a city so fair. It seems the few monsters among us and the hidden monsters within us both rose up that night – a few nasty bad people and many nasty good people. What united them, besides the (We Were All) Canucks, was young male boozing in crowded spaces with too few cops. It wasn’t a natural extension of the Downtown Eastside’s chronic lawlessness and rampant street-drug use. It wasn’t the boredom and alienation of living in Vancouver’s “sick society” and not being able to afford a house or

even a lousy $1,500 ticket to the final game. It wasn’t (just) social media fanning the flames of those burning cars. I recall former Vancouver police chief Jamie Graham being asked, if there was one thing he could do to reduce crime in Vancouver, what

“We could lay off two-thirds of my force if there was no alcohol in our society” – Jamie Graham, former Vancouver police chief

would it be? “We could lay off two-thirds of my force if there was no alcohol in our society,” he answered. For Game 7, the warning of a noon liquor curfew came a day early. That meant lineups around the block before noon and the biggest day ever for at least one downtown liquor store. By 2 p.m. yobs in Canucks jerseys and backward baseball hats were high-fiving startled lawyers walking to the courthouse. “There was already a mood in the air that anything goes,” one friend remarked, fearful for what might come later. By the time the police came on duty at 4:30 p.m., the main downtown viewing area was so packed with people, many openly drinking, that police penetration was almost impossible. The police couldn’t even

get their own cars out of the way. The police chief for some reason won’t say how many VPD personnel were on duty that night (probably around 300 before reinforcements were called in from suburban forces). The mayor wants to know, too, but says he can’t force the chief to tell him, even though the mayor is chair of the police commission that governs the police force. What? City Hall’s clampdown on the police budget precluded the police from having all the resources they wanted for that day. The city got complacent after the successes of the Olympics and the previous games. When the unravelling of civil behaviour really got going in the bigscreen viewing area, the police were scrambling to change into their riot gear and then wondering where in the 20-square block area of mayhem they should start. They didn’t have a sound system able to order that big a crowd to disperse. By the time they got out the tear gas, it was way too late. The first line of responsibility has to rest on the goons who did the damage. But really, if the city, the CBC and the police are going to set up an event where 150,000 people, many of them drunk, are gathered in one place with nothing to do after a violent game ends unhappily, they ought to be able to protect innocent people and adjacent property. Someone in authority has to take responsibility for that. • Peter Ladner (pladner@biv.com) is a founder of Business in Vancouver and a former Vancouver city councillor. His book, The Urban Food Revolution: Changing the Way We Feed Cities, will be published by New Society in October 2011.

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July 5–11, 2011 Business in Vancouver

National Affairs

Mark Milke Quick end to postal strike delivers the wrong message to supporters of post office reform

ack in early 2002, not one year after the BC Liberals won a landslide election, a group of student protesters set up camp on the legislature lawn in Victoria. The initial protest, over tuition increases, started on February 6, 2002. However, it morphed into a larger protest against the new government that turned into a monthlong, “help yourself to Victoria’s prime waterfront” actup. The media and protesters dubbed the legislature tent town “Camp Campbell.” The provincial government obtained an eviction order less than a week after the camp cropped up, but nothing was immediately enforced. An enforcement order granted three weeks later was clear that while protesters had the right to show up and voice their opinions, or smell the roses, camping out on the lawn would have to end. The presiding judge, B.C. Supreme Court Justice Allen Melvin, wrote, “There

is no constitutional right to garden or camp on legislature grounds.” And for good reason. In the interim between the initial occupation, the eviction order and its eventual enforcement, the legislature lawn began to look like any lawn/campground would after weeks of nailedin tent pegs, cook-stove setups and clotheslines hung for laundry. And there was the added effect from a few pets that accompanied some protesters. The slowness in enforcing the original eviction was curious and irksome at the same time. (I lived in Victoria until later that year.) The “campers” were despoiling a beautiful piece of public land. The longer Camp Campbell continued, even protest-friendly Victoria could tolerate it no longer. More tourists saw it and complained, as did small businesses that received the complaints sideways, as did ordinary Victorians.

Eventually, many in the media (who might have sided with the early protesters on principle or because it made good television) also became irritated. Ensuing coverage reflected their heightened state of agitation. So, on the last day of February 2002, some squatters got the judicial hint courtesy of requests from the police and began to take down their tents. Not all went quietly. One camper attacked a CBC cameraman for filming the tent tear-down. Also, and, naturally, this being Victoria, some evicted female campers stripped off their shirts and bared their wares in the direction of the legislature’s cabinet room. I bring up this historical piece of British Columbia trivia because, while I don’t recall if the provincial government was deliberately slow in asking for an enforcement of the eviction order, the delay had its intended effect: the public, businesses and the media eventually

increasingly demanded an end to the destruction of the legislature lawn. Now, contrast that PR brilliance (or sheer luck) with the rushed end to the recent postal strike by the federal government. If there was ever a quicker and more unnecessary legislated end to a strike, I’m unaware of it.

If there was ever a quicker and more unnecessary legislated end to a strike, I’m unaware of it Whatever federal Labour Minister Lisa Raitt and her political staff were thinking, it certainly was not about how to effect longterm change in public-sector union attitudes toward the public purse. It wasn’t even strategically smart in the short term. After all, in the immediate, the quick end to the

strike gave Parliament’s new opposition an issue it could rally its troops behind, this in a June session that otherwise would have been ignored by Canadian families more intent on heading off to their soon-summer vacation. It also gave organized labour, the leaders of which are too often anti-market and anti-innovation, an early rallying point against the new majority government. Anyone who thinks majority governments needn’t worry about such things has never lived in a province where organized labour has significant clout. And this is so, even if you think as I do, that much of what union leaders advocate is harmful to union members. In any event, the public never even had a chance to get supremely irritated with

either the Canadian Union of Postal Workers and its sweet labour contract or Canada Post. So ask yourself this question: if you’re a politician who wants to reform Canada Post, especially given its $3.2 billion pension liability, which may end up back in the public’s lap one day, do you want more or less irritation with CUPW and the post office? And how exactly do you get more public exasperation? Answer: not by shortcircuiting the union’s rotating strikes or by ending management’s lockout of postal workers. • Mark Milke (mmilke@telus. net) is the editorial board chairman of C2C Journal, Canada’s journal of ideas. His column appears monthly in Business in Vancouver.

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When: August 23, 2011

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