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CREATIVE DIRECTION AND DESIGN PRODUCED BY EMERGE DESIGNS CONTRIBUTORS Chris Johnston Krista Ross Stacey Murray Morgan Peters Rivers Corbett David Jacobson Dave Armstrong Brian Bowman Andrew Buck


President’s Message


CEO’s Message


Chamber Welcomes New Members




New Brunswick Startup


Meeting with U.S. Ambassador


Chamber co-hosts Don Mills of Corporate Research Associates


Canada’s New Anti-Spam Law



This publication may not be reproduced, all or in part without written consent from the Fredericton Chamber of Commerce. Every effort has been made to ensure the accuracy of all content in this publication, however, the publisher nor the Fredericton Chamber of Commerce will be held responsible for omissions or errors.


Chamber Events / Member Pro�ile:

Please address all editorial and advertising inquiries to the Fredericton Chamber of Commerce, PO Box 275, 270 Rookwood Avenue, Fredericton, NB, E3B 4Y9, Canada. The Fredericton Chamber of Commerce is not held responsible for the loss, damage or any other injury to unsolicited material (including but not limited to manuscripts, artwork, photographs and advertisements). Unsolicited material must be included with self-addressed, overnight-delivery return envelope, postage prepaid.




Insight is published by Emerge Designs. All content, copyright © 2013, Fredericton Chamber of Commerce. All rights reserved.

The Fredericton Chamber of Commerce will not give, nor rent your name, mailing address, or other contact information to third parties. Printed in Canada. Printed by Kwik Kopy Design & Print Centre. Fredericton Chamber of Commerce PO Box 275, 270 Rookwood Avenue, Fredericton, NB E3B 4Y9 Tel: (506) 458-8006 Fax: (506) 451-1119 Twitter - @fton_chamber Facebook –

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Chamber Buzz

68 Kent Street, Fredericton, NB Canada E3A 4Y1 Ph: 506.999.3332 Fax: 506.206.5300 Email:

Chris Johnston, President


ver the past several years I have been fortunate to see first hand how the Fredericton Chamber of Commerce makes a difference in our community. From helping the member who calls into the office for some advice to the advocacy efforts and the top notch networking events, the Fredericton Chamber of Commerce is great example of an efficiently operated member-centric business organization. It has become very clear to me that the ongoing success of the Fredericton Chamber of Commerce is because of you! You the member business, you the committee volunteer, you the board member, you the staff member, and you the partner. Your work ethic, your support for the chamber’s efforts, your pride in this great city and your passion to continue to make it an even better place to live and do business is what makes the difference. Success of a transitional board-run organization also depends on the continuity of strong leadership at the CEO level. Krista Ross joined the chamber as CEO in 2011 and has led by example from the outset. Her work ethic and passion for the job is second to none. Krista has assembled a competent and motivated team of staff that works tirelessly to make every aspect of the chamber as good as it can be. Outside of the amazing staff at the chamber, this organization has been blessed with great volunteers that continue to set the bar high for those that follow. Specifically I would like to thank Andrew Steeves as outgoing past president for his tireless efforts on the chamber’s behalf over the years. Thanks are also due to Janice Corey for her efforts over the last year as president and I look forward to benefitting from her experience as she sits as past president for the coming year.



July - August 2013

I am humbled by the opportunity to represent this great organization as I start off my term of president for the 2013-2014 year. For the upcoming year we have assembled another tremendous group of board directors that represent an impressive cross section of our membership and I have absolute confidence that they will lead this organization with great pride and passion for years to come. As excited as we are about the new board I would also like that thank all outgoing board members that are completing their term, their significant contribution has been appreciated. As a city and a region we are facing tough economic times but I believe that collectively we can have a significant amount of influence on our future outcomes. We have some great people assembled around the chamber’s efforts, but we are always looking for more input and new ideas. If you currently are not involved in committees or other chamber activities, I would ask you to consider putting your ideas and experience to work as part of a chamber committee or other volunteer opportunity. As your “Voice of Business,” we will continue to work diligently to push the agenda forward and provide relevant services to your business to increase your success. I look forward to working with all of you in the coming year.


here are no easy answers.... but together we can work towards solutions.

As I thought about what to say in my column this month... and keeping in mind the theme of our magazine being “start-ups”, I had a many thoughts running through my head. As most business people probably have done recently.... I read with great interest the four articles published in the Daily Gleaner written by Donald J. Savoie, the Canada research chair in public administration and governance at U de M. Mr. Savoie raises many good points, and asks many difficult questions... he also hits the nail on the head of what your chamber leaders have been talking about. First... that the issues facing our province and our business community are all interconnected. Economic prosperity / finding opportunities / increased employment in our region / skills gap / innovation / deficit and debt of our province / natural resource development / GDP growth, and so on. Second, that we cannot only cut or tax our way to prosperity.... it must be a combination of tactics, of which the key is business growth! Mr. Savoie suggests that “...we should focus on supporting local businesses, if I had to bet a dollar, I’d put it on the local business community, big and small and aspiring entrepreneurs, that’s where I would put my money.” Well, we at the chamber couldn’t agree more! However, if the solutions to the most troubling questions and issues were easy... they would already be implemented! Going forward, our government leaders must continue to make difficult decisions and implement them. Some will not make the electorate very happy – of that we can be certain. But in making tough and sometimes unpopular decisions, the climate must - and will be created to support local business as the growth engine of our communities and the employment vehicles for our skilled workers.

Krista Ross, CEO

The business community is certainly answering the call and working diligently to grow. In the recently released manpower employment outlook survey, Fredericton employers are predicting a positive hiring climate for third quarter of 2013. Our unemployment rate is down slightly. The economic and business ecosystem in Fredericton is one that embraces innovation and start-ups – whether it be the ACcelr8 business centre in Knowledge Park, or the newly announced mLab, which will be located in the former York County Courthouse. Grassroots organizations like ‘start-up Fredericton’ are popping up and gaining traction in our community which is becoming identified as “Start-up City.” Mayor Woodside identifies Fredericton as the “Start-up Capital” of Atlantic Canada and the recently released Vision 2020 action plan is a community economic development strategy that has a large focus on providing the tools to help businesses succeed. In his address to chamber members last week, Don Mills of Corporate Research Associates stressed the need to support and encourage continued urban development and growth, less reliance upon the public sector for job creation, and more emphasis on business development and support. This is certainly one of the themes of the paper your chamber submitted to the Province; we told the minister of finance in January that we cannot ignore the fact that urban centres like Fredericton, Moncton, and Saint John - with growing populations and business bases are the engines of the economy, which spur growth provincially. In the coming weeks, we will be sending out our annual survey to the membership to find out what you think are the most important issues facing our community, and facing businesses. Help us to understand better which areas you want the chamber to focus our work and advocacy on that will benefit you the most. Working together, we can continue to create an environment that fosters economic growth.

continued on pg. 9



July - August 2013

New Members

Hello Newest to our

Public Affairs Atlantic 130 Hopewell Avenue Riverview, NB E1B 1T5 Email: Contact: Kathy Purcell

Decks Plus Ltd. / Fredericton Postech 11 Forest Oak Street Richibucto Road, NB E3A 0M2 Tel: (506) 447-1440 Email: Contact: Hugh Crammond

Ponde-Deshpande Centre University of New Brunswick PO Box 4400 Fredericton, NB E3B 5A3 Tel: (506) 451-6826 Email: Contact: Heather Boyd-Kinnie

The Maritimes Energy Association 202 Brownlow Avenue, Suite A305 Dartmouth, NS B3B 1T5 Tel: (902) 425-4774 Email: Contact: Barbara Pike

Centre for Arts and Technology 130 Carleton Street, 2nd Floor Fredericton, NB E3B 3T4 Tel: (506) 460-1280 Email: cjohnston@digitalartschoolcom Contact: Christine Johnston

FRYPE Fredericton, NB Tel: (506) 444-4686 Email: Contact: Chrystal Venator

Power Plus Technology 1735 Hanwell Road Fredericton, NB E1G 2W5 Tel: (506) 869-0339 Email: Contact: Jason Lutes



July - August 2013

Atlantic Growth Solutions 14 King Street, Suite 102 Saint John, NB E2L 1G2 Tel: (506) 643-6600 Email: Website: Contact: Chris Cummins

Resolution Law 29 Aston Court Fredericton, NB E3C 0H8 Tel: (506) 472-9026 Email: Website: Contact: Dominique Harvey

Total Contact Enterprises Inc. 29 New Maryland Highway New Maryland, NB E3C 2G7 Tel: (506) 206-2700 Email: Website: Contact: Ron Squires Products & Services: At Total-Contact, we take great pride in providing our clients with high quality, custom made products. Corporate apparel, team wear, promotional products, are all part of our unique product selection. Our client-focused approach guarantees efficient service, excellent quality products, professionalism, and high commitment with prompt delivery, all at competitive pricing.

New Members

Members Bridges of Canada Inc. PO Box 3414, Station B Fredericton, NB E3A 5H2 Tel: (506) 443-9960 Email: Website: Contact: Misty McLaughlin

CDS Financial Inc. 927 Prospect Street, Suite 201 Fredericton, NB E3B 2T7 Tel: (506) 452-2840 Email: World Class Auto Inc. Website: 500 Bishop Drive Contact: Greg Hunt Fredericton, NB E3C 0B4 Products & Services: Tel: (506) 455-4555 CDS Financial was Incorporated Email: in 2010. We specialize in Financial Website: Planning, Insurance as well as Employee Benefits, Travel Contact: Jamie Wheaton Insurance and Individual and Group Health Plans.

Advan Guard Protocol Inc. 6 Johnstone Lane Charters Settlement, NB E3C 0E3 Tel: (506) 292-7670 Email: Website: Contact: Jorge Prudencio Products & Services: Advan Guard Protocol Inc. provides training for Law Enforcement and Security Agencies. Training is curtailed to meet the client’s needs and Federal training standards. Courses include: Law Enforcement Intermediate Weapons and Tactics, Firearms Instruction, Doorman Security, Security Personnel, and Self-Defense. Follow us on Twitter.

Atlantic Medical Imaging Services (AMIS) 30 Damascus Road, Suite 101 Fredericton, NB B4A 0C2 Tel: (902) 453-2647 Email: Contact: Chris Johnston

Monopolize Your Marketplace 40 Sidhu Drive Beaverbank, NS B4G 1B8 Tel: (902) 869-2000 Email: Website: Contact: Ross Parks

Eagle Eye One Solutions Inc 304 Hughes Street Noonan, NB E3A 7C2 Tel: (506) 470-0445 Email: Website: Contact: Daniel Long

Tonya Myers Photography 1126 Woodstock Road, Apt /3 Fredericton, NB E3B 7B6 Tel: (506) 206-2884 Email: Website: Contact: Tonya Myers

Cobalt Capital Corporation 55 union Street, Suite 700 Saint John, NB E2L 5B7 Tel: (506) 202-1000 Email: Website: Contact: Ian LaPointe



July - August 2013



by Morgan Peters

Through our 2012-13 membership survey our members told us that their most pressing concerns were access to primary healthcare, business and personal taxation, a shortage of skilled workers, population growth, and education. The chamber tackled each of these issues and more through various methods in 2012-13. The Provincial Government Affairs Committee presented our annual pre-budget brief to Minister Higgs on 8 January 2013. With a growing debt and deficit, our 2012-13 brief focused on two broad categories – revenue generation and expense reduction. More details can be found in the March/April 2013 issue of Insight and the full-text of the brief can be found on the chamber website. Giving the provincial government viable options to return to fiscal stability is a high priority for the chamber. This has been a focus in all conversations with provincial government officials and was the primary focus of our pre-budget brief to Minister Higgs. The Municipal Government Affairs Committee outlined our position on current local issues and providing recommendations on these issues from a business perspective through the presentation of a brief during the regular city council meeting on 27 May 2013. The following topics were included: Property Taxes and Assessments, Infrastructure, Zoning and Economic Development. This year our Physician Recruitment Committee completed a multi-year strategic plan to guide our activities in the near future. To stay current on the issues, the committee engaged many officials in the healthcare field in conversation and have begun to reach out directly to medical students and residents with a primary focus those either native to New Brunswick or are currently studying or completing residencies in the province. The committee plans to maintain this focus moving into 2013-14.



July - August 2013

Our annual survey has indicated that the skills gap is a persistent and expanding issue for our members. We have been advocating that our post-secondary institutions provide training in priority sectors and that the provincial and federal governments provide a more targeted immigration regime amongst other activities. Our Economic Development Committee will be working through the summer to continue preparations for “Choose Fredericton,” our student-retention event detailed in the May/June 2013 edition of Insight. The chamber views immigrant attraction and support as a critical economic development ingredient, including the need to grow the population of the city and province. Support for immigrant entrepreneurship was a major focus of our Municipal Government Affairs Committee through their efforts advocating that Enterprise Fredericton (or some other economic development agency) was crucial for the city’s growth and prosperity. Strategic population growth through immigration was also included in our pre-budget submission to Minister Higgs. The chamber was a primary stakeholder in the City’s Vision 2020 process and the resulting strategic plan, with a focus on entrepreneurship and innovation, has been endorsed by the chamber and we intend to play a key role in its evolution and implementation. The chamber has also been supportive of the Knowledge Park’s efforts to secure funding for its Commercialization Environment for Advanced Learning Technologies (CEALT), including the ACcerl8 Centre, an incubator for business startups, providing the tools needed for success through coaching, mentoring, space requirements and commercialization vehicles. Finally, a big ‘thank you’ to all of our committee volunteers this year – your insights and dedication have been invaluable. Anyone interested in volunteering for any chamber committee in 2013-14 can send an email to or call (506) 451-9742.

Southwest Self-Employment Bene�it Program If you are on EI or have collected it within the past 3 years you may be eligible. Receive 50 weeks of assistance as well as business counselling. If you are thinking of starting a business and think you might be eligible, give us a call. Information sessions EVERY month For more information, contact us at 454-2747 or toll free at 1-800-561-1522 “Funded by the Government of Canada and the Province of New Brunswick through the Canada-New Brunswick Labour Market Development Agreement”

We also have financing available. Up to $150,000 through our; • • • • •

First-time Entrepreneur Loan General Business Loan Innovation Loan Social Enterprise Loan Youth Loan (18-34, up to $20,000)

continued from pg. 5 In closing, I would like to add that the ‘Chamber Year’ has just drawn to a close with our new President, Chris Johnston being sworn in at our recent June 5th AGM. The chamber team is looking forward to working with Chris and his board and, on your behalf; we extend a great deal of appreciation to Janice Corey, who dedicated herself to the work of the chamber in her year as president. Her leadership of your organization was outstanding.



July - August 2013

NB Startup

That's where I saw the challenges that were ahead. There was a lack of education and real understanding of what being an entrepreneur is all about. What do entrepreneurs do? How do they do it? How important are the entrepreneurs and what kind of role can they play in building a vibrant and prosperous community?



by Rivers Corbett

want Fredericton to be the startup capital of Atlantic Canada," said Mayor Brad Woodside of Fredericton, New Brunswick.

This statement captures the essence of how welcomed startups are in Fredericton today. But it wasn't always the case. I don't want to give you the impression that Fredericton isn’t a city that embraces and loves their business community – on the contrary, I have always felt Fredericton was a city that encouraged and supported business people on their challenging journeys. When I started my company Rent-A-Chef, the basic support system was in place – the chamber of commerce, government agencies and key stakeholders all rallied to support me. I loved all of that, particularly because I started out knowing nothing. Having a solid grasp of the basics was important at that time and community support was critical for the success I have enjoyed in the following years. However, as my business career developed, I began to realize that there were distinct differences between the journey of a businessperson and the journey of an entrepreneur. Frederictonians have a healthy dose of respect for those who excel in the world of business, but most of them have never experienced the true journey of being an entrepreneur. The prevailing attitude I encountered was, "90 percent of businesses fail, so don't start a business. I respect what these people do but I would never recommend anyone should do it." In other words: don’t chase your dreams... go get a safe job. In a city where some of the largest industries are infrastructure, government agencies and education institutions, being a startup entrepreneur seemed to be ranked as a distant eighth in terms of perceived importance to the city.



July - August 2013

These questions intrigued me and helped me to see the opportunity: I wanted to become the bridge between the local community and the entrepreneurs, to give startup entrepreneurs a position of validation and the community a sense of understanding so that the entrepreneurs can garner community support to pursue their dreams. As a startup entrepreneur who has gone through (and is going through) the journey, I felt I could be a leader in this movement. I am a true believer that “God’s gift to me is my talent; my gift back to him is what I do with that talent." This belief led me to embrace both the challenge and the opportunity. And what happened since then has exceeded my expectations by a long shot. Nowadays in Fredericton, celebrating, promoting and educating people about startup entrepreneurship have truly become a viable and visible team sport. It’s not just me acting in the role of the lead startup entrepreneur, but a team of numerous volunteers have joined forces to promote the movement of startup entrepreneurship, for people from all levels of society and all walks of life. Frederictonians have become much more receptive to the value of entrepreneurship and are now much more willing to support the entrepreneurs as they embark on their journeys. We now have a vibrant community with education, mentorship, celebration, and events like East Coast Startup Week, Startup Weekend and The RockStar Startup. The emergence of Startup Fredericton (from the Startup Canada movement) and a great organization called Startup Kitchen have been great additions that helped to accelerate the momentum. Most importantly, there are now awesome conversations about startups happening around almost every street corner. People are becoming much more aware of entrepreneurship as a viable career option in their lives, and they are now starting to feel comfortable talking about it, living it, and finding opportunities to network with like-minded people. Before this, business people dominated networking functions – now entrepreneurs are adding a vibrant new component to the mix!

NB Startup

There are startups launching all the time now, and the education institutions are jumping in to help out. The University of New Brunswick (UNB) has been recognized as the #1 university in Canada in supporting entrepreneurship endeavours. As the Entrepreneur in Residence at UNB, I could clearly see the impact the culture of entrepreneurship is having on the students and the community. As the startup ecosystem gains critical mass, people now want to stay in the Fredericton area to pursue their dreams. Entrepreneurship is becoming a cool, accepted and integral part of Fredericton’s culture. Just ask Mayor Brad Woodside. At this pace of growth, it won’t be long before his dream for Fredericton to be startup capital of Atlantic Canada becomes reality.

11 Insight July - August 2013

K Meeting with U.S. Ambassador By Morgan Peters


n 28 March 2013, members of the Fredericton Chamber of Commerce’s Board of Directors met with United States ambassador to Canada, David Jacobson. Mr. Jacobson discussed President Obama’s four key priorities for his second term in office: 1. Fixing the government’s long-term fiscal imbalance The administration sees the need for both spending reductions and “revenue enhancements” (taxes and tax reform); that the budget cannot be balanced by cutting only the so-called “non-defense discretionary spending”. Non-defense discretionary spending makes up 18% of the US budget, whereas payments on the deficit make up 30%. The president said in his State of the Union Address that $4 trillion is needed in deficit reduction. $2.5 trillion is already locked in, mostly through spending cuts, but also through some tax increases in January. The administration wants the remaining $1.5 trillion to be balanced between taxes and spending cuts in three areas: entitlements, defense and non-defense discretionary spending. Mr. Jacobson also spoke about the sequester, which was designed to be a poisoned pill – the idea being that the cuts would be so draconian, so extreme (and untargeted), that neither side wanted them and both sides would thus be forced back to the table. Mr. Jacobson asked the rhetorical question: think about what you would do if your family budget had to be cut by 10%. Would you cut 10% off of all your expenditures? Or would you carefully consider how you were going to cut 10% out of your budget by cutting back on vacations, leaving more money available for your kids’ college fund or your mortgage?

Insight 12 July - August 2013

2. Energy and the Environment Mr. Jacobson stated that we have the opportunity to benefit from increased energy production in North America. The question is how to strike the right balance between energy production and consumption and the environment, as climate change is a big concern for the president. The ambassador suggested that what will be interesting to watch is how much executive branch regulation the president is willing to do to compensate for lack of action by Congress. Of greatest interest to Canadians is that the administration views these as the same as issues Canada is wrestling with, such as the Northern Gateway pipeline proposals and the discussion on West-East pipelines. 3. Comprehensive Immigration Reform The Obama administration believes that immigration reform will happen for a variety of reasons. First, because the Obama administration believes that it is the right thing to do. Second because it’s also good for the economy and third, it is a campaign promise the president can keep. Most importantly, however, is that the Republicans need it too. President Obama won the Asian and Latino vote by 70%, so the administration believes that it’s a favor to the Republicans to get it off the table. 4. Reducing Gun Violence Mr. Jacobson stated that the Newtown school shootings in December 2012 galvanized American opinion on this issue, with 90% of Americans supporting universal background checks. He specifically mentioned the importance to the administration that ‘criminals’ and those who suffer from mental illness that may affect their judgment do not have access to guns. He also admitted that the president will not get all he wants on this issue - he will have to compromise on military grade weapons and large capacity magazines, but background checks will be a huge step forward.

Chamber Co-Hosts

Chamber co-hosts Don Mills of Corporate Research Associates with Fredericton North Rotary Club By Morgan Peters


he chamber and Fredericton North Rotary Club co-hosted a luncheon at the Fredericton Inn on 6 June 2013 with guest speaker Don Mills of Corporate Research Associates (CRA). CRA is a Halifax-based political, social and economic `market intelligence and research company’ that Mills established in 1978, best known for its Atlantic Quarterly report. Mills made a presentation titled “Province at a crossroad: The economic, social and political challenges facing New Brunswick,” which included some of the recent statistical findings from CRA’s Spring 2013 Atlantic Quarterly. The presentation focused extensively on the current economic climate of Atlantic Canada and New Brunswick in particular, as well as the interconnected nature of social and political factors in our economy. Mills contends that the Atlantic provinces are in the middle of a `lost decade,’ with high unemployment, low consumer confidence, economic growth failing to keep pace with inflation, and the region`s youth out migrating - particularly to western provinces. He blames the current economic situation in part on the region`s reliance on seasonal employment and called for broad support of the changes to the federal government`s employment insurance system, implemented earlier this year. Mills also cites the relative rural nature of the region as a root cause of our economic challenges. In 2011, 81% of Canadians lived in an `urban’ centre (defined by Statistics Canada as having a population of 5,000 or more), whereas in New Brunswick, 53% of residents were located in an urban area.

Mills highlighted the relative economic strength of urban areas in the region – particularly the significant disparity in unemployment rates and population growth compared to rural areas of the province and region. He went on to advocate for a new urban economic development strategy for New Brunswick, which was similar to suggestions made in the chamber’s 2013-14 pre-budget submission to Minister Higgs, wherein the chamber identified urban areas as the ‘economic engine’ of the province. Mills` urban strategy is based on creating economic zones around Fredericton, Saint John, Moncton, Bathurst, Edmundston, Miramichi and Campbellton. With a radius of 50-100 kilometres around each zone, the strategy presupposes that it is reasonable for people to commute 30-60 minutes for employment, thus covering the majority of the province with these seven zones. The presentation also offered the following advice for improving the economic environment in New Brunswick: 1. Develop and implement a strategy to become more economically self-sufficient; 2. Ensure public employment growth does not outpace private sector employment growth; 3. Outsource non-essential services to the private sector; 4. Institute performance management practices across the public sector; and 5. Align public sector contracts with those in the private sector and current economic conditions. Fredericton was added to CRA’s list of cities specifically surveyed this past quarter. Amongst the first Fredericton-specific findings, 93% of residents rate Fredericton as an ‘excellent’ or ‘good’ place to live. This satisfaction rate was found to hold true throughout the various parts of the city. Fredericton City Council also scored a relatively high satisfaction rate with 75% of residents `completely or mostly satisfied’ with councils’ performance. This presentation was the first in a planned series of co-hosted functions with Fredericton’s rotary clubs.

13 Insight July - August 2013


By Brian Bowman and Andrew Buck of Pitblado Law

The word "Spam" has been around since Hormel Foods Corporation started packing the luncheon meat into cans some 75 years ago. But it wasn't until Monty Python added Vikings and a chant into the equation that the common phrase "I don't want any Spam!" was popularized.

Various statistics now peg the cost of Spam at over $100 billion worldwide every year. It's come to the point where most G8 countries have reacted by passing Anti-Spam laws. At present, Canada is the only G8 country without specific Anti-Spam legislation in full force. That's about to change, however, with the pending implementation of Canada's new anti-spam law, or "CASL". CASL will apply to "commercial electronic messages", which are ones whose "purpose is to encourage participation in a commercial activity". An "electronic message" has been defined broadly to include e-mail, text, sound, voice and image messages. CASL creates two key obligations for senders of commercial electronic messages: the requirement to obtain consent to send a message, before the message is sent, and the requirement to include certain information in the message (such as an unsubscribe mechanism). As a result, anyone who sends electronic messages in Canada should be asking, “Are my electronic messages regulated by CASL, and, if they are, what do I need to do?” CASL contains exemptions for messages sent pursuant to broadcasting, family relationships, and in response to an inquiry sent to a person who is engaged in a commercial activity. If a message is exempt, then CASL’s requirements do not apply.

Insight 14 July - August 2013

Even if CASL does apply to an electronic message, there are specific consent exemptions that may apply, based on the nature of the message. CASL does not require consent to send messages that: • Facilitate, complete or confirm a commercial transaction that has already been agreed to by the recipient. • Provide warranty, product recall, safety or security information about a product, good or service that the recipient has used or purchased. • Provide notification of factual information. • Provide information directly related to an employment relationship or benefit plan. • Deliver a product, good or service that the recipient is entitled to receive under the terms of a previous transaction. If CASL applies and there are no consent exemptions, the sender needs to determine whether consent to receive a message can be implied, or whether express consent is needed. To obtain express consent, the sender must explain the purpose for which consent is being sought and provide other information, such as the sender's name and an unsubscribe mechanism. Implied consent, as the name suggests, does not require any positive action from the sender before a commercial electronic message can be sent. This means it’s very important to understand the circumstances under which implied consent is appropriate.

The first set of circumstances falls under the umbrella term of an "existing business relationship" between the sender and the recipient. An existing business relationship arises when the sender has: • Sold or leased goods or services to the recipient within the two years before the message was sent. • Provided a business opportunity that was accepted by the recipient within the last two years. • Entered into a written contract with the recipient, and the contract is either active or has expired within the last two years. • Received any kind of inquiry from the recipient within the previous six months. The second set of circumstances under which implied consent is appropriate is when a "non- business relationship" exists between the sender and the recipient (for example, because the sender is a not-for-profit organization that has a relationship with the recipient). This arises if the recipient: • Made a donation or gift to the sender in the two years before the message was sent, and the sender is a registered charity, or a political party, organization or candidate. • Performed volunteer work for the sender, or attended a meeting organized by the sender, within the last two years, and the sender is a registered charity, or a political party, organization or candidate. • Has been a member of the sender during the two years before the message was sent, and the sender is a club, association or voluntary organization.


CASL contains an administrative penalty regime for contravention of its consent, hacking and spyware provisions. The consequences of engaging in prohibited activities may be severe: an individual can be fined up to $1 million for each violation, while organizations can be fined a maximum of $10 million per violation. The CRTC has been given expansive power and discretion to oversee this regime. CASL also contains a private right of action. An offender can be pursued through a private right of action or the administrative penalty scheme, but not both. CASL is one of the most comprehensive laws of its type in the world. Canadian organizations should study its application to their activities in advance of the law coming into full force. Brian Bowman is a partner with Winnipeg's Pitblado Law who can be reached at (204) 956- 3520 or Andrew Buck is a lawyer with Pitblado Law who can be reached at (204) 956-3569 or The information contained herein is for informational purposes and should not be construed as legal advice.

Not only does CASL target spamming, it also prohibits surreptitious computer activity, such as spyware, malware and "botnets".

15 Insight July - August 2013

dedicated facilities, such as pharmaceutical labs, high-technology businesses and bio-tech companies. In fact, program benefits are available to a diverse range of industries. Any organization can take advantage of SR&ED if the claimant can demonstrate that it undertakes a systematic investigation to resolve technological obstacles in order to develop new or improve existing products or processes. Qualifying costs can include direct labour, materials consumed/transformed, payments to universities and research organizations, contract payments, new capital or leased equipment intended to be used in research and experimental development, and certain overheads. Any process that is integral to the development of a new product or process may qualify, even if the product or process never becomes commercially viable.

By Dave Armstrong, Senior Manager – Tax, KPMG LLP 506-452-8000


any start-ups face their greatest challenges when their business launches and upon entering the growth stage. A start-up must find the necessary financing and administrative resources to sustain the enterprise. Innovation is critical for Canadian start-up companies’ success. These innovations may include investing in technology, developing new products or processes, and finding more effective ways to compete. To offset some of the cost of innovation, Canadian income tax rules offer generous incentives through the SR&ED program. SR&ED claims provide direct financial benefits by reducing corporate income taxes and/or generating cash refunds. Canada’s federal and provincial governments offer SR&ED tax credit programs that encourage investment in the research and development of new or improved products, processes and technologies. These programs have encouraged sustained investment in R&D from broad sectors of Canadian industry. Each year, the federal government distributes about $4 billion to over 20,000 claimants across Canada. Although only Canadian-controlled private corporations receive credits that are refundable (received even if the company has no tax to pay), all Canadian entities can make claims. Under current SR&ED tax credit regimes, qualifying Canadian companies are entitled to a refundable 35% federal credit and a refundable 15% New Brunswick credit. Credits can be claimed for scientific research such as lab-based activity, or against experimental development process or product improvements. A common misconception is that the SR&ED program is only for companies engaged in traditional research conducted in

Insight 16 July - August 2013

For every $100 of New Brunswick salary spent on eligible R&D activities, a company could be entitled to a minimum of $32i in tax credits and refunds. For small- and medium-sized Canadian controlled private companies, a business could be entitled for up to $74ii in cash refunds (that’s 74% of the original salary paid for the employee!). Many companies, both large and small, may not be aware of the substantial number of activities they undertake that could be eligible for SR&ED credits. As a result, they tend to place a low priority on the benefits and the potential for tax savings remains untapped. As an example, our work for information technology companies has found eligible tax incentives in: - Software programming relating to processing speed, performance or connectivity; - Wireless and telecom applications; - Communication protocols; - Internet security and content delivery; - Advanced mathematical modeling; - Artificial intelligence. Technical reports and a financial summary are submitted with a company’s year-end tax return to claim and receive credits. Expert advice from a qualified professional is vital to filing successful SR&ED claims. Generating or saving cash for the business from receiving benefits helps advance a start-up and its growth. About the Author Dave Armstrong is Chartered Accountant practicing Canadian Taxation with KPMG LLP in Fredericton. Please contact Dave if you have any questions about the SR&ED program and if your company could potentially benefit by filing for credits.

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Costco Wholesale Corporation is known for carrying top-quality national and regional brands, with 100% satisfaction guaranteed, at prices consistently below traditional wholesale or retail outlets. Costco's warehouses offer groceries, candy, appliances, televisions, media products, automotive supplies, toys, hardware, sporting goods, jewellery, cameras, books, housewares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. Since the Fredericton warehouse opened in the summer of 2011, Warehouse Manager Jean-Paul Bernier has been grateful towards the community. â&#x20AC;&#x153;These last two years have been exciting and we look forward to serving the community in the years to come by continuing to provide our members with the best prices on quality products and services.â&#x20AC;? Costco offers three types of membership: Business, Gold Star (individual) and Executive Membership. Business members qualify if they own or operate a business, and pay a $55 annual fee to shop for resale, business and personal use. Gold Star members pay a $55 annual fee. Gold Star Membership is available to individuals who do not own a business. The fee includes a free household membership. Costco also has a third level of membership, Executive Membership, which costs $110 annually. Among some of the benefits that Executive members receive is a 2% annual Reward (up to $750) on most of their warehouse purchases.



July - August 2013

August 29, 2013

24th Annual Golf Tournament held at Kingswood Golf

September 12, 2013

Business After Hours hosted by the Fredericton Food Bank

September 19, 2013

Tri-Chamber Event held at the Riverside Resort and Conference Centre

October 3, 2013

Business After Hours hosted by Priority Personnel Inc.

October, 16, 2013

Business Excellence Awards held at the Delta Fredericton

The Buzz

, r of , May 9, 2013 On Thursdahyosted the Fredericton Cham.beWe received 3D datacomm thly Business After Hours ended were mon hose who att T Commerce’s t! n ve e is ices that ut to th logy and serv o n h a great turno c te e th t arn abou amazed to le s clients. provides to it m m o c ta a d 3D

2013, On Wednesday, June 5, Commerce hosted their

r of the Fredericton Chambe (AGM) at the Delta Annual General Meeting d, we to all those who attende Fredericton. Thank you, u yo nk s meeting. A big tha had a great turnout at thi , for her hard work and goes out to Janice Corey ’ to r as she ‘passes the buck dedication to the Chambe Johnston. our new President, Chris

On Wednesday, June 5, 2013,

Kingswood hosted the Fredericton Chamber of Commerce’s annual Summer Biz Bash at the Kingswood Lodge. We received an outstanding turnout to this event, with over 100 members in attendance. A big thank you goes out to our membership, our sponsors and our volunteers.

, On Tuesday, June 11, 2013me rce hosted at

the Fredericton Chamber of Com . A big thank you Lunch & Learn on Bookkeeping tified Professional goes out to Kelly Richard, Cer ly A. Richard Bookkeeper and Owner of Kel being the presenter of for . Bookkeeping Services Ltd , to Sam Snead’s Oak this session. Also, thank you meal and Kingswood Grill & Tavern for the delicious k forward to hosting Lodge for the venue! We loo . more Lunch & Learns in the fall

On Thurs

day, Jun

the Fred e 6, 20 eric North Ro ton Chamber of 13, Commer tary Club ce and th c Frederic e ton Inn w o-hosted an info rmative lu Fredericton ith Don M Corporate n ills, ch R releasing esearch Associa Chairman and C eon at the EO of tes (CRA CRA’s Sp ). In add ring 2013 Don deli ition to ver Atl Economic ed a speech title antic Quarterly poll resu d “Provin , Social a lts c nd Politi Bruswic cal Chall e at a Crossroad , k.” enges Fa : The cing New

by Stacey

Murray, E

vent Mana


Upcoming Events You Don’t Want To Miss! On Thursday, August 29, 2013 the Fredericton Chamber of Commerce is hosting their 24th Annual Golf Tournament at Kingswood Golf. All teams and sponsorship levels are sold out! The Chamber is in search of golf prizes and silent auction items for this tournament, if you want to donate something, please contact Stacey Murray, Event Manager at or (506) 451-9741.

On Thursday, October 16, 2013 the Business Excellence Awards will take place at the Delta Fredericton. Do you own or do you know of a business that is innovative, has a creative marketing campaign, has superb customer service, or is an industry leader? Nominate that business for a Business Excellence Award! Contact Stacey Murray, Event Manager at or (506) 451-9741 for more information on how to submit your nomination. 19 Insight Deadline for nomination is July 12th July - August 2013


OURS DO… SEE WHY WE'RE CANADA'S #1 EMPLOYEE BENEFIT PLAN FOR SMALL BUSINESS. Call Blair or Robyn Corey 458.0102 or Vernon Boyer 452.1891 to tailor a plan suited to your needs. See what the Chamber Plan can do for you!

Fredericton Chamber of Commerce "Insight" July / August 2013  
Fredericton Chamber of Commerce "Insight" July / August 2013  

Fredericton Chamber of Commerce Insight Publication