Business Examiner Victoria - September 2018

SEPTEMBER 2018

» AVERAGE WORKER WILL PAY BC’S NEW PAYROLL TAX

– PAGE 22

SOOKE Clarkston Construction is one of Sooke’s most sought after Custom Home Builders

Victoria

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VANCOUVER ISLAND Port Alberni’s Coulson Ice Blast is part of growing family business

INDEX News Update

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West Shore

5

Greater Victoria

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Saanich Penninsula

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Esquimalt 10 Who is Suing Whom 17 Movers and Shakers 18 Opinion 22

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Jason Binab Brings Luxury Real Estate Franchise North of the Border

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Canadian Publications

The Agency Infiltrates BC ICTORIA - Top-tier realtor Jason Binab is bringing a bit of Beverly Hills

to BC. Starting this September, along w ith business partner Brian Danyliw, he’l l be lau nch i ng Canada’s first franchise for one of the fastest growing real estate brands in North America, The Agency.

“T h i s i s goi ng to be big for Victoria, a nd big for the province,” says Binab. “T he Agency comes out of LA, which i s at t he foref ront of m a ny industries like fashion, food, or med i a, a nd i s one of t he top real estate markets in the world. Currently, The Agency dominates that market.”

Founded in Los A ngeles by Mauricio Umansky and Billy Rose in 2011, The Agency has closed well over $12 Billion in real estate transactions, and has

been named as one of the Inc. 5000 fastest growing companies in America for three consecutive years.

The company is the centre of attention in both the real estate world and pop culture, being prominently featured on shows like Million Dollar Listings and Real Housewives of Beverly Hills.

“T he Agency i ncor porates culture into real estate,” says Binab. “Everybody else in LA i s watch i ng t hem, not ici ng how they design promotional material, get TV exposure, and break industry stereotypes.

“Mauricio is very smart and strategic, and you can see that when you look at everything he did to get his company out there.”

Uma nsky has persona l ly represented several of the world’s SEE JASON BINAB | PAGE 15

Jason Binab joins Brian Danyliw in launching Canada’s first The Agency franchise

Mack Dealership Takes Over the Island Vancouver Island Mack Continues to Expand Thanks to Exemplary Customer Service

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ANGFORD - Richard Mayer has two companies, and it makes a big difference in the way he sells trucks.

As a long-time Mack Truck customer, he brings a host of inside-knowledge to his position as owner of Vancouver Island Mack.

“I still have a gravel pit operation and trucking company, so we regularly deal with things on the customer end,” he says. “I think I understand our customers

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on a very deep level, and am able to empathize with their complaints and issues from a very similar perspective.”

T h is i nside k nowledge has helped Mayer grow his company from a small Nanaimo dealership to a rapidly growing, multi-location (Nanaimo, Cassidy, and Langford) dealership chain.

Before entering into the truck selling business, Mayer was a long-time customer of the brand,

working in his family’s readymix business.

In 2001, the region’s previous Mack dealer filed for bankruptcy, Mayer purchased the parts and tools from the previous owner and took over the Vancouver Island franchise.

Mayer and his team met immediate success, tripling the previous year’s sales in their first year.

“Within three years, we opened

another small location in Victoria,” he says. “We quickly outgrew that, moving to another location in Saanichton, and now we’re building our own facility in Langford, which we hope to complete by next year.”

About two and a half years ago, the Nanaimo location ran out of capacity, so Mayer opened their third location at 13331 Simpson SEE VANCOUVER ISLAND MACK | PAGE 13

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NEWS UPDATE

SEPTEMBER 2018

VICTORIA Housing Market Looking for Balance

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Housing market sales declined in July by 17.6 per cent compared to last year and 8.1 per cent compared with June 2018 in the Victoria Real Estate Board region.

Meanwhile, sales of condominiums were down 22.6 per cent from last year in July with 188 units sold. Sales of single-family homes were down 16.5 per cent from 2017 with 340 sold this July.

“We are in a different market now than what we have seen for the past two years,” says Victoria Real Estate Board President Kyle Kerr. “And while we see inventory creeping up after the drought in 2017, especially in the multi-million-dollar range, across our region there are 30 per cent fewer homes listed for sale under $750,000 than this time last year. This means that if you are shopping in the $750,000-or-less bracket, you are in a fast-moving market with low inventory.”

There was a total of 2,607 active listings for sale on the Victoria Real Estate Board Multiple Listing Service at the end of July 2018, an increase of 0.5 per cent compared to the month of June and 35.7 per cent more than the 1,921 active listings for sale at the end of July 2017.

“Each year we tend to see a plateau in inventory over the summer months,” adds President Kerr. “It is possible that we will see more inventory come into the market through the fall when there is often a burst of activity in our market, but it’s hard to predict how that inventory might be priced. Ideally, we will see more inventory come in at under the $750,000 level to help push our housing market into more balanced territory across all segments.”

The Multiple Listing Service Home Price Index benchmark value for a single-family home in the Victoria Core in July 2017 was $834,200, while the benchmark value for the same home in July 2018 increased by 5.5 per cent to $880,000, slightly lower than June’s value of $889,600. The MLS HPI benchmark value for a condominium in the Victoria Core area in July 2017 was $442,100, while the benchmark value for the same condominium in July 2018 increased by 12.1 per cent to $495,700, slightly lower than June’s value of $496,500.

VICTORIA BC Transit Adds to Fleet BC Transit announced the addition of 42 new buses to communities across British Columbia. Victoria will see two new 30foot buses added to their fleet which have a maximum capacity of 50 with room for two mobility aids.

The new buses are part of the almost $160-million in federal and provincial funding for BC Transit projects that were first announced in June 2016.

BC Transit is also testing a new electric bus this month. New Flyer Xcelsior CHARGE bus is an 82-passenger vehicle powered by a 480-kilowatt hour battery and is part of the organization’s initiative to keep up with cutting-edge transportation technology.

The bus is powered by a charging station at Langford Transit Centre and will be put

into operational service only. It will travel Victoria transit routes for two weeks but will carry no passengers as BC Transit will only be compiling data on the vehicle.

The goal is to measure the capabilities, operational process and range of another electric bus type. In April, BC Transit launched a six-month service trial testing BYD battery electric buses on a variety of routes in the Victoria Regional Transit System.

SAANICH Saanich Approves Residential Development A two-building 90-unit residential development proposal for 1909 Prosser Road has been approved by Central Saanich council.

The project is comprised of a 50-unit market rental building on the northern portion of the site and a 40-unit affordable housing building on the southern portion of the property. The market rental building is to be owned and operated by Stride Properties and includes a four-storey building with studio, one-bedroom and two-bedroom units. The affordable housing portion will be owned and run by the Greater Victoria Housing Society and includes a five-storey structure with two-storey townhouse-style units on the bottom with a mix of studio and one-bedroom units on the top three floors.

The development passed several major hurdles in the approval process, including amendments to the land use bylaw and Official Community Plan on a 5-1 vote.

Councillors praised the approval of the project for its role in increasing the supply of much-demanded low-income housing.

The Greater Victoria Housing Society is now in the process of securing funding from the provincial or federal government for the development.

BC Ferry Traffic Spikes while Earnings Decline BC Ferries saw an increase in traffic and a simultaneous decrease in earnings for their first quarter.

T he ferr y ser v ice saw the h ig hest amount of vehicle traffic in their 58-year history in the first three months of their 2018 fiscal year. From April to June, more foot passengers used their services than recorded in more than 20 years.

Despite the growth in traffic, the company reported a net income of $6-million for the first quarter of 2018, compared with $17.3-million during the same period in 2017.

The decline in income resulted from a combination of rate reductions, ship upgrading expenditures and increased route service.

BC Ferries began a 15 per cent rate reduction on April 1 for all routes other than Metro Vancouver-Vancouver Island and increased their BC seniors discount they offer from Monday to Thursday from 50 per cent to 100 per cent.

The company provided 352 additional round trips to meet an increase in demands across their routes and had to make SEE NEWS UPDATE | PAGE 3

NEWS UPDATE

SEPTEMBER 2018

NEWS UPDATE CONTINUED FROM PAGE 2

schedule adjustments for routes out of Horseshoe Bay terminal.

Meanwhile, they upgraded the Spirit of British Columbia’s engine to allow it to run on liquified natural gas.

Upcoming expenses for the crown corporation will include the introduction of a new route between Port Hardy and Bella Coola beginning September 16.

VANCOUVER ISLAND Electric Charging Stations Launch on Island BC Hydro opened seven charging stations across Vancouver Island thanks to funding from the provincial and federal governments.

Natural Resources Canada provided BC Hydro with $1.05-mill ion wh i le the prov i ncia l government gave $700,000 for the crown corporation to build and operate 21 fast charging stations across BC. The Vancouver Island stations are in Nanaimo at Superstore; Qualicum at Qualicum Foods; Port Alberni at No Frills Foods; Ucluelet at Pacific Rim Visitor Centre; Courtenay at Superstore, Campbell River at Campbell River Community Centre, and Sidney at Sidney Municipal Lot E. The new charging stations are designed to increase the viability of alternative fuel vehicles as a travel option for BC residents.

The BC Hydro-branded stations will be free for now, though rates will eventually be subject to the approval of the BC Utilities Commission. The stations are part of the first phase of the government’s Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative.

Colwood over the next few years as part of a development that intends to diversify housing options for families in the West Shore.

The Two Waters development will be built by Relevant Properties on a 26-acre near Royal Roads University overlooking the Esquimalt Lagoon. The developer purchased the property from the previous developer last year and intends to begin pre-construction in September.

Phase one of the project includes construction of 61 row and stacked town homes, ranging from 870 to 940 square feet. This phase will include 31 two-bedroom and 30 three-bedroom units.

Relevant Properties is applying for a building permit which they hope to see approved by winter.

On their current schedule, they plan on beginning construction

by November or December.

T he developer has signed a five-year agreement to lease the municipality-owned building at 170 Goldfinch Road to serve as a sales centre. The centre is undergoing improvements and is expected to open in October.

Phase two of the project includes the construction of 68 town homes while phase three includes another 60 town homes.

These phases are expected to be rolled out over the next three to four years while the entire project is scheduled for completion in roughly eight years.

advanced avionics, better radar systems and a greater capability to integrate with other forces than the previous craft. They are capable of conducting operations day and night and in almost any weather conditions while maintaining a longer range and approximately 10 per cent faster air speeds than their predecessor.

The Cyclones will operate out of a hangar at 433 Squadron and a re ex pected to be deployed aboard ship in January 2019. The first deployment will be to the HMCS Regina, though no details are currently available on the specifics of that ship’s mission.

The original contract for the purchase of 28 Cyclone helicopters was signed in 2003, and the first of the aircraft were supposed to arrive in Halifax in 2008.

The multibillion-dollar contract hit a number of setbacks, including one last year when it was found that the sonar system on the underside of the helicopters risked damage when deployed during on-ship use.

BC Certification Mandatory for Organic Food and Beverages

Beginning September 1, organic food products and beverages in BC are required to maintain upto-date certification according to a new provincial regulation.

Under a new provincial regulation, organic food and beverage operators are now required to maintain up-to-date proof Cyclone Helicopters of certification. The regulation Arrive at Base follows consultation with organic operators in 2015 and a subThe first of nine of the Royal sequent transition period that Canadian Navy’s new CH-148 included multiple announceCyclone helicopters arrived at ments, an awareness campaign 443 Squadron in Patricia Bay in targeting growers, outreach at August. agriculture shows, conferences, The second and third helicop- agriculture association events ters are expected before year’s and annual general meetings. end while the remaining six heliPreviously, there were no ofcopters will arrive sequentially ficial requirements for people until 2021. The state-of-the-art who were selling or marketing aircraft is replacing the CH- BC food products as organic.

700 Home Development 124 Sea King as Canada’s main Certi f y i ng bod ies, such as Log002-Aug18-AD-BizSuccessionBanner-Holmes-9x2 Comes to Colwood File Name:ship-borne maritime helicopter, those that are members of the Trim: 9.8” x 2.5” Bleed: 0" Safety: n/a Mech Res: 300dpi which provides air support to the Certified Organic Associations Creative Services Colours: CMYK Floor 100 Yonge Street, 10 700 town homes and condoRoyal Canadian Navy. of British Columbia (COABC), Material Deadline: August 2018 Toronto, ON M5C 2W1 miniums will be developed in The new helicopters have more will ensure organic standards

and requirements are met by producers and processors. The BC government will enforce any misuse of the term “organic”.

The BC government will use a graduated enforcement approach that initially will focus on bringing businesses and individuals into compliance through education and warnings.

Uncertified operators marketing their food or beverage products as “organic” face possible penalties, including a $350 fine.

Certified organic operators will have the BC Certified Organic Checkmark, the Canadian organic logo or both logos on their products, as well as having valid certification at their business.

COABC also maintains lists of certified organic companies operating within B.C. under the COABC umbrella. The Canadian Food Inspection Agency does the same for certified organic companies in BC that sell their goods in other provinces or countries.

BC Emergency Towing Vessels Coming to Coast

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Two emergency offshore towing vessels from New Brunswick will join the Canadian Coast Guard in BC in an effort to ensure better protections of the coast.

The vessels will enhance the Canadian Coast Guard’s emergency response capacity off the West Coast and help maintain the safety and cleanliness of coastal waters. The lease request for emergency offshore tow vessels was issued by the government on February 2018 and was issued in August.

Atlantic Towing Limited based in Saint John, New Brunswick, was awarded the contract worth $67,013,720 for the three-year lease of two vessels after an open tender bid. The company will operate the vessels and train partners and members of the Coast Guard in offshore emergency towing.

The ships are to be used to tow commercial ships, tankers and container ships when they are in distress. They may also be used to respond to environmental incidents or on search and rescue missions.

One vessel will operate between SEE NEWS UPDATE | PAGE 4

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NEWS UPDATE

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northern Vancouver Island and Alaska, while the other will be used on the west coast of Vancouver Island and the Strait of Juan de Fuca.

The ships are expected to arrive in BC waters later this year. The towing vessels are a part of the federal government’s implementation of the Oceans Protection Plan. The plan was announced in 2016 after a diesel fuel spill near Bell a B e l l a p ro m p te d t h e province to ask for better infrastructure to respond to vessels in distress.

VICTORIA Program Preps Students for Tech A technology education program launching at the University of Victoria is looking to address a gap in the industry.

HighTechU is a new program developed through the computer science department at the University of Victor i a i n pa r t nersh ip w it h Victo r i a’s e d u c a t i o n a n d technology sectors. The progra m is designed to develop skills in entrep re n e u r i a l Va n c o u v e r Island teenagers to make them more effective in the tech industry.

HighTechU is offering two programs – the Computer Science Skills Academy, a six-week program teaching students coding and practical skills, and a summer industry internship program to give students an eight-week paid experience with a technology company in Greater Victoria.

S t u d e nt s i n t h e prog ra m s a re t a u g ht s of t skills, like project management and personal communication. T he mission of the program is to educate students on how important personal development is to a successful career in the technology sector.

Program founders Andrew MacLean and Ulrike Stege work w it h t h re e school districts and numerous private schools in Greater Victoria to develop curriculum for the prog ra m. T he prog ra m is delivered at no cost to students beyond registration fees and the next group of students will be welcomed to HighTechU’s Academy prog ra m i n February.

VICTORIA Millions More in July Room Revenue

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espite some softening of ferry and c r u i s e s h ip pa ssenger traffic, Victoria’s accom modation sector experienced an almost 3.7 per cent increase in July occupancy compared to last year and a $28 increase in RevPAR according to Chemistry Consulting’s latest findings. For the 40 properties participating in the Tourism Bulletin, this increased RevPAR represents an additional $3.84 million in revenue compared to July of last year.

A lthough overnight visitors from the U.S. are expected to be dampened somewh at by h ig h ga s prices, visitors from the U.S. are still projected to increase by 3.4 per cent.

Overa l l, Ca nada is expected to see a 2.6 per cent increase in tourism activity this year.

In a recent article on the AdventureStudentTravel. com website entitled ‘9 Most I mpor ta nt T ravel T rend s for 2019’, it was noted that after bei ng na med “T+L’s 2017 Destination of the Year, Canada’s tourism scene cer ta i n ly d id not slow down in 2018 and is only looking to gain more momentum in 2019. An incredible fusion of cultures, an even more incredible f u sion of cu l i n a r y delights, and some of the most breathtaking natural scenery in the entire world w i l l g reet you at Canada’s doorstep, and trust us, none of the above will disappoint!”. Such a ringing endorsement is sure to attract more students and other travelers to our destination over the coming months.

At just past t he m idpoint of 2018, the Conference Board of Canada is projecting that overseas visits to Canada will increase by 6.7 per cent over 2017, reaching over 9 million visitors. The highest rate of growth is for visitors from Mexico and China.

VANCOUVER ISLLAND Nominations Now Being Accepted T he Family Business Association Vancouver

Island (FBAVI)) is now accepting nominations for the 2019 Family Business Excellence (FBE) Award a n d t h e Yo u n g E nt repreneur Award. The FBE Award is given annually

by FBAV I to recognize, celebrate a nd promote achievements of Vancouver Island family businesses and the considerable contribution they make to both their local communities and our national economy. T he Young Entrepreneur Award recognizes an outstanding young leader in the family business. The recognition for both awards from the Vancouver Island family business community is an honour and a privilege.

Past FBE Awards recipients include: DriveWise B C ; T i t a n B o a t s; T r u Value Foods; Wilson’s Transportation; Canada Homestay Network; Capital Iron; Country Grocer; McCall Gardens; Pacific Sands Resort; Robinson’s Outdoor Store; Monk Office and Accent Inns. The first Young Entrepreneur award was given to Daisy Klaibert in February 2018.

Nominations are being accepted until October 12, 2018. The celebration gala will take place on February 13, 2019 at the Union Club in Victoria, BC. Family Business Excellence Award Eligibility: A n applicant must be a Vancouver Island-based “ f a m i l y-o w n e d b u s iness”. A “Family Business” is defi ned as a business that has one of the following characteristics: 1) has been owned and operated by different generations of a family, or 2) where the potential exists for ownership to be passed on to another family member, or 3) more than one member of a family has active employment in an organization owned by a family.

Yo u n g E n t re p re n e u r Award Eligibility: An applicant must be an individual 35 years of age or younger who has been involved in a family business on Vancouver Island for a minimum of three years.

Nom i n at i ng a Fa m i ly B u s i n e s s a n d a Yo u n g Entrepreneur: To nom i nate a fa m i ly business or young entrep r e n e u r , ( s e l f- n o m i n at ion s a re welcome) visit the FBAVI Website at www.familybusinessassociationvi.ca or contact Bernadine Rudichuk, Executive Director, at 250532-2402 ~ info@fbavancouverisland.ca.

WEST SHORE

SEPTEMBER 2018

AUTUMN WITH THE WESTSHORE CHAMBER

WEST SHORE JULIE LAWLOR

A

utumn is a busy time for m a ny a nd t he same can be said for the WestShore Chamber of Commerce! We’ve got lots coming up between September and December. ••• September 3rd was the deadline for you to vote for your favourite businesses, organizations and community places in the Best of the WestShore Awards 2018.

Those who have made it into the top three will be contacted by the end of September and invited to purchase tickets to the Awards Gala, which will take place at The Westin Bear Mountain Resort Community on October 25th. •••

On September 8th, the 14th Annual Chili Cook-Off and WestShore Showcase will take place at Belmont Senior Secondary from 10 am-2:30 pm, with Chili Tasting from 11 am-2 pm. Family entertainment provided courtesy of the West Shore Arts Council and West Shore Parks & Recreation will also take place between 11 am-2 pm.

Entry is free, and if you want to sample the chili you can purchase your “tasting kitâ€? for $7, or $25 for a family. ••• September and October also see the run-up to municipal elections on October 20th. One of the roles of a Chamber of Commerce is to offer non-partisan opportunities for the public to learn more about candidates running for election. To that end we are approaching our five WestShore municipalities about setting up all-candidates forums and we’ll share more information about that as we confirm the details. ••• On November 14th the WestShore Chamber will hold its Annual General Meeting and Mixer at Oak Bay Bicycles Westshore.

Interested in getting more involved in the WestShore Chamber and the WestShore business community? You may want to consider applying to be a Director of the Board so please feel free to get in touch for an initial chat. ••• Last but not least, we will close out the year at our Holiday at Hatley’s event which takes place within Hatley Castle at Royal Roads University on December 12th.

This popular annual event includes fabulous food, live music, great prizes and a silent auction against the backdrop of a spectacular venue. Tickets will go on sale a month in advance and typically sell out. ••• Whether you are a member or a prospective member, there are so many ways to connect with the WestShore Chamber and the work that we do. You can learn more at westshore.bc.ca and I am always happy to connect!

Original Home Improvement Specialist

Julie Lawlor is the Executive Director at the WestShore Chamber of Commerce. You can reach her at jlawlor@ westshore.bc.ca

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SEPTEMBER 2018

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abour Day marks the end of summer and the retu rn to routine for students and their families. It also marks the unofficial kickoff of campaigning for the October 20 civic elections.

The Chamber is non-partisa n, wh ich mea ns we don’t endorse individual candidates or political parties, but we do want voters to be informed about issues that matter to businesses throughout our region.

In order to keep the number of candidates manageable, we are focusing on mayoral candidates in our 13 municipalities and we will be sending each a survey in the spirit of helping them build a solid campaign.

As a starting point, we have the following three questions for each of them: Q u e s t i o n 1: W i l l yo u narrow the gap between business and residential property taxes?

Greater Victoria’s business community has been burdened by the upward creep of property taxes. As senior levels of government offload costs onto municipalities, councils (other than Victoria and Langford) squeeze more out of businesses by raising their property taxes at a greater rate than residential properties.

The simple reason comes down to votes: businesses don’t have them and residents do. But while it makes political sense to appease your largest constituency, the long-term economic damage hurts everybody.

When municipal taxes force busi nesses to relocate, downsize or close, we lose local jobs and the vibrancy of our town centres, as well as the goods or services they offer.

Question 2: Do you support improving transportation through regional

• Thursday, September 13 Prodigy Group Mingle 5:00 to 7:00 p.m.

Victoria Caledonian Distillery & Twa Dogs Brewery (761 Enterprise Cr.) • Friday, September 14 Summer Social Series: End of Summer Soiree 6:30 to 9:00 p.m.

Secret Venue • Thursday, September

20 5 Chamber Business Mixer 5:00 to 7:00 p.m.

Elements Casino (1708 Island Hwy.) • Tuesday, September 25 B u s i n e s s L e a d er’s Luncheon: BC Building Trades 11:30 a.m. to 1:00 p.m.

Victoria Marriott Inner Harbour (728 Humboldt St.)

When municipal taxes force businesses to relocate, downsize or close, we lose local jobs and the vibrancy of our town centres, as well as the goods or services they offer

governance, funding, planning and delivery?

From commuting to the West Shore to downtown parking, our 13 municipalities stumble through regional transportation issues because they a ll transcend municipal borders. We need convenient transit options that make it attractive for residents to ride the bus between their homes and workplaces.

Traffic f lows over borders despite the local politics of whatever municipality it’s passing through. Are municipal politicians prepared to ex pand their parochial thinking and support decisions that improve our entire region?

Question 3: Do you support a citizens’ assembly process that empowers the public to decide whether to reduce the number of municipalities in our region?

Saanich and Victoria have agreed to ask their voters this question, which is a tentative first step toward creating a single bigger and better municipality. If voters agree to the idea, which

The Chamber endorses, a citizens’ assembly takes the decision out of the hands of politicians and staff with a self-interest in maintaining the status quo. If the citizens’ assembly recommends a merger, residents will then have a formal chance to approve the recommendation. The Chamber believes in better governance through fewer govern ments, a nd there is more tha n enough evidence to show that combining Saanich and Victoria will create a great new municipality with more resources and a higher profile than either one has now.

T here a re ma ny more questions facing our region, but The Chamber believes these three will start the discussion about who will make the best mayor in each of our 13 communities. Make sure to check out VictoriaChamber.ca for full coverage in the weeks to come.

Catherine Holt is CEO of The Chamber (Greater Victoria Chamber of Commerce).

SAANICH PENINSULA

SEPTEMBER 2018

DO IT RIGHT OR DO IT OVER Sometimes hiring the wrong person will result in you having to do a lot of clean up to restore your clients’ faith in your business

SAANICH PENINSULA DENNY WARNER

G

ather together a group of business owners or managers today and the topic of conversation naturally turns to the difficulty of recruiting and retaining employees. The first of two articles on these challenges, this one will deal with recruitment issues.

The cost to recruit and train an employee for an entry-level position is estimated to be about 16 per cent of a year’s wages. Recruiting costs for senior managers can range as high as 200 per cent of the position’s yearly salary. The recruitment process is time-consuming and expensive.

The traditional method of hiring was to place an ad, expect to receive an overwhelming number of calls and applications, screen out most of the applicants, interview the top three candidates and hire the one who seemed to be the best fit for the position.

This strategy does not work in this current labour market.

Some companies have gotten so desperate they have resorted to paying candidates to come in for an interview. It’s a given that your compensation package must be competitive in order to attract the best candidates but potential new employees are looking beyond compensation. Also important to them is a work-life balance, flexibility, work that feels meaningful, shared values, and opportunities for growth.

Reported HR woes include “job ghosting” by new hires who just don’t show up for work. Increasingly common are situations where new employees are asked to do a task they don’t understand or are requested to do something they don’t wish to do and simply walk out.

These are examples of employees who were not well-matched for the job, were not properly trained, or found themselves in a work environment that did not provide the necessary support. If you don’t have time to recruit, onboard and train new hires properly, you will find the time to do it again.

When it’s so difficult to find employees you are tempted to

place any warm body. Hiring the right person can bring you new customers.Sometimes hiring the wrong person will result in you having to do a lot of clean up to restore your clients’ faith in your business.

R e c r u i t i n g i s a f u l l-t i m e job. Business owners must be looking for the next best employee at networking events, in the grocery line-up, at their child’s sporting event, and at get-togethers with family and friends. When you have identified an appropriate candidate, it is crucial that you take the time to check references and ensure they are a good fit.

Go beyond the information and contacts that are readily available. Listen to what is being said and for what isn’t. Once you have made the hiring decision, tailor the orientation and training so as to establish the best possible foundation for your new hire.

And then, when you are congratulating yourself for finally placing a winner, turn your attention to how you are going to keep that person engaged and employed. You don’t want to watch your investment walk out the door to another company which more clearly demonstrates their long-term commitment to their employees.

Denny Warner is the Executive Director at the Saanich Peninsula Chamber of Commerce. She can be reached at execdir@ peninsulachamber.ca

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SEPTEMBER 2018

Second-Generation Owner Specializes in Oceanfront Dream Homes Clarkston Construction One of Sooke’s Most Sought-After Custom Home Builders

This was the Clarkston’s first house to incorporate trees as a focal point, heated polished concrete floors, concrete counters, heavy timber construction, elaborate kitchen design, metal siding, whale bones, and many other unique features

The dining area in the acclaimed Fisher Residence

S

OOKE - Paul Clarkston is in the business of making dream homes a reality.

Clarkston Construction​ is a custom home building company serving the Sooke region for over 35 years.

Paul is the second-generation owner of the company, one of Sooke’s most sought-after residentia l constr uction fi rms, bu i ld i ng custom west coast homes from Metchosin to Port Renfrew, and specializes in rural and oceanfront houses.

Paul’s father, Randy Clarkston​started the company several decades ago, after working as a bricklayer in the Sooke area.

Throughout his career, he built hundreds of homes in the region before moving into the planning and design industry.

Paul has been a residential framer since his early 20s, framing houses for local contractors, including his father.

“I watched and learned as my dad managed the projects, and as I transitioned from carpenter to general contractor, he was transitioning from general contracting to full-time design work,” explains Clarkston.

Paul took over the company in 2004, completing dozens of homes in the Sooke area, including nearly 30 oceanfront projects.

“Raw land development is a big part of what we do,” he says.

“Since we often work in a spectacular rural setting, a very careful approach with regards to land stewardship is required.”

Many of these projects are designed by his father Randy’s, company, West Coast Design​.

Paul has earned a reputation for building high-quality homes, thanks in part to his reliable group of long term employees and sub-contractors.

“They are an excellent team and our long history together ensures workmanship, accountability, fair value and dependability,” Clarkston says. “It makes it easy when all trades and employees work together and keep a watchful eye over the end goal of a good build.”

Thanks to his crew of reliable tradesmen, Paul is able to run his operation with minimal levels of management.

In a given year he may have as many as eight homes of varying levels of complexity, averaging

10 or more months to complete.

Over the years, the custom home bu i ld i ng i ndustry has changed, and technology has allowed Paul to stay on top of several projects at the same time.

“W hen my father managed construction in the 1990s, he’d have to make a few hours of phone calls every night to coordinate the tradesmen for the following days,” he says. “Things seemed to be built a lot faster then, but the communication was tougher and more infrequent. You really had to coordinate your moves ahead of time.”

“Today with all the tech, communication and productivity, speed seems to increase daily.”

In addition to the technological changes, Paul has noticed a societal change that has taken place since his father’s time in the business.

Homeowners have much more choice, they are better informed, and everyone seeks a certain level of extravagance.

For Paul, this means a shift toward more complex construction projects, as clients think about every detail of their dream home.

With so much experience in

The Fisher Residence in Port Renfrew features a stunning ocean view from the master bedroom residential construction, he has come to realize the gravity of building these projects.

A dream home is often the biggest purchase in a person’s life, so Clarkston Construction endeavours to “make it the best product available for its dollar value.”

According to Paul, “this is not the easiest task in a world of rising costs.”

As the industry continues to move forward, Paul is constantly in-demand, sometimes with more work than he can handle.

Last summer, Paul Clarkston​ faced one of the greatest challenges of his life as he was diagnosed with cancer in late 2016.

I n s pite of t h i s adversit y, Pau l conti nued to complete several projects while undergoing lengthy treatment for the disease.

“Because I was the only person on the management side of the business, I had to run through and finish these projects i n the m idst of some pretty intense treatment,” he

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SEPTEMBER 2018

Clarkston Construction specializes in building custom west coast homes from Metchosin to Port Renfrew

Many of Clarkston’s projects feature unique rooms and custom finishing says. “When reflecting on the last year I feel a great sense of gratitude, first, for the faith and understanding of clients, and second, for the support of friends, colleagues and especially a loving family.”

During this time Paul volunteered his time and resources to manage the construction of a new multi-sport field for his community.

“With donations from local municipalities, dedicated volunteers, and generous suppliers we were able to build a state of the art field for about half of

its estimated value,” he says.

“With my entire family being avid soccer players, I was honoured for both the opportunity and responsibility to create this much needed asset for Sooke.”

While finishing the turf field, Paul was also engaged in two large oceanfront projects, one of which now has multiple nominations at this years Victoria Builders Association CARE awards.

“When I think about last year’s challenges, having a busy schedule and its required focus can offer a reprieve from such worries,” he reflects.

For the past year, his cancer tests have come back clear, and today, he can confidently say he is cancer-free.

Moving forward, the industry remains lively and opportunities abound.

“I do plan to do some low cost housing on some development land I have in Sooke,” he continues. “I have done $500 per square foot homes, and I feel I could work just as hard in the

opposite direction to build a $130 per square foot project, which is much needed these days.”

Paul has also recently become a Built Green member, and plans to incorporate some of this energy efficiency into a low cost architectural product.

“When it comes to growing the business, I’m in no rush to get any bigger,” reflects Paul. “I want to continue working close to home, and really focus on taking hold of and enjoying my time.“ Paul has three daughters, some of whom show interest in the construction industry. Perhaps Clarkston Construction will one day pass on to a third generation. www.clarkstonconstruction.ca

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SEPTEMBER 2018

STRONG PUBLIC SUPPORT FOR TOURISM IN GREATER VICTORIA

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PAUL NURSEY

T

ourism is an econom ic sector l i ke any other. It is made up of hard-working, entrepreneu ria l i nd iv idu a ls operating small businesses to executives in large corporations.

Greater Victoria has a long history of welcoming tourists from all over the world and tourism is a major component of the region’s economic base.

In May of this year Tourism Victoria released an economic impact study of tourism in Greater Victoria and found tourism employs over 22,000 people and has a total economic

output of $2.3 billion. We are having another strong tourism year in 2018 as wel l. T h i s i s big bu siness in a relatively small destination.

An increase in tourism can have many positive effects on a city or region.

But these benefits do not n e c e s s a r i l y a c c r u e to residents of a destination as a matter of course.

Tourism Victoria and its over 950 members not only work hard to bring tourists to Victoria, but also to ensure the community benefits as a result. We want acceptance and support of residents in Greater Victoria. We cannot be the world-class destination that we are without it.

It appears our hard work has paid off. Tourism Victoria and the Cruise Line Industry Association recently com m issioned a poll by Insights West. It polled Greater Victoria residents on thei r percept ion s of tou r ism i n the region. T he resu lts showed 86 per cent of respondents view tourism as “very important” and 92

per cent view tourism as having a “net positive” effect on the community. 83 per cent believed tourism was good for the economy and creates jobs. For those that were asked about the importance of tourism, there were no significant differences in responses by age, gender or religion.

Similarly, a clear majority of residents have positive perceptions of tourism in Greater Victoria, with more than six in ten feeling that tourism is “great for the region.”

To have the Greater Victoria community backing the tourism industry and supporting the individuals that make a living in this vitally important sector means a lot. We want to continue to showcase Greater Victoria as a vibrant and welcoming destination. And we cannot do it without broad-based and robust support from the residents of Greater Victoria.

Paul Nursey is the President and CEO of Tourism Victoria.

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SEPTEMBER 2018

IMAGES CRITICAL IN SOCIAL MEDIA-DOMINATED FOOD INDUSTRY

Most customers make their decisions long before they get to a restaurant, and they usually do it through imagery

Sight Comes Before Smell or Taste, Thanks to Social Media

N

ANAIMO - In the food service industry, social media can make or break a business.

“Things are different now than they were 10 years ago,” says Tim McGrath, owner and operator at ITS-Food.ca. “People don’t just show up at a restaurant anymore. They check on Facebook, Instagram, Yelp, TripAdvisor, or one of the many other social media outlets before they ever set foot in the establishment.

“People are making their decisions long before they get to the restaurant, and they usually do it through imagery.”

ITS-Food.ca specializes in food photography, taking pictures for cookbooks, food suppliers, restaurants, and other areas of the food world.

“One of the best ways to promote any business is through images, and the quality of the image makes a huge difference,” says McGrath.

“Given the choice, is a customer going to go to the place with really good looking food, or the place where the server took a picture with their iPhone? In this industry, the quality of photos can make or break a business.”

For the last ten years, McGrath has learned the ins and outs of the food industry. He works with clients to style dishes, choose the best angles, and use photos to create a narrative that appeals to their target audience.

“My job is to make you money,” he says.

“I do it through pictures of your products, and through telling a story that reaches the people you want to connect with.

“For example, if I’m trying to sell beef to a restaurant, I’m going to show how clean the stalls are in the barn, how clean the farm is, and how well-equipped it is.

“The story I tell with the photos is going to differ if I’m working with, say, an organic farmer with 20 cows compared to a processing centre. If a story is presented correctly, people are willing to pay a premium for goodness.”

Though food industry professionals can

“People will tell you they sell the sizzle, not the steak, but in reality, the eyes communicate with the brain faster than the nose. Customers may remember the smell for a longer period of time, but if it doesn’t look good, they don’t care what it smells like.”

TIM MCGRATH OWNER OF ITS-FOOD.CA

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“People will tell you they sell the sizzle, not the steak, but in reality, the eyes communicate with the brain faster than the nose,” says McGrath. “Customers may remember the smell for a longer period of time, but if it doesn’t look good, they don’t care what it smells like.

“Most people aren’t very good at taking pictures,” he continues. “Go through the last 30 pictures on your phone. How many have something off putting in the background, or have poor lighting with a shadow in the wrong place? I know what to look for and what to portray.” www.its-food.ca

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12

SEPTEMBER 2018

BUSINESSES NEED A VOICE IN UPCOMING ELECTION

ESQUIMALT CHRIS EDLEY

M

unicipal elections are coming up, and in Esquimalt there are some great discussions taking shape.

It’s interesting to hear about the things that voters see as priorities, and comparing them to

the things that businesses feel are priorities – keeping in mind that businesses don’t vote, yet many of the voter’s priorities directly affect businesses.

Lots of people in Esquimalt are looking for increased economic development, a walkable community with more retail storefronts, a pub… things that increase the feeling of community. This is all good, and they are the makings of a prosperous community!

Sometimes people don’t realize that there is a social cost to increased prosperity. These include things like increased development to “up” the population density – more people that can afford to shop in the community and therefore attract the shops

that they want.

T h e re i s a l s o t h e i s s u e of property tax. The majority of a community’s tax burden goes towards the services that residents use more than businesses (sewer, roads, parks, emergency services) yet businesses pay disproportionate property taxes.

While it may be fair to put a larger tax burden on businesses due to the nature of what they do, small businesses that employ locals and provide services often pay way more tax than might be considered fair.

Because the residents vote and the politicians want to keep taxes down, the tax burden often shifts disproportionately to the non-voting businesses. People don’t realize that the very things

they want in their community are being repelled like water off a duck’s back, by their desire to keep their taxes low. The high business taxes cause businesses to have a hard look at where they want to operate.

This message is an important one for Chambers of Commerce to deliver. I know many do, but the other day I was presented with a lament from a business owner who felt it was disappointing that the business didn’t have a vote. I said your message can only be heard if you join an organization that is influential, you share your thoughts with that organization, and they then advocate on your behalf. They joined the Chamber the next day.

If you wish your business had

a vote, and you feel a little frustrated as you watch the municipal election process, join your Chamber, share your thoughts with them, ask them to talk to the candidates.

It’s critical that our next flock of municipal councils understand the challenges that businesses face as t hey develop their platforms and engage their communities.

Chris Edly, CD P.Eng is President of the Esquimalt Chamber of Commerce. He can be reached at chris@edley.ca

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ou can’t manage what you can’t control!

You can’t manage the number of sales you’re going to make but you can manage the behaviour that will help you make those sales. Obviously you can’t predict who will buy and who won’t because only the prospect knows if they really want what you’re selling, if they have the budget and if they can make the decision to move forward.

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disqualifying those prospects who won’t or aren’t ready to move forward.

Sometimes salespeople will let persistence stall their sales development. It can often keep us from disqualifying the prospect. It may be that this is the wrong timing for the prospect.

We need to ask the questions and uncover if there is a better time to approach the topic.

That’s a good use of persistence but persistence is of no use if the prospect is not fully engaged in the agreement to regroup at another time.

Controlling your behaviour is about doing the things that will result in gaining business. It’s about taking control of where and with whom you spend your time. It’s about developing a plan and following it. It’s about being part of your plan rather than somebody else’s plan.

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OFF THE COVER

SEPTEMBER 2018

Vancouver Island Mack Continues to Expand Thanks to Exemplary Customer Service

The team at Vancouver Island Mack’s Langford location

VANCOUVER ISLAND MACK

“For me to best service my

CONTINUED FROM PAGE 1

customers, I need to be

Road in Cassidy, by the Nanaimo Airport.

“There’s quite a bit of industry out that way, so we’ll probably be there for a few more years,” he says. “We own property in Duke Point, and we’re looking to develop a facility that can serve the whole Nanaimo area from one location. We’re hoping to build it in the next couple of years.”

Vancouver Island Mack has achieved significant success, thanks to a strong group of passionate employees, and a commitment to customer service. Their team is now 60 strong, with 10 employees who have been with the company for the full 18 years.

With a great product and a great reputation, the dealership is poised to expand in coming years. In addition to the Langford location and plans for a Nanaimo expansion. Mayer hopes to expand service offerings in the North Island.

“We have service dealers in Port McNeill and Campbell River who fly our flag, but we hope to get some locations set up in Courtenay, and possibly somewhere between Port McNeill and Campbell River,” he says. “If we can make that happen, our drivers will have the support to carry them right through to the North Island, and they won’t need to pay a four hour tow bill if problems arise.”

Mayer understands the importance of customer service in his industry, because he is still a customer of the dealership.

“I still have a gravel pit operation and trucking company, so we regularly deal with things on the customer end,” he says.

“I think I understand our customers on a very deep level, and am able to empathize with their complaints and issues from a very similar perspective.”

That’s why Vancouver Island Mack carries specialized rental trucks that are loaned to clients, enabling customers to complete their jobs while their own truck is in the shop.

“I tell all my employees, from the managers to the people sweeping the floors: stand in your customer’s shoes,” says Mayer. “If they have an issue, look at it from their point of view and imagine what kind of service you’d want.”

Mack vehicles are an iconic North American brand, founded by five brothers in New York in 1900. They initially specialized in buses and trolley buses, and were some of the earliest innovators in diesel engine technology.

dedicated and loyal to one brand. I’m a firm believer in being very focussed in what you do. You’ve got to be passionate and do it well. We decided to stay as a Mack only store during that time, and it’s worked well for us.”

RICHARD MAYER OWNER OF VANCOUVER ISLAND MACK

“They were one of the first manufacturers to build all their own components,” says Mayer. “This helped them match all their components together when building an engine, helping it run together properly - a practice that continues to this day.

It’s makes things easier for us, because we only have one vendor to deal with.”

The trucks are also well-known for having a simple, durable engine. They feature simple wiring, electronics, easy hood releases that make maintenance and repairs as easy as possible and keep ownership costs down.

“That’s why I jumped at the opportunity to take on the Nanaimo franchise,” says Mayer. “They’re durable, simple vehicles that are easy to work on and easy to fix.

I’ve loved the brand for years.”

The engines, depending on the application, can easily last one million kilometers of highway driving before needing any serious engine work or a rebuild. With some heavy duty vehicles, like gravel trucks, the engine will typically last up to 30,000 hours before needing similar repairs.

Mayer has seen this durability firsthand.

“My other company has a 1993 Mack dump truck in the fleet that’s lasted 38,000 hours without ever being rebuilt,” he says.

2213 McCullough Rd, Nanaimo 13331 Simpson Rd, Cassidy 2920 Amy Rd, Langford www.vitrucks.com

13

14

SEPTEMBER 2018

BURKHART CONSTRUCTION TAKING ON COMMERCIAL RENOVATIONS New Restaurant Project One of Many Recent Commercial Projects by New Construction Firm

V

ICTORIA - Burkhart Construction Management Inc. is making a name for itself in the commercial construction world.

Only three years old, the company specializes in contracting for commercial and residential construction and renovations, and has managed several major

restaurant/pub and storefront renovation projects.

Recently, owner Sean Burkhart has begun a restaurant renovation on Pandora Street near Market Square. This restaurant is one of many commercial projects the company has undertaken since it began in 2015.

“It’s a new restaurant with about 50 seat dining area and a full-service bar and kitchen,” says Burkhart. “We’re working directly with the business owner and his team of consultants to see the project through.”

The project was commissioned by the owner of Bubby Rose’s Bakery & Cafe, and may feature

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some the bakery’s products, potentially offering lunch and dinner service.

Burkhart continues to develop a reputation for excellence in commercial renovation thanks to a track record of successful projects and recommendations from his colleagues.

Over the years, he has built key connections in the industry that have helped him get to where he is today.

“So much of my business comes from these connections,” he says.

“For example, I was hired for this restaurant renovation because of a recommendation from Kevin Frost, owner of Steelhead Design Ltd. Kevin, along with Karen Hillel of Hillel Architecture Inc., Mirek Demidow of Avalon Mechanical Consultants Ltd. and Bal Klear of AES Engineering who are designing the kitchen for the project.”

Starting with a renovation of The Loghouse Pub, Burkhart has been taking on more and more commercial projects, collaborating with his teammates to create a high-quality finished product.

“We just concluded work on The Farmer’s Daughter, which is a fromagerie and wine bar in Sidney,” he says. “Our company was hired as a design-build contractor, so we were able to help the client get a plan in place and realize their vision for the space.”

The Farmer’s Daughter features

Burkhart Construction Management specializes in contracting for commercial and residential construction and renovations a retail fromagerie in the front, where they sell artisan cheeses and sandwiches, and has a sit-down wine bar in the back.

“We were very passionate about the project and worked well with the client,” Burkhart says. “The client had a lot of ideas to help us create the overall look, and we feel proud that we were involved in the project from start to finish.”

In addition to commercial projects, Burkhart always has residential projects on the go.

“We do everything from a bathroom update to a kitchen reface to a full house renovation,” he says.

“We have quite a few projects on the go right now, including an insurance job, where we’re restoring

a home after a devastating fire.”

From early on in his career, B u rk h a r t to ok on a proje ct management role, hiring all the trades on behalf of the owner and ensuring the quality of the job as construction progressed.

“I’ve learned a lot about my own sense of style, passion, and drive,” he reflects. “In my role, it’s critical to listen, answer, and ask questions. I’ve found that leading this way empowers others to excel in their individual roles.”

According to Burkhart, this collaborative approach is the key to his success, and the reason he is sought-after in both the residential and commercial spheres. www.burkhartconstruction.ca

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OFF THE COVER

SEPTEMBER 2018

15

Jason Binab Brings Luxury Real Estate Franchise North of the Border JASON BINAB CONTINUED FROM PAGE 1

most iconic properties, including the Playboy Mansion, the Walt D i s n ey E s t ate , a n d fo r m e r residences of Michael Jackson, Michael Jordan, and Prince. “[T he Agency] also focuses on the mental, relational, and hea lt h a nd wel l ness side of t h e b u s i n e s s,” s a y s B i n a b.

“Their meetings are fun, and they regularly have fun events l i k e p i n g p o n g o r fo o s b a l l tournaments.”

The fun, innovative, strategic ethos of The Agency was a perfect fit for Binab who, along with Danyliw, plans on establishing the franchise on the Island before expanding into Vancouver, then Whistler, then Kelowna.

Binab currently stands at the top of Victoria’s lu x ury real estate market. He has won major

awards both locally and globally, including recognition for the highest number of sales in North A merica and second highest number of sales in the world out of 9,000 Engel & Vӧlkers realtors last year.

“Success in real estate doesn’t s t a r t t h e d a y yo u ge t yo u r license,” he says. “It starts in high school, when you learn how to be a good, genuine, caring person.

“This business is people first, houses second, so I’ve been developing my skills my whole life. I worked at McDonalds, BC Ferries, went to St. Michaels, and worked in a bar, so I can easily stand in other people’s shoes.”

T hese people skills have clearly paid off. Since entering the i ndustry i n 2005, Bi nab has moved an impressive $750 million in real estate, and has learned how to stick out in the

“The Agency incorporates culture into real estate.

Everybody else in LA is watching them, noticing how they design promotional material, get TV exposure, and break industry stereotypes.”

JASON BINAB

“ How a re you goi n g to b e memorable? For me, apart from my personality, I dress well and wear funky socks. There have been many occasions where I’ve met people who remembered my socks and were able to find me to help with their real estate needs.”

Binab has also developed a reputation for his on-screen experience. He co-hosted the TV show Design District, and was featured in three episodes of What’s for Sale? With a View, which is currently on Netflix.

He currently stars in a YouTube series called Rides With a Realtor,

where he combines the world of luxury real estate with luxury, e x o t i c c a rs, fe a t u r i n g T i m Quocksister and Joel Friesen of Silver Arrow Cars.

As Binab takes his next step with The Agency, he plans on maintaining the same central ethic at the centre of everything he does: “L ov i ng people, honesty, integrity, and a work ethic that’s better than anybody else. For so many clients, this is one of the biggest decisions of their lives, so I work as hard as I can for them.” www.binabgroup.com

MANAGING PARTNER AT THE AGENCY

industry.

“Before anything else, this industry is about loving people and working hard,” he says. “But it’s also about setting yourself apart so you stick out in people’s minds.

Binab and his team stand at the top of the Island’s luxury real estate world, with Jason winning international recognition for his sales numbers

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ORT ALBERNI - IceStorm is poised to sweep across the globe.

Coulson Ice Blast recently announced the release of their new product, IceStorm.

This industrial cleaning solution is the first machine that allows users to blast surfaces with either ice or dry ice at the switch of a button.

The Coulson Group of Companies began in 1960 when Cliff Coulson founded Coulson Forest Products Ltd. Nearly 60 years later, the company is run by Cliff’s son, Wayne, and grandsons Britton and Foster.

Coulson Ice Blast, which is run by Fosterm is one of the newest wings of the business.

The industrial cleaning equipment business is a multi-billion dollar business.

Everything needs to be cleaned. Coulson Ice Blast is the only manufacturer of industrial cleaning equipment to produce machines that blast with real ice.

“We were looking to de-paint one of our aircraft,” says Foster. “Many of the available cleaning methods were too expensive, and we had an engineer who had worked with a company that developed a mechanism that would take regular ice, crush it into small particles, and would blast out at high speeds using pressurized air.”

The company that developed this technology had gone bankrupt over a decade before, so they had this engineer build a system.

“It was very large at the time, but we knew we had something special and unique,” says Foster. “There was nothing else on the market like this.”

Foster took the helm of the newly acquired Coulson Ice Blast in 2015 and started investing in research and development the following year, creating a smaller, more affordable machine.

“We were recognized by R&D Magazine for one of the top 100 technologically significant products of the year,” he says. “From there, things have started to snowball. We have more traction, more distribution partners, which is part of our path forward for disrupting the industry.”

This new tech marks the first major wave of innovation in the cleaning industry in decades. Ice is a cost effective media with very little water waste.

“Our research has shown that the average return on investment for a customer ranges from three to six months,” says Foster.

The Ice Storm product is a compact machine that can take advantage of both ice and dry ice medias.

Ice is readily available, cost effective, and more aggressive, but dry ice is ideal for situations such as the cleaning of electrical components and fungal spore removal, where even minimal amounts of moisture are unacceptable.

“We wanted to create a tool that produced a lot of value for the customer,” says Foster. “We’re now the global leader in ice blasting technology and are going through a significant amount of growth. We have around 45 stocking distributors right now,

Foster Coulson has been leading Coulson Ice Blast since its beginnings in 2015

“Until we launched our product, the industrial cleaning industry hasn’t seen much innovation.

There was sand blasting in the 1800s, pressure washing in the 1900s, and few other notable innovations.”

FOSTER COULSON HEAD OF COULSON ICE BLAST

and we deal around the world all the time.”

As the company was developing this new product, they focussed on creating something that was not only cost effective, but that was esthetically pleasing.

“We’re disrupting an industry that hasn’t seen any change in decades,” says Foster. “Until we launched our product, the industrial cleaning industry hasn’t seen much innovation. There was sand blasting in the 1800s, pressure washing in the 1900s, and few other notable innovations.

“I believe we have created a tool for the customer that will generate significant value for consumers. Being able to own just one piece of cleaning equipment that is effective in many different cleaning applications is the ideal system.” www.coulsoniceblast.com

WHO IS SUING WHOM

SEPTEMBER 2018

WHO IS SUING WHOM The contents of Who’s Suing Whom is provided by a third-party resource and is accurate according to public court documents. Some of these cases may have been resolved by publication date.

DEFENDANT 606329 BC Ltd 303-1111 Blanshard St, Victoria, BC PLAINTIFF Trevor Matthews Painting CLAIM $9,276 DEFENDANT Bank Of Nova Scotia Trust Company 2900-550 Burrard St, Vancouver, BC PLAINTIFF Warhurst, Michael David CLAIM $7,750 DEFENDANT BC Ferries 500-1321 Blanchard St, Victoria, BC PLAINTIFF King, Paul J CLAIM $35,216

DEFENDANT Bronte Heights Developments Ltd 1626 Garnet Rd, Victoria, BC PLAINTIFF Cooper Pacific Ii Mortgage Investment Corporation CLAIM $1,192,757 DEFENDANT Canada Trust Company 12th Flr, 66 Wellingston St, Toronto, On PLAINTIFF Frandsen, John Torben CLAIM $ 30,756 DEFENDANT Castera Properties Inc 3-772 Bay St, Victoria, BC PLAINTIFF Duncan, John B CLAIM $25,576 DEFENDANT Coching Mortgage Corp 200-931 Fort St, Victoria, BC PLAINTIFF Warhurst, Michael David CLAIM $ 7,750 DEFENDANT Cowichan Lake Holdings Ltd 485B Garbally Rd, Victoria, BC PLAINTIFF Painters Plus Services CLAIM

$ 10,291 DEFENDANT Engel & Volkers Vancouver Island 735 Humboldt St, Victoria, BC PLAINTIFF Leard, Bonnie CLAIM $ 27,079

CLAIM $ 9,806 DEFENDANT Island Group Services Inc 735 Humboldt St, Victoria, BC PLAINTIFF Leard, Bonnie CLAIM $ 27,079

DEFENDANT FW Enterprises Ltd 3455 Fairwinds Dr, Nanoose Bay, BC PLAINTIFF Vallance, Grace CLAIM $ 35,236

DEFENDANT KB Grewal Construction Ltd 2170 Nicklaus Dr, Victoria, BC PLAINTIFF Leard, Bonnie CLAIM $ 27,079

DEFENDANT G Holland Painting PO Box 534, Croften, BC PLAINTIFF Stirling, David CLAIM $ 7,712

DEFENDANT Kodiak Cabinetry 600 Ridge Grove Ave, Victoria, BC PLAINTIFF Derby, Byron CLAIM $ 29,656

DEFENDANT Ginther Agencies Ltd 935 Spring Pl, Nanaimo, BC PLAINTIFF Ivanyi Investments Inc CLAIM $ 169,040 DEFENDANT Greens Excavating 411 Oak Ave, Parksville, BC PLAINTIFF Coast Environmental Ltd

DEFENDANT Loki Tiling 407-3206 Alder St, Victoria, BC PLAINTIFF Avery, Hinda CLAIM $ 35,346 DEFENDANT Mortgage Centre Coching Mortgage

103-719 McCallum Rd, Victoria, BC PLAINTIFF Warhurst, Michael David CLAIM $ 7,750 DEFENDANT Nancys Electrical Services Inc 40 Cavan St, Nanaimo, BC PLAINTIFF Owners Strata Plan VIS3995 CLAIM $35,176 DEFENDANT

Nanoose Bay Services Ltd 4288 Delbrook Ave, North Vancouver, BC PLAINTIFF Tool Shed CLAIM $ 17,832 DEFENDANT NU View Homes Ltd 202-3750 Shelbourne St, Victoria, BC PLAINTIFF Coastal Heat Pumps Co Inc CLAIM $ 6,320 DEFENDANT RD Lightle Excavating Ltd 1143 Bellevue Rd, Parksville, BC PLAINTIFF Little Mountain Transport Ltd CLAIM

17 $ 17,237 DEFENDANT RKE Enterprises Ltd 7-9843 2nd St, Sidney, BC PLAINTIFF Owners Strata Plan VIS5366 CLAIM $ 17,359 DEFENDANT Seacliff Properties Ltd 3455 Fairwinds Dr, Nanoose Bay, BC PLAINTIFF Vallance, Grace CLAIM $ 35,236 DEFENDANT Seba Construction Limited 1167 Jolivet Cres, Victoria, BC PLAINTIFF New Heights Contracting CLAIM $ 32,216

MOVERS AND SHAKERS

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SEPTEMBER 2018

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Doug Kobayashi Doug Kobayashi has been appointed to the Royal Roads University Boa rd of G overnors.

Kobayashi leads Think Strategy, a management consulting firm specializing in strategic planning, business diagnostics, product development and performance management systems. Previously, he was an aerospace engineering officer for the Royal Canadian Air Force. After 20 years of military service, he worked as a professional engineer and senior executive in the aerospace industry.

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Heather Gardiner has been appointed chief executive officer for the Community Social Planning Council. Gardiner has over 20 years of business, non-profit and marketing experience. The organization leads social, environmental and economic research and planning in Greater Victoria.

Accent Inns adds Don Fennerty to their team as vice-president of operations. Fennerty is a former general manager of the Empress

NeurAlive Technologies is open for business at 2035 Oak Bay Avenue in Victoria. The company uses advanced brain-training technology to assist clients with their self-improvement efforts.

Don Fennerty Hotel and has more than 25 years of hospitality experience, including almost 15 years with Fairmont Hotels and Resorts. In his new role, Fennerty will lead the team of general managers in day-today operations for the Accent Inns brand in Victoria, Vancouver, Burnaby, Kamloops and Kelowna and the Hotel ZED division.

The Renaissance Retirement Residence recently celebrated their 20th anniversary at 1188 Esquimalt Road.

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Michael Corrigan Former BC Ferries chief executive Michael Corrigan has been appointed to the Vancouver Fraser Port Authority board of directors for a three-year term. Corrigan is currently the chief executive of Interferry Inc, a trade association that represents the ferry industry around the world.

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Gigi’s Gift Co. has acquired Vancouver Island Gift Baskets. The company provides handmade gift boxes and baskets filled with local, small-batch artisan products.

The baskets are ideal for corporate gift giving and can be delivered and enjoyed both locally and coast to coast.

The Family Business Association Vancouver Island (FBAVI) is accepting nominations for the 2019 Family Business Excellence (FBE) Award and the Young Entrepreneur Award. Nominations are being accepted until October 12 while the celebration gala will be

Canadian Tire awarded the City of Victoria with a $1-million grant to support accessibility at the new $69.4-million Crystal Pool and Wellness Centre. The funding came through Canadian Tire’s jumpstart program “Play finds a way”, which provides funding to efforts that remove barriers to accessing sport and play. The investment will be applied to features like lifts for the pool tanks, fully accessible change areas, as well as adaptive sport and fitness equipment.

Kaleidoscope Theatre has appointed Pat Rundell as their new executive director. Rundell has over 15 years of experience in the performing arts community and has worked at all levels in the industry with some of Victoria’s leading artists and arts organizations. Rundell’s portfolio of work includes the Victoria Operatic Society, Intrepid Theatre, Puente Theatre and Langham Court Theatre.

The HarbourCats baseball team placed ninth out of 100 West Coast League (WCL) teams for their regular season attendance.

This season the team broke their own regular season attendance record of 60,466, by hosting a total of 62,599 fans through their stadium this year. The team beat a WCL record by having an average per-game attendance of 2,318.

Victoria has been named one of the friendliest cities in the world by Conde Nast Traveler, a lifestyle magazine owned by the same publication that produces Vogue, Teen Vogue, The New Yorker, Allure and Vanity Fair.

Victoria was the only city in Canada to make the top 10 list. Last fall Conde Nast Traveler named Victoria the second-best small city outside the US. Heather Buckley, a green chemist and civil engineer at the University of Victoria (UVIC), was part of a team that earned first place in a global competition to identify new preservatives for use in cosmetics and household products. Buckley led a 10-person team that earned UVIC $35,000 in SEE MOVERS & SHAKERS| PAGE 19

MOVERS AND SHAKERS

SEPTEMBER 2018

MOVERS AND SHAKERS CONTINUED FROM PAGE 18

prize money from the Green Chemistry and Commerce Council (GC3).

Susan Simosko Susan Simosko, president of the Sidney Business Improvement Area Society, has been elected to the board of the Business Improvement Areas of British Columbia, the society that represents 60 Business Improvement Association’s across the province.

U-bicycle, a Victoria bike sharing program, has repu r posed 25 bi kes a nd donated them to Anawim Companion Society. The local not-for-profit is making the bikes available via an application process to determine the intended use of the repurposed bikes.

The donation comes from an effort from U-bicycle to extend the life of damaged bikes by placing them in the hands of new riders permanently rather than selling them for scrap metal.

at 14 – 2510 Bevan Avenue in Sidney. The top producers were Craig Walters, Anthea and Gay Helmsing, Don Bellamy and Jeff Meyer while the top lister was Shelley Mann.

Colwood Dental Group welcomes Dr. Austin Andrew to their team of dentists at 318 Goldstream Av e n u e . D r. A n d re w s attended the University of Victoria for his undergraduate degree and completed his Doctor of Dental Medicine degree at the University of Saskatchewan.

Global Village Store at 527 Pandora Avenue recently celebrated their 30th anniversary. Global Village is a non-profit store that sells fair-trade goods from 28 countries and 52 producers from around the world.

Profits from the company go back to the producers or to grants and fundraisers around the world.

Re/Max Camosun congratulates their top producers of the month for their team at 101 – 791 Goldstream Avenue. They are Lorne Tuplin, Shirley Zallo, Kris Gower, Roy Banner, Dale Sheppard and Jennifer Bruce.

Victoria Lavender closed to the public as of September 2 nd permanently while owner Alan Mayfield prepares to retire. The shop on Beacon Avenue will remain open.

Re/Max Camosun Peninsula congratulates their top producers and lister of the month for their team

V2V Vacations announced they will add day trips to their ferry schedule this fall between Vancouver and Victoria. Between September 20 and October 15, the V2V Empress will depart from Vancouver at 8 am and arrive in Victoria at 11:30 am. The ship will then depart from Victoria at 4 pm and arrive in Vancouver at 7:30 pm. From October 16 onward, V2V’s daily service will cease and the vessel will resume with regular service beginning March 15, 2019.

SEE MOVERS & SHAKERS| PAGE 20

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MOVERS AND SHAKERS MOVERS AND SHAKERS CONTINUED FROM PAGE 19

T h e We st Shore A r ts Council in collaboration with Coast Collective Gallery and Art Centre have opened a pop-up store called Art + Fashion Collective i n the La ng ford Mall. The store features a number of hand-made pieces by local artists including jewelry, children’s toys, pottery, bow ties, clothing and paintings.

The pop-up store is open from Wednesday to Sunday from 11 am to 5 pm until October 15.

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GT Mann Contracting has received 22 nominations in 17 different categories from the Victoria Residential Builders Association (VRBA) for the 2018 Construction Achievements and Renovations of Excellence (CARE) Awards. The winners will be announced at the awards gala held on September 29 at Fairmont Empress Hotel.

I sl a n d s We st P roduce opened a new 50,000-square-foot fa c i l it y i n Sa a n ic h on Douglas Street. The new distribution facility employs around 130 which handle 25 scheduled truck

SEPTEMBER 2018

departures each and every day. The facility was designed by owners Ian and Wayne Fatt who bega n the multi-year process to develop the property in 2011. The process involved rezoning a portion of the former property to develop 33 townhomes and eight single-family dwellings next to the facility.

Cowichan Valley-based Merridale Cider is the most recent addition to Dockside Green, a mixed-use, sustainable neighbourhood in Victoria West. Plans for the new location at 356 Harbour Road includes a four-storey brewhouse and distillery with a full-service kitchen, taproom and retail space. Visitors will be able to tour the facility via a catwalk built around the perimeter, overlooking temperature-controlled rooms housing aging barrels. The company is planning on brewing beer and distilling whiskey at the new facility. Doors of the new facility are expected to open in the fall of 2019.

T he University Centre Farquhar Auditorium has rebranded to The Farquhar at UVic in preparation for their 40th season beginning September 22. The venue

is a key component of the community, hosting the majority of high school graduation ceremonies as well as concerts by local arts organizations like the Victoria Choral Society, Victoria Symphony and the Greater Victoria Youth Orchestra.

Mayfair Centre’s $72-million transformation is nearing completion and seeing new locations and larger spaces opening for business. Sport Check, Saje Natural Wellness and an expanded Aritzia fashion store are the first to open. They will be followed by new stores for Olsen Europe, MAC Cosmetics and Ann-Louise Jewelers and Indigo. The incoming Indigo outlet will replace the Chapters bookstore in downtown Victoria. Additionally, Mayfair is opening a new space called Connect on October 1, which features local artists, designers, vendors and artisans.

The space is organized by local design house Studio Robazzo.

Simon Park, a mechanical engineering student at U V IC, h a s b een accepted for an eight-month SEE MOVERS & SHAKERS| PAGE 21

9/21/2017 1:49:17 PM

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SEPTEMBER 2018

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internship at Tesla headquarters in Palo Alto, California. Park received the internship to further develop his electric-assisted motor invention called the Caboost. The Caboost is an attachment for the rear of a bicycle that pushes you up to 50 km per hour and is capable of carrying bags, groceries, backpacks etc.

Park was one of three winners of the Open Innovation Challenge put on by the South Island Prosperity Project, netting a $15,000 investment in the development of the product.

Camosun College is celebrating the 30 th anniversary of their Fine Furniture Program. Roughly 500 students have graduated from the program and gone on to careers in the industry across the Island and the Lower Mainland. In celebration of the program’s achievements, the University of Victoria’s Legacy Gallery is exhibiting the design work of 30 students until September 22. The exhibit is called Making It: A Celebration of the 30th Anniversary of Camosun College’s Fine Furniture Program and focuses on chairs.

Kent Bendall, owner of Pic-A-Flic, a n nou nced the store will move from its location in Cook Street Village to a spot at 1519 Pandora Avenue. A new four-storey, 48-unit building proposed by Aragon Properties on the current site is behind the move for the storefront which has called the location home for the past 35 years.

The Victoria Events Centre is installing a workspace and coffee shop as a pilot project for one year.

The Victoria Multicultural Society (VEC), owners of the V EC, received a $20,000 Building Healthier Communities grant from Coastal Community Credit Union in a competitive bidding process. The non-profit café will be a space where people can buy coffee, teas and snacks and work without feeling obligated to make a purchase.

The new work space and café are expected to open in the fall.

The Art Gallery of Greater Victoria has added Robert Coulter, Norbert Gilmore and Anne Minnings to their board of directors. Ruth Wittenberg remains on

21

the board as past-president while lawyer Christopher Jones takes over the helm as president. Jackie Hamilton, Anne Russell and Fran Willis have left the board.

The Art Gallery board has added Chris Lawless, a chief economist with the Ministry of Finance to their board.

Westshore Music Academy recently marked their 5 t h ye a r of b u si ness at 1039 Langford Parkway.

The company founded by Sabine and Andreas David offers private lessons for over twenty different instruments and employs 18 professional instructors.

For the 2018/19 school year, the academy has added drumming group classes, drumming rudiment classes, early childhood/ pre-school music classes, community choirs for kids and adults, guitar ensembles and more.

Congratulations to the top c a r sa lesp eople of the month at dealerships across Victoria. They include Ali Ziaee of Harris Auto, Jay Dick of Jim Pattison Toyota, Raymond Martin of Jim Pattison Lexus, Todd Lindsay of Pacific Mazda, Sean Haylow of W heaton, David Vollet of Audi Autohaus, Brent M o r o z o f Vol k s wa ge n Victoria, Glen Butcher of Victoria Hyundai, Matt Kennard of Porsche Centre, Ken Dinnadge of Three PT Motors, Evan Souliotis of BMW Victoria, Jason Ogilvie of Jim Pattison Volvo, Frank Burgaretta of Wille Dodge, Justin Stacey of Jenner, John Weiers of Campus Honda, Rome Tewelde of Campus Infiniti, Tamer Feitah of Graham K IA, Frank Percorrelli of Campus Nissan, Mauricio Bingham of Jim Pattison Subaru and Nick Lee of Campus Acura.

T he Open Space A rts Society has named a new board for their artist-run contemporary arts centre i n dow ntow n Victoria.

The board was elected for a two-year term and includes Sabrina Williams, Charles Campbell, Eli Hirtle, Doug Ja r v is, M a rla E du a rd a Mendes Martins, Alexis Hogan, Kemi Craig, Joshua Ngenda, Lee Henderson, Angus Ferguson and Mark Loria. Hunter Boucher will serve as past-president for the coming year.

Dr. R ich a rd G a le h a s been named the new director of Camosun Innovates, the applied-research

Dr. Richard Gale arm of Camosun College.

Gale recently served as vice-president of academics at Capilano University and as the founding director of Mount Royal University’s Institute for the Scholarship of Teaching and Leadership.

The Coast Waste Managem e nt A s s o ci at i o n h a s named their new board of directors. They are Jeff Ainge of Jeff Ainge & Associates; Wendy Dunn of the Capital Regional District; Peter Grant of Salt Spring Island Community Services; Harmony Huffman of the Cowichan Valley Regional District; Mark Kurschner of the Product Care Association; Brendan McShane of Recycle BC; Leo Lawson of BC First Nations Solid Waste Working Group; and Ed Walsh of Emterra. The Coast Waste Management Association is a membership group that serves the solid-waste and recycling industry.

UrbanSmiles Victoria has added longtime Victoria dentist Dr. Darryl Sinclair to their team at 823 Broughton Street.

MacDonald Realty welcomes Kimberly Legeard as their latest addition to their team of realtors. Kimberly is a second-generation Island realtor and previously had a career in marketing and development.

Carey Newman a Sooke born a nd ra ised a rtist, has received the Order of BC award. Newman was recognized for his lifelong contributions to First Nations art as well as his recent art project the Witness Blanket. The blanket is a wooden installation piece made of items from residential schools, churches, cultural structures and government buildings.

Newman travelled across Canada and collected items to create the blanket which helps to share stories about residential schools. Newman accepted a position as an art professor at the University of Victoria, which he begins this fall.

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OPINION

22

SEPTEMBER 2018 A division of Invest Northwest Publishing Ltd. 200-3060 Cedar Hill Road, Victoria V8T 3J5 Fax: 1.250.642.2870 Toll free: 1.866.758.2684 Website: www.businessexaminer.ca

PUBLISHER/EDITOR | Lise MacDonald SALES | Josh Higgins – josh@businessexaminer.ca,

Cheryl Lee – cheryl@businessexaminer.ca

John MacDonald - john@businessexaminer.ca WRITERS | Julia MacDonald, Beth Hendry-Yim, David Holmes, Kristin Van Vloten, Val Lennox

IF DONALD TRUMP IS SURPRISING PEOPLE, THEY HAVEN’T READ HIS BOOK

MARK MACDONLD “The Art of the Deal” is the Magna Carta of Donald Trump.

If people are surprised by what they are seeing from this President of the United States, then they haven’t done their home work and read what is probably Trump’s signature piece. The book is an explanation of almost everything he’s done since gaining the White House in terms of foreign and domestic economic policy.

He makes deals. He lives to make them. He has a method, and it obviously works.

Having the most powerful person in the world – not a life-long, slick-talking, non-feather ruffling politician - negotiating in public is uncomfortable. Especially if one is riding the ebbs and flows of the stock market, which rises and falls sharply depending on which Trump’s negotiating

tactic-du-jour is trotted out, and against which country.

Trump did what any effective negotiator would do when negotiating his most recent joint dealings with Canada and Mexico: He divided. By taking Mexico into another room, so to speak, first, and getting a better deal for the U.S., he then had something he could take to Canada with words something like: “Here’s what I have from Mexico. I want something similar, or even more. . .”

He’s a New York City street fighter, who describes himself in interviews thusly: “I’m a counter puncher. . . I then respond by maybe 10. I respond pretty strongly.”

That echoes what his wife reportedly said, when asked what her husband was like: “If you punch him once, he will punch you 10 times.”

This is the man who is negotiating with Canada on arguably this generation’s most important trade deal. To keep NAFTA or dump NAFTA – that is the question. And he’s supremely overmatching Canadian Prime Minister Justin Trudeau.

As political wag Newt Gingrich suggested following the completion of U.S. –Mexico negotiations, Trudeau’s backhanded swipe at Trump once the

American President left the G-7 summit wasn’t the best way to handle him. Trump has a good memory, wrote Gingrich.

Is that enough to further tilt the negotiating table and give Trump extra incentive to take Trudeau to task? One would think trade talks that will affect countless companies on both sides of the 49th wouldn’t come down to that.

But why take that risk in the first place? Oh, of course: The opportunity to score cheap political points with American hating Canadian voters.

Let’s face it, Trudeau hasn’t exactly been shining on the international stage of late. Historically speaking, the federal Liberals have not been propellants of free trade, and although they’ve lived with agreements made by Conservative parties led by Brian Mulroney and Stephen Harper, they have not been initiators.

Trudeau’s no-show at Trans Pacific Partnership talks and lecturing/insisting on non-business “values” have harmed trade relations with China and Saudi Arabia, not to mention his multiple faux pas that angered the Indian government.

Stakes in a trade deal with the U.S. are much, much higher.

Canada has much to lose, and is in a weakened negotiating

stance with the Mexico deal done and Trump on the other side of the table, this country best hope the Americans are feeling benevolent.

Trump’s actions are not surprising for many. He’s doing pretty much exactly what he said he would do if elected President, and keeping many of his promises. For those whose only media diet is the Democratic Press (CNN, NBC, ABC, CBS) that fans the flames of loathing and distrust, they see Trump as a menace.

But we’d be remiss if we didn’t note that Americans also tune in to Republican favourable FOX and that half of Americans who voted did so for Trump. There are many south of the border that actually like what he’s doing, even though they may not like how he says it.

Is Trump’s near dominance of U.S. media providing a smokescreen for what the Trudeau government is doing here at home?

The mishandling of the Kinder Morgan pipeline expansion is the latest in a long line of bungling that holds dire, long-term consequences for this country.

When Trudeau swept to power in 2015, Canada’s economy was posting budget surpluses, provinces were getting along – even Quebec was happy – and we were

enjoying a re-emergence on the worldwide stage.

Today, we have inter-provincial drama, raised eyebrows and shrugging shoulders from nations that have historically been good friends, plus massive deficits.

Why should we be surprised?

This is the son of Pierre Elliott Trudeau, the author of federal deficit financing who, by the time he was finished, infuriated Canadians with ample dollops of arrogance and disdain from coast to coast.

His worst legacy of all? The National Energy Program, which brought Alberta to its collective economic knees overnight. He wanted a weaker West, which he got, but it also resulted in “the West wants in”, and we were.

Many were hoping this Trudeau’s earlier signs signaling a return to a weaker West weren’t mirror images in “Like father, like son” fashion. The pipeline? Does anyone really believe self-proclaimed ultra-green Trudeau will really be the one to push this project to completion, with Alberta being the beneficiary? It’s NEP II, most likely.

Surprised by Trump? Surprised

by Trudeau? We shouldn’t be.

The signs have been there for all to see.

AVERAGE WORKERS WILL ULTIMATELY PAY BC’S NEW PAYROLL TAX

THE FRASER INSTITUTE

BY CHARLES LAMMAM AND TAYLOR JACKSON

B

C Finance Minister Carole James called Medical Services Plan (MSP) premiums “unfair” and argued in a news release that her government’s replacement Employer Health Tax (EHT) is a “much fairer and progressive approach.”

More broadly, Premier John Horgan government’s rhetoric about the new tax suggests it will push the burden onto employers

and away from workers.

In reality, the EHT, like the MSP premiums it’s supposed to replace, will cost average British Columbians in the form of reduced wages and job opportunities. And it will further erode the province’s investment climate.

Beginning in January 2019, the EHT will be levied on employers with payrolls over $500,000.

The tax, which increases with an employer’s payroll costs, is expected to generate almost $2 billion of annual revenue in 201920. It will replace the revenue from MSP premiums, which are being phased out (although for 2019, both the MSP and EHT will be in force, creating a taxation double whammy).

Just because employers will pay the tax on behalf of their employees, it doesn’t mean that employees won’t pay the tax. They will and here’s why: Employers view payroll taxes as part of the overall compensation paid to workers. As these taxes increase, there’s less money

available for the wages and benefits for employees and investments in innovation, expansion and tools that improve worker productivity. Therefore, over time, wages will not grow as fast as they would without a payroll tax. So workers ultimately bear the cost of payroll taxes through reduced pay.

This logic has considerable empirical support. A recent Fraser Institute study analyzed data on payroll taxes and average wages and found that increasing the employer payroll tax rate reduces the average hourly wage of workers. Based on the results, just a one percentage point increase in the average payroll tax rate would reduce annual wages by between $137 and $605.

T h i s i s not t he on ly Ca nadian-based study to come to such a conclusion. Economists based at HEC Montréal similarly found that “payroll taxes are passed almost entirely to workers in the form of lower wages.”

Moreover, in a review entitled “Payroll taxes: Killers of jobs,

killers of wages,” leading labour economist and University of Toronto professor Morley Gunderson summarized the evidence on payroll taxes as follows: “much of the burden of the payroll tax - evidence suggests approximately 80 per cent - is ultimately shifted to labour in the form of lower wages even if it initially is ‘paid for’ by employers. This is especially true for lower wage workers, who are less skilled and are not sufficiently mobile to ‘escape’ the tax. Thus, the appeal of taxing rich corporations through a payroll tax is based largely on a false image.”

Gunderson also notes that it takes time for employers to shift the tax burden to labour, so in the intervening period, they may respond to higher labour costs induced by the tax by reducing employment and output.

Another problem with the EHT is that it’s yet another tax hike by this government, on top of higher taxes on personal income, corporate income and the carbon tax. So the EHT is another blow

to BC’s competitiveness and will send more negative signals to investors and entrepreneurs that the province is not an attractive place to invest.

Even the government’s MSP task force warned against using a payroll tax to replace MSP premiums, noting that: “A payroll tax would reduce the competitiveness of BC businesses at a time when they are facing several competitiveness challenges, including expected increases to the minimum wage, CPP increases, and recent tax reform in the U.S., which improve the competitive position of many U.S. businesses.”

The bottom line is that when the EHT is implemented in January, BC’s competitiveness will take another hit and ordinary workers will ultimately foot the bill.

Charles Lammam is director of fiscal studies at the Fraser Institute and Taylor Jackson is an independent researcher.

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