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VOLUME 25, NUMBER 11, 0834-2010

NOVEMBER, 2010

LEEDing the way:

QuadraTec helps buildings go green

IN THIS ISSUE:

•Ocean technology start-ups •Managing for innovation •Changes to R&D tax credit


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Contents IN THIS ISSUE Business News is a monthly publication of the St. John’s Board of Trade. Reproduction of any material contained in Business News is permitted provided written approval from the St. John’s Board of Trade. Articles and criticisms are invited, but opinions expressed by contributors do not necessarily represent those of the St. John’s Board of Trade. We encourage you to support the business leaders whose names and products you see advertised in this issue as well as throughout our entire membership. The Board reserves the right to edit submissions. Printed by: Layout:

Derek Sullivan Jo Mark Zurel Steve Power Denis Mahoney Bruce Templeton Sherry Walsh

CHAIR’S MESSAGE FEATURES

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KEEPING CURRENT

British Group of Companies Roxanne Abbott

ST. JOHN’S BOARD OF TRADE EXECUTIVE

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COVER STORY

MEMBERSHIP

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Chair Senior Vice-Chair First Vice-Chair Second Vice-Chair Immediate Past Chair Secretary-Treasurer

BOARD OF DIRECTORS Kim Keating Jerry Kirkland Jeff LeDrew Margot Bruce O’Connell Brenda O’Reilly Celina Stoyles

STAFF Nancy Healey Jennifer Ryan Shari Palmer Margie Davis Craig Ennis Wanda Palmer Sherry Ryan

Chief Executive Officer Controller Business Affairs Manager Sales Manager Vice President of Policy and Communications Events Marketer & Administrative Coordinator Member Relations Administrator

St. John’s Board of Trade 34 Harvey Road P.O. Box 5127 St. John’s, NL A1C 5V5 Canada Tel: (709) 726-2961 Fax: (709) 726-2003 E-mail: mail@bot.nf.ca Website: www.bot.nf.ca

Business News

November 2010

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Cover Story leeding the way QuadraTec helps buildings —new and old—go green

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hat admirable qualities do the Royal Newfoundland Constabulary Headquarters, the GEO Centre, Paradise’s new K-6 school, and the soon-to-be-built Faculty of Medicine building share—that can’t be seen? If you answered: “They have leading-edge mechanical and electrical systems that keep the costs of running them, and their ecological footprint, small,” you’d be right. But chances are you didn’t know.“People have heard about ‘green buildings’ but they think they’re being built in other provinces, not here,” observes Trevor Blackler, Principal and Electrical Engineer with QuadraTec Inc. Consulting Engineers of St. John’s. “They simply don’t realize that such buildings are all around them—there are several green projects in the works right now, particularly in downtown St. John’s and vicinity.” Blackler knows because QuadraTec, one of Atlantic Canada’s leading mechanical and electrical engineering firms, is often providing the expertise behind these buildings’ lighting, heating, cooling and other systems. Based on Water Street, QuadraTec’s nearly 50 employees include a complement of LEED Accredited

Professionals. Their work has played a key role in making all the buildings listed above, and many others, some of the province’s most noteworthy green structures. “LEED” means “Leadership in Energy and Environmental Design”; it’s a North American ecology-oriented building certification program run in this country by the Canada Green Building Council (CaGBC). Newfoundland and Labrador currently has 28 building projects (some already completed) registered with the CaGBC to be “LEED certified”; QuadraTec is involved with 13 of them. If awarded, LEED certification means, in part, that they meet strict parameters for energy efficiency by incorporating lighting, ventilation, heating, cooling and energyuse monitoring systems that yield a very low carbon footprint. QuadraTec’s input takes place largely behind the scenes, in a back-and-forth dialogue with the architect and client, in which the impacts and options of design and structural choices are explored. “We provide input to mitigate heat loss or solar gain caused by windows, insulation, placement of walls, materials, and more,” explains Mike O’Reilly, Principal and Electrical Engineer. They also design the internal systems that “run” the building. This complex process requires

The MUN Faculty of Medicine and Centre for Human Genetics Building, currently under construction: one of several LEED registered buildings in the capital city area that QuadraTec is involved in designing. (Rendering compliments of PHB Group Inc.) 2

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sophisticated building-modelling software to calculate how design and engineering parameters will affect the structure’s performance and energy rating. It also requires a highly skilled workforce. “Gone are the days of calculating with a slide rule,” notes Tony Dawe, Principal and Mechanical Engineer. “But the technology’s versatility and the options open to us allow us to fine-tune the engineering to a highly sophisticated degree.” The benefits of this engineering include reducing greenhouse gas emissions, racking up carbon credits, demonstrating good corporate citizenship, and providing healthier places to work, live and play— but substantial bottom-line incentives are also a huge motivator for businesses. “Recently, we completed a refit of lighting and ventilation controls for a large office building,” relates O’Reilly. “The very next month, the local utility called—the decrease in their power use had been so great, they thought something had happened to the meter.” A proposed Basilica renovation is another case in point: plans call for the current oil-furnace heating system to be replaced with an airto-air system, unobtrusively integrated into the historic stone structure and its grounds. Estimated savings? Energy use reduced by 63 per cent for an annual savings of $50,000 to $60,000. “Building a green structure costs a little more initially,” acknowledges Blackler. “But people are seeing that the long-term payoffs are well worth the investment.” And it’s not just large building owners who are convinced: several QuadraTec staff members are so taken by what these systems can do that they’ve built or retrofitted them into their homes—a personal endorsement of how much sense going green can make. On the cover: Technologist Wayne Quilty, Mechanical Engineer Brad Dawe, and Electrical Engineer Trevor Blackler of QuadraTec Inc. inside the newly constructed K–6 school in Paradise. (Photo: Rhonda Hayward) Business News


Chair’s Message innovation Toward a knowledge economy

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nnovation, at its root, is not about dollars and cents. Some of the biggest strides in innovation come from having a curious mind and a challenging nature. Focusing on the big idea first and the barriers and financial constraints second liberates your thinking. So, what’s the big idea? St. John’s is a knowledge economy. We have a university with considerable assets; we don’t have a pervasive heavy industry base. We have business and technology incubators; we don’t have reliance on a single commodity. We also have a chance to build a future by focusing on ocean-based and oil and gas-based knowledge; we don’t have the luxury of waiting. The Atlantic Provinces Economic Council recently said that urban areas in Atlantic Canada (including St. John’s) are growing in employment and population. It noted in particular that employment growth in urban areas is linked to a more global, knowledge-based economy; “expanding sectors such as the information and communication technologies (ICT), biosciences, and aerospace and defence are typically located in or near cities as they rely on access to a highly trained labour force as well as advanced transportation and communications systems.” It goes to show that competitive and evolving cities are going the knowledge direction. The same study also said that the growth of the resource sector boosts employment in urban-based professional services. “Many of the high-paying jobs in firms which supply the sector (including engineering, project development and other professional services) are typically located in the region’s cities” and we are reaping employment growth that is higher than the national average as a result. Recently, there have been consultations on the City’s Strategic Economic Roadmap. That roadmap will be the 10 year plan designed to make St. John’s a magnet for people, business, investment and visitors. Knowledge industries are going to be the key economic driver of the future in this city; that roadmap will

Business News

Chair, Derek Sullivan have to advance knowledge strategically, quickly, and communally. And that means tying international transport linkages with dense office space with post-secondary

“Our future is based in learning from the vast and varied natural resource development in and around this province and then exporting our expertise around the world.” education with much more into the roadmap. All these things and more add to an economically vibrant city. This is an ideal time to talk about the knowledge economy, and what it means to businesses in St. John’s. It is also the ideal time for visioning and roadmapping. We are near a peak in oil production, which is contributing to our economy in a very significant way. Let’s take the knowledge and those professional services that we are creating from that and other industries and work towards creating a sustainable economy. Our future is based in learning from the vast and varied natural resource development in and around this province and then exporting our expertise around the world. A quick side-note: I have heard people ask about ‘sustainability’ and what it means. It’s a buzz word, so I understand November 2010

the confusion. In the simplest sense, it means ‘allows it to continue’. A sustainable economy doesn’t run out – it is based on being able to produce a commodity or service in a competitive way and then keeping that competitive advantage. A sustainable economy is a knowledgebased economy, and it is critically important that we have both the technical and non-technical tools necessary to be at the top. The British Property Federation notes that increased density leads to increased productivity in five key ways – four of those benefits are related directly to innovation: increased specialization; knowledge spillovers, leading to increased innovation; larger labour markets which create opportunities to recruit specialized staff; and competition as a driver of innovation. Cities wishing to compete (and win) on the national and international stages must always push the innovation envelope and have the tools to support those efforts. A comprehensive university and an international airport are two particular elements identified for such competitive cities and that’s why the Board supports the airport’s bid to enhance its infrastructure, and why we have partnerships with the university. Identify and support existing strengths, identify and support sectors that will sustain you. It’s a path to success in innovation. In the first three sentences of this column, you learned about my view on technology, R&D, and innovation gained through 15 years in the sector. It’s not just about the idea or the technology or the pill that changes the world, although it can be. It’s about trying to do things better. It’s about using knowledge as the basis for advancement. The tools are great and numerous, but it’s the people behind the technology, R&D and innovation that creates a sustainable economy for us all. I hope this edition of Business News is a celebration of those people. Sincerely, Derek Sullivan

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Feature dive right in Thinking of starting an ocean technology company?

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emorial University is part of the next big thing, the growth of ocean technology companies in the emerging “Blue Economy”. Memorial’s strategy to foster entrepreneurship in this growing global industry aligns with the Province’s plans to develop a vibrant world-class centre for excellence in ocean technology.

Memorial can help Memorial University boasts multiple advanced research, technical training, education, and consulting establishments. The Marine Institute (MI) has a number of specialized schools that provide outstanding research and testing facilities, including the world’s largest flume tank for demonstrating and testing fishing gear and marine structures. MI also has an aquaculture research facility, quarantine and histopathology laboratories, two food pilot plant facilities, and the most complete marine simulation capabilities in North America. The Department of Physics and Physical Oceanography offers superlative instruction programs, research facilities and equipment. Among them are laboratory facilities for sound scattering studies in turbulent suspensions, multichannel high speed acoustic data acquisition systems, and a PC104-based embedded computer systems for sea bottom in-situ Doppler data recording. The Faculty of Engineering and Applied Science possesses testing facilities, including a 52 metre wave tank, a sizable wind tunnel, a large deep water tank, and a 32-foot open water flume. The Centre for Cold Ocean Resources Engineering (C-CORE) leverages its expertise in radar and vision systems, ice engineering, and geotechnical engineering to provide end-to-end solutions for clients conducting ocean technology research and development in cold ocean climates. C-CORE serves this market by specializing in technology development, adaptation, testing, integration, and advancing 4

scientific knowledge and engineering processes. Memorial offers business incubation services to help emerging companies commercialize their products. The Genesis Centre offers companies, including those in ocean technology, access to a range of business services to help develop high growth technology enterprises. Genesis also partners with the National Research Council’s Ocean Technology Enterprise Centre (OTEC), a technical incubator for ocean technology ventures at the Institute for Ocean Technology. The Genesis Centre accepts OTEC entrepreneurs as clients.

Companies with roots in Memorial Rutter Technologies develops products suited for harsh and hard to service climates, including Voyage Data Recorders (VDR), and the Sigma S6 Oil Spill Response Radar technology. Byron Dawe, President of the Products Division, was VP of Operations at the Canadian Centre for Marine Communications at MI when he began developing an enhanced VDR. His team started Rutter Technologies with the help of the Genesis Centre. Rutter is a member of the St. John’s Board of Trade. Mad Rock Marine Solutions offers professional evacuation technology and services, and their signature product is the RocLocTM, a specialized hook that improves lifeboat safety. Managers Dean Pelley and Jason Dawe hail from MI November 2010

and Faculty of Engineering and Applied Science, through which they developed the RocLocTM. Mad Rock is a St. John’s Board of Trade company. Virtual Marine Technology (VMT) produces simulators for survival and fast response craft, and high speed electronic navigation training. The management team hails from MI and the Faculty of Engineering. As partners, VMT and Memorial received close to $2 million from ACOA’s Atlantic Innovation Fund over the past three years to develop and commercialize their simulators. VMT retains laboratory space at the Engineering building and is a Genesis Centre graduate. The ocean technology industry is multifaceted. The Province has identified seven sectors: aquaculture, defence and security, education and training, fisheries, marine transportation, ocean observation and science, and offshore energy. Determine where you fit, take your idea seriously, connect with Memorial, and be a part of the next big thing. Gord MacGowan is a business analyst at the Genesis Centre, located in Memorial University’s Inco Innovation Centre. He is part of a team that works closely with emerging high growth technology companies to provide business guidance, and connect them with capital and other resources. He can be reached at (709) 864-2681. For information about how to connect with Memorial’s ocean technology strategy, visit blueinitiative.ca. Business News


Feature issue for employers Changes to foreign worker regulations ecruiting and retaining qualified employees are perpetual business challenges. In light of massive demographic shifts, employers are now commonly seeking personnel beyond Canada’s borders. Historically, most temporary foreign workers were highly skilled; however, in recent years, labour market shortages have necessitated recruitment of foreign workers to fill lower skilled positions. The employment of less educated workers, who might be more vulnerable to unethical business practices, has led to increasing concern about abuses, both real and perceived, of the immigration system. In the midst of this sea change, the federal government has enacted regulatory changes which will significantly impact employers who hire foreign workers. In ordinary circumstances, foreign workers are permitted to enter Canada based (in part) on their employer’s representations on the work hours, compensation and benefits associated with the position. The new regulations will punish employers who fail to honour these representations. Employers must provide foreign workers with employment terms that are substantially the same as those represented in the immigration application. Compliance with this requirement will be assessed over the preceding two year period. Violators will be identified on an official published “blacklist”, and will be restricted for two years from even applying for a Labour Market Opinion (a necessary first step in hiring a foreign worker). Furthermore, foreign workers will be prohibited from entering into any employment agreement, or extending an existing agreement with an employer whose name appears on the list. Employers on the list will therefore be forced to use domestic sources to fill their human resource needs, however impractical or unrealistic this may be. It remains to be seen just how far enforcement will reach. For example, what degree of change in the employment relation-

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ship will qualify as a violation of these new regulations? Workers who enter the country on a work permit often see minor changes in salary, benefits or job classification. In those cases, it will be a question of degree as to whether an employer has substantially changed the terms of employment, or simply allowed the employment

Blair Pritchett, Partner, McInnes Cooper relationship to evolve in the normal course. It may take some time before the exact parameters of these restrictions are clear. Another critical regulatory change is the creation of a four year cap on the time that a foreign worker can be employed in Canada. Once this threshold is reached, an individual must leave Canada for four years before seeking re-entry as a temporary foreign worker. This poses obvious retention problems for workers who have a good track record with their

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employer. Furthermore, it may complicate legitimate efforts to transition a valued employee from a temporary foreign worker to permanent resident status. The pending regulations will profoundly impact Canadian businesses. Employers must be cognizant of the four year limit faced by foreign workers. Furthermore, the new regulations will prohibit some employers from even recruiting foreign workers if violations are unearthed. In this new regulatory environment, full compliance has become a business necessity. Blair Pritchett is a Partner in McInnes Cooper’s St. John’s office, practicing in the areas of insurance, litigation and immigration. He routinely represents individuals and corporations with Canadian Immigration issues. These matters involve temporary work permits, study permits, permanent residency, citizenship, and US/Canada cross border movement. Blair is a member of the Canadian Bar Association, the Law Society of Newfoundland and Labrador, the Canadian Defence Lawyers and the American Association of Immigration Lawyers. He is the founder and Chair of the CBA-NL Citizenship & Immigration Section, and a former Chair of the CBA-NS Civil Litigation Section.

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Gardiner Centre Connects management innovation Management vital to successful innovation

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echnology. Research. Innovation. The theme of this issue focuses on three key factors that drive economic and social development. Frequently, these words are combined in ways that reflect prevailing wisdom, such as “research on new technologies that sustain innovation.” While a vital part of the overall picture, focusing exclusively on science and engineering research leading to technological innovation overlooks an equally important contributor to economic development and success – research and innovation in management practice. Too often, failures in business are not (entirely) technological, but occur at least in part as a consequence of inappropriate or inadequate management practices. For example, although we might commonly think of the recent Gulf oil spill as having been a result of technology failure, an internal BP investigation of the accident concluded that decision-making processes by individuals and teams contributed significantly to the spill and its consequences. Similarly, there are many examples of both success and failure in the introduction of technological innovations in the marketplace, where the success or failure of the innovation is driven as much by marketing prowess as by the technology itself. Research on management plays a vital role in driving practices that contribute to business success. Last year, a National Forum on Management was held in Montreal to take stock of management research in Canada and assess its contribution to Canada’s competitiveness (http://expertise.hec.ca/forum2009/). The forum showcased state-of-the-art research in Canadian business schools and its contribution to the practice of management and to Canada’s progress. Our province is fortunate in that the Faculty of Business Administration (FBA) at Memorial University leads Atlantic Canada in high-quality research that contributes to management innovation. In several areas of management, our research 6

Dr. Jeffrey Parsons, Faculty of Business Administration places us in a group of elite universities in Canada in generating knowledge leading to more effective management practices. Research strengths in the FBA are diverse; some of this research has been profiled in previous Gardiner Centre Connects articles. There is significant strength in the areas of supply chain management, where researchers are working on problems such as: coordinating partners in decentralized supply chains by developing appropriate contracting mechanisms; managing risks associated with the transportation of hazardous materials, such as the marine transportation of crude oil; and optimally allocating tasks to resources in production processes. The FBA also has a strong core of research on information management. Some researchers are examining how to combine and share information from diverse, independent sources to support operational management and effective decision making. Others are studying the design and adoption of technologies to support businesses and customers in e-commerce and m-commerce environments. There is also research on techniques used to support communication between clients and developers during the analysis of information systems requirements. In accounting, the FBA is a centre of groundbreaking research on the impacts of auditing practices on various measures of firm performance. November 2010

Researchers in organizational behaviour and human resources management are examining a variety of issues including leadership, workplace aggression and violence, performance appraisal, the changing nature of work (including youth, part-time and post-retirement employment), and the effectiveness of workplace training. These examples highlight some of the areas of research strength in the FBA. There are also growing research strengths in areas such as entrepreneurship and business strategy. We encourage you to broaden your perspective on “technology, research, and innovation.” Keep in mind the management context and the fact that management research contributes knowledge, leading to the successful deployment of technologies, and introduces innovative practices that contribute to our competitiveness. For more information on any of these areas of expertise or to connect with management researchers at Memorial, please contact the Associate Dean (Research), Dr. Jeffrey Parsons (jeffreyp@mun.ca). Dr. Jeffrey Parsons is Professor of Information Systems and Associate Dean (Research) in the Faculty of Business Administration at Memorial University of Newfoundland. He holds a PhD in Information Systems from the University of British Columbia. His research has been published or will appear in journals such as Nature, Management Science, MIS Quarterly, Information Systems Research, Journal of Management Information Systems, Communications of the ACM, ACM Transactions on Database Systems, and IEEE Transactions on Software Engineering. As Associate Dean (Research), Dr. Parsons was responsible for the development and implementation of a PhD program in Management at Memorial University, and for initiatives to improve the communication of research results to the broader community.

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Feature remembering a.g. ayre Our first general manager

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t is with deep sadness that the Board of Trade marks the passing of Anthony Green Ayre (1916-2010). Mr. Ayer was an energetic and enthusiastic force in the growth and evolution of the St. John’s and Newfoundland and Labrador - business communities, and the very first General Manager of the St. John’s Board of Trade. During a career that spanned more than half a century of the most dynamic years in our province’s history, he worked in a wide variety of sectors, from agriculture to communications. In 1970, after 11 years as executive manager of the Newfoundland Board of Trade, he joined the newlyformed St John’s Board of Trade, serving as General Manager for almost three years before transitioning to become a Board of Trade member through his public relations firm, Anthony G Ayre and Associates. Long-term Board of Trade member and Immediate Past Chair of the Board, Bruce Templeton, said of him: “Tony was a wonderful man and was very experienced, very humorous and very committed to small business.” Founding Chairman Robert Innes remembers: “Tony was the backbone of the Newfoundland Board of Trade, as well as the St. John’s Board of Trade in its early years. He had a gift for team-building and communication, and a comprehensive knowledge of industries and business issues. Yes, Tony Ayre was well-respected by all who knew him.”

A man of “land and sea” A graduate of Prince of Wales Collegiate and McGill University, A. G. Ayre’s first job was at a farm near St John’s, but in

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Business & Community Service In his distinguished career, A. G. Ayre occupied the following positions and offices: Canadian Federation of Independent Businesses (Director) John Howard Society (Director) Labour Relations Board (Member) St John’s Shipping Association (Secretary) Newfoundland Real Estate Board (Executive Secretary) Public Libraries Board (Chairman) A.G. Ayre, circa 1970 1941 he joined the Royal Canadian Navy and served during the Second World War in both the Atlantic and the Pacific. A thread of both land and sea ran through much of his long career: after the war, Ayre joined the Naval Reserve, ultimately rising to the rank of Lieutenant Commander, and was instrumental in establishing local branches of both the Sea Cadets and the Navy League of Canada – a legacy that survives and thrives today. He also periodically returned to farming, introducing a number of at-the-time innovative local products (such as cottage cheese) to the Newfoundland market and eventually to overseas markets.

Strong foundations and an eye on the horizon Mr. Ayre (Tony to his friends) believed in building a strong business base at home and looking outward for opportunity. An early advocate of Newfoundland and Labrador’s export potential, he tirelessly promoted a broader, more global view among the province’s business community. He fostered cooperation among local businesses to access international markets and to compete in a global marketplace that he understood would inevitably include Newfoundland and Labrador and its capital city. In his role as Honorary Consul to Belgium and the Netherlands, he provided market intelligence to Newfoundland & Labrador businesses and organized many November 2010

Distinctions Officer, Order of the British Empire (OBE), 1977, conveyed by the British crown. Chevalier, De L’Ordre de Leopold (1982), conveyed by the Belgian government. Order of Oranj-Nassau (1984), conveyed by the government of the Netherlands

Trade Missions to markets in Europe. A founding force in not only the St. John’s Board of Trade but also the St. John’s Real Estate Board and other industry and trade associations, he believed that: “While they may be in competition, companies involved in the same business actually have common interests which can be promoted for the benefit of all.” Ayre’s energy and enthusiasm was boundless, and his work ethic never waned. Although he retired from his official corporate and consular positions in the mid-1980s, he remained active and involved in both business and the Naval Reserve. Throughout his life, he stood ready and willing, in his own words, to “take on any job, anywhere my background might enable me to make a contribution.” Business News


Feature Social Means business Solutions for larger organizations often get portrayed as the top solutions around web and enterprise

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owever, you don’t need to be an enterprise-sized organization to feel the information crunch of our data rich and sensitive world today. Small and medium companies can easily benefit from many of the same enterprise style solutions used to increase productivity. The concept is fairly simple: small-to-medium sized business and organizations (SMBs) can positively gain from encouraging our social tendencies — our natural need to share and connect. By definition, we are all social beings. From Wikipedia: “….humans — and human behavior — are profoundly social. From birth humans orient to one another, and as they grow they develop abilities for interacting with one another ranging from expression and gesture to spoken and written language …”. So, the whole idea is to go with what comes naturally. By encouraging employees, partners and clients to digitally author, share and review information you are connecting people to ideas, information, work experience and advice. For example, consider a hypothetical situation: Ben, a consultant with a 20 employee technology company, has a client requiring information on the benefits of project management software. However, this is not Ben’s specific area of expertise, but he does recall an office conversation where a colleague recently attended a conference related to this. Ben uses his company’s corporate intranet – set up to encourage all employees to add professional content of interest – to search for “project management”. Within minutes, he finds his colleague’s blog about the conference, including specific examples, resource papers and valuable references. Luckily, Ben’s colleague added great content from the conference attended. Ben can now go back to his client better informed and ready to discuss next steps. I’ll admit this example leaves out many details, but the key message is there. Because Ben’s colleague was encouraged by their employer to author and share information about a recent conference attended, Ben was able to immediately identify and access a potential subject matter expert and numerous relevant resources easily and quickly. Business News

This type of situation can be applied to any business or organization, you just need to use your imagination and fill in the blanks with topics relevant to you. Many strategies, resources and tools are available to SMBs to help with a 2.0 philosophy. Often these can require little financial investment. Two very mainstream

examples are Microsoft SharePoint Foundation 2010 and Google Apps. These tools, along with a little expertise, can help your company reap the huge benefits of being naturally social. Chris Dillon is the Business Development Manager with Triware Technologies Inc., a leading technology consulting firm specializing in numerous areas of IT management, including collaboration and web based technologies. Chris can be reached at cdillon@triware.ca. For information on Triware Technologies please visit www.triware.ca.

Remembering Keith Healey 2010 director and long-time friend to St. John’s Board of Trade In October, the St. John’s Board of Trade lost a valued volunteer, advisor and friend, Keith Healy. Keith was a committed and highly active member, as well as a very engaged Director of the Board. His contributions and insight on the Transportation Committee were always well considered and forward thinking. He was a regular at luncheons Keith Healey and other events, most recently hosting Board of Trade Mixer. Keith contributed greatly to our city and surrounding region as Chief Executive Officer at Destination St. John’s since 2008. Before that, he served our province for 32 years in a variety of senior positions with the provincial government, notably as comptroller general, as well as assistant deputy minister with key economic departments. A graduate of Memorial University and a Chartered Accountant by profession, Keith was an active and enthusiastic volunteer. Over the years he served on many Boards and bodies, helping to foster vibrant economies and communities throughout the province. Keith was known for his ability to build strong partnerships and to infuse his own energy into everything he was involved in. He will be greatly missed. The St John’s Board of Trade joins Keith’s family and many friends in sorrow at his passing.

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Feature commercializing technologies Rutter “refines” oil spill response management

in creating the integrated system, but the Canadian and Norwegian companies are also working together to market the product to the world. To date the technology is being deployed in Italy, Brazil, Norway, and Egypt.

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nvironmental safety in the offshore oil and gas industry has been top of mind of late since the explosion and sinking of the Deepwater Horizon in the Gulf of Mexico in April 2010. The oil and gas industry has spent years looking for technology that will not only facilitate clean-up of offshore oil spills, but will also detect the location of slicks and anticipate their dispersion rate and path. For Rutter Technologies, a division of St. John’s based Rutter Inc., that realization became a reality in 2003 when the company acquired the Sigma S6 radar processing technology. At that time, the Sigma S6 was being applied for several functions, including as an ice hazard detection system for detecting icebergs and ice formations. Rutter also focused the research and development on enhanced maritime safety and security applications. For Rutter, years of R&D work culminated in the great leap of faith which has resulted in an integrated technology product for oil spill detection and management. In 2008 Rutter was invited by the Norwegian Clean Seas Association (NOFO) to participate in an exclusive offshore trial, testing their Sigma S6 technology against similar systems. Although the Sigma S6 had been primarily designed for ice and small target detection, there was increasing interest in its ability to detect oil slicks offshore. The Norwegian Coast Guard, who initially purchased the Sigma S6 surveillance systems for ice navigation, discovered during their operations in 2007-08 that it could also detect a small oil slick caused by a sub-sea oil seepage. As Norway is one of just a few countries that actively performs live oil slick spill trials, and has a very strict regime for environmental stewardship, this meant the Sigma S6 would be evaluated by a globally demanding and critical oversight programme. Rutter participated in four oil spill trials in the Norwegian North Sea. Two of them (April and September ’08) were vessel– based under the management of NOFO, 10

while a third trial (December ’08) was sponsored by Statoil and performed from the Troll C GBS platform. The Sigma S6 could detect oil both quickly and accurately from either platform. However, Rutter was still developing key tools which would make the technology compliant with NOFO certification and eventually bring the system to commercial markets. In June 2010, Rutter partnered with a Norwegianbased company, Aptomar AS, to integrate the Sigma S6 radar system with Aptomar’s Infrared Camera and GIS/Data Fusion System to provide an even more robust and capable product. During the three days of the most recent NOFO trial, the combined system succeeded in automatic oil spill detection, area, thickness and volume estimations, in combination with oil spill drift prediction, detection of boom leakage and disposition of the oil spill skimmer during low light conditions. As a tool, the resulting Integrated Oil Spill Response and Management System excelled at being able to identify and track slicks from a moving vessel to a stationary platform, as well as an onshore base. In August 2010, Rutter’s Sigma S6 technology gained international recongnition through receiving NOFO certification. The culmination of several years of R&D was simply based on a belief by Rutter that the Sigma S6 would exceed all expectations. The technology outperformed every competitor in the trials, proving its reliability in 2008, 2009, and in 2010. To date, Rutter is the only company in North America to be invited to participate in the trials in the North Sea, and the Sigma S6 is one of only two systems in the world to be given the green flag, indicating it meets the stringent requirements of vessels operating under jurisdiction of the Norwegian Clean Seas Association. Rutter and Aptomar AS have not only combined technology November 2010

Byron Dawe is President, Business Development & Innovation with Rutter Technologies, bdawe@ruttertech.com Rutter Technologies is a global enterprise with a mission to deliver reliable products and services that improve transportation safety, security and efficiency. For more information go to www.rutter.ca

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Feature SR&ED Scientific Research & Experimental Development

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he SR&ED program is the largest single source of support for industrial research and development by the Canadian Government and is facilitated through the Canada Revenue Agency (“CRA”). The Canadian Government states: “By investing in research and development, we are creating a stronger economy, future job opportunities, and a better quality of life for all Canadians. The program represents approximately 4 billion dollars distributed annually to over 18,000 Canadian businesses”. Canada offers some of the world’s richest, most broadly applicable SR&ED tax incentives — worth up to 82% of the development costs for new or improved products and/or processes. All technologybased companies developing new or improved technology have a basis for a SR&ED claim, as do all manufacturingbased companies developing or improving products or processes. In many cases, they may be eligible for much more than they imagined. These are just two of the multiple industries that can avail of these incentives.

Improvements to the SR&ED program and its management There have been several improvements to the SR&ED program over the last number of years to both enhance the program as well as assist claimants and tax professionals with their filings. During October 2008, an announcement was made by the CRA to introduce new filing requirements and prescribed forms which are required to be used for taxation years ending after December 31, 2008. This is designed to assist claimants with more user-friendly forms and the ability to electronically file their claims. Originally, a temporary measure was implemented that technical project descriptions were required to be filed using the new forms but only the top 20 project descriptions (based on revenue) would be mandatory. While SR&ED claimants were not required Business News

to complete the technical descriptions for each project claimed, they should have been prepared to provide backup for all projects to the CRA upon their request. To date, this temporary measure has been extended until further notice. Subsequent to the announcement of the new forms, on November 17, 2008, the CRA released the “SR&ED Eligibility Self-Assessment Tool” to assist smaller businesses in applying for the SR&ED credit. This is a web-based self-assessment tool that can help claimants identify if their projects will qualify under the program. On January 13, 2010, the CRA announced that further improvements would be made

decisions – an issue which has been raised numerous times by claimants and tax practitioners. Consequently, the CRA “will soon be announcing further enhancements to the SR&ED program”. The CRA hopes that these changes will demonstrate their commitment to a collaborative approach with taxpayers and their advisors in continuously improving this important program. Rochelle Abbott, Tax Manager - Deloitte

We see the detail in the big picture to the SR&ED tax incentive program. These changes came out of consultations conducted by the CRA and the Department of Finance in the fall of 2007 on how to make the SR&ED program more effective for Canadian businesses. The modifications to be introduced are designed to improve the SR&ED claim process by, among other things, making it more transparent. First, the new manual for CRA officials, which came into force on April 1, 2010, includes two new directives:

At Deloitte, we’ve combined the disciplines of audit, tax, consulting and financial advisory to provide the kind of 360–degree thinking that lets us approach challenges more broadly and deeply. Together, we can make sense of your complex issues. To learn more about our services, visit www.deloitte.ca or contact Greg London 709–758–5210 glondon@deloitte.ca

• CRA officials will spend more time explaining the SR&ED program requirements, process and decisions to claimants and their representatives. • CRA officials will advise claimants or their representatives whenever they notice an expense that could have been claimed as a SR&ED expense was not claimed as such on the SR&ED form. In addition, to assist claimants, the CRA will post quarterly reports on its website outlining the time frame to review SR&ED claims from start to finish. Finally, the CRA has announced that it will continue to work and propose new solutions on the issue of consistency in its November 2010

© Deloitte & Touche LLP and affiliated entities.

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Lead Today FOR THE BEST TOMORROW

Photo by Kevin Kroeker – www.ontherockphotography.com

Experience an event that unites business leaders. Build your knowledge and your network at two distinct business events – the annual Outlook Conference and Trade Show. Information and opportunities you need to hear about! Book your tickets today. Contact Wanda Palmer at 726-2961 ext.9 or email events@bot.nf.ca. DESIGNED & PRODUCED


Outlook Conference

Thursday, January 20, 2011 Delta St. John’s Hotel and Conference Center 8:00am – 4:00pm Outlook will feature presentations from leading experts on business trends, opportunities and challenges for your organization in 2011 and beyond. The conference gives you the information you need to lead for the best tomorrow. Some of our Keynote Speakers Include: • Dr. Warren Jestin - Senior Vice-President and Chief Economist, Scotiabank • Don Mills - President & CEO, Corporate Research Associates Inc. • Honourable Tom Marshall - Minister of Finance, Government of Newfoundland and Labrador Leadership Panel: • Vickie Kaminski - President & CEO, Eastern Health • Earl Ludlow - President & CEO, Newfoundland Power • Emad Rizkalla - President & CEO, Bluedrop Performance Learning Visit us online at www.bot.nf.ca for updates on our exciting speakers featured at this year’s Outlook Conference. Tickets are $225 (non-member rate) and $175 (with member discount) for this full day event. To reserve your seat, contact Wanda Palmer at 726-2961, ext.9 or events@bot.nf.ca.

Trade Show

Thursday, January 20, 2011 Main Ballroom and Crush Lobby 10:00am – 5:00pm The Trade Show is a great opportunity to showcase your products and services to decision makers in the St. John’s business community. Booth space runs out fast, so make sure you book now! Register for the early bird rate before November 30, 2010. Prices vary by size and location. Contact Margie Davis at 726-2961, ext.2 or mdavis@bot.nf.ca to book today. This is a one day event you don’t want to miss. Book your tickets today! SILVER SPONSORS


Keeping Current around the board Wine Dine & Align A delicious time was had by all at Wine, Dine & Align – great networking and great food and drink, generously supplied by the following vendors:

Atlantic Spirits & Wines Ltd. Bell Spirits & Wines Bennett Restaurants Ltd. - McDonald’s The Beverage Baron Browning Harvey Ltd. India Gate Restaurant Jumping Bean Coffee Inc. Newfoundland Chocolate Company PJ Billington’s The Martini Bar YellowBelly Brewery The doorprize, a 2 night stay in the extraordinary 4.5 star Lakeside Lodge, Humber Valley Resort, was claimed by member Andrea Quigley of the Autism Society.

Everyone loves a wine tasting

NTV weather hit from the event 14

Newfoundland Chocolate Company delights with sweet treats

Attendees line up to sample delectable dishes from India Gate

Board members enjoy the show November 2010

Business News


Keeping Current around the board Wine Dine & Align

Kirk Newhook of Wreckhouse Jazz and Blues entertains attendees An ice sculpture by Steve Watson provided visual interest

A crowd gathered around the PJ Billingtons table

Business News

Networking...always an important feature of Board of Trade events November 2010

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Keeping Current around the board Mixer hosted by Destination St. John’s

21 Inc. nominees mix with Board of Trade members

Happy members mixing and enjoying hospitality

Are you a colourful personality... ...looking to work with equally colourful characters? We’re producing work that works for a growing number of successful clients. If you’re creative, businesslike, eclectic and want to join the Colour-NL team, send your resume to Ian Chaytor at ian@colour.ca or drop in to meet us.

Photo courtesy of Paul Daly

Suite 200 - Delgado Building 169 Water Street St. John’s, NL A1C 1B1 Advertising

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Design

Branding

Marketing

Public Relations

Event Management

November 2010

Web Design

Video Production

Social Media

Business News


Keeping Current around the board IOC Luncheon

IOC President & CEO Zoe Yujnovich addresses Board of Trade Luncheon

Our featured luncheon speaker drew a large and interested crowd.

Business News

November 2010

Members chat with luncheon speaker

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Keeping Current around the board Roll up your sleeves and move the furniture

MYX MEETING TIPS

I

recently worked with a client to give an event a makeover. For years, the group’s annual gathering had brought together the same stakeholders to share and discuss important but not overly scintillating industry news and updates. My client recognized the format was growing stale, and possibly they were missing an opportunity to truly connect people on key issues. We got to work. We revamped the agenda, solicited new speakers, set new presentation rules (no more lengthy, text-heavy Powerpoint decks), introduced a new dialogue session, and brought in the help of a diverse team of volunteers. The event went smoothly and as the day drew to a close, we ran a round robin feedback session to collect participants’ views about the new agenda, format, speakers, etc. You could have knocked us over with a feather as one comment kept coming up. Of all the changes we had made, the new table configuration (rounds instead of boardroom) got the most notice! Referring to the old format of one massive boardroom table in the middle of the room, with 40 to 50 people crammed around it, one participant said, “We felt like outsiders. These smaller

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round tables today helped us get to know each other and feel like we were really part of the conversation.” Wow. Really? The new table set-up was the best thing? Yet again, the smallest details prove to be the most valued. Of all the changes the organizing team had made, setting the room up a little differently had the biggest impact. It enabled people to truly connect on the key issues, and this had been our objective from the start. By sitting at smaller tables, participants could look each other in the eye, share a laugh, and for that brief time, form a bit of team spirit at those tables. These things are difficult to do while sitting in a formal boardroom.

November 2010

At your next meeting, have a good look at the layout of your meeting space. Can you re-arrange the tables to create better conversations? Can you get rid of the tables altogether? Removing them will cause people to feel a little more exposed and perhaps a little more vulnerable. This can be a good strategy if you need to encourage an open, honest and possibly emotional conversation. (Yes, emotion is being re-accepted in the workplace…for more on this, read Fierce Leadership by Susan Scott.) Or maybe the conversation would work best in someone’s living room. Myx clients often choose to meet in our “Comfort Cove” room because they can settle into cozy couches, put their feet up on the coffee table, and relax into a deep conversation. In any case, the venue and the way the room is laid out matters a lot. Experiment with various room configurations at your upcoming team meetings and watch how different seating arrangements can support or inhibit your workplace conversations. These tips are brought to you by Gina Pecore of Myx Meeting Centre, the province’s first and only centre designed specifically to host meetings, workshops and boutique conferences. Have a question about your next meeting? Email gina@myxmeetings.co

Business News


Keeping Current upcoming events Luncheon with Peter Byrne and Frank Coleman Join us as Frank Coleman introduces business partner Peter Byrne, founder of Andersons Liquor Inc. and the CEO of Rocky Mountain Liquor Inc. Where: Capital Hotel, Kenmount Road When: Wednesday, November 10 Time: 12:30 pm Networking 1 pm Luncheon Cost: $79 non-members $39.50 member discount

Meet Your Match This is the business networking event you just can't miss! Meet new people and make new business contacts. Come out for a relaxing afternoon of networking, food and fun! Where: The Majestic When: Thursday, November 18 Time: 5-7 pm Cost: Included as a benefit of membership

Business Mixer It’s new, it’s snazzy, it’s contemporary! Come join us at the newly renovated McDonalds Restaurant while you network with fellow Board of Trade members. Topsail Road location Hosted by: Bennett Restaurants Where: McDonalds Restaurant, Topsail Road When: Wednesday, December 1 Time: 4-6 pm Cost: Included as a benefit of membership

Register for events online www.bot.nf.ca or call 726 2961

Selling to the Public Sector Reverse Trade Show The range of products and services required by the provincial government, the federal government, and other public sector entities is vast. If you are interested in selling to the public sector, you may have many questions. The Department of Innovation, Trade and Rural Development, in cooperation with the St. John’s Board of Trade, and the Newfoundland and Labrador Organization of Women Entrepreneurs, will be hosting the Selling to the Public Sector - Reverse Trade Show to help answer your questions. Where: Holiday Inn St. John’s When: Monday, November 15, 1-4:30 pm Cost: There is no fee for this event, but pre-registration for sessions is recommended For more information contact one of the following people: Dale Williams at williamsdh@gov.nl.ca, 729-7003 Mike Follett at mikefollett@gov.nl.ca, 729-4578

Business News

November 2010

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Keeping Current policy matters In-depth: municipal finances

T

he Board of Trade constantly advocates to the City of St John’s to ensure that members’ needs are represented in the City’s decision-making process. A key component of that advocacy relates to ensuring that City finances help support a competitive business climate. In this year’s Municipal Budget process, as in other years, the Board is advocating strongly that the City control spending and continue to hold the line on tax rates. The analysis below will indicate why.

However, business occupancies dropped by 2% from 2000-2009 while the City’s population is approximately equal to 1996 levels. Fewer businesses are sharing the tax burden while residents essentially have essentially the same pool to spread the taxation effort over. And while mil rates (i.e. property tax rates) have remained steady over the past number of years, assessments (i.e. property

valuations) have generally increased. This means more revenue for the City without having to raise the mil rate. The Board of Trade will continue to advocate that the City control its spending reduce the tax burden for all St John’s taxpayers, both business and residential. This will save money for Board of Trade members as well as the residents that are customers and patrons of our businesses.

Atlantic Canada Comparison

Continually increasing spending Over the past ten years, the City’s budget increased approximately 94% (an average of 9.41% per year). Today, St. John’s is spending almost double what it spent a decade ago. Let’s compare that growth to other cities in Atlantic Canada. Among major Atlantic Canadian cities, St. John’s was near the bottom in population growth and was last in inflation, but had the highest budget growth rate. If we compare St. John’s against other Canadian municipalities with similar population bases (approximately 100,000 within the city boundaries), the discrepancy in budget growth rate is even more pronounced. For example, Sherbrooke’s budget grew 2% less annually than St. John’s even though Sherbrooke’s population grew twice as much and its inflation rate was essentially the same.

CROSS CANADA COMPARISON

Continually increasing taxation In a year-over-year comparison, we see that increases in taxes collected are regular. In 2000, the City of St. John’s collected a total of $27,885,640 in tax from businesses, In 2010, the total will have reached $50,900,000. The figures below show that the total tax burden is continually increasing. Even without a tax rate increase, ratepayers have been contributing larger and larger revenues to the City, which the City has absorbed in Budget expenditures. The burden has been shared roughly equally by residents and businesses.

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ST. JOHN’S TAXES

November 2010

Business News


Membership member profiles Featured sponsor of the month T. 709 489 8729 F. 709 489 2247 C. 709 486 5254 sales@essentialcoding.com

Essential Coding Inc is a small marketing company with expertise in small business development, online marketing, strategic client development, branding, website design, and development and project delivery. With offices in both Grand FallsWindsor and St. John’s, Essential Coding serves clients throughout the Atlantic Provinces. Its quality and commitment have been recognized through awards such as Venture of the Year 2007, Excellence in Technology 2007-8, Small Business of the Year 2008, Excellence in Youth Leadership 2008, and the Regional Ambassador Award. Recently, Essential’s CEO Scott Oldford was awarded the Top 20 Under 20 Award which recognizes leadership and innovation.

P.O.Box 5, Grand Falls Windsor, NL Canada A2A 2J3 www.essentialcoding.com

Call Lisa at 738-2808 www.uweightloss.com

726-2961 | info@bot.nf.ca

Referral Rewards Program

Global Knowledge is the worldwide leader in IT and business skills training. We deliver via training centers, private facilities, and the Internet, enabling our customers to choose when, where, and how they want to receive training programs and learning services. Our core training is focused on Cisco, Microsoft, VMware, Red Hat, business process improvement, and leadership development. Our IT courses include networking, programming, operating systems, security, and telephony. Our Working Together in Innovation business skills courses feature project management, ITIL, people management, SwiftRadius focuses on building long lasting relationships with key clients; relationships built on delivery, quality, integrity and value. and business analysis. Our more than 1,200 courses span foundational and We are fortunate to work with some of the largest and most complex information ONLINE MARKETING.ECOMMERCE.WEBSITE DEVELOPMENT specialized training and certifications. DEVELOPMENT.GRAPHIC technology projects DESIGN.BRANDING in Atlantic Canada and beyond. Contact Glenn Grouchy at (709) 738-6374 or Glenn.Grouchy@GlobalKnowledge.com or visit our website at wwwglobalknowledge.ca

Business News

84-86 Elizabeth Ave, Suite 102 St. John’s, NL A1A 1W7 709.738.2310 paul.dube@swiftradius.com www.swiftradius.com

SwiftRadius encourages an Innovation focus throughout all channels of the organization, and has developed a proprietary, stage gated methodology for innovation. It is part of our mandate to strengthen the innovation capacity of SwiftRadius and its clients by working and investing in “Meaningful Innovation” together.

November 2010

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Membership member profiles

   

CableTec Business Telecommunications delivers rapid service turnaround for our customers. When your telephone system is down, you can’t afford to wait days. We respond that day through our service centres locally in St. John’s and Corner Brook and through centres in Dartmouth, Sydney and Fredericton. We provide leading edge business telephone systems, wireless telephones, call conferencing, call detail recording, paging systems, and all peripheral telecommunications products. We are certified on all the products we sell and service, including Avaya, Nortel (recently purchased by Avaya), Lucent Alcatel, Panasonic, and Polycom Spectralink. CableTec is also a certified voice and data cable installer.

“Market trends are changing. How should we respond?” You can’t afford a leap of faith when it comes to your property investments. When the stakes are this high, you need the gold standard in advice. AIC professionals are Canada’s leading authorities in real property valuation. We can help you make smarter choices with in-depth analysis, market insights and practical solutions at every stage of the property lifecycle. Get the real property experts working for you; consult the professionals at AIC.

The Hungry Heart Café has a mission to serve scrumptious food, beautifully presented in a delightful space on historic Rawlins Cross. Its popularity led to the creation of Hungry Heart Catering providing the same delicious fare to a growing and satisfied clientele for business lunches, receptions and athome dinners. The Cafe is also a training program for adults seeking employment in the food service industry. Since 2008, it has enabled many individuals to begin their professional service careers. The Hungry Heart Cafe is a social enterprise development of Stella Burry Community Services which has provided counselling, affordable housing and employment preparation for some of our city’s most disadvantaged citizens for over 60 years.

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Learn more at newfoundland.aicanada.ca. Appraisal Institute of Canada Newfoundland and Labrador

REAL VALUE EXPERTS

Advisory Services | Consultation | Due Diligence | Feasibility Studies | Valuation

November 2010

Business News


Membership new members Elco Systems

Athena Health Centre Inc.

Eugene Oakley, Account Executive 58 Mosher Drive Dartmouth, NS B3B 1E6 P: 902-468-0030 F: 902-468-0040 eugene.oakley@elcosystems.com

Rolanda Ryan, Owner / President 202 LeMarchant Road St. John’s, NL P: 709-754-3572 F: 709-754-6626 athenahealthcentre@bellaliant.com

Browne Fitzgerald Morgan & Avis

Miss Teen Achievement Newfoundland & Labrador Inc. Kathy Dicks-Peyton, Director P.O. Box 39061 St. John’s, NL A1E 5Y7 P: 709-895-8588 contact@missteenachievement.com

Stephen Fitzgerald, Manager P.O. Box 23135, 8-10 Rowan Street St. John’s, NL A1B 4J9 P: 709-724-3800 F: 709-754-3800 sfitzgerald@bfma-law.com

Leonard Stoyles Home Renovations Leonard Stoyles, Owner 10 Cathedral Street St. John’s, NL A1C 3Y5 P: 709-726-1979 Cell: 689-0853 F: 709-726-2602 lstoyles54@hotmail.com

Business News

November 2010

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Membership new members CoachPhyllis.Com.Inc Phyllis Reardon, President 9 Long Pond Road Whiteway, NL A0B 3L0 P: 709-588-4614 phyllis@coachphyllis.com

IPECC Project Management Inc.

Pharmacists’ Association of Newfoundland & Labrador

Odgers Berndtson

Jim Organ, Manager, Professional Services 85 Thorburn Road Wedgewood Insurance Bldg, Suite 203 St. John’s, NL A1B 3M2 P: 709-753-3771 F: 709-753-8881 jorgan@panl.net

Stephen McGuire, Project Manager – Newfoundland and Labrador 19 Emerson Street St. John’s, NL A1B 1X5 P: 709-725-2926 F: 902-454-2863 smcguire@ipecc.ca

Maureen Millier, Partner 5525 Artillery Place Halifax, NS B3J 1J2 P: 902-491-7788 Maureen.millier@odgersberndtson.ca

Thinking outside the grid

Eden Construction & Development Inc. – A Division of PERAC Group Doug Vicars, President 141 Bay Bulls Road St. John’s, NL A1G 1B1 P: 709-368-7375 F: 709-368-6005 dvicars@perac.ca

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November 2010

Business News


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