Business in Vancouver 2011-08-16

RetuRn undeliveRable Canadian addResses to CiRCulation depaRtment: 102 east 4th avenue, vanCouveR, b.C. v5t 1g2.

Business in Vancouver Issue 1138

PM40069240 R88767 671114 78312 34

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native bands aim for asian opportunities 6

the market and mr. Jones: volatility rattles mining juniors 6

how to leverage company tax breaks for retirement funds 8

storm clouds spare property owners from interest hikes 10

market turmoil adding new bumps along b.C. biotech’s road to profitability 12

surrey businesses pushing for light-rail connections 13

nhl star’s off-ice wildlife 18

the province’s changing franchise landscape: upgrades, acquisitions, new arrivals 21, 23

off to court 24-25

native bands need to build better business expertise 28

Canfor Ceo don Kayne using his sales expertise to develop new markets for b.C. lumber 31

INSIde

Biggest food franchises in B.C. 20

Biggest non-food franchises in B.C. 22

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

The fight to get forest products to market

Pattison buys into booze business

Cakewalk: lori Joyce (left) and heather White, founders of Cupcakes, are now featured in Cupcake Girls. the tv series is produced by vancouver’s Force Four entertainment, which could benefit from a new trade agreement between b.C. producers and broadcasters.

See Entertainment, 3

>Province’s largest company acquires Everything Wine and Libations in its first foray into alcohol sales

By Glen Korstrom

Jim Pattison has broken a longtime aversion to investing in alcohol-related businesses by buying the three-loca-

tion Everything Wine chain and two Libations liquor stores from Vancouver businessman Paul Clinton.

The Jim Pattison Group owner’s interest in Everything Wine came after Clinton approached Pattison representa-tives about leasing space next to Save-On-Foods grocery stores in Alberta.

“Alberta is where the company needs to grow,” Clinton told Business in Vancouver August 9. “But you need access to good locations. The [private liquor sales] market is much more penetrated by the private sector than it is in B.C.”

Alcohol sales are increasing faster in Alberta than in B.C. Canada’s largest private liquor retailer, Liquor Stores N.A.

Ltd. (TSX:LIQ), reported August 8 that in the first six months of 2011 its Alberta same-store sales rose 4.4% compared with 1.3% in B.C.

Clinton approached Pattison because his Save-On-Foods grocery chain is one of the rare Alberta grocers that doesn’t own private liquor stores.

“Loblaws has their own liquor stores. Safeway has their own liquor stores. [Central Alberta] Co-op has their own liquor stores,” Clinton said. “Save-On-Foods didn’t own li-quor stores, so their grocery centres or shopping centres were potentially an interesting place to locate Everything Wine stores.”

Clinton is pursuing new business opportunities, but long-time general manager Trent Anderson will stay at Everything Wine. Clinton launched Everything Wine when he bought three small wine stores – and their rare wine-only licences – from the Mark Anthony Group in April 2007.

He then promoted a new warehouse concept for wine sales by opening the largest wine stores in the province, including a 12,000-square-foot location in North Vancouver.

He then marketed his products with full-page newspaper advertising that highlighted promotions such as a 5% discount on a 12-bottle case that includes any mix of wines.

see Licences, 6

Another sweet deal done

August 16–22, 2011 • Issue 1138 BIV.COM $3.00LocaL. BuSineSS. inteLLigence.

next issuecontentsColumnistsBusiness Wealth Watch 8

David Sung Real Estate Roundup 10

Peter MithamHigh-Tech Office 12

Alan ZismanWomen in Business 16

Kristi MillerSustainable Business 19

Nina WinhamPublic Offerings 28

Timothy RenshawPublic Eye 29

Sean Holman

DepartmentsBy the numbers 8

Hot numbers 8Insider trading 9BIV lists 20, 22Trouble 24–25Lawsuit of the week 25People on the move 26–27Letters 28Datebook 30

SectionsFinance 8–9Real estate 10Technology 12Surrey quarterly 13-17Sustainability 18-19Law 24–25Comment 28–29Profile 31

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profile

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

full DiSCloSureLast year the Surrey School Board had to pay nearly $500,000 to the Pacific Carbon Trust when it failed to achieve carbon neutrality. The money went to companies like Encana and Interfor, but critics question whether the carbon offset program will actually reduce greenhouse gases. Business in Vancouver takes a closer look at the business of carbon offsets in the province and its impact on public and private organizations.

Biggest shopping centres and biggest commercial and residential real estate brokerages in B.C.

CN to boost lumber shipments to China

Vancouver adviser supports temporary ban on short selling

Canada-Brazil air agreement could help Vancouver

Market panic hurts high-end liquor sales

B.C. holds balanced budget course, despite turmoil, Bell says

Leaders’ race: NDP’s four-part anti-HST harmony

Canada Line to expand transit service

Choppy investment waters ahead: adviser

Indonesian protestors torch Vancouver miner’s drill rigs

Multiple unit growth drives July housing starts

H&M to open regional centre in Metrotown

B.C. pink salmon wins environmental certification

Indebted British Columbians struggle more than average Canadian

Liberty Wine to move to Commercial Drive

No growth in back-to-school spending: Ernst & Young

Weatherhaven to build sustainable camps in Amazon

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

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

By Jenny Wagler

Vancouver’s beleaguered in-dependent film and television

producers are optimistic that their fortunes could soon change for the better as a new framework for deals with Canadian broadcasters goes into full effect this month.

The framework, kick-started by the Canadian Radio-television and Telecommunications Com-mission (CRTC), gives producers a standard set of rights to their productions when negotiating with broadcasters.

Producers previously had to secure whatever rights they could each time they negotiated with broadcasters.

“I think it’s huge,” said Rob Bromley, owner and partner at Vancouver-based production company Force Four Entertain-ment. “It sets us up for a long time to come.”

The Canada Media Produc-tion Association (CMPA), repre-senting independent producers,

hammered out the terms of trade agreement this spring with private broadcasters Astral Media Inc. (TSX: ACM.A, ACM.B), Corus Entertainment Inc. (TSX: CJR.B), BCE Inc. (TSX: BCE) subsidiary Bell Media, CTV, Rogers Com-munications Inc. (TSX: RCI.B) and Shaw Communications Inc.’s (TSX: SJR.B) television division, Shaw Media.

The deal has been phased in since June 1 and took full effect August 1.

The CMPA is now in talks with the Canadian Broadcasting Corp. for a similar deal. Its dead-line is set for June 2012.

In Vancouver on a recent tour to explain the agreement to in-dependent producers across Can-ada, CMPA president and CEO Norm Bolen told Business in Van-couver that the CMPA has been lobbying for a terms of trade deal for nearly a decade.

A similar deal in the United Kingdom helped revitalize the production sector in that country.

“But we got nowhere because the broadcasters just ragged the puck.”

In the last decade, Bolen said vertical integration of broadcast-ers has reduced market options

for producers, which has left them with less negotiating leverage and worse deals.

He added that the situation has degenerated dramatically for pro-ducers since he headed up pro-gramming for the former Alliance Atlantis Communications Inc. and launched the History Tele-vision channel in 1997.

“[Producers] would give me the show for three years, they would give me a limited number of plays and I would get it for one channel only: History Television.”

Bolen noted that after the li-cence term expired, the producer could sell it to another broadcast-er for an additional few years and then other broadcasters after that.

Vertical integration, he said, eliminated the multiple-window marketplace and the revenue that represented.

“Now, the broadcaster says, ‘I want your program, but I actually want a seven- or eight- or 10- or 12-year licence for the same fee; I want unlimited plays and I want the right to play that on all of my channels – 30, if I want to, until I’m tired of that program – and then I also want the right to sub-license it to a competing company until they exhaust it.’”

Bolen said broadcasters have also increasingly been taking international rights and requiring producers to direct their tax cred-its into financing productions. That left producers with nothing to capitalize their businesses.

They key change came about a year ago, when the CRTC directed broadcasters to negotiate a terms of trade deal with the CMPA or face having one imposed on them.

W i t h n e g o t i a t i o n s wrapped up, Bolen sa id key gains for producers include:

•limited licence terms to allow a multiple-window market to redevelop; •25% of tax credits stay with pro-ducers to fund their businesses; and•international rights stay exclu-sively with producers to allow them to develop further revenue streams abroad.

Bromley and Alexandra Raffe, head of production at Thunderbird Films Inc., said the agreement will help create more sustainable busi-nesses for local producers.

“It enables us to take a little more control of the destiny of our own projects, especially in terms of ancillary and international rights,” Raffe wrote in an email.

“It means we will not have to dig into our margins to subsidize production quite so often.”

Bromley added that the agree-ment will provide planning clarity and predictability for producers – particularly around issues such as rights, which he said can pro-vide a significant revenue source through international sales.

Bromley noted that Force Four’s successful TV show Cup-cake Girls has sold into more than 90 countries, providing “signifi-cant money” for the company to capitalize its business.

“The main thing terms of trade does is it allows us to build a busi-ness,” Bromley said.

Hughes Mousseau, director of corporate communications for Astral Media, said the new deal would “bring heightened clar-ity and rigour to future negotia-tions and partnerships. … [It] will further strengthen the Canadian production sector and ensure that opportunities are fully realized to everyone’s benefit.” •[email protected]

“It enables us to take a

little more control of our

own projects, especially

in terms of ancillary and

international rights”

– Alexandra Raffe, head of production,

Thunderbird Films

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

Briefs

Government review blasts Hydro spending, recommends job cuts, reduced rate increaseA provincial government panel has suggested that BC Hydro cut more than 1,000 jobs to trim its costs and lessen the burden on taxpayers.

Las t week , a rev iew panel appointed by Energy Minister Rich Coleman delivered a host of recom-mendations to help the province’s largest utility limit rate increases.

Hydro agreed to cut $800 mil-lion in spending in an effort to limit rate increases in the next few years.

The panel was formed after Hydro announced plans to increase rates 32% over the next three years.

Hydro has agreed to limit the rate increase to 15.8% over the next three years.

“While there’s a strong focus on being the best and reliability and service, there has not always been a strong focus on cost efficiency,” Cheryl Wenezenki-Yolland , a panel member and acting deputy minister of advanced education, said of the utility.

During a press conference, she described BC Hydro as a very “silo-ed” organization with “a lot of dupli-cation between departments.”

The panel suggested the utility cut its job numbers to 4,800 from 5,868.

BC Hydro CEO Dave Cobb com-mitted to slashing only 350 jobs.

“The number the panel has put forward I think is something that we will look at,” he said.

“It is not necessary to get there to deliver this rate increase.”

The panel also recommended that the utility reduce its overtime payments to employees, postpone office renovation work at its head-quarters and revisit its capital pro-ject planning and spending initia-tives, among other things.

“Hydro will go further than the recommendations to cut costs and manage their finances,” Coleman said.

“This is the first step.” [email protected]

August 16–22, 2011 Business in Vancouver 3NeWs

By Joel McKay

The massive Cielo di San Francisco will steam into a

Chinese port in the coming days laden with as much as 18 million board feet of B.C. lumber.

The ship, which departed a North Vancouver port earlier this summer, is evidence of an unprecedented level of co-oper-ation among B.C.’s largest forest-ry companies.

The mission?To not only get Asian custom-

ers hooked on the quality of B.C.’s trees, but also to make sure the products made from those trees get to market on time and with-in budget.

T hat ’s why West Fraser Timber (TSX:WFT), Canfor (TSX:CFP) and Tolko Industries have joined forces to charter a ship for a year to carry their prod-ucts to market.

Larry Hughes, West Fraser’s vice-president, finance, and CFO, said despite the efficiency of B.C. ports, the rapid increase in lum-ber shipments to Asia, notably China, started to put a strain on container availability last year.

“There had been at times late last year … some challenges with lumber shipments,” said Hughes.

Their products were still get-ting to market, but the forest companies could see that if the volume of exports continued to increase it would only be a matter

of time before ships and contain-ers would be hard to come by.

That’s a big deal in an in-dustry where transportation is the second largest cost of doing business.

In the first six months of 2011, West Fraser and Canfor spent $465 million on freight and other distribution costs.

That includes everything from trucks and railcars to ships and containers.

“These particular participants were looking for a way to assure themselves of delivery of their product to market … this is a strategic move,” explained Rob-ert Fischer, CEO of Loadline Forest Carriers, the company

created to charter the Cielo di San Francisco.

The pinch at the port came on the heels of record levels of lum-ber exports to China, totalling $687 million in 2010.

Exports to the Asian jugger-naut continue to soar, eclipsing the value of lumber sent to the U.S. in May for the first time on record. (See “B.C. lumber firms court more clients in Asia” – issue 1137; August 9-15.)

That’s good news for foresters across the province.

Yet the market shift, follow-ing years of downsizing and mill closures, has also revealed major gaps in the industry’s logistical capacity.

MaryAnne Arcand, execu-tive director of the Central In-terior Logging Association, said Interior producers are battling a “continuous shortage of truck drivers.”

The shortage is a result of the

recent downturn in the industry, which saw many drivers leave for-estry for jobs in Alberta’s oil and gas sector.

“We’re seeing cost increases as a result,” said West Fraser’s Hughes.

On top of that, sawmills re-main at the mercy of two rail companies, which some in the in-dustry have called a “monopoly.”

“I’m hearing from the saw-mills that moving lumber by rail is also a challenge, not enough railcars available,” said Arcand.

She added that Highway 16 has become a bottleneck for for-est products moving west toward Prince Rupert.

Despite the challenges, for-est product shipments from B.C. ports have shot through the roof.

The volume of containers ex-ported via the Prince Rupert Port Authority jumped 82% year-over-year.

“That’s mostly attributed to

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

“We can ship lumber

from our Quesnel mill to

Shanghai for roughly the

equivalent cost of shipping

it to San Antonio, Texas”

Larry Hughes,vice-president, finance, and CFO,

West Fraser Timber

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

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

Po

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Me

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o V

an

co

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er

29% China’s share

of B.C. lumber exportsYear-to-date: May 2011

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Daily business news at www.biv.com August 16–22, 20114 News

full disclosure

forest products,” said Shaun Ste-venson, vice-president of market-ing and business development at the port.

Prince Rupert, which con-verted its breakbulk terminal into a container terminal just a few years ago, said it’s re-thinking its breakbulk options.

“We think there’s likely the need to explore the development of breakbulk capacities in Prince Rupert,” said Stevenson.

The Port Alberni Port Au-thority said it also has seen ship-ments of lumber and logs steadily increase in the last year.

Lumber shipments via Port Metro Vancouver jumped 48% to 2.3 million tonnes in the first six months of 2011 compared with the same period last year.

Foreign breakbulk exports posted a 12% increase in the first six months, signalling a shift away from container shipments as

supply becomes constrained.The Cielo di San Francisco, for

example, is a breakbulk ship.Even though some forestry

companies have had trouble lo-cating containers in the past, both Prince Rupert and Port Metro Vancouver say they have plenty of capacity.

B.C.’s jobs minister Pat Bell, on the other hand, believes the province’s ability to handle the increase in forest-product move-ments is nearing capacity.

“We are potentially coming to a constraining place,” said Bell. “That is very high on our radar screen.”

In addition to chartering a ship, West Fraser is refining logis-tical efficiences elsewhere in the province.

Earlier this year, the forest-ry giant signed a service-level agreement with CN (TSX:CNR), Squamish Terminals, Tembec

(TSX:TMB), Canfor Pulp and Daishowa Marubeni Inter-national to improve supply-chain efficiency for the export of wood pulp from Howe Sound.

Kim Stegeman, manager of marketing and administration at Squamish Terminals, said the agreement means workers are un-loading railcars seven days a week instead of five.

“Increasing the day’s service was a big change,” Stegeman said.

M e a nt i m e , Va n c o u v e r ’s International Forest Products

(TSX:IFP.A) bought full control of Seaboard Shipping Co. earlier this year in an effort to have more control over its shipping options.

But aside from all the effort be-ing put into shipping products to China, no one will say how much it actually costs to get their prod-ucts to the Asian market.

Citing competitive reasons, Loadline’s Fischer wouldn’t di-vulge the cost to ship lumber via the Cielo di San Francisco.

But he did say it allows for “transparent costing” for mem-ber mills.

“They will know exactly what it’s going to cost … whereas if you go through a third party you don’t know that, you’re just getting a number with a profit margin built in,” Fischer said.

Brad Johansen, president and CEO of Welco Lumber, a lum-ber marketing and distribution company in Vancouver, said at times this year there has been a “significant spread” in the cost between offshore and domestic shipments.

West Fraser wouldn’t divulge its freight costs either, but Hughes said it’s competitive with the U.S.

“We can ship lumber from our Quesnel mill to Shanghai for roughly the equivalent cost of shipping it to San Antonio, Texas,” said Hughes.

And as long as B.C. lumber producers can keep ships filled with their products, he doesn’t believe shipping costs will be a problem.

“As long as there is a de-mand there, our v iew is the transportation costs will not be prohibitive.”

The Cielo di San Francisco is due back in Vancouver on Sep-tember 10. •[email protected]

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“We are potentially coming to a constraining place.

That is very high on our radar screen”

– Pat Bell,B.C.’s minister of jobs, tourism and innovation

Lumber numbers

$3.6 billion

The value of B.C. lumber exports in 2010

$687 million

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

Up 48% Lumber exports through Port Metro Vancouver in the first six months of 2011

Up 1,891% Breakbulk lumber exports to China through Port Metro Vancouver in the first six months of 2011

Up 82% Container export volumes through Prince Rupert Port Authority year-over-year to July

2.8 million cubic metres of lumbershipped in the first five months of 2011

29% China’s share

of B.C. lumber exportsYear-to-date: May 2011

$1.6 billion value of B.C. lumber exports Year-to-date: May 2011

August 16–22, 2011 Business in Vancouver 5News

full disclosure

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

By Joel McKay

U.S. credit woes and European debt concerns took Howe

Street investors on a wild ride last week as junior companies shed market value at rates reminiscent of the 2008 financial crisis.

The TSX Venture Exchange, the life force behind Vancouver’s pool of 800 junior mining com-panies, jettisoned 7% of its value after markets opened last Monday following news that the U.S.A.’s credit rating had been downgrad-ed to AA+.

The Venture had lost 18% of its value by market close August 8 compared with a recent high of 2,059 on July 22.

That’s compared with a 14% drop in the value of the big board TSX Composite Index over the same period.

The market volatility wiped out billions of dollars of investor value for large producing companies and junior explorers alike, but one investor believes the juniors will

have a more difficult time claw-ing back to positive territory than their revenue-positive cousins.

“Anyone who has to raise money is facing a significant challenge in the near term, and that encom-passes a lot of, if not all, the juniors that aren’t in production yet,” said

Stefan Ioannou, a mining analyst with Haywood Securities.

The challenge for juniors is that they rely on issuing shares to investors to raise money to fund their operations, which makes them inherently more risky than companies that have a steady source of income from mines al-ready in production.

Michael Jones, a prevalent face in Vancouver’s junior mining scene and co-founder of Platinum Group Metals (TSX:PTM) and MAG Silver (TSX:MAG), believes the volatility will be short-lived.

But he also said it could force early-stage companies to offer bigger discounts on private place-ments needed to continue funding their operations.

“Companies that are forced to try and raise money in this im-mediate market are going to have a very difficult time,” said Jones, whose Platinum Group Metals had, fortunately, closed a $260 million loan agreement with sev-eral banks on August 2.

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

“Obviously investors are get-ting a bit spooked by what’s going on, but the underlying fundamen-tals supporting copper are tre-mendous, and we expect those underlying prices to continue,” said McPhie.

He also believes the drop in stock prices has created a buying

opportunity for investors who missed out on bargain-basement deals in the aftermath of the finan-cial collapse.

Ioannou agreed the sell-off has more to do with market paranoia than any change in commodity fundamentals.

Still, he believes junior com-panies are going to have to work extra hard to get their stories no-ticed in the marketplace in the near term.

“Unless you have hit the ball out of the park with exploration results, you’re not going to get a lot of attention for average-type news,” said Ioannou. “So in the very near term the advice would be making sure you conserve your cash.”

For Jones the lesson is sim-ple: junior companies should’ve raised money when they had the chance.

Said Jones: “The moral of the story is take tea when it’s poured not when you have to have it.” •[email protected]

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

Do

min

ic S

ch

ae

fe

r

“Anyone who has to raise

money is facing a significant

challenge in the near term”

– Stefan Ioannou,analyst,

Haywood Securities

The wine-only licences are key to Everything Wine’s business strategy, because they give the company deep-er wholesale wine discounts than most private liquor stores get from the British Columbia Liquor Distri-bution Branch (BCLDB), which is the province’s mon-opoly liquor supplier.

The BCLDB gives private retailers various discounts off its suggested retail price.

Twelve wine-only stores were granted licences in the mid-1980s, and their owners get discounts totalling more than 30% off the BCLDB’s suggested retail price.

Most of B.C.’s private li-quor stores, including Li-bations, get a 16% discount off BCLDB prices, but, un-like the 12 wine-only stores, are allowed to sell beer and spirits.

Pattison notes on his

website that the “Jim Pat-tison Group does not in-vest in, or desire to own, businesses associated with gambling/gaming or liquor/wine/spirits.”

That dictum likely stems from his Pentecostal up-bringing and personal pref-erence as a teetotaller.

Pattison was unavailable at press time to tell Business in Vancouver why, at 82, he’s finally dipping his toe in the booze business.

Wine retailers contacted by BIV said Pattison’s in-volvement in their industry is unlikely to affect them much. But John Clerides, who owns both a wine-only licence and Marquis Wine Cellars on Davie Street thinks it could prompt the B.C. government to loosen regulations to allow private B.C. beer, wine and spirit stores to sell more groceries.

Currently, those stores can sell:•soda pop, but not milk;•beef jerky, but not bricks of cheese; and•bags of chips, but not bread.

“Jim Pattison I don’t think will put up with the small-mindedness of the current and historical poli-cies of the BCLDB,” Clerides said. “There are going to be some changes down the road.” •[email protected]

Licences: BCLDB discounts

Jim Pattison: teetotalling business-empire builder

Aboriginals ante up with Asian business strategyFirst Nations want to work directly with Chinese investors to develop resources

By Joel McKay

BC’s First Nations are keen to tap into

Chinese investment, creat-ing a new level of competi-tion for Vancouver’s resource companies.

Last week, the BC First Nations Leadership Council announced a China strategy aimed at generating stronger ties between the province’s in-digenous peoples and China’s business community.

The strategy was an-nounced following a trade mission to China, which came in response to a “grow-ing commercial interest” in British Columbia’s natural resources sector.

“First Nations in Brit-ish Columbia are experien-cing unprecedented inquiries from Chinese companies to develop projects on their ter-ritories,” said Union of BC Indian Chiefs Grand Chief Stewart Phillip.

The strategy means First Nations would take a more proactive approach to busi-ness dealings with Chi-nese investors. In the past, Asian investors have formed

partnerships with Vancou-ver resource firms that then establish relationships with First Nations communities near their projects.

That method has resulted in conflict between the busi-ness community and ab-originals, often resulting in

failed agreements and soured relations.

The new strategy calls for annual business mis-sions between First Nations communities and China, and the establishment of a “China desk” to help ab-originals develop business opportunities.

When asked i f First

Nations believe they can get a better deal working directly with Chinese investors than local resource companies, Grand Chief Edward John said, if nothing else, the strat-egy ensures aboriginals are included in the conversation.

“In the past we’ve either been sidelined or ignored, and in this case we’re saying we need to have jobs, we need to have an economy, we need to ensure we benefit from the resources that are extracted in our territory,” said John, polit-ical executive of the First Na-tions Summit. “We shouldn’t be sitting on the sidelines and our people lining up in the welfare lines … anything that gets beyond that is better than what we have now.”

Dave Porter, CEO of the First Nations Energy and Mining Council, said work-ing directly with Chinese in-vestors in the past has turned negative business relation-ships positive.

“We’re on the verge now of signing a deal as a result of the Chinese investors’ influence on their Canadian partners,” said Porter.

T h e s t r a t e g y w a s

“We’re on the verge

of signing a deal as a

result of the Chinese

investors’ influence on

their Canadian partners”– Dave Porter,

CEO,First Nations Energy

& Mining Council

announced at a press confer-ence hosted by the Asia Pacif-ic Foundation of Canada.

“The strategy represents a significant step forward in developing a broader appre-ciation for the rise of Asia and its impact on Canada and First Nations communities,” commented Yuen Pau Woo, president and CEO of the foundation.

Still, the strategy has a long way to go before it could be considered a success.

For example, Phillip said First Nations need to build more capacity in their com-munities so they can properly assess potential business deals with Asian investors.

Stockwell Day, former fed-eral minister of internation-al trade and the Asia-Pacific Gateway, wouldn’t comment on whether First Nations have been left out of previous con-versations between the gov-ernment, industry and Asian investors.

But he did say the strategy is a positive step forward for B.C.’s aboriginal community. (See Public Offerings, page 28.) •[email protected]

from Pattison, 1

Daily business news at www.biv.com August 16–22, 20116 News

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August 16–22, 2011 Business in Vancouver Daily email edition: www.biv.com 7

Business wealth watch

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

Many entrepreneurs don’t rea l i ze t hat

they have far more f lex-ibility to keep more of their hard-earned money in their pockets.

Business owners and in-corporated professionals, including lawyers, account-ants and consultants, may find their greatest tax ad-vantage lies in paying them-selves through dividends, not salary, and investing the money that would normally go into an RRSP into their corporation, where it can be reinvested.

The problem is that many incorporated indi-viduals don’t know about this dividend approach and therefore aren’t employing it. And it could be costing them tens of thousands of dollars every year.

For example, business owners in B.C. making less than $500,000 per year who pay themselves a salary, pay Canada Pension Plan (CPP) premiums and invest in RRSPs are paying more in taxes than necessary and losing retirement savings money than if they were to consider a more entrepre-neurial approach to com-pensation and savings that only an incorporated busi-ness owner can enjoy.

Let me explain. Using the conventional “take a sal-ary” approach, the owner of an incorporated busi-ness takes a salary from the

business (high enough to provide maximum RRSP contribution room, which is typically $122,000), likely splits income with his or her spouse (paying them a justi-fiable salary) and both pay personal income tax.

Using a dividend strat-egy, the owner pays himself and his spouse dividends, rather than salary, taking enough to fund their per-sonal living requirements but leaving the excess – some of which would have gone into RRSPs – in a cor-porate investment account, where it is invested. The corporation is taxed at the small-business rate, and the business owner and spouse income split to pay a lower rate of income tax on the dividends. The combined total tax using this strategy is lower than the personal income tax paid in the first scenario.

Other benefits to using the dividend approach: •it allows greater f lexibil-ity to split income between spouses, since Revenue Can-ada might question some salary divisions between spouses. On the other hand, income splitting using a dividend compensation ap-proach is more conservative, as one doesn’t need to justify the amount of dividends paid to a shareholder; •the business owner avoids paying CPP premiums, es-pecially since entrepreneurs

have to make both employ-ee and employer contri-butions. Small-business owners might find they’re better served by investing that money in their corpor-ation, rather than giving it to the government to man-age or control when they’re able to receive it;

•whereas RRSP contribu-tions must be transferred to an RRIF and withdrawals begin at a set age, investing corporately offers more control over when business owners get – and pay taxes on – their savings; and•saving outside of RRSPs offers flexibility with your choice of investments. For example, you can’t invest in hard-asset real estate prop-erties through your RRSP.

As with most tax strat-egies, however, there are some caveats.

The dividend approach is not a cookie-cutter tax-planning solut ion. If a company’s pre-tax income exceeds $500,000, it might be better to employ a com-bination of dividends and salary strategies because corporations that exceed $500,000 in taxable income pay a higher rate – 26.5% versus 13.5% (based on B.C. rates) – and should consid-er paying themselves salary up to the level where RRSP contribution can be maxi-mized, roughly $122,000.

Another important con-sideration would be cre-ating the right corporate structure and, perhaps, in-cluding a family trust to fa-cilitate income splitting and allow creditor protection of assets.

The dividend approach strategy to compensation is unique to business owners and incorporated profes-sionals. It’s an approach that many entrepreneurs can benefit from and should examine with their finan-cial adviser and tax spe-cialist. When coupled with good planning and smart investing, it can significant-ly accelerate wealth building and help business owners achieve retirement much sooner than they think. •

David Sung is the president of Nicola Wealth Manage-ment, a Vancouver-based fi-nancial planning firm.

Weatherhaven to provide camps in AmazonBurnaby-based Weather-haven, which makes portable shelters, has signed a deal to provide Brazilian oil and gas company HRT Participaceos em Petroleo SA with explora-tion camps in the Amazon.

The shelters will be used for HRT’s oil and gas explora-tion and production program. Thursday, August 11

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

Liberty Wine Merchants general manager Robert Simpson.

If a strong rally does not continue, he said it could be months until he sells another bottle of French champagne.Wednesday, August 10

British Columbia ahead of curve in debt reductionB.C. is ahead of all other Can-adian provinces for achiev-ing personal debt freedom, according to a CIBC poll.

The poll found 37% of British Columbians report being debt-free, versus 28% of Canadians.Monday, August 8

BUSINESS TODAYdaily online edition

Daily business news direct to your inbox! Sign up at www.biv.com/newsletters

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

Business owners might

find their greatest tax

advantage lies in paying

themselves through

dividends, not salary,

and investing the money

that would normally

go into an RRSP into

their corporation

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

48% of Canadians with social networking profiles “like/follow” at least one brand/company.

90% of Canadians aged 50+ who have not yet retired expect a “successful retirement.”

10% of online Canadians seek info or advice from financial institution websites on a weekly basis.

41% of online Canadians communicate with people more online than offline.

70% of Canadians who own or plan to buy one agree smartphone technology will be a major economic driver.

24% of online Canadians who are likely to buy a tablet in next 12 months.

Want more hot numbers? Visit the Ipsos News Centre at www.ipsos-na.com/news-polls.

BY THE NUMBERS Losses are shown in brackets. Graph information by Stockwatch.

Westport Innovations Inc. (TSX:WPT) Figures in U.S. dollars

▲76% ($18.1m) ($0.38)Gas pains: The natural gas engine-maker saw its net loss in the first quarter increase 123%. Westport’s gross margin edged down to 33.9% of total revenue compared with 34.5% for the same period in 2010. Still, the company signed agreements with General Motors and Caterpillar to research and evaluate natural gas technologies. Westport finished the period with $162m in cash and short-term investments.

Revenue: $45m3 months 2011

Net income 3 months 2011

Earnings per share 3 months 2011

OncoGeneX Pharmaceuticals Inc. (NASDAQ:OGXI) Figures in U.S. dollars

▲12% ($6.5m) ($0.67)Trials and tribulations: The cancer therapy developer saw its revenue increase slightly in the second quarter thanks to increased efforts associated with custirsen phase 3 clinical trials. Meantime, revenue for the six months ended June 30 was down to $3.1m compared with $6.4m in 2010. OncoGeneX’s net loss also increased to $6.5m compared with a net income of $0.2m in the same period in 2010.

Revenue: $1.9m6 months 2011



Telus Corp. (TSX:T)

▲6.4% $324m $0.99Wet-wired: The telecom giant saw a 6.4% increase in revenue in the second quarter thanks to nearly 10% growth in wireless revenue and 3% growth in wireline revenue. The company added 94,000 new wireless subscribers in the second quarter and 46,000 new TV customers. Net income was up 7.3% in the second quarter to $324m. Telus finished the second quarter with $21m in cash and short investments.

Revenue: $2.55b 6 months 2011



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Daily business news at www.biv.com August 16–22, 20118 Finance

InsIder TradIng

The following is a list of trades made by corporate executives, directors and other com-pany insiders of B.C.’s public companies filed by the week ending August 4. The informa-tion comes from a compilation of required reports filed with the BC Securities Commis-sion within five calendar days of a change in an insider’s holdings.

Insider: Daniel MacInnis, president and CEOCompany: MAG Silver Corp. (TSX:MAG) Shares owned: 261,300Trade date: July 21, 25, 28, 29, August 2, 3Trade total: $464,074 (net)Trade: Sale of 67,300 shares over five days at prices rang-ing from $9.52 and $10.95 per share after acquiring 90,000 shares at $2.46 per share through the exercise of options.

Insider: John Nugent, executive chairmanCompany: Euromax Resources Ltd. (TSX-V:EOX)Shares owned: 690,000

Trade date: July 28, 29, August 2, 3Trade total: $148,337Trade: Purchase of 440,000 shares over four days at prices ranging from $0.32 to $0.37 per share.

Insider: Peter Lloyd, vice-president and general man-ager, Peak Gold MinesCompany: New Gold Inc. (TSX:NGD)Shares owned: 107,667Trade date: August 3Trade total: $107,150Trade: Acquisition of 13,667 shares for $7.84 per share through the exercise of options.

Insider: John Greenslade, president and CEOCompany: Baja Mining Corp. (TSX:BAJ) Shares owned: 480,000Trade date: July 20Trade total: $96,073 (net)Trade: Sale of 200,000 shares at prices ranging from $1.17 to $1.20 per share following the acquisition of 350,000 shares for $0.40 per share through the exercise of options.

Insider: Lindsay Swann, directorCompany: Ascot Resources Ltd. (TSX-V:AOT)Shares owned: 0Trade date: July 19, 20Trade total: $92,155Trade: Sale of 85,000 shares at prices ranging from $1.02 to $1.15 per share after acquir-ing 85,000 shares through the exercise of options.

Insider: Mark Stevens, vice-president, explorationCompany: Augusta Resource Corp. (TSX:AZC)Shares owned: 0Trade date: June 30Trade total: $92,000Trade: Sale of 20,000 shares for $4.60 per share.

Insider: Edward Seraphim, COOCompany: West Fraser Tim-ber Co. Ltd. (TSX:WFT)Shares owned: 2,002Trade date: August 3Trade total: $89.980Trade: Purchase of 2,000 shares at $44.99 per share.

Insider: Jim Pettit, chairman and CEO

Company: Bayfield Ventures Corp. (TSX-V:BYV)Shares owned: 504,000Trade date: June 27Trade total: $81,800 Trade: Sale of 50,000 shares at $0.94 per share and 40,000 shares at $0.87 per share.

Insider: Douglas Jones, vice-president, China operationsCompany: Eldorado Gold Corp. (TSX:ELD)Shares owned: 0Trade date: July 14Trade total: $80,907 (net)Trade: Sale of 50,000 shares at prices ranging from $15.37 to $17.03 per share after acquiring 50,000 shares for $15.37 through the exercise of options.

Insider: Gerald Carlson, directorCompany: Almaden Minerals Ltd. (TSX:AMM)Shares owned: 38,000Trade date: July 4, 6Trade total: $80,500Trade: Sale of 20,000 shares at $3.21 per share and sale of 5,000 shares at $3.26 per [email protected]

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JoBS DRoP IN GooDS SECToR All five major subsectors down in July

▼3.3% ▼10.4% ▼7.2% ▼3.6%

July employment

(goods sector)

July employment

(natural resources)

July employment (agriculture)

July employment

(manu-facturing)

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

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

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

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


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


August 16–22, 2011 Business in Vancouver 9finAnce

Housing idyllCanadian Bankers Association statistics indicate the proportion of residential mort-gages in B.C. three months or more in ar-rears was 0.47% in May 2011, down from a recent high of 0.49% in February. This is slightly above the national average of 0.41%. (A mortgage that’s three months or more in arrears is liable to proceedings by lenders.)

The proportion of mortgages in arrears in May 2008 was just 0.15%, but has risen steadily with just one month’s interruption in April 2010.

The good news is that today’s borrow-ers face neither the double-digit mortgage rates of the late 1980s and early 1990s nor the sharp correction in home prices that contributed to the woes of 1991-92. The economy has also held its own, unlike 1998-03 when arrears were north of 0.5% of all mortgages.

However, the danger today is that histor-ically low rates and relatively stable econom-ic conditions have lulled buyers into an idyll. With fear roiling stock markets this month and casting economic growth in doubt, homeowners should recognize the danger stagnant wages and job losses pose.

Bryan Yu, an economist with Central 1 Credit Union, says the recent increase in mortgages in arrears was linked to a rise in job losses during the 2009 recession. The incipient decline in the arrears rate re-flects the province’s modest employment growth.

“We have seen lower employment growth and, historically, if you look at not only the mortgage in arrears but also the bankruptcy levels, both of them are high-ly correlated with the employment pic-ture and the labour market picture,” Yu

explained. But with the U.S. announcing last week that it would hold the line on in-terest rates well into 2013 and the Bank of Canada likewise expected to hold off hik-ing its prime rate until 2012, Yu expects homeowners to enjoy low interest rates for the foreseeable future.

“That would be a positive in terms of this mortgage arrears number,” he said. “That would probably bring us down even further.”

Building cautionThe rebound in housing markets of the past two years has given many develop-ers the gumption to surge ahead with new

construction, but MPC Intelligence Inc. believes there’s reason for caution.

While interest rates look to remain in buyers’ favour, the latest edition of the Con-do Market Opportunities Report points to slowing in-migration figures to warn that household growth is slowing.

While sales of condominium apartment and townhomes is set to be 73% greater in 2011 than in 2009, net migration to B.C. was 50% lower in the first three months of this year versus the same period of 2010. And projections indicate it could end 2011 down 40% overall from last year.

MPC argues this could translate into a 10% to 15% drop in new condo sales in 2012, leaving developers with excess inventory.

“Overall, we see prices and sales sort of pulling back in 2012,” said Jeff Hancock, senior manager with MPC. “A big red flag for us was the migration numbers, which really took a bit of a dive.”

Developers have been disciplined with respect to pricing, even cutting prices at projects that launched this summer in re-sponse to slowing sales. But that might not be enough to keep demand in balance with

supply if potential buyers haven’t moved here.

Add in economic uncertainties and Hancock says developers need to be cau-tious and understand the markets where they’re hoping to build lest they contribute to the gathering headwinds.

“It’s going to be an oversupply or some unforeseen economic catastrophe that could really push the market over the edge,” Hancock said. “It’s not necessarily pricing, because we’ve seen pricing come down and we’ve seen the market respond to it.”

According to the report, Fraser Valley builders should be particularly aware of over-supply possibilities.

Hotel sales riseA million-dollar upgrade to the Lake Oka-nagan Resort just north of Kelowna on the west side of Lake Okanagan is one sign of the investment B.C. hotel owners are mak-ing in their properties. Rooms at the resort, which sits on 300 acres, have been renovat-ed and a 158-slip marina has been added to the property.

Calgary’s Northwynd Resort Proper-ties Ltd. acquired Lake Okanagan Resort last summer during the restructuring of Fairmont Resort Properties Ltd. Its port-folio includes other former Fairmont prop-erties in Nevada, Mexico and Belize.

Other buyers have also been active in the province this year, with Colliers Inter-national Hotels reporting eight properties trading in the first half of 2011. That com-pares with six in the same period last year and 12 hotel sales overall in 2010. •[email protected]

Number of mortgage-holders behind in payments is downResidential mortgages in arrears as a percentage of all B.C. mortgages

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Real estate Roundup

Peter MithaMStorm clouds save property owners from interest rate hikes; in-migration slowdown rings alarm bells for B.C. developers

0.10%

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

“A big red flag for us was the

migration numbers, which

really took a bit of a dive”

– Jeff hancock, senior manager, MPC intelligence

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

Source: canadian BankerS aSSociation

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Daily business news at www.biv.com August 16–22, 201110 Real estate

Colliers International

3836 Carrigan Court BurnabyCarrigan Place Apartments

Large 65-unit garden apartment. Walking distance to Lougheed SkyTrain Station. John Gee$10,898,000 Owen Yates

933 Brookmere Station RoadMarshall Springs Brookmere

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

INVESTMENT

INDUSTRIAL

63,575 SF new freestanding warehouse/manufacturing facility.

18380 McCartney Way Richmond

Bruno Fiorvento*$5.95/SF Andrew Lord

185,000 SFon 15.7 acres.

Rail/barge access.

1050 United Boulevard Coquitlam

Todd ScarlettSublease Malcolm Earle

38058 Cleveland Avenue Squamish

Space from 25,000 to 111,000 SF.

7990 Hoskins Street Delta

$8.75/SF Craig Kincaid-Smith

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

In the KnowMETRO VANCOUVER INDUSTRIAL MARKET OVERVIEW

1436 Pendrell Street VancouverPendrell Mansions

Lot 1 Five CovesCourt Ordered Sale

968 Nicola Street VanouverLangtry Apartments

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

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

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

John Gee$4,498,000 Steve Fame

Mark Lester*$1,595,000 Alan Johnson

John Gee$2,888,000 Steve Fame

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

53,227 SF premium lightindustrial space in South Burnaby.

5888 Trapp Avenue BurnabyGlenwood Industrial Estates

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

Metro Vancouver Historical Performance

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August 16–22, 2011 Business in Vancouver Daily email edition: www.biv.com 11

Centre your business in a strong, liveable, healthy community

Go to Burnaby’s Economic Development Strategy 2020 online www.burnaby.ca/eds2020 or contact the Planning Department at 604.294.7400 to learn more.

high teCh business parks

major post seCondary institutions

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HigH-TecH Office

AlAn ZismAnGauging Google’s latest social media initiative

clichés abound: “Build a better mouse trap and

the world will beat a path to your door”; “If at first you don’t succeed, try, try again.”

Both may represent feel-ings over at the GooglePlex, where Google, the world’s

most successful Internet search company, is hoping that Google+, a fourth try at social networking, will suc-ceed where previous efforts Orkut, Google Wave and Google Buzz have failed.

The company hopes

Google+ will appeal to Twit-ter users frustrated by that service’s 140-character limit or the awkwardness of con-necting images or videos to tweets, and to Facebook users frustrated by the dif-ficulty targeting postings to only some Facebook “friends” and unhappy with that service’s apparent indif-ference to privacy issues.

While I never got the point of Google’s earlier Wave and Buzz services, Google+ offers easy-to-use improvements over Facebook and Twitter. The best is “circles.”

While Facebook allows users to create groups of friends, most users haven’t figured out how to do that. Google+, by contrast, makes creating circles and assigning followers to them straight-forward – and a basic part of the interface. Each time a user posts, she or he is asked what circle(s) should receive the message.

Users have control over what personal information is shared with each circle: friends and family get to see my phone number; acquaint-ances do not.

A business owner could

create circles for custom-ers or suppliers, for specific product lines or marketing campaigns, with different posts targeted for each.

Facebook “friending” is a two-way street: each sees the other’s posts. Google+ is more like Twitter with follow-ers instead of friends: I follow you, you choose whether you want to follow me.

A Google+ user can in-vite email or social network contacts to join the service and follow her or him; people

who don’t join can still be sent postings as email mes-sages but will be unable to contribute to the online con-versation. Since you can post long entries, easily add photos and video and op-tionally make posts “pub-lic” – searchable on the web – Google+ can become a

blogging medium.But it’s more; you can post

a message to a single per-son, making it an email re-placement. Post a message to your customers or em-ployees, making it a business newsletter replacement. Post a message to all your circles, making it a Twitter replace-ment – without that service’s limitations. But that’s not all.

“Sparks” is Google+ speak for topics of interest. Pick a featured topic or search for a topic of choice to see what’s been posted – and made public – on that topic. You can “pin” that spark onto your personal list, mak-ing it easy to return again and again. More Google+ speak: “hangouts.” Instant video-conferencing for up to 10 participants. The person speaking is displayed in the big window in the centre.

If you leave Facebook or Twitter your data disappears; Google+ instead has a “data liberation” tool that lets users take their data with them if they choose to leave.

Nevertheless, it’s not clear whether the world is ready for another social media ser-vice – even a better one. In

the first three weeks follow-ing its June 28 launch, Google signed on some 20 million users. Facebook, however, boasts over 750 million. And while visits to the Google+ site soared over those first three weeks, both visits and average time on site dropped the following week as users found that there wasn’t a critical mass of either con-tacts or conversations. That made Google+ seem like a pub without many other cus-tomers. (Note that Facebook is also facing a shrinking user base, at least in the U.S., Can-ada and the U.K.)

Google+ is, as I write, a beta; for now, you can’t just sign on – you need to be “invited” by a current user. Personal accounts only, no businesses need apply. And real names only. If you’re in-terested in trying this would-be Facebook/Twitter-killer and don’t have anyone else to invite you to the party, drop me a line. You’re all my “friends,” aren’t you? •

Alan Zisman (www.zisman.ca) is a Vancouver educator and computer specialist. His column appears weekly.

A business owner

could create circles for

customers or suppliers,

for specific product lines

or marketing campaigns

Biotech’s battle to remain buoyantThe sector’s high research costs, high risk and high profit potential up against new market jitters

life sciences in Eastern Canada.“They’re probably trying to

get their stock price up,” said Jim Heppell, president and founder of Lions Capital Corp. “It sounds like iCO is looking to expand their invest-or base over to Eastern Canada.”

One advantage iCO has over other small pharmaceutical com-panies is that it focuses more on search and development than re-search and development – obtaining rights to drugs that have already been approved or are partway through clinical trials and then repurposing them for treatments for which they were not originally designed. That approach reduces the amount of money the company must spend on clinical trials.

John-Paul Heale, assistant dir-ector for the University of British Columbia’s industrial liaison office, which helps scientists commercial-ize their ideas and inventions, said the biotech sector has been recover-ing from the shock of 2008’s sudden withdrawal of capital.

“If there is a double-dip recession in the U.S., it will affect investor cash and biotech will suffer,” he said.

But Heppell said there’s reason for optimism, because large phar-maceutical companies with expiring drug patents are facing competition from generic drug-makers and are

By Nelson Bennett

Local biotech and pharmaceut-ical companies are posting first-

half financials that demonstrate why the life-sciences sector is not for the faint-of-heart investor.

While Angiotech Pharmaceut-icals recapitalizes in the wake of creditor protection, two of Vancou-ver’s other major players in biotech – OncoGenex Pharmaceuticals Inc. (Nasdaq:GXI) and QLT Inc. (Nasdaq:QLTI; TSX:QLT) – burned through millions in the first half of 2011 to post operating losses of $9.6 million and $8.7 million, respective-ly. While those companies are well capitalized and enjoy steady revenue from previously approved drugs, market volatility threatens smaller startups, which need venture capital to fund horrendously costly clin-ical trials.

“When we see these major vola-tility swings, I think you can only describe it as gut-wrenching,” said Bob Butchofsky, president and CEO of QLT, which has emerged in recent years from a series of major divest-ments and restructuring to find itself on solid financial ground.

Starting in 2005, QLT, which specializes in treating eye diseases, had to lay off half its workforce and sell off assets. The company is now

growing again, collecting royalties on drugs it developed – Visudyne (used to treat macular degeneration) and Eligard (a prostate cancer drug) – and is hiring.

The company sold Eligard for $230 million and has increased its head count by more than 50 in the last year-and-a-half to 170.

“We’re pretty much unlike every other biotech in town,” Butchof-sky said. “We’ve got $200 million in cash, we’ve got no debt, we’ve got positive cash flow and we have two very exciting programs in the ocu-lar space.”

Companies that don’t have QLT’s

royalties must rely on equity mar-kets, which are again in flux, as they were in 2008 when investors pulled their money out of biotech.

The Nasdaq biotech index was down more than 15% midweek, which may spell bad news for small-er biotech firms depending on how long the contraction lasts.

“Those companies typically get started with venture backing and the venture market has really dried up,” Butchofsky said.

That may explain why iCO Therapeutics Inc. (TSX-V: IC) has hired Equicom Group Inc. to help raise capital. Equicom specializes in

therefore in buy mode.He added that because of bio-

tech’s high overhead and high risk, it’s a lot like gold mining, and tends to attract only the savviest venture capitalists. It’s also like gold mining in its potential payoffs.

Lions Capital was a lead first-round investor in Aspreva Pharma-ceuticals, the Victoria company that Galencia Group bought in 2007 for $1 billion.

Lions Capital got back 23.4 times what it invested in the company.

“That’s why people invest in life sciences,” Heppell said. “It’s risky, but when you hit it right, it’s a lot of fun.”

The problem for biotech is the high cost of proving new drugs or treatments through human clinical trials. Heppell estimated that be-cause clinical trials are expensive a biotech’s monthly burn rate is any-where from $300,000 to $1.5 million.OncoGenex, for example, which specializes in cancer treatments, posted first-half financials last week that showed a net loss of $9.6 million in 2011’s first six months.

When a company doesn’t have strong, steady revenue from its pre-viously approved products, it can run into debt quickly. That was the case with Angiotech, which found itself unable to pay its creditors after royalties from its Taxus coronary stent started falling. In January, Angiotech filed for creditor protec-tion, and its stock was delisted from the Nasdaq and Toronto Stock Ex-change. Angiotech emerged from creditor protection in May after a re-capitalization. •[email protected]

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

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Daily business news at www.biv.com August 16–22, 201112 Technology

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

Surreyreport

InsIde

Facilitating the future — 14New business leaders roll out strategies to establish Surrey as an economic force

Women in Business — 16Businesswomen in Surrey demonstrate attributes of successful entrepreneurs

Announcing the 2011

Recognizing Surrey’s most significant accomplishments in

urban design & architecture.

11587

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

The 2011 NewCity Design Award categories range from single family dwellings to comprehensive mixed use developments. The awards will collect and promote examples of best practices shaping British Columbia’s most dynamic large city, and will be selected by this distinguished international jury:

David Down FRAIC, Senior Architect/Urban Designer City of Calgary

Susan Jones FAIA, Founding Partner, atelierjones architects. Seattle, Washington

Margot Long FCSLA, Principal, PWL Partnership Landscape Architects, Vancouver

Surrey i s Bu i lD i Ng the Future

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

www.surrey.ca/awards

Key Dates

Sept 9, 2011 deadline for submissions

Oct 25, 2011 awards reception hosted by Mayor Dianne Watts

Business supports light railSeveral new lines being considered would link SkyTrain with south Surrey and Langley

By Glen Korstrom

surrey business leaders are join-ing civic leaders south of the

Fraser River by lobbying for light rail in Surrey to be the region’s top transit priority once the province confirms financing for the Ever-green Line.

Metro Vancouver mayors are urging the BC Liberals to hike gas taxes by $0.02 per litre with that funding earmarked to pay for the Evergreen Line and other transit upgrades.

“Light rail will for sure bring more shoppers to Guildford Town Centre,” said that shopping cen-tre’s general manager Peggy White. “We already enjoy about 10 million shoppers each year and I know that the folks at Metrotown probably enjoy double that because SkyTrain is there.”

White’s 985,000-square-foot mall is currently being renovated to add a further 215,000 square feet of retail space where there previously were parking stalls, she said.

A multi-storey parkade is being built so that there will be 5,200 total parking spaces – up from 3,500 cur-rent spaces and the 5,000 spaces that existed before the mall expansion started. Most of the 800 people who work at Guildford on an average day drive to work and take parking spots that would otherwise be freed up for shoppers, she said.

“A lot of people travel across the bridge to do a lot of their shopping – fancy shopping, if you wish – what you would get on Robson Street, Metrotown or Oakridge. We want to fill that void south of the Fraser [River], big time,” said White.

Metrotown has 1.8 million square feet of retail space and 8,500 parking spaces according to general man-ager Doug MacDougall.

White believes that having light rail run from the City Centre Sky-Train station along a modified 104th Avenue to Guildford and then to South Surrey via King George Boulevard would dramatically im-prove transit access to Guildford.

Mayor Dianne Watts mentioned that route during her state of the city address in April. She added that an-other spike in that light-rail project would be to extend to Langley along Fraser Highway.

“The run along 104th Avenue from City Centre to Guildford is a straightforward line. The problem

is that it’s too short,” acting mayor Marvin Hunt told Business in Van-couver. “All the way down to south Surrey would be nice but it will come down to how many dollars we have to spend.”

He mocked comments that Van-couver mayoral candidates Gregor Robertson and Suzanne Anton made earlier this summer to Busi-ness in Vancouver, advocating an extension of the Millennium Line through the Broadway corridor as the next logical transit megaproject for the region.

“Vancouver is always the first pri-ority because it’s Vancouver. They’ve got the Canada Line, the Expo Line, the Millennium Line, the Broadway B-Line busses. They’ve got whatever

else under the sun. But, yes, they’re right, Vancouver should get more,” Hunt said before quickly adding, “I’m being exceedingly sarcastic.”

Surrey does not have even a sin-gle B-Line bus right now, although that would be slated to change if Victoria approves the $0.02 hike to gas taxes to pay for the Evergreen Line.

“The reason we want light rail is that we want to promote our busi-nesses. With SkyTrain, whether it is up in the air or tunnelled, people don’t get to see businesses when they are going by. They don’t get to see new stores that go in,” Hunt said.

Some business owners along the route, such as Lisa Bui who owns Pink Rose Nail on 104th Avenue, told BIV that they are ambivalent about improved transit.

Unlike many main streets, 104th Avenue already does not have park-ing, Bui said. Her shop has one off-road designated spot and she does not expect that clients will have any more difficulty parking if the light-rail line is installed.

The Surrey Board of Trade has through the years participated in countless studies and workshops in-vestigating rapid transit in the city.

The board’s CEO, Anita Patil Huberman, told Business in Van-couver that the three main tech-nologies recently considered were SkyTrain, light rail or an expanded system of B-Line busses.

“We created a policy statement at our board meeting in May that officially advises TransLink that we support the development of light rail as the primary rapid transit option in Surrey,” she said. •[email protected]

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

Bureaucracy bustersA red-tape reduction committee struck by the City of Surrey finds 75 out of 300 policies to be outdated or unnecessary

By Nelson Bennett

If there’s anything a business-person hates more than taxes, it’s

red tape. Surrey already boasts one of

the lowest business and industrial tax rates in the region. And now it is working on becoming one of the least bureaucratic cities in the region.

In January, as part of the city’s two-phase economic investment action plan, and at the urging of the Canadian Federation of Independ-ent Business (CFIB), Surrey Mayor Diane Watts struck the red-tape reduction advisory committee and appointed Coun. Linda Hepner to head it up.

“We needed to see some leader-ship at the municipal level,” said Laura Jones, CFIB’s vice-president, Western Canada, who was the one who convinced Watts to strike the committee.

“We heard a lot about process-es,” said Hepner, who chaired the 16-member committee. “There is a whole lot of cost to business that is unintended.”

The CFIB calculates the cost of meeting government regulations in B.C. is worth $4.8 billion. It is par-ticularly onerous for small business-es, because while they have to meet

See Frustration, 15

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Facilitating the futureNew business leaders roll out strategies to establish Surrey as an economic force

By Jennifer Harrison

Two newly minted and experienced presidents

at the helm of the Surrey Board of Trade (SBOT) and the Downtown Surrey Busi-ness Improvement Associa-tion (DSBIA) are intent on bolstering the transforma-tion of Surrey’s city centre.

Bi l l R e mp e l , v i c e -president and general man-ager of Blackwood Partners Management Corp. and president of the DSBIA since February, is intent on promoting the economic

development of the city’s downtown core and strength-ening government relations.

Mary Jane Stenberg, new president of the SBOT, sees cultivating and securing top talent through education as key to the future success of the community.

Stenberg, a longtime edu-cator who owned her own private post-secondary insti-tution called Stenberg Col-lege for 15 years and who is currently the special advis-er to the president on stra-tegic initiatives at Kwantlen Polytechnic University,

is intimately aware of the link between business and education.

“We have two major uni-versities – Simon Fraser University’s Surrey campus and Kwantlen – and a lot of really bright, innovative grads coming out of both in-stitutions,” she said.

“We want to encourage them to stay here, start their businesses here or work for existing business, and bring all that youth and energy and education to this region to help develop it and keep it going.”

In a classic chicken-and-egg scenario, Stenberg ex-plains that, on the other hand, if there isn’t a vibrant business community, then there is no incentive for pre-mier talent to stick around.

“You can’t look at one seg-ment or the other; you have to look at education, social policy and business as a con-tinuum; I think my back-ground helps the board of trade do that,” said Stenberg.

As past president of the Downtown Vancouver Busi-ness Improvement Associa-tion, Rempel believes that the issues facing Surrey are no different from those of any other metropolitan area.

However, when asked about the perception of Sur-rey as a sleeper community, Rempel is quick to note that the DSBIA is making great headway in addressing this notion.

Some key initiatives have been to organize media and real estate tours to Surrey along with visits to trade-shows and exhibitions to encourage growth and in-vestment in the area.

Rempel admits, “Our im-mediate area is crying out for a new hotel, which I hope will be the next development

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“Decisions are being made

today which will impact

future generations and we

have a great opportunity

to be part of this process”

– Bill Rempel, president,

Downtown Surrey Business Improvement Association

in our downtown. In addi-tion, there is a large demand for triple-A office space in downtown Surrey. The office tower at Central City is cur-rently 100% leased, but GE Capital Real Estate has plans for additional office towers at Gateway Business Park.”

When speaking of the SBOT’s goals for the future, Stenberg agreed.

The establishment of an International Trade Cen-tre facilitated by the board of trade will be instrumen-tal in bringing more busi-ness to Surrey and creating more jobs.

The SBOT has signed memoranda of understand-ing with about 10 consulates to work with them on eco-nomic development.

Stenberg said, “We are looking for funding and talk-ing to provincial and federal governments to help fund us so we can establish ourselves as a portal to encourage inter-national partners to invest in Surrey and invest in some of our local companies.”

Realizing her time is fleet-ing with a one-year tenure as president, Stenberg says her most important role is keeping things on track at the SBOT.

“My personal goals are to really solidify relationships with the mayor and council,

to promote their vision even more and to represent the views of our members in terms of the advocacy work we do to continue to go out and survey their needs and make sure that we address them.”

Rempel’s highest priority during his term as president?

“To ensure the business voice is heard as [the DS-BIA] continues to contribute to the shaping of our evolv-ing community. Decisions are being made today which will impact future genera-tions and we have a great op-portunity to be part of this process.” •[email protected]

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

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

Daily business news at www.biv.com August 16–22, 201114 Surrey report

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many of the same require-ments as big businesses, they don’t have their economies of scale.

“Red tape costs time and it costs money,” said Peter Simpson, president of the Greater Vancouver Home-builders Association and committee member. “So we’re pleased that Surrey is looking at ways to either miti-gate or eliminate it.”

The committee exam-ined 300 city policies and determined 25% were either unnecessary or counter-pro-ductive. The city has been working to either scrap or streamline those policies, Hepner said.

“Policies that we develop today may have little or no relevance a decade from now, and there has to be a sun-set clause in those policies,” she said.

One of the biggest com-plaints the committee heard was about city hall process-es. For example, the city re-quires inspections at certain stages of a development. But homebuilders complained that when they booked an inspector, he or she didn’t al-ways show up on time, which meant they would often have to pay tradesmen to stand around waiting to have an inspection.

In response to those com-plaints, Surrey is now imple-menting a new electronic notification system that will let builders know, by email or SMS, what the status of

the inspection is, and if any delays are expected. Inspect-ors will also have equipment that will allow them to print inspection documents on the spot.

Another source of frus-tration for anyone trying to do business with municipal bureaucrats is simply getting through to the right person in a timely fashion and get-ting consistent, accurate in-formation. Too often, they end up passed onto different departments, getting con-flicting information or no an-swer at all.

“People wanted clear dir-ection, immediately,” Hepner said. “So we’ve got a manage-ment system that identifies an immediate contact person for them, that they’re not getting that runaround.”

Now, when a business-person contacts city hall with a development plan, a project manager is appointed and he or she works with a team of city officials from relevant de-partments to make sure the process is streamlined and co-ordinated.

The city is also working on streamlining its online processes. Hepner said her committee heard from busi-nesses that they want to be able to conduct business on-line – including making pay-ments –without having to come down to city hall at each stage of a development process.

Hepner’s committee will be meeting in September and will be issuing a final report

informing the city’s business community of the steps it has already taken and plan to take in the future.

To make sure the city’s red-tape reduction strategies are working, Hepner said the committee is recommending measurement protocols to ensure the actions it is rec-ommending are working and continuing to be followed.

That’s one policy Jones said she wouldn’t mind see-ing city hall hold on to.

“Not all rules are bad rules,” she said. •[email protected]

From Bureaucracy, 13

Frustration: Shuffled around departments

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

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Join the movement. Make a change for good.

women in business

Kristi MillerBusinesswomen in Surrey demonstrate attributes of successful entrepreneurs

out of necessity or pas-sion, women through-

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

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

fundamental change under-way: women are increasing-ly ready, willing and able to grow their small businesses to the next level.

I believe much of this can be attributed to the signifi-cant increase in post-second-ary education over the past decade. Statistics Canada re-ports that more women now

graduate from post-second-ary education programs than men. As a result, a new gener-ation of women has emerged – one that is well educated in business, financially sophisti-cated, more risk tolerant, well networked and ready to go big with their businesses.

These women are also not afraid to ask questions.

Frequently, I’m approached by female entrepreneurs here in Surrey and asked what I see as the key attributes for owners wanting to take their small businesses to that next level. Without hesita-tion, I tell them to draw on those qualities that launched them on their entrepreneur-ial journey:

Tenacity: Be tenacious. Persevere. You faced ob-stacles getting your business started – you’re going to face new ones as you grow it. You didn’t quit then; don’t give up now.

P r a g mat i sm : M a ke practical choices, establish efficient processes, set chal-lenging but achievable goals. Seek out and listen to trusted advisers before making deci-sions and then make choices you can live with. Remember, not everything has to be per-fect and not everyone has to agree with you. It’s your com-pany, after all.

A broad range of com-munication techniques and styles: In today’s inter-connected world, effective communication is king (or queen!). Moving from a one- or two-person operation to a multi-person, multi-cultur-al, multi-regional team re-quires you to connect with your stakeholders like never before. Make good use of the communication skills that you already possess and tailor your communication style to each situation and audience.

The ability to say “I don’t know”: Saying you don’t know gives you the permis-sion and freedom to learn more about yourself, your business and your customers. Asking, learning and re-cali-brating: these are essential qualities to successfully to growing your business.

Good, old-fashioned elbow grease: All successful entrepreneurs share a tre-mendous work ethic. But be careful of this derailer: as you add more staff, the type of work you’ve done in the past must change. Getting bigger means entrusting import-ant parts of your business to others. You will still work hard – very hard – but the na-ture of the work will become increasingly strategic as your business scales.

Optimism: Every suc-cessful entrepreneur I know believes that things can be done better. Never lose your faith in and commitment to

continuous improvement.I recently had the pleas-

ure of working alongside a businesswoman here in Sur-rey who I believe epitom-izes these attributes: Meeru Dhalwala of Vij’s.

Meeru – together with her husband Vikram – had a vision to bring the best fla-vours and foods of India to the North American market-place. Her beginnings were

humble – fuelled only by a passion for what could be. Today, Meeru has diversified her business – it has rapidly grown into two (soon to be three) restaurant concepts, a cookbook series, a well-estab-lished media presence in the North American ethno-food industry and a new pack-aged-foods manufacturing operation. In fact, the New York Times applauded Vij’s as “one of the best Indian res-taurants in the world.”

It’s women like Meeru – ones who have crossed the glass divide – who continue to inspire the emerging gen-eration of women entrepre-neurs. With Surrey’s healthy business environment, good mix of demographics and access to strategic local and global markets, I’m confident we will continue to attract more of these enterpris-ing women to our city and hear of more home-grown successes.

Entrepreneurs who are thinking big about their businesses are good for the health and overall well-being of the entire Surrey business community. •

Kristi Miller is vice-president of First West Capital – a sub-ordinated and mezzanine debt fund based in Surrey. With more than 15 years of fi-nancial industry experience, Miller is also the immediate past president of the Associ-ation of Women in Finance (AWF) and an enthusiastic supporter of the Forum for Women Entrepreneurs. Learn more at firstwestcapital.ca or by emailing [email protected].

Women are increasingly

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to the next level

Daily business news at www.biv.com August 16–22, 201116 Surrey report

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August 16–22, 2011 Business in Vancouver 17

Sustainability sponsors:

NHL all-star Scott Niedermayer teams up with World Wildlife Fund Canada2010 Olympic gold medallist and captain of Team Canada joins WWF to become new freshwater ambassador

By Jen O’Rourke

Just over a year after retiring from the NHL and leading Team Can-

ada to an Olympic gold medal in Van-couver, Scott Niedermayer has taken up the reins again to bring the city, and the country, international recog-nition. This time, however, even the salmon will be applauding him.

Niedermayer has joined forces with the World Wildlife Fund (WWF) to become Canada’s fresh-water ambassador, with a focus on the Pacific region.

In his new role, Niedermayer will be working with the WWF in its freshwater program, a job that entails raising awareness of the issues in-volved with the consumption of fresh water and the impacts its usage has on the ecosystems that depend on it.

As someone who’s always had an interest in the environment and con-servation, it wasn’t long after his June 2010 retirement from the NHL that Niedermayer’s agent suggested he connect with the WWF.

“I was eager to explore something different than frozen ice and a piece of rubber, which was great – I had a lot of

fun doing that. But at the same time, I was excited to learn some new things and try on something different,” said Niedermayer.

It’s a move that WWF president and CEO Gerald Butts and vice-president, Pacific region, Darcy Dobell trust will raise awareness and inspire Canadians nationwide about freshwater ecosystems and the importance of conserving those ecosystems.

“We’re looking to elevate fresh water as a policy issue, a public re-lations issue. ... Our point is a really simple, straightforward one: that the life that’s in and around freshwater ecosystems, like grizzly bears and sal-mon – all the things that make B.C. B.C. – are really important. We need to have a better scientific understand-ing of what those species need before

we start taking so much of it for our-selves,” said Butts.

The government is currently work-ing on overhauling B.C.’s freshwater legislation, which is more than 100 years old.

As it stands right now, what is re-quired to keep the environment alive around freshwater ecosystems doesn’t have to be taken into consideration before the resource is allocated for commercial, industrial or residential purposes.

With Vancouver having a “hyper-aware” public and a mayor that makes it his goal publicly to make the city the greenest city on earth, having it also become a leader in the world for fresh-water sustainability is something Do-bell hopes will soon become a reality.

“We can be ahead of the prob-lem and get ready and be prepared,

because things are going to change,” said Dobell. “It’s good to have the legislation in place now, but we can also take this opportunity to be the first jurisdiction in Canada ... to be a model, not just for jurisdictions that have had to do this because of scarcity, but to be able to show this to other places – how you can do this right, proactively.”

As for what drew Niedermayer to WWF as his choice in conservation organizations, it was all about their approach.

“I like how they seem to approach it with some give and take and some finesse, and try and just get every-body feeling good about what’s going on,” said Niedermayer, “as opposed to maybe being the loudest voice in the room, and that’s more my style.” •[email protected]

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

Do

min

ic S

ch

ae

fe

r

“I was eager to explore

something different than frozen

ice and a piece of rubber,

which was great – I had a lot

of fun doing that. But at the

same time, I was excited to

learn some new things and

try on something different”– Scott Niedermayer,

freshwater ambassador,World Wildlife Fund Canada

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sustainability

NINA WINHAMGreening human nature

Can we get to a sustain-able economy by adapt-

ing the economy as we know it? Or does something much deeper have to happen?

That question surfaced at a recent public consulta-tion process I was invited to, leading up to next year’s “Rio+20” UN Conference on Sustainable Develop-ment. The event highlighted the gap between two path-ways to change: a meas-ured transition based on increased investment and pursuit of green opportun-ity, or a transformative leap based on grappling with hu-man nature and its potential for self-destruction. Epic? Quite.

First, the presenter from United Nations Environ-ment Program (UNEP), Amy Fraenkel, did a tidy job of offering key findings from the agency’s recent report, Towards a Green Economy (available online at unep.org/greeneconomy).

It’s good news if you har-bour lingering worries that going green could be bad for business. The report concludes that “the green-ing of economies is … a new engine of growth … a net generator of decent jobs and … a vital strategy for the elimination of per-sistent poverty.” Greening the economy requires up-front investment, then leads to both higher GDP and improved environmental outcomes.

Fraenkel did note that the report was written to catch the attention of econo-mists, using accepted frame-works of economic analysis and practice. The challenge that rose from the floor was whether such framing does

us any good or dooms us to continued failure. It came from Bill Rees, the desig-nated respondent. A pro-fessor at UBC, a specialist in population ecology and a founding member of One Earth Initiative (one of the event’s conveners), Rees is the author of the concept of ecological footprint, and a respected advocate for sus-tainability change.

Green means smallerRees put a plain point on his message: the scale of human enterprise on the planet is simply too big. We are de-stabilizing the climate, fish-ing at a pace that will empty the oceans, destroying soil reserves and other natural resources – and no amount of growth, no matter how smart, green or “sustain-able,” can save us.

“A green economy is a smaller economy,” said Rees. “I tell you right now, there will never be 11 billion people on this planet.”

Rees says any species, introduced to an unused en-vironment, will go through a “plague phase” where it pollutes and uses up resour-ces until the population crashes.

“Humans are doing that right now,” he said. “But this will take us down, as it has taken down other previ-ous human cultures. So my challenge is for us to rise to our capacity as human be-ings.” To do this, he says, there are a few fundamen-tals to be recognized: • recognize we must have a smaller economy;• achieve more justice in the way proceeds are dis-tributed between popula-tions; and

• ach ie ve popu lat ion stability.

Rees believes that rath-er than growth, we need redistribution.

“It’s obscene for 20% of the world’s people to earn 80% of world’s income and 20% to be living on 1% of the income. It is unsustainable – and it cannot be solved by growth.” Would change be painful? Not for those who already have enough. At that level, Rees said, “There is no correlation anymore between income and indi-cators of population health or felt well-being. People are driven by a model that says more money will make you happy – but that is pat-ently false.” Redistributing income would benefit those who are impoverished. For those of us who already have sufficiency, the benefit would be more time.

“Shifting out of the car-bon economy doesn’t mean a damn thing if we don’t make significant change,” said Rees. “What’s the sin-gle most important thing we can do to advance the green economy? My answer is ‘know ourselves’ – we don’t understand ourselves as a species.”

Humans: discounters and deniersRees says human beings are inherently discounters: “We prefer the here and now; we don’t give a damn about the future, or other species. If you left fruit on the tree for someone else, you didn’t get to eat them,” he said. (This makes us the same as most other ani-mals.) We’re also hierarch-ical. “We put a great deal of prestige in wealth and

political power. Those who have wealth and political power will defend it to the hilt.”

Those two traits lead to our capacity for “deep de-nial,” said Rees. “We will deny the problems that will take us down.” Which has spawned, he pointed out, a huge industry dedicated to misinformation about our current environmental state of affairs.

There’s good news, how-ever. Rees said we humans have four capabilities that a re uniquely our ow n. These, if we harness them, might save us:•we are highly intel l i-gent, with the ability to reason logically, consider facts, and plan a course of action;•we have the capacity for forward planning;•we have the capacity for moral judgment, to differ-entiate between right and wrong; and•we have compassion, the ability to understand the needs of others and extend care.

These capabilities could make the difference to our outcome on the planet, if we use them. But Rees argues that, by planning for a green economy using standard concepts such as growth, we’re not.

Harnessing our best“We’re acting like the most primitive species in the

planet, focused on the short term, as if there is no future to think about,” he said. “We’re missing out on be-ing truly human.

“Here is my challenge,” said Rees. “Become intel-ligent. Plan sensibly using that intelligence. Exercise your capacity for moral judgment and compassion for other humans and other species. Because continu-ing to act like an animal in plague phase simply guar-antees our demise.”

I don’t know if UNEP was listening, but I hope anyone toiling for more growth without v ision-ing much deeper solu-tions takes a moment, and hears. •

Nina Winham ([email protected]) is principal of New Climate Strategies, helping clients build value through sustainability and communications strategy. She writes regularly on sus-tainability topics. www.newclimate.ca.

“We’re acting like the

most primitive species

in the planet, focused

on the short term, as if

there is no future to think

about. We’re missing out

on being truly human”

– Bill Rees,specialist in population ecology,

founding member, One Earth Initiative

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August 16–22, 2011 Business in Vancouver 19sustainability

Biggest food franchises in B.C.Ranked by number of B.C. locations in 2011

Rank '11 Company Products/services Yearfounded

Top local executive(s) Franchise feeCapital requiredStart-up costs

Systemsales'10

No. B.C.franchises'11

No. B.C.locations'11

1 SUBWAY Franchise Systems of Canada Ltd25 King Edward St Suite 101, Coquitlam V3K 4S8P: 604-777-1999 F: 604-777-1998 www.subway.com

Quick-servicerestaurants

1988 Margot MicalleffAlex Melikian

$7,500 - $15,000/$100,000/$200,000

NP NP 367

2 Tim Hortons874 Sinclair Rd, Oakville, ON L6K 2Y1P: 905-845-6511 F: 905-845-0265 www.timhortons.com


1978 Glenn Mortimer, vice-president ofoperations, Western Canada

NP/$430,000 - $480,000/$50,000

$5.2 bil. 2781 2781

3 A&W Food Services of Canada Inc171 Esplanade W Suite 300, North Vancouver V7M 3K9P: 604-988-2141 F: 604-988-5531 www.aw.ca


1956 Paul Hollands, president and CEOGraham Cooke, vice-president, newrestaurant expansion

$55,000/$365,000 - $1,100,000/$25,000

$794mil.

173 173

4 Dairy Queen Canada Inc5045 South Service Rd Suite 3000, Burlington, ON L7R 3Y3P: 905-639-1492 F: 905-639-8877 www.dairyqueen.com

Quick-servicerestaurants with soft-serve dessert treats

1956 NP US$35,000/Varies/Varies

NP NP 140

5 White Spot Ltd1126 Marine Dr SE, Vancouver V5X 2V7P: 604-321-6631 F: 604-321-0637 www.whitespot.com

Full-service andquick-servicerestaurants

1928 Warren Erhart, president $40,000 (Triple-O's), $75,000 (White Spot)/$750,000 (Triple-O's), $1,500,000 (White Spot)/$25,000+ (Triple-O's), $50,000+ (White Spot)

NP 902 115

6 Quizno's Canada Restaurant Corp355 King St W Suite 300, Toronto M5V 1J6P: 877-481-7827 F: 647-259-0341 www.quiznos.ca

Toasted sandwichrestaurants

1981 NP $25,000/$90,000/$227,000 - $316,000

NP NP 92

7 Panago Pizza109 Atlantic Ave Unit 302A, Toronto M6K 1X4P: 877-731-0310 F: 905-574-6718 www.franchisepanago.com

Pizza delivery/takeoutoutlets

1986 Sean DeGregorio, CEO $25,000/$85,000 - $115,000/$250,000-$360,000

NP 90 90

8 Blenz The Canadian Coffee Co Ltd535 Thurlow St Suite 300, Vancouver V6E 3L2P: 604-682-2995 F: 604-684-2542 www.blenz.com

Premium coffee,espresso andbeverages; light food

1991 George Moen, president $25,000/$100,000 - $120,000/$280,000 - $330,000

NP 62 62

9 Boston Pizza International Inc5500 Parkwood Way, Richmond V6V 2M4P: 604-270-1108 F: 604-270-4168 www.bostonpizza.com

Casual diningrestaurant

1964 Jim Treliving, co-chairGeorge Melville, co-chairMark Pacinda, president and COO

$60,000/$600,000 - $800,000/$1,500,000 - $2,400,000

$853mil.3

NP 61

10 M & M Meat Shops LtdPO Box 2488, 640 Trillium Dr, Kitchener, ON N2H 6M3P: 519-895-1075 F: 519-895-0762 www.mmmeatshops.com

Specialty frozen food 1980 John Horsley $30,000/$175,000/$300,000 - $450,000

NP NP 49

11 Burger KingRestaurants of Canada Inc401 West Mall Suite 700, Etobicoke, ON M9C 5J4P: 416-626-6464 F: 416-626-6691 www.burgerking.ca


1969 NP $55,000/$2,000,000/$1,200,000-$2,200,000

NP 36 36

12 Wendy's Old Fashioned Hamburgers1 Dave Thomas Blvd, Dublin, OH 43017P: 614-764-3100 F: NP www.wendys.ca


1978 NP $40,000/$500,000/$1,000,000+

NP NP 31

13 Taco Time Canada7156 Fisher St SE, Calgary T2H 0W5P: 866-835-8226 F: 403-543-3499 www.tacotimecanada.com

Mexican fast-foodfranchisor

1977 NP $25,000/$350,000/$50,000

$52.6mil.

27 27

14 Ricky's All Day Grill1901 Rosser Ave Suite 401, Burnaby V5C 6S3P: 604-637-7272 F: 604-637-8874 www.rickys-restaurants.com

Full-servicerestaurant

1960 Frank Di Benedetto, president and CEO $45,000/$300,000 - $400,000/$800,000 - $950,000

NP NP 24

14 Taco Del Mar3071 No.5 Rd Unit 1, Richmond V6X 2T4P: 855-425-0868 F: 206-624-7065 www.tacodelmar.com

Mexican seafoodquick-servicerestaurants

1992 Darryl Chandra, presidentMichael Anthony, chair

$15,000/$156,700-$376,500/NP

NP NP 24

16 ABC Country Restaurants Inc15373 Fraser Hwy Suite 202, Surrey V3P 3R3P: 604-583-2919 F: 604-586-8488 www.abccountry.ca

Family restaurant 1972 Gordon Beattie, president $50,000/4

$200,000/$750,000

NP 23 23

16 Waves Coffee House715 Columbia St, New Westminster V3M 1B2P: 604-540-9283 F: 604-540-9299 www.wavescoffee.ca

Coffee housefranchisor

2005 NP $25,000/5

$300,000 - $350,000/NP

NP 22 23

18 De Dutch Pannekoek House8484 162 St Suite 108, Surrey V4N 1B4P: 604-543-3101 F: 604-543-3107 www.dedutch.com

Casual dining 1975 Bill Waring, president $37,500/Varies/Varies

NP NP 21

18 Nando's Chicken Canada13931 Sparwood Pl Suite 130, Richmond V6V 1X2P: 604-303-0881 F: 604-303-0882 www.nandoscanada.com

Flame-grilled chickenrestaurants

1994 Dan Isserow $35,000/$400,000/NP

NP NP 21

18 Keg Restaurants Ltd10100 Shellbridge Way, Richmond V6X 2W7P: 604-276-0242 F: 604-276-2681 www.kegsteakhouse.com

Steakhouserestaurants

1971 David Aisenstat, chair, president & CEOJim Croteau, COODoug Smith, EVPJames Henderson, EVP

$50,000/$2,000,000 - $3,000,000/Varies

$468.5mil.

12 21

21 Fatburger Canada1901 Rosser Ave Suite 401, Burnaby V5C 6S3P: 604-637-7272 F: 604-637-8874 www.fatburgercanada.com

Quick-service burgerrestaurants

2005 NP NP NP 18 18

22 The Pantry Hospitality Corp1812 152nd St Suite 203, Surrey V4A 4N5P: 604-536-4111 F: 604-536-4103 www.thepantry.ca

Family restaurant 1974 Mike Hoffmann, president $40,000/$450,000-$600,000/NP

NP NP 14

23 Esquires Coffee Houses Inc12823 Crescent Rd Suite 4, Surrey V4P 1J6P: 604-541-1004 F: 604-535-1411 www.esquirescoffee.com

Coffee shops 1992 NP $25,000/$250,000/$250,000 - $350,000

NP NP 12

23 Mr Mikes Steakhouse and Bar1500 Georgia St W Suite 1900, Vancouver V6G 2Z6P: 604-684-6901 F: 604-684-6937 www.mrmikes.ca

Steakhouse and bar 1960 Yuri Fulmer, CEO $50,000/$400,000 - 500,000/$800,000 - $1 million

NP NP 12

25 Joey's Only Seafood Restaurants514 42nd Ave SE, Calgary T2G 1Y6P: 403-243-4584 F: 403-243-8989 www.joeys.ca

Seafood restaurant 1985 NP NP NP 10 10

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

Do not miss the Book of Lists, a compilation of lists featured in BIV, including biggest law firms, construction companies, biotech firms and many more. Free to subscribers ($79.95 plus HST for one year) or $35 plus HST as a separate purchase. Purchase lists as Excel files at www.biv.com/listsforsale.

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, Jenny Wagler and Jennifer Harrison, [email protected].

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Daily business news at www.biv.com August 16–22, 201120 List

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Privately speakingYour challenges are our priority

Clancy’s rebrands to carve out bigger market share in specialty meats sector Take Five tackles overhaul in hotly contested Metro Vancouver café trade

Clancy’s Meat Co. CEO Paul Monger didn’t cut any cor-

ners when he realized that he needed to rejuvenate his com-pany’s brand if he wanted to take on the competition in the spe-cialty meats franchise industry.

Monger introduced Canada’s specialty food market to the con-cept of the “modern-day butcher shop.”

By adding an extensive line of frozen products accessible by self-serve freezers and a wide range of packaged sauces and marinades, Monger has executed a complete product overhaul designed to ap-peal to consumers’ evolving de-sires and tastes.

“We really need to carve out our business like anyone else,” Monger said. “We have to fight hard for that positioning, and this rebrand of our locations will help us achieve that.”

Stocked with fresh and fro-zen products, the new Clancy’s Meat stores are bright, airy and modern. In the 12 months since it started rolling out its new product line, the Surrey-based company has sold more than 25 new fran-chise locations across Canada and experienced a 250% system-wide sales growth.

Monger plans to open as many as 10 stores in B.C. over the next year, but, he said a lot depends on real estate.

“We get quite a bit of attention from investors, but the acquisi-tion of real estate is a large focus in target communities and [that] can sometimes create a wait-ing game. A franchisee in Lang-ford outside of Victoria has been looking for quite some time. Pa-tience will pay off, but they do have certain restrictions because of simi lar grocery-anchored

locations,” said Monger. “[Lease] rates are excessively high, up to $50 to $60 a square foot.”

But he added that there are good opportunities in the local marketplace and pointed to Bur-naby’s Kensington Square Plaza as an example.

“Normally, we don’t find space in a grocery-anchored site be-cause they typically prevent Clan-cy’s or other fine meat shops from getting in there.

“It’s a busy plaza with restau-rants, grocery, banks, and a real local win for the company to get in this area.”

Clancy’s has another location in Burnaby under construction, a store in Cloverdale opening in spring of 2012 and is close to completing its first outlet in Kamloops.

“A lot of what we’ve been do-ing is outside of B.C., developing

‘seed’ stores in Alberta, Saskatch-ewan and Ontario,” he said.

T he f i r s t C la nc y ’s s tore opened in Langley in 1997. Since then, another seven locations have opened in the Metro Van-couver area. In 2008, the com-pany accelerated growth through franchising.

It takes a minimum investment of from $200,000 to $500,000 to own a turnkey Clancy’s Meat franchise, including a franchise fee of $25,000.

The franchisee is also on the hook for 3% advertising and 3% royalty fees.

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

Cl

an

Cy

’s M

ea

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o.

see Subway, 23

August 16–22, 2011 Business in Vancouver 21List

Biggest non-food franchises in B.C.Ranked by number of B.C. locations in 2011

Rank '11 Company Products/services Yearfounded

Top local executive(s) Franchise feeCapital requiredStartup costs

Systemsales'10

No. B.C.franchises'11

No. B.C.locations'11

1 Pharmasave Drugs (Pacific) Ltd5685 176A St, Cloverdale V3S 4C5P: 604-574-2621 F: 604-574-0233 www.pharmasave.com

Retail drug store chain 1981 David Reston, CEO, Pharmasave PacificSue Paish, CEO, Pharmasave National

NP $325mil.1

129 129

2 RE/MAX of Western Canada1060 Manhattan Dr Suite 340, Kelowna V1Y 9X9P: 250-860-3628 F: 250-860-7424 www.remax-western.ca

Real estate franchisor 1980 Elton Ash, regional executive vice-president $5,000 - $25,000/As required/$30,000 - $215,000

$43.8 bil. 118 118

3 Jim's Mowing British Columbia1515 Pemberton Ave Suite 105, North Vancouver V7P 2S3P: 604-990-0714 F: 604-990-0724 www.jimsmowing.ca

Lawn and garden services,plus landscaping, snowremoval throughout B.C. byinsured and bonded owner-operators

1997 Dennis Reidy, president $490 + Taxes/$39,500 + Taxes/NP

NP 81 81

4 The UPS Store (formerly Mail Boxes Etc)505 Iroquois Shore Rd Unit 4, Oakville, ON L6H 2R3P: 800-661-6232 F: 905-338-7491 www.theupsstore.ca

Print and copy shops andbusiness services centres

1990 David Drucker, president and CEO $35,000/$146,150 - $179,550

NP NP 60

5 Kumon Math and Reading Centres4664 Lougheed Hwy Suite 226, Burnaby V5C 5T5P: 604-454-1001 F: 604-454-1002 www.kumonfranchise.ca

After-school math and readingprograms

1989 Lisa Kaul, president (Kumon Canada Inc.) $1,000/2

$50,0002

$29,420 - $111,5152

NP 53 54

6 Ok Tire Stores Ltd19082 - 21st Ave, Surrey V3S 3M3P: 604-542-7999 F: 604-542-7990 www.oktire.com

Tire and automotive services 1953 Greg Sims, president and CEO NP $187.9mil.

NP 51

7 Your Dollar Store with More620 Leon Ave Suite 200, Kelowna V1Y 9T2P: 250-860-4225 F: 250-860-4215 www.dollarstore.ca

Retail dollar store 1998 Russ Meszaros, co-founder and CEODavid Uzelman, co-founder

$20,000/3

$65,000/$200,000 min.

NP NP 49

8 Century 21 Canada LP1199 Pender St W Suite 700, Vancouver V6E 2R1P: 604-606-2100 F: NP www.century21.ca

Real estate office franchisor 1975 Gary Charlwood, chair and CEODonald Lawby, president and COOBrian Rushton, senior vice-president, operations

NP NP 45 45

9 First Choice Haircutters210 6465 Millcreek Dr, Mississauga, ON L5N 5R6P: 800-617-3961 F: 905-567-7000 www.firstchoice.com

Hair care 1984 Alan Storry, vice-president, franchise development $12,500 - $22.500/$100,000/$105,500 - $161,500

NP NP 39

10 Expedia CruiseShipCenters1055 Hastings St W Suite 400, Vancouver V6E 2E9P: 604-685-1221 F: 604-685-1245 www.cruiseshipcenters.ca

Travel 1988 NP NP NP NP 36

10 Sussex Insurance Agency Inc173 Forester St Suite 108, North Vancouver V7H 0A6P: 604-983-6955 F: 604-983-6933 www.sussexinsurance.com

General insurance agency 1976 Ken Armstrong, founder $75,000 - $300,000$400,000/$65,000 - $135,000

NP NP 36

12 Budget Brake and Muffler185 Golden Dr Suite 200, Coquitlam V3K 6T1P: 604-464-1239 F: 604-464-1426 www.budgetbrake.com

Automotive repair 1972 NP $25,000/Varies/Varies

NP 30 31

13 Windsor Plywood10382 176th St, Surrey V4N 4N5P: 604-581-4661 F: 604-581-8886 www.windsorplywood.com

Building materials 1969 Randle Jones, president NP NP NP 28

14 Medicine Shoppe Canada10104 103rd Ave, 1600 Bell Tower, Edmonton T5J 0H8P: 800-267-8877 F: 780-425-3980 www.futureofpharmacy.com

Pharmacy 1992 Alan Arnstein, vice-president of franchisedevelopmentSandra Gill, director of franchise development, B.C.and southern Alberta

NP NP NP 26

14 Sutton Group Realty Services Ltd1080 Mainland St Suite 206, Vancouver V6B 2T4P: 604-691-1620 F: 604-691-1640 www.sutton.com

Real estate franchise 1983 NP $20,000/$100,000 - $175,000/$200,000 - $300,000

NP NP 26

16 Wine Kitz Franchise Inc27 Scott St W, St. Catharines, ON L2R 1E1P: 800-263-4790 F: 800-453-5535 www.winekitz.com

On-premise winemakingservices and carry a largeselection of home winemakingsupplies

1992 Tim Martin, director of franchise operations $15,000/$50,000 - $100,000/$100,000 -$180,000

NP 24 24

17 Midas International Corp1300 Arlington Heights Rd, Itasca, IL 60143P: 800-621-0144 F: 630-438-3700 www.midasfran.com

Auto repair and maintenanceservices

1956 NP $20,000 - $30,000$50,000 - $100,000

NP NP 23

17 Uniglobe Travel (Western Canada) Inc1444 Alberni St Suite 302, Vancouver V6G 2Z4P: 800-864-4562 F: NP www.uniglobetravel.ca

Travel agency franchisor 1981 Hank Oostveen, vice-president, agency marketingand industry relationsMichael Raincock, vice-president, agencyoperations

Dependent on businessmodel chosen

$3 bil. 23 23

19 Great Canadian Dollar Store (1993) Ltd2957 Jutland Rd Suite 101, Victoria V8T 5J9P: 877-388-0123 F: 250-388-9763 www.dollarstores.com

Dollar stores 1993 NP $19,880/$165,000+/

NP NP 22

20 Coast Hotels & Resorts1090 Georgia St W Suite 900, Vancouver V6E 3V7P: 604-682-7982 F: 604-682-8942 www.coasthotels.com

Hotel ownership, managementand franchising

1972 Shuhachi Naito, senior vice-president 5.5% of gross roomrevenue

$208.3mil.

17 21

20 Mr Lube Canada725 Eaton Way Suite 110, Delta V3M 6S5P: 604.759.4300 F: NP www.mrlube.com

Warranty-approved vehiclemaintenance services

1976 NP $50,000/$300,000 - $550,000/$900,000 - $1,500,000

NP NP 21

22 Minuteman Press International Inc4190 Lougheed Hwy Suite 410, Burnaby V5C 6A8P: 604-435-4496 F: 631-249-5618 www.minutemanpress.ca

Printing services 1973 NP $19,500 - $45,500/$50,000 - $150,000

NP 19 19

22 Nurse Next Door Home Healthcare5511 West Blvd Suite 320, Vancouver V3M 3W6P: 604-228-4357 F: 604-228-4359 www.nursenextdoor.com

In-home caring 2001 John DeHart, co-founderKen Sim, co-founderJudy Brooks, executive directorDavid Reeve, vice-president, franchise development

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

NP 18 19

22 Rent-A-Wreck7710 5th St SE Unit 204, Calgary T2H 2L9P: 403-259-6666 F: 403-259-6776 www.rent-a-wreck.ca

Used car rentals 1977 NP NP NP NP 19

22 ServiceMaster of Canada5462 Timberlea Blvd, Mississauga L4W 2T7P: 800-263-5928 F: 905-670-0077 www.servicemaster.ca

Disaster restoration, janitorialservices, commercial andresidential carpeting

1953 Robert Brennan , president $25,000 - $68,000/Minimum $25,000/NP

NP 19 19

Sources: Interviews with above companies and BIV research. NR Not ranked NPNot provided NA Not applicable 1 - System-wide sales 2 - Only pertains to KumonCanada Inc. 3 - Plus 4% royalty fee and 0.5% advertising fee

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

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Daily business news at www.biv.com August 16–22, 201122 List

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Take Five takes on new look With around 400 coffee shops in the Lower Main-land, it takes something spe-cial to stand out from the competition.

Longtime restaurateurs and brothers Dean and Steve Punzo think they’ve done just that.

Throughout August, sev-en Metro Vancouver Take Five Café locations reopened with a new look highlighted by a revamped logo and in-store rebranding.

“We’ve changed the look and feel of the cafés, but the much-loved coffee and Ital-ian-inspired foods remain the same,” said Steve.

Having experience with consulting agencies for cre-ative and business decisions in the past, the Punzo broth-ers worked together to come up with the chain’s first re-branding since opening in 2003.

“What really separates Take Five Café from the rest of the competition is the quality of our coffee,” said Steve. “It’s a balance – not over-roasted – right through the espresso to the drip cof-fees and decaf … and the food is top notch.”

He added that while in-itially it was a challenge to explain the entire scope of the rebranding to fran-chisors, “everyone has em-braced the new look and is excited for the future of the company.”

Take Five Café opened a café kiosk at Richmond Centre in January and plans to open a ninth location at New Westminster’s Brewery

District redevelopment this fall.

The European-style cof-fee houses evolved from the Punzo family’s original business, the upscale Caf-fé dé Medici restaurant on Robson Street, a recipient of the Distinguished Restau-rants of North America as well as several Wine Specta-tor Awards. Dean and Steve started working at Caffé de Medici in the early 1980s and took over the business in 1995 when their father retired.

When asked about ex-panding Take Five outside of the Lower Mainland, Ste ve responded , “We want to grow, but grow responsibly.”

Ta ke Five f ra nchise prices were not available as of press time.

Subway opens another 600 stores in 2011In May, June and July, Sub-way franchisees have opened nearly 600 new locations in 48 countries, 42 U.S. states and seven Canadian prov-inces. That brings the total of new Subway restaurants to just over 1,200 for the year. All of the new restau-rants account for roughly 1.4 million square feet of re-tail space and provide jobs for approximately 12,000 people.

In total, 27 new franchis-es have opened in Canada this year, including B.C. lo-cations at Simon Fraser University, Victoria’s Royal Jubilee Hospital and Home Depot in Port Coquitlam. International milestones for the period include establish-ing more than 600 locations

in Brazil, 200 in Russia and opening the first Subway restaurant in Liechtenstein.

One of the most popular franchises in the world, the Subway chain now has more than 8,000 locations across the globe.

A Canadian Subway franchise requires an in-vestment of from $80,000 to $310,000, including a $15,000 franchise fee.

EmbroidMe sews up a master franchise dealEmbroidery franchise Em-broidMe has signed a mas-ter franchise agreement with serial franchisee Stu-art Erskine to develop the brand in Canada over the next few years.

Its initial focus will be in Alberta and Ontario.

“We a re ver y exc it-ed to welcome Stuart Ers-kine into the EmbroidMe system,”said EmbroidMe president Mark Johnson. “Stuart brings with him

several years of experience in the franchising industry, which will enable him to grow the EmbroidMe brand across Canada.”

Erskine is also master franchisor for Billboard Connection, an outdoor ad-vertising agency, and owns and operates sign promo-tional and advertising fran-chise Magnetsigns.

EmbroidMe hand les screen-printing and market-ing specialties. The franchise requires a total investment of between $66,000 and $187,000, including an in-itial franchise fee of $35,500 under a 35-year agreement. There is also a royalty fee. •

Compiled by Kevan O’Brien/Western Investor. West-ern Investor (www.western-investor.com) is a division of Business In Vancouver Media Group. Published monthly, it focuses on com-mercial real estate in West-ern Canada.

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

Airports on A&W expansion menuBy Glen Korstrom

White Spot Ltd. is ex-panding its Triple O’s

brand in the next month to Langara College, the University of British Col-umbia (UBC) and Brit-ish Columbia Institute of Technology (BCIT).

It already operates Tri-ple O’s restaurants at two Douglas Col lege cam-puses and its director of operations, Scott Lewis, told Business in Vancouver last week that he believes post-secondary institu-tions make great locations

for restaurants. Executives at the other major Lower Mainland-based fast-food franchisor, A&W Food Services of Canada Inc., are less keen to open res-taurants on campuses even though the chain has lo-cations at UBC, Carlton University and Wilfred Laurier University.

“We consider col lege campuses interesting but, for us, they’re non-stra-tegic,” A&W vice-president of new restaurant expan-sion Graham Cooke told BIV August 9

“The only institutional

sector that we’ve found in-teresting is airports. There’s lots and lots of traffic – far more, typically, than there would be in a university setting.”

A&W has franchised lo-cations both pre-security and post-security at the Vancouver and Calgary international airports.

Those restaurants pro-duce a much higher vol-ume than does the average A&W restaurant.

Cooke said he would jump at the opportunity to also have restaurants at the Edmonton, Winnipeg,

Toronto a nd Mont rea l airports.

One obstacle is that air-port authorities often hire one company to operate all food services.

If that company decides it ’s not interested in an A&W, Cooke said, A&W would then be out of luck.

A&W has 11 corporately owned and 729 franchised restaurants.

Approximately half of White Spot’s 65 full-service restaurants and 55 of its 60 Triple-O’s-branded restau-rants are franchised. •[email protected]

August 16–22, 2011 Business in Vancouver 23List

Trouble

BUYER’S ALERTCompanies listed below, which are not members of the Better Business Bureau, have failed to respond, as of March 18, 2011, to Better Business Bureau of Main-land B.C.’s efforts to medi-ate complaints from July 25, 2011 to July 29, 2011. In some instances, the com-pany may have taken care of the complaint and con-sidered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records can-not reveal either position. Please note that BBB mem-bers must respond to cus-tomer complaints that are brought to their attention. Source: BBB.ConsumersReward Solutions, VancouverDevon Arnold Painting, North VancouverDirect Survey Solutions, VancouverDiscount Auto Glass, Port CoquitlamDuet Introductions, SurreyE Q 3, VancouverEasyhome Ltd., KelownaEaton’s Commercial & Residential Services Ltd., BurnabyElement Electronics, VancouverEmpire Vehicle Solutions Inc., SurreyEnStar Air Conditioning Inc., RichmondExteriors Plus, KelownaFirst Choice Sunroom Ltd., KelownaFitwells For Women, CoquitlamFuzion Tek Hair Studio, New WestminsterGentleman Jim’s Limousine Service, SurreyGismondis, AbbotsfordGlobal Training Services, VancouverGreat Canadian Oil Change Ltd., CoquitlamGustafson’s Dodge Chrysler Jeep, Williams LakeH S S Wholesale, AbbotsfordImperial Parking Canada Corp., VancouverInComm Canada, Richmondinstantincomecash machine.com, North VancouverInterAction Computer Entertainment Inc., North

VancouverInternational Moves Ltd., New WestminsterKidZrock Childcare, SurreyLewis Mechanical Group Ltd., LangleyLittle Shop of Beauty, North VancouverMaster Dry Cleaners, LangleyNCO Financial Services Inc., SurreyNoir Lash Lounge Inc., VancouverNomorerack Retail Group, VancouverOnly Deals, DeltaOnni Group Of Companies, VancouverOxygenergy Electronics, RichmondRani Iron and Aluminum Works Ltd., North VancouverRollies.com, VancouverSave on Black Top (2008) Ltd., SurreySitro Technologies Inc., BurnabySon Motors Ltd., SurreySpotlight Jewellers Inc., AbbotsfordSundance Pool Spa Ltd., VernonSunny International Services Corp., VancouverSwiss European Spa, VancouverTeaching Things, SurreyTop Wraps Inc., SurreyTourism Whistler, WhistlerTriple A Roofing Ltd., SurreyTwo Small Men with Big Hearts Moving Co., SurreyWarren Audio, Maple RidgeThe following compan-ies have responded to the BBB subsequent to being published:Master Movers, VancouverMore Than Designs, Kamloops

Who’S GETTinG SUEdThese corporate writs were filed with the B.C. Supreme Court registry in Vancou-ver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court.

Defendant: Alpha Aviation Inc. Box 11, 505 Burrard St., Vancouver

Plaintiff: 0371984 B.C. Ltd.

2900–595 Burrard St., Vancouver

Claim: $500,000 for a lease extension related to the Boundary Bay Airport; $450,000 for the airport development; damages; and an order.

Defendants: Lunny Design and Production Group Inc. and Shane Lunny and Jaana Wilkie 500–935 17th Ave., Calgary and 1365 Gordon Ave., West Vancouver

Plaintiff: Canadian Broadcasting Corp. 181 Queen St., Ottawa

Claim: $262,500 for an interactive multimedia display contract; $268,711 for damages; a declaration Lunny holds the funds in a constructive trust; and an accounting.

Defendants: Microline Veneer & Forest Products Corp. and Eagle River Industries Inc. and Eagle Wood Fiber Inc. 4872A Lybarger Rd., Malakwa

Plaintiff: C.H. Anderson & Associates Ltd. 200–879 Marine Dr., North Vancouver

Claim: $242,933 for debt related to engineering services; and a builders lien for $242,933.

Defendants: IQuest Performance Inc. and Adrian Block and Richard Matthews and Kimberley Froom and Kevin Kanerva and William Cheyne and Richard Carrick 39–3363 Rosemary Heights Cres., Surrey and 4800 Lakeshore Rd., Kelowna and 5247 River Rd., Delta and 189 Glenmore Rd., Kelowna and 555 Knowles Rd., Kelowna and 5380 Lakeshore Rd., Kelowna and 3319 140A St., Surrey

Plaintiff: Bank of Montreal 1600–925 W. Georgia St., Vancouver

Claim: $210,519 against IQuest for debt; $150,000 against Block, Cheyne, Matthews, Kanerva and Froom; $42,116 against Carrick.

Defendant: Neelco Construction (1986) Inc. 1500–13450 102nd Ave., Surrey

Plaintiff: Surespan Structures Ltd. Box 48600, 1200–200 Burrard St., Vancouver

Claim: $197,342 for debt related to a supply contract for bridge work; $146,882 for extra labour; and damages for delay.

Defendant: Walter Melnyk Address unavailable

Plaintiff: Brian J. Shpak C.A. 650–1188 W. Georgia St., Vancouver

Claim: $170,000 in debt for business advice related to a hotel purchase; and damages for breach of contract.

Defendants: Pink Blossom Florist Inc. coba Pink Lotus and Satinder

Steven Dhillon 403–609 Granville St., Vancouver and 7328 145A St., Surrey

Plaintiff: Telefora Canada Inc. 250 Howe St., 20th floor, Vancouver

Claim: $153,133 for debt related to a subscription agreement for floral products.

Defendants: Alex B. Taskumis and Patrick Corsi dba Q4 AL Centro Restaurant and Q4 Group Holdings (Richards Street) Ltd. and 0682990 B.C. Ltd. formerly known as Millennium Robson Properties Ltd. 12280 Ewen Ave., Richmond and 4180 St. Paul’s Ave., North Vancouver and 780 Richards St., Vancouver and 1600–925 W. Georgia St., Vancouver and 1500–1055 W. Georgia St., Vancouver

Plaintiff: Pacific Restaurant Supply Inc. 700–595 Burrard St., Vancouver

Claim: $107,741 in the form of a declaration against the lands for restaurant equipment; and an order.

Defendants: Macquarie Mushroom Farm Ltd. and Henry Yu Chang Lau and Marina Yuk Chen Lee and Jane Doe and John Doe Addresses unavailable

Plaintiff: B.C. Hydro and Power Authority 333 Dunsmuir St., Vancouver

Claim: $104,302 for electricity diversion related to a marijuana grow-op; and damages.

Defendants: John Wynnyk and Steve Wynnyk and Kenneth Buckles 23965 Kanaka Creek Rd., R.R. #1, Maple Ridge and 26757 100th Ave., Whonnock

Plaintiff: Premier Bandwheel & Equipment Ltd. 7674 Garrett Dr., Delta

Claim: $63,200 for materials related to land improvements.

Defendants: Kitov Resources Ltd. and Rod Salfinger and Gavin Robertson and John McCordic 4360 Agar Dr., Richmond and 218–3388 Rosemary Heights Cres., Surrey and 3310 Apex Pl., North Vancouver

Plaintiff: Joda LLC 1350 Eldbridge Payne Suite 208, Chesterfield, MO

Claim: $64,568 for debt related to a Nevada judgment.

Defendant: Evidencepix Inc. Address unavailable

Plaintiff: Kulwant Malhi aka Kal Malhi 4873 Delta St., Delta

Claim: $50,000 order for a loan.

Defendant: Plaza 88 Developments Ltd.

100–1455 W. Georgia St., Vancouver

Plaintiff: Northwest Atlantic (BC) Broker Inc. 19th floor, 885 W. Georgia St., Vancouver

Claim: $44,179 for services related to a lease agreement.

Defendants: Silvermere Forest Products Inc. and John Wynnyk and Steve Wynnyk 9067 Church St., Fort Langley

Plaintiff: NDF Enterprises Ltd. 300–350 Lansdowne St., Kamloops

Claim: $40,160 for debt for land redevelopment; and a builders lien for $40,160.

Defendant: Western Seed & Erosion Ltd. 200–4769 222 St., Langley

Plaintiff: AgroSeed Marketing Inc. 1000–840 Howe St., Vancouver

Claim: $40,115 for grass seed products.

Defendants: Anna Clark and Eddy Philomena and Theodor Bosman, as executor of the will of David Allen King, deceased 8 Montizambert Wynd, West Vancouver

Plaintiff: Camelot Construction 700–555 Burrard St., Vancouver

Claim: $22,839 for property renovations; and a builder’s lien for $22,839.

Defendants: Amcon Construction Ltd. formerly known as Take Over Machinery Ltd. and Anton Hans Bader 230–19150 Lougheed Hwy., Pitt Meadows and 19629 McNeil Rd., Pitt Meadows

Plaintiff: Roynat Inc. 300–666 Burrard St., Vancouver

Claim: $20,561 for goods and equipment; and damages.

Defendants: KLM Industries Ltd. and Tymatt Contracting Ltd. and Madden Enterprises Ltd. dba The Madden Group of Cos. 25th floor, 700 W. Georgia St., Vancouver

Plaintiff: Keystone Supplies Co. 1–11090 River Rd., Richmond

Claim: $19,176 for freight goods.

Defendant: Tim Powers 447 Karp Crt., Coquitlam

Plaintiffs: JDP Construction and Josip Tolzmann 280–666 Burrard St., Vancouver

Claim: $9,135 for a construction contract; damages for breach of the contract; damages for defamation; and an injunction.

Defendants: Sococ Trading Ltd. and Min Ji Wu 63 Kenilworth Gate, Markham, ON and 138–11180 Coppersmith Pl., Richmond

Plaintiff: Roynat Inc. 300–666 Burrard St., Vancouver

Claim: $8,869 for an equipment lease; and damages.

Defendants: Canada HD Int’l Investment Group Corp. and Hong Zhang and Sijing Xie 7239 Barnet Rd., Burnaby

Plaintiff: Sen Western Wholesale Lumber Ltd. 5331 Cordova Bay Rd., Victoria

Claim: $3,806 for labour and materials; and a builders lien for $3,806.

Defendants: Republic Bicycles Inc. and John Victor Hurford and Armand Hurfurd Box 1850, 201–1365 Pemberton Ave., Squamish and 1444 Maple Cres., Squamish and 1–41340 Government Rd., Brackendale

Plaintiff: Alex Leonard Royston Hinkson, an infant, by his litigation guardian, Lara Rachael Hinkson 4–1233 Main St., Squamish

Claim: Rescission of a contract to purchase a bicycle; return of the cash deposit; and damages.

Defendant: Neel Kamal Sharma 15982 80A St., Surrey

Plaintiff: Churchill Armoured Car Service Inc. 410–1333 W. Broadway, Vancouver

Claim: Damages for conversion of funds that were to be placed in ATMs by an armoured car guard; compensation for breach of fiduciary duty, an enquiry and accounting; payment of the monies found owed to be due; damages; and an injunction.

Defendant: City of Surrey 800–666 Burrard St., Vancouver

Plaintiff: Dan Bottrill 700-1006 Beach Ave., Vancouver

Claim: Damages for wrongful dismissal from a position as deputy city manager.

Defendants: JLK Projects Ltd. and Hamza Demolition Ltd. 16639 62A Ave., Surrey and 11640 Aztec St., Richmond

Plaintiff: The Owners, Strata Plan LMS2185 5735 Hampton Pl., Vancouver

Claim: Damages for a sprinkler head that was damaged and caused flooding during the course of rehabilitation work.

Defendants: Hollingsworth Homes Ltd. and Re/Max Lionel Lorence and Russell Hollingsworth and Lionel Lorence 2410 Marine Dr., West Vancouver and 200–1455 Bellevue Ave., West Vancouver

Plaintiff: Forbes Cooper

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Daily business news at www.biv.com August 16–22, 201124 Law

Trouble

4989 Meadfeild Wynd, West Vancouver

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

Defendants: Ansell Construction Ltd. and TDM Consulting and Associated Engineering (B.C.) Ltd. and The City of Kelowna 200–270 Hwy. 33 W., Kelowna and 3948 Gallaghers Parkway, Kelowna and 1000–840 Howe St., Vancouver and 1435 Water St., Kelowna

Plaintiffs: The Owners, Strata Plan KAS 1506 and Gary Richards and Sharon Parker and Lynn Gotro and Heidi Mitchell 133 Wyndham Cres., Kelowna

Claim: Damages for construction work that damaged property.

Defendants: Linda Choy and Marianna Chu 7638–7642 Cambie St., Vancouver

Plaintiffs: Luxor Homes & Developments Ltd. and 0780012 B.C. Ltd. 7320 Lindsay Rd., Richmond and 8640 Minler Rd., Richmond

Claim: Performance of the land sale; a declaration the plaintiffs hold a purchaser’s lien.

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

Plaintiffs: 0915406 B.C. Ltd. and 388028 B.C. Ltd. 220–1501 W. Broadway, Vancouver

Claim: An order setting aside the sale of the property related to the Punjab Cloth House; an order; and damages.

Defendant: EPI Environmental Products Ltd. 801–1788 W. Broadway, Vancouver

Plaintiff: Omniplast Inc. 5350 rue Ramsay, Saint-Hubert, QC

Claim: Damages for breach of contract related to additives for biodegradable plastic bags.

Defendants: 0768723 B.C. Ltd. and Kelowna Mountain Development Services Ltd. 200–1465 Ellis St., Kelowna

Plaintiffs: David Martens and Lorraine Martens and Cecil William Goodrich and Vivian Goodrich and Daniel Gleeson and Marjorie Ellen Duff and Emily C.W. Fung and B2B Trust Addresses unavailable and 130 Adelaide St. W., Toronto

Claim: A declaration the transfer is null and void or is a fraudulent preference related to insolvent circumstances and debt; and orders.

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

33258 South Fraser Way, Abbotsford and 20275 2nd Ave., Langley

Plaintiff: Jansen Industries 2010 Ltd. 33261 South Fraser Way, Abbotsford

Claim: An order the defendants pay damages for property contamination; and damages.

Defendant: Amir Yashar Shoolestani 1906–58 Keefer Pl., Vancouver

Plaintiff: Solterra Dolce Ltd. Partnership 1000–840 Howe St., Vancouver

Claim: Specific performance of the strata purchase agreement and damages, or, a declaration the plaintiff is entitled to the $149,980 deposit, or, general damages for breach of contract.

Defendants: Mountain Air Industries Ltd. and Ronald Sim dba 21 Degrees – Mountain Air 687 E. 20th Ave., Vancouver and 9144 Emerald Dr., Whistler

Plaintiffs: Geoffrey Paul Muge and Brenda Jones 1000–840 Howe St., Vancouver

Claim: Damages for a water

pipe that froze, cracked and caused damage.

Defendants: Bob Prokopetz dba Castle Home Improvements 10647 Chestnut Pl., Surrey

Plaintiff: Thomas Millar and Linda Millar 1912 Inglewood Ave., West Vancouver

Claim: Damages for breach of contract and negligence related to a roofing contract.

Defendants: Anthony John Brogan and Leida-Marie Brogan and Christina Ann Brogan, deceased, Joseph Freddie Gagnier

and Ada Elizabeth Gagnier Address unavailable

Plaintiff: Abstract Developments Inc. 1626 Garnet Rd., Victoria

Claim: Damages for property contamination.

Defendant: E-Pro Enterprises Inc. 4599 Chatterton Way, Victoria

Plaintiff: Abstract Developments Inc. 1626 Garnet Rd., Victoria

Claim: Damages for breach of an environmental assessment agreement. •

LawsuiT of The week

B.C. company launches lawsuit over helicopter flight records Helicopter journey logs are at the heart of a lawsuit that has pit-ted B.C.-based Heliproducts Industries Ltd. against Medford, Oregon-based S.O.F. Air, Inc. and its president, Ken Batten.

Heliproducts filed suit against the two defendants in B.C. Supreme Court July 19.

According to the statement of claim, the plaintiff and S.O.F. entered into a one-year contract for S.O.F. to lease a Eurocopter AS350. Under the terms of the lease, S.O.F. would pay US$768 an hour for the number of operating hours recorded in the aircraft journey logbook.

The court document alleges that it was “an express or implied term” of the lease that S.O.F. would accurately record the number of operating hours of the aircraft, as indicated on the helicopter’s Hobbs meter, in its journey log.

The plaintiff claims S.O.F. neglected and failed to return the journey log to the plaintiff and instead returned a redacted copy of the log, on which aircraft operating hours were redacted or blacked out.

When Heliproducts complained about the redacted journey log, the court document alleges that S.O.F. and Batten provided the plaintiff with a fraudulent journey log, “in which they pur-posely understated the operating hours of the aircraft with a view to deceiving the plaintiff as to the number of operating hours of the aircraft.”

The suit also alleges that S.O.F. didn’t return the aircraft to the plaintiff in the same condition it was received in, necessitat-ing $44,457 in repairs.

Heliproducts is suing for general and special damages, a declaration that the plaintiff is entitled to the return of the journey log and an order requiring that it be returned.

At press time, no statement of defense had been filed.None of these allegations has been proven in court.

Promote your corporate giving philosophy and the non-profits you support to B.C.’s business leaders

Business In Vancouver Media Group, publishers of Business in Vancouver newspaper, Western Investor and more than a dozen business-related magazines, are delighted to launch an exciting new print and digital publication called Giving Guide – Regional Philanthropic Opportunities. This informative glossy, full-colour magazine will showcase the diverse range of non-profit associations and the organizations that so generously support them here in B.C.

Giving Guide provides both sponsors and non-profits with a great opportunity to share their story with the region’s business leaders. Non-profits play a huge role in improving the quality of life of residents throughout the region. This new essential reference tool – with year-long presence in print and online will showcase a non-profits compelling mission, progress, governance and many other initiatives and encourage other business leaders to support non-profit associations in our region.

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August 16–22, 2011 Business in Vancouver 25LAw

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

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

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PeoPle on the MoveEmail your For the Record information to: [email protected]. Please include a high-resolution, colour headshot where possible.

•AccountingNancy Harris has been appointed vice-president and general manager of Sage Simply Accounting. She was previously COO at ESO Solu-tions and Asure Software.

•AerospaceJohn Graber has been appointed president, helicop-ter services, at CHC Helicop-ter, replacing interim president Scott Pinfield. Graber was previously president of ABX Air and MRO AAR Aircraft Services and general manager and senior vice-president of operations at ATA Airlines.

•EducationGreg Anderson has been appointed dean, applied research, at the Justice Insti-tute of BC, replacing Carol Amaratunga, who will con-tinue as research associate. Anderson was previously chair and professor of kinesi-ology and physical education at the University of the Fra-ser Valley.

•FinancePaula Martin and Linda Morris have been appointed adviser to CEO Tamara Vrooman; and senior vice-president of marketing and

communications, respectively, at Vancity. Martin was previ-ously senior-vice president of member engagement at Vancity. Morris was previ-ously CEO of the Canadian Breast Cancer Foundation, BC/Yukon, deputy minis-ter in the public affairs bur-eau for the BC Government, vice-president, communica-tions and community engage-ment, for Vancouver Coastal Health and director of public affairs for the Vancouver Port Authority.

•GeneralScott McFie and Martin Moran have been appointed director, commercial busi-ness development, West-ern Canada, and director of business development, Western Canada, respect-ively, at FirstOnSite Restora-tion. McFie was previously senior vice-president, inter-national business develop-ment and sales, at ClaimsPro Inc. Moran was previously a leader and adjuster with Cun-ningham Lindsey.

Tim Courtney has been appointed vice-president of commercial insurance at ICBC. He was previously vice-president at Markel Insurance and vice-president of under-writing at Zurich Canada.

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

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

•MediaKerry MacDonald has joined Business in Vancouver as advertising sales manager. He was previously regional man-ager at Shaw Cable.

•ResourcesEira Thomas has resigned as director of Stornoway Dia-mond Corp. and chair of its board. She was a founder of the company and previ-ous CEO. Tony Walsh has been appointed chair. He is president, CEO and a director of Sabina Gold & Silver Corp.

and is a director of Stornoway. He was previously president and CEO of Miramar Min-ing Corp.

Catherine Feore has been appointed vice-president, marketing, at Adroit Resour-ces Inc. She was previously national expert in urban policy to the European Com-mission, head of office for Greater Manchester and principal at Orpheus Pub-lic Affairs. James Cross has resigned from the board and as vice-president, corporate development.

Ryan Ptolemy has been appointed CFO of United Silver Corp. Ptolemy is CFO and corporate secretary of Aberdeen International Inc. and CFO at Dacha Strategic Metals Inc., Alder Resources Ltd., Belo Sun Mining Corp.

and Rodinia Lithium Inc.

Anthony Floyd and James C h a p m a n h a v e b e e n appointed to the board of Expedition Mining Inc. Floyd is a director of Inca Pacific Resources Inc. and Toro Resources Corp. and was previously president of Inca Pacific and a founding member of Lumina Copper Group. Chapman is a director of Golden Cross Resources.

Paula Rogers has been appointed to the board and named chair of the audit committee at Timmins Gold Corp. She is CFO of Castle Peak Mining Ltd. and was previously vice-president and treasurer, at Goldcorp Inc. and treasurer of Wheaton River Minerals Ltd.

Augusto Baertl has been

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

hats offBusiness in Vancouver wel-comes submissions from local small businesses and large cor-porations alike that demon-strate examples of corporate philanthropy and community involvement in the Vancouver area. High-resolution images are also welcome.

Sirona Biochem Corp. donated $25,000 to the Can-adian Diabetes Association’s proud supporter program.

Pharmasave and Chevron donated $21,000 and $15,000, respectively, to the Canadian

Daily business news at www.biv.com August 16–22, 201126 For the record

Careers• www.employmentinvancouver.com • E-mail: [email protected] • Tel: 604-688-8828 • Fax: 604-669-2154

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

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

Kerry MacDonald joins Business in Vancouver as advertising sales manager

Tim Courtney is vice-president of commercial insurance at ICBC Loyd McNicol, director, Lohn Foundation, and Jackie Murray,

catheterization lab manager, Royal Columbian Hospital

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

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Careers• www.employmentinvancouver.com • E-mail: [email protected] • Tel: 604-688-8828 • Fax: 604-669-2154

+ a s s o c i a t e s i n c .

The BC Safety Authority (BCSA) delivers one of the most comprehensive, cost-recovered technical public safety systems in North America. As the Province’s delegated, non-profi t authority, the BCSA mandates the safe installation and use of technical equipment. With a commitment to

collaboration, fairness, consistency and a risk-managed approach to regulatory oversight, the BCSA promotes safety through research, education, issuance of permits and licenses, development of policies and safety standards, and the monitoring and enforcement of compliance to safety standards across a wide variety of industries and sectors. The BCSA maintains a central offi ce in New Westminster and delivers services from 28 regional and community offi ces located throughout the province. Recognized as one of the top 100 Employers in Canada, the BCSA employs approximately 300 persons.

The BCSA wishes to attract a proven leader to the position of VP, Corporate Services/CFO. Based in New Westminster, this role reports to the CEO and works collaboratively with other members of the executive team, the Board of Directors and a wide array of external stakeholders. The position guides a team of fi ve direct reports. The role is actively involved in formulating and executing corporate strategy and has key accountabilities for risk management, fi nancial forecasting, planning and reporting, asset management, budgets and controls, and information technology.

The ideal candidate is a university graduate and strategic fi nancial professional with a recognized accounting designation and at least 10 years of progressive management experience in complex organizations. The candidate must have experience in leading change and in working with Finance and Audit Committees of Boards of Directors. The candidate must have a track record of providing effective and integrative leadership in asset and risk management, fi nance, management and external reporting, fi nancial controls, asset management and information systems. A fl exible thinker with the ability and courage to contribute and to respectfully confront to move issues forward with transparency, the ideal candidate is a decisive team player who enjoys coaching and mentoring others.

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[email protected] We thank and acknowledge all applicants and will proactively contact those selected for interviews.

Cancer Society. Money was raised during the society’s Daf-fodil Campaign in April.

Coast Capital Savings Credit Union donated $15,000 to Jun-ior Achievement of British Columbia in support of teach-ing young people financial literacy through business edu-cation programs.

The Chris Spencer Foundation donated $5,000 to Big Sisters of BC Lower Mainland in support of the Go Girls! Healthy Bodies, Healthy Minds program, which encourages physical activity, healthy eating and the develop-ment of a positive self-image among girls aged 11 to 14.

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

Legal Assistant The Tsawwassen First Nation has an exciting opportunity for a full time regular Legal Assistant to assist with litigation and solicitor files, prepare documents and other correspondence, filing, arrange meetings and travel or conference attendance, prepare expense reports, access and monitor document data bases and collate documents, maintain “bring-forward” system, and other duties as required.

Requirements: Legal Assistant Certificate, 2-3 years experience, working knowledge of Word 7, Excel, Publisher, Summation or Ringtail software, teamwork skills, familiar with “bring-forward” systems, and able to work 8:30 – 4:30 p.m.

Submit cover letter and resume by August 29, 2011, to: Saira BradleyHuman Resource Manager 1926 Tsawwassen DriveTsawwassen BC, V4M 4G2Fax: 604-943-9226E-mail: [email protected]

Short-listed applicants will be contacted for interview.

August 16–22, 2011 Business in Vancouver 27for the record

Cartoon by riCe

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letters

Clean coal and more public relations fictionIf you’re like me, then you’ve probably seen one too many of those TV ads that talk about how “clean coal” is supposedly powering America.

In truth, there’s no such thing as “clean coal” and no homes or businesses in the united States or Canada are being powered by “clean coal.”

Environmental experts from around the world all agree that coal is the dirtiest fuel source one can use to produce electricity.

Not only is coal the dirtiest of all fuels, it’s also the biggest source of greenhouse gas emissions like carbon dioxide, which cannot currently be captured and stored in an even remotely cost-effective way.

So until the emissions and pollutants generated by burning coal can be captured and stored safely, which is looking more and more doubtful every day, no one should be claiming that coal is a clean energy source because it is not even close to being clean.

Sandra Robinson, Maple Ridge

City bike-lane report doesn’t go far enough to protect small businessesI’m choking back the urge to say “I told you so” to Vancouver city councillors who thought that taking out parking, restricting turns and erecting concrete barriers to cre-ate a bike lane on Hornby Street would not hurt businesses.

The bike-lane impact study commissioned by the city found merchants on Hornby have experienced a sales decline of 10%. The total loss in sales attributed to the Hornby and Dunsmuir bike lanes is $2.4 million. It cost about $4 million to build the lanes.

The report puts a rosy spin on the losses by referring to them as “moderate.” How many people would describe a 10% hit to their incomes as “moderate”?

The report points out that there were some “hot spots” where businesses fared worse. How much worse is left to the imagination.

The report includes some sensible recommendations. It suggests the city look at flexible approaches to sharing road space such as using automatic bollards that can be raised and lowered to establish a separated bike lane or to accommodate parking, depending on the circumstances.

Better consultation with affected parties before and after traffic changes are made is another suggestion.

As sensible as these suggestions are, the report sidestepped the most import-ant question: what do you do when a public project has a serious negative impact on someone’s livelihood? While each Vancouver taxpayer footed a bit of the $4 million to build the lanes, is it fair to ask a small group to pony up a significant portion of their take-home pay?

The report goes as far as suggesting “that mitigation strategies be decided before construction begins.” That’s not far enough.

I have a challenge for the mayoral candidates for Vancouver: be bolder than this report. Develop a set of guidelines to be followed for projects that disrupt business activity for more than a month. The guidelines should include estimating the costs to small-business owners and compensating them for a year’s worth of sales losses or paying for moving costs. In other words, develop a plan that takes into account the full costs of these projects instead of loading much of the burden onto hardworking men and women who run small businesses and have families to support.

Seattle had a great model for its light-rail construction that included similar provi-sions. Mayor Gregor Robertson is familiar with it because he suggested it would have been the right approach when Cambie businesses suffered during construction of the Canada Line. How would such a model have changed things on Hornby?

To keep costs down, council would have had a much stronger incentive to consider alternatives that would not have had such big impacts on business – a residential street, a Minneapolis-style lane that preserved parking and put the bike lane between the curb and the parked cars or the bollards suggested in the bike-lane impact study.

Some will argue that compensating small business is too expensive. If that’s true, it suggests the bike lanes weren’t really worth it in the first place.

Laura Jones, senior vice-president, research, economics and Western Canada,

Canadian Federation of Independent Business

Public Offerings

TimoThy REnshAWSelf-government no guarantee of economic self-sufficiency

the First Nations enterprise en-gine has been jump-started in

various areas of the country, but there are still miles to go before it’s firing on more than a couple of cylinders.

Bright spots abound. The most recent examples include the Kwantlen First Nation’s launch of the Seyem’ Qwantlen Group of Companies (“Rise in aboriginal enterprise” – issue 1132; July 5-11) and last week’s BC First Nations Leadership Council announce-ment of a strategy to cultivate stronger relationships with China.

But not all is clear skies on the native business frontier. Native so-ciety, especially on reservations, needs to undergo a major cultural shift from dependency to self-re-liance if the free enterprise seeds sown now are to bear more than occasional fruit.

That’s not going to be easy.A recent Frontier Centre for

Public Policy report underscores that reality.

The Nisga’a Treaty, Self-Gov-ernment and Good Governance: the Jury is Still Out assesses the impact of the controversial agree-ment B.C. signed with the Nisga’a 13 years ago.

It claims to be the only such as-sessment thus far of how the treaty and its allocation of self-govern-ment to the band has affected social and economic realities in what has aspirations to be an independent country within Canada.

It’s not surprising that no

measurement of the treaty’s impact has been done elsewhere. Manage-ment accountability, after all, re-mains in short supply on too many of Canada’s native reservations.

As the study quotes former BC Liberal leader Gordon Gibson: “the Nisga’a treaty is held out as an example of the right way to settle Indian claims, and yet we simply do not know how it is working after seven years and cannot trust any of the three governments involved to tell us of problems.”

The Frontier Centre study mines much of its information from ex-tensive interviews with Nisga’a band members.

Insights from interviewees in-clude misgivings about the new Nisga’a government and the con-tinuation of old-style tribal nepo-tism that inter-marries bloodlines, business and politics.

The study also found what Clint Davis, CEO of the Canadian Council for Aboriginal Business, previously pointed out to Public Offerings (“Job 1 on native reserves: Build business-management skills” – September 28-October 4, 2010; issue 1092). As with many other

native bands in Canada, the Nisga’a nation needs help in training its people in business basics. Without those, it will remain ill-equipped to take advantage of the opportunities in resource development and other enterprise that can free its members from what author and Tsimshian Nation member Calvin Helin (Dances with Dependency) calls Ot-tawa’s welfare trap.

Concerns were also expressed about “the preparedness of Nisga’a citizens for income taxation,” which is scheduled to come into effect in 2013. Tax freedom day everyday is apparently seen as a native birth right in Canada.

But one of the report’s most un-settling revelations is Ottawa’s view that the Nisga’a will likely never be self-sufficient.

According to the study’s con-versations with the treaty manager for B.C. at Indian and Northern Af-fairs, self-sufficiency “may never be achieved.”

“In practice,” write the study’s authors, “the federal government apparently lacks a written plan for self-sufficiency, and it did not con-duct any risk assessments for the Nisga’a treaty.”

That underscores the destructive dual-dependency factor in Can-ada’s native enterprise equation.

If no one in a native band, espe-cially the “independent” nation of Nisga’a, is ever ultimately going to be held accountable for ensuring its people become economically self-sufficient, it will never happen.

That’s a grim prospect for more than just Canada’s natives. •

Timothy Renshaw ([email protected]) is the editor of Business in Vancouver. His column appears every two weeks.

As with many other native

bands in Canada, the Nisga’a

nation needs help in training

its people in business basics

Daily business news at www.biv.com August 16–22, 201128 Comment

Public EyE

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

The provincial govern-ment is on track to

spend more than $100,000 to renovate the website it uses to put its public re-lations material onto the Internet.

A citizens’ services min-istry spokesman defended the renovations as being part of the Clark admin-istration’s commitment to open up government, not-ing they came in “well under budget.” But New Democrat House leader John Horgan is blasting that project as an unnecessary expenditure.

The renovated site – which was launched in mid-March – is supposed to provide reporters with a “one-stop” 24-7 shop for the government’s “news, fea-ture stories, videos, audio, photos, live-streaming and social media.”

According to records obtained by Public Eye via a freedom of informa-tion request, Pennsylva-nia-based After6 Services LLC received $55,441 to set

up the software powering the new “Digital Hub BC Newsroom.”

Another $43,085 will go to Liberal-connected Back-bone Technology Ltd. That includes the $16,685 the company has already re-ceived to design the hub and another $2,000 per month to host the site.

Backbone Technology is the same firm that has worked for the BC Liberals since 2001, setting up a pri-vate intranet for its execu-tive as well as the party’s website.

The company made news

last month when it was dis-closed the government had secretly given it a $52,746 contract to develop its har-monized sales tax (HST) in-formation website.

Li ke t he HST work, Backbone’s digital hub con-tract would usually have been awarded following a competitive process.

But internal government guidelines allow that pro-cess to be circumvented if only one contractor is quali-fied to do the work, which is what happened in this case.

The citizens’ services spokesman also said Back-bone got that work, which started in early March, be-cause the government didn’t have the time to go through a competitive process.

And, in any case, the company “delivered this project on time and to a high standard of quality.”

The spokesman said the new website will help “families and businesses … quickly find information, photos and videos about

what government is doing to serve them,” while re-sponding to the media’s “ e v o l v i n g n e w s r o o m requirements.”

In response Horgan said, “Quite honestly, the fact they’re characterizing this as in the interest of families is just absolutely laughable.”

He added, in a reference to Premier Christy Clark’s ubiquitous commitment to put families first, “It speaks to taking government mes-saging to the level of the ab-surd. And it’s clearly absurd to say that families are going to want to know what ob-scure cabinet ministers are saying while spending pub-lic money trying to curry favour.

“I think if I had $100,000, I would be putting it toward autism services, I would be putting it toward a whole host of programs that have been cut or eliminated by BC Liberals rather than finding ways to make them look family friendly on the Internet.”

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

of using timelines as an ex-cuse to circumvent.” •

Sean Holman ([email protected]) is editor of the online provincial political news journal Public Eye (www.publiceyeonline.com).

Canada needs simpler taxes, CGA-Canada saysCanada’s overly complex tax system needs to be simplified, according to the Certified Gen-eral Accountants Association of Canada (CGA-Canada).

The association’s recently released study – The Need for Tax Simplification: A Challenge and an Opportunity – highlights ways the current tax system

is costing consumers, busi-nesses and the economy both time and money in compliance requirements.

Few attempts to simplify the tax system have been made since its creation in 1917, and the study points to the need for a review of both the personal and corporate income tax systems. Wednesday, August 10

BUSINESS TODAY

daily online edition

BUS NESSLEADERSTOURNAMENT

Registration now open!Join us on August 23 for the inaugural Business

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

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

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“Quite honestly, the fact

they’re characterizing

this as in the interest

of families is just

absolutely laughable”

– John Horgannew Democrat House leader

August 16–22, 2011 Business in Vancouver 29comment

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Breakfast, Luncheon, Dinner MeetingsProfessor Stephen ToopeSeptember 14, 2011 , 1 1 :45 AM: Professor Stephen Toope, President & Vice-Chancellor University of British Columbia. $69 members and guests/$96 future-members (+HST). The Fairmont Waterfront, Waterfront Ballroom, 900 Canada Place Way. Vancouver, BC. reservations@

b o a r d o f t r a d e . c o m . w w w.boardoftrade.com.

conferences, conventions, traDeshows20/20 SMART Session: Market Research and AssessmentAugust 18, 2011 , 8 :00 AM: Effective market research will increase the probability of a successful product launch. This session will introduce tools and techniques for conducting effective market research and

assessment in the product development process . $25 members/$35 non-members. Hampton Inn & Suites, 19500 Langley Bypass (Route 10). Surrey. Kimberly Hall: 604-713-7809, [email protected]. http://bc.cme-mec.ca/.

The World MoneyShow VancouverSeptember 19, 2011, 8:30 AM: Learn how to best position your portfolio for profit in 2011 and beyond. As this new era of investing unfolds, smart investors know it’s imperative to stay informed and educated. Free admission. Vancouver Convention Centre, 1055 Canada Place. Vancouver. 800-970-4355. http://www.moneyshow.com/tradeshow/vancouver/w o r l d_ m o n e y S h o w /m a i n .asp?scode=023199.

APEGBC Annual Conference & AGMOctober 13, 2011, 8:00 AM: J o i n u s a s w e c e l e b r a t e a c c o m p l i s h m e n t s i n t h e professions of engineering a n d g e o s c i e n c e . A s B C ’s premiere engineer ing and geoscience event, the Annual Conference and AGM are sure to offer participants valuable opportunities to network with leading professionals in these industries. Prices vary. Delta Grand Okanagan Resort and Conference Centre. Kelowna, BC. Shirley Chow: 604-412-4865, [email protected]. http://www.apeg.bc.ca/ac2011/.

courses, workshops, seMinarsSharePoint 2010 as a Records Management and Retention SolutionAugust 19, 2011 , 1 : 30 PM: Attend a free seminar on how SharePoint 2010 can be used for records management and retention. The presenter is Marcel Roy, SharePoint Specialist and Records Manager. Free. BCIT Downtown Campus, RM 281, 555 Seymour Street. Vancouver. [email protected]. www.tracrecords.ca/events.

Canadian Securities Course (CSC)September 8, 2011, 8:00 AM: Be qualified to apply for licensing as a mutual funds salesperson. Sign up for the CSC at Ashton College. Contact an Admissions Adviser now. Ashton College. Vancouver. 604-899-0803, [email protected]. www.ashtoncollege.com.

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

CTT+ Train the Trainer CourseSeptember 19, 2011 , 8 :30 AM: Anybody who needs to train groups of people in an effective and efficient manner can benefit from this course. Perfect for those looking to show instructional presentation skills for their MCT designation. $995/person. 555 Seymour Street. Vancouver. Bart Simpson: 888-480-1629, [email protected]. www.trab.com.

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

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

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

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

Communicating Sustainability for Awareness, Accountability and ActionNovember 25, 2011 , 9 :00 A M : T h i s co u r s e p rov i d e s tips and tools for effective communications practice and examines how sustainability is perceived by the public. $600. 515 W. Hastings St. Vancouver. Joshua Randall, 778-782-5254. http://www.sfu.ca/city/sust906.htm.

HR Metrics Benchmarking Service - Nov Demo & OverviewNovember 30, 2011 , 9 :00 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. Complimentary. Online. Liz Whalley, Metrics Specialist, [email protected]. http://www.bchrma.org/content/events/ls/details.cfm?EventID=035-253.

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

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

goLf tournaMentsT.I.P. Invitational Golf TournamentJuly 26, 2011, 11:00 AM: Swing! At the Sixth Annual Tourism I n d u s t r y P a r t n e r s ( T I P ) Invitational Golf Tournament. All proceeds from this event will foster future generations of tourism professionals through scholarships and bursaries to colleges and supporting organizations. Please see our website for prices. Fairmont Chateau Whistler Golf Club. Whistler. [email protected]. www.tipgolf.ca.

Business Leaders Golf TournamentAugust 23, 2011 , 12:00 PM: Play golf with the Vancouver business community including senior executives, deal-makers and professionals involved in corporate growth, development, and mergers and acquisitions. A full day event including golf, dinner and great prizes! $175 BIV subscribers, ACG or TMA members/$200 general public. Univers i ty Go l f C lub , 5 185 University Blvd. Vancouver. Azadeh Hollmann: 604.608.5197, [email protected]. https://www.eplyevents.com/BusinessLeaders GolfTournament. •

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Daily business news at www.biv.com August 16–22, 201130 DatebookGuarantee the publication of your listing for $50 per issue (plus hst). 604-608-5189 or [email protected] www.bivdatebook.com

you’re ultra-conservative now.“What gives us optimism is Asia,

but in terms of the U.S. I still think we need to be really careful and cau-tious that we don’t base too many things we’re going to do on a quick recovery.”

Kayne’s history with Canfor dates back 32 years, and his experience in the industry is even longer.

At the age of 15, the North Vancou-ver native went to work as a weekend maintenance employee at a sawmill in New Westminster.

After finishing forestry and busi-ness administration programs at the British Columbia Institute of Tech-nology, Kayne had his pick of in-dustry-related jobs throughout the province. But he wanted to work for Canfor, where his uncle had been chief forester.

A planer mill elsewhere in the province had offered him a job, but he held off on giving his answer hoping that Canfor would call back with a position. In a moment of characteristic gutsiness, Kayne phoned Canfor and delivered an ultimatum.

“I said, ‘Look, I’ve had three inter-views; if you don’t give me an answer I’m going to go.’”

He was hired on the spot and be-came Canfor’s first marketing trainee in June 1979. But more than two dec-ades would pass before Kayne would realize that a real opportunity existed for B.C. lumber in a market that, up until the turn of the millennium, was non-existent: China.

“It really started to take shape even more in the middle of 2004 and 2005 when we saw the U.S. [housing] mar-ket go to unbelievable levels,” he said. “Really, we knew it just couldn’t last like that.”

At the time, U.S. housing starts had topped two million units per year. By the time the Great Recession hit in the fall of 2008, that number had dropped to 777,000 units per year, dipping as low as 477,000 in April of 2009.

Housing starts continue to lan-guish but, fortunately for Canfor, Chi-nese demand for lumber has displaced some of that demand.

That’s not to say the company

glided through the economic storm with ease. Kayne’s predecessor, Jim Shepard, curtailed mills, cut executive pay and sold the company jet to help Canfor ride out the downturn.

Meantime, Kayne was making in-roads in Asia where he hoped to stake out a new future for the company.

It’s paid off. As of February, Canfor was ship-

ping the equivalent production of four sawmills to China. In May, the value of lumber exports to China surpassed the U.S. for the first time in history.

Kayne believes there’s a lot of demand in Asia that has yet to be tapped. “China has the opportunity to double, [and] Japan, which we don’t talk near enough about, [is a] huge opportunity.”

The company is so keen to main-tain and grow its foothold in Asia that it has partnered with competi-tors West Fraser Timber (TSX:WFT), Tolko Industries and Western Forest Products (TSX:WEF) and built a ship to transport products to Asia.

David Emerson, a past CEO of Canfor, said Kayne’s focus on

diversifying the company’s markets would be key to its long-term surviv-al. “If you do not have a really good sense of what the seismic shifts are in the global economy … then I think you’re going to end up selling your business to somebody that does,” said Emerson, who is also a former federal cabinet minister.

But China isn’t a cure-all for Can-for or the B.C. lumber industry’s problems.

Fortunately, Kayne knows that, which is why he’s focused on ensur-ing the company has the proper mix of trees to continue feeding its mills.He also committed to a $300 million capital plan to modernize Canfor’s mills. That way, when the U.S. market eventually returns, Canfor will have the fibre and technology on hand to flood the market with lumber and roll out the welcome mat for the return of the good times.

“It’s got a long way to go,” said Kayne. “But, absolutely, I do believe it can be there again right near the top.” •[email protected]

Ric

ha

Rd

La

m

Don KayneBy Joel McKay

Root sellerDon Kayne is banking on his sales expertise to open

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

After 32 years of behind-the-scenes wheeling and dealing, Don

Kayne has stepped into the limelight to navigate one of B.C.’s largest lum-ber producers out of a mammoth mar-ket slump.

It won’t be easy.After all, the 53-year-old execu-

tive will have to stickhandle a bushel of touchy and complex issues, includ-ing the oft-blood-boiling U.S.-Canada softwood lumber agreement, a record slump in the U.S. housing market, the aftermath of the pine beetle infestation and access to new markets abroad.

The list of challenges stacked against Canfor (TSX:CFP), not to mention every other B.C. lumber producer, is enough to make even the most stoic business leader tuck tail and run.

Some have. But Kayne, who’s just as comfort-

able jawing about the complex nature of the current lumber market as he is about the day’s weather, plans to stick it out in forestry.

From where he’s sitting, the market has nowhere to go but up.

“The upside in this industry is huge,” said Kayne, who was appointed Canfor’s latest president and CEO in May. “Every other resource except for lumber has capitalized based on the global demand picture changing, and I think lumber is really primed for that future.”

His comments could seem overly optimistic to those who have watched B.C.’s most storied industry fade into the sunset in recent years.

But for those who have been watch-ing a little closer, Kayne could be on to something. His company was one of the first to tap new demand for B.C. lumber in China a decade ago.

In the last few years, the Asian jug-gernaut’s demand for B.C. lumber used in concrete forming has skyrocketed. Should that demand continue, Kayne believes B.C.’s forestry sector could boom once the U.S. housing market re-covers. The trick is getting his company ready for the next super-cycle, knowing the U.S. is still 18 to 24 months away from a recovery.

“This industry is so tough,” said Kayne. “If you were conservative before,

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

Mission: To transform

Canfor into a top quartile

performer

Assets: 32 years of

forestry experience and

a knack for sales and

marketing

Yield: Strong ties with

Chinese customers and

ever-growing sales into

Asia

August 16–22, 2011 Business in Vancouver 31Profile

Daily business news at www.biv.com Business in Vancouver August 16–22, 201132

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Business in Vancouver 2011-08-16

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