Business in Vancouver 2011-09-20

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Business in Vancouver Issue 1143

Frack attack: tria donaldson and other environmentalists target shale gas industry 3

b.C. retools fiscal plan in wake of hst vote 4

Canadian innovation driving cross-border m&a action 8

albertans drawn to b.C.’s affordable island cottages 10

e-books and education: no more pencils, no more books 11

how to tap student talent pools when school is back in session 13

bike tire recycling rolling 14

ladner on the growing social fallout from income inequality 32

demands undermining integrity of teachers’ union, says CFib 33

Warren Roy and global Relay are mining the rich vein of opportunities in north america’s data storage business 35

INSIde

Biggest sales and management firms in B.C. 16

Biggest mines in B.C. 20

Merchants in B.C. might be successful in off-loading the rising costs of accepting credit cards from consumers, but that shift would come with a heavy marketplace price

By Richard Chu

Canada’s newest Competition Bur-eau commissioner hasn’t been

afraid to kill sacred cows in big business over the past couple of years.

Since she was appointed to head the bureau in 2009, Melanie Aitken has: •forced major changes in telecom marketing (in her case against Bell Canada);•helped preserve airline competition by preventing an Air Canada-United Air-lines joint venture; and•provided Canadians with more op-tions for selling homes by forcing the Canadian Real Estate Association to open up its Multiple Listing Service to homeowners.

But Aitken’s Competition Tribunal case against Visa and MasterCard is already running into stiff opposition in B.C. from the two parties she’s aiming to protect. •

Credit card bill battle onfull diSCloSure

Business in Vancouver special report – 6, 7

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Card game: plum owner ed des Roches brandishing monthly tallies of transaction and other fees his women’s fashion chain has to pay for accepting credit card payments from his clientele

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Quarterly News Report

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Resource industry news, analysis and insights - 17-24Karina briño: the new face of mining in b.C. – 17

loCal. BuSineSS. intelligenCe.September 20–26, 2011 • Issue 1143 BIV.COM $3.00

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contentSColumnistsCascadian Connections 8

Michael Orbach/Kushal Saha

Real Estate Roundup 10 Peter Mitham

BizPharmacy 13 Cyri Jones/Ivan Surjanovic

Sustainability 14 Nina Winham

Mining 21 Gordon Chambers

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next iSSueFull DiSCloSureOnsite issues building: Business in Vancouver launches an investigation into construction site theft and its impact on business

newS

Lobbying for action: It’s been nearly a year and a half since new legislation created fines of up to $25,000 for B.C. lobbyists who don’t publicly register their activities. But thus far no penalties have been handed out, and only 1.5 employees are on the job investigating the sector for non-compliance

TeChnologyThree Metro Vancouver companies are spearheading the development of new technologies aimed at fighting cancer

Biggest financial planning firms in Metro Vancouver

Vancouver businessman to buy Dallas Stars

PNE workers set to strike over wages

Salmon farmers blamed for sea lion deaths

Site C to have impact on private power sector

B.C. releases new wood-frame construction guide

Government’s business plan for Site C flawed

Burrard Street 11th priciest for offices in North America

FortisBC to lower natural gas prices

Nexterra inks contract for US Veterans Affairs heat system

Business booming at Nat Bailey stadium

Feds fund B.C. sturgeon industry

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Now Open in Calgary!

Province unveils new shale gas rulesEnvironmentalists blast government’s attempt to improve transparency around controversial “fracking” drilling techniques

B.C. uranium junior calls hostile bid from major producer “predatory”But Cameco believes Vancouver’s Hathor Exploration has over-valued its flagship project and underestimated its cost

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By Joel McKay

Environmentalists haven’t wast-ed any time attacking the

provincial government’s efforts to increase transparency around nat-ural gas fracking in northeast B.C.

Earlier this month, Premier Christy Clark announced a new online registry that would allow the public to find hydraulic fracturing (fracking) well sites with the click of a mouse, and trace the chem-icals that are used to extract the natural gas from B.C.’s tight rock formations.

“Now all British Columbians will have access to the information they need to make informed decisions about the industry’s operations,” Clark said in a statement.

But the Wilderness Commit-tee, a citizen-funded environment-al protection organization, said the new website doesn’t ensure gas companies aren’t contaminating groundwater.

Wilderness Committee cam-paigner Tria Donaldson called on the government to ban all hydraulic fracturing activities until there’s a

By Joel McKay

Vancouver’s Hathor Ex-ploration (TSX:HAT)

has resoundingly rejected a hostile takeover bid target-ing its Roughrider uranium deposit, but critics are be-ginning to question if the company has over-valued

better understanding of how they could affect the environment and human health.

She pointed to jurisdictions such as Quebec, New York and New Jer-sey, which have all instituted some type of ban or moratorium on hy-draulic fracturing activities.

“There’s very, very rigid regula-tions coming in all around the world and in B.C. we’re talking about put-ting up a website,” Donaldson said. “We’re just barely skimming the surface.”

Hydraulic fracturing relies on a combination of water, sand and chemicals that are pumped into deep, tight and shale rock formations.

The combination fractures the rock, releasing the gas contained therein, allowing it to be drawn back to the surface.

Environmentalists have blamed the process for contaminating groundwater, claiming in some areas that tap water has become so chemically laced it can be set on fire.

In April, U.S. Democratic Con-gressmen released a comprehensive

the flagship project.Last week, during a con-

ference call with investors, Hathor president and CEO Mike Gunning blasted Ca-meco’s (TSX:CCO) $520 million bid for his com-pany, calling it “predatory and opportunistic.”

C a m e c o , C a n a d a ’s

inventory of the chemicals used by hydraulic fracturing companies, the first report of its kind.

It detailed that companies were “injecting millions of gallons of products that contain potential-ly hazardous chemicals, including known carcinogens.”

Although Donaldson conced-ed that the industry in B.C. has yet to report an incident of harm to groundwater, she believes it’s only a matter of time.

“Fracking in B.C. is relatively new as an industry, so I think we’re really in the early stages of what the impact will be,” she said.

The B.C. Ministry of Energy and Mines said in a statement to Business in Vancouver that there is “a considerable amount of inaccur-ate information being circulated about hydraulic fracturing, par-ticularly in relation to B.C., and this website will provide clear and accur-ate information.”

Although all current fracking activities will be published on the website, the ministry said the indus-try would not be required to disclose the location of future well sites.

largest uranium producer, launched an unsolicited all-cash bid for Hathor in Au-gust, valuing the company at $3.75 per share.

The Vancouver com-pany’s flagship Roughrider project made waves in ur-anium circles after an up-dated estimate doubled its

When asked if the website would also disclose the location of historic well sites, the ministry said it was a “possibility” but not the intended purpose of the registry.

For the industry, the new disclo-sure rules are just business as usual.

Encana (TSX:ECA) spokesman Alan Boras said his company has been disclosing well-site activities and chemical ingredients used at

sites in the U.S. for a long time.That information, he said, is

available at www.Fracfocus.org.“We are in favour of disclosure,

and we have been encouraging our suppliers to continue to develop en-vironmentally friendly fluids.”

Boras added that Encana is not concerned that the provincial gov-ernment could be moving toward a moratorium on drilling similar to other jurisdictions.

Although the natural gas indus-try is relatively new to B.C., in recent years it has exploded into a $6 billion per year sector, generating jobs, new businesses and tax dollars for vari-ous levels of government.

Still, the province has said it’s keeping a close eye on the industry.

In June, Energy Minister Rich Coleman told Business in Vancou-ver the government was planning to conduct a health review focusing on the industry’s impact on northeast B.C. residents.

A Ministry of Health spokes-man said that review has yet to begin. The hydraulic fracturing registry will be online in January. •[email protected]

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Wilderness Committee campaigner Tria Donaldson: the government’s new fracking disclosure rules don’t go far enough to protect groundwater

resource potential.The company believes

there could be as much as 60 million pounds of uran-ium sitting in the ground beneath Roughrider, which is in Saskatchewan’s Atha-basca Basin, one of the world’s premier uranium Hathor CEO Mike Gunning: “the timing of the offer takes

advantage of depressed uranium prices” see Meltdown, 5

Daily business news at www.biv.com September 20–26, 20114 NewS

15th Anniversary Celebration

15 Brilliant Years and Counting . . .The honour of your presence is requested for the the 15th Anniversary of the founding of the Professional Women’s netWork.

Come celebrate our organization’s 15 years of growth and expansion, applaud the successes of our members, and pay special tribute to those gems in our business community who have contributed significantly to the advancement of women in business.

Date Thursday, September 29, 2011

time 5:00 pm - 8:00 pm

loCation Fairmont Waterfront Hotel

tiCket PriCe $75.00

rsVP To register, please email [email protected] wth your full name and email address, by Friday, September 16 to secure your spot.

PaYment metHoD Please make cheques payable to the Professional Women’s Network and send to: attention: Hayley renfrew c/o fasken martineau 2900-550 Burrard st. Vancouver, BC, V6C 0a3

note This is a ticketed event. Tickets will be emailed once payment is received.

special thanks to our Generous supporters:

Come celebrate 100 years of fun

HST will be added to the ticket price. All registrations must be held or paid with a credit card. No-shows will be charged. We require 48 hours notice of cancellations to issue refunds to the events.

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Thurs, Oct 13, 2011The Westin Bayshore 1601 Bayshore Drive, Vancouver, BCWelcome Reception ...............5:00pmDinner and Presentation .......6:30pmRegister online at bcama.com or call 604.983.6AMA (6262)

Registration BCAMA Members ....................$130Non-Members ..........................$170Students .....................................$130Collegiate ...................................$120Corporate Table (10) ...........$1,600Half Table ................................. $800

HST will be added to the ticket price. All registrations must be held or paid with a credit card. No-shows will be charged.

Congratulations to the 2011 BCAMA Marketer of the Year: Pacific National Exhibition

HST loss, faltering economy squeeze fiscal plan B.C.’s three-year outlook calls for $458 million in cuts, but HST referendum defeat threatens to weaken public finances for years

By Jenny wagler

With the harmonized sales tax (HST) nixed and global eco-

nomic fears on the rise, challen-ges to the B.C.’s public finances are mounting.

The province just released a re-vised three-year fiscal plan that anticipates $458 million in cuts to eliminate the deficit in 2013-14, ad-justing for a weaker economy and the costs of reverting to a PST/GST regime.

The adjusted plan lowers the province’s revenue growth expecta-tions to 2.8% annually over the next two years compared with budget 2011’s 3.3% projection.

Even before the PST transition is factored in, the province is now anticipating lower revenue from Crown corporations and natural resources. The result is a projected cumulative loss of $537 million over the plan’s three years.

“They have a tough financial ele-phant to push up the stairs here,” said Jordan Bateman, B.C. director for the Canadian Taxpayers Fed-eration (CTF), who commended the province for sticking to its bal-anced-budget commitment.

“[But] we would have felt a whole lot better if the quarterly report had a zero [bottom line] instead of a minus-$500 million.”

Bateman said the CTF is en-couraging the government to get back to its core spending priorities by eliminating some legacy pro-grams brought in by former pre-mier Gordon Campbell, such as the Pacific Carbon Trust.

“The problem for this govern-ment is that they’ve almost doubled spending in 10 years, and when you’re growing like that, you need everything to keep going right in order to balance the budget.”

Bateman said that while the government weathered the first re-cession, it’s now facing the “second

punch” of the HST loss and, pot-entially, a double-dip recession as a third.

“So they’re going to now have to really roll up their sleeves and make some cuts in order to get things to where they need to go.”

Jock Finlayson is executive vice-president of policy for the Business Council of BC and a past president of both the Association of Profes-sional Economists of BC and the Ottawa Economics Association.

He said the biggest challenge ahead for B.C.’s public finances, as the province reverts to PST/GST, won’t be the near-term $1.6 billion hit of returning federal transition money but the longer term rev-enue lost from moving to a worse tax regime.

Finlayson said the less efficient PST will reduce Victoria’s revenue by between $300 million and $400 million annually – and that num-ber will increase as the economy grows. Beyond that, he said, the province’s productivity will suffer under the PST.

“The level of productivity and productivity growth will be low-er than it would have been if we’d kept the HST because the HST is a better tax in terms of encouraging

”When you throw all those

different pieces into the

equation, it’s a fairly major

hit to the province’s long-

term public finances” –Jock Finlayson,

executive vice-president of policy,Business Council of BC

business investment into the cap-ital stock.”

The transition, he said, will in-crease the cost of doing business in B.C. by about $2 billion a year.

“When you throw all those dif-ferent pieces into the equation, it’s a fairly major hit to the province’s long-term public finances,” he said. “It’s not catastrophic, but it’s cer-tainly going to be felt.”

Finlayson said it’s too soon to say what effect the government’s hand-ling of the HST and its current pub-lic finances will have on its political support from Vancouver’s business community. But he pointed out that there will be lasting economic con-sequences from the loss of the HST, “and those consequences will be preponderantly negative.” •[email protected]

Jordan Bateman, B.C. director for the Canadian Taxpayers Federation: “[the BC Liberals] have a tough financial elephant to push up the stairs here”


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mining districts and Ca-meco’s backyard.

But the value of Hathor’s shares was hit hard earli-er this year following the earthquake and tsunami in Japan, which resulted in a meltdown at the Fukishima Daiichi nuclear plant.

Since then investors have fled the uranium sec-tor fearing a pullback in worldwide government programs to build new re-actors (see “Junior firms face meltdown as investors run for cover after quake rattles Japan” – issue 1117; March 22-29).

Gunning said during the conference call that Cameco’s bid has taken ad-vantage of volatile market conditions to seize control of a premier asset.

“The timing of the of-fer takes advantage of de-pressed uranium prices … since the Fukishima event, not to mention the general downturn in equity mar-kets in recent months,” said Gunning.

Although Cameco ten-dered its bid for Hathor last month, the junior explorer waited to release a prelim-inary economic assessment (PA) for Roughrider before it formally rejected the of-fer. The PA estimated the project had a pre-tax net

Meltdown: Investors leery of uranium in wake of tsunamifrom B.C., 3

hathor exploration ltd. (TSX:HAT)

Vancouver

CEO: Mike Gunning

Employees: N/A

Market cap: $510m

P/E ratio: N/A

EPS: ($0.06)

SourceS: Stockwatch, tSX

$0

$1

$2

$3

$4

$5

S N J M M J

present value of $1 billion, far in excess of what Ca-meco offered in its bid.

Hathor a lso said the project would cost ap-proximately $567 million to build, a number that Ca-meco has since disputed.

In a response to Hath-or’s formal rejection of the takeover bid, Cameco said last week the junior com-pany had missed the mark on the project’s value and costs.

“We believe Hathor’s PA signif icantly under-estimates the costs, time-lines and risks associated with development of the Roughrider deposit and so, by inference, signifi-cantly overstates the value of the Roughrider deposit and Hathor as a company,” said Tim Gitzel, Cameco’s president and CEO.

Raymond James ana-lyst Bart Jaworski wrote in a research note to invest-ors that Hathor’s estimated capital costs for the project were “quite low.”

Still, Raymond James has set a target price of $5 per share for the company, implying that Hathor is worth more than what Ca-meco has offered.

Another analyst, who asked to remain anonym-ous, said there’s a “greater than 50% chance” Cameco could increase its bid for Hathor or a white knight would swoop in with a competing offer.

During the conference call, shareholders repeat-edly pressed Gunning to divulge what he believes would be a fair offer for his company, but the chief executive refused to quote a number.

At press time, Hathor’s shares were valued at $4. •[email protected]

Burrard Street 11th priciest for offices in North AmericaBurrard Street is the 11th most expensive street in North America for office rental space, according to a study of 40 office markets released this week by financial and professional services firm Jones Lang LaSalle.

Gavin Reynolds, senior vice-president at Jones Lang LaSalle’s Vancouver office, said the survey represents what’s happening in Vancou-ver, which he deemed “the healthiest office market in North America” from a land-lord’s perspective.wednesday, September 14

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full disclosure

By Richard Chu

ed Des Roches has been ac-cepting credit cards at his

women’s fashion stores for years. When he was first being pitched on their use at his Vancouver-based chain of Plum stores, he was sold on the idea that accepting Visa and MasterCard would increase sales.

But now he prefers his clients to pay by Interac debit.

For Des Roches, and the tens of thousands of merchants across the country, the reason is simple eco-nomics: debit payments are a fixed cost of mere pennies; with credit card payments, the sky’s the limit.

Depending on the size and sales volume of a merchant, the per-trans-action price for debit ranges between $0.07 and $0.20. Des Roches said he was able to negotiate a debit fee of only $0.08 per transaction.

But he said he has neither the control nor the ability to accurately predict his monthly credit card fees. That makes it difficult for him to es-tablish competitive pricing and run his business efficiently.

New fee structure costs retailers Visa and MasterCard have come under fire from merchants in recent years over new fee structures for the various types of credit card issued by banks and credit unions.

For example, in 2008, Visa cre-ated seven separate merchant cat-egories that each had a distinct interchange fee – a percentage of a merchant’s credit card transaction that’s paid to the customer’s bank. The fees ranged from 1.21% for gaso-line merchants to 1.65% for retailers that accepted credit card payments by phone or online. At around the same time, Visa introduced its pre-mium Infinite card. Its interchange fees range from 1.41% for gasoline merchants to 1.85% for transactions where the merchant doesn’t swipe the card in person.

MasterCard’s basic interchange rates are similar. They range from 1.21% for gasoline merchants to 1.72% for standard credit card transactions. However, for its premium cards, the per-transaction interchange rate is as high as 2.65%. While merchants pay other transaction fees to the payment processors that provide the point-of-sale terminals, the interchange fees

set by Visa and MasterCard account for the bulk of the service fees retail-ers pay for each credit card trans-action. With premium credit cards from Visa and MasterCard, mer-chants can face per-transaction fees of up to 3.5% and even higher for American Express cards.

While that arrangement might make sense for the credit card net-work providers, it creates a practical problem of survival for merchants. Because there are more than 200 types of credit cards available from banks and credit unions in Canada and because costs vary depending on the type of credit card a customer uses, merchants have no way of real-istically estimating their transaction costs each month.

“It’s often a surprise,” Des Roches said. “I don’t know how much [the costs are] until I get the bill, which creates a problem when I do my pricing, because I have to accommo-date for [the credit card costs], and you can’t anticipate it.”

Brian Weiner, Visa Canada’s head of strategy and interchange, said the new fee structure was de-signed to create more flexibility that better reflected merchant costs and risks than the previous one-size-fits-all approach.

He noted that while the changes affected different retailers in differ-ent ways, overall the fees are “rev-enue neutral” to the system. Weiner was quick to point out that while credit card companies set the inter-change fee, credit network provid-ers like Visa and MasterCard receive none of it.

It goes straight to the bank to cov-er its costs of providing credit cards to consumers.

Those costs include: •creating and mailing the cards;•marketing; •fraud liability insurance; •call centres; and •extending unsecured credit to cardholders.

“So there are a lot of the costs borne on that side of the equation and relatively little revenue coming in because of the fundamental prem-ise that consumers need to be given the card.”

Weiner added that interchange fees for premium Infinite cards and corporate credit cards are higher be-cause of their higher fraud risks.

“I don’t buy it,” simmered Des Roches. “I really don’t.

“We can pay as much as 1.5% more because of the premium card, which should be lower risk. But we’re actually paying more, because of the points and the marketing, and there is no ceiling to that. There is no end to what they can charge. That’s a fun-damental problem, because rather than paying for the advantage of giving customers credit, we are now paying for all the miles, points and marketing they’re doing to sell the cards. All that is being passed on to the retailer.”

Weiner declined to disclose how Visa sets interchange fees. But he said each card has a different cost and a different value for merchants.

That explanation rings hollow for retailers, who complain that the se-cretive way interchange fees are set creates a hidden cost they’re forced to accept.

Competition Bureau push pannedThe competition commissioner’s case against Visa and MasterCard aims to help merchants mitigate those costs. In her application to the competition tribunal, Competition Bureau commissioner Melanie Ait-ken wants Visa and MasterCard to allow merchants: •to apply a surcharge to customers at the point of sale if they choose to pay with their credit card; and•to decline credit cards that carry higher interchange fees, which would eliminate a basic Visa and Master-Card stipulation that merchants must accept all types of branded credit cards.

But both options create new problems for consumers and might not help retailers mitigate the costs of accepting credit cards.

Vancouver’s Bruce Cran , president of the Consumers Asso-ciation of Canada, said placing a surcharge at the point of sale would

increase prices for consumers who use credit cards.

He was skeptical retailers would reduce their prices if they were al-lowed to add surcharge for credit card payments. Cran said that, if anything, merchants could make money from instituting surcharges.

A November 2010 report by the Australian consumer group Choice, which was commissioned by the New South Wales Office of Fair Trading, found that since surchar-ging was allowed in Australia in 2003, a third of consumers (32.7%) have had to accept surcharges of between 4% and more than 10% at the point of sale, far higher than the average 2% cost of accepting credit cards.

Canada’s Competition Bureau contends that surcharging would benefit small and medium-sized businesses (SMEs), but the Choice report found that larger retailers were more likely to apply surcharges

Ed Des Roches, owner of the Vancouver-based chain of Plum fashion stores: “rather than paying for the advantage of giving customers credit, we are now paying for all the miles, points and marketing they’re doing to sell the cards”

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B.C. merchants weary of shouldering credit card fees

Predictability of cash and debit payments becoming far more appealing as wide range of options and costs increasingly making credit cards a business liability

Daily business news at www.biv.com September 20–26, 20116 NewS

Fee Fight game plan

Retailers’ surcharge gambit a game of chickenFor years, merchants absorbed the cost of accepting Interac debit payments from customers. But an increasing number of fast-food outlets in shopping centres and other low-vol-ume merchants now charge an extra $0.25 or require a minimum purchase from customers who use Interac.

According to Caroline Hub-berstey, Interac’s director of public affairs, such surcharging remains rare but is becoming more common as retailers look for ways to mitigate the rising costs of doing business.

She noted that most retailers have resisted applying surcharges.

Merchants that depend on customers who pay by credit card, however, will face a high-stakes game of chicken with their competition over who will surcharge first.

Linda Bustos, director of e-commerce research at Vancouver’s Elastic Path Software, warned that any surcharge at the point of sale creates the kind of friction that turns customers away.

She said customers in-store and online loathe surprises when they check out, and they don’t like paying extra for using debit or credit cards – “especially after all these years we’ve been using them without having to pay for the privilege.”

If given the option to surcharge, Bustos said retailers should accept credit cards as a business expense rather than apply a surcharge, which often requires disclosure at the point of sale. She said studies have shown that customers believe they’re entitled to basic business services and are willing to pay more for products when services like free shipping are included.

Bustos cited one report that found customers were willing to pay $79.95 for an item that came with free shipping rather than pay $69.95, a price that included an additional $6.99 shipping charge tacked on at the point of sale. “People will be slow to accept [surcharges] as a normal part of shop-ping life and will be resistant to it.” •[email protected]

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Down Under: credit card use grew even after fee regulation was instituted in 2003

than smaller competitors.“It’s become a huge profit centre

for a lot of companies,” Cran said. “If the Competition Bureau gets its way, there’s no benefit to consumers.”

From a merchant’s perspective, even if retailers were allowed to sur-charge, most wouldn’t because it would be a competitive disadvan-tage. The Choice report noted that seven years after surcharging was al-lowed in Australia, 80% of SMEs and 60% of large merchants still didn’t surcharge credit card customers.

While the competition com-missioner was unavailable to speak to BIV about the issue, a Competi-tion Bureau spokesman said that

regardless of whether merchants would apply credit card surchar-ges, they’re contractually prohibited from doing so, which the bureau contends is anti-competitive.

Last week, the Canadian Fed-eration of Independent Business released a table listing the average merchant fees for the hundreds of credit cards on the market. But even with that list, having the option to decline some credit cards would be impractical.

“I can’t expect my staff to be able to identify it,” Des Roches said. “And would I reject it anyway? Prob-ably not.”

Compromise neededIf surcharging and removing the merchant requirement to accept all credit cards are not answers to re-ducing credit card costs, what is? Possible alternative solutions in-clude having the government regu-late credit card interchange fees and eliminating credit card reward points.

In 2003, Australia allowed sur-charging and began regulating inter-change fees for the country’s credit card providers. The changes trans-formed the industry, and the num-ber of credit cards available on the market dropped.

But while Visa and MasterCard argue that regulating interchange fees would hurt their business, Re-serve Bank of Australia statistics suggest that credit card use did not decline as much as the credit card companies had feared. And while premium reward cards disappeared for a few years, they’re returning to the market, albeit with much high-er annual fees. Nevertheless, stud-ies suggest that piecemeal changes could open a Pandora’s box of issues that would hurt merchants and con-sumers alike.

For instance, a 2008 Federal Re-serve Bank of Kansas City research paper warned of the unintended consequences from improperly

setting interchange fees or too tight-ly regulating reward programs.

In the past year, a federal task force has been looking into the fu-ture of Canada’s payment system. By the end of the year, the group set up by federal finance minister Jim Fla-herty will present recommendations that will also address merchant fees on credit cards.

Des Roches, who participated in the Vancouver roundtable, said the government should focus on the interchange fee rather than create solutions that ding consumers at the point of sale. He said the fee should include only the costs associated with providing credit to consum-ers. The banks that issue credit cards should absorb the costs of marketing the cards and all the rewards they of-fer consumers.

“There’s no way retailers should be paying for the marketing,” said Des Roches. “Customers have a re-lationship with their bank and their credit card provider, but when they walk into my store, they’re my cus-tomer. When they come to pay, every customer should be treated equally. If they have an outside relationship [with a financial institution], they’re choosing that relationship to make the payment. It shouldn’t have any-thing to do with me.” •[email protected]

Adding up credit card numbers

$240 billion Estimated total of Canadian credit card purchases in 2009

$5 billion Estimated annual total in Canada of merchant fees paid to accept credit cards

670,000 Number of merchants that accept credit cards in Canada

204 Number of credit card types available in B.C.

75%Proportion of Canadians who strongly oppose surcharging

Sources: Financial Consumer Agency of Canada, Competition Bureau, Consumers Association of Canada,


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Michael Orbach/Kushal saha Second-quarter surge in cross-border technology

M&As bodes well for Canadian innovation

even as the U.S. and other econ-omies struggled through 2011’s

second and third quarters, the tech-nology industry has shown no sign that it’s feeling a pinch.

According to a recent Ernst & Young report, tech-sector mergers and acquisitions activity explod-ed during 2011’s second quarter, driven primarily by cross-border transactions.

According to the report, aggre-gate disclosed cross-border deal value grew 118% and volume grew 16%, while in-border deal value grew only 75% and deal volume actually declined by 11%.

Canada led the pack in cross-border technology transactions dur-ing Q2. Outshining perennial tech heavyweights, including Japan and Taiwan, Canadian technology com-panies closed 30 deals during the second quarter of 2011 alone, a near-ly 50% increase in deal volume over

2010’s second quarter. A large portion of these deals

involved cross-border acquisitions: Canadian technology companies spent roughly $240 million to ac-quire foreign companies; foreign companies spent approximately $480 million to acquire Canadian companies. Only the U.S. outranked Canada in the number and valua-tion of cross-border transactions in Q2 2011.

Cascadia believes the strong foundations Canadian tech com-panies have laid across several hot sectors are key drivers behind the surge in Canada’s cross-border deal volume.

Security, health-care informa-tion technology, social network-ing, mobile and cloud technologies all proved to be top M&A targets during Q2 2011. The strength of Canadian companies in these sec-tors was apparent in the number of

transactions companies successfully closed across the country.

Cross-border prospects have re-mained open to Canadian compan-ies during the third quarter as well.

Despite the strong growth in Q2 and Q3, technology companies – on both the buy and sell sides – need to carefully plan their acquisition or exit strategies as the U.S. economy continues to struggle.

Technology companies looking to make strategic acquisitions have recently been stockpiling cash, and cash and investments held by the sector’s top 25 companies saw an 18% year-over-year increase between the 2010-11 second quarters – to US$591 billion from US$499 billion. This wealth of cash and assets has given these companies the flexibility to act quickly when strategic acquisi-tion opportunities arise, fuelling the higher second-quarter transaction volume.

While available cash affords stra-tegic investors flexibility, compan-ies on both sides of the M&A divide need to consider the broader issues in order to continue to drive M&A activity.

Several factors, including increas-ing divergence between buyers and sellers over valuation, geopolitical unrest and global debt issues, con-tinue to build a barrier to success-ful M&A transactions, and available cash will likely not be enough to overcome these significant hurdles.

While challenges exist, the trend toward cross-border deals will help sustain deal volume in the tech sec-tor. At 311 deals worldwide, cross-border transactions accounted for 40% of all deals in Q2 2011, a signifi-cant increase from 34% in the year’s first quarter, as well as all of 2010.

The average value of cross-bor-der transactions also grew 49% year-over-year to $229 million in Q2 2011

from $154 million in Q2 2010, while the average deal value for all trans-actions, including domestic and cross-border, increased only 39% year-over-year.

For companies looking for an exit, cross-border deals are gener-ally garnering better valuations and stronger deal terms.

For companies looking to expand through acquisition, cross-border deals afford them the opportun-ity to not only diversify their assets, but also to provide them with geo-graphic diversity and new market opportunities. •

Michael Orbach and Kushal Saha are managing directors at Cascadia Capital (www.cascadiacapital.com), a Seattle-based boutique investment bank serving companies in diverse industries, including information technology, sustainability and mid-dle market.

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

ESI Entertainment Systems Inc. (CNSX:ESY)

▲27% ($391k) ($0.03)Software sink: Although ESI didn’t turn a profit in 2012’s first quarter, the software developer’s net loss decreased 8% to $391k compared with the same period the year before. Meantime, revenue from its Integrity software brand dropped 4% to $417k, while revenue from its Citadel brand was up 70% to $526k. Still, the company’s direct costs increased to $809k from $497k the year before.

Revenue: $943k3 months 2012

Net income 3 months 2012

Earnings per share 3 months 2012

Taiga Building Products Ltd. (TSX:TBL)

▼11% $3.6m $0.11Building bungle: The Burnaby-based construction product distributor said sales dropped in the first quarter due to stagnant commodity prices and weaker demand from the building sector. The company also posted an $18.6m increase in its revolving credit facility, which now totals $108m. Taiga’s EBITDA also decreased to $11.8m from $13.6m in the same period the year before.

Revenue: $264m3 months 2012



Rusoro Mining (TSX-V:RML) Figures in U.S. dollars

▼48% ($9.8m) ($0.02)Gold gamble: Lower production rates and higher cash costs resulted in a $9.8m loss for Rusoro in the second quarter. Although the company was finally able to export gold from its operations in Venezuela, it was unable to complete a gold delivery contract. On top of that, Rusoro did not repay its $30m loan, and the government of Venezuela has declared it will nationalize all gold production in the country.

Revenue: $27m6 months 2011



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Daily business news at www.biv.com September 20–26, 20118 Finance

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InsIder TradIng

The following is a list of the largest stock trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed by the week ending September 8. The information comes from a compilation of required reports filed with the BC Securities Commission within five cal-endar days of a change in an insider’s holdings.

Insider: Mark Rachesky, directorCompany: Lions Gate Enter-tainment Corp. (NYSE:LGF)Shares owned: 40,297,050Trade date: September 2Trade total: $77,283,451Trade: Purchase of 11 million shares from Carl Icahn for US$7 per share.

Insider: Colette Rustad, senior vice-president, corporate controllerCompany: Goldcorp Inc. (TSX:G)Shares owned: 1500Trade date: September 7Trade total: $1,304,850 (net)Trade: Sale of 55,000 shares for $54 per share following the acquisition of 30,000 shares for $35.62 per share and 15,000

shares for $39.77 per share through the exercise of options.

Insider: Horacio Bruna, vice-president, Canada and the U.S.Company: Goldcorp Inc. (TSX:G)Shares owned: 0Trade date: September 8Trade total: $1,101,688 (net)Trade: Sale of 61,667 shares for US$56.08 per share following the acquisition of 20,000 shares for US$30.73 per share, 20,000 shares for US$40.05 per share and 21,667 shares for US$43.43 per share through the exercise of options.

Insider: Robert Gilmore, directorCompany: Eldorado Gold Corp.Shares owned: 9,500Trade date: August 29Trade total: $949,177 (net)Trade: Sale of 81,300 shares for prices ranging between $18.90 and $19.15 per share following the acquisition of 13,300 shares for $9.81 per share, 34,000 shares for $6.44 per share and 34,000 shares for $7.12 per share through the exercise of options.Insider: Rui Feng,

chairman and CEOCompany: Silvercorp Metals Inc. (TSX:SVM)Shares owned: 3,854,500Trade date: September 6Trade total: $787,000Trade: Purchase of 100,000 shares for US$7.87 per share.

Insider: Ronald Bertuzzi, directorCompany: TAG Oil Ltd. (TSX:TAO)Shares owned: 343,356Trade date: September 7Trade total: $756,085Trade: Sale of 100,000 shares at prices ranging between $$7.50 and $7.65 per share.

Insider: Bradford Cooke, chairman and CEOCompany: Endeavour Silver Corp. (TSX:EDR)Shares owned: 1,087,837Trade date: September 1, 6Trade total: $599,500Trade: Sale of 50,000 shares at prices ranging from $11.65 to $12.33 per share.

Insider: Wendy Louie, vice-president, assistant controllerCompany: Goldcorp Inc. (TSX:G)

Shares owned: 6764Trade date: September 7Trade total: $551,400 (net)Trade: Sale of 30,000 shares for $54 per share following the acquisition of 30,000 shares for $35.62 per share through the exercise of options.

Insider: Frank Crema, vice-president, treasurerCompany: Goldcorp Inc. (TSX:G) Shares owned: 2,103Trade date: September 6Trade total: $428,800 (net)Trade: Sale of 15,000 shares for $55.10 per share following the acquisition of 10,000 shares for $39.77 per share through the exercise of options.

Insider: Rohan Hazelton, vice-president, financeCompany: Goldcorp Inc. (TSX:G)Shares owned: 2168Trade date: September 8Trade total: $292,650 (net)Trade: Sale of 15,000 shares for $55.13 per share following the acquisition of 15,000 shares for $35.62 per share through the exercise of options. •[email protected]

September 20–26, 2011 Business in Vancouver 9finance

#203-3237 King George BlvdSurrey, British ColumbiaV4P 1B7

* Assumption based on forward looking projections based upon total projected average annual simple return for full 10 year holding period. See Offering Memorandum for further details. This document should not be construed as an offer to sell, nor a solicitation to buy any security. An offering is made only by private placement pursuant to a confidential Offering Memorandum issued by iFund 2011 Capital Corp. iFund does not provide investment advice on any investment. iFund 2011 Capital Corp also always

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B.C. unEMpLOyMEnT RISES August jobless rate edges up to 7.5%

▼5.6% ▲0.9% ▼0.7% ▲1.3%August

employment(public sector)

August employment

(private sector)

August employment

(full-time)

August employment

(part-time)

B.C.’s unemployment rate inched up to 7.5% (seasonally adjusted) in August, as a drop in the number of jobs (-0.3%, or -6,000) was accompanied by next to no change (0.0%, or 1,100) in the number of people who were either working or looking for work. Employment dropped in the public sector (-5.6%), while there were noteworthy increases in the private sector (0.9%) and among the province’s self-employed (1.4%). Full-time employment edged down 0.7%, while the number of people with part-time jobs climbed (1.3%).

Employment rates differ by regionAmong the regions, jobless rates ranged from 4.2% (three-month moving average, unadjusted) in Northeast to 9.5% in Kootenay. Unemployment rates were down in Vancouver Island/Coast, Thompson-Okanagan and Northeast, but climbed in other regions.

-BC Stats Infoline, Issue 11-36, September 9

Goods sector employment risesEmployment in the goods sector climbed 1.7%, with the number of jobs increasing in some industries. The job count in construction jumped 3.1% and the manufacturing industry took on more workers (6.9%) for the first time since April. At the same time, there were substantially fewer jobs in utilities (-38.2%).


Building permits dip in BC municipalities in July The value of building permits issued by B.C. municipalities dipped 8.1% (seasonally adjusted) in July, as an increase in non-residential permits (11.4%) was unable to offset a 17.1% decline in planned spending on residential building projects.


Daily business news at www.biv.com September 20–26, 201110 Real estate

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real estate roundup

Peter MithaMAlberta buyers drawn to affordable island cottages; boss of horticulture council suggests regional taxpayers should contribute to farm infrastructure upkeep

Port of callThree Point Properties Ltd. of Victoria is proceeding with Wild Coast Cottages in Port Renfrew, a project initially launched in 2008 with the vision of offering afford-able vacation home sites on par with Tofino but within a two-hour drive of Victoria.

Unfortunately, site servicing costs and the financial meltdown of late 2008 nixed the original plans. The vision of “two-, three- and four-bedroom cottages ranging in size from 1,180 to 1,900 square feet” on lots starting at 5,000 square feet have given way to one-bed-room microcottages averaging 400 square feet. Developed on a por-tion of the 430 acres of land Three Point owns above Port San Juan, the inlet off the Strait of Juan de Fuca where Port Renfrew lies, the Wild Coast development has at-tracted 43 buyers since relaunching late last year. A selling point is the price: Unlike the original proper-ties, which started at $299,000 for a lot and house, prices at the new project began at $149,900 (includ-ing HST). The lower pricing is pos-sible thanks to the site following the layout of a former RV park and the prefabrication of the cottages themselves in Sooke by Westco

Construction Ltd.Westco manufactures wall seg-

ments for various residential pro-jects on Vancouver Island and counts Bear Mountain among its clients. Its cottages are also ideal for laneway homes (“garden suites” in the local terminology).

A site visit last week acquainted travel and business media (includ-ing yours truly) with the cottages and all Port Renfrew has to offer – including a host of sport fishing, ecotourism offerings and the com-pany of colourful locals (more than a few of which noted that severe winters militate against Port Ren-frew achieving year-round destin-ation status, unless you’re into high surf). The cottages themselves were pleasant enough for a weekend get-away and have drawn several buy-ers from Alberta (some of whom were enjoying their purchases last week).

Sales at Three Point’s project is mirrored elsewhere, according to Westco owner Dan Melville, a 30-year-old entrepreneur who noted that this summer has been twice as busy as last year. The sales activity is a good sign in a market where tourism has generally been sluggish this year, with Alberta traffic offsetting a decline in U.S. visitors.

Infrastructure issuesDelta presented its draft agricul-tural plan at an open house that attracted just over 40 people last week, and the document sparked conversation regarding funding for Lower Mainland’s infrastruc-ture – specifically, infrastructure related to agricultural land uses.

Darrell Zbeetnoff of Zbeetnoff Agro-Environmental Consult-ing, who Delta council charged with drafting the plan in conjunc-tion with Quadra Planning Con-sultants and Delta staff, framed the document as looking ahead at the implications for agriculture through 2050 (coincidentally, the

same date on which the B.C. chap-ter of the Urban Land Institute is focusing its ongoing discussion series regarding urban issues).

“We have economically viable agriculture because we have effi-cient agriculture and because we have the infrastructure [for agri-culture] to be able to perform effi-ciently,” Zbeetnoff explained.

Delta farms are productive enough to account for 26% of Met-ro Vancouver’s farm cash receipts and approximately 7.9% of the provincial tally.

Zbeetnoff said roads, irrigation and water systems and distribution networks for energy are all factors in the success of local agriculture. He was largely preaching to the choir, given the number of farmers in attendance.

But during the question-and-answer period that followed, Jack Bates – a veteran local farmer and current president of the Canadian Horticultural Council – offered one of the most startling sugges-tions of the night. Sizing up the benefits to the Lower Mainland

of Delta agriculture – everything from greenhouse production to potatoes and berries – Bates sug-gested that regional taxpayers contribute to the upkeep of the infrastructure needed to feed themselves.

“It’s probably a fair number that the taxpayers of Delta put into roads, irrigation, water,” he said. “I know there’s some charges on our taxes, but I think the house-holds of Greater Vancouver and the whole [Fraser] Valley should be paying something to put food on their tables.”

Solar studyThirteen months ago, this column mentioned that Okanagan Col-lege was one of several B.C. schools participating in the “Living Build-ing Challenge” spearheaded by the Seattle-based International Living Building Institute (ILBI) and the Cascadia Green Building Council.

A pair of press releases issued last week trumpeted the fact that the school’s $28 million Centre of

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Excellence in Sustainable Build-ing Technologies and Renewable Energy Conservation in Penticton has opened with power generated by the largest photovoltaic solar panel array in Western Canada. The 260-kilowatt facility, installed by Calgary-based SkyFire Energy Inc., incorporates more than 1,100 235-watt modules and will gener-ate 292,500 kWh annually (enough to power approximately 292 homes for a year).

Certification of having achieved “Living Building” status won’t occur until at least 12 months after occupancy, when ILBI auditors can check operations records and ver-ify that the centre has met its per-formance goals.

In the meantime, the system will not only generate power but also provide apprentice and entry-level electricians studying at the centre first-hand experience with solar-generating systems, includ-ing their functioning as part of a building and as part of the broader power grid. •[email protected]

“We have economically

viable agriculture because

we have efficient agriculture

and because we have

the infrastructure [for

agriculture] to be able to

perform efficiently”

– Darrell Zbeetnoff, principal,

Zbeetnoff agro-environmental Consulting

On the edge: three Point Properties Ltd. is finding buyers for microcottages in Port renfrew, an ecotourism destination two hours west of Victoria at the south end of Pacific rim National Park

September 20–26, 2011 Business in Vancouver 11Technology

Join tech industry leaders to explore winning HR strategies for growing your business.

Featuring keynote presentation by Don Bell, Co-Founder of WestJet

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No more pencils, no more booksMore than 3,000 B.C. students at CDI and Vancouver Career College won’t be getting textbooks this year – they’ll be getting iPads

By Nelson Bennett

College students at CDI and Vancouver Career

College (VCC) headed back to school last week with much lighter loads.

No longer will they have to lug around heavy tome-laden bookbags. Everything they need – from textbooks to as-signments and even notes taken in class – will be avail-able on the iPads they re-ceive at the beginning of their school year.

“We believe that e-text and tablet computing (is) going to be the wave of the future,” said Drew Lawrenson, vice-president, senior counsel for Eminata Group, which owns CDI and VCC. “So as part of that, we decided to move to-ward a tablet and e-text mod-el, which was a monumental project.”

Canada-wide, 10,000 stu-dents at Eminata colleges will be getting iPads. Roughly 3,000 of them are in B.C.

In addition to buying 10,000 iPad tablets, Eminata has implemented a learning management system (LMS) – an online portal where stu-dents can access their e-books and assignments.

“There was a substan-tial investment that we had to make in our infrastruc-ture – the development of the

LMS and wireless networking through all of our campuses – to make this a reality,” Law-renson said.

The company ran a pi-lot project last year involving students in Vancouver and Calgary before rolling out the program across Canada.

The cost of the iPads is in-cluded in students’ tuition, and they get to keep them when they’re done.

Students are not restricted to using the iPads for school-work. In fact, that’s one of the few drawbacks, accord-ing to VCC student Randy Dumlao.

“With the iPad, temp-tations can come,” he said. “Facebook is there, Twitter is there, Google is there. I won’t lie to you, I am tempted sometimes.”

On the other hand, the iPads make it more conven-ient to study virtually any-where, any time.

“It’s easy access,” said Ash-ley Cortez, a VCC nursing student. “I can bring it any-where easily and get WiFi. Even offline you can access your books and study any-where you want.”

The college worked with Apple Education Canada and publishers, like Pearson Canada, to have almost all the textbooks used at Eminata colleges converted to elec-tronic format. Pearson also provided the LMS – an on-line portal for students where the e-books, assignments and even their notes are available.

If a student happens to lose his or her iPad, or leaves it somewhere and tempor-arily can’t access it, he or she will still have access to all textbooks, notes and assign-ments online through the LMS, which can be accessed through any computer.

And because the material is also on the iPad, students can also still access their text-books even when there’s no WiFi connection.

Typically, e-books cost less than their hard-copy counter-parts because there are no printing and paper costs.

But, because the publish-ers have had to convert so many of the books to elec-tronic format, the textbooks that Eminata is buying from them aren’t any cheaper. The

publishers also had to in-clude a host of interactive fea-tures, such as the ability to copy and paste text and make notations.

“You can highlight stuff, take notes on it – it’s better than books,” said Prabh-deep Jassal, who is also in

VCC’s practical nursing pro-gram. “It’s lighter than the textbooks, so you don’t have to carry like 150 pounds of textbooks.”

The e-books also have a search function that allows for quick indexing of material, and a Facetime function that allows for group study even when students are not in the same classroom.

Said Dumlao, “It makes it easier to communicate with other classmates, or even the teachers.” •[email protected]

The college worked

with Apple Education

Canada and publishers,

like Pearson Canada,

to have almost all the

textbooks converted

to electronic format

“It makes it easier

to communicate with

other classmates, or

even the teachers”– Randy Dumlao

student,Vancouver Career College

VCC student Prabhdeep Jassal: “it’s lighter than the textbooks, so you don’t have to carry like 150 pounds of textbooks”

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Eminata Group vice-president Drew Lawrenson: “there was a substantial investment that we had to make in our infrastructure – the development of the LMS and wireless networking through all of our campuses – to make this a reality”

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Daily business news at www.biv.com September 20–26, 201112 Small buSineSS

FASTEST GROWINGFASTEST GROWING

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Date: September 27, 2011

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Building beyond bordersSmall businesses expand by opening U.S. offices and distribution centres

By Jenny Wagler

When U.S. President Barack Obama signed legislation last

fall requiring American broadcast-ers to make some of their their TV programming accessible to the blind as of July 2012, a Vancouver CEO knew she needed to launch her com-pany into the U.S. market.

“I think that the [market] growth opportunity there is phenomenal,” said Diane Johnson, president and CEO of Descriptive Video Works.

Johnson’s eight-year-old com-pany leads the Canadian market for described video.

“As a blind person, you’d hear a gun shot [on TV] and you go, ‘Who is it? Who got shot?’ and unless somebody was sitting there telling you what was going on, you wouldn’t understand the plot,” Johnson said.

Descriptive Video Works scripts and records audio tracks that de-scribe scenes and body language that aren’t conveyed by dialogue.

In Canada, major broadcasters have been required to provide four hours a week of described video pro-gramming since 2003. This month, those requirements were extended to Canadian specialty channel broad-casters, such as History Television.

But Obama’s passing of the 21st Century Communications and Video Accessibility Act convinced Johnson her company’s real growth opportunities are south of the border.

And she isn’t the only one look-ing for a toehold in the U.S. market.

“I’d say we get at least a couple of clients a week that certainly have some aspirations [to enter the U.S. market],” said Richard Sagan, a

client services co-ordinator for Small Business BC (SBBC). “The opportunity can be immense.”

Sagan said he’s currently seeing the highest interest from manu-facturing and consulting firms. He noted the companies have a num-ber of options for setting up across the border, including setting up dis-tribution for manufactured goods, finding a U.S. agent to drive sales or setting up a full office.

He said a first step for businesses setting up in the U.S. market is to visit the US Small Business Admin-istration website (www.sba.gov).

The site, he notes, walks owners through steps such as registering a business name, getting a tax identi-fication number, registering for state and local taxes and obtaining busi-ness licences and permits.

A second resource, he said, is small-business development cen-tres that have been set up in differ-ent states; he recommended that B.C. business owners contact the centre closest to where they’d like to set up shop.

For Johnson, the key to figur-ing out how to open an L.A. office – which she launched in March – was finding an American entertainment lawyer who had previously helped other Canadian companies incor-porate in the States.

“I think that was part of the key to it – getting the right person who knew the right answers instead of having to ask 15 people.”

After sorting out the legal re-quirements and incorporating in the U.S., Johnson tracked down L.A.-based Mhairi Morrison to run the new office. Morrison, Johnson said, had the necessary background, con-nections to the L.A. film commun-ity, and a U.S. work permit.

In Morrison, Johnson side-stepped one key challenge for Can-adian companies: work permits.

Both Sagan and Corinne Pohl-mann, vice-president of national af-fairs for the Canadian Federation

of Independent Business, cautioned that getting work permits for Can-adians can be tricky for Canadian businesses setting up – or even working short term – in the U.S.

Polmann said a number of CFIB members have even been having trouble getting the necessary per-mits to send Canadian workers on short-term stints to the States, to train or carry out repairs.

“They struggle to get those people across the border to help their cli-ents,” she said. “Especially in the last couple of years with the recession and the downturn, the Americans are much more conscious of, ‘Well, why don’t you hire an American to do it?’”

Permits aside, Johnson is facing a more basic challenge: will her fi-nancial gamble on the L.A. office pay off? To date, she said, the office has resulted in a number of “amazing” meetings with decision-makers at U.S. broadcasters – but no sales.

Already, she said, she’s been disappointed to see the recently launched Oprah Winfrey Network – which she considers to be a perfect ethical fit for described video – fail to respond to her company’s offerings.

“[O Network representatives] said, ‘We don’t think that we have to do it. We’ve got our lawyers working on it now and we don’t think we have to,’” Johnson said.

But she added that her faith in the L.A. office is strong.

“I think it will at least double our business in the next two years.” •[email protected]

Diane Johnson, president and CEO of Descriptive Video Works: “I think that the growth opportunity there is phenomenal”

See you in print!Each week we pick a subscriber to profi le. For consideration, email profi [email protected]. Another way that Business in Vancouver pays off .

Reader Profi le

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Business lines

Business/Organization Name: Fleetman Consulting Inc.Business Focus/Specialty: BC’s largest independent fl eet management and procurement company that specializes in forklift trucks.Business Advantage: We operate completely separate from all forklift dealers and manufacturers so we have the freedom to do what is best for our clients.Website: www.fl eetmanconsulting.com

Foundation

Name: Scott McLeodEmail: smcleod@fl eetmanconsulting.comOccupation/Position/ Title: President & FounderWhat I Do: I help small, mid-size and large forklift fl eet users identify, reduce, track and control all forklift related costs including buying, leasing, renting, parts, service and training. I also help them solve a wide range of forklift problems.Credentials: University of Guelph, BComm. Over 23 years in the forklift industry where the majority of those years were spent

working for a local forklift dealership as a senior management executive.Professional Background: Held the position of VP Sales & Marketing for Williams Machinery Ltd. until 2008.

FAVOURITE STUFF

Favourite Achievements: The successful launch (est. 2008) and continued growth of Fleetman Consulting Inc. during a very uncertain economic time.Goals: To rely exclusively on client referrals for the future growth of my business.Passions and Interests: My 9 year old daughter, family, business, golf, gardening and travel.Current Read, Author: Time to Grill, Jamie PurvanceSomeone I Admire / Why: My parents for their commitment to their marriage and their family.Five People (of All Time) I Would Invite To My Dinner Gathering: Jerry Seinfeld, Johnny Carson, Russell Peters, Martin Short and John Cleese.Business Tip or Motto: “Real progress can only come from unrealistic expectations”…. Unknown

ScottMcLeodPRESIDENT & FOUNDER

BizPharmacy

Cyri Jones and ivan surJanoviCHow to tap student talent pools

to help build your business

Symptom:“We had some great students work-ing with us over the summer. They had lots of energy, creative ideas and had great tech skills, but now they have all returned to school. We have a solid group of permanent employ-ees, but this exodus of our student workers has left us with a bad case of SLTS Syndrome (Student Employees Leaving Too Soon).”

Recommended medications:Ivan: I get a lot of inquiries this time of the year for this difficult condition. The good news is that most companies are facing the same thing each fall, so at least you’re not suffering alone. The better news is there are a lot of easy ways to over-come this condition, and you can soon have some younger folks once again thinking outside the box.

Cyri: Yes, with social network-ing and online recruitment tools, you can keep in touch with your stu-dent workers once they have gone back to school and with some next-generation medicine, you can even get them back working on school projects focused on your business throughout the year.

Ivan: The obvious tool to use if you aren’t already doing so is LinkedIn (www.linkedin.com). More than 95% of recruiters use LinkedIn to find prospective employees, and students are starting to realize the importance of being on this network.

Make sure your student workers are in your LinkedIn network to make it easy to stay in touch.

Cyri: There’s also Google+ now where you could set up a “circle” of students that have worked with you or others interested in keeping in touch with company news (www.plus.google.com). That way you can direct relevant information to them without overwhelming them with your plethora of social media.

Ivan: And don’t you have your own homegrown medication to help with this condition?

Cyri: I thought you would never ask! Just for full disclosure sake, I do have a stake in the research, develop-ment and also sales of this medicine so I might not be a fully neutral doc-tor on this one. But I’ve seen it work for several years first hand, and I’m a believer. Zen Portfolios (www.zenportfolios.ca) enables students to create professional e-portfolios that showcase their work, career direc-tion and interests. It also offers a sub-scription-based recruiting service for industry wanting to connect with lo-cal upcoming talent and an industry project matchmaking service. Em-ployers can find upcoming, local tal-ent with specific skills and search for prospective grads based on personal characteristics and values.

With the industry projects ser-vice, students looking for real-life projects to work on for their course work can hook up with companies,

government or non-profit organ-izations looking for temporary help with a challenge they’re facing.

Ivan: I can see how that medica-tion would work well for companies but isn’t that putting the students in worse health, getting them to work for industry without getting paid?

Cyri: There’s a small honorarium for each student project that goes into a fund that supports student scholarships, subsidizes student at-tendance at industry events and helps support student clubs. More importantly, the real-life work ex-perience students get is invaluable. They can apply what they’re learning in school and showcase what they’ve done for the project sponsor on their e-portfolio.

Prognosis:Ivan: Isn’t the medicine a bit danger-ous, getting students who are still learning to work on real-life prob-lems facing your organization?

Cyri: It may seem that way, but companies that have tried this treat-ment have found the students offer a great out-of-the-box perspective and work really hard. Many also go on to work for their companies after they graduate. Companies are asked at the end of the student projects how much money they saved compared with buying the services of consult-ants, and the amount saved is usu-ally in the thousands. In one case a company said the ideas the students

came up with saved them $250,000.Ivan: Sounds good in theory,

but is anyone actually using this medication?

Cyri: It’s not a generic product just yet, but it is growing fast. Local-ly, it’s being used at Capilano Uni-versity (www.capilanou.ca) and the British Columbia Institute of Tech-nology (www.bcit.ca) as well as at dozens of schools outside of British Columbia.

Future management of this condition:Cyri: Being proactive is the best ap-proach. Some people think that with the economic hard times, it’s a “buy-er’s market” for labour. That’s short-sighted. In any labour market, you want to get the best people you can, because people make the difference in successful organizations.

Alternative medicine:Ivan: OK, enough about your home brew, what are other options for finding upcoming talent to ensure your organization doesn’t suffer from SLTS? How to you keep finding new, creative and talented workers?

Cyri: There are a number of op-tions. There are the big job posting sites that have large resume banks like Workopolis (www.workop-olis.ca) and Monster (www.mon-ster.ca). New entrants like Simply Hired (www.simplyhired.com) are attempting to aggregate all the job

sites. For local jobs, your best start-ing point is of course Business in Vancouver’s own localized careers site it offers in partnership with Workopolis (www.biv.com). Business in Vancouver also has a great listing of local recruiters in its Book of Lists. It comes free with a Business in Van-couver subscription, or you can buy it individually.

Ivan: For students, especially those in business programs, the best way to network with local industry is of course a subscription to Business in Vancouver!

Precautions/WarningsCyri: Don’t underestimate the abil-ities of talented students. You might think you’re doing a community service helping students get real-life experience, but you’ll soon dis-cover your organization benefits enormously. •

Cyri and Ivan’s medication rating:✶✶✶✶

Cyri Jones teaches entrepreneurship, project management and informa-tion technology at BCIT and Capi-lano University and is the co-founder of ZedPress.com, a lifelong learning publishing platform and social net-work. He blogs at 24posts.com. Ivan Surjanovic is a marketing faculty at Capilano University and CEO of iP-ower Lab. He blogs at whereispuck.com and at bizpharmacy.com.

Winnie-the-Pooh on Managementby Roger E. Allen, Penguin, May 2011 (reprint)

“Oh bother! Yet another management-theory

book.” But this one is simple and straightforward. Allen, a management consultant, effectively and charmingly uses the adventures of the familiar characters of One Hundred Acre Wood – Pooh and his friends – to illustrate the six basic functions of a manager, and how to avoid the Horrible Heffalump Traps. I found the chapter entitled “In Which Piglet, Pooh and Tigger Communi-cate After a Fashion” to be especially relevant. I would recommend this book to newly promoted or first-time managers as a companion to

Peter Drucker’s Effective Executive. It will not leave one “confuzzled,” but will provide the basis for more in-depth organizational and management theory.

Cognitive surplus by Clay ShirkyPenguin Books, May 2011

What is “cognitive sur-plus?” In his new book,

social media guru Shirky (Here Comes Everybody) coins this phrase to refer to society’s historical uses of free time and how these have changed over the years. Shirky notes that “social uses of our new media tools have been a big surprise, in part because the possibility of these uses wasn’t implicit in the tools themselves.” One only has to think of many of

Book revieWs

this year’s riots around the globe – some of which are referenced in the book – as an example of how social media has sometimes trans-formed mere consumers into active participants. We see these events on TV (un-balanced and one-way com-munication), but because three billion consumers (and counting) have a mobile phone with a camera, trad-itional notions of the media have been transformed. This isn’t the first time such a transformation has taken place. Shirky relates how society has changed as ear-ly media evolved – from Gutenberg’s printing press to present-day civic-mind-ed websites like Ushahidi.com or the very social Fa-cebook. The last chapter of Shirky’s book offers lessons learned as a guide for new projects and asks, “What is the ideal way for new tech-nology to be integrated into society?” He is a strong ad-vocate for “as much chaos as we can stand” as we look for answers.

Consumer Republicby Bruce PhilpMcClelland & Stewart, 2011

remember Dave Caroll, the Nova Scotia folk sing-

er whose guitar was broken by United Airlines? His song, “United Breaks Guitars,” went viral on YouTube and hit No. 1 on iTunes. United’s stock plunged by 10% and cost shareholders approximately $180 million. Philp uses this story to illustrate two very important things about the consumer republic: we have a voice and the means to make it heard. And to demand bet-ter – better service, a better toaster – the possibilities are endless. •

Donna Kaye is an assist-ant trade buyer at UBC Bookstore.

>”What we have been trying to teach women

entrepreneurs is that it’s not just about the

revenue or staff, but about what you define

as success and what’s most important to

you. It comes back to demanding more

out of your business than money” diana stirling, co-founder, onTrack Media and insider

Trading, on women getting meaningful returns from owning businesses. From a BIV list story (issue 1141; september 6-12)

>”The first rule of any technology

used in a business is that automation

applied to an efficient operation will

magnify the efficiency. The second is

that automation applied to an inefficient

operation will magnify the inefficiency”Bill Gates, Microsoft chairman

>”Innovation distinguishes between

a leader and a follower” steve Jobs, apple chairman

>”Success is walking from failure to

failure with no loss of enthusiasm” Winston Churchill, British prime minister

between 1940–45 and 1951–55

September 20–26, 2011 Business in Vancouver 13Business tool kit

Daily business news at www.biv.com September 20–26, 201114 SuStainability

www.stantec.com

Sponsor’s Message

Nigel HodgsoN, Practice leader

Buildings group, Vancouver

stantec is proud to contribute to the

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Protection and improvement of the environment for the benefit of our clients, our colleagues and our neighbors is core to our way of doing business. Whether we are protecting Howe Sound from copper pollution, helping to deliver a LEED platinum Convention Center, planning a new downtown Urban Development, creating a ground source energy system for a private school, conceiving a new biomass fuel district energy system for a university campus, taking part in an annual Bike to Work challenge, or actively reducing the environmental footprint of our offices, we will continue to advance our integrated sustainability message in everything that we design for the water that we drink, the routes on which we travel, and the buildings in which we live, work and play.

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When the rubber hits the roadSpurred by the voluntary efforts of local retailers, bike tire recycling is growing in British Columbia

By Ingrid de Jong Joffe

Wh i le most people know to return their

used car tires for recycling, bicycle tires often get tossed into the garbage and end up in the landfill.

Recently, the Tire Stew-ardship Council of BC (TSBC) announced a vol-untary bicycle tire recycling initiative that adds to an existing car tire collection infrastructure managed by the council. With the help of Western Rubber Prod-ucts (WRP), used bicycle tires and tubes can now be recycled with no eco-charge to the consumer or disposal fee for bike store owners.

“Bike tire and tube re-cycling is a great addition to our recycling program. It completes the life cycle of the product,” said Kirs-ten Blondal, sustainability co-ordinator for Mountain Equipment Co-op (MEC).

MEC encourages its em-ployees to find new ways to recycle material. Its bi-cycle tire recycling program began a few years ago, and the TSBC initiatives en-hance their ability to return more bicycle tires and tubes for recycling at no cost.

“Recycling fits into our sustainability mandate. Our employees are really en-gaged and excited to partici-pate and initiate programs,” said Blondal. “Our bike tire recycling program was spearheaded by one employ-ee that found a local plant that recycles the tires, which is pretty rare. He did his own research and originally loaded all the tires onto his own truck and personally took them to the plant.”

That plant is the West-ern Rubber Group in Delta.

For approximately 12 years it has been the only recy-cling business in the area that takes bicycle tires from stores and repurposes them into different products. The rubber is processed into a range of finely ground crumbs and then manufac-tured into running tracks, anti-fatigue mats, railway ties, speed bumps, play-ground tiles and more. They used to charge a fee for re-cycling as mandated by the TSBC until it lifted those fees.

This is welcome news to people like Bob Heilk-er, manager of Different Bikes in Vancouver, a chain of four stores. Each day, cy-clists come into his store to have flat tires repaired after run-ins with glass or other debris on the road or riding with under-inflated tires.

“I take tires in for repairs and for those that can’t be repaired, I take away for recycling,” said Heilker. “There are so many used tires that come into the shop that I don’t want to end up in the garbage. It hasn’t been a consumer-driven initiative but it’s something I do to get rid of them in an environ-mentally responsible way.”

In a week, staff members collect between 25 and 40 tubes and about 10 to 15 tires in the busy summer season. Different Bikes uses a deliv-ery van to drop them off at Urban Garage in West Van-couver to be taken away for recycling.

Stores are given specif-ic instructions on how to prepare the tires and tubes for recycling. It can be a time-consuming process but MEC employees have adopted it into their daily tasks.

“We have such a high level of commitment from our staff members,” said Blondal. “This is a task that the MEC employees take on

that shows how committed everyone is to sustainability and what they do to make it happen.”

For 1-800-GOT-JUNK, recycling and diverting

appropriate materials from the landfill are its man-date. “We try to recycle bikes or donate them to the BC Development Disabil-ities group,” said Richard Bender, owner, 1-800-GOT-JUNK Vancouver.

“Rubber is brutal on the environment. If we get bi-cycles then we can reuse it and donate it. If not, we sep-arate the different materials for recycling.”

Bender noted there is a growing awareness about the company’s recycling program that has become a main reason many custom-ers use 1-800-GOT-JUNK. “We offer recycling as part of our service and divert appropriate materials. We track recycling and have diverted 61% of items from the landfill. Our goal is to reach 80%.”

He added, “It is a func-tion of our resources to get rid of recyclable items in a timely manner. We get about four to five bikes a week and recycle the differ-ent parts if they are not sal-vageable for donation. We take the tires to gas stations and stores like Canadian Tire. It’s an opportunity to raise awareness to point-of-sale locations.”

For MEC members in Vancouver and North Van-couver, a bright pylon with a sign next to the front doors continues to spread the word about the bicycle tire recycling program.

“The container fills up quickly,” said Blondall. “It is a hugely popular pro-gram; our issue now is find-ing storage space for all the tires.” •[email protected]

Bob Heilker, owner, Different Bikes Vancouver: “it hasn’t been a consumer-driven initiative but it’s something I do to get rid of [bike tires] in an environmentally responsible way”

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“Bike tire and tube

recycling is a great

addition to our recycling

program. It completes the

life cycle of the product”

– Kirsten Blondal, sustainability co-ordinator,

MEC

SuStainability

NiNa WiNham

Fiction or future reality?

B.C. releases new wood-frame construction guideThe province has released a new wood-frame construction guide it claims will help residential builders shape better buildings.

On September 13, the provincial government released its Build-ing Enclosure Design Guide, which focuses on wood-frame, multi-unit residential buildings and offers “practical solutions to help ensure that new residential buildings are well-constructed for B.C. families and residents.”

The guide outlines the latest research, design and construction best-practices for building envelopes and is designed to be a key tool for construction industry insiders.

“The province is committed to working with industry to advance knowledge and generate new tech-nology, particularly when it comes to wood-frame construction, which is the predominant method of residen-tial construction in B.C,” said Rich Coleman, the minister responsible for housing.

“Our goal is to ensure that our residential buildings are among the most comfortable, durable and energy efficient in the world.”

The guide is available through the Homeowner Protection Office for $70.Thursday, September 14






September 20–26, 2011 Business in Vancouver 15SuStainability

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.

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a tool you may have used in strategic planning, and

which is often used in sustainabil-ity planning, is backcasting. You envision the future as you want it, then work backward to determine how to get there.

But what about envisioning the future you don’t want, and trying to figure out how to avoid it?

This summer I read a novel that had me backcasting furious-ly. Set in Bangkok a couple hun-dred years from now, The Windup Girl by Paolo Bacigalupi painted a picture that felt all too uncomfort-ably like a future we would never choose, but may be heading smack into. And the book gave plenty to consider about the role of business in shaping that future.

It’s a great read – good charac-ters, compelling plot, intrigue and drama. (It also won five awards and dozens of accolades from re-spected reviewers, so you don’t have to take my word for it.) The story and characters take preced-ence over the apocalyptic back-drop; far from preaching, this book leaves you wishing for more detail about the author’s well-im-agined future world.

It’s not a pretty one, unfortu-nately. But it is painfully believ-able: cheap, plentiful oil is a thing of the distant past. Government-regulated methane is available for high prices with appropriate per-mits; non-sanctioned methane can be used if you pay the bribes.

Somewhere in the distance, coal wars rage. The most available form of energy is human, either used directly (e.g. “treadle com-puters”) or transferred into “kink springs” which power every-thing from boats to ceiling fans to bicycles.

If you have a company with overhead fans to keep people cool, you likely contract a “winding man” to come daily and wind up the spring that keeps it going – a direct transfer of his energy

(calories) into your system’s storage spring energy (joules). Improving the efficiency ratio of calories to joules is at the forefront of techno-logical development. (And there is humour; the posse of “ballast men” who repeatedly run back upstairs to counter-weight an ele-vator in a rich man’s home, for example.)

The time we live in today is understood in the novel as a past era called “the Expansion.” Ex-pansion-era highrise towers have become slums; few wish to climb the miles of stairs, and there is no ability to perform maintenance on such towering monoliths.

There are artifacts left over from the Expansion – a rare diesel car moves through the book at one point, and there are images in a museum of smiling people enjoy-ing easy wealth.

The era that came after the Ex-pansion – “the Contraction” – is also now history. One character recalls how his Contraction-era grandparents would make several days’ journey – with no mechan-ized transport available – to visit abandoned Expansion suburbs in search of useable materials.

The book is set as some people are envisioning a new Expansion – there are kink spring vehicles, and traversing the world is once again possible by sail and dirigible. De-spite the obvious crash during the Contraction – about which, tan-talizingly, Bacigalupi only gives glimpses – people are adapting and moving forward.

It is a much-changed world, however, and this is where there are some chilling things for busi-ness to consider.

Most of the world’s cities that lay close to today’s sea level have disappeared underwater – New York, Mumbai, New Orleans, Ran-goon. Bangkok has protected itself with massive dykes and pumps, as a matter of national pride. Food is mostly produced from single-use

seeds engineered to be infertile. “Calorie companies” are hated,

to the point where being suspect-ed of being one of their agents – a “calorie man” – is to be at risk of death at the hands of angry cit-izens. Exactly why, we are never sure, but horrible plagues have swept the earth, kil ling both people and crops, and it appears the food companies, in their com-petitive efforts for supremacy and profit, intentionally released some of them.

Others, it appears, may be spawned by Mother Nature fight-ing back – unpredictably – against the intense manipulations of the genetic fabric of life. Food is con-stantly re-engineered; ensuring you have the latest “gene-ripped” product that is resistant to the newest agricultural scourges is part of normal grocery shopping. Fear of contagion is a constant backdrop.

Given this history, two politic-al departments are struggling for power: environment, which has sweeping powers over everything to do with carbon (e.g. methane use), agriculture, public health and more; and trade, which is press-ing to open Thailand’s closed bor-ders. The story’s plot plays out as the two clash, with a hidden Thai seedbank – rare authentic genetic material – one of the objects of corporate desire.

The story’s tit le character, Emiko, is one of the “New People” – herself a genetically modified human, bred for servitude. It is rumoured some New People have 10 arms, created for factory work, and those produced for military service are feared.

Emiko is an administrative model, created to provide services ranging from translation to escort and, above all, to be obedient (it is conjectured that Labrador genes were used to ensure her overriding need to follow orders).

Her place in the story – just one of several compelling char-acters including an aging Chi-nese refugee, a Midwestern calorie man working incognito to tap the seedbank, several champions of the Environment Ministry (and thus, Thai nationalism), and some assorted expats – makes us con-sider elements of what makes us human.

Is our ability to tinker with the building blocks of life itself part of the inevitable story of natural selection and adaptation? Or is it a perversion of that process? And where does private enterprise, and pursuit of profit, fit into this pic-ture as resources shift, govern-ment powers react, cheap energy wanes, and the population con-tinues to surge?

The story is fiction, yet wher-ever you cast your vision of the future, these are real questions we are facing. Read the book. It’s entertaining and, whether you’re a sustainability wonk or not, it lets you leap out of today’s pell-mell rush and ponder a future we could build, despite our best intentions. •

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

[With backcasting], you

envision the future as you

want it, then work backward

to determine how to get there.

What about envisioning a

future you don’t want and then

figuring out how to avoid it?

Biggest sales and managementtraining firms in B.C.

Ranked by number of local staff

Rank '11 CompanyAddress

Top localexecutive

Services Partial list of major clients Yearfounded

Ideal classsize

No. localstaff '11/'10

1 Corporate Play People Inc101-1865 Dilworth Dr Suite 225, Kelowna V1Y 9T1P: 866-351-7529 F: NP www.corporateplaypeople.com

Bryan Burns, chiefedu-tainmentofficer

Team building, HR and business consulting,corporate events, fun casinos, entertainment,company picnic and holiday parties

NP 2004 NP 43NP

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Barbara Ross-Denroche,president and CEO

Total leadership offering that takes acomprehensive approach to leadership andmanagement development

Cameco Corporation, Coast Capital, GoldcorpInc., Teck Resources, Kinder Morgan, New Gold,

2002 20 2321

3 UBC Sauder School of Business ExecutiveEducation1600 - 800 Robson St , Vancouver V6Z 3B7P: 604-822-8263 F: NP www.sauder.ubc.ca/Exec_ed

Bruce Wiesner,associate dean

Strategy, leadership, management, finance,marketing

Telus, BC Hydro, BC Assessment, BC Liquor,Aritzia, London Drugs, YVR, Vancouver CoastalHealth, Fraser Health, ICBC

1969 30 2221

4 Edge Training and Consulting Ltd134 Abbott St Suite 303, Vancouver V6B 2K4P: 604-683-6466 F: 604-683-6496 www.edgeltd.com

KirstyFarquharson,president

Content management, business processimprovement, strategic planning, performancemanagement, privacy implementation, customerrelationship management, contact centremanagement, knowledge management

BC Hydro, Fisheries and Oceans Canada, RCMP,UBC, Alderwoods Group, Lehigh Cement,REBGV, ITA, Intrawest, SFU, MTS/AT&T, BellCanada, Vancity

1987 10 to 15 2020

5 Corporate Explorer Training332 East Esplanade , North Vancouver V7L 1A4P: 604-924-4504 F: NP www.CorporateExplorerTraining.com

Kerry Ward, CEO Communication, project management,collaboration, time management, public speaking/presenting, team building, sales training,organizational development, strategic planning

Air Canada, Microsoft, Sony, UBC, Yokohama,Lululemon, Correctional Service of Canada,BCIT, Canadian Red Cross, Scotiabank, Statoil,Pepsi, BDO, DFAIT, Encorp, BCLC, EDC

2008 12 to 120 20NP

6 Priority Management - Vancouver11160 Silversmith Pl Suite 110, Richmond V7A 5E4P: 604-303-5963 F: 604-214-7773 www.prioritymanagement.com/pcg

Anson Frost,presidentLaura Ryane,manager ofoperations

Training courses in time (workload) managementusing MS Outlook, Lotus Notes and BlackBerry;project planning; customer service; sales andnegotiating; influencing; and meeting management.

Coast Capital Savings, Westminster Savings,Fraser Health, City of Vancouver, Governmentof Canada, BC LDB, Marine Harvest, bcIMC, VCC

1984 NP 1313

7 Wardell Professional Development Inc1200 73rd Ave W Suite 610, Vancouver V6P 6G5P: 604-733-4489 F: 604-648-9210 www.wardell.biz

Mark Wardell,president andfounder

Assisting in growth management in privateenterprises

Kin's Farm Markets, Mainland Machinery,Atomic Cartoons, Globe Printers

1988 NP 13NP

8 Wray Group1544 Marine Dr Suite 203, West Vancouver V7V 1H8P: 604-921-1321 F: 604-921-1341 www.wraygroup.com

Alex Wray, seniorpartner

Situational leadership, coaching skills training,team building, facilitation skills training

NP 1993 Unlimited 13NP

9 Insights Learning & Development Vancouver17 Fawcett Rd Suite 339, Coquitlam V3K 6V2P: 604-522-4229 F: 604-522-4230 www.insightsvancouver.com

Joyce Gwilliam,principal

Improved organizational performance byincreasing the effectiveness of individuals, teams,sales, leadership and managing organizationalchange

Municipal governments, Province of BC,Canada School of Public Service, ICBC, Ledcor,Great Canadian Gaming, multiple financialorganizations

2000 Individualcoaching tokeynotes

1110

10 Pauline O'Malley Enterprises Inc.666 Burrard St Suite 500, Vancouver V6C 3P6P: 800-998- 4547 F: NP www.PaulineOMalley.com

Pauline O'Malley,CEO and founder

Business development strategist and sales coachexclusively for privately owned B2B companies.Deliverables include coaching, consulting, training,workshops and webinars

RBC, Lamar, Kryton, MultiTrendsIT, InvestorsGroup, TEC-Canada, Gorski Bulk Transport,CMA, Packaging Logistics, Nexus Exhibits, BIV

1996 One-to- one 117

11 Dynamic Achievement Group Inc1296 Haywood Ave, West Vancouver V7T 1V1P: 604-926-6465 F: 604-922-3265 www.dynamicachievement.com

Eitan Sharir,president

Culture transformation, leadership, executivecoaching, strategic and advanced selling, serviceexcellence

TELUS, London Drugs, Corix, Interior SavingsCredit Union, PCL, Vancity, KwantlenUniversity

1994 NP 88

11 JTE Management Inc535 Howe St Suite 400, Vancouver V6C 2Z4P: 604-274-6610 F: NP www.jtemgt.com

Jim Fish, vice-president, sales

Financial and business literacy training, salestraining, simulation training, customized e-learning,private-labelled e-learning systems including on-boarding and compliance training

Molson, TSI, Smart Technologies, CoalfireSystems, Schulich School of Business

1996 20 to 500 88

13 Buckhiester Management Limited980 21st Ave W Unit 103, Vancouver V5Z 1Z1P: 604-757-3527 F: 703-348-4615 www.buckhiester.com

BonnieBuckhiester,principal

Consulting, developmental education to thehospitality industry in the field of revenuemanagement

Fairmont, Delta Hotels, Atlific, Tourism BC, BCHotel Association, Terminal City Club Hotel,Tourism Vancouver

1995 25 77

13 Catalyst Training Services Inc1200 - 73rd Ave W Suite 1100, Vancouver V6P 6G5P: 604-298-5505 F: 604-940-8035 www.catalysttraining.ca

Dan Monteiro,president

Leadership training for managers and supervisors,personality assessments for selection, coachingand succession planning process

ALS Laboratory Group, CKF Inc., Ecco HeatingProducts, Falcon Equipment, Freybe GourmetFoods, Honeywell Process Solutions, Intertek,JD Sweid, MCL Motorcars

1996 10 to 12 77

13 MDA Training Inc302 Water St Suite 300, Vancouver V6B 1B6P: 778-588-7230 F: 866-203-8715 www.mdatraining.com

Scott Powell,president

Financial leadership and business skills, training forcorporate and commercial banks, training forequity and asset managers, training for insurancecompanies

ICBC, ATB Financial, Brandes, Bank of AmericaMerrill Lynch, Accenture, BC Ferries, BritishAirways, CISCO Systems, Credit Suisse, JPMorgan, Siemens, Swiss Re, Tesco

1988 16 to 24 77

16 SFU Management and Professional Programs515 Hastings St W Suite 2300, Vancouver V6B 5K3P: 778-782-5095 F: 778-782-5098 www.sfu.ca/cstudies/mpprog

Susan Burgess,director,management andprofessionalprograms

Business and management, career and lifeplanning, justice and conflict resolution programs

NP NP NP 7NP

17 Kison Inc10551 Shellbridge Way Suite 35, Richmond V6X 2W9P: 604-284-5133 F: 604-284-5132 www.kison.com

Ralph Kison,president

Sales training, management and leadershipdevelopment, employee assessment andperformance coaching

Construction, Engineering, Architecture, HVACand Insurance companies

1991 Varies 58

18 Sandler Training/Trainwest Management &Consulting4170 Still Creek Dr Suite 110, Burnaby V5C 6C6P: 604 291-1272 F: 604-291-1279 www.trainwest.ca

Randy Hnatko,president and CEO

Sales and management training, coaching, businessconsulting

Burnaby Board of Trade, BFI Canada, GreatLittle Box Company, CHUM, Re/Max, KonicaMinolta, BC Government, BMO, InlandKenworth

2004 20 55

19 Campeau Learning and Development Inc1406 Magnolia Pl, Coquitlam V3H 4S8P: 604-944-0642 F: 604-944-0692 www.campeaulearning.com

Gregory Campeau,founder

Leadership, coaching, team-building,communication skills, time management, salestraining

Lafarge, NHL coaches, Finning, Terasen,Canadian and US federal governments, BCHydro, Royal Bank

1991 24 44

19 Life Strategies Ltd26907 - 26 Ave, Aldergrove V4W 4A4P: 604-856-2386 F: 604-856-2398 www.lifestrategies.ca

Roberta Neault,president

Training, human resources, e-learning, careermanagement, psychometric assessments

NA 1993 Unlimited 44

19 Walkabout Seminars International Inc265 15th Ave E Suite 303, Vancouver V5T 4K4P: 604-677-5272 F: 604-909-5201 www.michelleray.com

Michelle Ray, CEO In-house professional development training andconference keynote presentations, managementconsulting services - recruitment, retention,multigenerational workplace, leadership coaching

NP 1995 NP 44

22 Dale Carnegie Training of BC4710 Kingsway Suite 1028, Burnaby V5H 4N2P: 604-299-5115 F: 604-299-5657 www.bc.dalecarnegie.com

Paul Sinkevich,president

Business strategy, training and coaching RSL, Houle Electric, Cactus Club, DesignRoofing, Jeld-Wen, Esco, General Paint,Craftsman Collision,

1943 30 to 40 4NP

Sources: Interviews with above firms and BIV research. NP Not provided NR Notranked

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Daily business news at www.biv.com September 20–26, 201116 LiSt

Quarterly News Report September 20–26, 2011; issue 1143

MiningRepoRt

M&A to slow in second halfThe commodities boom led to a record amount of deals in the first six months of 2011, but investors are shying away amid increasingly volatile markets

By Joel McKay

Cash was exchanging h a n d s i n r e c o r d

amounts in the first half of 2011, but mining industry analysts say the rest of the year might not be so rosy.

Earlier this month, PwC released a new report that pointed to a slowdown in global mining mergers and acquisitions (M&A) in the second half of the year.

John Nyholt, PwC’s na-tional leader of transaction services, told Business in Vancouver the drop off in corporate transactions began immediately after the end of the first half.

In fact, PwC said, on aggregate, deal values and volumes were down 49% and 25% respectively in July and August.

“That’s pretty signifi-cant,” said Nyholt. “And the primary driver of that slowdown we believe is the rather fractured markets that we’ve seen in terms of global economic markets.”

He explained that on-going debt concerns in Europe and the U.S., plus fears in Canada about an economic slowdown, have triggered a new wave of volatility in public markets

that have caused investors to back away from deal-making.

“All of these things end up creating additional un-certainty in the market-place, and that makes it less likely companies are go-ing to move forward on the M&A front,” he said. “The mining sector is probably more [focused on] big bets, and you want some of those fundamentals to be in bet-ter shape before you make some of those big bets.”

Still, Ernst & Young’s (E&Y) Canadian mining leader Tom Whelan said things aren’t all bad in the Canadian mining sector.

In fact, Canada led the world in acquisitions (196) in the first half of the year, and was also the leading target dest inat ion (129 deals).

Whelan said although there were fewer deals in the first half of the year compared with 2010, the dollar value of deals was larger.

The total value of global mining transactions from Ja nu a r y to Ju ne more than doubled this year to US$96.3 billion compared with US$47.9 billion last year.

Whelan sa id the in-crease in deals focused on safe mining jurisdictions such as Canada is likely a result of investors increas-ing ly concerned about operations in developing nations.

“2011 saw a return to deals in lower-risk jurisdic-tions, which is why Can-ada topped the list,” said Whelan. “And that I think also speaks to the risk ap-petite that’s out there as people are obviously wor-ried about what’s going on in the global economy.”

Last week, E&Y said re-source nationalism topped its annual list of risks for miners.

“In the last four months, 25 jurisdictions around the world have introduced some form of additional taxation or royalty, and if you’re uncertain about what kind of tax regime you’re going into, natural-ly, you’re going to be a little more cautious about pull-ing the trigger on a trans-action,” Whelan said.

Still, the increase in risk-aversion in the sector could be good news for Vancou-ver’s throng of junior min-ing companies.

Nyholt said large min-ing companies might in-creasingly target junior companies as potentia l takeover targets because the deals are smaller and

don’t necessarily come with a heap of risk.

“Junior stage compan-ies are always good marks for being swallowed up by larger companies,” Nyholt said.

And even though the markets might cool off, he doesn’t believe the boom in mining transactions has come to a screeching halt.

“With increasing de-mand f rom China and some of the more signifi-cantly developing coun-tries like India and Brazil, that is going to fuel further demand for minerals, and more demand for the com-modity typically leads to more acquisitions.” •[email protected]

E&Y Canadian mining leader Tom Whelan: “companies have learned the lessons of 2007 and 2008 … and they’re really thinking through the deals”

New mining boss adopts “open dialogue” policyKarina Briño comes to B.C.’s mining industry with a strong pedigree in public policy and believes good communication with all stakeholders is the key to sector success

By Joel McKay

Forget the old boys club; the new voice of min-

ing in B.C. belongs to a woman.

Karina Briño joined the Mining Association of BC (MABC) as chief exec-utive in August, leaving be-hind a top-notch job at the Ministry of Energy Mines as an assistant deputy min-ister in the Mines and Min-eral Resources Division.

Briño, a sure-handed veteran of one of the most challenging public-policy sectors in the province, sat down with Business in Vancouver earlier this month to talk about her new role.

The 47-year-old native of Santiago, Chile, said she’s big on communica-tion, open dialogue and working with the vari-ous industry stakeholder groups to ensure the sec-tor continues its so-called renaissance.

In the past, Briño led t he implementat ion of B.C.’s mining plan, the core

public policy document that guides the ministry’s approach to the industry.

Now, she’s hopped to the other side of the fence where she’ll lobby on behalf of the province’s miners.

Why did you take this job?I have been attached to the industry for the last six or seven years, but my interest has always been in getting the complete picture.

So from the policy side this is what it looks like, from the regulatory side this is what it looks like, but I had never really experienced the business side of the industry so this brings it full circle.

see Improving, 18

My goal right now is to

be the best and most

effective voice for the

industry that I can be”

– Karina Briño,president and CEO,

Mining Association of BC

“The mining sector

is probably more

[focused on] big bets,

and you want some of

those fundamentals

to be in better shape

before you make some

of those big bets”– John Nyholt,

leader of national transaction services,

PwC

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How would you describe your role?[The role is] really to be the voice of mining, but in or-der to be an effective voice of mining we need to get out there and get to know people who are actually in-volved in mining.

You’ve said you always set ambitious goals for yourself and reach for the top. What’s the benefit of approaching a career that way?If you don’t allow yourself to dream, you’ll never get anything done; you have to strive for the stars. At the end of the day, my goals are really small, and if you set realistic goals for yourself it’s a lot easier to feel con-fident about what you can and can’t do.

My goal right now is to be the best and most effect-ive voice for the industry that I can be, but I’m not go-ing to do that by promising that I’m going to build three mines or four mines or 10 mines, that’s ridiculous.

There are tremendous opportunities here, but there is a lot of hesitation and a lot

of trust that needs to be built around some of the things we need to do.

B.C. is renowned for its mining history and geological roots, but every year the province’s mining industry suffers from ongoing land-use issues. Has government gone far enough in improving those issues?I can’t speak to what govern-ment has or hasn’t done. I have an agreement with the province that I will not com-ment on provincial policies.

How long is that agreement in place?Twelve months. But, having said that, where are we go-ing to focus our attention? Obviously that’s an issue that needs to be addressed. I think there are always op-portunities to improve our dialogue and make sure there is a clear understand-ing of what the rules of the game are.

British Columbia is very rich in mineral potential and there just might be areas where it’s more controver-sial or sensitive to allow cer-tain activities, but what we

should all expect is clarity around how land-use deci-sions are made.

What strengths do you bring to the industry side of mining from your time in government?The fact that I’ve spent a number of years on the gov-ernment side of the industry with a pretty strong know-ledge of how the regulatory system works and even how to navigate the system, I think it’s going to allow our-selves on the industry side to focus our attention on things where we can achieve some collective success in providing predictability and clarity on how the process works.

Where do you stand on improving the provincial and federal environmental assessment processes for industry?I think there is an oppor-tunity to ensure there is less duplication in the process and more timely decisions.

One of the things the in-dustry is accustomed to is that you don’t build a mine overnight. It’s a lengthy process, but if you have a

regulatory process that is not aligned or not in synch, that doubles the time.

How does the decision to axe the HST impact the mining industry?MABC has expressed its disappointment in the re-sults of the referendum as it compromises its com-petitive advantage. Having said that, we look forward to working with the prov-ince to ensure the transi-tion to the new tax regime is smooth and timely.

Are you at all concerned about the impact it could have on future investment in the B.C. mining sector?What I’m concerned about is that we do stay on top of things. This is one of those things where our role is to figure out what’s going to happen next and provide that information to invest-ors and potential companies coming into British Colum-bia. We continue to have the opportunities we had before we had the HST.

How are you going to work with government to avoid a repeat of decisions such as the ban on uranium exploration and mining in the Flathead Valley?It’s going to come down to ef-fective dialogue, timely con-versations and our ability to

Improving dialogue: Clarity needed around how land-use decisions are madefrom New, 17

provide prompt feedback and input into those dis-cussions. Other than that, I don’t think this is a situa-tion that is unique to Brit-ish Columbia. It happens everywhere. Governments make decisions, govern-ments change and govern-ments come and go.

The nature of what we do doesn’t change. The mineral potential is here, how we mine, when we mine, when the opportunities come, that doesn’t change. So our role will be to work with those bodies, federal muni-cipal and provincial, to en-sure we are staying true to our role to advocate for the industry.

How are you going to work with first nations to bridge the gap between the industry and aboriginals?I am quite excited about that opportunity. I have very, very strong commit-ment to open dialogue. I be-lieve all of our relationships begin with trust. I’m open for conversations.

Again, going back to the role of the association as the “voice of mining,” that voice will only be as good as our ability to listen, to hear what people are saying to hear their concerns and to have some very open and frank discussions. •[email protected]

Do

min

ic S

ch

ae

fe

r

Mining Association of BC CEO Karina Briño: “there are tremendous opportunities here, but there is a lot of hesitation and a lot of trust that needs to be built”

Daily business news at www.biv.com September 20–26, 201118 Mining

Sponsor’s Message

In an industry that’s ever-evolving it’s hard to predict what’s com-ing around the corner. And that’s what makes the mining and met-als industry so exciting — there’s never a dull moment. It’s also why Ernst & Young’s annual report Busi-ness risks facing mining and metals offers a snapshot of the top-10 risks facing the industry each year. While we can’t predict exactly where the industry will go, we can provide our perspective on the key risks fac-ing mining and metals companies based on our discussions with executives around the globe.

Resource nationalism jumped to the number-one risk spot this year. With strong commodity prices since 2009 and bare government treasur-ies, we’ve seen approximately 25 countries, including Ghana, South Africa, and Australia, announce plans to ramp up their taxes and royalties on mining projects — an added cost burden set to increase the complexity of multibillion-dollar investment decisions for long-life mines. But that’s not all. Govern-ments around the world have also been looking to increase local par-ticipation in projects.

The other interesting story of this year’s top-10 list is how quickly supply capacity constraint issues, including skill shortages, infra-structure access and capital proj-ect execution, have risen back to the top of the risk agenda. And it’s these supply side risks that speak to why we believe commodity prices will stay stronger for longer. Yet despite this, companies should still prepare for continued price and foreign exchange volatility in the short term. It’s also interesting to note what certain leading juris-dictions, such as Quebec and its “Plan Nord” initiative, are doing to strategically address these capac-ity constraint issues in Canada.

If last year’s spate of natural and environmental disasters proved anything, it’s that unpredictable and under-the-radar risks can cause the biggest challenges for mining and metals companies. While we’re starting to see a body of risk man-agement practices emerge around the world, several companies are still doing too little to address these up-and-coming threats. In today’s global business environment, being caught unprepared can mean far-reaching implications on cost, future supply and most important of all: share price.

Tom Whelan Partner, Ernst & Young Vancouver

Canadian Leader, Mining & Metals

Tom WhelanPartner,

Ernst & Young VancouverCanadian Leader, Mining & Metals

NEWS RELEASE

Allnorth Consultants Limited (“Allnorth”) is pleased to announce the successful acquisition of Axxent Engineering Ltd. Axxent was founded in 2006, and has been providing a wide range of services to the mining resource and forestry sector. Axxent brings over 45 highly motivated professionals to the Allnorth team, who are currently working on projects in British Columbia, Northwest Territories, Nova Scotia and Mexico.

Together we will provide our clients with a fully integrated engineering and technical services team in the following areas:

• Mechanical/Structural/Civil/Process/E&I Engineering• Environmental Permitting and Planning• Capital Cost Estimates• Project and Construction Management• Pre-feasibility and Feasibility studies

(NI43-101 compliant)• Constructability and Optimization reporting• Legal and Construction Surveying• Material Testing & QA/QC services• Planning & Scheduling• 3 D Scanning & Modeling

Allnorth will continue to provide services from the offi ce located in Surrey, British Columbia. Mr. Mark Dobbs, PEng, will assume the position of the Surrey Division Manager.

Allnorth looks forward to integrating our two teams into a single cohesive unit that will create exciting opportunities for our clients, employees and partners.

For additional information please contact Allnorth at 604-572-7722 or visit our website at www.allnorth.com

By Joel McKay

One of B.C.’s biggest coal play-ers saw its share value soar

earlier this month after rumours surfaced that it could be the sub-ject of a takeover bid.

The London-based Times re-ported that mining giants Anglo American PLC (LSE:AAL) and BHP Billiton (NYSE:BHP) were considering separate bids for Wal-ter Energy (TSX:WLT), an Ala-bama-based steel-making coal producer with three mines near Tumbler Ridge.

The rumours ignited an im-mediate frenzy of trading activ-ity in Walter shares, pushing the company’s stock value up more than 20% to $90.35 on Sept. 7.

The Times didn’t cite any par-ticular sources, but the rumours came during a less-than-favour-able summer for Walter, which has seen its share value drop 48% between May and August to a 52-week low of $69.54 amid

management trouble and share-holder discontent.

In July, Business in Vancouver reported the company’s Vancou-ver-based chief executive, Keith Calder, had resigned citing dif-ferences in “management phil-osophy.” (See “Walter Energy’s Vancouver-based CEO bows out amid takeover speculation” – issue 1134, July 19-25.)

Calder’s resignation came just months after a $3.3 billion take-over deal that saw his previous company, Western Coal, taken out by Walter.

In a one-on-one interview in June, Calder told BIV he had no plans to leave the company.

Within hours of his resigna-tion, rumours began to swirl that Calder’s departure was related to a potential sale of the company.

A week later, BIV reported that one of Walter’s key shareholders, London-based Audley Capital Advisors LLP, had urged the com-pany to put itself up for sale. (See

“Walter energy shareholders urges the company to sell” – issue 1135, July 26-August 1.)

In a July 17 letter to sharehold-ers, Audley claimed the company lacked “strong leadership.”

Davenport & Co. LLC analyst Christopher Haberlin told BIV at

the time that Calder’s departure increased the possibility that Wal-ter could be acquired.

Despite the recent surge in its stock price amid takeover ru-mours, Walter said September 7 it was “not aware of any corporate developments to account for” the

Walter Energy shares jump amid takeover speculationB.C. coal producer becomes subject of yet another bid rumour amid management upheaval

trading activity.Five days later, the company

named Walt Scheller, the com-pany’s president of U.S. oper-ations, its new CEO.

Walter’s stock value has since pared back to $82.48 per share.

Earlier this summer, the sector saw two major mining companies increase their stake in B.C. coal deposits.

In August, Anglo American announced a deal to take full con-trol of the Peace River Coal Part-nership, which operates the Trend mine near Tumbler Ridge.

A week earlier, Switzerland-based diversified miner Xstrata (LSE:XTA) paid $147 million to buy privately held First Coal Corp. and take control of its exploration properties in northeast B.C.

Mike Plaster, a Vancouver coal analyst with Salman Partners, said the recent merger and acqui-sition activity in B.C.’s coal sector highlights the strategic value of many projects.

Said Plaster: “I think the in-creased M&A activity that we’ve seen recently involving metallur-gical coal assets in general reflects the desire to secure additional supply in a rapidly consolidating market, particularly now that the equity prices of most of the pub-licly traded met coal companies have come off the highs earlier this year.” •[email protected]

Walter Energy, which has been the subject of recent takeover rumours, operates the three coal mines near Tumbler Ridge, B.C.

September 20–26, 2011 Business in Vancouver 19Mining

© 2011 Ernst & Young LLP. All rights reserved.

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Biggest mines in B.C.Ranked by number of mine employees in 2011

Rank '11 MineNearest town

Mine operator Yearfounded

Type ofoperation

Commoditiesproduced

Amounts produced '10 Years in operation/years remaining

Mine revenue'10

No. mineemployees '11

1 Highland ValleyCopperLogan Lake

Teck Resources Ltd550 Burrard St Suite 3300, Bentall 5, Vancouver V6C 0B3P: 604-699-4000 F: 604-699-4750 www.teck.com

2001 Open-pit mine Copper,molybdenum

99,000 tonnes of copper NP/14

$872,000,000 1,200

2 Fording River1

ElkfordTeck Resources Ltd550 Burrard St Suite 3300, Bentall 5, Vancouver V6C 0B3P: 604-699-4000 F: 604-699-4750 www.teck.com

2001 Open-pit mine Metallurgicalcoal

NP 42/33

$1,540,000,0002 1,1703

3 Elkview1

SparwoodTeck Resources Ltd550 Burrard St Suite 3300, Bentall 5, Vancouver V6C 0B3P: 604-699-4000 F: 604-699-4750 www.teck.com


NP 43/41

$990,000,0002 8904

4 Greenhills 1

ElkfordTeck Resources Ltd550 Burrard St Suite 3300, Bentall 5, Vancouver V6C 0B3P: 604-699-4000 F: 604-699-4750 www.teck.com


NP 29/18

$800,000,0002 6305

5 GibraltarWilliams Lake

Taseko Mines Ltd1040 Georgia St W, 15th floor, Vancouver V6E 4H8P: 778-373-4533 F: 778-373-4534 www.tasekomines.com

1966 Open-pit mine Copper,molybdenum

92.3 million pounds of copperand 941,000 pounds ofmolybdenum

8/27

$278,460,000 500

6 Line Creek1


2001 Open-pit mine Metallurgicaland thermal coal

NP 30/15

$510,000,0002 4806

7 Wolverine/Perry CreekTumbler Ridge

Walter Energy Western Coal7

885 Dunsmuir St, Suite 1000, Vancouver V6C 1N6P: 604-608-2692 F: 604-629-0075 www.westerncoal.com

1997 Open-pit mine Coking coal 2 million tonnes of coal 5/NP

NP 4348

8 Mount PolleyWilliams Lake

Imperial Metals Corp580 Hornby St Suite 200, Vancouver V6C 3B6P: 604-669-8959 F: 604-687-4030www.imperialmetals.com

2001 Open-pit mine Copper, gold,silver

34.8 million pounds ofcopper, 46,771 ounces ofgold, 206,812 ounces of silver

10/5

$164,091,000 367

9 Endako MineFraser Lake

Thompson Creek Metals Co Inc401 Bay St Suite 2010, Toronto M5H 2Y4P: 416-860-1438 F: 416-860-0813www.thompsoncreekmetals.com

NP Open-pit mine Molybdenum 10 million pounds ofmolybdenum9

46/16

$105,600,00010 336

10 Myra FallsCampbell River

Breakwater Resources Ltd95 Wellington St W Suite 950, Toronto M5J 2N7P: 416-363-4798 www.breakwater.ca

NP Undergroundmine

Copper, gold,silver, zinc

732,796 ounces of silver,20,003 ounces of gold, 32,686tonnes of zinc, 4,769 tonnesof copper, 511 tonnes of lead

NP/NP

NP 308

11 Kemess SouthSmithers

Northgate Minerals Corp815 Hornby St Suite 406, Vancouver V6Z 2E6P: 604-681-4004 F: 604-681-4003www.northgateminerals.com

1919 Open-pit mine Gold, copper 100,790 ounces of gold, 40.67million pounds of copper

12/1

$296,242,50011 300

11 TrendTumbler Ridge

Peace River Coal LP1055 Hastings St W Suite 1900, Vancouver V6E 2E9P: 778-786 7400 F: 604-688 5210 www.peacerivercoal.com

NP Open-pit mine Coking coal NP 5/NP

NP 3008

13 Coal Mountain1


2001 Open-pit mine Metallurgicaland thermal coal

NP 36/9

$510,000,0002 29012

14 CopperMountain13

Princeton

Copper Mountain Mining Corp700 Pender St W Suite 1700, Vancouver V6C 1G8P: 604-682-2992 F: 604-682-2993 www.cumtn.com

NP Open pit mine Copper NP 013/NP

$013 270

15 HuckleberryHouston

Imperial Metals Corp580 Hornby St Suite 200, Vancouver V6C 3B6P: 604-669-8959 F: 604-687-4030www.imperialmetals.com

2001 Open-pit mine Copper, silver,molybdenum,gold

45.5 million pounds ofcopper, 223,557 ounces ofsilver, 84,027 pounds ofmolybdenum, 3195 ounces ofgold

14/3

$164,020,000 245

16 Burnt River -BruleChetwynd

Walter Energy Western Coal7

885 Dunsmuir St, Suite 1000, Vancouver V6C 1N6P: 604-608-2692 F: 604-629-0075 www.westerncoal.com

1997 Open-pit mine PCI metallurgicalcoal

1.5 million tonnes 3/NP

NP 1718

17 QuinsamCampbell River

Hillsborough Resources Ltd14

355 Burrard St Suite 1100, Vancouver V6C 2G8P: 604-684-9288 F: 604-684-3178 www.hillsboroughresources.com

1995 Undergroundmine

Thermal and PCIcoal

NP NP/NP

NP 140

18 MaxMolybdenumRevelstoke

Roca Mines Inc1122 Mainland St Suite 490, Vancouver V6B 5L1P: 604-684-2900 F: 604-684-2902 www.rocamines.com

2002 Undergroundmine

Molybdenum 1.4 million pounds ofmolybdenum

3/10

$17,649,841 90

19 Orca QuarryPort McNeill

Polaris Minerals Corp1055 Georgia St W Suite 2740, Vancouver V6E 3R5P: 604-915-5000 F: 604-915-5001 www.polarmin.com

1999 Open-pit Constructionaggregates

NP 4/NP

NP 39

20 Gillies BayquarryVan Anda

Texada Quarrying Ltd15

PO Box 160, Van Anda V0N 3K0P: 604-486-7627 F: 604-486-7280

NP Open pit Limestone NP 59/NP

NP 302

21 QR Mine andMillLikely

Barkerville Gold Mines Ltd675 Hastings St W, 15th floor, Vancouver V6B 1N2P: 604-669-6463 F: 604-669-3041www.barkervillegold.com

NP Undergroundmine

Gold NP 1/NP

$8,074,494 10

22 PEM100 QuarryPort Hardy

Electra Gold Ltd2330 Tyner St Unit 5, Port Coquitlam V3C 2Z1P: 604-696-1022 F: 604-944-6102 www.electragoldltd.com

1978 Open-pit mine Aluminum silica 55,112 tonnes of chalkygeyserite (aluminum silica)

8/NP

$1,015,428 62

Sources: Interviews with mining operators and BIV research. NP Not providedNR Not ranked 1 - Operated by Teck subsidiary Teck Coal Ltd. 2 - BIV estimate 3 -1,1100 full-time plus 70 contractors 4 - Includes 860 full-time employees and 30contractors 5 - Includes 530 employees and 100 contractors 6 - Includes 430 full-time staff and 50 contractors 7 - Formerly Western Coal Corp., which was acquiredby Walter Energy in a $3.3 billion deal that closed April 1, 2011 8 - 2010 figure 9 -Amount includes production accounted to Sojitz Corporation of Japan which owns a25% stake in the mine 10 - In U.S. dollars 11 - Converted from U.S. dollars 12 -Includes 260 full-time staff and 30 contractors 13 - Began operations in June 2011 14- Acquired by Vitol Anker International BC in the fourth quarter of 2009 15 -Subsidiary of Lafarge Canada Inc

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, [email protected].

Biggest mines in B.C.

>Next week: Biggest financial planning firms in Metro Vancouver

Daily business news at www.biv.com September 20–26, 201120 LiSt

financing resources

Gordon ChambersMining and exploration financing deals help sustain economy in Vancouver

as global markets con-tinue to suffer through

uncertainties and turmoil, many mining companies have turned their eyes to Canada to raise funds.

Canadian markets are a viable and prolific source of funding for foreign mining companies, particularly for those aware of the advan-tages Canadian stock mar-kets present over their local stock exchanges. Many of these foreign companies are turning to Vancouver-based professional services com-panies in search of mining finance expertise, creating an often unseen but none-theless lucrative economic opportunity for Vancouver professionals.

One of the great strengths of Canadian capital mar-kets is that they will sup-port a mining project based on an assessment of its geo-logical merit and political risk, regardless of where it is located.

The local stock markets in many countries, includ-ing Australia, often fail to support companies with projects based in far-flung regions of the planet.

Other internationally minded stock exchanges, such as the London Stock Ex-change, tend to be successful capital-raising venues for only the biggest companies.

As a result, the Toron-to Stock Exchange (TSX) and the TSX Venture Ex-change (TSXV) are attract-ive to mining companies from across the world.

Offering unrivalled sector expertise, the two exchanges have the most diversified roster of public mining com-panies by commodity and stage of development.

Mining companies listing on the TSX benefit from ex-perienced mining analysts, specialized indices, flexibil-ity and tailoring of listing requirements not offered by any other global exchange.

In 2010, more mining companies were listed on the TSX and TSXV than any other market in the world, with 60% of the world’s min-ing equity capital – totalling $17.8 billion – being raised on these two exchanges alone.

In comparison, its nearest rival, London’s sub-market AIM exchange, raised only 7.5% of the mining world’s equity financing.

This strong grav ita-tion toward the Canadian

exchanges has continued unabated in 2011, with 123 mining companies listed in Canada by July.

A substantial number of foreign mining companies are coming to Vancouver for the professional services and merchant banking ad-vice they require for their financing.

These companies are often headquartered abroad and are raising funds for ex-ploration, surveys, feasibility studies and the development of projects mainly outside of B.C.

In fact, 50% of more than 9,500 mineral exploration projects held by TSX and TSXV companies are outside of Canada.

However, a significant volume of this professional and banking work is being channelled through Van-couver, which is a facet of the economy that many in our city are unaware of.

Companies are attracted to Vancouver for its reputa-tion as one of the world’s pre-eminent mining centres, and numerous leading mining companies are headquar-tered here.

For many of the almost 40 Australasian compan-ies listed on the TSX and TSXV, Vancouver’s profes-sional advisers offer another more practical advantage over competitors in Toronto: a more amenable time zone.

Being in the Pacific Time zone, several hours of the workday overlap with min-ing clients based in Western Australia, facilitating better client service.

For gold mining compan-ies in particular, the current market turmoil is a blessing.

It has resulted in a spike in the price of gold and in-creased demand for their shares.

Many copper producers (and those nearing produc-tion) have also seen rising demand for their shares.

However, the ability of companies to raise finan-cing in the current markets is commodity specific.

For example, uranium producers have faced great challenges in the aftermath

of Japan’s Fukushima disas-ter earlier this year.

Despite the market chal-lenges facing other indus-tries, the mining sector appears to be weathering the storm well. For the Canadian exchanges and Vancouver-based advisers in particular, their in-depth mining exper-tise has become a commodity

of its own, and is more at-tractive than ever to foreign mining companies looking to finance current operations and future growth.

Indeed, it would be fair to say that mining finance remains one of Canada’s great exports and one of Vancouver’s competitive advantages. •

Gordon Chambers is a Part-ner at Lawson Lundell LLP in Vancouver and head of the firm’s corporate finance and securities group. He has a particular focus on corporate finance for mining compan-ies with extensive experience advising dual-listed issuers. grchambers@lawsonlundell. com

Many of these foreign

companies are turning

to Vancouver-based

professional services

companies in search of

mining finance expertise,

creating [a] ... lucrative

economic opportunity for

Vancouver professionals

September 20–26, 2011 Business in Vancouver 21mining

Business in Vancouver September 20-26, 201122 AdvertiSing FeAture

FOCUSONSUCCESSn A d v e r t o r i A l p r o f i l e

What a difference a year makes! Last November, Va n c o u v e r - b a s e d

Hathor Exploration Ltd. (TSX: HAT) – a junior uranium mineral exploration company – updated the mineral resource estimate for its Roughrider uranium deposit, discovered in 2008 in northern Saskatchewan’s Athabasca Basin, the western world’s pre-eminent uranium producer and the world’s premier high-grade uranium exploration and mining district, period.

The results from Roughrider, located on Hathor’s Midwest Northeast property, were off the charts. The previous, preliminary mineral resource estimate included about 12 million pounds of ura-nium, but the updated estimate last November outlined more than double that estimate, including 10 million pounds in the indicated category and another 14 million pounds in the inferred category.

Then-COO Michael Gunning focused his energies in 2010 on building a team at Hathor capable of advancing the project using internal expertise. It worked. Geological modelling of a fully integrated and expanding explo-ration drill database established a framework to understand the dis-tribution of ultra-high-grade pitch-blende mineralization at the West Zone of Roughrider. The result: not only did the mineral resource esti-mate grow significantly, so did the understanding of zone continuity. In short, Roughrider didn’t simply get bigger, it also got better.

Bolstered by the positive results, Hathor forged ahead, making stra-tegic changes to its management to ensure it had a top-notch team in place. Gunning, a widely recog-nized expert in the uranium sector

and formerly with Teck, was pro-moted from COO to president and CEO, while Jim Malone, former VP of fuel procurement at Exelon, was made chairman.

And as Roughrider continued to grow via the discovery of the East Zone, Jay Fredericks, an expert in the fields of economic model-ling and regulatory framework for Saskatchewan’s uranium industry, was hired as VP of project devel-opment in order to initiate and steer an internal scoping study at Roughrider.

The company then embarked on an ambitious 2011 winter drill pro-gram, which included Roughrider’s East Zone and a new discovery in February: the Far East Zone. Initial exploration of this third mineral zone in the Roughrider system looked promising, and Gunning was optimistic about the eastward expansion.

“It is easy to see the resource potential at Roughrider East such that it could be as big as the original West Zone at Roughrider, or perhaps more,” he told the Northern Miner. “When you look at thickness, vertical extent, copper content, there is a lot of evidence that points to the East Zone being the meat of the Roughrider system in terms of fluid flux, fluid mixing and uranium.”

Uranium exploration and min-ing companies around the world felt the impact of the March earthquake in Japan, with share values plum-meting as investors panicked due to the pull-back in interest in uranium and nuclear in particular. Hathor saw its own shares drop 37% to $1.78 in two days of trading.

Speaking to Business in Vancouver on March 28, Gunning said, “The biggest impact of this event, sadly, is that although the supply-demand

fundamentals haven’t changed for uranium, access to capital has changed and that’s a situation we’re all going to have to grapple with.” But, he added, an ongoing uranium-supply shortage and a revitalized global interest in nuclear energy as a cost-effective, emission-free electricity source would con-tinue to drive growth and, as such, move the uranium price back up.

Indeed, as of late April, Hathor’s stock had recov-ered to $2.15 fol-lowing the com-pany’s gradua-tion from the TSX Venture Exchange to a full listing on the Toronto Stock Exchange. In addi-tion, Hathor received three mineral leases from the Government of Saskatchewan to cover Roughrider, marking a major milestone for the project with the issuance of the first new uranium lease by the province in some 25 years.

Like advancing to the TSX, con-version from claim is both time-consuming and costly, which is why it’s seldom done in the Basin. That said, it’s a necessary step to achieving the rights to extract minerals from a property; that is, to build a mine. The lease conversion, along with the move to the big board, told both the market and the mining industry that Hathor is a serious and going concern.

Another milestone was met in April when Hathor announced it would acquire Terra Ventures Inc., the investment company that had owned a 10% interest in the Roughrider deposit. Consolidating 100% interest in Roughrider estab-lishes a clean ownership struc-ture on a discovery that’s rapidly gaining global recognition in the

industry. In this case, the sum is greater than the

parts and, as Gunning says, “In the world of mining, the difference between owning 100% versus 90% is a lot more than 10!”

In May, the final assay results from the 2011 winter drill program at Roughrider revealed that the Far East Zone established significant new potential for the overall min-eral resources for Roughrider. May turned into an even bigger month for the company with the comple-tion of the first mineral resource estimate for the East Zone, which added some 30 million pounds to the project, inferred category, and very high grade at nearly 12% U308. Overnight, Roughrider nearly doubled in size. The news sparked Dundee Securities analyst David Talbot to raise his 12-month share target price for Hathor to $5.60 per share.

By June, Hathor was set to embark on an extensive drill program in the Far East Zone while simultaneously transitioning from its own internal scoping study of the East and West zones at Roughrider to an inde-

pendent and NI 43-101-compliant Preliminary Economic Assessment. By summer’s end all 19 holes at Far East came back with uranium mineralizion, some with truly best-of-breed, world-class grade and thickness intersections. Indeed, Far East has the potential to make a material difference to the over-all mineral resource potential for Roughrider. And it’s still growing, still open, with aggressive drilling planned for this winter.

What a difference a year makes is right. A resource growing nearly five-fold from the first estimate, mineral leases obtained, big board exposure on the TSX established, an unsolicited, all-cash offer from one of the world’s largest publicly traded uranium companies and, just days ago, an independent economic assessment study (PA) delivering a robust model that establishes Roughrider as poten-tially one of the lowest-cost – if not the lowest-cost – uranium producer in the world. Wow. With this track record, the message to shareholders in light of the hostile from Cameco is clear: hold on to your HAT! •

Above: Aerial view map of Roughrider Uranium Deposit Left: Core from Roughrider with U-shape mineralization

Best of breed just keeps getting better at Roughrider With a stellar year behind it, junior uranium mineral explorer Hathor Exploration gears up for more success in 2012

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SERVING THE MINING AND RESOURCE INDUSTRIES

BREAKING GROUNDResource industry in brief

Gargantuan goldPerennial precious met-als explorer NovaGold Resources (TSX:NG) has unveiled another whopper of a mine project.

Earlier this month, the Vancouver-based company, which is known for its trove of high-value resource projects, published an updated feasibility study for its massive Donlin Gold project in Alaska.

The updated project is expected to cost some US$6 billion, including US$1 billion for a 500-kilometre-long natural gas pipeline from Cook Inlet to the mine site.

NovaGold president and CEO Rick Van Nieuwenhuyse said although the project costs more than the 2009 US$4.5 billion estimated cost, that project estimate didn’t include the natural gas pipeline.

Van Nieuwenhuyse said the revised price tag for the project, which is a partner-ship between NovaGold and Barrick Gold (TSX:ABX), is in line with today’s capital costs.

“The increase in the projected capital cost represents a fraction of the increase in the intrinsic value of the gold endowment at Donlin,” he said.

The company said the project contains 38 million ounces of gold.

In July, NovaGold released an updated pre-feasibility study for its Galore Creek copper-gold project, envisioning a mine that would cost $5.16 billion. At press time, NovaGold’s shares were valued at $8.48.Joel McKay

IroncladAlderon Resource Corp. (TSX-V:ADV) said earlier this month its Kami iron

ore project would cost US$989 million to build.The junior company, which is based in

Vancouver, issued the results from a prelimin-ary economic assessment (PEA) September 8, outlining a mine that would produce eight million tonnes of iron ore per year at a 65.5% grade.

The company said production of the mine would commence in 2015 and last more than 15 years.

Alderon said the current net present value (NPV) of the project tops US$3 billion.

“We are very excited to see such a high NPV, especially since this PEA is only based on the Rose Central zone of the Kami property. There is significant upside once we include North Rose and Mills Lake,” said Tayfun Eldem, Alderon’s president and CEO.

The company expects to have a full feas-ibility study completed by the third quarter of 2012.

At press time, Alderon’s shares were valued at $3.32. •Joel McKay

Resource nationalism tops mining risks: Ernst & YoungResource nationalism is now the top risk for the mining industry, according to Ernst & Young’s annual report, Business Risks Facing Mining and Metals 2011-2012.

Tom Whelan, leader of Ernst & Young’s national mining and metals practice, said the growing risk isn’t from countries nationalizing their resources but from governments looking for a return through taxes and royalties.

“Just in the last four or five months, there have been over 25 countries that have announced intentions to increase their gov-ernment royalties or taxes,” he said.

Examples of this activity include South Africa’s new royalty regime and Ghana’s plans to double royalties.

The trend, Whelan said, is being driven by cash-strapped governments viewing the min-ing industry’s recent success.

In descending order, the top 10 risks the report identifies for mining for 2011-2012 are: resource nationalism, skills shortage, infrastruc-ture access, social licence to operate, capital project execution, price and currency volatility, capital allocation, cost management, interrup-tions to supply, and fraud and corruption.Jenny Wagler

September 20–26, 2011 Business in Vancouver 23mining

Business in Vancouver September 20-26, 201124 AdvertiSing FeAture

FOCUSONSUCCESS

Copper Mountain Mine’s first copper shipment reflects four and a half years of hard work

The Vancouver-based company is rampimg up to full production at its Copper Mountain

Mine in Southern B.C. and continues exploration for additional mineral resources

n A d v e r t o r i A l p r o f i l e

In early September 2011, just 16 months after receiv-ing permits to build its

copper-gold open-pit mining project near Princeton, British Columbia, Copper Mountain Mining Corporation. (TSX:CUM) completed loading its first ship-ment of concentrate bound for Japan.

That timeframe is a rela-tive blink of an eye in terms of achieving any milestone in the mining industry, let alone constructing and advancing a mine to production.

Vancouver-based Copper Mountain’s progress is doubly impressive considering that the company only began develop-ing the project, which required $438 million in capital costs, in 2007 – just as economies across the globe were falling into recession.

Describing how the company managed to maintain such a tight development timeline, Jim O’Rourke, President and CEO of Copper Mountain, recalled a speech he delivered in early 2011 to engineering sutdents at his alma mater, the University of British Columbia.

“I explained to them how important it is to acquire a deeply thorough knowledge of any project you’re involved in,” said O’Rourke.

“When you begin a project, be certain that you have every inch and every angle of the concep-tual plan figured out. If you’re confident that you’re numbers are right, then go for it.”

At full production, Copper Mountain will be Canada’s third-largest copper mine.

It’s made up of a five-billion pound copper resource and scheduled to produce approxi-mately 105 million pounds of copper annually with gold and silver credits.

From the raw resource, the company is aiming to ship approximately 175,000 tons of concentrate each year.

Construction of the mine required more than one million logged hours of labour, which was undertook primarily by local workers in the area – where a rich history of mining expertise exists – and from workers throughout the province of B.C.

In May 2010, Mitsubishi Materials Corporation., a 25% partner in the project, secured US$322 million debt financing for the mine from Japanese banks and JBIC, the Japan’s governmental credit agency for overseas investments.

Mitsubishi’s agreement dem-onstrated confidence in Copper Mountain’s management team and provided the funds to stay on track with the development schedule – during a time when conventional bank debt was not available.

“Having Mitsubishi join the project really added the strength we needed to complete it,” said O’Rourke.

“That saved us from having to issue excessive shares and dilute the company’s stock. We’ve managed to take the project from exploration to production while only issuing roughly 100 million shares.”

A syndicate network of invest-ment firms in Canada helped secure the 25% equity financing required for the project.

Copper Mountain came to the financial arena in a period of depressed metal prices and worldwide banking turmoil that made the financing of any new mine difficult.

Underwriters were attracted to the project largely by the involvement of O’Rourke and the tight-knit team of mining experts that surround him.

O’Rourke has been involved in the startup of seven major mines on three continents during his 47-year career.

He and his team also have extensive experience with the Copper Mountain area.

As President of Princeton Mining Corporation from 1987 to 1997, O’Rourke was respon-sible for the acquisition of the Copper Mountain open-pit cop-per mine from Newmont in 1988.

One of the first things that O’Rourke did upon acquir-ing the mine was fly to Japan to personally tell the mine’s existing Japanese buyer of the concentrate, Mitsubishi, that Princeton Mining Corporation would honour all of their exist-ing contracts.

O’Rourke’s professional ges-

ture impressed the Japanese partner – and initiated what would become a fruitful part-nership between O’Rourke and Mitsubishi.

The mine closed in 1996 due to low copper prices and the need for a large capital injection for upgrades.

However, O’Rourke believed there was much more high-qual-ity ore that could be accessed with improved technology and higher copper prices.

In 2006, he seized the oppor-tunity with Copper Mountain CFO Rod Shier to acquire the mine again, this time under the banner of Copper Mountain Mining Corporation.

“We all know the property very well and were confident in the resource, because we’ve all been involved with it previ-ously,” said O’Rourke.

“But in 2007, we were a new junior mining company on the stock exchange with a market

cap of $40 million and we were looking to do a $438 million project. A lot of people didn’t take us seriously.”

The subsequent drilling con-firmed the economic viability of creating a “super pit” by merg-ing the three existing pits into one deeper and wider pit.

In 2009, the company announced a 45 per cent resource increase, composed of five bil-lion pounds of copper, nearly 500,000 ounces of gold and 4.5 million ounces of silver.

When O’Rourke and Shier approached Mitsubishi with their updated resource and fea-sibility

study, the Japanese conglom-erate signed on as a 25 per cent partner.

As well as a partner, Mitsubishi agreed to purchase 100 per cent of Copper Mountain’s copper concentrate for its Japanese cop-per smelters.

The initial feasibility study for Copper Mountain was based

on copper selling at $1.80 per pound, but the bank dropped it to $1.60 per pound to be conservative.

When the mine opened in August 2011, copper was selling at close to $4 per pound, provid-ing a very healthy margin.

Copper is a vital metal in many industries from electronic and telecommunications equip-ment to residential and com-mercial construction.

Copper Mountain is confident there is substantial explora-tion potential remaining at the mine.

There are still a number of near-surface zones of miner-alization that have not been fully tested.

As well, a number of outlying geophysical anomalies have yet to be explored.

“One thing we want to do is make sure we maximize the resource,” said O’Rourke.

“We still have a lot of targets to drill.” •

The company only

began developing the

project, which required

$438 million in capital

costs, in 2007 – just

as economies across

the globe were falling

into recession.

Aerial shot of the new concentrator building that will be processing 35,000 TPD and the coarse ore stock pile, looking south.

An interior view of a portion of the new process plant: SAG mill on the left, ball mill on the right, and concentrate thickener in the foreground.

(left to right) Copper Mountain Ambassadors alongside Consulate General of Japan, Hideki Ito, President & CEO of Mitsubishi Materials Corporation, Hiroshi Yao and President & CEO of Copper Mountain Mining Corporation, Jim O’Rourke.

September 20–26, 2011 Business in Vancouver 25LawTrouble

DISCIPLINE•British Columbia Securities CommissionThe executive director of the British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that a Bahamian company breached securities laws by engaging in trading and advising in securities within B.C. without being registered, the regulator announced September 7.

The notice alleges that Gibraltar Global Securities Inc., a company registered in the Bahamas that provides offshore securities brokerage, investment management and advisory services, carried out trades and provided securities advice on behalf of B.C. residents without being registered to do so.

Furthermore, the notice alleges that the company refused to provide information regarding its B.C. clients to the BCSC and the Securities Commission of the Bahamas (SCB).The notice also states:• in 2010, the SCB performed an inspection of Gibraltar’s offices, during which it found some of the information requested by the BCSC. The inspection

was unrelated to the BCSC’s 2009 request.• on January 20, 2011, the SCB provided the BCSC with information disclosing that at least 16 B.C. residents were the beneficial holders of Gibraltar accounts. The BCSC later learned the identities of three more B.C. residents who hold Gibraltar accounts.• of the 20 B.C. residents known to hold Gibraltar accounts, one has been convicted of wire fraud and securities fraud in the United States, another is the subject of a BCSC hearing for which the decision is pending, and a third is the subject of a BCSC investigation for market manipulation that involved the deposit of securities in a Gibraltar account by a B.C. reporting issuer.• on August 5, 2011, the BCSC issued a freeze order under section 151 of the act against Gibraltar’s accounts at a Vancouver brokerage firm, freezing approximately $2.2 million.

The notice states that Gibraltar’s refusal to provide the BCSC with the names, account information and account statements for all B.C. residents who have beneficially held accounts with it makes Gibraltar

unsuitable to engage in securities-related activities in, or connected with, B.C.These allegations have not been proven.

BUYER’S ALERTCompanies listed below, which are not members of the Better Business Bureau, have failed to respond, as of September 9, 2011, to Better Business Bureau of Main-land B.C.’s efforts to medi-ate complaints from August 29 to September 02, 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.A Budget Inn Patricia, VancouverAnderson Sod Farm Ltd., DewdneyAny Season Holdings Inc., Williams LakeApsolute Communications, RichmondB&M Auto Accessories, Salmon ArmBaby Planet Boutique, Salmon ArmBernhard + Zanders Hair

Design, Port MoodyBlue Green Clean Team, New WestminsterBlue Heron Waterfront Pub and Restaurant, VernonCamtex Camera Inc #201, VancouverCana Creek, VancouverCatalina Pool & Spa Ltd., Maple RidgeCatherine’s Bed & Breakfast, VancouverChatters Salon, SurreyChoices Interior Decorating Inc., BurnabyClover Glass Ltd., Port CoquitlamCoast Solarium & Patio Inc., LangleyConsumersReward Solutions, VancouverCo-Operation Garments Distributor Ltd., RichmondCore Education & Fine Arts, LangleyCornerstone Excavating Ltd., West KelownaDependable Doors Maintenance Ltd., LangleyDr. Defog-it, BurnabyEarls on Broadway, VancouverFiber Renew Fraser Valley, ChilliwackHummingbird Medi Spa, KelownaIn Again Clothing (Fashion), VancouverJean-Paul Gravel Home Improvement & Custom Woodwork, VancouverK&R Marine Ltd., Kelowna

KAL TIRE, CoquitlamKarma Optical, VancouverKascadian, West VancouverKennedy Kobbler Shoe Repair, DeltaKerrisdale Cleaners Ltd., VancouverKitchen Corner Super Store, VancouverMSA Moving & Storage Ltd., AbbotsfordMalibu Investments, RichmondMcFarlane Accounting Solutions, VanderhoofMetro Law Office, LLP, BurnabyMicrotech Technologies Co., VancouverMister Dragon Furniture, RichmondMorrey Nissan of Burnaby, BurnabyMountain Masonry Construction, NelsonMountain Medical Supplies & Equipment, KamloopsNew York Fries, BurnabyOcean View Large Cottage, GibsonsPhoenix Roofing, VernonPlentyoffish Media Inc., VancouverPort Moody Locksmith Pro’s, Port MoodyR and S Landscaping, AbbotsfordRaeJen Contracting Ltd., PentictonRelocation Services Canada, VancouverSparkle Shine Reliable Cleaners, New

WestminsterStar Rebates, BurnabySunquest Vacations, VancouverThe Canadian Society of Immigration Practitioners, VancouverTrident Electric, New WestminsterVancouver Chair Covers, VancouverWish Canada Recruit Inc., VancouverYearBook Alive, RichmondThe following compan-ies have responded to the BBB subsequent to being published:Chilliwack Motor Inn, ChilliwackCloverdale Computers, SurreyUnique Marketing, SummerlandWindsor Security Ltd., Surrey

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: Victor Lansdown Address unavailable

Plaintiff: International Partners for Life Corp.

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Daily business news at www.biv.com September 20–26, 201126 Law

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Trouble

LawsuiT of The week

Saddle slip-up lands horseback company in courtA North Vancouver fitness instructor has filed suit against a Langley horseback riding company after she fell off a horse.

According to a July 21 B.C. Supreme Court notice of civil claim, Sandra Starrett has alleged that Langley’s Back in the Saddle Again Horse Guiding, Kenneth Darcy Campbell and Cynthia Doe are responsible for injuries Starrett received during a ride in 2009.

The claim alleges that on Oct 12, 2009, Starrett was on a guided horseback ride when a fellow rider asked to dismount a horse to stretch.

Starrett alleges she dismounted as well, and then asked for assistance from Doe to remount the animal.

She further alleges she had one foot in the stirrup when the saddle slipped from Doe’s control, startling the horse, causing it to bolt and throw the plaintiff.

Starrett claims she suffered neck, back, shoulder, arms and other injuries.She is seeking damages for pain, suffering and other injuries, as well as an in-trust award for

family members and friends who have provided services as a result of the injuries, an award for dimunition in the ability to carry out household tasks, and a tax gross up and management fee.

A notice of response had not been filed by press time.

and Kimberley Arnett 300–1122 Mainland St., Vancouver

Claim: $303,980 for a shareholder loan; $36,673 for cremation, funeral, mail forwarding and utility expenses.

Defendants: Whitestone Management Ltd. and Jia Guo 2236 E. 52nd Ave., Vancouver and address unavailable

Plaintiff: Arman Shafazand carrying on business as Competitive Quality Contractors 3155 Silverthrone Dr., Coquitlam

Claim: $137,405 for labour and construction materials; and a builders lien for $127,494.

Defendants: AG Marketing Inc. and Andrew Lis Box 138, Qualicum Beach and 1859 Harness Rd., Qualicum Beach

Plaintiff: Blake, Cassels &

Graydon LLP 2600–595 Burrard St., Vancouver

Claim: $74,658 against AG Marketing, arising from a retainer agreement for legal services; a declaration the purported transfer of the AG Marketing Settlement amount was fraudulent and of no force and effect; a declaration that Lis holds the settlement amount in trust for AG Marketing; an order; and an injunction, or, damages, or, $10,000 against AG and Lis pursuant to the promissory note and guarantee.

Defendants: Christopher James Smith and Edward Smith and CJS Ventures Inc. 13678 Malabar Ave., White Rock and 15007 Southmere Close, Surrey

Plaintiffs: Gurdip Singh Dhaliwal and Onkar Singh Cheema

5680–145A St., Surrey and 8164 123 St., Surrey

Claim: $69,000 for debt under a loan agreement.

Defendants: Deltalok Inc. and Deltalok Green Inc. and Deltalok Eco-Systems Inc. and Deltalok Supply (B.C.) Ltd. and Deltalok Systems Inc. and Hun Su Kim 125 Charles St., North Vancouver

Plaintiff: JP Gordon Consulting Ltd. 620–375 Water St., Vancouver

Claim: $42,786 for debt for consulting services; payment for any outstanding invoices; and damages.

Defendant: O.K. Tour Company Ltd. 208–15290 103A Ave., Surrey

Plaintiff: Western Bus Lines Ltd. 700–686 W. Broadway, Vancouver

Claim: $37,272 for debt for charters of commercial coaches.

Defendants: Whitestone Management Ltd. and Xiao Yan Liang 2236 E. 53rd Ave., Vancouver and 2354 Nelson Ave., West Vancouver

Plaintiff: Arman Shafazand carrying on business as Competitive Quality Contractors 3155 Silverthrone Dr., Coquitlam

Claim: $36,237 for construction work; and a builders lien for $36,237.

Defendant: Gouping Zhu aka Guo Ping Zhu 607–7555 Alderbridge Way, Richmond

Plaintiff: Bellagio, LLC 1095 W. Pender St., Vancouver

Claim: $35,224 for a Nevada judgment.

Defendants: 767043 B.C. Ltd. and Christopher Paul Bragg and Denika Doiron 301–321 Wallace St., Nanaimo and 2320 Whitney Rd., Nanaimo

Plaintiff: Toronto-Dominion Bank 2500–700 W. Georgia St., Vancouver

Claim: $30,470 and $317 for debt related to a line of credit.

Defendants: Vapoex Performance Packaging Ltd. and David Miskulin aka David R. Miskulin Box 21059, 1873 Spall Rd., Kelowna and 173–1865 Dilworth Dr., Kelowna

Plaintiff: Toronto-Dominion Bank 2500–700 W. Georgia St., Vancouver

Claim: $26,641 for debt related to a line of credit.

Defendants: D&D Transportation Ltd. and Donald Dandenault aka Donald A. Dandenault and Donna Lynn Dandenault 201–101 1st St. E., Revelstoke, Box 2639 and 431 Reighmount Dr., Kamloops

Plaintiff: Toronto-Dominion Bank 2500-700 W. Georgia St., Vancouver

Claim: $21,210 for debt related to a line of credit.

Defendants: Boundary Custom Homes Ltd. and Harvinder Singh Deol 200–8120 128th St., Surrey and 9777 160A St., Surrey and 3090 Wellington St., Port Coquitlam

Plaintiff: Srpko Rakita dba Art Rock Construction 14068 Kindersley Dr., Surrey

Claim: $20,560 for debt for a stonework improvement; and a builders lien for $20,650.

Defendant: The Owners, Strata Corporation NWS3378 11580 Burnett St., Maple Ridge

Silvercorp faces more fraud allegationsSilvercorp Metals’ (TSX:SVM) share value edged upward Wednesday after it responded to a second set of fraud allegations.

The accusations, pub-lished by Alfredlittle.com, allege that the Vancouver-based mining company has misreported production and resource estimates at its mines in China and that its sales came from “two ques-tionable” customers, among other things.

Silvercorp has responded by publishing a 23-page report on its website coun-tering all of the allegations.

Silvercorp said the RCMP, BC Securities Commission and FBI were attempting to determine the identity of the anonymous authors of the report.Thursday, September 15






September 20–26, 2011 Business in Vancouver 27Law

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Trouble

Plaintiff: Pacific Peaks Roofing B.C. Ltd. 20572 96A Ave., Langley

Claim: $18,385 for debt for a roof replacement and restoration work; and a builders lien for $18,385.

Defendants: Timberview Developments Ltd. and Alan Darryl Vandermolen and Lucinda Kang Box 879, 710 Memorial Ave., Qualicum Beach and 3341 Panorama Ridge, Whistler and House 1, Emerald Ridge, 9 Cape Dr., Chung Hom Kok, Hong Kong

Plaintiff: Modern Aluminum & Vinyl Products Ltd. 440–319 W. Pender St., Vancouver

Claim: $15,860 for debt for the supply of aluminum windows and doors; and a builders lien for $15,860.

Defendant: John Doe Address unavailable

Plaintiffs: Kwantlen University College Student Association and Balninna Sandhu Room G1240, 12666 72 Ave., Surrey

Claim: Injunctions arising from a defamatory website; and damages.

Defendant: Ausenco Engineering Canada Ltd. 855 Homer St., Vancouver

Plaintiff: Charles Birt 2445 Belloc St., North Vancouver

Claim: Debt under an employment contract for Birt’s position as president of the company, following Birt’s position being declared redundant; and/or damages.

Defendants: Deltalok Inc. and Deltalok Green Inc. and Deltalok Eco-Systems Inc. and Deltalok Supply (B.C.) Ltd. and Deltalok Systems Inc. and Hun Su Kim 125 Charles St., North Vancouver

Plaintiff: Environmental Management Systems LLC dba EMS Green 620–375 Water St., Vancouver

Claim: Damages arising from breach of a contract for an engineering product.

Defendants: Johnny Ho Cheung Wong and Kit Bing Lai and Kenneth Wayne Starr and Sandra May Cusak (nee Starr) and Peter Franz Bachmann and Carmel Philomena Bachmannj and Doris Wong and ABC Co. and Candice Searcy and David Boyes and Jennifer Searcy and Golden Leaf Electrical Services Ltd. 961 Broadview Dr., North Vancouver and 950 Broadview Dr., North Vancouver and 1005–320 Royal Ave., New Westminster and 210–20 East St., North Vancouver and 1155 W. 50th Ave.,

Vancouver and 805–2020 Bellwood Ave., Burnaby and address unavailable and 101–1610 Chesterfield Ave., North Vancouver and 35199 Skeena Ave., Abbotsford and 84–8400 Forest Grove Dr., Burnaby

Plaintiff: Cora Rachelle Boyes, an infant, and Ellen Boyes, litigation guardian 600–1125 Howe St., Vancouver

Claim: Damages for injuries suffered when the plaintiff came into contact with an electrical cord.

Defendants: Westfair Properties Ltd. and Loblaws Inc. and Valley Properties Ltd. and The Real Canadian Superstore and John Doe and Jane Doe and ABC Ltd. 19851 Willowbrook Dr., Langley

Plaintiff: Kari Lorraine Dayton 3–112 Tache ave. N.W., Calgary

Claim: Damages for injuries suffered when the plaintiff, while walking through a department store at or near a produce department, was injured by a piece of metal protruding from a produce bin.

Defendants: Global Mobility Laboratory Pte. Ltd. and Healthcare Messaging Systems Pte. Ltd. and Peter So Ka Lun and Patricia So Mei Chan 128 Bishan ST. 12, 15-231, Singapore and 205A Thomson Rd., Goldhill Shopping Centre, Singapore and 6122 Beatrice St., Vancouver

Plaintiff: Healthmetrx, Inc. 307–2083 Alma St., Vancouver

Claim: A declaration the transfer of the business and assets of HMS to Global, which occurred during arbitration between HMS and the plaintiff, was a fraudulent conveyance and is void and of no effect as against the plaintiff; and an order.

Defendants: WestJet Airlines Ltd. and ABC Corp. #1–2 and John Doe 2200–1055 W. Hastings St., Vancouver and addresses unavailable

Plaintiff: Deborah Butkowski 780 E. 38th Ave., Vancouver

Claim: Damages for injuries the plaintiff sustained when during a flight the passenger in the seat in front moved their seat back, causing hot water to spill onto the plaintiff.

Defendant: Cascade Resources Ltd. 2080–770 Hornby St., Vancouver

Plaintiffs: Eldore Mining Corp. and Sagacity Holdings (New Zealand) Ltd. and Mining Consultants Ltd. and Timothy Collver and Nalesbitan Mining Corporation Pty Ltd. 5th floor, Maripola Bldg., 109 Perea St., Legaspi Village, Makati City, Philippines and 78 Titirangi Rd. New Lynn, Auckland and 1st floor, Lolam House, Lini Hwy., Box 1019, Port Vila, Vanuatu and 202-8 Thomas St., Chatswood, New South Wales, Australia

Claim: Specific performance of the May Agreements, arising from breach of contract, or, damages.

Defendants: City of Vancouver and Coast Mountain Bus Co. Ltd. and South Coast British Columbia Transportation Authority (TransLink) 453 W. 12th Ave., Vancouver and 4th floor, 13401 108th Ave., Surrey and 1600–4720 Kingsway, Burnaby

Plaintiff: Catherine Fisk 304–1450 Chestnut St., Vancouver

Claim: Damages arising from injuries suffered when the plaintiff stepped off the back door of a bus and fell in a hole on City property.

Defendant: Crissy Field Media Inc. Address unavailable

Plaintiff: Borislav Trifonov 819 W. 70 Ave., Vancouver

Claim: Compensation for the difference between a contractual obligation related to a vice-president position and the amount that was actually paid; compensation for overtime; and correction of the 2009 and 2010 tax forms.

Defendant: Wal-Mart Canada Corp. Box 49314, 595 Burrard St., Vancouver

Plaintiff: Snjezana Arevski 402-4211 Kingsway,

BurnabyClaim: Damages for injuries sustained after the plaintiff slipped on a liquid foundation spilled on the floor.

Defendants: John Doe #1 and John Doe #2 and John Doe #3 and John Doe #4 and John Doe #5 Address unavailable

Plaintiff: Allen Batchelar and British Columbia Corps of Commissionaires 14th floor, 550 Burrard St., Vancouver

Claim: An injunction restraining the defendants from writing or publishing any further defamation; damages for defamation; orders; and an injunction.

Defendant: 0790643 B.C. Ltd. 100A–3020 Lincoln Ave., Coquitlam

Plaintiffs: Frank Xavier Burgstaller and Adolphine Burgstaller and Western Technical Supply Co. Ltd. 843 W. 15th Ave., North Vancouver

Claim: Injunctions to halt the construction work that damaged the plaintiff ’s property; and damages. •

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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.

•AccountingJim Lawler and John Bunt-ing have been named asso-ciate partner and leader of private company services in B.C., respectively, at PwC. Lawler was previously an independent consultant and Bunting is a partner in the audit and assurance group of PwC.

•Associations/SocietiesKarina Briño has joined the Mining Association of B.C. as president and CEO. She was previously assistant dep-uty minister, mines and min-eral resources division, for the BC Ministry of Energy and Mines.

Robert Rothon has been appointed national executive director of Canadian Par-ents for French (CPF). He was previously executive dir-ector of CPF, B.C. and Yukon branch and will be replaced by Glyn Lewis as interim executive director.

•Communications/PRAmanda Bates has been appointed managing part-ner at Curve Communica-tions. She was previously the senior producer for Citytv’s

Breakfast Television.

•DesignBenjamin Kang has been promoted to vice-president of business development and senior interior designer at Ashley-Pryce Interior Designers Inc. He was previ-ously senior interior designer with the company.

•GeneralJonathan Bennett has been appointed director, market-ing and communications, for MRSI Benchmarking. He was previously director, cor-porate planning, and chief communications officer at Peterborough Regional Health Centre and creative writing instructor at Hum-ber College, Trent Univer-sity, Ryerson University and George Brown College.

Kelly Backs, Lincoln Hel-ler, Jen Pleadwell and Laura Vanderlinde have been appointed members of Cir-cle Craft Cooperative. Backs is a blacksmith at Tree Stu-dios, Heller is a leather artist at fiveleft, Pleadwell is a tex-tile artist and Vanderlinde is a clay artist.

Judy Darcy has stepped down as chief negotiator and spokesperson of the Hospi-tal Employees’ Union after receiving the NDP nomina-tion in New Westminster where she will be a candidate for election in 2013. She was previously national president of the Canadian Union of Public Employees.

•Hospitality/Tourism/ConventionHamid Salimian has been appointed executive chef

at the Metropolitan Hotel Vancouver. He was previ-ously opening executive chef at the Westin Wall Cen-tre, Richmond and execu-tive sous chef at the Westin Bear Mountain Victoria. Corey Bauldry has joined the Diva at the Met as res-taurant manager and som-melier. He was previously at DB Bistro Moderne.

•LegalD av id Reid h a s b e e n appointed head of Davis LLP’s global mining group. He is a senior partner at Davis and was previously founder and principal at Reid & Co.

•Non-ProfitNatalie Meixner has been appointed president and CEO of Richmond Hospital Foundation. She was previ-ously senior vice-president

of fundraising and mar-keting at the VGH & UBC Hospital Foundation and vice-president, donor and community relations for United Way of the Lower Mainland.

•ResourcesAndrew Boetius has been appointed director, finance and administration at Petra Petroleum Inc. He was pre-viously CFO of Index Oil and Gas and finance director at Amerada Hess Corp.

Ron Halas has resigned as COO of Spanish Mountain Gold Ltd.

Guy Bentinck has been appointed president and CEO of New Earth Potash Corp. He was previously vice-president and CFO, and senior vice-president, capital

projects, at Sherritt Inter-national Corp.

Richard Huff has retired as president and CEO of Ains-worth Lumber Co. Jim Lake has been appointed president and COO. Lake was previ-ously vice-president, oper-ations, at Ainsworth and Grant Forest Products and vice-president, manufac-turing, at Louisiana Pacific Corp.

Henning Holmström has been appointed project development manager at Tasman Metals Ltd. He was previously client sector leader of mining in Scandinavia at Golder Associates and geo-chemist and project manager at the Geological Survey of Sweden.

Jeff Pontius has joined the

Karina Briño is president and CEO of the Mining Association of B.C.

Jim Lawler and John Bunting are associate partner and leader of private company services in B.C., respectively, at PwC

Benjamin Kang is vice-president of business development and senior interior designer at Ashley-Pryce Interior Designers

David Reid is head of Davis’ global mining group

Daily business news at www.biv.com September 20–26, 201128 For the record

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lIMITED-TIME offER EnDs ocToBER 2.The BMW store5th & Burrard, Vancouver(604) 736-7381 www.thebmwstore.ca

Brian Jessel BMW2311 Boundary Road, Vancouver(604) 222-7788 www.brianjesselbmw.com

Park shore MotorsNorthshore Auto Mall, North Vancouver(604) 985-9344 www.parkshorebmw.com

auto West BMW10780 Cambie Road, Richmond(604) 273-2217 www.autowestbmw.com

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The BMW 328i xDrive Sedan continues to define the segment with athletic lines, xDrive® All-Wheel Drive, and a 230hp, six-cylinder engine. And for a very limited time, it’s available for just $328 a month. The BMW 328i offers grace, power, efficiency – and unparalleled value. so hurry to your nearest BMW Retailer, because the offer expires october 2.

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Russ Smart, CEO and founder, I.D.C. Insurance Direct Canada and Connie Abram, executive director for Western Canada, Canadian Diabetes Association

Sheldon Trainor and wife Emelda Wong

George Pitman, board member, Variety; Barbie Hislop, execu-tive director, Variety; and Steve Thompson, merchandising and marketing manager, Pharmasave Drugs

board of Redstar Gold Corp. He was previously president and CEO of International Tower Hill Mines, U.S. and North American explora-tion manager for Anglo-Gold Ashanti, and director of Anglo American (USA) Exploration Inc.

Michael Winship has been appointed a director of Rubi-con Minerals Corp. He is COO for Quadra FNX Min-ing Ltd.

Eugene Chen has been appointed to the board of Firesteel Resources Inc. He is a partner in the securities, corporate finance, and mer-gers and acquisitions group with Gowling LaFleur Hen-derson LLP. Rolland Men-ard has resigned as a director and has been appointed a technical consultant to Firesteel.

Rebecca Greco has been appointed manager, investor relations, for PMI Gold Corp. She is an investor-relations consultant and principal of Fig House Com-munications.

Harry Barr has stepped down as president of Pacific North West Capital Corp. and William Stone has been appointed president and COO. Barr remains as CEO and has been appointed chair of the board. Stone was previously vice-president of exploration, Canada, for Magma Metals Ltd., and vice-president of exploration for North American Palla-dium Ltd.

Richard Zimmer has been appointed to the board of Magellan Minerals Ltd. He was previously president and CEO of Far West Mining Ltd.

•Sales/MarketingKev i n Cha n ha s been appointed vice-president, technology, at B’stro. He was previously head developer at B’stro and co-founder of Fix8 Creative.

•TechnologyNeil Chan has been appointed CEO of iGen Networks Corp. He is chair and CEO of Gogiro Internet Group and was previously senior vice-president worldwide sales and marketing at WebTech Wire-less Inc. and managing direc-tor of Motorla Inc.

•TelecommunicationsKaren Mongelli and David

Terry Dinsmore, president, Dinsmore Media, launches new sales division

Greer have been appointed vice-president of government sales and account manage-ment and vice-president of marketing, respectively, at Webtech Wireless Inc. Mon-gelli was previously director of operations and manager, operations, at Automotive Resources International. Greer is an adviser at VanRx Pharmaceuticals Inc. and president at DJ Greer Busi-ness Solutions and was pre-viously president, CTO and owner of Robelle Solutions Technology.

Caroline Dunn has been appointed CFO of DDS Wireless International Inc. She was previously CFO at the Courtyard Group and Sierra Systems Group Inc.

Companies on the move•New In TownD i n smore Me d i a h a s launched a sales division with Flavours Magazine, published by Business in Vancouver Media Group, Scan 2 Mobile and Brand Driven Media, being the first publication to join the roster.

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

Sheldon Trainor and his

With 180 girls waiting to be matched with a mentor, there are

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agency’s Study Buddy Pro-gram, which matches Little Sisters with volunteer tutors who offer them academic guidance and support. This funding will allow the agency to make five new Study Buddy matches in Burnaby and on the North Shore.

I.D.C . Insurance Dir-ect Canada donated $5,000 to the Canadian Diabetes Association.

Image Group Inc. has been recognized by the Advertising Specialty Institute’s Counselor magazine as one of the Best Places to Work in North America. •

Natalie Meixner is president and CEO of Richmond Hospital Foundation

wife Emelda Wong donated $500,000 to Capilano Uni-versity to establish the Shel-don Trainor and Emelda Wong Centre for Inter-national Experience at the school.

The Pharmasave Charity Golf Classic raised $45,000 for Variety – The Children’s

Charity.

TD Bank Group donated $15,000 to Junior Achieve-ment of BC in support of its business education programs.

Vancity donated $10,000 to Big Sisters of BC Lower Mainland in support of the

September 20–26, 2011 Business in Vancouver 29for the record

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Deadline for Datebook listings is noon Tuesday for the following week ’s paper. Listings are published on a guaranteed basis for $50 per week, plus hst. Free listings will run in print as space permits. Go to www.bivdatebook.ca to post your listing. Published Datebook listings are at the discretion of BIV.

Breakfast, Luncheon, Dinner MeetingsBusiness in Vancouver’s BLUE Breakfast Panel: Investment in MarketingSeptember 21, 2011, 7:00 AM: The upcoming BLUE breakfast panel will be discussing what companies are doing with their marketing budgets in this era of rapidly changing marketing solutions. Subscriber $49, Non-subscriber $59. SFU Segal School of Business, 500 Granville Street (at Pender). Vancouver. Azadeh Hollmann: 604-608-5197 or [email protected]. http://www.biv.com/colour/index.asp.

The City in 2050 Part 9: A Provincial Perspective - Working Together to 2050!September 22, 2011, 12:00 PM: The ninth instalment of The City in 2050 series will feature Mike Harcourt in dialogue with Gordon Price and will focus on how to bring federal, provincial, and municipal parties together on the delivery of key regional land use issue. $75 Non-members; $60 Members; $45 Young Leaders. 837 Hastings Street West. Vancouver. [email protected], 604-761-8060. https://netforum.uli.org/eweb/DynamicPage.aspx?site=ULIMC&webcode=DCouncilEventInfo&Reg_evt_key=1ecdd7f8-e904-4bc9-beaa-.

How to Close Larger Deals More QuicklySeptember 22, 2011, 5:00 PM: Learn specific actionable things you can do to increase the dollar size of your deals, and how you can close large deals more quickly! The presenter for this session is Rob Malec who has 23 years in sales and business development

experience. SMEI Members $55/Non-members $75. Terminal City Club, 837 West Hastings. Vancouver. 604-266-0090 or [email protected]. smeivancouver.org.

Business Women Dinner Meeting and SpeakerSeptember 29, 2011, 6:00 PM: Burnaby Business Women invite women to a monthly social dinner meeting and speaker. Join us for a relaxing and interesting evening. Non-members welcome. Door prizes donated by attendees. Reservations required. $24.00 non-members, $21.00 members. ABC Country Restaurant, 6500 East Hastings. Burnaby. Sharon: 604-434-7221 or [email protected]. http://upcoming.yahoo.com/venue/93820/BC/Burnaby/Burnaby-Business-Women-One-to-One/.

One Night by Lora Frost - Success PartyOctober 19, 2011, 7:00 PM: A unique opportunity for entrepreneurs to embrace their power. Guests attending the One Night party will arrive as the person they want to be in five years. They will act as though they have already achieved their goals . $ 150. Shangri-La Terrasse. Vancouver. Marion Houchard, [email protected]. www.onenightbylorafrost.com.

Boughton/BCLI Great DebateOctober 26, 2011 , 5:00 PM: The GREATdebate offers a fun, engaging evening of dinner and light-hearted debate. This year’s debate resolution: “Resolved that the torts of champerty and maintenance should be abolished in British Columbia.” $145 per person/$1,100 per table of 8. Pan Pacific Waterfront, 300-999 Canada Place. Vancouver. Elizabeth Pinsent: 604-822-0142, [email protected]. http://www.bcli.org/news/events/great-debate-2011.

conferences, conventions, traDeshows7th Annual Connections to Employment Job FairSeptember 21, 2011, 10:00 AM: Exhibitors include WorkSafeBC,

Sears, Staples, Canada Safeway, Home Depot, London Drugs, Dairy Queen/Orange Julius, Coast Plaza Hotel, Edgewater Casino, T & T Supermarket, Natural Factors, UPS Canada, Spectra Energy, JW Research, andTD Canada Trust. Admission is free. Vancouver Public Library, Library Square, 350 West Georgia Street. Vancouver. Carol Cordeiro, Marketing Specialist, PICS Vancouver: 604-324-7733, [email protected]. www.pics.bc.ca.

iTech Infrastructure Technology SummitSeptember 22, 2011, 8:30 AM: Featuring a comprehensive conference program, large exhibitor area and live product demonstrations, iTech Summit offers the educational content IT professionals need to maximize their business operations. Passes valued at $295 are free for qualified IT. Vancouver Convention Centre, 1055 Canada Place. Vancouver. Jennifer Wittkopp, 905-948-0470. www.itechsummit.ca.

15th Annual SOHO|SME ExpoSeptember 30, 2011, 8:30 AM: The SOHO|SME brings together like-minded business entrepreneurs, execut ives , managers and professionals to inspire, drive and motivate business success. Small business is defined as a business with less than 50 employees. Register online for your free tradeshow & conference pass. 655 Burrard. Vancouver. [email protected]. http://www.soho.ca/sme/2011/vancouver/.

Internet Marketing Conference - IMC Vancouver October 3, 2011, 7:30 AM: Expand your knowledge, improve your skills and become a better manager of digital media, marketing & communications. Connect with an international community of digital marketers. $1,195. Renaissance Vancouver Hotel, 1133 West Hastings St. Vancouver. Registration Support: [email protected], 1-877-883-7345. http://www.internetmarketingconference.com/vancouver/event-home.

HR Tech Group: Human Capital SymposiumOctober 26, 2011, 8:00 AM: Tech

industry event on best HR practices to grow your business (revenue, talent, leaders). Featuring keynote Don Bell, Co-founder of Westjet Airlines. $275 before Sept 30th; $350 after. Sutton Place Hotel, 845 Burrard St. Vancouver. Allison Rutherford, HR Tech Group: 604-874-2653; [email protected]. www.hrtechgroup.com.

Business After Business TradeshowOctober 26, 2011 , 5:00 PM: The Vancouver Board of Trade’s signature Tradeshow. $20 members and guests/$30 future members (+HST). The Fairmont Hotel Vancouver - Pacific Ballroom, 900 West Georgia Street. Vancouver. [email protected]. www.boardoftrade.com.

courses, workshops, seMinarsSelling Your Business Featuring Don Sihota, Business Lawyer, Clark Wilson LLPSeptember 22, 2011, 8:30 AM: If you’re a business owner over 50, a business succession plan is essential. Buyers are now looking for great businesses - don’t be left behind! Learn how to get the best price, negotiate the best terms and avoid critical errors when you sell your business. $265. 800 - 885 West Georgia Street. Vancouver. Contact Jessica Mitchell at 604-687-5700, ext 4229 or [email protected]. http://www.cwilson.com/DonSihota/SellingYourBusiness/.

Breakthrough Leadership TrainingSeptember 27, 2011, 9:00 AM: To be a leader requires a strong inner sense of self, a deep desire to share your passion, and the confidence and skills to get your message across. It all comes down to 3 things: who you are, what you stand for and your ability to build trust. $1597.00 (+HST). Lake City Business Centre, 3292 Production Way, Suite #501, Burnaby. 604-542-3008/[email protected]. http://therobinsongroup.ca/wp/breakthrough-leadership/.

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Toastmasters Area 75 Speech ContestSeptember 27, 2011, 7:00 PM: Humorous Speech Contest & Table Topics Impromptu Speech Contest. Area 75 is composed of several Toastmasters clubs: Politically Speaking Advanced, Posi t ive Thinkers , Royal -T, Vancore, Lab:orator y. Ring buzzer for Security. Gather at 6:30 pm. No charge. BC Hydro Building, 2nd Floor. Vancouver. Kevin Pendergraft, [email protected]. http://www.d21toastmasters.ca/events/all-events/icalrepeat.detail/2011/09/27/319/-/area-75-speech-contest.

Applications in Sustainable Community Development September 30, 2011, 9:00 AM: Through field trips and presentations by sustainability project champions, you will explore the application 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.

Bullet Proof Your Portfolio and Sleep at NightOctober 5, 2011, 6:45 PM: Jennifer Fabre Investment Advisor DWM Securities Inc presents a Bullet Proof Portfolio for experienced investors. This seminar is ideal for those seeking: preservation of capital, lower volatility, regular income and performance in difficult markets. Complimentary seminars. 700 - 609 Granville St. Vancouver. [email protected] or 604-895-3478. www.jenniferfabre.com.

Leadership Assessment Essentials for Selection and DevelopmentOctober 12, 2011, 8:30 AM: High quality assessment is essential to HR’s ability to provide real business value - they improve the accuracy of decisions regarding selection, development and succession. Prices vary - please see our website for details. BC HRMA, 1101-1111 West Hastings Street. Vancouver. Jace Ardiel, Professional Development Coordinator, [email protected]. http://www.bchrma.org/content/events/ls/details.cfm?EventID=035-303.

BCIC Commercialization & Business Planning Workshop October 21, 2011, 9:00 AM: An

intensive workshop that compels the entrepreneur to think critically and develop the successful elements for the commercialization and positioning of their business idea. It covers business planning and product management. Oct 21, 28 & Nov 4. $269 (a $4,000 value). 1188 West Georgia Street, 9th Floor. Vancouver. [email protected]. http://www.bcic.ca/programs/talent/entrepreneurship-workshop.

CAPS Vancouver: Todd Hunt - Creating a Killer KeynoteOctober 29, 2011, 8:30 AM: Learn the secrets to creating a great keynote address. For both emerging and experienced speakers. Plus, “Rising Stars” contest for new speakers. Members & 1st time guests $57 ($62 at the door); Guests $87. Morris J. Wosk Center for Dialogue (SFU), 580 West Hastings St. Vancouver. Ron Grender, CAPS President: 778-688-7065. www.capsvancouver.com.

Fundraisers, General eventsWomen Against MS Gala BreakfastOctober 13, 2011, 7:00 AM: There is no known cure for multiple sclerosis which affects women three times more often than men. Funds raised support MS research. Special guest speaker Cassie Campbell-Pascall. 125 per ticket; 1,000 table for eight. Terminal City Club, 837 West Hastings Street. Vancouver. Kristina Keith: 604-602-3220, [email protected]. www.mssociety.ca/bc/wams.htm.

Gala eventsFastest Growing Awards CeremonySeptember 27, 2011, 5:30 PM: A gala awards dinner honouring the Top 100 Fastest Growing Companies in B.C. This event coincides with the publishing of the Top 100 Fastest Growing Companies list. Subscriber $125, Non-subscriber $149. The Fairmont Waterfront Hotel, 900 Canada Place Way. Vancouver. Azadeh Hollmann: 604-608-5197 or [email protected]. http://www.biv.com/events/top100fastestgrowing/index.asp.

PWN 15th Anniversary CelebrationSeptember 29, 2011, 5:00 PM:

Come celebrate PWN’s 15 years of growth and expansion, applaud the successes of our members, and pay special tribute to those gems in our business community who have contributed significantly to the advancement of women in business. $75.00. Fairmont Waterfront Hotel. Vancouver. Please make cheques payable to Hayley Renfrew c/o Fasken Martineau, 2900-550 Burrard St. Vancouver, BC, V6C 0A3.

Big Sisters GalaOctober 6, 2011, 5:30 PM: Join Big Sisters for an inspiring evening as we raise funds to help match 180 girls on the waitlist with a supportive mentor. Event will feature a champagne reception, auctions, dinner and live entertainment by Paramount. $250. Pan Pacific Hotel (300 - 999 Canada Place). Vancouver. Kelly: 604-873-4525 x302 or [email protected]. www.bigsisters.bc.ca.

BCAMA’s 2011 Marketer of the Year AwardsOctober 13, 2011, 5:00 PM: Join us at our gala event to hear an inspiring story about how Pacific National Exhibition, the 2011 BCAMA Marketer of the Year, has positioned itself as a premier entertainment fair destination with its outstanding integrated marketing campaign. $170 non member; $130 member; $1600 corporate table. The Westin Bayshore, 1601 Bayshore Drive. Vancouver, BC. Call 604-983-6AMA (6262), email [email protected] or visit www.bcama.com to register online.

Ridge Meadows Hospital Foundation Gala EveningOctober 15, 2011, 5:30 PM: Proudly presented by Fraser River Pile and Dredge, this is a dazzling fundraising evening of fine dining, shopping and fun with proceeds used to purchase life saving equipment for Ridge Meadows Hospital. $175. Meadow Gardens Golf Course. Pitt Meadows. Laura Butler: 604-466-6958, [email protected]. www.rmhfoundation.com.

Torch Awards 2011 October 26, 2011, 11:30 AM: Torch Awards is a gala awards luncheon recognizing ethical and sustainable businesses from across British Columbia. The Metropolitan Hotel, 645 Howe Street. Vancouver. [email protected]. www.mbc.bbb.org/torch.

BCIT Distinguished Alumni Awards October 27, 2011, 5:45 PM: The 9th annual BCIT Distinguished Alumni Awards celebrates and honours BCIT alumni and faculty who have notable achievements in their careers and community endeavours. Tickets $125; Table of 10 $1,200. Four Seasons Hotel - 791 W. Georgia St. Vancouver. Phone: 604-432-8847, email: [email protected]. bcit.ca/alumni.

2011 T. Patrick Boyle Founder’s AwardNovember 17, 2011, 5:30 PM: The Fraser Institute will be honouring Darren Entwistle, CEO & President of Telus, with the T. Patrick Boyle Founder’s Award at a gala reception. Sponsorship, single tickets, and premium/standard tables available. Tickets $500/$700; Table $5000/$7000. Vancouver Convention Centre East, 1055 Canada Place. Vancouver. 604-688-0221 ext 537 or [email protected]. http://www.fraserinstitute.org/events-multimedia/eventdisplay.aspx?id=17774.

GolF tournamentsThe B2Gold Big Brothers Golf ClassicSeptember 26, 2011, 10:30 AM: Join us at BC’s premier charity tournament for a day of golf at the home of the 2011 RBC Canadian Open, followed by a lavish cocktail reception, silent auction, banquet

dinner and live auction, benefiting Big Brothers of Greater Vancouver. $575. Shaughnessy Golf and Country Club, 4300 SW Marine Drive. Vancouver. [email protected] or 604-876-2447 x244. www.bigbrothersvancouver.com.

Mortgage Investment Association of BC (MIABC) Annual Charity Golf TournamentSeptember 27, 2011, 11:45 AM: Net proceeds will be donated to the Greater Vancouver Food Bank Society’s Kid’s Picks Program. Please visit our website for details. Morgan Creek Golf Course, 3500 Morgan Creek Way. Surrey, BC. [email protected]. www.miabc.com.

networkinG FunctionsWired Woman Society 15th Year Anniversary CelebrationSeptember 22, 2011, 6:00 PM: The Wired Woman Society is proud to be celebrating its 15th Anniversary this year. Come join us for a night of networking, hors d’oeurves, wine tasting, door prizes and good company. $25 for members and $30 for non-members. Jewel Ballroom, 4th Floor, 1495 West 8th. Vancouver. Maureen: 604-908-5058 or [email protected]. www.wiredwoman.com.

Vancouver AM’s 35th Birthday CelebrationSeptember 23, 2011 , 5:00 PM: Celebrate Vancouver AM’s 35th Birthday! You are invited

to Va n c o u ve r A M To u r i s m Association’s Reunion of the Decade. Entertainment by Dal Richards’ Trio $50 (+ HST). Cash bar. Terminal City Club, 837 West Hastings Street. Vancouver. 604-738-5506; [email protected]. www.vancouveram.ca.

C3: Coffee, Conversations & Connections

October 11, 2011, 9:00 AM: These “Casual Conversations” are designed to connect you with smart, savvy women and start your day off right! Tell us your thoughts, share your knowledge and learn from other women’s experiences over a freshly brewed cup of coffee (or tea!) Guests $12.50; Members $10 (+HST). Cheers Restaurant, 125 East 2nd Street. North Vancouver, BC. Cathy, theconnectedwoman.com. www.theconnectedwoman.com.

Women in Biz Network Presents: Branding your Biz with Rebecca Bollwitt & Heather White

November 1, 2011, 6:30 PM: Women in Biz Network presents its first Vancouver event. Become brand savvy with Miss 604’s Rebecca Bollwitt and Heather White of 2020 Communications $24. Opus Hotel, 22 Davie St. Vancouver. [email protected]. http://womeninbiznetwork.com/2011/09/11/our-first-vancouver-event-branding-your-biz-with-rebecca-bollwitt-heather-white/.

September 20–26, 2011 Business in Vancouver 31Datebook

Cartoon by riCe

What’s your opinion?BIV welcomes readers’ opinions. All letters, including those sent by e-mail, must include the author’s name, address and daytime telephone number.Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Fax: 604-688-1963. E-mail: [email protected]. We reserve the right to edit for brevity, clarity and legality.

President and Interim Publisher : Paul Harris; Editor : Timothy Renshaw; News Features Editor : Baila Lazarus; Editorial Proofreader : Noa Glouberman; Online Editor : Nelson Bennett ; Staff Writers : Nelson Bennett , Richard Chu, Jennifer Harr ison , Glen Korstrom, Joel McKay, Jenny Wagler ; Art Director : Randy Pearsall; Photographer : Dominic Schaefer ; Production Manager : Don Schuetze; Production : Rob Benac, Carole Readman, Natalie Reynolds , Soraya Romao, Annette Spreeuw; Director Sales and Marketing : Cheryl Car ter ; Marketing & Events : Azadeh Hollmann,

Paige Millar; Advertising Sales Manager : Kerry MacDonald; Display Advertising Sales: Janice Frome, Blair Johnston, Michele MacKenzie, Pia Tomlins, Chris Wilson, BIV Magazines Publisher : Paul Harris; Managing Publisher : Gail Clark; Editor: Naomi Wittes Reichstein; Sales Manager : Joan McGrogan; Advertising Sales: Lori Borden, Corinne Tkachuk; Administrator: Katherine Butler; Senior Researcher: Anna Liczmanska; Research/Verification: Caroline Smith; Manager, Reader Sales & Service: Deborah Hamilton; Subscription Sales Supervisor: Navreet Gill; Circulation Manager: Veera Irani; Subscription Sales: Gerard Veeneman; Accounting: Denise Moffatt; Credit Manager: Yvonne PoschBusiness in Vancouver is published by BIV Media Limited Partnership at 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Telephone 604-688-2398; fax 604-688-1963—For reprints: Veera Irani 604-608-5115E-mail addresses: [email protected], [email protected], [email protected], [email protected] TWITTER@BIZINVANCOUVER • WWW.BIV.COm • WWW.BIVINTERACTIVE.COm

letters

Board of trade raises Surrey education funding concernsThe Surrey Board of Trade’s “Education Today, Productivity Tomorrow” campaign, including the City of Surrey, School District 36, Kwantlen and Simon Fraser, is concerned that inadequate education funding for Surrey may result in negative and long-term economic and social impacts on this region.

Due to the dramatic population increases, which continue, there are enormous pressures on school and post-secondary institutions.

Kindergarten to Grade 12 needs $273 million for school construction to house the 7,000 students currently in portables (which could rise by as many as 5,000 in five years), and Simon Fraser and Kwantlen have half the post-secondary seats, per capita, in Surrey and the south Fraser, compared with the rest of the province. Kwantlen is funded at the lowest rate per student of any university in the province. We agree money is hard to find, but the future consequences of not responding to these education funding shortfalls will impact our economic well-being, and force our youth and mature students to go elsewhere to learn, or worse still, not go on at all. We cannot afford that either. Please speak to your MLA.

Anita Huberman, CEO,

Surrey Board of Trade

Dump Metro Vancouver garbage incineration plan Plans to incinerate Metro Vancouver’s garbage are not going over well in Fraser Valley communities like Abbotsford and Chilliwack. This is not surprising consid-ering the fact that pollutants released into the Lower Mainland’s air always end up hovering over the Fraser Valley, where they become concentrated.

People in the Fraser Valley fought hard to stop the Sumas 2 project a few years ago. They were equally relieved when it was announced that Burrard Thermal was being permanently shut down (once the biggest single source of greenhouse gas pollution in the whole province). So why would they be happy to hear about plans to incinerate Metro Vancouver’s garbage?

To be fair to supporters of the garbage incineration plan, electricity would be generated through the incineration process. But B.C. has more than enough renewable green energy resources that we’ve barely even begun to tap into.

Supporters of the incinerator plan might also point to jobs being created. But many more jobs would be created by tapping into B.C.’s renewable energy resources.

Therefore, jobs and electricity from any garbage incineration plan would essentially cancel out, which leaves us with air pollution as the only distinguishing feature of the incinerator plan. And if that’s the case, then perhaps a better plan than incinerating Metro Vancouver’s garbage downwind of Fraser Valley residents still needs to be found.

Mike Taylor, Port Moody

Minister says Site C makes good green senseRe: “Adding up summer 2011 math problems” (Timothy Renshaw’s Public offerings column – issue 1140; August 30-September 5).

A recent column in BIV did not accurately portray the government review panel’s comments about the Site C clean energy project (Site C). In fact, the gov-ernment-commissioned review of BC Hydro stated the following about Site C:

There is justification for the Site C dam and hydroelectric generating station based on the projected demand and it appears to be a clean, affordable option.

Site C is seen as cost effective, as the cost of energy, at $87 to $95 per mWh, compares favourably with other benchmarks for clean energy.

Site C is a reasonable cost alternative to meet load growth. The new energy supply would be unaffected by market fluctuations that

impact the cost of natural gas and carbon-generated power, so Site C unit costs should not result in spikes in price.

Rich Coleman,Minister of Energy and Mines

Daily business news at www.biv.com September 20–26, 201132 Comment

At lArge

PETEr LAdnErEconomic toll from income inequality keeps adding up

Is the real message of the HST vote that people wanted to stop

the flow of wealth from the bot-tom to the top, from business to consumers?

There was obviously a mix of motivations to vote against it, but that reason would explain why the vote split so clearly along income lines.

Economist Iglika Ivanova from the Centre for Policy Alternatives discovered that in Vancouver, the poorer the electoral district, the higher the voters’ opposition, while the richer electoral districts were the strongest supporters.

This is just the latest example of how business interests are being hurt by the growing split between rich and poor in Vancouver, B.C. and Canada. British researchers Ri-chard Wilkinson and Kate Pickett (Equalitytrust.org) make an irresist-ible argument that the vast majority of people in any developed country would be better off not by raising GDP, but by reducing the gap be-tween the top and bottom income earners, even with the same level of overall GDP.

“Greater equality improves health and life expectancy and dra-matically reduces the frequency of a wide range of social problems, in-cluding violence, incarceration, illit-eracy, mental illness, drug addiction and obesity,” they write.

Ironically, social mobility, the measure most often celebrated as an available path to prosperity in coun-tries with less equality, is lowest in

unequal countries, and highest in the more equal countries. It is far easier to get ahead in Norway than it is in the U.S.

“Many people worry about what has gone wrong with modern so-cieties without recognizing how

many of the problems originate in the effects of low social status and status competition which are ex-acerbated by greater inequality,” says Wilkinson.

Aside from the obvious moral issues that tend to divide people on this topic, Wilkinson points out that “high inequality can diminish eco-nomic growth if it means that the country is not fully using the skills and capabilities of all its citizens or if it undermines social cohesion, lead-ing to increased social tensions.”

The Conference Board of Can-ada has been hot on this topic over the last year, noting that changes in relative income have a much larger impact on happiness than changes in absolute income. Their data shows a disturbing growth in income in-equality in our country – especially in Vancouver. It notes that the gap between the real average income of the richest 20% of Canadians and

the poorest 20% grew to $117,500 in 2009 from $92,300 in 1976.

“Thus, while the poor are min-imally better off in an absolute sense, they are significantly worse off in a relative sense,” their study pointed out.

By contrast, the richest 1% of the population (average income $405,000) took home almost a third of all the growth in incomes in Canada from 1998-2007, mostly due to lavish corporate compensa-tion packages. Extreme case: Jim Shaw retired from Shaw Cable with a $6-million-a-year pension. In 17 hours he will collect the maximum yearly retirement benefit for the Canada Pension Plan ($11,520).

Last week the conference board reported that the gap between the rich and the rest has been growing faster in Canada than in the U.S. since the mid-1990s – especially in B.C.

Within Canada, low-income rates rose higher in B.C. than in any province except Alberta in the latest recession. Between 2008 and 2009, Vancouver had the highest share of its population in low income of any city in Canada.

This growing rift is unsustain-able and damaging to individuals, our community and the province’s economy. Low-income voters push-ing back against the HST cared more about inequality than helping the economy. That hurts everyone.

Next week I’ll talk about what can be done about it. •

Peter Ladner ([email protected]) is a founder of Business in Vancouver and a former Vancouver city council-lor. His book, The Urban Food Revo-lution: Changing the Way We Feed Cities, will be published by New So-ciety in October 2011.

Changes in relative income

have a much larger impact

on happiness than changes

in absolute income

Podium

Laura JonesUnrealistic demands undermining integrity of B.C. teachers’ union

Labour Day is barely in the rear-view mirror

and our kids are heading back to school. Teachers are heading back too – for now.

The usual relief that par-ents feel at this time of year is tempered by the British Columbia Teachers’ Fed-eration’s (BCTF) threat to strike for higher pay, more benefits and better working conditions.

How reasonable are these demands?

Many other public-sector unions in the province, rec-ognizing the current eco-nomic climate, have settled within the government’s ne-gotiating framework of no-net compensation increases for two years.

But the BCTF is asking for: •a d o u b l e - d i g i t p a y increase; •26 weeks of paid leave to look after a sick friend or relative; •a year’s pay as a “bonus” for retiring; •two weeks’ leave on the

death of any friend; and•two sick days a month that can be banked.

As eye-popping as the demands are, the BCTF does sound more reason-able when it points out that teachers in provinces such as Alberta and Ontario earn more than they do.

How reasonable is it to complain about your wages when you are among the best-paid teachers in the world?

The Organization for Economic Co-operation and Development (OECD) produces an annual report of education indicators showing the OECD average starting salary for teachers is US$28,949. Teachers in the U.S. start at US$35,999, while those in France begin at US$23,735.

With a starting salary of $47,000, B.C. teachers make more than those in every other OECD country except Luxemburg.

At $75,000, the aver-age top sa lary for B.C.

teachers is also far higher than the OECD average of US$48,022.

By comparison, U.S. teachers top out at an aver-age US$50,922 and French

teachers at US$47,108.B.C. teachers also get

to the top sa lary faster than those in most other countries.

But salaries don’t tell the full story.

Holiday time is pretty good for a teacher with a two-month summer break.

The pensions are nice, too, providing for 70% replace-ment income. This means a B.C. teacher can retire at age 55 with an inflation-indexed

pension worth more than $50,000 a year. Many will re-tire for more years than they worked.

Salaries, benefits and working conditions can’t be that bad in B.C. as more people want to teach than there are jobs.

B.C. teachers are well compensated. To meet half of the current demands would blow a giant hole in B.C.’s already strained budget, which means higher taxes – either now or later – for the rest of British Colum-bians whose incomes have not risen as fast as those of teachers.

As for those even more generous salaries in On-tario and Alberta, simply because their governments caved in to unreasonable demands doesn’t mean that B.C. should.

The BCTF isn’t do-ing itself or its reasonable union brethren any favours. A recent poll found that unions are the least respect-ed groups in the country,

ranking even below banks and government.

Making outrageous de-mands at the expense of other citizens is what put them there. •

A B.C. teacher can

retire at age 55 with

an inflation-indexed

pension worth more

than $50,000 a year

Laura Jones ([email protected]) is senior vice-president for research and economics (Western Canada) with the Canadian Federation of In-dependent Business.

The PEAK to swap signals with Co-op RadioJim Pattison Broadcast Group’s the PEAK radio station will get a stronger radio signal from Vancouver Co-operative Radio.

The CRTC is allowing the PEAK, broadcasting at 100.5 on FM, to switch frequencies with Co-op Radio (102.7 FM) as part of a $1.437 million signal swap deal.Monday, Septmber 12

BUSINESS TODAY

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September 20–26, 2011 Business in Vancouver 33comment

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Daily business news at www.biv.com September 20–26, 201134 SportSGolden Goals

BoB MackinNash juggernaut overrides national team disappointment; big board, not baseball the BC Place priority

The future of basketball in Canada was dealt

a blow when the men’s na-tional team failed to qualify from the Americas tour-nament in Mar del Plata, Argentina, for the London 2012 Summer Olympics.

Steve Nash, the best play-er ever produced by Canada, was conspicuously absent from the tourney. Back in Vancouver, he was showing off his soccer skills for cam-eras at a Vancouver White-caps practice. The photo opportunity was smartly timed to keep the last-place Major League Soccer club he co-owns top-of-mind amid the surging BC Lions and the returning Vancou-ver Canucks.

The national team, like the Whitecaps, wears Bell’s wordmark on its jersey. But even that wasn’t enough to draw Nash back into the fray, while he waits to learn whether the Nation-al Basketball Association season will be shortened or cancelled by the owners’ lockout of players.

Canada’s last medal in a summer Olympics’ team sport was silver in men’s basketball at Berlin 1936, and the drought is perhaps the biggest challenge facing Own the Podium.

Nash went to Twitter to plead his case with fans.

“I was asked to do a lot for the (Phoenix) Suns and after 13 years with the na-tional team I felt I had to choose one or the other to prolong my career and the NBA is my livelihood,” Nash wrote.

“The moments and mem-ories I had playing for Can-ada are the best of my career. It wasn’t an easy decision nor one I wanted to make to stop playing for the national team, but something had to give. I was 30, playing year round, carrying injuries into both seasons.”

Meanwhile, Nash’s com-mercial juggernaut con-tinues and shows no signs of abating. On September 13, he opened the trading day at the Toronto Stock Exchange to promote Li-quid Nutrition Group, a chain of six Montreal juice and natural foods bars that has designs on expansion to Toronto, Vancouver and Los Angeles.

Other athletes on so-

c a l le d “ Te a m L iqu id ” include East York, Ontario-born New York Yankees’ catcher Russell Martin, At-lanta Falcons’ quarterback Matt Ryan, Norwegian golf-er Suzann Pettersen and Australian gold medal half-pipe snowboarder Torah Bright, who won on the Cy-press halfpipe in 2010.

Nash isn’t just a celebrity endorser. He owns a piece of the company. Team Li-

quid’s board of directors includes Brandon Kou , general manager of Steve Nash Enterprises.

Nash, 37, has played in the beverage world as an endorser for Coca-Cola’s Vitaminwater and has his name on the Steve Nash Fitness World and Sports Clubs chain. He’s also part of the BC Hydro Team Power Smart, appearing in one ad as a bobblehead. Time is running out for the two-time NBA most valu-able player to earn a cham-pionship ring, but his prime earning time is now. His number 13 is more famous on a g loba l sca le t han Wayne Gretzky’s 99 ever was, simply because basket-ball is played and watched more widely than hockey and because Nash is a star of the Internet era.

Board room Don’t expect to see baseball anytime soon in BC Place Stadium.

BC Pavilion Corp. chief executive Warren Buck-ley is still waiting for Ma-jor League Baseball to respond to a request to rule on whether a game could be played despite the giant cen-tre-hung video board.

“The reality is we’re not designing this for baseball,” Buckley said. “Nobody’s out there trying to acquire a major league baseball fran-chise, but we’d like to do some exhibition games.”

He said a likely scenario would be to temporarily re-move the board, but conced-ed it wouldn’t be practical.

“If you look at what the cost of what it would be to try and enhance the sta-dium to accommodate three games a year,” Buckley said. “I think most people would say, well, that’s a wise invest-ment not to do it.”

The video board might be the most important element for generating revenue at the renewed stadium, scheduled to open September 30. BC Place will join New Yan-kee Stadium, Cowboys Sta-dium and Rogers Centre in employing the Cisco Stadi-umVision video and digital content distribution system. At New Meadowlands Sta-dium, shared by the Na-tional Football League’s New York Jets and Giants, the use of 2,200 IP-linked screens means the venue can be rebranded depending on the tenant.

That will be essential in Vancouver, where anticipat-ed stadium naming rights sponsor Telus and White-caps’ sponsor Bell will be uneasy bedfellows. • [email protected]

twitter.com/bobmackin

“It wasn’t an easy

decision nor one I wanted

to make to stop playing

for the national team, but

something had to give”

– Steve nash to Twitter followers

Business booming at Nat Bailey stadiumThe Vancouver Canadians’ Northwest League champion-ship win September 11 didn’t translate into a profit wind-fall for the team’s owners.

Canadians general man-ager Jason Takefman said that, even though Nat Bailey Stadium posted a record attendance of 162,162 during the regular season, much of the post-season revenue goes to the league.

“We don’t look at it as a revenue generator,” he said. “We look at it as something great for the fans and great for the team.” Tuesday, September 13






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Warren RoyBy Nelson Bennett

Mission: To be No. 1 in

the financial services

sector for messaging and

archiving globally

Assets: One of

Canada’s best software

development teams, a

good understanding of

the company’s niche and

excellent partners

Yield: Since the end

of 2006, the company

has turned a profit and

doubled in size

Warren Roy is one of those people who just get things.

With no background in architec-ture, he developed a successful de-sign-build company and built dozens of homes. Then, in 1999, after reading a book on the Internet, he decided to start a software company – Global Relay – which has grown from three people in 2003 to 160 today. The com-pany, with a worldwide customer base of 14,000, now posts annual earnings of approximately $20 million.

Remarkably, Roy has built one of Vancouver’s most dynamic software companies with zero background in computer science. In fact, he doesn’t even have a university education.

“Because I don’t have a technical background, I learned the industry from the ground up,” said the 47-year-old entrepreneur.

Shannon Rogers, Global Relay’s president and general counsel, said Roy simply grasps things quickly and is con-versant in all aspects of the business.

“He thinks bigger than anyone I know,” she said. ”He gets concepts so quickly.”

Born and raised in Ontario, Roy moved to Vancouver in 1990. Despite not having gone to university, he ended up running a design-build company. As part of that business, he learned computer aided design (CAD).

From there he picked a fundamen-tal knowledge of computers, and when the Internet came along, he “dove” into software development.

Initially, Roy and his co-founders – Eric Parusel and Duff Reid – de-veloped electronic data management for the architecture, engineering and construction industries.

“We could not give away the ser-vices,” Roy said. “Nobody wanted to buy them.”

But then a door opened when U.S. firms like WorldCom, Enron and its auditors, Arthur Andersen, were ruined by financial scandal.

In the wake of those scandals, U.S. regulators like the Securities and Ex-change Commission passed new laws. Among them were tighter electronic message archiving and supervision re-quirements – a niche that Global Relay managed to exploit with great success.

The company provides secure stor-age and supervision of all electronic data for things like e-discovery (foren-sic auditing of email, instant messaging,

web transactions, etc.)Roy realized that the data-ar-

chiving software his company had developed for the architecture, engin-eering and construction industries could be retooled to meet the new fi-nancial services regulations.

“We realized we had the perfect product for the wrong industry,” Roy said. “So we jumped from the archi-tecture-engineering world to the fi-nancial services world.”

The company – then just three people – refocused and managed to reinvent itself with no outside investment.

“We had no money, no venture capitalist backing, the economy was unbelievably bad because the whole dot-com world imploded,” Roy said.

“It’s one of those success stories,” said Bill Tam, president and CEO of the BC Technology Industry As-sociation. “It’s three guys working off their credit cards trying to build something in the compliance space. I think they defied just about every textbook manoeuvre in setting up a multimillion-dollar success story, and they proved that it could be done on the back of tireless effort and just sheer willpower.”

Once the company had retooled its software, Roy approached the Finan-cial Industry Regulatory Authority

(FINRA), the largest securities firm regulator in the U.S., which helped Global Relay tailor its software to the new U.S. compliance-reporting regu-lations. One of its first big customers was Thomson Reuters.

“We picked a few good distribution partners, and Reuters was one of them that we teamed up with early on,” Roy said. “As their partner, we were able to get credibility that we wouldn’t other-wise have had because of our size.”

Another early customer was Bell Canada, which required archiving to be done in both official languages. Learning how to archive in languages other than English gave Global Relay an edge over competitors, because as other regions adopted stricter data-ar-chiving rules, more countries needed those services in other languages.

Roy added that simply being a Can-adian company had its advantages.

“Canadian privacy laws are quite strong globally, so financial firms out-side of the United States generally pre-fer to deal with a Canadian company because our privacy laws are just at a higher standard than U.S. privacy laws,” Roy said. “And that’s really helped us grow in Europe.”

Global’s worldwide clientele in-cludes some of the world’s biggest banks and is one of Vancouver’s fastest growing companies. It currently ranks

No. 19 on Business in Vancouver’s top 100 fastest growing companies list (see issue 1142; September 13-20).

Most of Global Relay’s growth has occurred in the last two years. The company is owned by a core group of employees. Less than 10% of Global Relay is owned by outside investors.

The company managed to boot-strap itself to the position it’s in to-day without borrowing or seeking venture capital because the core ownership group worked for next to nothing.

Global Relay’s Vancouver head-quarters – two floors of the Leckie building at 170 Water Street – looks like a typical Gastown high-tech company.

There are no cubicles, which gives the office an open-collaborative ambience.

Employees sometimes log long hours, but they can always blow off steam by going to the company’s lounge, where they can play foosball or table hockey, and pour a free beer from the company’s draft beer tap.

In addition to its Vancouver head-quarters, Global Relay has offices in New York, London and Singapore. Because most of its clients are in the U.S., the company is virtually an unknown in its hometown. (Only 5% of its revenue comes from Can-adian customers – 85% comes from the U.S.)

“Nobody in Vancouver knows who we are,” Roy said, “but in New York City, literally everybody in fi-nance knows who we are.”

In addition to providing archiv-ing and data retrieval for things like e-discovery, Global has developed search applications that would allow employees within a company to tap into the wealth of archival data gen-erated by them or colleagues.

It has also created mobile search technology that allows employees to use their BlackBerrys or iPhones to do internal searches.

“Every email ever sent to or from anybody is on record with us and you can leverage that as an employee,” Roy said.

The company recently broke ground on a new $14 million data centre in North Vancouver, and it has plans to build a mirror data centre in Newfoundland. •[email protected]

Data baseAccounting scandals in the U.S. have proved to be a boon for Global Relay’s electronic message archiving business

Do

min

ic S

ch

ae

fe

r

September 20–26, 2011 Business in Vancouver 35Profile

Warren Roy, founder and CEO of Global Relay: “we realized we had the perfect product for the wrong industry”

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Mark O’DeaResource industry rock star is back in business with a new precious metals ventureIssue: August 30

Darren PylotCapstone CEO’s deals helping limit shareholder risk in volatile sector Issue: September 13

David LabistourMEC boss aiming to take outdoor supply company to new heightsIssue: September 6

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