Business in Vancouver 2011-06-21 by GLACIER MEDIA DIGITAL LIMITED PARTNERSHIP dba BUSINESS IN VANCOUVER

LOCAL. BUSINESS. INTELLIGENCE. June 21–27, 2011 • Issue 1130

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Telus CFO Robert McFarlane on how the telecom giant stays on top of the pile: 21

Green practices raise fish out of the can 3 Controlling risky business 9 Smartphone for a smart home 10 Police protection 13 Panel of experts’ green guidance 14 DOMINIC SCHAEFER

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FULL DISCLOSURE Helping Hon’s: Ray Leung’s new developments 39 Top 100 public companies in B.C. 20, 22, 24, 26

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Protest over pipeline Hostility is brewing over the proposed replacement of the aging Trans Mountain pipeline that supplies Vancouver International Airport with jet fuel

Vancouver’s brand battle World’s perception of the city shifts away from the friendly, progressive Olympic host By Bob Mackin

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itizens are protesting against a $100 million project that would see aviation fuel shipped by tanker up the South Arm of the Fraser River and piped from a marine transfer station to the airport via a 15-kilometre-long pipeline through Richmond. The venture aims to replace an existing pipeline that proponents say doesn’t have the capacity to deal with current fuel requirements for the airport.

The pipeline faces an uphill battle in the form of opposition from a grassroots organization in Richmond called VAPOR (Vancouver Airport Pipeline Opposition for Richmond), as well as from city council, which is unanimously against the plan. The BC Environmental Assessment office, which is set to review the proposal, has received more than 350 submissions, most of them opposing the proposal. The opponents say there are alternatives that have not been fully explored. Business in Vancouver special report – 4, 5

n the world of branding, perception often trumps reality. Which means Vancouver’s second post-Stanley Cup Final riot could harm the city’s image for years to come. There were 150 people injured and 100 arrested in the June 15 riot following the Boston Bruins Game 7 upset of the Vancouver Canucks at Rogers Arena. Fifteen vehicles, including two see Goodwill, 7

Daily business news at www.biv.com June 21–27, 2011

contents Columnists True Wealth Thane Stenner High-Tech Office Alan Zisman Real Estate Roundup Peter Mitham Sustainability Nina WInham Public Eye Sean Holman National Affairs Mark Milke

9 10 11

First Nation opposition mounts against TimberWest deal

Village Farms to increase U.S. greenhouse operations

Forestry company investing in bioenergy

New Gold doubles drill program near Prince George

Day4’s near future not so bright

Trilogy lauds masterplanned community in Comox Valley

YVR welcomes inaugural non-stop flight from Guangzhou

By the numbers 8 Finance briefs 9 BIV lists 20,22,24,26 Trouble 29–31 Lawsuit of the week 31 People on the move 32-33 Datebook 34-35 Letters 36 Business classifieds 38

BIV Business Today Daily Online Edition

RE/MAX predicts recreational property sales boom

B.C. clean tech set to drive province’s economy

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News

June 21–27, 2011 Business in Vancouver

Tuna trade floats on sustainable success Anglers have joined forces to build a tightly controlled fishery that pays dividends and enjoys a positive international profile By Joel McKay

’s tuna trollers are building a high-end reputation for a fish that only a few years ago could be found in the bargain bin at your local grocery. “We’ve made a conscious effort in the last couple of years to elevate tuna out of the can,” said Lorne Clayton, executive director of Canadian Albacore Tuna, a foundation that promotes B.C.’s fifth largest single species finish fishery. Every June, 110 internationally licensed vessels make the run from the northern border of California to Haida Gwaii in search of the Pacific Coast’s sought-after albacore tuna. Last year, B.C. fishermen pulled 14 million pounds of tuna out of the deep-green waters off the coast. That haul sports an annual wholesale value between $25 million and $30 million, Clayton said, an amount that’s increased in recent years as the fishery has marketed albacore as a premium product. “Fifteen years ago, 90% of our tuna went into a can,” Clayton said. “Now it’s less than 10%, so we’re really focusing on the loin or meat part of the tuna, and it’s a higher value and better use so the fishery benefits more from it.” Ian Bryce agreed. The Port Alberni fisherman started pulling tuna out of the water in the mid-1990s after more than two decades spent as a salmon fisherman. Before that, B.C.’s tuna fishery was little more than a passing hobby for most anglers. “What forced it to get off the ground was a lot of us who were former salmon trollers were starting to suffer pretty badly with the decline in fish and fishing opportunities with salmon,” said Bryce. “So a lot of us got squeezed into it.” The switch over was difficult but exciting, Bryce said, as veteran anglers banded together to create a

Albacore tuna fisherman Ian Bryce founded Natural Gift Seafoods, the retail part of his business, to satiate local demand. B.C.’s albacore tuna are caught young in order to avoid health risks for humans from mercury and other heavy metals

“There are four families that make some or all of their income fishing on my little 42-foot boat” – Ian Bryce, albacore tuna fisherman

fishery that would not only support their families but also carry a reputation for sustainability. The business plan they came up with was to begin marketing albacore tuna as a premium fish, not your run-of-the-mill canned product. The industry made headway into the Japanese sushi market, where albacore tuna is now served as sashimi.

Wholesalers also found buyers in Spain and North America as the demand for sushi-style restaurants exploded. And anglers changed the way they harvested the tuna to earn a sustainable reputation. Fishermen use artificial lures and barbless hooks to reduce their impact on other sea creatures. As soon as the albacore is on the

boat it’s bled, spiked and immediately put in an ice bath before being blast frozen to maintain the quality of the meat. “Those fish are solidly frozen within a few hours and they stay frozen until they’re ready to be processed,” said Clayton. On top of that, fishermen capture only young tuna that have yet to absorb any significant heavy

metals that pose health risks. As a result, the BC Ministry of Health and the BC Centre for Disease Control have upgraded their consumption limits for albacore to “no limits,” meaning that men, women and children can eat as much as they want without serious side effects. Clayton said the industry has also worked with top chefs to get the word out about their product. As such, albacore tuna earned a 2011 superior taste award from Belgium’s International Taste and Quality Institute. The fishery is also Marine Stewardship Council certified and a member of the Vancouver Aquarium’s Ocean Wise conservation program. Bryce said the changes in the fishery have helped improve market prices for anglers 20% to 25% in the last three years. A skinless, boneless albacore tuna loin retails for approximately $14 a pound, he said, which more than helps his business stay float. “There are four families that make some or all of their income fishing on my little 42-foot boat,” Bryce said. “It’s not a get-rich-quick thing, but there’s decent income.” Still, the industry has one big problem: hardly anyone in B.C. knows about it. “One of the things we’ve never really been able to accomplish yet is to let people know at home that we even have the fishery,” Clayton said. “And that’s just because, how do you do it? You could spend hundreds of thousands of dollars on advertising and people would still walk into the grocery and buy Bumblebee Tuna.” Fortunately, Bryce and his fellow anglers enjoy enough demand from markets abroad that their industry is unlikely to sink any time soon. “Let’s just say things look pretty rosy for the albacore tuna fishery,” said Bryce. • jmckay@biv.com

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Daily business news at www.biv.com June 21–27, 2011

full disclosure

Not in our backyard By Nelson Bennett

n an average day, 35 to 40 tanker trucks filled with jet fuel pass through Richmond on their way from the Cherry Point refinery in Washington state to Vancouver International Airport (YVR). That accounts for just 20% of the jet fuel consumed at YVR. The rest comes from Kinder Morgan’s Trans Mountain pipeline. As air travel increases, 200 tanker trucks per day may be needed in a few years, warns Adrian Pollard, project director for Vancouver Airport Fuel Facilities Corp. (VAFFC), unless a $100 million aviation fuel pipeline through Richmond is approved. Tony Gugliotta, senior vicepresident of marketing and business development for Vancouver Airport Authority, said the airport projects growth in air traffic that simply can’t be met by the six-inch diameter Trans Mountain pipeline, which is more than 40 years old. “It doesn’t have the capacity to deal with the fuel requirements because of the size of the pipeline,” he said. “And it is an older pipeline. We would feel a little more comfortable with it if we replaced it with a new pipeline.” But a grassroots organization in Richmond called VAPOR (Vancouver Airport Pipeline Opposition for Richmond), says the project carries

too heavy a risk for the Fraser River. “The pipeline’s bad, but what’s really bad is the marine terminal with 80 million litres of jet fuel stored in six-storey tanks at the foot of Williams [Road],” said VAPOR member Carol Day. Day’s group has local political support. Richmond city council is unanimously opposed to the project, and Liberal MLA Linda Reid (Richmond East) has taken a stand against it.

“If one of the refineries shut down for a period of days, airport operations would be jeopardized” – Duncan Dee, CEO, Air Canada

“I believe the risks for the South Arm of the Fraser River are, frankly, too great,” Reid said. “My fears centre around the offloading facility. I’m not sure why we would have it the furthest point possible from the airport and risk the river each time that product is unloaded.” Opposition mounts The Environmental Assessment Office (EAO) has received more than 350 submissions, most of them opposing the proposal. The opponents

say there are alternatives that have not been fully explored. Port Metro Vancouver is also questioning whether VAFFC has thoroughly explored the alternatives. “There has not been a strong enough argument presented that replacement of the existing pipeline delivery system is not viable,” Juergen Baumann, the port’s manager of environmental programs, said in a March 18, 2011, letter to the EAO. The port authority is conducting its own environmental assessment, including a fuel spill risk analysis. The VAFFC looked at 14 options for fuel delivery and settled on the Richmond pipeline proposal as the best one. The South Arm is deep enough to allow 1,000-foot-long Panamax fuel tankers to dock there, for one thing. Since VAFFC would own the terminal, it could go to the world market and bring aviation fuel in from anywhere in the world, wherever it is cheapest. Fuel would be piped off tankers docking at the marine terminal to YVR, with surplus fuel stored in six large tanks holding up to 500,000 barrels of fuel. The terminal is just upstream from Waterstone Pier condominiums, where homeowners are upset over the prospect of living downstream from the proposed terminal. Otto Langer, a former Department of Fisheries and Oceans mar-

Dominic Schaefer

An airline consortium’s $100 million plan to bring fuel tankers up the Fraser River and pump jet fuel via a 15-kilometre pipeline to Vancouver Airport is meeting heavy resistance in Richmond

Carol Day, centre, former DFO marine biologist Otto Langer (left) and Scott Carswell, a condo owner at Waterstone Pier, are among the Richmond residents opposed to the Vancouver Airport Fuel Storage Project

ine biologist, said the VAFFC’s own risk analysis anticipates a spill every one to six years of up to 50 barrels of fuel. While most of the fuel would be expected to evaporate, even smalls amounts can be deleterious to fish, Langer says in a brief to the EAO. It’s not just the marine terminal and the risks it poses that worry Richmond residents. Many don’t like the idea of a new pipeline carrying jet fuel cutting through their city, although they already have one – the Trans Mountain pipeline.

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The exact alignment of the pipeline has yet to be determined. The plan originally places it south to north via Shell or No. 5 roads, then east-west, generally along Bridgeport Road. But April 28, the VAFFC asked the EAO for a 120-day suspension while it explored Highway 99 as a possible alternative south-north route. That option will need the provincial Ministry of Transportation’s approval. The Highway 99 alignment, which would avoid residential areas, makes the plan only marginally

News

June 21–27, 2011 Business in Vancouver

more acceptable to the City of Richmond. “Number 1, we’re opposed to it,” said Richmond Mayor Malcolm Brodie. “Number 2, if it gets rammed down our throats, we would want the highway option rather than Shell Road.” However, Brodie said the city wants the VAFFC to reconsider twinning or otherwise upgrading the existing Trans Mountain pipeline. Former Richmond city councillor Rob Howard – now Liberal MLA for Richmond Centre – doesn’t believe that’s a realistic option. If a 15-kilometre pipeline through onecity(Richmond)isgeneratingsuch intense opposition, he suggests a 42-kilometre pipeline upgrade through three (Burnaby, Vancouver and Richmond) would be an even tougher sell. “Most of that area has densified [over 40 years], and I just don’t know that that’s a viable option,” Howard said. Airlines need reliable fuel supply While the majority of citizens in Richmond may oppose the plan, various business organizations, including the Vancouver Board of Trade and BC Business Council, support it, Pollard said. And, not surprisingly, so do the airlines. Duncan Dee, executive vicepresident and CEO of Air Canada, warns that airport operations

in Vancouver could be jeopardized if one of only two refineries in the region – Cherry Point in Washington state and the Chevron Canada refinery at Burrard Inlet – ever shut down, even temporarily. “As an airline, we are concerned that we have access to only two sources of fuel,” Dee said in a letter to the City of Richmond November 25, 2010. “If one of the refineries shut down for a period of days, airport operations would be jeopardized. Air Canada and the other airlines who jointly own VAFFC require a reliable and competitively priced fuel supply.” Of all the alternatives to the proposal, upgrading the Trans Mountain pipeline appears to have the most support. That would require VAFFC to work with Kinder Morgan on an upgrade, something the company said it’s willing to consider. “Kinder Morgan Canada is willing to explore options to expand the pipeline system to serve the airport’s needs,” Lexa Hobenshield, Kinder Morgan’s manager of external relations, said in a written response to Business in Vancouver. “However, expansion requires commercial terms that are acceptable to all parties involved, and a customer that is willing to have those discussions.” But upgrading the pipeline would not satisfy VAFFC’s desire to control

VAFFC

full disclosure

A consortium of airlines wants to replace the existing Trans Mountain pipeline (in red) with a new one through Richmond (in green). The orange line shows the route where tanker trucks currently bring in jet fuel from Washington state to augment the fuel from the Trans Mountain pipeline. The yellow slashed line shows the proposed marine tanker/barge route

the fuel supply. “We still have to resolve the supply chain issues at the other end,” Pollard said. “We don’t control any facilities or marine terminals.” Asked what will happen if the EAO rejects the VAFFC’s application, Gugliotta said it would create uncer-

tainty for the airport authority. “If there was a disruption, the airport could operate for three days,” Gugliotta said. “With the new tanks [under construction], we’ll be able to operate for a week. “The ideal situation is you want to have enough fuel to operate for 15

days. If there’s ever any disruption to the supply process and an airport can’t operate, the consequences are just dramatic.” The EAO is expected to make a decision on the application by the end of this year. • nbennett@biv.com

Daily business news at www.biv.com Business in Vancouver June 21–27, 2011

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News

June 21–27, 2011 Business in Vancouver

Goodwill: Lost amid chaos police cruisers, were overturned and/or torched. Windows were broken at numerous retail shops and merchandise looted. In the June 14, 1994, melée, the total damage to downtown stores was estimated at $1 million. Seventeen years and a day later, the London Drugs at Georgia and Granville alone estimated looters stole $1 million in merchandise. The Bay, Chapters and Sears were among the other big retailers hit. The images of chaos, much of it perpetrated by people wearing Canucks jerseys, were carried by media outlets around the world.

“It’s now unfortunate that Vancouver 2010 appears to be the exception to the rule, not the norm. That hurts Vancouver’s brand as a world-class, progressive, compassionate city” – Tom Mayenknecht, principal, Emblematica Brand Builders

Emblematica Brand Builders’ Tom Mayenknecht said the incident probably undid all the goodwill and earned reputation from the 2010 Winter Olympics’ wildly popular street celebrations and live sites. Now there are serious questions about the viability of comeone, come-all civic events in downtown Vancouver. “We’re not the first city to go through public disorder, vandalism and violence in and around a big event. We’re not even the first to have rioting after a sports event; witness downtown Montreal after the Canadiens won the Stanley Cup in June of 1993,” Mayenknecht said. “Yet it’s now unfortunate that Vancouver 2010 appears to be the exception to the rule, not the norm. That hurts Vancouver’s brand as a world-class, progressive, compassionate city.” The city spent at least $1.3 million on extra policing during the two-month playoffs and set up live sites with giant TV screens on Granville Mall and on Georgia, Homer and Hamilton streets with the CBC. The no-alcohol, free admission zones were supposed to prevent a repeat of 1994, but backfired.

“As deep as the regret and embarrassment is, this is the common perception of what we’re all about,” said Tourism Vancouver president Rick Antonson. “It’s wrong, it’s inaccurate but it’s dominating right now.” In 1994, the Vancouver riot was a big story for two days until a sensational celebrity murder investigation took an odd turn on live TV. “You know what happened in 1994 that took it off the front page and took it off being the lead item? A guy in California jumped in a white Bronco and started driving down the highway,” Antonson said, referring to O.J. Simpson. “That became everything, 24 hours a day, in all media.” After the most-watched NHL game in history, news spread rapidly of the 2011 riot via the Internet. CBC and CTV streamed live. The riot became a trending topic on Twitter. Vancouverites woke up to the damage the next morning. Volunteers, who rallied via social media, arrived with brooms, shovels and garbage bags to clean up the mess. Some were even wearing Canucks jerseys to demonstrate their pride in both the city and team. “Bloggers are starting to say, “That’s not my Vancouver, let me tell you about my Vancouver,’” Antonson said. “It’s impressive to see, it’s truth-based and will win out over time.” Still, Mayenknecht warns, the volume of ugly images is far greater than 1994 because of the power and reach of the Internet. “Internet-era tracking makes this riot much more damaging than that following Game 7 in 1994. The images of overturned police cars, cars on fire and broken shop windows made their way around the world,” Mayenknecht said. “And that stain will stay there, at the click of a computer key.” Downtown’s first big test is Canada Day at Canada Place. Downtown Vancouver Business Improvement Association president Charles Gauthier is predicting Vancouver will make a comeback. “Downtowns of cities are quite resilient,” Gauthier said. “I’m quite confident this is not going to deter or have a negative impact on the brand. It’s not like this is years of instability or days of instability like we see in other countries.” • 2010goldrush@gmail.com twitter.com/bobmackin

Shattered image: Vancouver’s brand was tarnished by photographs seen around the world, like the breaking of store windows at Chapters at Robson and Howe

Baila Lazarus

from Vancouver’s, 1

Finance

Daily business news at www.biv.com June 21–27, 2011

BY THE NUMBERS

Losses are shown in brackets. Graph information by Stockwatch.

Canlan Ice Sports Corp. (TSX:ICE)

▲3%

$1.8m

Revenue: $20.4m 3 months 2011

Net income 3 months 2011

Icy hot: The ice-rink owner posted the largest quarterly revenue in company history in the first three months of 2011, totalling $20.4m. Still, a 4% increase in operating expenses to $14.6m hurt Canlan’s net income, which was down 10% to $1.8m in the first quarter when compared with the same Earnings per share period in 2010. As of March 31, the company held cash and 3 months 2011 cash equivalents totalling $7.4 million.

$0.14

$2.5 $2.0 $1.5 $1.0

Taseko Mines Ltd. (TSX:TKO)

▼22% $5.7m Revenue: $58.8m 3 months 2011

Net income 3 months 2011

Copper crunch: A 48% increase in Taseko’s copper production costs negatively affected the company’s revenue and net earnings in the first quarter of 2011. Taseko mined more copper in the first quarter of this year compared with 2010, but it milled less ore and, as a result, its total Earnings per share production decreased 17% to 19.2 million pounds. The 3 months 2011 company had $193m in cash as of March 31.

$0.03

$8 $6 $4 $2

Webtech Wireless Inc. (TSX:WEW) Hard times: The wireless technology company called the first quarter a “disappointment,” following a drop in lower-margin hardware sales and challenges surrounding warranty and hardware issues within the company’s Interfleet business. Webtech commenced a restructuring in February, and with a Earnings per share new board in place plans to achieve positive adjusted EBITDA 3 months 2011 later this year. The company had $9.5m in cash at March 31.

▼11% ($6.2m) ($0.07) Revenue: $9.3m 3 months 2011

Net income 3 months 2011

$0.60 $0.50 $0.40 $0.30 $0.20

Emotional IQ key to avoiding common investment mistakes, advisers told By Richard Chu

nvestors are often advised to be dispassionate when making investment decisions. But that advice might be doing their portfolios more harm than good. Meir Statman, a finance professor and behavioural finance expert from Santa Clara University, told a recent CFA Vancouver luncheon that a narrow focus on investment returns can blind advisers to the deeper psychological desires of investing. Some of those desires include: • security from becoming

poor; • hope in becoming rich; • prestige and social status; and • the thrill of beating the market. Those desires might seem obvious, but Statman said the finance community has largely tried to detach them from investment decisions. That, he said, doesn’t benefit investors when emotions and desires are naturally tied to investments. “While my colleagues have focused on errors in thinking that lead to errant investment behaviour, I say that there is a need to step

back and ask yourself why we commit those errors, which are led by our emotions.” Statman noted that emotional and social desires are somewhat addressed as part of the initial discussion between investment advisers and clients. But that process tends to focus more on understanding clients’ risk tolerance than addressing their underlying desires. By addressing the desires, advisers can better understand their clients and explain investment decision tradeoffs. Lower risk see Know, 9

Richard Chu

Behavioural finance expert warns of hidden tradeoffs associated with investors’ psychological desires

Meir Statman, finance professor at Santa Clara University: emotions and desires are naturally tied to investments

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finance

June 21–27, 2011 Business in Vancouver

B.C. exports fall in april B.C.’s exports drop 9.1% to nation’s 1.9%

True wealth

Thane Stenner A new way to look at risk

ne way to control risk is to identify “asymmetric” risk-return scenarios – situations in which the possibility of loss is greater than the possibility of return (or vice versa) or the amount of possible loss is greater than the amount of possible return (or vice versa). Whatever strategies you use to manage risk, the first step is to identify these asymmetric scenarios. This can be the key to avoiding big mistakes or capitalizing on big opportunities – and many times, both. Consider the investment bubbles of the past dozen years: dot-com stocks, telecom, housing. In each, many investors accepted an asymmetric risk-return scenario, hoping to capture an uncertain amount of further gain when any rational analysis would have concluded that both the possibility of loss and the amount of possible loss were far greater. This kind of analysis is something high-net-worth individuals tend to do very well. Most have a knack for taking profits off the table

before a bubble forms (or shorting assets after it does). And they generally have a keen eye for bargains, buying unloved assets with big potential before the crowd starts bidding up the price. How do they do it? First, they identify asymmetric scenarios through research and analysis. After that, it’s a matter of ignoring both the greed and the fear that can grip all investors (including the wealthy) from time to time. Is such skill exclusive to the wealthy? Of course not. Today, any reasonably knowledgeable investor can perform some simple financial analysis, gather second (and third) opinions and identify situations in which a market or asset looks to be getting over or undervalued. Here are two recent examples. Japan: Early in the year, we invited three well-respected investment managers to speak about international opportunities; all agreed that Japanese equities had been out of favour for so long there was little downside left. However,

none of them could identify a catalyst for Japan. Risk and reward were roughly balanced, and both downside and upside were limited. The tsunami/nuclear disaster changed things. Suddenly there was a catastrophic (though temporary) disruption to the Japanese economy, which created a catalyst for economic renewal. Over the longer term, Japanese companies would be the benefactors of that renewal. Risk and reward became asymmetric, and potential upside was greater than potential downside. We began adding positions in select Japanese bluechip equities for some of our more sophisticated, more opportunistic clients. We see this not as speculation, but a deepvalue, contrarian investment that should add some alpha to clients’ overall portfolios. U.S. dollar: Over the past 18 to 24 months, the Canadian dollar has strengthened against the U.S. dollar. Over the medium to long term, this is not necessarily good news. A strong loonie may have a negative impact on our export-centric economy. And once the U.S. cleans up its budget problems, that should provide a catalyst for the greenback to strengthen.

Our analysis suggests the loonie could rise to its alltime highs (another US$0.05 to US$0.07) in the short term, but in two to three years it will likely settle to parity or below. In fact, purchasing-powerparity suggests the intrinsic value of the Canadian dollar is around US$0.93 to US$0.95. This is the very definition of an asymmetric risk-return scenario: $0.05 potential upside, $0.10 potential downside. As a result, we’ve started to transition out of Canadian-dollar-denominated assets and into U.S.-denominated assets, encouraging clients to take positions in U.S. equities and real estate. We haven’t done it all at once, because there’s no way to time the trade perfectly. But when it comes to managing risk, we’d rather be generally right than precisely wrong. • Thane Stenner (thane.stenner@richardsongmp.com) is the founder of Stenner Investment Partners within Richardson GMP Ltd. He is also managing director for Tiger 21 Canada (www.tiger21.com/ canada) and the author of True Wealth: An Expert Guide for High-Net-Worth Individuals. His column appears every two weeks.

▼9.1% ▼22.2% ▼6.5% ▼6.1% B.C. April B.C. April B.C. April B.C. April export value export value export value export value (overall) (industrial, (energy) (forestry consumer) products) The value of exports from B.C. fell sharply (-9.1% seasonally adjusted) in April. While exports of agriculture and fish products (0.9%) and machinery and equipment (1.7%) rose slightly, shipments of industrial and consumer products (22.2%) plummeted. Also registering substantial declines were exports of energy (-6.5%) and forestry (-6.1%) products. The value of goods bound for U.S. customers was down (-4.9%) for a third straight month.

B.C. housing starts surge in May Housing starts in B.C. surged ahead 30.2% (seasonally adjusted) in May, building on the 21.9% increase posted a month earlier. Nationally, the number of new housing starts advanced slightly (2.7%) in May.

-BC Stats Infoline, Issue 11-23, June 10

Private radio operating revenue holds steady Operating revenue at B.C.’s 106 private radio broadcasting stations remained virtually unchanged (0.1%) at $209 million in 2010. Most of that revenue (98%) was from advertising sales. Revenue remained markedly lower (-7.7%) than in 2008.

-BC Stats Infoline, Issue 11-23, June 10

North Coast/Nechako sees strongest job gains At the regional level, jobless rates (unadjusted three-month moving average) ranged from 5.1% in Northeast B.C. to 9.5% in Kootenay. A double-digit gain in employment in North Coast/Nechako (11.6%) was the strongest in B.C., followed by more modest increases in Northeast (4.6%), Mainland/Southwest (2.0%) and Thompson-Okanagan (1.3%). Employment inched ahead (0.4%) in Cariboo, while falling in Vancouver Island/Coast (-3.7%).

-BC Stats Infoline, Issue 11-23, June 10

7TH ANNUAL

Know your tendencies: Help prevent decisions that will result in investment loss from Emotional, 8

investments, for example, won’t have the same capital gain potential as growth stocks. “You have to figure out what you really want and ask yourself if you’re willing to pay the price of what you want. There are trade-offs between what I call utilitarian benefits, like high returns, and expressive and emotional ones, like status and security.” Statman said knowing one’s emotional tendencies could also help prevent decisions that result in investment losses. Investors with a stronger fear of poverty might also be more likely to make the cardinal mistake of selling low after buying high, especially during a severe market correction like the one that followed Bear Stearns’ collapse in late 2008. Conversely, investors looking for strategies and opportunities to beat the market might wrongly base decisions on market patterns that

might appear sound because of historical evidence, but are based on wishful hindsight analysis. Investors should also ensure they don’t make the mistake of looking for evidence to confirm beliefs and strategies, while overlooking or discarding what doesn’t.

“Investors tend to think when the market has gone up, the market will go up. In truth, more often than not, the opposite is true” – Meir Statman, finance professor, Santa Clara University

Advisers of ego-driven investors might also want to take greater care in helping clients understand the dangers of investing in exclusive clubs or funds. “Think about Bernie Madoff,” Statman said. “How did he get his money? He

made it an exclusive club.” Other key investor mistakes include basing decisions on market sentiment or trying to time the market. “Investors tend to think when the market has gone up, the market will go up. In truth, more often than not, the opposite is true. When they feel good about the future, if anything, the future is not going to be as good as they predicted.” Ultimately, Statman said that having a diversified portfolio of investments remains a tried-and-true strategy to protect portfolio value, even during the stock market volatility of the past few years. “Diversification is about not having your entire portfolio in the crummiest assets. In exchange, we also give up returns of the best performing assets. It’s not to prevent losses, but it can mitigate them. Diversification says you will be somewhere in the middle, and [over the past few years] it worked.” • rchu@biv.com

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Technology

Daily business news at www.biv.com June 21–27, 2011

A smart home with a smartphone By Nelson Bennett

ven the most energy-efficient home is a kind of Tower of Babel, where heating, ventilation, hot water tanks and humidifying systems don’t speak the same language. The result is wasted energy. “The big problem is you just leave so much on the table,” said Byron Gallant, co-owner of B. Gallant Homes Ltd., which recently built a house in Nanaimo that incorporates an energy monitoring and regulating system controlled by a tablet. “The technologies seem to act independently and it’s not working efficiently.” The Ekostat system, developed by Qmata Technologies Inc., uses sensors, wireless technology and an Android tablet to regulate the heating, cooling and ventilation system of Mike Legge’s new home in Nanaimo. The Ekostat is the brainchild of Mat Hallam-Eames, a programmeranalyst-turned-plumber who used his unique set of skills to resolve a problem he faced whenever he installed an energy system. The problem is that manufacturers have their own built-in control systems (thermostats and sensors) that are not compatible with other home systems, Hallam-Eames said. A home’s heating system, for example, might not be able to be synched with the hot water heater or

air conditioning. “I’d get really frustrated because we’d have to jury-rig things,” he said. “Sometimes when we put in, say, a solar [water heating system] together with a heating system with something else, we’d have to have three different control systems.” Reaching into his software programming tool kit, Hallam-Eames developed Ekostat. About a year and a half ago, he approached Gallant, who happened to have a client – Legge – who wanted a state-of-the-art

“I’d get really frustrated because we’d have to juryrig things. Sometimes ... we’d have to have three different control systems” – Mat Hallam-Eames, creator, Ekostat

energy-efficient home and was willing to allow his home to be a demonstration project for the Ekostat system. Legge’s new home was showcased earlier this week in a series of open houses. It features a number of “green” elements, including a system that uses grey water from laundry, showers and the dishwasher to flush toilets and a “solar chimney” that

controls ventilation. Radiant heat, which Gallant and Hallam-Eames say is more efficient than forced air heating, is used to heat Legge’s home. The floors are heated with pipes carrying hot water from a boiler. Qmata’s Ekostat system uses 36 sensors throughout Legge’s home, wired into control boards, with information transmitted by Bluetooth to an Android tablet, which in turn regulates the indoor climate. If the homeowner decides it’s too chilly in one room, he can use his smartphone to pull up a floorplan and adjust the temperature in that one room. In multi-family developments, like townhouses, Hallam-Eames said the various units could be integrated. When one unit is too warm and another too cold, the Ekostat system could be used to balance the temperature differences. “The two houses will be able to swap energy,” he said. “So there will be a community aspect to it.” Hallam-Eames and Gallant say it’s too early to say just how much energy will be saved in Legge’s demonstration home by the Ekostat system, but are hoping it will be in 75% range, which would save Legge about $1,000 a year. Recently, Hallam-Eames brought Michele Philp on board as CEO to help take the company from startup stage to commercialization. The

Dominic Schaefer

Getting a home’s energy systems to communicate with each other to achieve maximum energy efficiency is the goal of Ekostat, which regulates indoor climate with an Android tablet and enables houses to swap energy

Now that a demonstration project using the Ekostat energy-management system is underway in Nanaimo, Michele Philp and Mat Hallam-Eames of Qmata Technologies plan to seek licensing agreements, partnerships and venture capital

company has grown from one – Hallam-Eames – three years ago to a staff of nine today. Clay Howey, research head for BCIT’s Group for Advanced Information Technology, said Qmata will be competing with other wirelessbased “smart energy” systems. “The overall idea is not unique,” he said. “The problem is there’s lot of people doing it in lots of different ways.” One of the problems for companies involved in smart-energy systems is that a range of wireless technologies and standards are being used

by the manufacturers of various systems (Wi-Fi, Bluetooth or Zigbee, for example). The advantage of the Ekostat system, according to Qmata, is that it can integrate information sent from a variety of energy systems transmitting information over any number of different wireless devices. “We have a whole range of communications,” Hallam-Eames said. He added there are other potential applications for Ekostat, including regulating the climate for greenhouses. • nbennett@biv.com

High-Tech Office

Alan Zisman Apple’s growing popularity increasingly making Macs malware targets

or a long time, most Mac users have gotten along fine without installing the sort of security programs Windows users take for granted. Perhaps the Mac, built on an industrial-strength Unix core, is more secure. Or perhaps malware authors have simply ignored the Mac platform, aiming instead at the much larger numbers of Windows users. In May, though, some Mac users got a taste of what’s become a common experience for Windows users: scareware. Rogue websites and Facebook and Twitter messages – some promising news about Bin Laden’s death – led users to a page that claimed their Mac was infested with a variety of infections. Web searches for “Mac anti-virus software” led to similar rogue web pages. Users were recommended

“MAC Defender” (or “Mac Protector” or “Mac Security”) to remove the “infections”; after downloading and installing the program, users would be prompted to enter a credit card number before the software would pretend to clean up the non-existent problems. Until users paid up, the software repeatedly popped up porn web pages as proof that the computer had been infected. Besides the $60 to $80 cost of registering the software, users who entered credit card information risked identity theft and other charges to their card. Unlike some Windows malware, this software did not install itself automatically as the result of visiting a rogue web page; users needed to actively agree to download it and to enter their system password, in effect agreeing to

infect their computer. If a user can be convinced to install malware, it doesn’t matter how innately secure his or her computer is. Mac owners are similarly targeted by email-delivered phishing scams just like Windows users and are equally likely to fall for these identity-theft scams. Moreover, the default setting in Apple’s Safari web browser allows “safe downloads” to open automatically; if a user clicks to download MAC Defender, its installer auto-opens, leading some users to assume it’s safe to allow it to proceed. In late April, security experts announced the discovery of a do-it-yourself malware kit targeting Mac OS X, similar to long-available Zeus and Spy Eye kits aimed at Windows users. This suggests that Mac users will find themselves a growing target, an ironic bow

to Apple’s sales success. A 2008 SourceFire report predicted that the Mac would become an attractive target when its market share reached 16%. The Mac has recently reached that in the U.S., Switzerland and several other countries and is just below it (14%) in Canada.

If a user can be convinced to install malware, it doesn’t matter how innately secure their computer is Adam O’Donnell, author of the 2008 report, commented, “People are testing the waters. It has just become economically viable to do it, so you will start seeing these attacks becoming more common.” Another factor: the slow decline in popularity of Windows XP. Microsoft reports it finds 15.9 infected XP systems per thousand compared with 3.8 for Windows 7

systems, suggesting the newer version is about four times as secure. As fewer easily infected XP systems become available, malware authors are looking for new targets. MAC Defender (however named) infections of Macs remain relatively rare – though anecdotal reports are piling up. ZDNet’s Ed Bott reported that an anonymous AppleCare representative told him call volume was four to five times higher than normal, mostly due to MAC Defender. Mac users: go to Safari’s preferences, and uncheck the option (on the General tab) to “open ‘safe files’ after downloading.” Consider installing antivirus software like Sophos Mac Anti-Virus (free for

home users: www.sophos.com/ freemacav). Don’t automatically run applications from unknown sources. And don’t believe everything a web page (or even a Facebook “friend”) tells you! If your Mac has been infected with MAC Defender, follow the removal instructions at: http://bit.ly/ktk9Ny. And Windows users, while it’s fair to gloat a little bit, remember, your platform has it much worse – recent stats suggest that a full one in every 14 Internet downloads is Windows malware. • Alan Zisman (www.zisman. ca) is a Vancouver educator and computer specialist. His column appears weekly.

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Real estate

June 21–27, 2011 Business in Vancouver

real estate roundup

Peter Mitham South Okanagan attracts investment, confronts change Retrospective One admires the can-do attitude of Osoyoos Chief Clarence Louie that has driven projects such as Canyon Desert – both the repositioning of the golf course as well as the new Bellstar development – and past projects including Spirit Ridge Resort and Spa and Nk’Mip Cellars. The past decade has seen the band’s activities contribute to transformation of Osoyoos and Oliver for a new generation of vacationers. Osoyoos is now a resort municipality, and new projects such as the Cottages on Osoyoos Lake by Chilliwack’s Van Maren Group are benefitting from successes to date. But one of the shuttle drivers couldn’t help but notice that the changes that benefit her business

Delicate balance A challenge Brent Toderian has faced regularly since his appointment as director of planning for Vancouver is push-back from homeowners over initiatives ranging from EcoDensity to new community plans to protests against specific developments. The outcries have a common theme: concern that what makes the city what it is will be lost in the city’s transition to its future self. Speaking to the local chapter of the Urban Land Institute (ULI) on June 2 as part of a panel regarding future land-use scenarios, Toderian doesn’t foresee the encounters stopping.

Peter Mitham

Bellstar digs in A ceremonial sod-turning on June 10 marked the launch of Canyon Desert Resort, the latest project Calgary-based Bellstar Hotels and Resorts Ltd. is undertaking in B.C. through its development wing, Bellstar Developments Inc., in partnership with the Osoyoos Indian Band and GGC Developments Inc. (also developer of Watermark Beach Resort in Osoyoos). A show home will be built this summer while the first phase of 17 lots is expected to be under construction later this year. Six sales have occurred to date, primarily to buyers from B.C. and Alberta. The project will see 450 villas developed on a strip of land between Nk’Mip Canyon Desert Golf Course and the course’s clubhouse. Curt Jansen, director, resort real estate, with Bellstar, describes the project as “golf-cartfriendly.” All homes will have a spot to park residents’ golf carts, which will be able to scoot down to the shores of Tuc-el-Nuit Lake. The emphasis is on lifestyle, with “rural authenticity” and “big city amenities” touted on the project’s fact sheet. When not teeing off on the green, residents have boating, birding, biking and hiking within walking distance, as well as the local hospital. The project is seen as a significant boost to Oliver, which is seeking to capitalize on its identity as “wine capital of Canada” (a change from last century, when it was the country’s cantaloupe capital).

and other tour operators in town have also cut down on the amount of foot traffic. Osoyoos’ Main Street was once thronged with tourists in summer; now, vehicles dominate as visitors flit to and from beaches, wineries and other attractions on four wheels rather than two feet. The question is, will local infrastructure adapt?

View this: Canyon Desert Golf Course in Oliver will be at the doorstep of a new development the Osoyoos Indian Band is pursuing with Bellstar Development and GGC Developments

Many former industrial areas around Coal Harbour, False Creek and now the Fraser River, have been allocated to residential development. The remainder is now seen as too valuable to lose, not only because of ongoing demand but because of a fashionable anticipation that many manufacturers will repatriate jobs to save on labour and shipping costs. “The easy parts are over,” Toderian said. “We’re going to be into the gradual evolution of the city.” While existing neighbourhoods were largely unscathed by previous rounds of gentrification and densification, the same may not hold true in future. The recently formed Residents Association Mount Pleasant (RAMP) wants a say in how its neighbourhood evolves, following a path worn by Norquay residents in 2007 and the celebrated “NPA hacks” of the West End that Mayor Gregor Robertson referenced in an unscripted council moment last summer. The good news is Toderian would seem to agree with RAMP that highrises are not always the source of density. Toderian told the ULI he expects Vancouver to pursue a mid-rise course punctuated by towers, showing slides of projects including Intergulf Cascadia’s project at 1740 West Broadway and the Elements development at Broadway and Ontario Street. A low- to mid-rise vision is also planned for the East Fraser Lands. Robertson touted the plans as emblematic of the city’s future form. “The river … made possible the industrial development and growth that was pivotal in the shaping of this city,” he said, honouring the mills that previously occupied the location. “The evolution of this site really mirrors the changes we’ve seen right across the city and it serves as a marker for where we are going as a city.” • pmitham@telus.net

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Daily business news at www.biv.com Business in Vancouver June 21–27, 2011

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Small business

June 21–27, 2011 Business in Vancouver

Discreet body armour marketed to police Startup business targets law enforcement for its next-generation brand of more-wearable personal protective wear

Harding Tactical Systems CEO Paul Mann believes his body armour business could change the way police protect themselves

The Harding Tactical System (shown with models) is designed to allow users greater mobility in combat situations

By Joel McKay

ocal entrepreneurs say they’ve invented body armour that will not only protect police officers in the line of duty, but also make them look good doing it. Vancouver-based Harding Tactical Systems is hitting the personal protection market with its flagship Harding Trauma Shield, a two-piece tactical suit that’s designed to fit beneath standard issue uniforms. CEO Paul Mann has teamed up with local police officer Fred Harding to revolutionize how every day cops protect themselves on the streets. But body armour is nothing new to specialized crowdcontrol units, so what’s different about Mann’s technology? “It’s like a paper clip,” Mann explained. “If you never had a paper clip, once you start using it you wonder how you did without it.” The Harding technology employs a polymer composite to protect officers from blunt-force impact. It can’t stop a bullet, but

That’s not a heck of a lot different than what’s already available, but what is different is the fact that the Harding gear is comfortable and can be worn covertly. The concealed nature of the product allows users to wear it with street clothes or undercover, Mann said, and it’s been designed to look somewhat stylish. On top of that, he said it

provides a far greater range of movement than traditional body armour. That means police officers can wear armour without attracting too much attention, and also be able to move more easily in combat situations. Although the product has barely hit the market, the Justice Institute of B.C. has agreed to put it to the test. “My sense is anything that provides good protection and allows comfort and flexibility in its use, I think will be looked at quite closely by police forces, corrections, sheriffs and others,” said Mike Simpson, dean of the public safety and security school at the Justice Institute. Simpson believes an initial market for the product could be in training centres. Today, law-enforcement recruits are trained using bulky body-armour suits that are difficult to move in. As a result, recruits don’t get the best sense of how real life combat situations unfold. “You can’t really run in

would help it overcome that challenge, and the results it expects to achieve. The judging panel consists of Mia Pearson, co-founder of North Strategic; Stuart MacDonald, independent business adviser and investor; Mark Healy, partner at Satov

Consultants; Noel Hulsman, editorial manager of the Globe and Mail’s Custom Content Group; and Jim Senko, SMB marketing leader, Telus. Application deadline is July 6. For more information, visit the Globe and Mail Report on Business website. •

an officer on the street won’t sustain as bad of an injury if he or she gets whacked with an iron bar or wooden stick.

“It’s a bit like you holding your arm up and me swinging a baseball bat at it, and you being able to sustain that hit and carry on” – Paul Mann, CEO, Harding Tactical Systems

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them, you can’t really move around very much in them,” Simpson said. “They do their job, they absorb the hit but in terms of creating a reallife scenario for student officers to practice on, it’s not quite there.” The Harding technology could offer an alterna-

tive, though it would only be a small market for a company with much larger ambitions. Mann wants to see his suits in police departments throughout North America, implementing them in crowd-control units to start with. Last summer, Vancouver Police Department Sgt. Jeff Harris donned the Harding suit for two shifts during the Celebration of Light. “I had a guy whack me with one of our batons, the steel ones, he got me across the shin and … there was no bruise, it didn’t really hurt,” Harris said. “So you can take a lot of punishment with that stuff.” He said the technology is perfect for a crowd-control unit, but he wouldn’t recommend it for every day patrol. “I don’t need that kind of protection every day on the job, and it would be too cumbersome and it would be too hot.” In order to get its product

to market, the company is focused on building a reputation for its gear with trainers and police departments. Mann said the company is already in talks with a number of departments, and once the product gets off the ground he sees further use for it in extreme sports and mixed martial arts training. But even if it takes a little while for business to get off the ground, Mann said the product’s “astronomical” profit margins would generate much-needed revenue right away. In the end, it’s the simplicity of the product that he believes will attract customers. “It’s a bit like you holding your arm up and me swinging a baseball bat at it, and you being able to sustain that hit and carry on,” Mann said. “In most cases, you would have a broken arm. When we show that to the [police] departments that’s what really sells it.” • jmckay@biv.com

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Sustainability

Daily business news at www.biv.com June 21–27, 2011

Panellists hash out green business case Experts look at areas of innovation, carbon accounting and risk management in dicussing bottom-line benefits of sustainability By Jen O’Rourke

Charlene Easton, senior manager, sustainability, Ernst & Young: companies should just jump in, taking small steps

Darcy Dobell, vice-president, Pacific region, World Wildlife Fund Canada: companies can enjoy unanticipated benefits

Doug Burgoyne, founder, Frogbox: consumers should continue to reward companies that reflect their own vision of social responsibility PHOTOS: DOMINIC SCHAEFER

anellists came together to weigh in on how going green makes for better business, both ethically and financially, at Business in Vancouver’s annual Green Breakfast. This year’s panel was made up of Doug Burgoyne, founder of Frogbox; Darcy Dobell, vice-president, Pacific region, for World Wildlife Fund Canada (WWF); and Charlene Easton, senior manager, sustainability with Ernst & Young. The breakfast was held June 7 at the Simon Fraser University Segal School of Business. It coincided with the publication of Business in Vancouver’s Green Edition sustainability supplement (delivered with issue 1128; June 7-13). The discussion tackled the demand business owners are facing to become sustainable and how they can go about doing it in a way that improves, rather than hurts, their bottom line. Dobell said that there were “a lot of unanticipated benefits for companies that have made the effort to become sustainable,” such as higher employee retention and attraction to the workplace. All three panellists agreed that having an analysis done to determine exactly where your carbon footprint is the heaviest is an essential step for businesses to move toward sustainability. For Frogbox, Burgoyne used Climate Smart – a company that specializes in helping small to medium-sized businesses become more

environmentally friendly. He said it was the easiest way to simplify the process and determine where to make some changes. “It rea l ly helped us understand where our emissions were coming from and where we could have an impact. It turned out we were focusing effort on areas of our business that were really so minute as far as carbon footprint goes that it didn’t make financial sense.” As to what companies can do right now to become green without dipping into the bank, Easton placed the emphasis on employee engagement and recognition. She suggested businesses just jump in, whether it is toward the small or big picture, and do small things, such as turning off monitors during breaks, to become more sustainable. Her advice for business owners was simple: use peerto-peer programs, have clear targets, remove barriers, measure and communicate results and reward. Going forward, Burgoyne explained what he believes needs to happen concerning the economics of going green. “Businesses really need to look at sustainability as the new place to innovate ... governments needs to tactfully put legislation in place that doesn’t hamper corporations ability to profit, but at the same time pushes them more toward sustainability and … consumers need to continue to reward companies that push sustainability and look for sustainable solutions.” •

Sponsors and panellists (l-r): Nicolas Slobinsky, Pac Blue; Paul Harris, BIV Media Group; Baila Lazarus, BIV Media Group; Jessica Hogendoorn, Encorp; Betty Riddle, SFU; Darcy Dobell, WWF; Charlene Easton, Ernst & Young; Doug Burgoyne, Frogbox; Wilson Ng, Audi

Expert panellists at Simon Fraser University’s Segal School of Business address a full house of students, managers and business owners June 7, and had a clear message: have an accurate understanding of where emissions are coming from before acting on sustainability initiatives

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June1-7, 21–27, issue March 2011;2011; issue 11141130

Business on the comeback tour Recovery continues for B.C.’s largest public companies as demand grows for the province’s goods and services

The global commodity boom contributed greatly to the results of this year’s top 100 list. A third of the province’s largest public companies are in the mining sector and, collectively, posted a 29.4% increase in revenue and nearly doubled the sector’s combined profit. Total revenue for the 33 mining companies on the list rose to $22.9 billion from $17.7, billion with profits rising to $4.5 billion, up from $2.3 billion in 2009. Among the most profitable mining firms in dollar terms were Teck Resources Ltd. (TSX:TCK.B), which recorded nearly $2 billion in profit from $9.3 billion in

50 45 40 35

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Combined earnings continue to improve on increased efficiency $8 7 6 5 4 3 2 1 0 -1 -3

and Interfor both posted roughly 30% increase in revenue in the first three months of the year, while Canfor also posted an 8% increase in revenue for the period. With continued volatility in the equity markets and the global economy in general, companies may be setting their sights increasingly to grow through acquisition. Among the key changes to this year’s top 100 list is the consolidation in various industries in the past year. Some of the largest companies that were acquired included Seacliff Construction, Red Back Mining, Farallon

Mining, Gold Wheaton Corp. and Fronteer Gold. While mergers and acquisition (M&A) activity was very strong last year, the mood remains bullish for more big deals. Andrew Rippy, managing director at Pacific Crest Securities, noted at a recent conference in Vancouver that “he M&A market is fairly healthy. We follow technology and many companies are cash-rich with little debt. Buyers are aggressive in pursuing opportunities where there is growth.” The availability of credit for M&A deals continues to

improve, according to Alan Hibben, managing director of mergers and acquisitions for RBC Capital Markets. However, companies may continue to find it a challenge to find synergistic deals to help boost future growth. “We have overwhelming demand from [companies and private equity firms] looking for ways to change the growth curve, but we are finding quite reluctant sellers out there. Coming out of the downturn, there should be more sellers, but there are not.” • rchu@biv.com

20 10

-2 20 01

growth in 2011

continue to see revenue

19 9

largest companies

$65

19 98

Three-quarters of B.C.’s

Top 100 revenues surge to new record in 2010

Total revenue (billions)

he track record for B.C.’s largest public companies continues to improve despite short-term uncertainty over the direction of the economy. Increasing efficiency, expansion into new markets and a recovery in local and global demand for B.C. goods and services have boded well for many of the companies on this year’s Business in Vancouver list of the biggest public companies in B.C. Total revenue of the companies that made the top 100 rose a remarkable 11.1% to $64.1 billion from $57.7 billion in 2009, topping the previous record amount of revenue generated by B.C.’s top 100 in 2008 of $61.2 billion. But a sign of increasing corporate strength lies in total profitability. While revenue remained high in 2008, profitability at the time sank to $2.3 billion, the lowest level since 2003. This year’s companies raked in a 57% increase in total profit to $5.8 billion, up from $3.7 billion in 2009.

revenue last year. Goldcorp Inc. (TSX:G), which produced a record 2.5 million ounces of gold in 2010, also posted huge profits, primarily from the sale of various assets last year. Other companies like Silver Standard Resources, New Gold Inc. and Taseko Mines Ltd. also grew profitability substantially, posting triple-digit percentage profit growth year over year. Perhaps the best news out of 2010 was the much-awaited turnaround of B.C.’s forestry sector. The 12 public forestry companies on the list collectively posted their first increase in revenue in more than four years. Total revenue rose 23% to $12.1 billion, up from $9.8 billion in 2009. For a sector that continues to improve efficiencies and make inroads into emerging markets like China, the sun is slowly starting to rise again on a key export for the province, which remains an important contributor to the economic well-being of B.C. Fortunately, growth is continuing into 2011. Of the top 50 companies on this year’s list, more than three-quarters have posted first-quarter revenue growth with average growth of 17.6%. Almost two-thirds have posted increases in net profit for the first three months of their fiscal years. Again, the mining industry, especially in the precious metals category, continues to shine. Those with the highest increases in first-quarter revenue included Silver Wheaton Corp. (TSX:SLW), which posted an 84% increase in revenue to $158.2 million, up from $85.9 million. With gold’s price continuing to hover in record territory, both Goldcorp and New Gold have profited. Both companies posted nearly 70% increase in revenue in the first quarter, with Goldcorp posting a 163% increase in profit and New Gold recording an 85% profit rise. Forestry also continues to see top-line revenue growth. Western Forest Products

Billions of dollars

By Richard Chu

Inside Heading out — 18 Large B.C. companies with mature brands are looking for markets outside of the province Telus on top — 21 While other telecoms focused on content production, Telus stayed focused on content delivery Not your average Joe — 25 Local green decaffeinator targets new opportunities amid soaring coffee prices and high dollar

18 Top 100 Public Companies Sponsor’s Message

Daily business news at www.biv.com June 21–27, 2011

Large B.C. companies head out Key to growth for firms with mature brands in the province is to look abroad for new markets

M BRUCE HURST, FCGA Chair of the Board of Governors Certified General Accountants Association of British Columbia

On behalf of the Certified General Accountants Association of British Columbia, I am pleased to congratulate all those who were selected as Business in Vancouver’s Top 100 Private Companies. The companies who are being honoured have made important contributions to business in B.C. and they deserve to be recognized. What is even more important, however, is that each company’s success can be so far reaching. Corporations today cannot serve their own interests exclusively but must also consider their impact in the communities in which they operate. This year’s honorees carry on a wonderful legacy of achievement and community involvement throughout the province and are to be commended. CGA-BC is a proud sponsor of these awards. On behalf of our Association’s nearly 15,000 CGAs and CGA students I would like to thank Business in Vancouver for recognizing these remarkable companies. CGA-BC represents accounting professionals who work at every level of government, in public practice and for companies throughout the province. CGAs have been a vital part of the business community in B.C. for more than 60 years and we wish all those who were honoured continued success.

ost of B.C.’s large public retailers, manufacturers and distributors are increasing sales and expanding operations faster outside the province than inside. Often the reason is because they have such a strong presence in B.C. that it is easier to chalk up high growth rates from the smaller revenue base in the rest of the world. Lululemon Athletica Inc., for example, grew revenue 2,742% to $16.6 million in its Hong Kong and Australian division in the year that ended January 30, 2011. That compares with a 57% revenue jump overall, to $711.7 million in the same year. The yogawear-seller’s revenue growth in Canada was hardly sluggish, at 37%, but it was far below the company’s 79% sales jump in the U.S. in that fiscal year. The company (TSX:LLL; Nasdaq:LULU) has more stores per capita in B.C. than in the rest of Canada but it does not break out its revenue for this province alone. Neither does Coastal Contacts Inc., which focused on gaining traction in the rest of Canada in 2010. “Our growth has been faster in Ontario and Quebec than it has been in B.C.,” CEO Roger Hardy told Business in Vancouver. “2010 was about Canadian growth. I think 2011 will probably be a bit more about more growth out of the U.S. and in Europe.” Coasta l Contacts (TSX:COA) grew revenue 13% to $40.6 million in the quarter that ended January 31 compared with the same quarter a year earlier. Canadian sales growth, at 40%, was several

times the company’s overall sales growth of 13%. U.S. sales growth was a mere 6% between those two quarters although Hardy said growth in the U.S. and Europe in future will be stronger than the company’s overall performance. His company’s advertising featuring Trevor Linden obviously has more resonance in Vancouver but he is running ads with that former Vancouver Canucks superstar in the U.S. and across Canada. Sun-Ry pe Products Ltd. (TSX:SRF), Hardwoods Distribution Income Fund (TSX:HWD.UN) and Premium Brands Holding Corp. (TSX:PBH) are all growing at least several times faster outside B.C. than within the province. “The lion’s share of our business is Western Canada,” Sun-Rype CEO Dave McAnerney told BIV. “We’re a mature brand in B.C. and Western Canada. So, as with mature brands, I think, part of the growth strategy is geographic expansion.” Sun-Rype added a 1.36-litre bottle to its conventional TetraPak juice line in 2008 and produced that juice at co-packers located in Ontario and Washington state. In September, Sun-Rype bought its Washington state co-packer, Yakima Juice LLC, for an undisclosed amount. It then trimmed staff and streamlined operations. “Our expansion is really a recognition that as a manufacturer in Canada, if you want to be successful, you have to be able to supply on a national basis because customers are becoming national in scope,” McAnerney said. Jim Pattison Group CEO Jim Pattison owns a hefty

stake in Sun-Rype but the Okanagan-based company does more than distribute simply to Pattison’s Overwaitea Food Group. It also supplies large retailers such as Safeway Inc. (NYSE:SWY), Wal-Mart Stores Inc. (NYSE:WMT) and Costco Wholesale Corp. (Nasdaq:COST).

“The U.S. business went down a little bit harder in the economic downturn than it did in Canada. Now that we’re seeing some stability there, we’re building back up from a lower base” – Rob Brown, CFO, Hardwoods Distribution Income Fund

Because McAnerney’s company ships products to those companies’ central warehouses, it is impossible for him to gauge exactly where his sales are coming from geographically. Instead, he charts

Coastal Contacts CEO Roger Hardy believes growth for his company in the future will come mostly from the U.S., Ontario and Quebec

it by customer. So does Premium Brands president and CEO George Paleologou. “We ship products to a Loblaw or Costco warehouse and we don’t know where the products go. They may ship them to Manitoba or Saskatchewan,” Paleologou said. “I couldn’t say accurately [a geographic breakdown].” Paleologou has made dozens of acquisitions since he became president of his food manufacturing and distribution venture in 2001. Of the five acquisitions in 2010 and one so far in 2011, three have been for small B.C. companies while the others were for larger companies in central Canada and the U.S. So, while Premium Brands grew its revenue 16% to $535.2 million in its fiscal 2010 year,

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Sincerely,

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Sun-Rype president Dave McAnerney believes that his company’s sales in the U.S. are growing at least three times as fast as in B.C.

Dominic Schaefer

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Paleologou told BIV that his company is currently operating at the pace of being a $700 million company. “Ninety per cent of the growth in our numbers between 2009 and 2010 would have been outside Western Canada,” he said. “The growth for us [in the future] is coming out of the U.S. and central Canada.” B.C. companies that have long had a foothold in the U.S. are also seeing stronger growth south of the border. “The U.S. business went down a little bit harder in the economic downturn than it did in Canada,” said Hardwoods Distribution Income Fund CFO Rob Brown. “Now that we’re seeing some stability there, we’re building back up from a lower base.” •

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Business in Vancouver June 21–27, 2011

Top 100 public companies in B.C. Top 100 public companies in B.C.

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FOOTPRINT.

BIG IMPRESSION.

Ranked by 2010 revenue Rank 2011

Rank 2010 Company

Telus Corp TSX:T, T.A; NYSE:TU

555 Robson St, Vancouver V6B 3K9 P: 604-432-2151 F: 604-432-9681 www.telus.com

Teck Resources Ltd NYSE:TCK; TSX:TCK.B, TCK.A

Primary business Communications products and services

No. of Assets PUB: DATE: employees '10/'09 '10/'09 (000s)

Year founded Senior executive(s) 1998

Net income Revenue Business In Vancouver April '10/'09 5 2011 '10/'09 (000s)

File: 3229_smart_BIV_earlug

(000s)

Darren Entwistle, president and CEO Robert McFarlane, executive vicepresident and CFO

34,1001 35,3002

$19,599,000 Trim: 2” x 1.5” $19,219,000

$1,092,000 $1,002,000

$9,779,000 $9,606,000 2%

Job: Mag ad - April $1,975,000 $29,209,000 $29,873,000 Docket: 11-MER-1226$1,831,000

$9,339,000 $7,674,000 22%

$3,613,641 ($78,373) File Created: March 30, 2011 – CB $3,671,435 $130,823

Client: Mercedes

Copper, coal, zinc and gold production

2001

Don Lindsay, president and CEO

8,300 10,049

Distributor of heavy equipment

1933

Mike Waites, president and CEO

11,951 13,4503

Gold mining

1994

Ian Telfer, chair Charles Jeannes, president and CEO 11,5064 Lindsay Hall, executive-vice president and 12,3284 CFO

Forest products

1955

Henry Ketcham, chair, president and CEO

7,300 7,300

$2,815,000 $2,813,100

$166,200 ($340,800)

$2,885,900 Proof: $2,352,500 23%

Copper mining

1996

Clive Newall, president Philip Pascall, chair and CEO Christopher Lemon, general counsel and corporate secretary

6,904 7,500

$5,415,8325 $5,212,6365

($56,027)5 $625,1905

$2,449,3085 $2,128,7305 15%

Forest products

1938

Don Kayne, president and CEO

5,000 3,884

$2,778,300 $2,677,800

$161,300 ($70,500)

$2,430,400 $2,175,800 12%

550 Burrard St Suite 2000, Vancouver V6C 2K2 P: 604-683-3529 F: 604-844-6600 www.teekay.com

Energy shipping

1973

Peter Evensen, president and CEO Vincent Lok, executive vice-president and CFO

6,3006 6,300

$10,207,4405 $10,867,9565

($171,617)5 $239,5595

$2,130,7375 $2,480,4155 -14%

Methanex Corp TSX:MX; Nasdaq:MEOH

Supplier of methanol to major international markets engaged in the production, distribution and marketing of methanol

1992

Bruce Aitken, president and CEO

895 868

$3,161,9575 $3,338,4555

$104,7755 $8435

$2,025,3845 $1,368,2735 48%

1055 Hastings St W Suite 2200, Vancouver V6E 2E9 P: 877-848-3866 F: NP www.lionsgate.com

Movie and television production and distribution

1997

Jon Feltheimer, co-chair and CEO Steven Beeks, president and co-COO Michael Burns, vice-chair

4976 4978

$1,755,4205 $1,904,3155

($28,988)5 ($203,777)5

$1,631,0715 $1,674,5555 -3%

Mercer International Nasdaq:MERC

Pulp manufacturing company with production facilities in Europe and North America

1968

Jimmy Lee, president and CEO Claes-Inge Isacson, COO David Gandossi, CFO

1,455 1,515

$1,661,1589 $1,718,4149

$117,8579 ($98,601)9

$1,230,1329 $982,6919 25%

Paper and pulp manufacturing

2001

Kevin Clarke, president and CEO

1,800 2,200

$1,696,200 $2,090,800

($396,900) ($4,400)

$1,228,600 $1,201,700 2%

Amar Doman, chair and CEO

6696 669

$279,913 $264,652

$5,861 $13,765

$1,032,347 $408,172 153%

550 Burrard St Suite 3300, Bentall 5, Vancouver V6C 0B3 P: 604-699-4000 F: 604-699-4750 www.teck.com

Finning International Inc TSX:FTT

666 Burrard St Suite 1000, Vancouver V6C 2X8 P: 604-691-6444 F: 604-691-6440 www.finning.com

Goldcorp Inc TSX:G, NYSE:GG

650 Georgia St W Suite 2840, PO Box 11576, Vancouver V6B 4N8 P: 604-684-1099 F: 604-684-1094 www.mercerint.com

3600 Lysander Ln Suite 200, Richmond V7B 1C3 P: 604-247-4400 F: 604-247-0512 www.catalystpaper.com

700 Georgia St W Suite 1510, Vancouver V7Y 1A1 P: 604-432-1400 F: 604-436-6670 www.canwel.com

1055 Dunsmuir St Suite 2414, PO Box 49185, Vancouver V7X 1K8 P: 604-689-8550 F: 604-689-8556 www.quadrafnx.com

4710 Kingsway Suite 800, Burnaby V5H 4M2 P: 604-438-1471 F: 604-439-4242 www.taigaforest.com

1818 Cornwall Ave Suite 400, Vancouver V6J 1C7 P: 604-732-6124 F: 604-874-6124 www.lululemon.com

TSX:MDA

13811 Wireless Way, Richmond V6V 3A4 P: 604-231-1100 F: NP www.sierrawireless.com

666 Burrard St Suite 3400, Vancouver V6C 2X8 P: 604-696-3000 F: 604-696-3001 www.goldcorp.com

West Fraser Timber Co Ltd TSX:WFT

858 Beatty St Suite 501, Vancouver V6B 1C1 P: 604-895-2700 F: 604-681-6061 www.westfraser.com

First Quantum Minerals Ltd TSX:FM; LSE:FQM 543 Granville St 8th Floor, Vancouver V6C 1X8 P: 604-688-6577 F: 604-688-3818 www.first-quantum.com

Canfor Corp TSX:CFP

1700 75th Ave W Suite 100, Vancouver V6P 6G2 P: 604-661-5241 F: 604-661-5235 www.canfor.com

Teekay Corp NYSE:TK

1800 Waterfront Centre, 200 Burrard St, Vancouver V6C 3M1 P: 604-661-2600 F: 604-661-2676 www.methanex.com

Lions Gate Entertainment Corp NYSE:LGF7

Catalyst Paper Corp TSX:CTL

CanWel Building Materials Group10 TSX:CWX Quadra FNX Mining Ltd TSX:QUA

Distribution of lumber, building supplies and 1989 associated products

Date: Mar 30 2011 Time: 4:03 PM

Colour: 4C

PR: 5 $29,670,492 CW:

$23,922,7865

$4,641,302 $4,737,541 -2%

AD: CD: $3,913,4145 5 AE:$1,612,926 OP: CB $3,110,2695

$274,3015

26%BC Suite 300 - 455 Granville Street • Vancouver, V6C 3E1 • Tel: 604.669.4444 • Fax: 604.681.0093

Base-metals mining

2002

Paul Blythe, president and CEO Michael Winship, COO Robert Macdonald, CFO

1,902 1,049

$2,918,8195 $1,424,0655

$177,6125 $91,9085

$986,2935 $524,7825 88%

Building products distributor

1973

Kooi Ong Tong, chair Cam White, president and CEO Tom Stefan, CFO

500 NP

$211,312 $287,992

$6,46911 $11,980

$931,5146 $931,514 0%

Gold producer, developer and explorer

1992

4,448 2,636

$3,892,9285 $3,923,9325

$212,2245 $116,9425

$814,8315 $411,9415 98%

Yoga-inspired clothing retailer

1998

Paul Wright, president and CEO Norman Pitcher, COO Fabiana Chubbs, CFO Christine Day, CEO Chip Wilson, board chair and chief innovation and branding officer John Currie, CFO

3,219 2,86112

$514,2315 $350,8795

$125,4905 $66,5555

$711,7045 $517,1965 38%

13800 Commerce Pkwy, Richmond V6V 2J3 P: 604-278-3411 F: 604-231-2787 www.mdacorporation.com

Advanced information solutions

1969

Daniel Friedmann, president and CEO

3,227 3,200

$1,371,834 $1,303,965

$40,700 $108,386

$689,03013 $1,000,890 -31%

Sierra Wireless Inc TSE:SW

Hardware, software, connected services for mobile lifestyles, machine-to-machine communications

1993

Jason Cohenour, president and CEO

905 947

$483,6085 $553,3065

($15,241)5 ($45,563)5

$669,7435 $601,1155 11%

Forest products

2004

Dominic Gammiero, chair and CEO

2,089 2,140

$587,100 $576,000

$27,700 ($75,300)

$667,900 $580,500 15%

Internet infrastructure semiconductor solution provider, offers its customers technical and sales support worldwide through a network of offices in North America, Europe, Israel and Asia

1984

Colin Harris, COO Travis Karr, vice-president and general manager, enterprise storage division

1,449 1,086

$1,572,1905 $1,273,7635

$85,6495 $53,5415

$654,0715 $566,3435 15%

Silver mining

1994

Ross Beaty, chair Geoff Burns, president and CEO Robert Doyle, CFO

7,10014 6,50014

$2,134,5795 $2,111,0565

$115,9395 $70,8005

$650,8825 $519,3825 25%

Taiga Building Products Ltd TSE:TBL

Eldorado Gold Corp TSX:ELD; NYSE:EGO; ASX:EAU 550 Burrard St Suite 1188, Vancouver V6C 2B5 P: 604-687-4018 F: 604-687-4026 www.eldoradogold.com

Lululemon Athletica Inc TSX:LLL, Nasdaq:LULU MacDonald, Dettwiler and Associates Ltd

Western Forest Products Inc TSX:WEF

435 Trunk Rd, Duncan V9L 2P9 P: 250-748-3711 F: 250-748-6045 www.westernforest.com

PMC-Sierra Inc Nasdaq: PMCS

8555 Baxter Pl, Burnaby V5A 4V7 P: 604-415-6000 F: 604-415-6200 www.pmc-sierra.com

625 Howe St Suite 1500, Vancouver V6C 2T6 P: 604-684-1175 F: 604-684-0147 www.panamericansilver.com

1055 Dunsmuir St Suite 3500, Vancouver V7X 1H7 P: 604-689-6800 F: 604-689-6825 www.interfor.com

Forest products

1963

Duncan Davies, president and CEO

1,4206 1,59015

$611,887 $582,451

($3,934) ($23,887)

$625,618 $389,775 61%

609 Granville St Suite 2200, Vancouver V7Y 1H2 P: 604-643-7300 F: 604-643-7606 www.canaccordfinancial.com

Canaccord Financial Inc TSX, AIM:CF

Independent, full-service financial services firm focused on wealth management and global capital markets

1950

Paul Reynolds, president and CEO Mark Maybank, COO16 Peter Brown, chair and founder Bradley Kotush, CFO

1,549 1,530

$3,123,848 $2,022,099

$38,497 ($47,651)

$577,537 $477,721 21%

666 Burrard St Suite 3110, Vancouver V6C 2X8 P: 604-696-4100 F: 604-696-4110 www.newgoldinc.com

Gold mining

1980

Robert Gallagher, president and CEO Randall Oliphant, executive chair

1,270 NP

$2,820,8085 $2,841,5175

$182,2455 ($221,903)5

$546,3105 $369,7475 48%

Pan American Silver Corp TSX:PAA

International Forest Products Ltd TSX:IFP.A

New Gold Inc TSX, AMEX:NGD

Sources: Interviews with above companies and BIV research. NP Not provided NR Not ranked NA Not available 1 - As of March 31, 2010 2 - As of March 31, 2009 3 Finning Canada cut 170 positions in the first quarter 4 - Includes full-time staff, hourly workers and contractors 5 - Converted from U.S. dollars 6 - 2009 figure 7 Ended TSX listing in July 2006 8 - Post TV Guide Network sale 9 - Converted from euros 10 - Converted from an income trust in January 2010 11 - Nine months 12 - As of February 1, 2009 13 - Only includes revenue from continuing operations not sold to TPG Capital for $850 million in February 2011 14 - Includes employees and contractors 15 - 2008 figure 16 - Also president and COO, Canaccord Genuity Corp

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Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu and Noa Glouberman, 604-608-5114.

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Top 100 Public Companies 21

June 21–27, 2011 Business in Vancouver

Telus on top By Nelson Bennett

elus Corp. adopted a strategy a decade ago in response to deregulation – expanding outside of its B.C.-Alberta markets and investing heavily in Internet, wireless and, more recently, TV subscription service. When asked during the Stanley Cup playoffs how Telus (TSX:T, T.A; NYSE:TU) has managed to rank No. 1 on Business in Vancouver’s top 100 public companies list since 2002, company CFO Robert McFarlane clearly had hockey on his mind. “Guess what, they’re coming in our backyard,” McFarlane said of telecoms like Bell Mobility. “We’re going to play defence with the puck? No, we’re going to go on offence.” As Bell moved west, Telus moved east and is now the primary telecom provider for the governments of Ontario and Quebec. If market analysts are the

sport commentators in this analogy, they depict Telus as skating circles around Shaw Communications Inc. In February, BMO Capital Markets downgraded Shaw’s investment rating – a direct response to Telus’ aggressive move into the TV subscription-service space. “We are growing increasingly concerned with Shaw’s ability to withstand competitive pressures from Telus, specifically its Optik TV service,” Tim Casey, BMO Capital Market’s cable and media analyst, wrote in February of this year. With 35,000 employees worldwide (including 8,200 in B.C.) and $9.8 billion in annual revenue, Telus is B.C.’s largest public company. It is a company that was forced, by the advent of the Internet and mobile phone industry, to rapidly change the fundamentals of its business. Ten years ago, 72% of Telus’ revenue was from

landline phone service. Today, that accounts for just 25% of revenue, with wireless and data accounting for 75%. Its market share of wireline service in Canada today is 16%; its market share for wireless is 29%. Telus was created more than a decade ago with the merger of Telus (based in Alberta), BC Tel and Québec Telephone to become Canada’s second-largest telecom. In 2000, Telus bought Ontario-based mobile phone company Clearnet Communications for $6.5 billion. McFarlane was Clearnet’s CFO – a title he kept in the newly merged company. At the time, he said one pundit wrote that the acquisition was foolhardy, because 20% of the population already had cell phones and that the market was unlikely to grow much beyond that (it now stands at 75%). Telus has a lso been criticized for not following

Essential Content Local Newspapers

Rogers’ and Bell’s model of acquiring media assets. Major broadcasters in Canada are now owned by service providers. Bell owns CTVglobemedia, Rogers owns Citytv, Sportsnet and several other stations and Shaw owns Global Television. Telus owns no media assets. Rather than invest in a sector in which it has no experience, Telus has deliberately focused on being a provider, not a creator, of content. While Bell was spending $1.3 billion to buy CTVglobemedia, Telus last year invested $1.7 billion to expand its fibre-optics cable network ($670 million of which is in B.C. alone). “Our view is that a quarter of our business is our networks, and we’re going to invest in our networks,” McFarlane said. “And that’s going to enhance our position more than taking a flyer on acquiring content that we’ve never previously owned.”

Dominic Schaefer

While Bell, Rogers and Shaw focused on content production by investing in media assets, Telus stayed focused on content delivery by expanding its fibre-optics network

When Telus acquired Clearnet in 2000, it kept the mobile phone company’s CFO, Robert McFarlane, who has helped build the firm into B.C.’s top public company

That expanded network capacity has allowed Telus to rapidly grow its Optik TV service, which is TV via Internet. Telus now has 358,000 Optik TV subscribers in B.C. and Alberta.

Telus’ market share of television service in Canada is just 2.5% ($230 million of a $9.3 billion space). But BMO predicts the company is positioned to attract 125,000 to see Demand, 27

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Glacier Media Inc. is an information communications company focused on the provision of primary and essential information and related services through print, electronic and online media.

Investor Relations: Orest Smysnuik 604.872.8565 • Fax: 604.879.1483 1970 Alberta Street, Vancouver BC V5Y 3X4 www.glaciermedia.ca

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Top 100 public companies in B.C. Ranked by 2010 revenue Rank 2011

Rank 2010 Company

Year founded Senior executive(s)

No. of Assets employees '10/'09 '10/'09 (000s)

Net income Revenue '10/'09 '10/'09 (000s) (000s)

Specialty food manufacturing and differentiated food distribution

1917

George Paleologou, president and CEO

1,687 1,687

$433,158 $350,007

$16,250 $18,857

$535,243 $462,764 16%

Primary business

Premium Brands Holdings Corp TSX:PBH

7720 Alderbridge Way, Richmond V6X 2A2 P: 604-656-3100 F: 604-656-3170 www.premiumbrandsholdings.com

815 Hornby St Suite 406, Vancouver V6Z 2E6 P: 604-681-4004 F: 604-681-4003 www.northgateminerals.com

Gold and copper mining

1919

Kenneth Stowe, president and CEO Peter MacPhail, COO Jon Douglas, senior vice-president and CFO

1,100 1,100

$932,5581 $846,9751

($73,848)1 ($56,534)1

$499,5501 $553,8281 -10%

666 Burrard St Suite 3150, Vancouver V6C 2X8 P: 604-684-9648 F: 604-684-3123 www.silverwheaton.com

Silver Wheaton Corp TSX,NYSE: SLW

Established in 2004, Silver Wheaton has quickly positioned itself as the largest metals streaming company in the world

2004

Randy Smallwood, president and CEO Gary Brown, CFO

24 23

$2,713,8581 $2,554,8431

$298,7671 $134,6661

$436,0111 $273,2651 60%

8501 Commerce Crt, Burnaby V5A 4N3 P: 604-415-6500 F: 604-415-6565 www.glentel.com

Telecommunications services and solutions provider

1963

Thomas Skidmore, chair, president and CEO Jas Boparai, CFO

1,430 1,384

$226,969 $143,295

$24,317 $15,952

$412,307 $308,093 34%

13775 Commerce Pkwy Suite 350, Richmond V6V 2V4 P: 604-303-1000 F: 604-279-8605 www.gcgaming.com

Gaming and entertainment and hospitality

1982

Ross McLeod, chair and CEO Rod Baker, president

4,500 4,500

$967,400 $1,004,100

($21,900) $23,500

$383,500 $382,200 0%

9500 Glenlyon Pkwy, Burnaby V5J 0C6 P: 778-331-5500 F: 778-331-5501 www.rbauction.com

Auctioneer of industrial equipment

1958

Peter Blake, CEO Robert MacKay, president Bob Armstrong, COO

1,200 1,148

$896,8551 $979,6061

$67,8841 $106,7191

$368,0541 $430,7641 -15%

1285 Pender St W Suite 900, Vancouver V6E 4B1 P: 604-601-5620 F: 604-601-5621 www.uranium1.com

Uranium mining

2005

Vadim Zhivov, president Chris Sattler, CEO

266 590

$3,469,7921 $2,454,2161

($195,374)1 ($41,210)1

$336,6231 $173,5701 94%

1055 Dunsmuir St Suite 3194, Vancouver V7X 1L3 P: 604-661-3200 F: 604-661-3201 www.ainsworthengineered.com

Engineered wood products manufacturing

1953

Rick Huff, president and CEO Chris Davies, CFO

307 NP

$811,130 $846,245

$9,440 ($21,635)

$329,486 $285,915 15%

999 Hastings St W Suite 900, Vancouver V6C 2W2 P: 604-684-8894 F: 604-688-2180 www.capstonemining.com

Metals and mining

1987

Darren Pylot, president and CEO Gregg Bush, COO Richard Godfrey, CFO

9342 8873

$650,6141 $629,3181

$74,7641 ($20,928)1

$310,3321 $285,9541 9%

157 Chadwick Crt Suite 200, North Vancouver V7M 3K2 P: 604-904-2328 F: 604-988-5327 www.fortresspaper.com

Fortress Paper Ltd TSX:FTP

Specialty paper mills (wallpaper and security paper) and specialty pulp currently 2006 producing NBHK with plans for conversion to dissolving pulp

Chadwick (Chad) Wasilenkoff, chair and CEO Alfonso Ciotola, president Kurt Loewen, CFO

646 376

$290,766 $139,867

$34,753 $12,697

$281,287 $198,310 42%

905 Pender St W Suite 300, Vancouver V6C 1L6 P: 778-373-4533 F: 778-373-4534 www.tasekomines.com

Gold, copper and molybdenum mining and development company

1966

Ronald Thiessen, chair Russell Hallbauer, president and CEO Peter Mitchell, CFO

455 377

$687,612 $535,095

$148,598 $10,561

$278,460 $188,902 47%

856 Homer St Suite 300, Vancouver V6B 2W5 P: 604-654-4600 F: 604-654-4662 www.timberwest.com

Private timber and land management company

1997

Paul McElligott, president and CEO Robert Allen, CFO

80 81

$1,275,900 $1,264,400

($60,200) ($55,800)

$268,100 $150,300 78%

Specialty pharmaceutical and medical device 1992 company

William Hunter, president and CEO Thomas Bailey, CFO

1,368 1,350

$315,1471 $422,5701

NP ($26,115)1

$253,6051 $319,3861 -21%

Mine development, production (copper, molybdenum, gold and silver) and exploration

2001

Pierre Lebel, chair Brian Kynoch, president Andre Deepwell, CFO

NP NP

$440,041 $373,071

$35,323 ($12,759)

$246,851 $201,137 23%

Information communications

2000

Sam Grippo, chair Jonathon Kennedy, president and CEO

2,1262 2,193

$507,847 $503,747

$20,560 $13,926

$242,605 $229,128 6%

William Stinson, CEO Doug Souter, CFO Nick Desmarais, secretary Dave Brownlie, president and COO, Whistler Blackcomb Kevin Smith, executive vice-president and CFO

NP NP

$579,186 $608,763

$84,570 $107,130

$223,536 $207,778 8%

NP 3,5859

$283,312 $313,935

$45,46710 $51,84711

$213,99610 $218,70111 -2%

Northgate Minerals Corp TSX:NGX, AMEX:NXG

Glentel Inc TSX:GLN

Great Canadian Gaming Corp TSX:GC

Ritchie Bros. Auctioneers Inc TSX, NYSE: RBA Uranium One Inc TSX:UUU

Ainsworth Lumber Co. Ltd TSX:ANS Capstone Mining Corp TSX:CS

Taseko Mines Ltd TSX:TKO

TimberWest Forest Corp4 TSX:TWF-U

Angiotech Pharmaceuticals Inc5 TSX:ANP;

Nasdaq:ANPI5 1618 Station St, Vancouver V6A 1B6

P: 604-221-7676 F: 604-221-2330 www.angiotech.com

Imperial Metals Corp TSX:III

580 Hornby St Suite 200, Vancouver V6C 3B6 P: 604-669-8959 F: 604-687-4030 www.imperialmetals.com

1970 Alberta St, Vancouver V5Y 3X4 P: 604-872-8565 F: 604-879-1483 www.glaciermedia.ca

1067 Cordova St W Suite 1800, Vancouver V6C 1C7 P: 604-688-6764 F: 604-687-2601 www.westshore.com

HWD.UN

200 Granville St Suite 1378, Vancouver V6C 1S4 P: 604-669-9397 F: 604-669-9387 www.silvercorp.ca

1075 Georgia St W Suite 250, Vancouver V6E 3C9 P: 604-689-9663 F: 604-434-1487 www.eastplats.com

2985 Virtual Way Suite 320, Vancouver V5M 4X7 P: 604-669-1555 F: 604-669-6855 www.coastalcontacts.com

Glacier Media Inc6 TSX:GVC

Westshore Terminals Investment Corp7 TSX:WTE

Whistler Blackcomb Holdings Inc TSX:WB

4545 Blackcomb Way, Whistler V0N 1B4 P: 604-695-8280 F: 604-695-8204 www.whistlerblackcomb.com

Operates a coal storage and loading terminal 1960 located at Roberts Bank

Four-season destination resort operator

20108

Real estate

1969

Bruno Wall, president

NP NP

$494,061 $561,020

$29,469 $14,329

$203,839 $167,558 22%

Distributor of premium hardwood lumber and panel products

2004

Lance Blanco, president and CEO Rob Brown, CFO

172 159

$74,942 $74,270

$956 ($10,240)

$197,655 $190,923 4%

925 Georgia St W Suite 1120, Vancouver V6C 3L2 P: 604-687-6600 F: 604-687-3932 www.aurizon.com

Gold mining

1988

David Hall, president and CEO Ian Walton, CFO

115 99

$340,686 $323,293

$16,133 $36,706

$178,743 $175,560 2%

Silvercorp Metals Inc NYSE, TSX: SVM

Canadian-based primary silver producer with mining, development and exploration 2004 projects located in China and Canada

Rui Feng, chair and CEO Myles Gao, president and COO Maria Tang, CFO Lorne Waldman, corporate secretary

2,200 2,000

$528,8691 $319,1091

$70,9081 $44,0171

$172,3301 $122,3711 41%

4621 Canada Way Suite 401, Burnaby V5G 4X8 P: 604-297-0444 F: 604-297-0445 www.day4energy.com

Developer of patented, proprietary photovoltaic modules

2001

George Rubin, president John MacDonald, chair and CEO

116 149

$71,981 $73,175

($9,750) ($20,383)

$166,600 $60,045 177%

Eastern Platinum Ltd TSX:ELR

Platinum group metal producer engaged in the mining, exploration and development of PGM properties

2005

David Cohen, chair Ian Rozier, president and CEO 3,160 Horng Dih Lee, CFO, vice-president, finance 2,998 and corporate secretary

$1,160,6721 $807,2011

$13,7511 $6,4521

$159,6351 $127,1751 26%

595 Burrard St Suite 3083, PO Box 49298, Vancouver V7X 1L3 P: 604-681-2802 F: 604-682-2802 www.amerigoresources.com

Copper and molybdenum production

2003

Klaus Zeitler, president and CEO Aurora Davidson, CFO

600 600

$223,5091 $189,7901

$15,8501 $521

$156,6691 $102,1761 53%

Coastal Contacts Inc/Clearly Contacts TSX:COA

Leading direct-to-consumer retailer of contact lenses, eyeglasses and related vision 2000 care products

Roger Hardy, founder and CEO Glen Kayll, CFO

NP 260

$70,259 $57,300

$3,102 $2,747

$153,166 $139,870 10%

Wall Financial Corp TSX:WFC

1088 Burrard St Suite 3502, Vancouver V6Z 2R9 P: 604-893-7131 F: 604-893-7179 NA

Hardwoods Distribution Income Fund TSX:

9440 202nd St Suite 306, Langley V1M 4A6 P: 604-881-1999 F: 604-881-1995 www.hardwoods-inc.com

Aurizon Mines Ltd TSX:ARZ

Day4 Energy Inc TSX:DFE

Amerigo Resources Ltd TSX:ARG

Sources: Interviews with above companies and BIV research. NP Not provided NR Not ranked NA Not available 1 - Converted from U.S. dollars 2 - 2009 figure 3 2008 figure 4 - To be acquired by BCIMC and the Public Sector Pension Investment Board for $1 billion 5 - Acquired by debt holders after filing creditor protection in January 2011 6 - Changed name from Glacier Ventures International Corp. on June 24, 2008 7 - Converted from an income trust in January 2011 8 - New holding company founded October 4, 2010 9 - Includes 485 full-time staff and 3,100 seasonal employees 10 - 12 months ending June 30, 2010 11 - 12 months ending September 30, 2009

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com

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FOCUSONSUCCESS

Capital West Partners

Insights from the Pros to Sweeten Your Next Financial Deal

s a mid-market business owner, you know navigating financial transactions can be complex, time consuming and stressful. In Canada and the US, business owners engage Capital West Partners to manage these deals: to raise capital and to buy, sell or restructure their businesses. “The success or failure of a transaction can be the make-or-break moment you look back at for a long time; often for the rest of your life,” says Capital West’s founding Partner Doug Irwin. And, while hindsight is 20/20, you need to acquire the expertise and horsepower early to maximize value from these transactions. Established in 1990, Capital West Partners is an independent corporate finance firm, based in Vancouver, British Columbia. Focused on the mid-market, they deliver specialized financial advice and corporate transaction expertise to management teams, publicly and privately owned businesses, corporations and government entities in Western Canada. The ten partners are chartered business valuators, chartered accountants, CFAs and/or MBA’s. Together they bring 150 years of combined investment banking experience to the negotiating table. As you might expect, they have a lot to say about the anatomy of a successful deal from start to finish. Not only do they consistently rank number one in terms of mid-market deals in Western Canada (10 in 2010), but they depend on doing so. “After all, our firm’s own existence is contingent on the success of our client’s transactions—we don’t win if they don’t win,” points out Associate Partner, Andrew Kemper. “Success is the bottom line and we need to add significant value on every transaction...that’s our number one mandate. We’re independent, we’re influenced by no one but our client, and we’re only as good as our last deal.” The firm was founded

when the original senior partners, Doug Irwin and Fred Wright, stepped away from a full service investment dealer, Pemberton Securities, after it was sold to one of Canada’s chartered banks. They realized mid-market owners lacked a good source of independent corporate finance advice. This vision was essential; it protected and maintained their status as independent advisors to the marketplace—a key differentiator of their firm, and one that clients have increasingly demanded over the years. The two founders opened their doors in 1990, engaging Gerry Bellerive to be part of their team from day one. Jamie Bruce became their third senior partner in 2002. This month, all ten current partners raise their glasses to celebrate two decades in the business and more than $5 billion in completed transactions since 1990. “I think it’s proof that what we’re doing here is needed and, frankly, that our clients are satisfied with the value we create,” remarks Doug. After 20 years of handson execution, Capital West’s expertise is hard to compete with—something they hear from industry competitors, colleagues and clients alike, and a compliment they don’t take lightly. People in this line of work are fiercely success driven and competitive, qualities that are immediately evident in the Capital West culture. Below are some of Capital West’s quintessential tips for dealmakers, drawn from the members’ experiences with top tier clients like lululemon Athletica, Aritizia, Dollar Giant, Intrawest, Canfor, A&W and The Keg. Regardless of your industry, be it mining, technology, consumer goods, hospitality, finance, manufacturing or otherwise, these are the high level keys to ensuring your transaction is both an immediate success and a positive, defining moment in the history of your business.

❚market intelligence Capital West Partners’ Deals West publishes more quick insights and marketplace commentaries. As Western Canada’s corporate transaction quarterly, Deals West provides a uniquely Western Canadian perspective on corporate transactions as indicators of a distinct economy in the western provinces of British Columbia, Alberta, Saskatchewan and Manitoba. Subscribe for free online at www.capwest.com

niche, it may be time to sell and realize strategic value for the business.

Doug Irwin, Founding Partner (left), Andrew Kemper, Associate Partner (center), Gerry Bellerive, Partner (right)

Hire an advisor “We come in right at the outset and work very closely with in-house management teams,” Marco Tomassetti points out, “assisting them to select the external professionals that round out the deal team; specifically legal counsel and accountants.” His thoughts on team selection: Get the right fit: Select for skill set (legal, accounting, transaction expertise) and for complementary capabilities; together they should become greater than the sum of their parts. Don’t go it alone: Negotiations get heated— professional advisors secure your highest deal value, and you don’t have to play the tough guy, which safeguards buyer/seller relationships. “Hiring an advisor is the best advice we can give any potential client. Trying to complete a corporate transaction on your own is analogous to selling your house without a real estate agent or writing a will without a lawyer. You just wouldn’t do it.” says Doug Irwin.

Manage the business No bad news: Employees and management need to stay focused. Results must be maintained otherwise purchase price erodes. During the deal you can’t afford to have any bad news. Man your stations: With corporate finance support managing every aspect of the transaction, the operating and management team can confidently focus on what’s most important. Build in back-up: At the height of negotiations, your C-Suite (CEO, CFO, and CTO) could spend 40% to 60% of their time on the process. Hiring an experienced and skilled corporate finance team alleviates this workload so key people can focus on running the day-today business. Formalize the process and control it from start to finish “Process and timeliness are key to running a transaction,” emphasizes Brent Holliday. “Nail those down, control the process and stick to deadlines.”

Click right along: A strong deal scenario means milestones are achieved on time. This also maintains deal tension through to closing which maximizes value. Control the flow of information: Momentum is key to securing maximum value. Of paramount importance is the timely and strategic release of information. Market check: It’s not offensive, nor rude and it makes absolutely good business sense. Get help to ensure your deal remains relevant, and the market hasn’t changed, so you don’t leave any money on the table. Gerry Bellerive adds, “There are cases in which you’ve known who the most logical buyer would be for a long time. Even then, we’ve proven over and over again, it pays to formalize the transaction process and take the opportunity to other interested parties.” Transaction timing Timing is everything and in the best-case scenario, three things align. Paul Langley summarizes: “One—the business is mature with strong financial results and good growth opportunities; two-M&A activity in the sector is strong; three—there’s general financial market confidence. This is not your everyday situation.” However, getting M&A expertise to uncover strategic elements can extend your window of opportunity. Ready for the next level: When your business requires a major investment of capital or human resources, it is a good time to consider selling. The Gorillas are coming: If you’re the market leader in your sector, and the industry giants enter your

Prepare for the sale Andrew Kemper points out, “…of course, you need to build a great company first – great companies secure great transaction value. That’s selfevident. But it’s also just the starting line.” He says that one of the most important things you can do to assure transaction success is to start preparations well in advance with professional guidance. Do your housekeeping: Allow enough time to get your business in order. Engaging an experienced M&A advisor early in the process will help with these preparations to ensure there is nothing to compromise a smooth and successful closing. A winning mindset: Negotiations can be stressful, prepare mentally and emotionally. Be honest with yourself, considering the deal’s impact from all angles. Devil’s in the details “If you’re not familiar with the process, its intricacies and complexities, one thing’s for sure…the other team will be,” advises Brent Holliday, “and you’ll lose value because of it.“ Fine print: Business terms, representations, warranties, indemnities—these are fine print deal issues. Done right by corporate finance professionals, they will greatly minimize your risk and maximize value, not to mention help you sleep better at night. Cash is king: Evaluate final offer terms for best and worst case outcomes. Know for sure how much is cash up-front and how much is a valuation trade-off. Capital West Partners’ promise is to lead their clients’ deals to a successful completion with integrity, perseverance and focus. Bringing essential market intelligence to clients, Capital West provides global reach as members of IMAP, the International Association of Mergers and Acquisitions Professionals. “We owe a lot of thanks to our clients and to the community in which we do business,” finishes Doug Irwin. “These twenty years have flown by. At the end of the day, we have the best, smartest people because our clients don’t tolerate mistakes. We get it right. We’re local; we’re a known quantity. Our reputation is everything.” u

Daily business news at www.biv.comâ&#x20AC;&#x192; June 21â&#x20AC;&#x201C;27, 2011

Top 100 public companies in B.C. Ranked by 2010 revenue Rank 2011

Rank 2010 Company

Primary business

Village Farms International Inc1 TSX:VFF

Year founded Senior executive(s)

No. of Assets employees '10/'09 '10/'09 (000s)

Net income Revenue '10/'09 '10/'09 (000s) (000s)

Grower and marketer of hydroponic produce 2003

Michael DeGiglio, CEO Stephen Ruffini, CFO

1,200 1,200

$104,5692 $113,1502

$5,7652 $7,6162

$149,0972 $149,0542 0%

Platinum group metals mining, exploration and development

1983

Tumelo Motsisi, executive chair Harold Motaung, CEO

NP NP

$1,092,106 $1,014,215

($90,543) ($51,781)

$148,287 $62,628 137%

Junior gold producer

2000

Vladimir Agapov, chair Andre Agapov, president and CEO

NP NP

$1,069,0112 $1,180,8622

($89,395)2 ($18,596)2

$147,9972 $82,6482 79%

Manufacturer and marketer of fruit-based beverage and food products

1946

Dave McAnerney, president and CEO Don VanderZwaag, CFO

424 382

$68,375 $60,986

$4,570 $6,767

$138,185 $147,696 -6%

Gold mining in China

2000

Xin Song, CEO Heather King, vice-president, finance

378 274

$1,705,1262 $199,3622

$28,1962 ($9,559)2

$137,1802 $92,5542 48%

Appliance wholesaler/retailer

1978

Harlow Burrows, president and CEO Jack Peck, vice-president and CFO

278 276

$127,873 $132,720

$3,655 $4,527

$135,251 $144,050 -6%

Manufacturer of steel wire and wire-related products

1964

Amar Doman, chair Dale MacLean, president and CEO

367 347

$86,822 $99,693

($14,780) ($26,876)

$132,411 $165,581 -20%

Silver mining

1998

Keith Neumeyer, president and CEO Ramon Davila, COO Raymond Polman, CFO

1,800 1,514

$321,468 $251,473

$36,105 $6,310

$132,173 $71,526 85%

595 Burrard St Suite 3100, Vancouver V7X 1J1 P: 604-681-8371 F: 604-681-6209 www.b2gold.com

Gold mining

2006

Clive Johnson, president and CEO

969 925

$347,9562 $282,4712

$30,3722 ($31,733)2

$131,3342 $23,5682 457%

Westport Innovations Inc TSX:WPT

Developer of alternative fuel, low-emissions technologies that allow engines to operate on clean-burning fuels such as CNG, LNG, hydrogen, and biofuels such as landfill gas

1995

David Demers, CEO Bill Larkin, CFO Elaine A. Wong, executive vice-president, strategic development

244 221

$156,117 $135,504

($37,636) ($24,425)

$130,712 $121,837 7%

Footwear retailer

1987

David Alves, president and CEO Daniel Gumprich, CFO

1,301 1,419

$71,345 $77,165

($5,308) ($27,633)

$127,028 $131,170 -3%

Develops and licenses software for global prepaid and financial services markets

1998

Doug Buchanan, president and CEO Nurez Khimji, CFO

NP NP

$12,829 $11,174

($328) ($1,109)

$121,932 $126,080 -3%

999 Hastings St W Suite 1180, Vancouver V6C 2W2 P: 604-689-3846 F: 604-689-3847 www.silverstandard.com

Silver exploration and development

1946

John Smith, president and CEO Tom Yip, CFO

NP NP

$1,299,7512 $856,3922

$356,5922 ($15,066)2

$115,6122 $6,2152 1,760%

Vecima Networks Inc TSX:VCM

Design and manufacture products for converged wired solutions and broadband wireless markets

1988

Surinder Kumar, chair and CEO Hugh Wood, COO

903 917

$154,573 $147,781

$807 $13,245

$113,206 $114,231 -1%

Newspaper publisher

2002

Ronald Stern, chair

456 449

$146,096 $146,947

$15,973 $7,171

$110,032 $113,863 -3%

Co-location, managed and self-managed dedicated servers

1999

Fabio Banducci, president and CEO Gary Sherlock, executive vice-president and CFO

382 350

$74,8182 $75,8562

$2,3082 $6,6092

$103,3632 $106,6172 -3%

Precious metals mining and exploration

1975

Mark Bailey, president and CEO Greg Smith, CFO

350 370

$480,6272 $319,9962

$6,3042 ($4,932)2

$95,6582 $85,9222 11%

Gas transmission and distribution

1965

Roy Dyce, president and CEO Janet Kennedy, vice-president of finance

107 102

$249,924 $220,209

$7,078 $6,532

$95,164 $104,131 -9%

Silver and gold mining

2002

Bradford Cooke, chair and CEO Godfrey Walton, president and COO

781 758

$194,0572 $120,9132

$8,2252 ($2,196)2

$88,7262 $57,8762 53%

Pharmacy operator

2002

Gordon Gooding, CEO

NP NP

$47,149 $57,204

($2,594) ($7,181)

$82,918 $86,134 -4%

Copper, gold and coal mining

1994

Robert Friedland, founder and CEO Peter Meredith, deputy chair John Macken, president

1,0917 1,1398

$3,314,7062 $1,752,5602

($217,802)2 ($319,947)2

$82,1622 $41,1542 100%

Coal production and development company

2007

Alexander Molyneux, president and CEO Curtis Church, COO Terry Krepiakevich, CFO

NP NP

$990,6262 $640,2452

($91,078)2 ($126,536)2

$82,1622 $41,1542 100%

Integrated metallic and composite airframe structures for aircraft companies

1986

Marcus van Rooij, CEO

473 550

$45,680 $48,026

($8,464) ($8,410)

$77,258 $69,202 12%

Silver mining in Latin America

1990

Jorge Ganoza Durant, president and CEO

NP NP

$250,4542 $159,5772

$13,3422 $7112

$76,2702 $58,7292 30%

Gold mining

1997

Robert Baldock, president and CEO Graham Dickson, COO Shaun Heinrichs, CFO

NP 160

$224,3252 $223,1882

($95,879)2 ($48,716)2

$73,5042 $11,3202 549%

4700 80th St, Delta V4K 3N3 P: 604-940-6012 F: 604-940-6312 www.villagefarms.com

800 Pender St W Suite 1020, Vancouver V6C 2V6 P: 604-684-6365 F: 604-684-8092 www.anooraqresources.com

1055 Dunsmuir St Suite 2164, Vancouver V7X 1B1 P: 604-632-4044 F: 604-632-4045 www.rusoro.com

1165 Ethel St, Kelowna V1Y 2W4 P: 250-860-7973 F: 250-762-3611 www.sunrype.com

TSX:CGG

8848 Main St, Vancouver V5X 4W8 P: 604-321-6644 F: 604-321-6684 www.coastappliances.com

3933 Boundary Rd, Richmond V6V 1T8 P: 604-524-3744 F: 604-524-2657 www.treeisland.com

925 Georgia St W Suite 1805, Vancouver V6C 3L2 P: 604-688-3033 F: 604-639-8873 www.firstmajestic.com

1750 75th Ave W Suite 101, Vancouver V6P 6G2 P: 604-718-2000 F: 604-718-2001 www.westport.com

2580 Viscount Way, Richmond V6V 1N1 P: 604-270-6114 F: NP www.sterlingshoes.com

4210 Commerce Circle, Victoria V8Z 6N6 P: 250-881-1982 F: 250-881-1974 www.vecima.com

650 Georgia St W Suite 2900, PO Box 11583, Vancouver V6B 4N8 P: 604-697-7425 F: 604-632-0281 www.fpnewspapers.com

555 Hastings St W Suite 1000, Vancouver V6B 4N5 P: 604-683-7747 F: 604-683-4634 www.peer1.com

1177 Hastings St W Suite 2288, Vancouver V6E 2K3 P: 604-687-6263 F: 604-687-6267 www.minefinders.com

1185 Georgia St W Suite 950, Vancouver V6E 4E6 P: 604-691-5680 F: 604-697-6210 www.png.ca

700 Pender St W Suite 301, Vancouver V6C 1G8 P: 604-685-9775 F: 604-685-9744 www.edrsilver.com

999 Canada Pl Suite 654, Vancouver V6C 3E1 P: 604-688-5755 F: 604-682-2060 www.ivanhoemines.com

999 Canada Pl Suite 654, Vancouver V6C 3E1 P: 604-681-6799 F: 604-688-8391 www.southgobi.com

10025 River Way, Delta V4G 1M7 P: 604-582-6677 F: 604-582-2620 www.avcorp.com

355 Burrard St Suite 840, Vancouver V6C 2G8 P: 604-484-4085 F: 604-484-4029 www.fortunasilver.com

Anooraq Resources Corp TSX-V:ARQ Rusoro Mining Ltd TSX-V:RML

Sun-Rype Products Ltd TSX:SRF

China Gold International Resources Corp Ltd3

505 Burrard St Suite 1030, Vancouver V7X 1M5 P: 604-609-0598 F: 604-688-0598 www.chinagoldintl.com

Coast Wholesale Appliances Inc4 TSX:CWA Tree Island Wire Income Fund TSX:TIL.UN First Majestic Silver Corp TSX:FR

B2Gold Corp TSX:BTO

Sterling Shoes Inc5 TSX:SSI

Vendtek Systems Inc TSX-V:VSI

1952 Kingsway Ave Suite 507, Port Coquitlam V3C 1S5 P: 604-944-9330 F: 604-944-0812 www.vendteksys.com

Silver Standard Resources Inc TSX:SSO; Nasdaq:SSRI

FP Newspapers Inc6 TSX:FP PEER 1 Hosting TSX:PIX

Minefinders Corp Ltd TSX:MFL

Pacific Northern Gas Ltd TSX:PNG Endeavour Silver Corp TSX:EDR

Paragon Pharmacies Ltd TSX-V:PGN

2604 Enterprise Way, Unit 8, Kelowna V1X 7Y5 P: 250-868-8400 F: 250-868-8402 www.helloparagon.com

Ivanhoe Mines Ltd TSX,NYSE: IVN

SouthGobi Resources Ltd TSX:SGQ; HK:1878

Avcorp Industries Inc TSX:AVP

Fortuna Silver Mines Inc TSX:FVI

Yukon-Nevada Gold Corp TSX:YNG

688 Hastings St W Suite 490, Vancouver V6B 1P1 P: 604-688-9427 F: 604-688-9426 www.yukon- nevadagold.com

Sources: Interviews with above companies and BIV research. NP Not provided NR Not ranked NA Not available 1 - Converted from an income trust on December 31, 2009 2 - Converted from U.S. dollars 3 - Formerly Jinshan Gold Mines Inc. 4 Converted from an income trust in January 2011 5 - Converted from an income trust in July 2010 6 - Converted from an income trust 7 - 2009 figure 8 - 2008 figure

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com

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Top 100 Public Companies 25

June 21–27, 2011 Business in Vancouver

Not your average Joe Local green decaffeinator targets new opportunities to educate roasters about its product and cash in on trends amid soaring coffee prices and a high dollar as well as in grocery, just because there are still people that consume coffee that can move up market.

rank Dennis is president and CEO of Ten Peaks Coffee Co. Inc. (TSX: TPK), the new incarnation of Swiss Water Decaffeinated Coffee Income Fund, which early this year converted to a public corporation to adapt to new tax laws. The Burnaby-based company uses its proprietary, chemical-free Swiss Water Process to decaffeinate coffee. It ranked No. 91 this year on Business in Vancouver’s list of the top 100 public companies. Dennis told BIV about how the company is navigating soaring coffee prices, a high Canadian dollar, new competition and the recession – while exploring new opportunities in the decaffeinated coffee space. How saturated is the North American specialty coffee market these days? Think about the total coffee market in the form of a pyramid with four boxes: super premium, premium, mainstream and value. Mainstream and value have actually been in decline kind of over the longer term. Prem iu m – Sta rbuck s [Nasdaq: SBUX], Second Cup [TSX:SCU], Seattle’s Best – and the super premium, which is sometimes called the third-wave specialty coffee, is absolutely growing. Also at that top of the marketplace is where all the single-serve K-cups sit. I

What’s happening in the decaf market? Decaf is growing at the top of the marketplace

see Consumer, 27

Help kids make the right choices.

would say there’s absolutely room within specialty coffee for continued growth, both in terms of storefront

Canadians pay over $100,000 a year to keep an adolescent in detention while a university education in Canada costs $12,000 a year.

By Jenny Wagler

We’re seeing a lot of trends toward healthier foods and healthier lifestyles. Is that driving a trend toward decaf? You know, I really thought so; 10 years ago, I would have said absolutely. The fact is that caffeine is not bad for you. It just isn’t. People might decide to have varying levels of caffeine throughout the day. So that’s really where our space comes in, to provide great-quality coffee.

Your donations to United Way will support after-school tutoring and summer activity programs for 42,000 school-age children across the Lower Mainland to help kids make the right choices. Thank you.

Frank Dennis, president and CEO, Ten Peaks Coffee Co.: “I really think that the third-wave element of the marketplace is re-energizing coffee in a way that is unexpected, almost as unexpected as what Starbucks did 20 years ago”

What’s allowing coffee companies to succeed in a market with stiff competition? Preparation methods right now are really driving interest if not growth. For example, the idea of pour overs: a ceramic cone, just like your gold cone filter from the 1980s, that sits on top of an empty mug and you literally put a paper filter in the cone, put coffee in and pour hot water over it. If you go up and down the West Coast of the U.S. and here, pour overs are absolutely all the rage. From a retail coffee shop point of view, you can capitalize on it. Also these methods are coming back in home again, too.

and it’s declining at the bottom of the marketplace. Decaf, from a large mainstream commercial point of view, has been in decline primarily due to quality over the past 10 years. A lot of roasters, especially mainstream roasters, will use cheaper coffee in their decaffeinated blends because there’s a process cost and they want to make up for that margin by using cheaper coffee, while the results are that the consumer walks away from the category, which is a shame.

travelsmart.ca

www.uwlm.ca

Daily business news at www.biv.com June 21–27, 2011

Top 100 public companies in B.C. Ranked by 2010 revenue Rank 2011

Rank 2010 Company

Huntingdon REIT TSX:HNT.UN

Primary business

Year founded Senior executive(s)

No. of Assets employees '10/'09 '10/'09 (000s)

Net income Revenue '10/'09 '10/'09 (000s) (000s)

Owns and operates affordable business premises in markets across Canada

1997

Zachary George, president and CEO Sandeep Manak, CFO

NP NP

$441,086 $415,108

$2,337 ($7,433)

$71,829 $54,813 31%

Ice-rink operations

1956

Joey St-Aubin, CEO Michael Gellard, CFO

963 950

$110,513 $113,141

$707 $2,734

$69,849 $67,196 4%

Cardiovascular drug development company

1992

Doug Janzen, president and CEO Curtis Sikorsky, CFO

85 94

$84,7851 $61,0971

NP ($1,276)

$68,0391 $57,3251 19%

Development, manufacture, sale and 1979 servicing of clean energy hydrogen fuel cells

John Sheridan, president and CEO Paul Cass, vice-president, operations Chris Guzy, CTO Tony Guglielmin, CFO Michael Goldstein, CCO

400 495

$195,4631 $223,0821

($36,047)1 ($3,721)1

$66,9441 $53,3551 25%

Software and services that help track, manage and protect computers

1993

John Livingston, chair and CEO Rob Chase, COO Errol Olsen, CFO

351 301

$124,292 $117,319

($8,154) ($2,259)

$64,100 $53,219 20%

777 West Broadway Suite 1200, Vancouver V5Z 4J7 P: 604-871-9909 F: 604-871-9919 www.cibtcorp.com

Education

1994

Toby Chu, president and CEO Dennis Huang, CFO

3072 307

$54,969 $47,378

$582 $16

$55,955 $44,551 26%

Energold Drilling Corp TSX-V:EGD

Contract drilling company operating in over 20 countries in South America, Africa and Asia

1995

1,100 550

$95,274 $68,913

$1,449 ($1,951)

$54,592 $23,719 130%

WesternOne Equity Income Fund TSX-V: WEQ.UN

Public company focused on acquisition of private companies in Western Canada involved in equipment and infrastructure development

2006

Darren Latoski, CEO Carlos Yam, CFO

NP 150

$91,162 $78,829

($5,476) $1,131

$50,252 $41,660 21%

Opthalmology

1981

Robert Butchofsky, president and CEO

162 134

$399,3781 $479,2131

NP $113,5511

$46,0331 $48,0841 -4%

355 Burrard St W Suite 910, Vancouver V6C 2G8 P: 604-683-2915 F: 604-683-2965 www.versatile.com

IT solutions for businesses

1987

John Hardy, chair and CEO Robert Joyce, president Fraser Atkinson, CFO

NP NP

$41,7471 $41,2951

($1,274)1 ($761)1

$45,5091 $56,0911 -19%

Hanwei Energy Services Corp TSX:HE

High-pressure fibreglass-reinforced plastic oil pipes, wind power and coal power products

2005

Fulai Lang, chair, president and CEO Rick Huang, CFO

NP 1,100

$135,037 $211,269

($65,666) ($11,271)

$44,528 $43,208 3%

Silver mining

1965

Kaare Foy, executive chair Robert Archer, president and CEO Martin Carsky, CFO

NP NP

$45,585 $37,174

$1,935 ($867)

$42,206 $31,732 33%

4299 Canada Way Suite 215, Burnaby V5G 1H3 P: 604-434-7337 F: 604-434-5270 www.webtechwireless.com

Turnkey wireless location-based and telematics services for vehicles

1999

Scott Edmonds, president and CEO Larry Juba, COO Andrew Morden, CFO

228 144

$45,314 $59,275

($14,289) ($10,725)

$41,377 $27,217 52%

Amica Mature Lifestyles Inc TSX:ACC

Design, development, marketing, management and ownership of seniors' housing

1996

Samir Manji, chair, president and CEO

1,107 1,086

$185,342 $193,492

($4,333) ($585)

$41,334 $42,740 -3%

Wireless mobile data solutions

1987

Vari Ghai, chair and CEO

197 189

$34,271 $33,299

$1,670 ($2,262)

$41,285 $35,627 16%

Chemical-free, green coffee decaffeination

2000

Frank Dennis, president and CEO Sherry Tryssenaar, CFO

NP NP

$36,560 $44,475

($12,385) $2,668

$36,732 $31,160 18%

Accommodation services

1982

Peter Eng, chair and CEO Michael Chan, president and CFO

NP NP

$43,656 $85,796

$16,660 ($12,389)

$35,654 $27,046 32%

Industrial minerals company

1987

Lukas Lundin, chair Tim Miller, president and CEO Wanda Lee, CFO

NP NP

$140,0921 $155,9491

($2,903)1 $3,2741

$35,0051 $33,6041 4%

Solar power LED lighting systems and solar powered systems and equipment

1996

Ted Lattimore, CEO Roland Sartorius, CFO

107 150

$27,7311 $32,0061

($5,099)1 ($733)1

$34,9351 $36,1361 -3%

Mining

1998

Parviz Farsangi, president and CEO Hemdat Sawh, CFO

NP NP

$132,202 $44,651

$32,534 $13,528

$34,239 $19,412 76%

Broadband services for business and virtual hosted applications

1998

David Buffett, president and CEO Chuck Leighton, CFO Adrian Byram, CTO

88 86

$14,668 $11,729

($84) $74

$32,000 $30,000 7%

J. Cowan McKinney, chair Stuart Ross, CEO

252 350

$20,370 $17,891

$531 ($497)

$29,191 $24,240 20%

5000 Miller Rd Suite 2000, Richmond V7B 1K6 P: 604 249-5100 F: 604 249-5101 www.hreit.ca

Canlan Ice Sports Corp TSX:ICE

6501 Sprott St, Burnaby V5B 3B8 P: 604-736-9152 F: 604-736-9170 www.icesports.com

Cardiome Pharma Corp TSX:COM

6190 Agronomy Rd Suite 600, Vancouver V6T 1Z3 P: 604-677-6905 F: 604-677-6915 www.cardiome.com

Ballard Power Systems Inc TSX:BLD; Nasdaq: BLDP

1111 Melville St Suite 1000, Vancouver V6E 3V6 P: 604-608-6777 F: 604-608-6717 www.amica.ca

11920 Forge Pl, Richmond V7A 4V9 P: 604-241-1441 F: 604-241-1440 www.ddswireless.com

3131 Lake City Way, Burnaby V5A 3A3 P: 604-420-4050 F: 604-420-8711 www.tenpeakscoffee.ca

885 Georgia St W Suite 2101, Vancouver V6C 3E8 P: 604-689-7842 F: 604-689-4250 www.atacama.com

203 Harbour Rd Bldg 4, Victoria V9A 3S2 P: 250-380-0052 F: 250-380-0062 www.carmanah.com

100

9000 Glenlyon Pkwy, Burnaby V5J 5J8 P: 604-454-0900 F: 604-412-4700 www.ballard.com

Absolute Software Corp TSX:ABT

1055 Dunsmuir St Suite 1600, Vancouver V7X 1K8 P: 604-730-9851 F: 604-730-2621 www.absolute.com

CIBT Education Group Inc TSX-V:MBA

543 Granville St Suite 1100, Vancouver V6C 1X8 P: 604-681-9501 F: 604-681-6813 www.energold.com 925 Georgia St W Suite 910, Vancouver V6C 3L2 P: 604-678-4042 F: 604-681-5969 www.weq.ca

QLT Inc Nasdaq:QLTI, TSX:QLT

887 Great Northern Way Suite 101, Vancouver V5T 4T5 P: 604-707-7000 F: 604-707-7001 www.qltinc.com

Versatile Systems Inc TSX-V:VV

595 Howe St Suite 902, Vancouver V6C 2T5 P: 604-685-2239 F: 604-677-5579 www.hanweienergy.com

Great Panther Silver Ltd TSX:GPR

1177 Hastings St W Suite 2100, Vancouver V6E 2K3 P: 604-608-1766 F: 604-608-1744 www.greatpanther.com

WebTech Wireless Inc TSX:WEW

DDS Wireless International Inc TSX:DD

Ten Peaks Coffee Company Inc3 TSX:TPK

Allied Hotel Properties Inc TSX-V:AHP

515 Pender St W Suite 300, Vancouver V6B 6H5 P: 604-669-5335 F: 604-682-8131 www.alliedhotels.com

Atacama Minerals Corp TSX-V: AAM

Carmanah Technologies Corp TSX:CMH

Scorpio Mining Corp TSX:SPM

475 Howe St Suite 511, Vancouver V6C 2B3 P: 604-678-9639 F: 604-602-9640 www.scorpiomining.com

Radiant Communications Corp TSX-V:RCN 1050 Pender St W Suite 1600, Vancouver V6E 4T3 P: 604-692-4531 F: 604-608-0999 www.radiant.net

Pacific Insight Electronics Corp TSX:PIH 1155 Insight Dr, Nelson V1L 5P5 P: 250-354-1155 F: 250-505-2131 www.pacificinsight.com

Cabo Drilling Corp TSX-V:CBE

Electronic solutions for commercial vehicles 1987 and other vehicle sectors

120 Lonsdale Ave Suite 300, North Vancouver V7M 2E8 P: 604-984-8894 F: 604-983-8056 www.cabo.ca

Drilling services for the mining sector

2001

John Versfelt, chair, president and CEO Calvin Lucyshyn, CFO

NP NP

$33,992 $33,187

($1,496) ($847)

$28,986 $41,162 -30%

TIO Networks Corp TSX:TNC

Multi-channel expedited bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America

1997

Hamed Shahbazi, chair and CEO

53 55

$12,529 $11,726

($1,917) ($2,165)

$27,771 $21,471 29%

Silver mining and exploration

1998

Lenic Rodriguez, president and CEO Salvador Huerta, CFO

NP NP

$105,172 $79,611

($6,244) $3,770

$26,937 $16,134 67%

250 Howe St Suite 1550, Vancouver V6C 3R8 P: 604-298-4636 F: 604-298-4216 www.tionetworks.com

Aurcana Corp TSX-V:AUN

1188 Georgia St W Suite 1515, Vancouver V6E 4A2 P: 604-331-9333 F: NP www.aurcana.com

Sources: Interviews with above companies and BIV research. NP Not provided NR Not ranked NA Not available 1 - Converted from U.S. dollars 2 - 2009 figure 3 Formerly Swiss Water Decaffeinated Coffee Income Fund

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com

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Top 100 Public Companies 27

June 21–27, 2011 Business in Vancouver

Consumer trend: Looking for better-for-you products from Not, 25

You can get the category to grow by focusing on quality, by giving the consumer alternatives, variety, interest – because they’ll respond. How is your company poised to capitalize on opportunities in the decaf coffee market? Where we fit in is primarily in the premium end of the marketplace. What’s driven our space is a very wellentrenched consumer trend surrounding better-for-you food products. And if an organization cares, if a brand cares, if a roasting outlet cares about what they serve their consumer and they know how to market behind it – which isn’t hard, but it’s part of the story – they’ll choose chemical-free decaffeination. And that’s really what we focus on: providing roasters, of course, the product but also the idea of how to market that to consumers. Last year we spent almost $500,000 in consumer research, just because we’re repositioning the business. By doing that we’ve found some unique areas of opportunity within the decaffeination space that are leading us down to some new opportunities. I can’t say what those are but it is very interesting. What’s happened with coffee as a commodity in the last year and what impact is that having on the industry? If I think back over the past 18 months when coffee was sitting at $1.40 as measured on the New York C Exchange, it’s now trading at $2.75. So it’s absolutely skyrocketed, not unlike cotton, not unlike sugar, not unlike copper. It is certainly causing a lot of angst in terms of working capital, in terms of being able to manage doubling the cost of your inventory, increasing the cost to hold inventory. Certainly, we are seeing pressure in the broader marketplace in terms of people reducing their inventories, people maybe paying slower, people maybe exiting the category from a roasting point of view. Some are pricing for the end consumer well and that’s critical. Others, maybe new to coffee in the past 10 years, have never seen a run up on the C like this. The last time it really happened like this was in 1997 and if you weren’t around then, you price too slow,

your margins collapse, all of a sudden you can’t pay your end suppliers and you run into some difficulties. How have you achieved success in 2010? For our business specifically, we have been focused on ensuring that our entire value proposition is as refined as it possibly can be. Going through a recession and also for us specifically dealing with increased competition from Mexico, from Germany, we need to ensure that our value proposition is absolutely spot on and so that means significantly improving our quality through capital projects. We’ve put productivity initiatives into our facility here to help deal with some of the squeeze in margins that we’ve had over time and we’ve changed our overall pricing strategy to improve competitiveness in the marketplace, and that’s what’s been yielding results through 2010. What impact has the high Canadian dollar had on your business? Eighty per cent of what we price is in U.S. dollars, 80% of our margin is made in U.S. dollars and that needs to be converted into Canadian dollars. Talk about a challenge, absolutely. We’re at, in our estimation, kind of a new level: parity dollar is where we’re going to be and that’s the basis on which we need to go forward and compete and that’s why quality initiatives are so critical. Why? Because you don’t want to be losing customers, you want to be gaining customers, and you’re not going to gain them simply by pricing; you’re going to gain them by an appropriate value offering. Going forward in 2011, what are you seeing ahead for the specialty coffee market in North America? I really think that the thirdwave element of the marketplace is re-energizing coffee in a way that is unexpected, almost as unexpected as what Starbucks did 20 years ago. A private equity group bought one of the leaders in thirdwave new coffee [recently] called Stumptown [Coffee Roasters]. That’s the first time that I’ve seen private equity interest in this particular space and it’s simply because there is growth in this area. I also think that single serve is still going to be a very critical trend at the mainstream or the commercial

end, which would be in the form of K-cups. At the more specialty end of the marketplace, this idea of single serve for everybody in terms of pour overs is a very unique trend. I think that that will drive consumption, it’ll drive interest, it’ll drive variety, it’ll drive quality. What are some of Ten Peaks’ top goals for 2011? We are focused on broadening out or diversifying our entire operation. Decaffeination will always be the core

of our business; however upstream into warehousing and logistics is clearly an opportunity for us. It is something that is already core to our business yet we are not operating in that space. Logistics, warehousing, brokerage – while not particularly sexy – is core to providing great service, so we’ll be building upstream into that space. As well, downstream, closer to the consumer, there are opportunities for our business. • jwagler@biv.com

Demand: Barely keeping up from Telus, 21

150,000 Optik TV subscribers per year. And while Shaw is expected to soon jump into the mobile-phone business, Casey said Telus “has the financial scale and momentum in wireless to remain aggressive in 2001 and 2012, when Shaw expects to launch a wireless product.” Smartphone use in Canada is growing so rapidly, Telus is putting much of its energy into just keeping up with the ever-growing de-

mand for the wireless spectrum. The company is working on increasing data speeds three to five times over HSPA+ with LTE (long-term evolution), and recently announced a deal with Skype to produce the first Skypebranded phone in the Canadian market. “About one-third of our overall subscriber base now has smartphones,” McFarlane said. “A year ago it was half that.” • nbennett@biv.com

Daily business news at www.biv.com Business in Vancouver June 14–20, 2011

HST at 10% or GST + PST at 12%? If British Columbians vote ‘NO‛ to going back to PST + GST in the referendum, the HST reduction to 10% will be the law. The province‛s official notification to the Government of Canada guarantees the drop in HST by way of a signed federal government order.

Decide for yourself. Learn more at HSTinBC.ca

Law

June 21–27, 2011 Business in Vancouver

Trouble

DISCIPLINE •British Columbia

Securities Commission

The British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that a 24-year-old B.C. man defrauded an Alberta resident out of $11,050 after meeting her on the Internet, the regulator announced June 8. The notice of hearing says that Ajit Singh Basi, 24, corresponded with a woman for several months after meeting her on the Internet in 2009, leading her to believe he was a stockbroker with a large North American client base. On December 22, 2010, Basi, who is a former mutual fund salesperson, allegedly advised the investor that he had an investment opportunity for her, and instructed the woman to deposit $15,500 into his bank account. The investor later contacted Basi’s bank with some concerns about the investment. The bank subsequently returned $4,450 of her funds. The notice alleges Basi told the investor he would return the remaining $11,050, but failed to do so. It also alleges that he converted this money to his personal use, including at least $3,450 to pay outstanding debts in arrears. These allegations have not been proven. B.C.’s Civil Forfeiture Office and the BCSC have reunited 37 Canadians with the full amount of $190,121 they lost to fraud in 2003, the BCSC announced June 9. Two B.C.-based companies targeted the investors, largely through word-ofmouth promotion. The investments, offered by Wellspring Capital Group, promised investors a return on their investments through various business schemes. Investors paid for their investments through a numbered company that called itself Springpay Systems. In reality, the only source of funds for Wellspring’s income programs was new investors’ money. The companies later admitted to operating illegal Ponzi schemes. Acting on a tip from authorities in the U.S., where similar scams were discovered, the BCSC located the Canadian investors’ funds in B.C. bank accounts. The commission froze the funds, investigated, then referred the matter to the Civil Forfeiture Office, which pursued a successful forfeiture action and then returned funds to investors. In March 2007, a director of the two companies was convicted in the U.S. and sentenced to 10 years in

prison for activities that were substantially the same as, and related to, those carried out by Wellspring and Springpay in Canada. The amounts reimbursed to the 37 victims ranged from $250 to $50,120. The average claim was just over $5,100.

•Law Society of BC

The Law Society of BC has fined Edward Earle Bowes $4,500 for professional misconduct related to a shareholders’ dispute, the regulator announced June 6. Bowes admitted that he breached his undertaking by continuing to act on behalf of a majority shareholder and some or all of the corporate defendants in a legal action after he gave his undertaking not to do so, and by providing legal advice and services in respect of the action to the majority shareholder and/or some or all of the corporate defendants. Bowes admitted his actions constituted professional misconduct. He was fined $3,000 for his actions and ordered to pay the Law Society $1,500 in costs.

Essential Elements Day Spa, Vernon Essentials Beauty and Health Guide, Langley Executive Hotel, Harrison Hot Springs Malahide Design & Manufacturing Inc., Richmond Mr Lube, Vancouver New Petcetera Retail Ltd., Richmond Nor Pac Marketing, New Westminster Our Little Secret Corp., Vancouver Pink Lotus Florist, Surrey Vacu-Maid Of B C Inc., Kelowna Vancouver Beauty Supply, Vancouver Vancouver’s Best Painters Inc., Vancouver Visions Electronics Ltd., Surrey Vista Realty Ltd., West Vancouver The following companies have responded to the BBB subsequent to being published: Maple Ridge Chrysler (2005) Ltd., Maple Ridge Shaw Cablesystems GP, Vancouver Walnut Grove Computers, Langley

Who’s BUYER’S ALERT Getting Sued Companies listed below, These corporate writs were which are not members of the Better Business Bureau, have failed to respond, as of June 10, 2011, to Better Business Bureau of Mainland B.C.’s efforts to mediate complaints from May 30 to June 3, 2010. In some instances, the company may have taken care of the complaint and considered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records cannot reveal either position. Please note that BBB members must respond to customer complaints that are brought to their attention. Source: BBB. 123 Ink Cartridges, Richmond Biothera Clinics, Langley Brentwood Distributors, Richmond Canada Pharmacy, Surrey Canadian Massaging Chairs, Langley Canadian Tire Associate Store, Surrey Carrier Canada Ltd., Langley ClaimFreeReward.com, Vancouver Classic Limousine Service, Vancouver Coastal Ford Sales Ltd., Vancouver Cobalt Custom Homes Builder Ltd., Vancouver Come Clean Naturally, North Vancouver Community Advertising Network, Westbank CrossRoads Management Ltd., Surrey E Q 3, Vancouver Eaton’s Commercial & Residential Services Ltd., Burnaby Empire Vehicle Solutions Inc., Surrey Energy House, Langley Enterprise Rent A Car, Port Coquitlam Enterprise Rent-A-Car Canada Ltd., Richmond

filed with the B.C. Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court. Plaintiff: Sheila Ann Ungerer 310, 11806 88 Ave., Delta Defendant: Coast Capital Savings Credit Union, Richmond Centre Branch Address unavailable Claim: $10 million for four joint accounts that were closed without the plaintiff being present. Defendant: Nelson M. Skalbania 3585 Point Grey Rd., Vancouver Plaintiff: 0055498 B.C. Ltd. formerly known as Archer Investments Ltd. Box 11117, 1500–1055 W. Georgia St., Vancouver Claim: $1,128,391 for an

Insurance Co., or, damages for breach of the subcontract against Siemens and damages for breach of the bond against The Sovereign General Insurance Co; and a lien for $130,655 against all holdback funds against Burnaby.

unpaid judgment from a previous action. Defendants: Titan Construction Co. Ltd. and HLTC Holdings Ltd. 300–31935 South Fraser Way, Abbotsford and 10206 152 St., Surrey Plaintiff: Belair Fabrication Ltd. 1400–1125 Howe St., Vancouver Claim: $711,920 for steel; and a builder’s lien for $711,920. Defendant: Mercer Gold Corp. 1500–1055 W. Georgia St., Vancouver Plaintiff: Rahim Jivraj 3000–1055 W. Georgia St., Vancouver Claim: $214,170 for debt arising from a promissory note, and for management fees pursuant to a consulting agreement. Defendant: Kokanee Helicopters Inc. 200–1465 Ellis St., Kelowna Plaintiff: Heliproducts Industries Ltd. 350–18799 Airport Way, Pitt Meadows Claim: $161,755 arising from two helicopter operating leases. Defendants: M. Jorjezian Investment Corp. and Adrineh Sarvarian and Martiross Jorjezian and Talin Jorjezian 220–7525 King George Hwy., Surrey and 1427 Kings Ave., West Vancouver Plaintiff: Edwards, Kenny & Bray LLP 1900–1040 W. Georgia St., Vancouver Claim: $158,556 for debt for legal services. Defendants: Siemens Contracting Ltd. and The Sovereign General Insurance Co. and The City of Burnaby 201–33832 South Fraser Way, Abbotsford and 1400–1095 W. Pender St., Vancouver Plaintiff: Jack Cewe Ltd. 19th floor, 885 W. Georgia St., Vancouver Claim: $130,655 for labour and construction materials against Siemens and The Sovereign General

Defendants: Cindy Xiao Yan Li and Lili Gan 200–5511 West Boulevard, Vancouver and 8317 Government Rd., Burnaby Plaintiffs: Julia Chi Yuen Lau and Julia Lau Personal Real Estate Corp. 2300–550 Burrard St., Vancouver Claim: $121,240 for lost commission related to a real estate deal; damages; and an injunction; damages against Gan for loss of enjoyment and loss appreciation in value of another property after Gan listed the property, which Lau had intended to buy or else list herself, or, damages for lost commission on the sale of the property, or, an accounting for Gan’s commission thereon. Defendants: Iraj KazemPour and Hengameh Rah-Navard 2273 Mathers Ave., West Vancouver Plaintiff: C.J. Smith Contracting Ltd. 300–1681 Chestnut St., Vancouver Claim: $96,026 for renovation work; and a builder’s lien for $108,000 against the lands owned by the defendants and the improvement. Defendant: Transforce Administration Inc. 19th floor, 885 W. Georgia St., Vancouver Plaintiffs: KTL Transport Inc. and 588618 B.C. Ltd. and Supreme Trucking Ltd. 8335 Meadow Ave., Burnaby and 16160 Blundell Rd., Richmond Claim: $90,000 be released under order for equipment that was left on the defendants’ land; and a declaration the defendant has no claim to the above funds or determining the amount of the defendant’s

claim. Defendant: Mohammad Hussain aka Mohammad A. Hussain aka Mohammad Adnan Hussain aka Landtec Ground Experts 21476 83 Ave., Langley Plaintiff: Royal Bank of Canada Box 5050, Station A, Mississauga, ON Claim: $81,545 for debt. Defendants: SW Cycle Ltd. and Kelly Ernest Flynn and Emilie Deborah Cole Flynn 1930–1095 W. Pender St., Vancouver and 3041 Lakha Rd., Kelowna Plaintiff: 677234 Alberta Ltd. 1201–1030 W. Georgia St., Vancouver Claim: $78,951 for debt owing under a lease. Defendants: Chet Construction Ltd. and PCL Constructors Westcoast Inc. 33695 South Fraser Way, Abbotsford and 900–8080 Nelson St., Vancouver Plaintiff: Raydon Rentals Ltd. operating as The Cat Rental Store 1000–666 Burrard St., Vancouver Claim: $78,492 against Chet for equipment and machinery; a declaration that Raydon is entitled to a lien against the holdback; and orders. Defendants: Kenneth Brian Falcon and EMResponse Systems Ltd. Address unavailable Plaintiff: Carolina Cecilia Abramovich 8380 Rosebank Cres., Richmond Claim: $71,400 for losses suffered as a result of fraud and negligent misrepresentations regarding a health-care business; and damages. Defendant: CooperAtlanta Transportation Services Inc. 2711 Peachtree-Square Atlanta, GA Plaintiffs: DDS eFleet Servies Ltd. Partnership and DDS eFleet Services Inc. 2600–595 Burrard St., Vancouver

Thank you

ETHICS TENACITY RIGOUR ANALYTICS

Thank you!

to all of the attendees and sponsors of the 4th Annual CFA Day Professional Networking Event on June 9

CFA Vancouver wouldwith likeeconomic to thank projections on Guests were entertained and educated all the attendees and sponsors of theOil” 4thby Annual whether “Growth is Sustainable with Triple Digit international CFA DayVisit Professional Networking on Juneand 9 author, Jeff Rubin. cfavancouver.com forEvent an overview consult the calendar for future events. Guests were entertained and educated with economic projections on whether “Growth is Sustainable with Triple Digit Oil” by international CFA Vancouver – setting a higher standard for the and author, Jeff Rubin. Visit cfavancouver.com for an overview Vancouver consult theinvestment calendar for community future events.

Toronto Stock Exchange

TSX Venture Exchange

Toronto Stock Exchange

TSX Venture Exchange

Toronto Stock Exchange

TSX Venture Exchange

Daily business news at www.biv.com Business in Vancouver June 21–27, 2011

CONGRATULATIONS

2011 TECHNOLOGY IMPACT AWARD WINNERS

TOP ROW (LEFT TO RIGHT) JEFF LAPORTE - REWARDLOOP NIGEL MALKIN - REWARDLOOP KAMAL ATHWAL - SUNCENTRAL INC. SHANNON SUSKO - SUBSERVEO INC. RYAN VOLBERG - VIVONET INC. KEVIN FALK - VIVONET INC.

PHOTO BY Kim Stallknecht

THANKS TO OUR SPONSORS FOR THEIR SUPPORT PLATINUM SPONSORS CIBC TELUS

GOLD SPONSORS

IBM TSX, TSX Venture Exchange

SPONSORS

Accenture Ballard Power Systems Blake Cassels & Graydon LLP Bull, Housser & Tupper LLP Centre4Growth Deloitte Ernst & Young LLP Imogo MDA Odgers Berndtson SAP WavefrontTM

MEDIA & MARKETING PARTNERS BCBusiness Magazine Business in Vancouver Evolution E-Cubed Media Synthesis Kim Stallknecht Photography Marketwire Media FX Group T-Net Vancouver Island Technology Park VIATeC Webnames.ca

BOTTOM ROW (LEFT TO RIGHT) CAROLINE JELLINCK - ODGERS BERNDTSON COLIN HARRIS - PMC-SIERRA MOE KERMANI ALEXANDER FERNANDES - AVIGILON RON KLOPFER - ETALIM INC. MARK BETTERIDGE - DISCOVERY PARKS TRUST AND DISCOVERY FOUNDATION

CONGRATULATIONS TO THE LEADERS, INNOVATORS AND ENTREPRENEURS OF BRITISH COLUMBIA’S TECHNOLOGY INDUSTRY MOST PROMISING PRE-COMMERCIAL TECHNOLOGY ETALIM INC. EXCELLENCE IN PRODUCT INNOVATION SUNCENTRAL INC. BEST APPLICATION OF TECHNOLOGY SUBSERVEO INC. MOST PROMISING START-UP REWARDLOOP EMERGING COMPANY OF THE YEAR VIVONET INC. COMPANY OF THE YEAR PMC-SIERRA TEAM OF THE YEAR AVIGILON COMMUNITY ENGAGEMENT ODGERS BERNDTSON PERSON OF THE YEAR MOE KERMANI BILL THOMPSON AWARD MARK BETTERIDGE, CEO AND EXECUTIVE DIRECTOR DISCOVERY PARKS TRUST AND DISCOVERY FOUNDATION

Learn more about the Technology Impact Awards WWW.THETIAS.COM

June 21–27, 2011

LAW 31

Business in Vancouver

Trouble LAWSUIT OF THE WEEK

Cadillac shipment to China goes awry A West Vancouver resident is suing Westport Motor Cars Ltd. and Todd Haley MacDonald for US$264,000 for a deal that allegedly saw the wrong Cadillac shipped to China. According to an April 15 B.C. Supreme Court notice of civil claim, Lu Zhong Xiao, also known as Jonathan Xiao, agreed to buy a 2009 Cadillac Escalade from Westport and have it shipped to China in October of 2009. Xiao has claimed that Westport not only agreed to sell the Cadillac to him, but also ship it and provide one of its agents in China to handle import and licence fees. MacDonald, the president of Westport, allegedly told Xiao that its agent in China was experienced at importing vehicles into China, and that Xiao would need to forward funds to the agent in order to complete the process. It is further alleged that Westport told Xiao it would reimburse him for any overpayment he made for the import and licence fees. Court documents allege that Xiao completed the transaction using cheques and a bank draft totalling US$264,000. After the deal was done, MacDonald told Xiao the Cadillac that was shipped to China had been transferred into the name of a government official from Pakistan, court documents allege. Xiao claims the transfer was not part of the original deal. He further claims that Westport shipped the wrong Cadillac, instead sending a 2008 Escalade to China instead of the model he allegedly paid for. Xiao is seeking US$264,000 for the transaction, damages for fraud and fraudulent misrepresentation, an accounting and punitive and exemplary damages. On May 20, Westport and MacDonald filed a response to the civil claim. According to the response, Westport denies that it intended to facilitate the importation and licensing of the vehicle. Westport claims it specifically told Xiao it could not facilitate the importation of the Cadillac, and instead introduced Xiao to another man, Wei Chu, who could refer Xiao to someone in China to facilitate the importation. Westport further alleges the 2009 model could not be imported into China as a “used” vehicle, so the company offered to obtain a 2008 vehicle for Xiao. Westport claims it and Xiao then altered the terms of the sale to provide a 2008 Escalade. The vehicle has since been delivered to China, and Westport has alleged that Xiao refuses to take possession of it. Westport claims there is no basis for Xiao’s breach of contract claim, and that he has not suffered any damages and the vehicle is ready for pickup.

Claim: $54,756 for debt owing under the subscription agreement for chauffeured transportation services. Defendants: Sturgis North Promotions (2011) Inc. and Sturgis North Entertainment Inc. and Sturgis North Promotions Inc. 115B–19705 Fraser Hwy., Langley Plaintiff: Warren McKay 1400–1125 Howe St., Vancouver Claim: $52,500 related to business manager services for a motorcycle festival to be held in Salmon Arm in 2011. Defendant: Regency Irrigation Ltd. Address unavailable Plaintiff: Oase North America, Inc. Box 49130, 2900–595 Burrard St., Vancouver Claim: US$52,016 for debt for water products. Defendant: Dun/Rite Performance Inc. 6–8100 Capstan Way, Richmond Plaintiff: Jaime Walton 2600–595 Burrard St., Vancouver Claim: $50,000 for breach of an agreement to conduct a full rebuild of marine engines; an order that the cover and propellers be returned to the plaintiff, or, damages for unjust enrichment. Defendants: Ellard Contracting Ltd. and Grant Gunnar Ellard aka Grant Ellard and Lana Irene Ellard aka Lana

Ellard 201–10300 10th St., Dawson Creek and Mile 294, 2818 Alaska Hwy., Fort Nelson Plaintiff: Bodkin Leasing Corp. 1200–805 W. Broadway, Vancouver Claim: $64,114 for debt arising from two leases. Defendant: Mercer Gold Corp. aka Mercer Gold (Nevada) Corp. aka Mercer Gold Corp. (US) Address unavailable Plaintiff: W.L. Macdonald Law Corp. aka Macdonald Tuskey Corporate and Securities 800–885 W. Georgia St., Vancouver Claim: $48,254 for debt for legal services. Defendants: Grace Residences Ltd. and James Schouw & Associates Inc. and Brendan James Schouw 460–2609 Granville St., Vancouver Plaintiff: BC Hydro and Power Authority 333 Dunsmuir St., Vancouver Claim: $38,448 for electricity debt, or, damages for unjust enrichment. Defendants: Qualifab Building Products Inc. and Ronald W. Zink 1600–925 W. Georgia St., Vancouver and 24169 McClure Dr., Maple Ridge Plaintiff: Business Development Bank of Canada Box 6, 200–505 Burrard St., Vancouver Claim: $36,826 against

Qualifab for debt; enforcement of the general security agreement; $27,619 against Zink as guarantor of 75% of the debt. Defendants: Queen’s Park Apartments Inc. 202–2232 W.41st Ave., Vancouver Plaintiff: PCM Pomeroy Construction and Maintenance Ltd.

330–522 Seventh St., New Westminster Claim: $34,642 for construction management services and labour; and a builder’s lien for $34,642. Defendant: Elvira McCleave 802–1068 Hornby St., Vancouver Plaintiff: Superb Internet Corp. 3200–650 W. Georgia St., Vancouver Claim: US$26,418 for debt due when a management services contract ceased, or, a declaration the defendant holds a constructive trust, or, interest in the Horby Street condominium; and a further declaration that Superb Internet has a property interest in the lands arising from a constructive trust, or, a resulting trust. Defendant: Duane Trenaman aka Jody Duane Trenaman coba The Chop Shop 27139 35th Ave., Langley Plaintiff: Zantonio Enterprises Ltd. 300–1497 Marine Dr., West Vancouver Claim: $25,117 for rent arrears. Defendants: Steam Genie Ventures Ltd. now known as Genie Flooring Ltd. and Christian Schumacher and HyoJung (Jenny) Cho Box 41117, 2529 Shaughnessy St., Port Coquitlam and 1804 Jacana Ave., Port Coquitlam Plaintiff: The TorontoDominion Bank 2500–700 W. Georgia St., Vancouver Claim: $21,105 for debt. Defendants: Jake Sarwal and Manjit Singh Jagpal and Baljit Kaur Jagpal

and Ranjit Kaur Bains and Rupninder Kaur Bains and Gurwinder Singh Bains Address unknown and 6629 127A St., Surrey and 10388 174 St., Surrey and 9379 159A St., Surrey Plaintiff: LTM Excavating & Contracting Ltd. 13839 89A Ave., Surrey Claim: $20,536 for a builder’s lien related to a demolition contract; and the amount outstanding in the contract. Defendants: 0889455 B.C. Ltd. and Village Lounge and Nightclub Inc. and Bradley Peter Baxter and Alan Goodall 301–2502 St. Johns St., Port Moody and 4–2173 Timberidge, Whistler and 2574 Cornwall Ave., Vancouver Plaintiff: S&M Partners dba Spark Electrical 217–4368 Main St., Whistler Claim: $16,318 for electrical work. Defendants: Tsai H. Mah and KM Autobody Repair Ltd. 6707 Argyle St., Vancouver and 4854 Victoria Dr., Vancouver Plaintiff: Franklyn H. Smith 705–810 St. Andrews St., New Westminster Claim: Damages for an automobile collision. Defendants: Jonathan Cheung and May Cheung and Openroad Auto Group Ltd. 6910 Merritt Ave., Burnaby Plaintiff: DCH Motors Ltd. 4211 No. 3 Rd., Richmond Claim: A declaration the mortgage is void as a result of fraud; and orders. Defendant: Yongyu Zhang Room 01, 61F, B3 Building,

Huijin Garden, Chenghai, Shantou Guang Dong, China Plaintiff: Onni Development (Flo) Corp. Box 49130, 2900-595 Burrard St. Vancouver Claim: A declaration the plaintiff is discharged from further performance of the contract, arising from breach of a purchase contract, which resulted in the plaintiff selling the property for reduced value; a declaration the plaintiff is entitled to the deposit; a declaration that the deposit is absolutely forfeited to the plaintiff on account of damages; and damages. Defendants: SSBV Consultants Inc. and Pacific Liaicon and Associates Inc. 1200–200 Burrard St., Vancouver and 1600–925 W. Georgia St., Vancouver Plaintiff: Greater Vancouver Water District 1200–925 W. Georgia St., Vancouver Claim: Damages for breach of a contract for the design of a filtration plant. Defendants: South Coast British Columbia Transportation Authority dba TransLink and John Doe 1600–4720 Kingsway, Burnaby and address unknown Plaintiff: Saeid Sadraei 601–815 Hornby St., Vancouver Claim: Damages for injuries suffered when Doe negligently opened a door and struck the plaintiff at Burrard Station; the value of care provided by relatives and others; and health care costs.

2011 ICBC Commuter Challenge Congratulations and thank you to all participants and sponsors for your commitment to sustainable transportation. Top Workplaces for Participation and Distance Travelled 1 to 25 Employees

An evening full of Fun, Food & Fundraising

26 to 100 Employees 1. Miller Thomson LLP 2. Pottinger Gaherty Environmental Consultants 3, David Nairne + Associates Ltd.

Project Empty Bowl

1. Salt Spring Coffee-Tsawwassen 2. Salt Spring Coffee-Viking Roasting Facility 3. Dr. Sun Yat-Sen Classical Chinese Garden

101 to 250 Employees 1. Port Metro Vancouver 2. Mountain Equipment Co-op Head Office 3. Arc’teryx 3. Citizenship and Immigration Canada 251 to 500 Employees 1. Davis LLP 2. Transport Canada 3. Maxxam Analytics

500+ Employees 1. ICBC 2. Vancouver Public Library 3. Canada Revenue Agency Thank you to sponsors: The Bike Doctor Icebreaker TransLink Salt Spring Coffee Co. Steve Nash Fitness Centres Business in Vancouver

presented by Coast Capital Savings

Thursday July 7, 2011 6:30PM at the Coast Coal Harbour Hotel Tickets: $85 if purchased before June 24, 2011 $100 if purchased after June 24, 2011 Tickets on sale now at www.alovingspoonful.org or you can call 604-682-6325 to purchase by phone Visa/MC/AMEX accepted Email: PEB@alovingspoonful.org More info at www.alovingspoonful.org

For the record

Daily business news at www.biv.com June 21–27, 2011

index The following are People on the Move categories. Not all appear each week.

• Accounting • Advertising • Aerospace • Architecture • Associations/Societies • Biotech/Life Sciences • Communications/PR • Community • Design • Development/Construction • Education • Energy • Engineering • Finance • General

People on the Move Email your For the Record information to: fortherecord@biv.com. Please include a high-resolution, colour headshot where possible.

•Accounting

Ron Hooge has joined Berris Mangan Valuations Inc. as director of valuation services. He was previously vicepresident in the valuation and business modelling group at Ernst & Young.

•Biotech/LifeSciences

Alan Maddox has joined the board of Functional Technologies Corp. He was previously president of Sepp’s Group of Companies.

• Health/Medical • Hospitality/Tourism /Convention • Human Resources • Legal • Marine • Manufacturing • Media • Public • Real Estate • Resources • Sales/ Marketing • Technology • Telecommunications

•Education

Philip Steenkamp has been appointed vice-president of external relations at SFU. He was previously deputy minister in the B.C. ministries of regional economic and skills development; tourism, culture and the arts; aboriginal affairs; and advanced education. He was also president and CEO of the 2010 Olympic and Paralympic Games secretariat, cochair of the finance committee of VANOC and chair of B.C.’s deputy ministers’ committee on the Games.

•Engineering

Doug Hinton, executive vicepresident, divisional manager, Western Canada, at Hatch Mott MacDonald Ltd., has been appointed president of the board of the Consulting Engineers of BC.

Ryan Irving, Lee Mauro and Michael Toulch join Harper Grey as associates

Allan Russell has been appointed vice-president leading the Vancouver region engineering group at McElhanney Consulting Services Ltd. He is past president of the Consulting Engineers of BC and of Terra Engineering and was previously senior vice-president of Trow Associates Inc.

•Finance

Virginia Weiler and Jan O’Brien have joined Vancity as chair and vice-chair of the board. Patrice Pratt has stepped down as chair. Weiler was the founding director of economic development for Ecotrust Canada. O’Brien is the provincial secretary for the BC NDP and has worked as a labour relations specialist with the BC Government and Service Employees’ Union and

Adam Calleja and Julie Ireton join MHPM Project Managers as business development manager, Pacific region, and senior adviser and project manager, respectively

the BC Labour Relations Board. David Chalmers and Dylan Reece have joined Nicola Wealth Management as financial advisers. They previously held the same positions at Rogers Financial Group. Robyn Orford has been appointed branch manager at Envision Financial’s Abbotsford Village branch. She was previously branch manager at Envision’s Yarrow branch.

•

Development/ Construction

Adam Calleja and Julie Ireton have joined MHPM Project Managers Inc. as business development manager, Pacific region, and senior adviser and project manager, respectively. Calleja was previously sen-

Kathy deLisser is assistant general manager, guest experience, at BC Place

ior business development manager at MWB Business Exchange and Ireton was a project manager for ICBC.

•Hospitality/

Tourism/Convention

Geoff Carkner has joined the Fairmont Vancouver Airport as executive chef and leader of the culinary team at the Globe@YVR restaurant and Jetside Bar. He was previously executive sous chef at the Fairmont Hotel Vancouver. Kathy deLisser has been appointed assistant general manager, guest experience, at BC Place. She was previously director of planning, 2010 Olympic and Paralympic Games, for the Vancouver Airport Authority.

Robyn Orford is branch manager at Envision Financial’s Abbotsford Village branch

•Legal

Ryan Irving, Lee Mauro and Michael Toulch have joined Harper Grey LLP as associates. All three articled with Harper Grey before being called to the B.C. bar in 2011.

•Resources

Michael Thicke has been appointed president of Cobriza Metals Corp. He was previously vice-president, exploration, and technical adviser at Candente Copper Corp. and a geologist at BHP Billiton. David Beling has joined the board of Quantum Rare Earth Developments Corp. and James Reynolds and David Shoemaker have joined as advisers. Beling is an independent consultant with D.C. Beling & Associates. Reynolds was previously

Metro Vancouver BMW Retailers

vancouver retailers.bmw.ca

The Ultimate Driving Experience.®

2012 BMw X1 with sport package shown.

ThE all-nEW BMW x1 28i WiTh xDRiVE all-WhEEl DRiVE. PERfoRMancE WiThoUT coMPRoMisE. 6.5 l/100 kM highWay anD 10.2 l/100 kM ciTy.

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European model shown. Features and equipment may vary in Canada. MSRP of a 2012 BMW X1 xDrive28i starts at $38,500. Lease rates are those offered by BMW Financial Services Canada only on approved credit (OAC). *Lease rate of 4.9% available for up to 48 months. Lease example based on $398 a month for 48 months. Down payment or equivalent trade of $5,900. Freight and PDI and other additional fees are extra and due on signing. HST and licence fee are extra. Total obligation is $25,021.76. The residual value of the vehicle at end of term is $18,480. Annual kilometres limited to 20,000; $0.15 per excess kilometre. Excess wear-and-tear charges may apply. Additional province-specific fees, taxes, and charges may be extra. Retailers are free to set individual prices and charge administration fees, which may change the APR or the price of the vehicle. Offer expires July 3, 2011. Delivery must be taken by July 3, 2011. Offer requires Retailer participation. Offer is subject to availability and may be cancelled or changed without notice. Certain conditions apply. See your local BMW Retailer or vancouverretailers.bmw.ca for full details. †Certain limitations apply; see Retailer for details. ©2011 BMW Canada Inc. “BMW”, the BMW logo, BMW model designations and all other BMW related marks, images and symbols are the exclusive properties and/or trademarks of BMW AG, used under licence.

for the record 33

June 21–27, 2011 Business in Vancouver

Heather Gratland (ARC), Linda Parsons (Davis LLP), Barb Ruff (Scotiabank), Emily Jubb (Vancouver Courier), Keri Adams (CTV), Lisa Ethans (Deloitte), Tamara Johnston (BC Business), Tamara Slobogean (News1130) and Joe Timlin (GrowthWorks)

a project manager at Hazen Research. Shoemaker was previously manager and vicepresident of Molycorp Inc. Molybdenum Group. Tom Ogryzlo has been appointed interim CEO of Aura Minerals Inc. He was previously vice-president, Latin America, of Ram Power Corp., founder and CEO of Polaris Energy Corp. and president of Kilborn Engineering and Kilborn SNCLavalin. Michael Hunter has been appointed president of Cardero Resource Corp. replacing Hendrik Van Alphen who will remain as CEO and director. Hunter was previously founder and president of Coalhunter. Wang Xiaoshen has joined International Lithium Corp. as non-executive director to the board. He is vice-chair and executive vice-president of Jiangxi Ganfeng Lithium. Steven Green has been appointed president of Otterburn Ventures Inc. He was previously a manager at Fronteer Gold USA. Bruce Winfield and Richard Tschauder have joined Defiance Capital Corp. as president, CEO and director, and vice-president of exploration, respectively. Winfield was previously vice-president, exploration, for Greenstone Resources. Tschauder was previously an independent project manager. Conrad Swanson has joined the board of Swift Resources Inc. He is president and director of Gold Reach Resources

Careers

Teri McIntyre, CIBC, and members of student company “B.EAST” from Britannia Secondary School

Ltd., International Samuel Exploration Corp. and Alya Ventures.

•Telecommunication

James Topham has been appointed to the board and been named chair of the audit committee at DDS Wireless International Inc. He is CFO of dpoint Technologies Inc. and was previously a technology partner at KPMG.

Companies on the Move • Name change

Meyers Norris Penny LLP has changed its name to MNP. United Mining Group, Inc. has changed its name to United Silver Corp. and will commence trading as TSX:USC.

Hats Off Business in Vancouver wel-

comes submissions from local small businesses and large corporations alike that demonstrate examples of corporate philanthropy and community involvement in the Vancouver area. High-resolution images are also welcome. The Big Sisters Spring Lunch raised $53,000, which will allow Big Sisters of BC Lower Mainland to match at least 26 of the 180 girls on their wait list with a volunteer mentor. Scotiabank donated $50,000 to VGH & UBC Hospital Foundation in support of the spine outpatient program at VGH.

Barb McInnis, director, major gifts and planned giving, VGH & UBC Hospital Foundation; Michelle Cobb, manager, community engagement, sponsorships and special projects, Scotiabank; Rob Wilkins, district vice-president, Scotiabank; and Ron Dumouchelle, president and CEO, VGH & UBC Hospital Foundation

G&F Financial Group raised $21,414.80 during its BC Children’s Hospital annual fundraising campaign.

of Self-Counsel Press, has been awarded a 2011 President’s Award by the Association of Canadian Publishers.

Peter Halsall, president and CEO of Halsall Associates, was inducted into the Canadian Academy of Engineering.

Junior Achievement of British Columbia awarded “B.EAST” the 2011 CIBC Student Company of the Year Award. This after-school program was staffed by high school students from Britannia Secondary School in East Vancouver.

Diana Zitko, mortgage broker and owner of Dominion Lending Centres West Coast Mortgages, won the Mortgage Broker of the Year Award at the CMP Canadian Mortgage Awards. Diana Douglas, co-founder

• www.employmentinvancouver.com • E-mail: employpaper@biv.com • Tel: 604-688-8828 • Fax: 604-669-2154

Work With us & groW a career

Keri Nelson, producer of the Variety Show of Hearts Telethon has been named the 2011 recipient of Variety - The Children’s Charity’s Heart Award, which is presented to a person who has devoted time, effort and rendered incredible service to the work of Variety over the years. Howard Blank, vice-president, media, entertainment and responsible gaming, with Great Canadian Casinos, won the 2011 Barker of the Year Award,

Integrated smooth sailing Project of project Management management “best in class”

standards and frameworks

which is presented to someone who has rendered outstanding service to Variety throughout the year. Catalyst Paper was named one of the top 20 overall best corporate citizens in Canada by Corporate Knights in its 2011 Best 50 Corporate Citizens in Canada list. Catalyst was also named to the 2011 Maclean’s/ Jantzi-Sustainalytics list of the 50 Most Socially Responsible Corporations in Canada. •

Continuous Process Improvement mentoring and coaching of team members

Glacier Media Group is growing. Check our job board regularly for the latest openings: www.glaciermedia.ca/careers

1-604-433-6660 wolfpany@isem.on.ca www.linkedin.com/in/wolfpany

Datebook

Daily business news at www.biv.com June 21–27, 2011

Guarantee the publication of your listing for $50 per issue (plus hst). 604-608-5189 or datebook@biv.com 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 gst. 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 Meetings Discovery Days: BC Cancer Foundation June 21, 2011, 11:45 AM: The Va n co u ve r B o a rd of Tr a d e in co-operation with the BC Cancer Foundation are proud to present Discovery Day 2011 — a celebration of world-firsts coming out of the BC Cancer Agency that are giving cancer patients renewed hope. $99 m e m b er s a n d g u e s t s / $ 1 3 8 future-members (+HST). Four Seasons Hotel Vancouver, Park Ballroom, 791 Georgia Street West . Vancouver, BC. w w w. reservations@boardoftrade. com. www.boardoftrade.com. HKCBA - Mayor Gregor Robertson: Opportunities for Vancouver Businesses in the China Market June 21, 2011, 12:15 PM: Mayor Robertson will discuss his 2010 business mission to China and will also share his vision for economic development and the unique connections between HK and Vancouver in terms of business and investment opportunities in China’s growing urban markets. $55 per member; $65 regular; $550 per table of 10. Four Seasons Hotel, 791 West Georgia Street. Vancouver, BC.

604-684-2410 or vancouver@ hkcba.com. www.hkcba.com/ vancouver. TechForum - Intelligent Utilities: Building BC Hydro’s Smart Grid June 23, 2011, 11:30 AM: Join Don Stuckert, Julius Pataky and Kip Morison of BC Hydro as they discuss smart grids, technology requirements, future plans and the economic opportunities this represents for the technology industry in British Columbia a n d b e yo n d . M e m b e r $ 5 5 ; N o n - m em b er $ 8 0 ; Stu d ent $36. Sutton Place Hotel, 845 Burrard St. Vancouver. Rebecca Clark: 604.602.5241, rclark@ bctia.org. www.regonline.ca/ techforumsmartgrid. How to Structure Your Financial Assets June 23, 2011, 6:30 PM: Learn how to coordinate your personal a n d co r p o r a te inve s tm e nt strategies. Use your capital more effectively and reduce t a xe s . S p e a ke r : D a ve L e e , ScotiaMcLeod. Complimentary admission. 100 - 1676 Martin Drive. White Rock. Dave Lee, 604535-4743. www.dave-lee.ca. Vancouver AM Tourism June Association Meeting June 24, 2011, 7:00 AM: Speaker: Deputy Commissioner Peter German, District Commander RCM P Lower Mainland . $ 28 members, $38 non-members, $23 students. RCMP Officer’s Mess, 5255 Heather Street. Van. 604738-5506; office@vancouveram. ca. www.vancouveram.ca. First and Goal: Kicking off the Season with the BC Lions June 24, 2011, 11:45 AM: Wally Buono,General Manager, Head Coach, BC Lions and Alternate Governor, Canadian Football Le a g u e . $ 69 m em b er s a n d

guests/$96 future-members (+HST ). The Fairmont Hotel Vancouver, British Columbia Ballroom, 900 Georgia Street West. Vancouver, BC. reservations@boardoftrade. com. www.boardoftrade.com. Oil Sands Innovation and Technology: The Key to Current and Future Challenges June 28, 2011, 11:45 AM: Don Thompson, President, Oil Sands Developers Group (OSDG). $69 members and guests/$96 futuremembers (+HST). The Sutton Place Hotel, Versailles Ballroom, 845 Burrard Street. Vancouver, BC. reservations@boardoftrade. com. www.boardoftrade.com. Vancouver AM Tourism July Association Meeting July 8, 2011, 7:00 AM: Inside the brand new Bank of Montreal tent! Speaker: Christopher Gaze, Artistic Director, Bard on the Beach. Catering by The Butler Did It. $28 members, $38 nonmembers, $23 students. Bard on the Beach - Vanier Park. Va n co u ve r. 6 0 4 -7 3 8 - 5 5 0 6 ; office@vancouveram.ca. www. vancouveram.ca. Spirit of Giving July 13, 2011, 10:00 AM: Spirit of Vancouver invites you to our annual Spirit of Giving luncheon onboard the majestic ms Volendam cruise ship to experience the incredible food, wine, hospitality and service of Holland America, and hear from a special guest speaker. $69 members and guests/$96 future-members (+HST). Holland America Line’s ms Volendam, Cruise Ship Terminal Level, 999 Canada Place . Vancouver, BC. www.reser vations@ b o a r d o f t r a d e . c o m . w w w. boardoftrade.com.

Conferences, Change a Conventions, Child’s Life Tradeshows

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If you can’t use your tickets, then give them to us and we will send a child in need to the event, and issue you a tax receipt. Since 2004, Kids Up Front has provided more than 170,000 life-changing experiences to at-risk children across Greater Vancouver. To donate your ticket and provide a child with a lifetime experience, call 604.266.KIDS(5437) or visit us at: kidsupfrontvancouver.com

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Mortgage Investment Association of BC (MIABC) Housing Affordability Symposium J u n e 2 1 , 20 1 1, 1 1:45 AM: MIABC Housing Affordability Symposium: Creating Housing Alternatives in Canada’s Least Affordable City. Please visit our website for details on the event as well as our great line up of speakers! MIABC members $128.80; Non-members $168.00. Terminal City Club, 837 West Hastings Street. Vancouver, BC. contactus@miabc.com. www. miabc.com. YES! You Can! Forum Series - IMAGE: It’s More Than Just a Logo June 26, 2011, 11:00 AM: A must-attend event for savvy business women, this event features interactive workshops with industry professionals; networking; and specific techniques, tools and tips to assist us in creating and keeping our edge in this economy. (Did

we m e ntio n n et wo r k in g?! ) Holiday Inn Express, 2889 East Hastings St. Vancouver, BC. Cathy, theconnectedwoman. com. http://bit.ly/fhnJ0P. UBC Summer Institute in Sustainability Leadership July 4, 2011, 8:15 AM: One-week p rofe s si o n a l d evel o p m e n t program designed to help you accelerate the sustainability agenda in your organization/ community. Participants gain the perspectives and strategies needed to develop policies, create plans and manage sustainability plans. Prices vary. UBC Point Grey Campus. Vancouver, BC. sustainability@ cstudies.ubc.ca. cstudies.ubc. ca/sisl. The World MoneyShow Vancouver September 19, 2011, 8:30 AM: Learn how to best position your portfolio for profit in 2011 and beyond. As this new era of investing unfolds, smar t investors know it’s imperative to stay informed and educated. Free admission. Vancouver Convention Centre, 1055 Canada Place. Vancouver. 800-9704355. http://www.moneyshow. com/tradeshow/vancouver/ w o rl d_ m o n ey S h o w/m a i n. asp?scode=023199. APEGBC Annual Conference & AGM October 13, 2011, 8:00 AM: Join us as we celebrate the accomplishments in the professions of engineering and geoscience. A s BC ’s p re m ie re e n gin e e r in g a n d geoscience event, the Annual Conference and AGM are sure to offer participants valuable opportunities to network with leading professionals in the industry. Prices vary. Delta Grand Okanagan Resort and Conference Centre. Kelowna, BC. Shirley Chow: 604-412-4865, ac2011@apeg.bc.ca. http://www. apeg.bc.ca/ac2011/.

Courses, Workshops, Seminars Sales and Marketing Peer Group Roundtable: Winning Strategies for Complex Sales June 21, 2011, 5:30 PM: Join i n t h e d i s c u s s i o n a s M i ke Smith, President of StrataMax Business Development, shares best practices, war stories and case histories in an effort to help you develop a methodology that will work for your product or ser vice in your markets. Member $15; Non-member $30. Segal School of Business, 500 Granville Street. Vancouver. Rebecca Clark, rclark@bctia.org. www.regonline.ca/junesmg. HR Metrics Benchmarking Service: June Demo & Overview June 23, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo,

No charge. Online. 604-6946946. http://www.bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-241. Leadership Skills for Managers & Supervisors/ Managing Generational Differences (Vancouver Seminar) June 28, 2011, 9:00 AM: Learn the differences between being a great leader who develops high performing and engaged teams, and one who simply manages them, and how leaders create more prof it . G ain a deeper understanding of the characteristics and behaviours of the generations. $125.00+HST 1/2 day, $199.00+HST full day. BCIT Campus - 555 Seymour Street. dwalmsley@dlionline.ca or 604 824-6776. https://www. dlionline.ca/seminars.php. Leadership Skills For Managers & Supervisors/Managing Generational Differences (Abbotsford Seminar) June 29, 2011, 9:00 AM: Learn the differences between being a great leader who develops high performing and engaged teams, and one who simply manages them, and how leaders create more prof it . G ain a deeper understanding of the characteristics and behaviours of the generations. $125.00+HST 1/2 day, $199.00+HST full day. Abbotsford Ramada Plaza and Conference Centre. dwalmsley@ dlionline.c a 6 0 4 8 24- 67 76 . h t tp s: //w w w. d l i o n l i n e . c a / seminars.php. BCBusiness TOP 100 - See and Hear Jimmy Live! June 29, 2011, 1:00 PM: Less than 10 0 ticket s remain to see and hear Jimmy Pattison live. For only $99, learn how to make your business better. You’ll also receive a one-year subscription to BCBusiness magazine and a copy of Peter Legge’s best selling book The Power of a Dream. $75 plus HST. Fairmont Hotel Vancouver. Vancouver. Tim Reyes, 604639-3798. bcusinessonline.ca/ top100event. Canadian Securities Course (CSC) July 6, 2011: Have the skills and knowledge to become a licenced mutual funds salesperson with our Canadian Securities Course. Ashton College. Vancouver. 604899-0803/info@ashtoncollege. com. www.ashtoncollege.com.

www.bivdatebook.com you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. No charge. Online. 604-6946946. http://www.bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-222. HR Metrics Benchmarking Service: September Demo & Overview September 28, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Ser vice, sign up for this 1-hour demo, Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma. org. http://www. bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-252. HR Metrics Benchmarking Service: October Demo & Overview October 28, 2011, 8:30 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo No charge. Online. 604-694-6946, lwhalley@ bchrma.org. http://www.bchrma. org/content/events/ls/details. cfm?EventID=035-223. HR Metrics Benchmarking Service: November Demo & Overview November 30, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Ser vice, sign up for this 1-hour demo. Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma. org. http://www. bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-253. HR Metrics Benchmarking Service: January Demo & Overview January 18, 2012, 9:00 AM: If you are looking to learn more about the HR Metrics Ser vice, sign up for this 1-hour demo. Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@bchrma. org. http://www. bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-254. HR Metrics Benchmarking Service - Demo & Overview: High-Tech Come join us for an overview of the HR Metrics Benchmarking Service with a special focus on the High-Tech Sector. Online. 604-694-6946, lwhalley@ bchrma.org.

Festivals

HR Metrics Service - Demo & Overview: Manufacturing July 21, 2011, 9:30 AM: Come join us for an overview of the HR Metrics Benchmarking Service with a special focus on the Manufacturing Sector. No charge. Online. 604-6946946. http://www.bchrma.org/ co n te n t/eve n ts/ls/d e ta i ls. cfm?EventID=035-237.

Agassiz Slow Food Cycle Tour July 23, 2011, 9:00 AM: This tour provides an educational and culinary experience exploring many farms, some that are open to the public on these days only. This is an event that is suitable for families of all ages. $20/ person, Children 12 and under are free. On the corner of Cameron and McCallum Road. Agassiz. www.slowfoodvancouver.com.

HR Metrics Benchmarking Service: July Demo & Overview J u ly 22 , 20 11, 8: 30 AM: If

Chilliwack Slow Food Cycle Tour July 24, 2011, 9:00 AM: This tour provides an educational and

June 21–27, 2011

DATEBOOK 35

Business in Vancouver

culinary experience exploring many farms, some that are open to the public on these days only. This is an event that is suitable for families of all ages. $20/ person, Children 12 and under are free. Tourism Chilliwack Visitor Centre, 44150 Luckakuck Way (Exit #116 from Hwy 1, infront of Heritage Park). Chilliwack. www.slowfoodvancouver.com.

GOLF TOURNAMENTS Vancouver CREW 6th Annual Golf Tournament and Silent Auction Fundraiser July 21, 2011, 11:00 AM: Join us at the 6th Annual Vancouver CREW Golf Tournament. The tournament includes 18 holes of golf with a golf cart, the West Coast Classic Buffet dinner, and prizes. Members $225; nonmembers $250. Mayfair Lakes Golf & Country Club. Richmond. Vancouver CREW: 604-601-5107; office@vancouvercrew.org. www. vancouvercrew.org. Business Leaders Golf Tournament August 23, 2011, 12:00 PM: Play golf with the Vancouver business community including senior executives, deal-makers and professionals involved in corporate growth, development, and mergers and acquisitions. A f u ll day eve nt in clu din g

golf, dinner and great prizes! $175 BIV subscribers, ACG or TMA members/$200 for the general public. University Golf Club, 5 185 Universit y Blvd. Vancouver. Aly-Khan Virani: avirani@biv.com, 604-608-5197. https://www.eplyevents.com/ BusinessLeadersGolfTournament.

NETWORKING FUNCTIONS Mature Women’s Network: Prepare for the Unexpected June 25, 2011, 1:00 PM: Invitation to women over 40

years for monthly meeting with talk “Being Prepared for the Unexpected!” by Patricia Barrett of Canadian Red Cross, formerly Guide Guides and Provincial Emergency Services Volunteer. Learn how to get emergency information. $5.00 non-members, $4.00 members at door. 1480 West 7th Avenue (1/2 block east of Granville). Va n c o u v e r. 6 0 4 - 6 8 1 -3 9 8 6 or m_miller77@hotmail.com . http://upcoming.yahoo.com/ event/7210588/BC/Vancouver/ B e i n g - Pre p a re d - fo r- th e Unexpected/Mature-Women39sNetwork/.

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Nominations closing soon! Deadline: June 30th, 2011 After 20 years, Business in Vancouver continues to find 40 outstanding young business professionals worthy of the Forty under 40 distinction each year. Forty under 40 celebrates the depth of business talent in British Columbia, from the rising stars of the corporate world to successful entrepreneurs, and non-profit leaders. Winners are chosen based on such values as achievement, experience, innovation, vision, leadership, and community involvement. By nominating some one for BIV’s Forty under 40, you are supporting and developing today’s young business leaders. Winners of BIV’s Forty under 40 have gone on to shape our city and our province in many different ways!

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Comment

Daily business news at www.biv.com June 21–27, 2011

letters

Surrey business pushing for six-lane Pattullo bridge There has been a great deal of concern over the last six months that there was to be a change in the government (and TransLink) view on the solution to replacing or refurbishing the 74-year-old Pattullo Bridge connecting Surrey with New Westminster. In the fall of 2010, it was learned that the department of transportation had asked TransLink to review its plans for the crossing and investigate whether refurbishing the span would be a satisfactory alternative to building a new bridge. For quite a long time now, it appeared that there was no alternative to replacement being considered, and when the request came to light, there was considerable concern that a less-than-satisfactory conclusion would be decided, i.e. not to replace the bridge. Subsequently, TransLink has announced that the only viable solution would be to replace the bridge; however, there is still some concern that it may opt for a four-lane span rather than the six-lane structure that many agree is the appropriate solution to now and future needs. There is still some discussion as to how the bridge would be paid for so the Surrey Board of Trade can wait until an overall funding position for TransLink is determined before taking a position on that. The Surrey Board of Trade, as Surrey’s business organization, endorses and supports the construction of a new six-lane bridge to replace the old span. Anita Patil Huberman, CEO, Surrey Board of Trade

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Public eye

Sean Holman HST “information campaign” turns into sales job

Tourism industry boss backs 10% HST It’s no secret that the tourism industry in B.C. has struggled with how to respond to the harmonized sales tax (HST). However, in light of the proposed 2% reduction, it is clear to the Tourism Industry Association of BC (TIABC) that the HST will be good for B.C.’s tourism economy in the long run. This was not black or white for us. As soon as the new HST was announced, our association, which represents all of the major tourism industries in B.C., immediately began work, not to oppose the new tax, but to identify and implement ways to mitigate the effects of the tax on our sector. Part of our challenge was that the impacts of the new harmonized tax were different for different parts of tourism both by business type and by location: hotel prices went down, the cost of restaurant meals went up and businesses closer to Alberta, which does not have a provincial sales tax (PST), were particularly sensitive to HST. Like other concerned sectors of the B.C. economy, we noted decreased consumer confidence around the time HST was implemented in B.C. and Ontario in July 2010. This occurred in the early recovery period after a recession. For us, with all the other issues related to the recession like weaker demand and a stronger dollar, it was difficult to embrace HST as originally proposed. That is why we have been relieved to see that domestic consumer confidence has begun to trend in a positive direction. According to TNS Canada, which tracks consumer confidence nationally and regionally, consumer confidence in B.C. and Canada trended upward during the last quarter of 2010 and first quarter 2011. This is a very important indicator and suggests that we have come through the worst of it. We are very pleased that the provincial government has promised to reduce the HST by 2% and is actively championing improvements to a federal visitor rebate program that will encourage foreign buyers to choose Canada and B.C. We now share the growing concern of the broader business community over the uncertainty and considerable financial difficulties that a move back to the old PST/GST system would create for B.C. The provincial government has listened to British Columbians and we are confident it is earnest in its commitments to reduce consumer costs and help impacted sectors like tourism grow into the future. Now is not the time to take a backward course. Ten per cent HST is the way forward for tourism in B.C. Stephen Regan, president and CEO, Tourism Industry Association of BC

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: news@biv.com. We reserve the right to edit for brevity, clarity and legality.

t was supposed to be an “information campaign” not a “persuasion campaign.” At least, that’s how Finance Minister Kevin Falcon initially sold the government’s decision to spend $5 million on harmonized sales tax (HST) advertising. Indeed, the campaign’s first round of commercials, which were put together by top ad agency DDB Canada Inc., seemed to live up to that commitment. For example, one of them showed a stick figure visiting an Internet chat room where people are arguing over the HST. It then prompted viewers to go to a government website – www. HSTinBC.ca – for more information about the tax. Sounds pretty innocuous, right? To be sure, there was some controversy over those ads because that website has been criticized as being biased in favour of the HST. But what happened next was even more controversial. The campaign’s second round of commercials included two that showed how prices had changed because of harmonization. But the comparators they used appeared to favour the HST. The commercials didn’t show how prices for basic cable, bicycles, used clothing or a list of other essentials had gone up because of harmonization. Instead, one showed how there was “more tax” on candy but the “same tax” on soap and “no tax” on milk or apples.

The other showed how lower-income British Columbians are receiving HST rebate cheques now that there’s “more tax” on coffee but the “same tax” on pump prices and transit fares, as well as “less tax” on disposable diapers. So, if you’re keeping score, that means those commercials said six positive things about the HST compared with two sort of negative things – but only if you’re a coffee drinker or candy eater. In addition, the commercials didn’t show that, other than diapers, the only items you’re currently paying less for under the HST are shortterm auto rentals, vehicles costing over $55,000, alcoholic beverages, hotel rooms and residential energy. But who could disagree with cheaper diapers? Interestingly, the ads were set against the backdrop of stick figures driving a baby carriage and shopping for groceries – activities that are arguably more relatable for women than men. That isn’t surprising since polling shows women are less supportive of the HST than men and, therefore, in need of more convincing to back it. For example, according to the latest Ipsos-Reid Corp. survey, just 30% of women favour keeping that tax compared with 41% of men. Indeed, convincing voters to support the HST seems to have been the only purpose of another stick-figure advertisement stating harmonization “reduces bureaucracy and small-business costs.”

But, despite having earlier agreed that the government would also be running ads showing “any upside” of returning to a provincial sales tax (PST) system, Falcon has since said no such commercials will be produced. Speaking exclusively with Public Eye, Falcon stated that’s because “there isn’t any positive of moving back” to the PST. Now, the government is running a new round of commercials promoting its fix to the HST – which will see the tax dropped from 12% to 10% by 2014. Each of them shows stick figures arguing about the HST and the PST before being interrupted by news that “Government Listens, Makes HST Changes.” That news then prompts the stick figures that are arguing in favour of scrapping the tax to make a “hmmm” sound. But the downside details of the promised fix – such as the fact it will take three years to come into full effect and result in the postponement of a promised small-business tax cut – are nowhere to be found in those ads. So, with a little over a month left before the HST referendum ballots are counted, what was sold as the “information campaign” seems to have become a “persuasion campaign.” And it’s quite possible the government will be punished for that apparent flip-flop. After all, when the campaign was launched, Falcon predicted, “If we try to turn this into a sales job, the public reaction would boomerang and we’d get nowhere.” • Sean Holman is editor of the online provincial political news journal Public Eye (www.publiceyeonline.com). editorial@publiceyeonline.com.

President and Interim Publisher: Paul Harris; Editor: Timothy Renshaw; News Features Editor: Baila Lazarus; Editorial Proofreader: Noa Glouberman; Staff Writers: Richard Chu, 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, David Tong; Director Sales and Marketing: Cheryl Carter; Marketing & Events: Paige Millar, Aly-Khan Virani; Display Advertising Sales: Janice Frome, Blair Johnston, Michele MacKenzie, Pia Tomlins, Chris Wilson, BIV Magazines Publisher: Paul Harris; 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; Director, Audience Development: Todd Babick; Subscription Sales Supervisor: Navreet Gill; Circulation Manager: Veera Irani; Subscription Sales: Gerard Veeneman; System Administrator: Les Valan; Accounting: Denise Moffatt; Credit Manager: Yvonne Posch Business 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 604-608-5115 E-mail addresses: subscribe@biv.com, ads@biv.com, news@biv.com, letters@biv.com TWITTER@BIZINVANCOUVER • Www.biv.com • www.bivinteractive.com

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June 21–27, 2011 Business in Vancouver

National Affairs

Mark Milke NDP’s Quebec romance a tawdry affair in the rest of Canada

n the political earthquake that was the recent federal election where one party was virtually annihilated (the Bloc Quebecois) and another is now in search of a purpose (the Liberals), perhaps the biggest winner beyond the Tories was the NDP. Problematically, for a freetrading country built on classic liberal freedoms (read Sir Wilfrid Laurier’s speeches to understand those), the New Democrats are an awkward national fit – a party of 1930sera Saskatchewan populism, 1970s-era interventionist Waffle-ism and a century’s worth of hard-left labour politics imported from Great Britain. The NDP even has a clause in its party’s constitution about “social ownership” of the economy. That’s Orwellian Newspeak for taking control of the commanding heights of the economy. But the party’s antimarket positions and constitutional principles that endorse the same may be the least of the NDP’s problems as it attempts to become a more

national party. It’s more fundamental conundrum will be its position on Quebec, which can be described as special status “plus.” Not that the NDP’s policies are explicitly acknowledged that way. But a scan of Opposition leader Jack Layton’s comments during the recent campaign leaves no doubt that special status for Quebec is exactly what New Democrats endorse. As it is, Quebec already enjoys plenty of existing double standards vis-a-vis the rest of the country and only some of them are constitutionally entrenched. That will be problematic for the federal NDP in Ontario and the West. For starters, consider Layton’s bon mots to Quebec. During the election, he not only promised to “defend” Quebec’s share of 75 seats in Parliament but also to lobby for an increase, this even though Quebec is already over-represented. The “defence” is unnecessary. Quebec is already

constitutionally guaranteed 75 seats. That was an unfortunate compromise in past constitutional negotiations. It has led to the necessity of continually adding seats to Parliament to account for population growth, this as opposed to redistribution of existing seats. Or consider Layton’s promise to extend Quebec’s anti-English-language stance to federal institutions. (How else to describe the attempt to smother one of Canada’s two official languages?) Currently, because of provincial legislation, many Quebec workplaces must function only in French. Layton proposed extending that provincial policy into areas of federal jurisdiction, a sop to the anti-English language sovereigntists and their Bill 101 policies. Add to that the Opposition leader’s position about how he would recognize a Quebec referendum on separation if 50% plus one voted for it. That’s contrary to the Supreme Court’s position, which required a “clear majority.” If

the top court thought 50% plus one vote was a clear enough statement, it would have just said “majority” instead of “clear majority.” The latter implies a higher threshold. Then there is Senate reform. Quebec’s provincial government has already served notice it will fight the federal Conservative government’s proposal to allow provinces to elect senators. Where will the federal NDP end up on that one?

Jack Layton’s comments during the recent campaign leave no doubt that special status for Quebec is what New Democrats endorse All this will not play well in selected sections of the country. For example, on seats, if the constitutional clause didn’t exist, and the existing 308 seats could be redistributed according to population, B.C. would gain five seats, Alberta would add six and Ontario would have an additional 13 seats. Quebec would lose four.

In other words, the two westernmost provinces and Ontario would see their combined clout in Parliament equal 194 seats instead of the 170 they now have (and at Quebec and Atlantic Canada’s expense). That redistribution won’t happen given the constitutional clause in Quebec’s favour. But it does illustrate the folly of such a clause in the first place, or in promising even more seats to Quebec. It would be amusing to watch the NDP leader defend his call for more Quebec seats to voters in under-represented British Columbia or in southern Ontario. In general, the NDP kowtowing to Quebec sovereigntists will offend voters in Ontario and the West. It won’t matter in Alberta where the NDP has only one seat; it will matter to voters in Ontario and B.C. The latter province might

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