Business in Vancouver, July 26-August 1, 2011; issue 1135 by GLACIER MEDIA DIGITAL LIMITED PARTNERSHIP dba BUSINESS IN VANCOUVER

Local. Business. Intelligence. July 26–August 1, 2011 • Issue 1135

BIV.COM $3.00

INSide Ipsos-BIV report: Quarterly business confidence down 3

list

paid

Struggling merchants increasingly turning to daily digital deals 7 Port Coquitlam company’s lengthy rock star client list 11

CEO salaries, boardroom bonuses, stock options: who got what and how much at B.C.’s biggest companies – 15-21

Catalyst Paper’s Lyn Brown and World Wildlife Fund’s Darcy Dobell: New corporate green alliances 14

Dominic Schaefer

Chad Wasilenkoff’s banknote business helped him vault to No. 1 on BIV’s list of top-paid executives – 15

How to increase the visibility of your company’s website 13

full disclosure

Time to bite bullet on better transit for Metro Vancouver 28

Emission control, we have a problem

Foreign workers becoming a permanent human resources solution in B.C.’s hinterland 29

Christopher Krywulak’s North American iQmetrix ambitions 31 Top 100 highest-paid executives in B.C. 16, 18, 20, 21

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richard lam

>Support for a North American cap-and-trade system is eroding, B.C.’s claims to carbon neutrality are “bogus” and the Pacific Carbon Trust is forcing taxpayers to subsidize private-sector initiatives that might not reduce greenhouse gas emissions >SFU prof says PCT is an ineffective policy for achieving B.C.’s environmental objective and should be mothballed

Business in Vancouver special report – 4, 5

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Randy Gue, Lafarge’s director of Resource Recovery and Business Development: incentives offered by the Pacific Carbon Trust helped the company reduce the amount of coal it burns

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package shown. ♦Upgraded package shown. †MSRP is $49,000 for a ♦Upgraded new Lexus 2011 RX 350 Sfx ‘A’. Upgraded RX 350 package shown: $57,100. MSRP include freight and PDI ($1,950). License, insurance, registration (if applicable) and taxes are extra. ‡$3,000 Cash Purchase Incentive may not be combined with special lease and finance rates offered through Lexus Financial Services as part of a low rate interest †MSRP is $49,000 for newfinance Lexus 2011 350rates. Sfx ‘A’. Upgraded RX 350offer package shown: MSRP(if include freight and ($1,950). License, (if applicable) and taxes are jurisdiction.*Lease extra. ‡$3,000 Cash Purchase may not beFinancial combined with on special lease and finance rates offered Lexus Financial Services as part of a low rate interest All advertised leasea$57,100. and rates areRX special Cash Purchase Incentive takes insurance, place at the$57,100. time of delivery. 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Cash Incentive takes place theyour time ofafter delivery. See Lexus dealer forororwhether tax applies before after the application ofspecial Cash Purchase Incentives yourobligation jurisdiction.*Lease and finance offers provided through Financial Services, on approved credit on new Lexus 2011 RX 350 Sfx Cash Purchase offer takes place atare the time ofspecial delivery. See your Lexus dealer whether tax before or the for application Cash Purchase inin,your jurisdiction.*Lease and offers provided through Services, onServices, approved credit on new 2011 RX program. All Incentive advertised lease and finance rates special rates. Cash Purchase Incentive offer takes for place at the time ofapplies delivery. 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D01130 www.jplexus.com www.jplexus.com www.jplexus.com D01130 www.jplexus.com

D01130 D01130

Daily business news at www.biv.com July 26–August 1, 2011

contents Columnists Golden Goals Bob Mackin Money’s Worth Kim Inglis Real Estate Roundup Peter Mitham High-Tech Office Alan Zisman CEO Advantage Nancy MacKay Public Offerings Timothy Renshaw At Large Peter Ladner Labour Climate Geoff Meggs

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Now online AgriMarine harvests first container-raised salmon in China

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Union leaders press premiers to protest pooled pension plan

10 11

High loonie hurts Keg’s U.S. revenue

Bell urges small business leaders to look beyond B.C.’s borders

BIV Business Today Daily Online Edition

U.S. cuts funding to Burnaby biorefinery builder Sprott Shaw campus closures likely to continue Retirees lead country in budgeting: CIBC Canadians’ cross-border trips slide; Americans’ rise Casino operators continue buying spree

Business in Vancouver is published by BIV Media Limited Partnership at 102 East 4th Avenue, Vancouver, BC, V5T 1G2. Telephone‑604-688-2398; fax: 604-688-1963; New subscriptions are $79.95 for one year, $135.00 for two years, $189.00 for three years. Payment required with order. All prices are subject to 12% Harmonized Sales Tax. HST #831496872. Copyright 2010. Articles may not be reprinted without permission from the publisher. Reprint info: Veera Irani 604-608-5115. Publications Mail Agreement No: 40069240. Registration No: 8876. Return undeliverable Canadian addresses to Circulation Department: 102 East 4th Avenue, Vancouver, BC, V5T 1G2. E-mail: subscribe@biv.com US POSTMASTER: Business in Vancouver (USPS 009-409) is published weekly by BIV Media Limited Partnership. Our U.S. subscription rate is $95.95 Canadian per year. Payment required with order. C/O US Agent–Transborder Mail: 4708 Caldwell Rd E., Edgewood, WA 98372-9221. Periodicals postage paid at Puyallup, WA. and at additional mailing offices. US POSTMASTER: Send address changes to Business In Vancouver, c/o Transborder Mail, PO Box 6016, Federal Way, WA 98063-6016 Retail distribution by Globe Distribution Services.

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Full disclosure Faking it: From bogus Louis Vuitton purses to phony Viagara, counterfeit goods are arriving through the port and by mail and making their way into B.C. homes and, Business in Vancouver has discovered, at least one Richmond mall.

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©2011 Audi Canada. Offer ends July 31, 2011 and is subject to change or cancellation without notice. Dealer order/trade may be necessary. Vehicle selection is subject to availability. Visit your dealer for details. ‡Limited time finance offer available through Audi Finance on approved credit on new and unregistered 2011 Audi Q7 models (from 1.9% APR) and new and unregistered 2011 Audi A8, A5 Cabriolet, and TT models (also from 1.9% APR). Finance example: Base MSRP of 2011 Audi Q7 3.0 TDI Tip quattro with automatic transmission, is $58,900 which includes freight and PDI ($1,995). License, insurance, registration, options, and other applicable taxes are extra. Dealer may sell for less. See your dealer for details. If you were to finance a 2011 Audi Q7 3.0 TDI Tip quattro at 1.9% APR for 72 months, you would make payments of $765 per month. $8,888 down payment required. The total finance obligation, then, would be $63,957, and the cost of borrowing would be $3,062. European model Audi Q7 shown with optional equipment that may not be available at the time of purchase. “Audi”, “A5”, “A8”, “TT”, “Q7”, “quattro”, “TDI”, “Vorsprung durch Technik”, and the four rings emblem are registered trademarks of AUDI AG. The Bluetooth word mark and logos are registered trademarks of Bluetooth SIG, Inc. To find out more about Audi, visit your Audi dealer, call 1-800-FOR-AUDI or visit us at www.audi.ca

Business Confidence

July 26–August 1, 2011 Business in Vancouver

IPSOSREid

daily online edition

BUSINESS TODAY Bikes lanes’ impact on business “moderate”

70%

Vancouver’s separated bike lanes have a “moderate” impact on business, according to a study released Thursday – the same day the City of Vancouver released its own study that shows bike use up in the city. The study also coincided with a report outlining recommended improvements for pedestrian safety.

60%

Friday, July 22

Business confidence falters in B.C. Executives less bullish about sales and human resources needs than they were earlier this year Most B.C. business leaders support HST

What’s the likelihood that sales will increase in your business in the next 12 months? 80%

Opposed to HST 30%

50%

Surrey mayor defends gas tax hike

40% 30% 20% 10%

Support HST 70%

By Glen Korstrom

.C. business leaders are less confident about future business success than they have been in years, according to a Business in Vancouver/ Ipsos Reid poll conducted between July 4 and 10. The 170 executives surveyed were more concerned about sales and staff needs than they have been in previous surveys. “The trend is unmistakable,” said Steve Mossop who is Ipsos’ western region president. “Confidence has dropped off considerably since the optimism of the first quarter.” In early 2011, 64% of executives projected that sales would be higher in the next 12 months. That dropped to 48% in the July survey. Conversely, 26% of executives now say that they believe sales will be lower in the next year. That’s double the 13% of executives who felt that way in early 2011. A more striking example of shrinking confidence is that 22% of executives believed that they would need fewer employees in the next year than they currently need. That’s up from 10% in early 2011. Back in 2011’s first quarter, 37% of

2009

2010 Q4

“The other categories that haven’t really dropped off significantly are profits and capital expenditures and space requirements,” Mossop said. “If you look at the macro-economy, that holds true. Companies are managing to cut costs even in the face of flat to slowly increasing sales.” Executives believe their industry’s prospects are similar to the prospects for their businesses.

•it’s good for their business; and •the negative impact of scrapping the tax and returning to a PST-GST combined tax will have much worse lingering effects than simply keeping the HST. Other survey results: •44% of respondents believe the HST will have a positive impact on their business; •22% said keeping the tax will hurt their business; •22% believe scrapping the HST would help business; and •51% said scrapping the harmonized tax would hurt their business. Despite the findings, the fiercest opponents of the tax outnumber the most strident supporters. About 6% of those surveyed said scrapping the HST will have a “very positive impact” on their business. That’s double the 3% of business leaders who said keeping the HST will have a “very positive impact” on their business.

Business supports harmonized sales tax The July 4 to 10 poll also found that 70% of business leaders support the harmonized sales tax (HST) mainly because they believe:

Riot fails to sour business owners on large outdoor gatherings Nearly four-fifths (79%) of the business leaders surveyed in the BIV/ Ipsos poll believe their enterprise was unaffected by the June 15 Stanley Cup

executives anticipated that staffing needs would rise. That’s now shrunk to a mere 24%.

“The impact of the riot was more widespread than maybe you would have thought” – Steve Mossop, president, western region, Ipsos Reid

2011 Q1

2011 Q2

2011 Q3

riot in downtown Vancouver. A few percent of the 170 business leaders surveyed did not know whether their business was affected while the remaining 18% figured that the violence and hooliganism affected their business, either slightly or moderately. “There must have been repercussions on businesses other than simply those which had their windows smashed,” said Mossop. “So the impact of the riot was more widespread than maybe you would have thought. This is a B.C.-wide survey of opinion leaders, so it’s not just the Howe Street or Granville Street corridors. So, for 18% to say that their business is affected, that’s amazing.” The survey also found that: •23% of respondents oppose large outdoor gatherings of people on public streets in Vancouver’s downtown core; and •74% support such gatherings. “Even with all the damage and destruction, business leaders are saying, ‘Don’t put a damper on outdoor gatherings. We strongly support it,’” Mossop said. The margin of error in the poll is plus or minus 7.5%. • gkorstrom@biv.com

Surrey Mayor Dianne Watts is defending the $0.02 per litre gas tax hike that Metro Vancouver mayors say is necessary to build the Evergreen Line. She said the $40 million generated annually by the tax would fund public transit initiatives that would benefit the entire region. Thursday, July 21

BioteQ contracted by Mexican miner Vancouver-based BioteQ Environmental Technologies Inc. (TSX: BQE) has signed an agreement with Mexico’s largest mining company to provide industrial waste treatment. “This basically doubles our business development pipeline of active projects,” said Tanja McQueen, BioteQ’s vicepresident of corporate development. Thursday, July 21

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Daily business news at www.biv.com July 26–August 1, 2011

full disclosure

Carbon controversy building in B.C. Province’s cap-and-trade system, Western Climate Initiative and carbon tax have yet to generate measurable return for taxpayers By Nelson Bennett

North American cap-andtrade system that was supposed to benefit B.C. through increased green economy investment – not to mention the environment, through reduced greenhouse gases – is in danger of evaporating. Over the last several years, the BC Liberal government has invested tax dollars to fund and implement a carbon cap-andtrade system under the Western Climate Initiative (WCI), a homegrown carbon offsets market (the Pacific Carbon Trust) and a carbon tax. But none of the initiatives have generated a measurable return for taxpayers, the business community or the environment. And the Pacific Carbon Trust (PCT) is coming under increasing criticism for funnelling money from the public sector – including cash-strapped school boards – to the private sector, which has been using the money to fund initiatives that, in some cases, result in no net reductions in greenhouse gases. “This is something we’ve got to get rid of,” Mark Jaccard, professor of resource and environmental management at Simon Fraser University, said of the PCT. B.C. is already ahead of the curve when it comes to climate change policies, say some analysts, including Jaccard, thanks to its abundance of hydroelectricity and some of its provincial policies, like the carbon tax. The province could therefore expect to be a net seller of carbon offsets to jurisdictions like California under a cap-and-trade system, said James Tansey, executive director of Sauder Business School’s ISIS research centre and CEO of Offsetters. But the WCI appears to be teetering on the verge of collapse. Arizona announced earlier this year that it will not endorse a cap-and-trade system in 2012, and other states and provinces are dithering. California, B.C. and Quebec have been the most bullish for cap and trade. All three have developed cap-and-trade laws and were poised to start enforcing them January 1, 2012. But just last month, California announced it will delay enforcement of cap and trade until 2013. Quebec, meanwhile, announced earlier this month that it will proceed with cap-and-trade implementation in 2013.

Dominic Schaefer

Lafarge’s Randy Gue: “our emissions are still roughly the same, but the CO2 we’re emitting is new CO2, as opposed to stuff that has been sequestered [coal]”

Whether B.C. will also now reset its implementation date to 2013 from 2012 is unclear. That decision is “pending,” according to the B.C. government’s communications department. B.C. Environment Minister Terry Lake told Business in Vancouver his government is still very much on board with the WCI, but will not implement a cap-andtrade system unilaterally. “We’ve always said without trade there is no cap and trade,” Lake said. “We’re not going to go if California doesn’t go, because we just don’t have a big enough market. I’m still optimistic that the WCI initiative will go forward.” Under cap and trade, 75 to 80 of British Columbia’s largest emitters of greenhouse gases (those producing 25,000 tonnes per year or more) would be required to either cap their emissions or buy credits from those who have. They would not have to pay B.C.’s carbon tax. “We wouldn’t charge them carbon tax and put them under cap and trade,” Lake said. “We wouldn’t double regulate.” Large emitters would receive a kind of pollution quota in the form of permits. Companies that manage to reduce their emissions could sell unused permits to companies that can’t or won’t reduce their emissions. But like any traded commodity, carbon pricing will be subject to price fluctuations and distortions, which is why Jaccard believes B.C. should wait for a few years before jumping on the cap-

and-trade bandwagon. The whole notion behind cap and trade, after all, is to put a price on carbon emissions, and B.C. has already done that with its carbon tax, Jaccard said. The price is currently $25 per tonne ($0.06 per litre at the

“We’re not going to go if California doesn’t go because we just don’t have a big enough market” – Terry Lake, Minister of Environment, Government of B.C.

pump). It will go up to $30 per tonne in 2012. In Ca lifornia, f ina ncia l ly weak companies are expected to be granted some free permits to avoid putting them out of business. This could distort the market. “I’m fine with cap-and-trade systems,” Jaccard said. “But in this particular circumstance, it doesn’t make a lot of sense for us to be early leaders in the cap-andtrade world in North America, because we already have the best emissions pricing policy in North America – the carbon tax.” He added that B.C. also has a good GHG-reduction policy in the form of a zero-emission standard for all new electrical generation. As the largest GHG emitter in B.C., natural gas company Spectra Energy will fall under cap

and trade. It currently pays $10 million to $15 million annually in carbon tax. If it had its druthers, the company would rather just keep paying the carbon tax. “It’s simple,” said Gary Weilinger, Spectra’s vice-president of strategic development and external affairs. “There’s a very level playing field. It’s very difficult to [manipulate], unlike a cap and trade. There’s going to be those who are going to be looking to beat the system.” The problem with relying solely on a carbon tax, however, is that it merely places a premium on fossil fuel consumption, Tansey said. It doesn’t force anyone to reduce emissions; it just makes them pay more. In fact, Statistics Canada figures show gas consumption in B.C. went up, not down, in 2009, despite the carbon tax, which was then $15 per tonne ($0.03 per litre). Cap and trade places real limits on how much greenhouse gas emissions large emitters can produce and rewards those that manage to come in under those caps. Tansey estimated that California will have a carbon offset shortfall worth $150 million to $495 million a year. B.C. companies that are already taking steps to reduce GHG could benefit from that market. Rio Tinto-Alcan, for example, could profit from the $2.5 billion modernization of its aluminum smelter in Kitimat, Lake said. “They would essentially be able to earn a bunch of carbon credits by reducing [its emissions]

so much.” Some B.C. companies are already benefitting, thanks to the PCT, which has bought 783,816 tonnes of CO2 so far, though critics say it’s at the expense of the taxpayer. Lafarge was one of the first companies to participate in the PCT. Its Richmond plant burns coal to create cement. By switching to biomass (wood waste, for example), the company became eligible for PCT funding. Neither Lafarge nor PCT will say how much the company received to switch to an 80-20 fuel mix (80% coal, 20% biomass.) The PCT calculates the total offsets at the Lafarge plant at 189,000 tonnes over three years. That doesn’t mean the plant is reducing its emissions by that much. In fact, there is no net reduction in emissions at the plant. It just means Lafarge is using a fuel source (wood waste) that is considered to have a smaller carbon footprint than coal. “Our emissions are still roughly the same, but the CO2 we’re emitting is new CO2, as opposed to stuff that has been sequestered (coal),” said Randy Gue, Lafarge’s director of Resource Recovery and Business Development. While few would question the value of reducing a company’s reliance on coal (one of dirtiest of fossil fuels), some observers are questioning where the money is coming from. The PCT was set up with a $25 million provincial government investment as a mechanism by which the B.C. government could become carbon neutral. All public-sector organizations in B.C., including cash-strapped school boards, have been forced to either reduce energy consumption and cut their emissions or buy offsets from the PCT. Last year, the public sector paid $18 million to the PCT; the private sector pays less than $250,000 a year. When it was first set up, the PCT had no offsets to sell the private sector, explained the trust’s CEO Scott MacDonald. “We were resistant to begin to attract more private clients in the first couple of years only because the supply wasn’t there to resell them [offsets],” MacDonald said. “That will come with time. Over the next year, we’ll begin to expand to include more private clients.” Recently, the B.C. government announced that, thanks to the PCT, it has become carbon

News

July 26–August 1, 2011 Business in Vancouver

Golden Goals

Bob Mackin Mariners saving green by becoming green; Other sports teams vying to get onside with offsets

itting for the cycle is a rare occurrence for the Seattle Mariners. Adrian Beltre, in 2008, was the fourth and most-recent player to do so. When it comes to recycling at Safeco Field, it’s a hit every game for staff and fans, according to Mariners’ vicepresident of ballpark operations Scott Jenkins. Jenkins estimates 80% of the 5.5 tons of solid waste generated on game days is now recycled, up from just 12% in 2005. The trash room is now the recycling room where food scraps and grass clippings are composted. There is so much of it that the M’s contractor Cedar Grove Compost gave away 8.5-litre bags of Safeco soil to the first 5,000 fans who left the ballpark on April 22, Earth Day. Jenkins and the Mariners are part of the original six of the Green Sports Alliance,

which includes the Vancouver Canucks, WNBA Seattle Storm and the Paul Allenowned Portland Trailblazers, Seattle Seahawks and Seattle Sounders. The group, which has swelled to 40 members, hosts its first summit August 1 to 3 in Portland. “There’s a better way to play, a smarter way to play; it includes the buildings, it includes the players, it includes the fans,” Jenkins said. “It’s not that hard to do. You can do it, and it makes good business sense.” Jenkins said recycling and energy efficiency are the keys to the M’s sustainability program. Safeco includes 17 zerowaste stations with bins for compostables, plastic containers and garbage. Sometimes the beer cups wind up by mistake in the plastics boxes, because fans don’t know they’re produced with corn and

PCT: Scrap trust, prof says neutral. But Jaccard said that assertion is impossible to prove. “Most of the evidence that I’ve seen, and research I’ve been engaged in, suggests that carbon neutrality is bogus,” Jaccard said. He poi nted out t hat companies will plant trees, switch to renewable energy and invest in energy conservation and efficiency without offset incentives, because it often makes economic sense to do so. “We need to verify that this thing would never have occurred otherwise, and

that’s impossible to do,” Jaccard said. While he praises the B.C. government’s carbon tax and zero-emissions targets for new power generation, Jaccard said the PCT should be scrapped. “Not on ly a re t here equity issues with these things, there are also experts who are saying we don’t even think this is an effective way to reduce greenhouse gases. This is not a good policy for achieving your environmental objective.” • nbennett@biv.com

therefore compostable. “We’re defaulting to recycling by not really giving you the option, and we’re fixing it downstream,” Jenkins admitted. The incandescent, out-oftown scoreboard, installed when Safeco opened in 1999, was replaced with an LED version that cuts electricity use by 70% and saves one million kilowatt-hours of energy. The 800-watt incandescent lights in luxury suites were also “relamped” with LED. Not only are the cooler, new lights only 80 watts, but they’re also estimated to last 40,000 hours compared with the 2,000hour incandescents. T he st ad iu m-w ide payoff? A net savings of $1.2 million on energy bills over three seasons. “It has the potential to influence the supply chain,”

Jenkins said. “It can influence our fans and create some environmental awareness in their minds.” Jenkins’ wish list includes collecting rainwater from the retractable roof and using it to water the field. In the meantime, he’s eager to see neighbouring Centur yLink Field Event Center’s 3,750 solar panels go into service this year. They’re expected to generate 830,000 kWh of electricity. Offside offsets For every laudable step toward sustainability at sporting events, there remains enough fodder for skeptics. The Vancouver Whitecaps hi red crews f rom Salem, Oregon-based JB Instant Lawn to truck 90,000 square feet of sod to Empire Field for the July 18 friendly against FA Cup champion

Manchester City. It took 30 hours to unroll and 30 hours to roll up and take away the temporary grass field. Despite the popular push for sustainability, North American sides that play in stadiums with high-quality synthetic turf bow to the wishes of grass-biased touring Europeans. VANOC rescued snowboarding and freestyle skiing at Cypress Mountain for the 2010 Winter Olympics when it ordered 9,400 cubic metres of snow to be transported in 360 truckloads 160 kilometres from Manning Provincial Park. Would it have been kinder to Mother Nature to move competitions to Whistler, which had ample snow? VANOC cut a 2009 deal to buy carbon credits – the modern, green equivalent of the sin-absolving indulgences sold by the Catholic

Church – from sponsor Offsetters. The University of B.C. spinoff marketed souvenir carbon offsets for $25 per tonne, but only enough were sold to spectators to cover 8,059 tonnes of pollution blamed on travel. The National Hockey League estimated the seven-game Stanley Cup Final would use 800,000 gallons of water, from the ice to concessions. So it paid an undisclosed amount to the Bonneville Environmental Foundation to make the series “water neutral.” The transaction was supposed to restore part of the Deschutes River in Oregon. Of course, the games were played in Vancouver and Boston, which have vast shorelines and rivers that could have used some green love. • 2010goldrush@gmail.com twitter.com/bobmackin

Carbon tax is far from revenue neutral B.C. public still not sold on value of greenhouse gas levy

n June 30, the day before B.C.’s carbon tax increased to $25 per tonne ($0.06 per litre of gas), the Pembina Institute issued a press release headlined “British Columbians support the carbon tax: poll.” But that’s an overstatement of the poll’s findings. Asked if they thought the carbon tax and accompanying tax cuts for lower income British Columbians have been negative or positive, only 8% of respondents answered “very positive”; 25% answered

“somewhat positive” ; 41% were neutral; 17% answered “somewhat negative”; and 10% answered “very negative.” The tax will increase to $30 per tonne in 2012. Asked if they thought it should continue to rise by $5 per tonne each year afterward, 51% said no; only 29% said yes. And that’s a problem for those advocating the use of the carbon tax to fund public transit. Given that 40% of greenhouse gas emissions come from cars, the argument makes some sense.

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The problem is that the carbon tax is supposed to be

The carbon tax is supposed to be revenue neutral, but is currently revenue negative revenue neutral, but is currently revenue negative. The B.C. government is spending $162 million more on tax credits to offset the

carbon tax for low-income families than it is taking in through the carbon tax. Even with a rise to $30 per tonne in 2012, Environment Minister Terry Lake said his government expects the tax will still only be revenue neutral. Tapping the carbon tax to fund public transit initiatives would therefore mean the government will either need to hike the carbon tax above $30 per tonne or take the money from some other revenue source. • nbennett@biv.com

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News

Daily business news at www.biv.com July 26–August 1, 2011

Environmental Assessment Office at a glance:

1995 55 $8.75m $30b

the year the EAO was established

AG report slams B.C.’s Environmental Assessment Office Industry’s ability to develop new projects being eroded as fuzzy regulations, limited manpower and zero on-site audits hamper government’s ability to monitor mines, power projects and resorts

AMEBC president and CEO Gavin Dirom: environmental assessments need to be efficient and effective, but government should not bog industry down with too many rules and regulations

Auditor General John Doyle: “everyone assumed because of this tough environmental assessment process … that there was a tight system, and what we’re finding is it’s not as tight as people assumed”

Wilderness Committee policy director Gwen Barlee: “for people who follow the environmental assessment office, this confirms what our worst fears were”

By Joel McKay

Environmentalists say Doyle’s audit is proof the assessment process is “toothless and broken.” “This gives a black eye to projects that have gone through the environmental assessment process,” said Gwen Barlee, a policy director with the Wilderness Committee in Vancouver. The audit could have significant implications for industry, which pays millions of dollars every year to wade through lengthy assessment processes for potential mines and power projects. Interestingly, the province’s mining and energy sectors, often criticized for the impacts their projects have on B.C.’s vast wilderness, have remained quiet since Doyle published his audit. G av i n D i rom , pre s id e nt and CEO of the Association for Mineral Exploration B.C. (AMECBC), wouldn’t comment directly on Doyle’s report but said the industry doesn’t need more rules and regulations that make it difficult for job-creating projects to get off the ground. He did say, however, the province needs to beef up the capacity

and resources within the EAO, which is having a tough time keeping up with companies looking to capitalize on B.C.’s resources amid the commodities boom. “We’re suffering a major permitting crisis … because there’s such a huge surge in the growth of the sector,’’ Dirom said. But the EAO first needs to get its house in order. In addition to EAO certificate commitments not being measurable or enforceable, Doyle said the office is failing to: •ensure t hat env ironmenta l monitoring responsibilities are clearly defined and that compliance and enforcement actions are effective; •evaluate the effectiveness of mitigation measures to ensure projects meet their desired environmental outcomes; and •ensure the public has proper access to monitoring and compliance information. “Everyone assumed because of this tough environmental assessment process and because of the certificates, which were binding,

C’s Environmental Assessment Office (EAO) can’t guarantee the mines, power projects and resorts it approves are keeping the environment clean, according to Auditor General John Doyle. In a report released earlier this month, Doyle pointed out that not only are the conditions the EAO requires companies to comply with so vague they’re basically unenforceable, but also no one from the provincial government actually leaves their office to audit major projects after they’re approved. “Because that doesn’t happen … we can’t offer any assurance to citizens that the adverse effects that could flow from projects are being managed appropriately,” Doyle told Business in Vancouver during a recent interview. The audit is the first of its kind for the EAO, which was established in 1995 to ensure sizable industrial, mine, energy, waste and tourism projects meet the province’s environmental standards.

that there was a tight system, and what we’re finding is it’s not as tight as people assumed,” said Doyle. That news isn’t a surprise to the University of Victoria’s Environmental Law Centre, which published a review of B.C.’s environmental assessment process last November. The review came to many of the same conclusions as the auditor general. “The EAO does not have a field presence, and does not seem to have a viable, proactive compliance and enforcement strategy,” the review said.

“This gives a black eye to projects that have gone through the environmental assessment process” – Gwen Barlee, policy director, Wilderness Committee

It added that project proponents often write their own compliance reports. The review also noted that government staff “are stretched thin by successive staff and budget cuts and do not consider enforcement of EA certificates to be within their mandate.” Barlee said that’s not only bad for the environment, “but it’s bad from a public trust perspective that people in British Columbia are looking to the government … to be providing adequate environmental oversight.”

total number of staff the EAO’s annual budget

the capital investment of projects in the 2010-11 assessment process

219

the number of projects that have undergone or are in the EAO’s assessment process

the number of projects the EAO has refused certification

However, Doyle’s audit focused only on what happens after a certificate is issued. Critics argue the process is flawed from front to back, noting that only one project in 16 years has been refused certification. “I don’t know what to make of that,” said Doyle. Environment Minister Terry Lake had a different response. “I think it’s easy to make that accusation when you look at those numbers, but critics fail to recognize … it’s a very iterative process,” said Lake. “It’s designed to identify concerns, challenges and then those things are modified through the process so a project coming out the end of the process often looks quite different than it did during the process.” Still, the EAO has accepted Doyle’s recommendations. Lake agreed that many of the conditions attached to certificates are “pretty vague.” Lake added that he hopes to set up a system that allows the public to monitor a project’s environmental record after it has been issued a certificate. But he conceded there is a backlog of permit applications throughout B.C.’s resource ministries, and that the EAO might need to hire more people to “make sure all the conditions that are attached to the certificate are in fact being met.” Dirom agreed that project certificates need to be reviewed “efficiently and effectively” to garner public trust, but he hopes the auditor general’s report doesn’t result in a whole new set of regulations that make it even more difficult for industry to build projects in B.C. After all, industry often blames the province’s laborious permitting process for the fact that a decade passed without a major new mine being built in B.C. Said Dirom: “People don’t resonate with a lot of restrictions; they resonate with a goal that needs to be achieved.” • jmckay@biv.com

News

July 26–August 1, 2011 Business in Vancouver

With sales slow, merchants turn to daily deal discounts Initial number crunching key to limiting digital strategy’s risk for shopkeepers “There’s a lot of pressure on staff. This is a chance for them to create retention. But, it’s so far, so good.” Glitches in processing some credit card transactions mean that about 30 of his

By Glen Korstrom

tingy B.C. consumers are pressuring merchants to offer daily deal discounts through Groupon-style ventures or risk losing business to competitors. B.C.’s 1.75% consumer spending growth was the lowest in Canada in 2011’s second quarter compared with 2010, Moneris Solutions reported July 14. However, according to recent surveys, shopkeepers who hop on the hot new marketing trend of offering daily deal discounts can be devastated if they don’t first develop a strategy for how to convert coupon-buyers into long-term customers. ForeSee Results noted in a June survey that 38% of daily deal buyers – the largest share – said they were already loyal to the business offering the deal. A bigger risk than offering regular customers deep discounts is that new customers lured by a daily deal don’t buy anything outside their coupon. “These price discounts are not trivial,” said UBC Sauder School of Business marketing professor Paul Cubbon. “It is not unusual for the deals to be half of the regular price for the consumer. Groupon then typically takes another 50%. That means that if I have something that’s $100 as a selling price, as a retailer, I’m going to get $25.” Cubbon has studied daily deal marketing programs extensively. He said the emerging marketing strategy is a complicated phenomena with no blanket answers for whether it will work for specific retail sectors. He advises those considering offering a daily deal to: •offer small preliminary daily deals before doing a large one; •follow the money by calculating cash flow and profit margins if efforts to cross-sell or up-sell are unsuccessful; and •consider the possible hit to the company’s brand reputation that providing a halfprice product could cause. C:EHKO hair salon owner Farshad Shafiekhani is one of the countless small business owners who have started

Farshad Shafiekhani: his daily deal strategy has resulted in his hair salon being fully booked through August

to offer a daily deal to attract new customers. Sparse walk-in traffic at the Hornby Street salon that he opened last fall prompted him early this year to experiment with a 400-coupon offer using Toronto-based WagJag. Ot her discount dea l sites include DealMate.ca, SwarmJam and Living Social. Competition is growing quickly given that, as of July 20, daily deal aggregator Yipit was tracking 482 daily deal sites. That’s up from about 20 in early 2010 and the number keeps growing. AT & T I n t e r a c t i v e launched a daily deal program on July 18. The next day, American Express announced a partnership with Facebook to launch a daily deal site. Shafiekhani found out that WagJag’s consumer reach was “scattered.” Coupon buyers came from as far away as Merritt and Chilliwack, and they showed little inclination to return without getting a half-price deal. Shafiekhani next offered 1,000 coupons on Groupon, June 2, and the offer sold out within 24 hours, largely to people who live in Vancouver, he said. Coupon buyers paid $39 for: •a $60 haircut; •a $22 scalp massage; and •two full-size hair-care products worth $23. Shafiekhani gets to pocket only half of the $39. So it’s imperative that his staff up-sell his customers. “There’s the potential for all those customers to get colour. So, we did a 25% discount on colour services only for Groupon customers,” he said.

Groupon coupon purchases failed to complete. Shafiekhani will get his share of coupon proceeds in three payments: •after one week; •after 30 days; and

•after 60 days. Thus far, approximately 300 buyers have redeemed their coupons. The coupons are good for one year so it will be a long time until Shafiekhani knows how many coupons won’t be redeemed. His salon is booked solid until September, but he is already planning his next offer – this time with a Groupon subsidiary called Groupon Now. It uses demographics, past buying behaviour and GPS technology to more carefully focus the coupon offer at likely repeat clients. Buyers have a much shorter amount of time to use their

coupons, and Shafiekhani has more freedom to include restrictions, such as Mondaysonly, on the coupons. The daily deal marketing strategy has been successful enough that he has found joint-venture partners who want to open C:EHKO salons in Toronto and Calgary. Shafiekhani will hold a 51% stake in those salons, which he expects to be in operation by next summer. He’s also negotiating with a partner about potentially opening a salon on Cambie Street, which would be his second in Vancouver. • gkorstrom@biv.com

Finance

Daily business news at www.biv.com July 26–August 1, 2011

BY THE NUMBERS

Losses are shown in brackets. Graph information by Stockwatch.

NovaGold Resources Inc. (TSX:NG)

N/A Revenue: $919k 6 months 2011

Gold gains: Although NovaGold has yet to generate revenue from mining operations, the exploration company saw its revenue increase to $919k in the first six months of 2011 thanks to interest income. During the second quarter, the company continued to work on pre-feasibility and feasibility Earnings per share studies for its Galore Creek and Donlin Gold projecs. 6 months 2011 NovaGold finished the quarter with $112m in cash.

$20

($78m) ($0.25) Net income 6 months 2011

$15 $10 $5 $0

Platinum Group Metals Ltd. (TSX:PTM) Precious play: The Vancouver-based platinum explorer received consent from the South African government for the first-phase development of its Project 1 mine in March. The $100 million phase one construction program will access ore and commence sometime this month. Elsewhere, the Earnings per share company spent $1.7m on exploration during the period. 9 months 2011 Platinum finished the third quarter with $71.4m in cash.

N/A ($10.4m) ($0.06) Revenue: $0m 9 months 2011

Net income 9 months 2011

$3.00 $2.50 $2.00 $1.50 $1.00

Destiny Media Technologies (TSX:DSY) Figures in U.S. dollars

▲7%

$261k

Revenue: $3m 9 months 2011

Net income 9 months 2011

Financial notes: The Music-distribution software developer saw record revenue of $1.2m in the third quarter of 2011. Destiny also settled three long-standing legal disputes and was awarded a $600k lump sum settlement, which was not reflected in third quarter earnings. The company expects Earnings per share its legal costs to diminish significantly in future quarters. 9 months 2011 Destiny finished the quarter with $491k in cash.

$0.01

$0.60 $0.40 $0.20 $0.00

Money’s Worth

Kim Inglis Time to invest strong Canadian dollars in good quality U.S. equities

t’s a given that the U.S. is in for some difficult times, but that doesn’t mean Canadian investors should steer clear of U.S. equities. Rather, Canadians should consider the opposite because there are well-managed and attractively priced American companies with good futures. For the last decade, Canadians have had a substantial home-country bias. Rightfully so, as Canadian equities have outperformed their U.S. equity counterparts by a considerable margin. According to Mackenzie Financial, the S&P 500 composite total return index returned a compounded -2.1% in Canadian dollar terms versus the S&P/TSX total return index at 7.9% over the last 10 years (ending May 31, 2011). However, a portfolio composed solely of Canadian securities can

open the door to significant volatility. Nearly 80% of the S&P/TSX 60 is made up of three sectors: financials, energy and materials. As we’ve witnessed so far in 2011, a single blow to just one of those sectors can have a tremendous impact on Canadian markets. By diversifying into U.S. equities, investors can guard against sector concentration risk and increase their defensive positioning. They can gain access to sectors, such as consumer products and health care, which are otherwise under-represented in Canada. According to data compiled by iShares, the U.S. represents 53.0% of the global consumer staples market, while Canada is a mere 1.1%. Similarly, the U.S. represents 62.0% of the global health-care sector versus 0.7% for Canada. The va luation of t he U.S.

markets also presents a compelling story. Mackenzie Financial calculates the forward price-earnings ratio of the S&P 500 at just 12.8, which is one of its lowest levels in the last 26 years. Meanwhile, profits are forecast to increase by 18% in 2011. Add to that the strength of the Canadian dollar, and U.S. equities look even more appealing. Opponents point to the current financial state of affairs in the U.S. as a source of potential problems. While inflationary issues and debtservicing problems are undoubtedly coming down the pipe, solid companies will prevail. An investor needs to concentrate on finding the value. There are many defensive, dividend-producing, globally focused U.S. equities that will continue to perform, regardless of what is happening at home. Global focus is the key.

Consider Procter & Gamble (NYSE: PG). The company’s products currently reach approximately 61% of the world’s households, and it aims to expand that to 70% by 2015. It also has a large market

Add to that the strength of the Canadian dollar, and U.S. equities look even more appealing capitalization, a good credit rating, and solid earnings growth. Another is McDonald’s (NYSE: MCD), a high quality, stable company with large market capitalization and a good credit rating. The company is already in 100 countries. McDonalds’ knowledge of growing global markets, coupled

with an expanding middle class in China, India and Latin America, bodes well for its future. Now is the time for patient, long-range investors to diversify portfolios by adding defensive, high-quality U.S. equities. Valuations are good and the Canadian dollar is still strong. American business leaders have always proved themselves to be an incredibly inventive and resilient group. They’ve survived greater challenges than the present and have come out on top. I suspect this era will be no different; it’s just a matter of time. • Kim Inglis (www.reynoldsinglis. ca) is an investment adviser with Canaccord Wealth Management, a division of Canaccord Genuity Corp. The views in this column are solely those of the author.

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Issue: September 13, 2011 Sponsored by:

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finance

July 26–August 1, 2011 Business in Vancouver

Walter Energy shareholder urges the company to sell Proposed sale of one of B.C.’s largest coal producers comes less than a month after its boss resigns

Walter Energy operates three coal mines in B.C. and has an office in Vancouver By Joel McKay

ew light was shed on the direction of one of B.C.’s largest coal producers last week when one of its key shareholders urged the company to put itself up for sale. O n Ju ly 17, Wa lter E nerg y (NYSE:WLT), which operates three coal mines in northeastern B.C., received a letter from Audley Capital Advisors LLP imploring the coal company to sell itself to generate a return for shareholders. The letter, addressed to Walter Energy chairman Michael Tokarz, was sent less than a month after Keith Calder, the

company’s Vancouver-based CEO, resigned over “differences of opinion concerning management philosophy.” Calder’s departure, scheduled for July 31, comes just four months after he landed the job following a $3.3 billion buy out of his previous company, Western Coal (see “Walter Energy’s Vancouver-based CEO bows out amid takeover speculation” – issue 1134; July 19 to 25). Some analysts speculated the executive shift might be related to a potential sale of the company, though there’s no evidence to back that up. Either way, Davenport & Co. LLC analyst Christopher Haberlin believes Calder’s departure increases

the possibility that Walter could be acquired. He pointed out that the company is a pure play steel-making coal producer, which means that it would be an attractive asset for a steel-maker. “Without a CEO the company is … in somewhat of a disarray, and it creates the opportunity for a potential buyer to go directly to the board and say, ‘Here is our offer,’” said Haberlin. “If the board does not want to do it, something could be taken directly to shareholders in a hostile takeover.” London-based Audley Capital, which owns 1.5% of Walter and played a key role facilitating its merger with Western Coal, took the same stance. “We are concerned that the company now lacks the strong leadership to deliver confidently on its plans,” wrote Audley managing partner Julian Treger. Audley further pointed out that the company’s lack of direction hindered its share value prior to its acquisition of Western Coal, noting that its multiple rating is at a discount to domestic and global peers. The investment company also said it has had contact with a “number of parties” that have indicated interest in buying the company. On July 19, Walter issued a press release acknowledging receipt of the Audley letter, adding that its share price had appreciated 310% since January 1, 2007. Neil Winkelmann, Walter’s Vancouver-based president of Canadian and European operations, wouldn’t confirm or deny rumours about a potential sale of the company. Audley has asked for a response to its letter by August 5. • jmckay@biv.com

BCAA Road Safety Foundation Golf Classic 2011

B.C. employment rises Province’s jobless rate down 0.3% in June

▲11.9% ▲2.2% ▲0.9% ▼3.8% Employment Employment Employment Employment (North (Mainland/ (Thompson- (Vancouver Coast/ Southwest) Okanagan) Island/ Nechako) Coast) B.C.’s jobless rate fell 0.3 percentage points to 7.3% (seasonally adjusted) in June. The province’s employment rate was down 0.3 percentage points to 7.3% because of a contraction in the size of the labour force (-0.7%) as opposed to improved labour market conditions. At the regional level, jobless rates (unadjusted three-month moving average) ranged from 4.0% in Northeast to 8.3% in Kootenay. North Coast/Nechako posted a second straight double-digit increase in employment in June.

B.C. building permits up 4.3% in May The value of building permits issued by municipalities in B.C. climbed 4.3% (seasonally adjusted) in May. All of the increase registered in May was due to a surge in intentions in the non-residential sector (45.8%). The value of residential permits slumped 14.4% during the month.

-BC Stats Infoline, Issue 11-27, July 8

Sales at B.C. food and drink establishments rise Sales at B.C.’s food service and drinking places advanced 0.8% (seasonally adjusted) in April. Nationally, industry revenues inched 0.6% higher in April wiht much of hte growth due to an increase (0.7%) in sales by limited-service restaurants.

-BC Stats Infoline, Issue 11-27, July 8

B.C. non-voters “too busy” to vote in federal election Nearly one-quarter (24%) of eligible British Columbians who did not cast a ballot in the most recent federal election reported that they were “too busy” to vote. Another 23% of eligible non-voters said they were simply “not interested”. Roughly one-eighth (12%) of those who did not vote were out of town.

-BC Stats Infoline, Issue 11-27, July 8

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aon hewiTT - aon benfield - aon reed sTenhouse

Left to Right: Colin MacKinnon, SVP & CFO, BCAA; Chris Fawcus, President & CEO, Aon Reed Stenhouse; Bob McLean, President & CEO, Aon Benfield; Chris Kautzky, Senior Investment Consultant, Aon Hewitt; Allan Lamb, President & COO, BCAA Road Safety Foundation

The BCAA Road Safety Foundation wishes to sincerely thank the sponsors, donors and 144 dedicated golfers for their support of, and participation in the 11th Annual Golf Classic at Morgan Creek Golf Club in Surrey. The event raised $72,000 to help fund effective community-oriented road safety initiatives such as child passenger safety, school safety programs, young drivers and older drivers resources and workshops, impaired driving education and to address issues faced by workers at the side of the road and who drive as part of their job. The BCAA Road Safety Foundation is a non-profit registered charity working with families, communities and business partners to reduce the number and severity of crashes and injuries on B.C.’s roads. For more information, visit www.bcaaroadsafety.com.

Real estate

Daily business news at www.biv.com July 26–August 1, 2011

Real estate roundup

Peter Mitham Golden Ears business park development set to expand as regional demand grows; Vancouver Island prices proving to be a top attraction for vacation homebuyers Golden opportunity Pitt Meadows councillors have approved construction of six new buildings at Golden Ears Business Centre, paving the way for Onni Group of Companies to proceed with construction on 34 of the park’s 94 acres. The project’s first phase, a 75,000-square-foot multi-tenant building, opened earlier this year and now has two tenants. Work has started on a second building of 100,000 square feet, which is set to be complete by spring 2012. Onni expects the park to have 1.6 million square feet when its complete, with 60 acres allocated to build-tosuit projects. The buildings Pitt Meadows approved at the beginning of July range from approximately 26,700 to 124,300 square feet. Units will be between 1,750 and 4,900 square feet, plus mezzanines, and will serve small to mid-sized users that can’t get into existing parks such as Maple Meadows and Port Kells. Space runs at $5.25 a square foot. That’s much lower than competing parks with tighter vacancies and higher land costs. Comparable space in Port Kells, for example, could run to $10 a square foot. The project also fits a local need. CB Richard Ellis reports that industrial vacancies in the Maple Ridge/Pitt Meadows area are 4.9%, slightly above the 4.6% regional average. But, thanks to tight supply, the availability of space in Maple

plans for residential development. Open houses were held in May and June, and the new plans received a positive response, in part because parkland on 300 acres of the site would be preserved. While residential development was one option for making over the former industrial site, Bamberton development manager

“We’re looking to tailoring the buildings to what clients’ needs are” Meadow lands: Onni is proceeding with construction of a second building at its Golden Ears Business Centre in Pitt Meadows as demand for well-located industrial space increases

Ridge/Pitt Meadows is trending below the regional average. Golden Ears will provide new supply as demand allows, with initial proposals on build-to-suit space already issued. “We’re looking to tailoring the buildings to what clients’ needs are,” said Chris MacCauley, associate vice-president with Colliers International, who is working on the listing. Concrete opportunity Bamberton Properties LLP and Three Point Properties Ltd. are moving steadily toward a development vision for the Bamberton lands north of Victoria. The 1,550-acre property was formerly home to a plant that supplied cement to projects as diverse

as the Lions Gate Bridge and Kitimat aluminum plant. The plant closed in 1982, and the heavily contaminated site became the focus of redevelopment efforts. David Butterfield and what would become the Trust for Sustainable Development worked on plans for the site between 1989 and 1996, but the initiative lost provincial government support. Three Point acquired the site in 2005 and completed remediation work and filed a rezoning application for a 3,500-unit residential development on the site in June 2007. Cowichan Valley Regional District wanted to see more industrial and job space on the site, however, and encouraged Bamberton Properties to defer its

– Chris MacCauley, associate vice-president, Colliers International

Ross Tennant said the insistence on job space is true to Bamberton’s history. “When Bamberton was first established, it was based on its ability to employ people,” he said, “and that led to the residential and schools and recreation centres coming online later.” Approximately 60 acres of the site is currently in industrial use, but Tennant expects that reservations from new users for space at the site could be taken in summer 2012, pending approvals from the regional district. “We’ve had quite a few expressions of interest so far,” he said. Waterfront opportunity Vancouver Island is the top destination for vacation homebuyers,

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according to a Vancouver firm that has done its share of marketing new projects on the island. Research in 2011’s first quarter by Project Marketing found that vacation homebuyers looked to Vancouver Island first. RareEarth previously handled marketing of Black Rock Oceanfront Resort in Ucluelet, Victoria’s boutique Oswego Hotel and the Whittakers development in Pender Harbour (as well as several Okanagan properties). The survey contacted 1,000 people in B.C., Alberta and Saskatchewan, 61% of whom preferred Vancouver Island over the Okanagan (56%) and the U.S. (47%). The research supports rareEarth’s efforts to market Comox Bay Marina and Residences, a $30 million project Howard Land Group is developing on the Comox waterfront. Howard Land also built the Oswego Hotel. The appeal of Vancouver Island real estate is also linked to price. Prices for the Comox project start in the mid-$200,000s, while the average for island real estate is approximately $320,505. Further south in Victoria, the Hudson – a Townline Group redevelopment of the former Hudson Bay department store – has seen sales boom thanks to price reductions of 30% in early July. Twelve units have sold this month, bringing to 89 the number sold in the 151-unit development. • pmitham@telus.net

Technology

July 26–August 1, 2011 Business in Vancouver

Sound business plan proving to be a profitable arrangement for PoCo firm Port Coquitlam’s Radial Engineering boasts a client list that ranges from ACDC to the Rolling Stones By Nelson Bennett

hen you’re listening to guitar heroes like Eric Clapton or Jeff Beck live in concert, the guitar sound you hear isn’t coming from the amplifiers on stage. Those amps mostly provide the stage sound for the musicians. What the audience hears is the guitar amplified through the PA system. Critical to getting Clapton’s guitar signal from stage to the soundboard to the speakers without losing sound quality are electronic components like DI (direct input) boxes, signal splitters and instrument switches. And one of the undisputed leaders in that space is Port Coquitlam-headquartered Radial Engineering. When Steve Vai joined the Experience Hendrix tour in May, he used a Radial switch called Switchbone to toggle between two different amps he used on stage. “Jeff Beck, Santana, Clapton, Steve Vai, [Joe] Satriani – all these guys are using our [components] to take the guitar signal and distribute it around to other amplifiers,” said Radial Engineering founder and CEO Peter Janis. Operating out of a 25,000-squarefoot manufacturing plant in Port Coquitlam, Radial employs a staff of

Dominic Schaefer

Power chords: Peter Janis never got famous as a guitar player, but the electronics he makes for other guitar players did

50, who make a wide range of music equipment and components. In addition to Radial DI boxes, switches, splitters and re-amps, the company makes an array of guitar distortion and effects pedals through its Tonebone division. Randy Bachman and Daryl Stuermer (Genesis, Phil Collins) use Radial tube distortion pedals, and James Taylor and Marty Stewart use Radial acoustic guitar preamps. In January, Radial will launch a new product – a DI box optimized for multiple guitars onstage. A third – and rapidly growing – division of Radial Engineering is Primacoustic, which makes

sound deadening for recording studios and auditoriums. Primacoustic provided the acoustic materials for CTV and NBC in the international broadcast centre during the 2010 Winter Olympics, “We did Electronic Arts, we did Tommy Lee’s studio, we’ve done churches of all sizes,” Janis added. But Radial’s DI boxes and switches are the company’s bread and butter. While the number of competitors making guitar effects pedals is legion, Janis said his company has few rivals when it comes to the DI boxes and switches. Tom Lee Music vice-president Graham Blank agrees. Tom Lee

carries a variety of Radial Engineering components and cables as well as Tonebone pedals. “Any of their products is just exceptional audio quality,” he said. “Many companies have been focused on the race to the bottom – getting the cheapest product at the minimum quality. And [Janis is] an absolute fanatic for audio quality.” Originally from Quebec, Janis is a musician who managed to turn frustration into profit when, in the early 1980s, he realized there was a need for a device that would allow guitar players to switch seamlessly between amplifiers to achieve different sounds. “I had three guitar amps onstage and switching between amps just wasn’t done,” he said. “But I knew what I wanted to do, but couldn’t make it happen, so we started to build things.” Disco came along, the first in a series of blows that helped kill Canada’s once thriving live music scene, and Janis was forced to get a job. He ended up working in a music store and making his own electronics. He then worked for Fender as product director for the Canadian market before launching his own company in 1992. Radial is now approaching a couple of important milestones. “We’re going to be breaking $10 million in sales this year,” Janis said.

“So it’s coming up to a milestone – not only 20 years in business, but $10 million in sales.” Radial outsources many of the components that go into its products, but does all the design, assembly and testing at its Port Coquitlam manufacturing plant. Janis said the company – which had $8.2 million in sales last year – was virtually untouched by the recession.

“Any of their products is just exceptional audio quality” – Graham Blank, vice-president, Tom Lee Music

“The bulk of our business is the professional entertaining industry, which is kind of cool because it’s somewhat of a recession-proof industry,” Janis said. “When things are down, U2 doesn’t say the economy’s down [so] we’re not going to take a drummer. “We shipped over 50,000 electronic products last year. We’re currently up this year 20% [in gross sales revenue. Last year we were up 15%, the year before we were up 5% while the rest of the economy was way down.” • nbennett@biv.com

High-Tech Office

Alan Zisman On the road with your favourite smartphone

pple garners lots of publicity releasing a new version of its iPhone more or less once a year. Smartphones running Google’s Android, on the other hand, seem to just pop up, with new models, from Motorola, Samsung, HTC and others. Despite the lower profile, Android is now the choice of half of U.S. “recent smartphone acquirers” compared with 25% purchasing an iPhone and 15% getting a BlackBerry, according to Nielsen data released in late April. I can’t find comparable Canadian data. In May, Virgin Mobile Canada loaned me one of its current Android models,

an HTC Incredible S ($49 on a three-year contract; $499 with no plan – also available from Bell). The Incredible S has a fast 1.1 Gigahertz processor a highresolution (eight megapixel) camera and a bright fourinch (480x800 pixels) touchscreen display. Virgin’s includes four gigabytes of internal storage along with an eight-gigabyte memory card – the phone supports memory cards up to 32 gigabytes. And it can be used as a Wi-Fi hotspot, letting users share its data connection with a notebook or tablet. HTC produced Canada’s first Android phone; the Incredible S is an attractively

designed, state-of-the-art model. I had to send it back to Virgin before I went travelling, but if it had been mine, I wouldn’t have taken it with me. Too many travellers have been stung with roaming charges. Even if they know enough to try to limit phone calls, it’s too easy to have your smartphone rack up data charges downloading email (or Facebook or what have you) in the background. Apple makes it easy to turn off roaming on its devices, but if a similar option is included on Android phones, it’s buried more deeply. It gets worse. The Organisation for Economic Cooperation and Development

in May reported that Canadians paid, on average, $24.61 for a megabyte of roaming data, the highest of any country surveyed. It would be nice if you could simply pop out your phone’s Canadian SIM card, replacing it with one you bought at your destination – but in most cases that won’t work, even though all the Canadian providers now use the same network technologies as most other countries. The problem: most phones are locked to one carrier. Some manufacturers or independent vendors sell unlocked phones usable with a wide range of Canadian and international mobile providers – but be prepared to pay full price for the device, much higher than you’d pay by locking yourself into a multiyear contract with a carrier. Apple sells an unlocked, unsubsidized iPhone 4 for $659; Virgin offers it (locked) for

$159 with a three-year contract (or the same $659 price with no contract). Not only do you pay full price for an unlocked phone, you’ll end up paying the same rates to a mobile carrier as another customer whose contract includes the cost of a subsidized phone.

Too many travellers have been stung with roaming charges Note that paying full price for a phone from a carrier may get you a locked phone. For instance, both Virgin’s no-contract $499 HTC Incredible and $659 iPhone 4 are locked to its network. Telus has recently offered its customers a $50 option of unlocking its phones; Rogers’ customers can do the same thing, but only at the end of a contract. (Google “unlock

phone Vancouver” for a variety of other options.) HTC, however, loaned me an unlocked Incredible S. Travelling in Italy, I bought a EU20 SIM card from Vodafone, good for a month’s voice calling and SMS messaging. No roaming charges, no fuss. No data service, however, so I could only use the Incredible S’ very good web browser, email or social networking when connected to a Wi-Fi network. Google Maps needed a data connection to download maps, which made it unusable on the phone when I wanted to use it, though other alternatives exist and a recent Google Maps update allows downloading maps beforehand. • Alan Zisman (www.zisman. ca) is a Vancouver educator and computer specialist. His column appears weekly.

Small business daily online edition

BUSINESS TODAY Two Triple Flip stores coming to Vancouver Calgary-based pre-teen activewear retailer Triple Flip is opening two Metro Vancouver stores this summer. The six-store chain plans to open stores at Park Royal July 23 and the Shops at Morgan Crossing in mid-August. Thursday, July 21

More Sprott-Shaw campuses to close Sprott-Shaw Community College (SSCC), which recently announced it would close its Duncan, Vernon and Courtenay campuses, plans further campus closures. Toby Chu, CEO of CIBT Education Group Inc. (TSX:MBA), said one more campus will likely close, but did not say which one. Service Canada stopped issuing student loans to Sprott-Shaw students because of high default rates. Wednesday, July 20

Deficit for 2010-11 82% less than first forecast B.C.’s $309 million deficit for the 2010-11 fiscal year is 82% less than the $1.7 billion former Finance Minister Colin Hansen forecast last year. Current Finance Minister Kevin Falcon said lower spending and stronger economic growth boosted Victoria’s revenue in the year ending March 31, but warned the deficit will balloon if the HST is scrapped. Tuesday, July 19

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Daily business news at www.biv.com July 26–August 1, 2011

Businesses still face border barriers Fees and red tape continue to frustrate small-business owners on both sides of the Canada-U.S. border By Nelson Bennett

f you’re a small-business owner who exports or imports goods to or from the U.S., you may have wondered: Whatever happened to the North American Free Trade Agreement? NAFTA, after all, was supposed to remove trade barriers between the two counties. And for big many businesses, it may well be doing that. But in a series of interviews with eight Canadian and four American small-business owners, the Canadian Federation of Independent Business (CFIB) concluded that many are finding it costly and frustrating doing business on either side of the 49th parallel. Megan Halprin, CFO of Vancouver-based Snowflake Trading Corp. Ltd., is one of the business owners surveyed for the CFIB’s Border Barriers study. “It is virtually getting to be impossible to do business transborder with our product,” Halprin said. The study was a followup to a 2008 survey of 6,000 CFIB members, 25% of whom export to the U.S. and 50% of whom import from the U.S. Corinne Pohlmann, CFIB’s vice-president of national affairs, said governments often don’t consider the impacts of regulations on small business when drafting agreements like NAFTA. Some of the bureaucratic requirements businesses still face verge on the absurd. One American equipment installer, for example, is required under Ontario law to buy a special brand of workboot that is identical to the ones he uses in the U.S., except for a Canadian safety certification label, before he can come into Ontario to install his equipment. Halprin said the red tape and

Megan Halprin says fees and red tape at the border are making it prohibitive for her company to export products to the U.S.

additional fees she faces selling some products into the U.S. have become so onerous that she has had to say no to some customers wanting to place small orders. Snowflake has four retail outlets in Canada. The company sells clothing accessories and outerwear. It also has an import-export business. Snowf lake makes fur jackets and accessories – scarves, hats, earmuffs, etc. – and sells them through its own four retail outlets, as well as to other retailers in Canada and the U.S. The company buys the furs at auction, has its garments made in China, then shipped to Canada. When the company imports the finished product from China, it pays import duties and the HST. When those same items are exported to the U.S., the company is ostensibly allowed to claim a refund on the duties and HST. In reality, Halprin’s company has to forego the refunds because the bureaucracy to claim them is simply too time consuming. In addition, it is paying more and more to U.S. Fish and Wildlife Services for inspections. In the past, the agency would only

do spot checks on imports. About t wo ye a rs a go, t he agency began inspecting every single shipment, no matter how small, and now charges more than $200 for each inspection. Sometimes customers will receive a shipment then ask for a few more items to be sent – “repeats,” Halprin calls them. But she has to turn those orders down. “If you’re sending a $5,000 or $10,000 or $15,000 order to a customer, you can spend an extra $250 in administration fees and you can build that into the price,” Halprin said. “What if the customer says, ‘I’m doing so well with that one style of scarf, I want to order six more’? Now they’re ordering $300 worth of scarves. How can you pay $250 for a $300 order? You can’t.” Tony Barrazuol, ow ner of Eclipse Awards, used to have problems exporting product to the U.S. too, until about three years ago, when he got a NAFTA certificate. “That helps and that’s something we didn’t know about for years,” he said. Barrazuol’s company makes recognition awards made of glass, crystal and wood. About 75% of his business is in the U.S. His shipments sometimes got held up at the border for inspection, until he worked through a customs broker to get a NAFTA certificate, which itemizes everything an exporter ships across the border with a NAFTA code. “That cleared up a lot of issues,” he said. “It’s been smooth sailing since.” Sometimes it’s not costs but the lack of clear information that is a problem, and it’s a problem on both sides of the border. One Canadian business owner surveyed said it can take three days just to get a live human being on the phone at Canada Border

Services Agency. Pohlmann said there are some positive signs that Ottawa and Washington are aware of some of the problems with cross-border trade and are in discussion on a new shared security perimeter that she hopes will address some of CFIB’s concerns.

“It’s about improving the customer service – being able to have a place people can go and get helpful service and guidance. It’s about making sure that when you build trade facilitation programs … you don’t only think about the very high-volume guys – Corinne Pohlmann, vice-president, national affairs, CFIB

CFIB will be lobbying the federal government to ensure it has some of the roadblocks to small business in mind when it sits down with the U.S. government to draft any new regulations. A big improvement would simply be providing better contact information and customer service for business that must navigate several layers of bureaucracy on either side of the border, Pohlmann said. “It’s about improving the customer service – being able to have a place people can go and get helpful service and guidance,” she said. “It’s about making sure that when you build trade facilitation programs in the future you don’t only think about the very high volume guys, you also think about the other types of businesses out there that are regular shippers.” • nbennett@biv.com

Attention Subscribers Delivery Notice Due to B.C. Day, August 1, the next issue of Business in Vancouver may be delivered a little later than usual.

Business tool kit

July 26–August 1, 2011 Business in Vancouver

BizPharmacy

Cyri Jones and Ivan Surjanovic How to increase your website’s visibility Symptom My clients often tell me that they can’t find me when searching on Google or other search engines. Why are some websites showing on top of search engines while others are “buried” on the 100-plus position on Google? How can my website improve? I heard there is a medication called “SEO.” Would you recommend it to treat my website condition? Recommended medications Ivan: This is a typical case of “website invisibilitus.” Many of our business patients suffer from various forms of invisibilitus. While I am afraid that there is not one magic solution, the good news is that there is a simple six-step process that is relatively easy to follow. Cyri: Yes. As usual, the first step is diagnosis – understanding what really is going on with your website. For this purpose, you may also want to use some of the tools described in our earlier columns (check out www.bizpharmacy.com). Start with checking if your website has ever been indexed by Google. Enter your URL in the Google search box and see if Google has listed your website at all. If not, you may want to go to the google.com/ addurl page and submit your site to Google. If Google does know about your site, check your site’s “search engine saturation”; in other words, how many pages of your site have been indexed by search engines (tools.seobook.com/general/sesat/). In addition, check how many sites point toward your site. This is called “link popularity” (www.linkpopularity.com). Ivan: The above described diagnostic steps will help you understand what happened and where to put a emphasis in the following steps. The second step is the keyword or phrase decision. Learn which keywords people use when searching the Internet by using Google’s own tool: adwords.google.com/select/ KeywordToolExternal. Decide what would be the most appropriate phrase for your site. Make sure the phrase is targeted. Don’t go too broad. For example, if you’re promoting a hotel, choose “hotel Vancouver” or even “ hotel in

Vancouver downtown” rather than just “hotel.” Cyri: The third step we recommend is SEO (search engine optimization). Having chosen your most important phrase, be sure to put it in relevant places on your home page, including the code. This is how you will tell Google what your website is really about. Repetition is the key here. In other words, use the same or similar phrase in your website URL (if possible), as a page title (“title tag”), in the “description meta tag” and in the “keyword description.” Also, be sure to use the same phrase as part of your copy on the home page, including

Make sure your website is “well-connected” with other websites the headings and sub-headings. You may need help from your designer to alter the code and content of your site as described above. Ivan: The fourth step is adding the content. Add as much content on your site as possible, as long as it is relevant and related to your business. Then optimize all your other website pages by repeating steps two and three as described above. Cyri: The fifth step is linking. Make sure your website is “well-connected” with other websites. This is how you get additional traffic and additional points in Google’s ranking. You can add free or paid links to your website by finding appropriate business directories on the Internet. You can just search for them online by entering “business directories” or “free business directories” in Google. Or you can submit your link to the Yahoo directory (ecom. yahoo.com/dir/submit/intro/) – one of the first and most important directories on the Internet. One additional linking strategy is to ask your business associates or strategic partners to place your website link on their website. This can also be done in a reciprocal way, and it is usually well worth the effort. Ivan: The sixth step is promotion. Make sure to promote your site by adding sponsored ads on Google, by

building your own presence in social media (Facebook, Twitter), by creating your own e-newsletter or by promoting your site off-line (on your vehicles, promotional gifts, etc.). Prognosis Cyri: In most cases, these steps should be enough to help you overcome you site’s invisibilitus. If, however, you want to be sure that you’re not missing anything, you might want to hire an SEO professional who will follow this process but also ensure that your website does not have any other problems in its code or programming technology. Future management of this condition Cyri: We recommend to keep adding content and links to your website. Make sure your website content stays relevant and fresh. Keep adding new ways to connect with your customers, such as RSS feeds and tweets. Cost: Most of these steps are free, unless you hire someone else to do the job for you. The two exceptions are paid (sponsored) links, such as the one in the Yahoo directory (US$ 299) and Google sponsored ads (costs can range from several dollars up to several thousand a day). Generic name and alternative medicine Ivan: The generic name is “search engine optimization.” Alternative approaches to SEO include PPC (pay per click) ads, social media marketing, etc. Precautions/warnings Cyri: Please allow at least four to eight weeks for SEO medicine to take effect. Cyri and Ivan’s medication rating: ★★★★★ Cyri Jones teaches entrepreneurship, project management and information technology at BCIT and Capilano University and is the co-founder of ZedPress.com, a lifelong learning publishing platform and social network. He blogs at 24posts.com. Ivan Surjanovic is a marketing faculty at Capilano University and CEO of iPower Lab. He blogs at whereispuck.com and at bizpharmacy.com.

>“Retirement, as you discover, isn’t about doing nothing. It’s about doing what you want to do with people you want to do it with” – Ken Spencer, Creo Products co-founder, on the real meaning of retirement. From BIV’s Profile (issue 1133; July 12-18)

>“The greatest barrier to success is the fear of failure” – Sven Goran Eriksson, Swedish soccer manager

>“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out” – Dee Ward Hock, founder of Visa

>“Dictionary is the only place that success comes before work” – Vince Lombardi, American football coach

CEO Advantage

Nancy MacKay How to avoid surprises and manage bad news CEO challenge The CEO of an award-winning company met with his executive team to celebrate recent successes, including having just closed out their best quarter ever. The session was meant to be a review of their achievements and an opportunity to learn more about what had been done well. However, during t he meeting the CEO learned that their No. 1 competitor had surpassed them in the last quarter. In fact, they had lost to that competitor a significant contract just last month. The leader was stunned. He had not been told of the loss by his vice-president of sales or anyone on the team. And he was frustrated and angry by what he viewed as a pattern. His executives neglected to keep him informed, and he found himself always having to dig for information. CEO mistake The CEO lost it with his t e a m , ye l l i n g o b s c e nities and accusing them of “screwing things up badly.” “I c a n’t bel ie ve you people didn’t tell me about the loss,” he yelled. He demanded that his sales lead provide a full report within 24 hours explaining what happened and what needed to be done to ensure it never happened

again. And he told them that all future losses were to be reported to him immediately, at which point he abruptly ended the meeting and stormed out of the room. W hi le t he CEO may have been surprised, his team wasn’t. Their leader was known for his explo-

The CEO lost it with his team, yelling obscenities and accusing them of “screwing things up badly” sive outbursts to negative news, and they had long since learned to do whatever it took to keep bad news under wraps. CEO solution To be successful, it’s critical that a leader have open communication with his team, and that they are able to discuss the good and the bad without fear of reprisal. As a CEO, if you want to avoid surprises, you need to do four things: Accept bad news in silence. Don’t say a word if you are angry or frustrated about bad news. Take a break, get a cup of coffee or just pause for a few moments to reframe the situation so you can identify

your ideal outcomes before taking action. Don’t play the blame game. The CEO took no ownership of the loss of the contract, immediately blaming his direct report and the team and demanding they take action. Apologize and learn from your mistakes. The day after his blow-up, the leader met individually with his executives and apologized, asking them if there was something he could do differently to make it easier for them to share all news with him – good, bad and ugly. His team helped him learn that because his reaction to bad news was so severe, people avoided sharing with him. Learn from successes and failures. Working with his team, the CEO developed plans to avoid surprises by systematically reviewing all successes and failures. He clarified that his role would be to get involved in all future contract reviews to offer his support and help set the team up for even greater success in the future. • Nancy MacKay is the president of MacKay & Associates (www.mackayandassociates.ca) and the CEO coach and facilitator of 15 CEO and executive forums across Canada with more than 150 members.

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Magazine

Daily business news at www.biv.com July 26–August 1, 2011

Opposites attract Companies working with sustainability advocates to reduce their environmental footprint and increase corporate value By Noa Glouberman

Dominic Schaefer

Catalyzing change Since 2005, Catalyst Paper Corp., a producer of specialty printing papers headquartered in Richmond, has worked voluntarily with World Wildlife Fund Canada to further its environmental commitment. As one of WWF-Canada’s Climate Saver partners, Catalyst has cut its carbon dioxide emissions by 70% relative to 1990 levels: the equivalent of taking 250,000 cars off the road. “We believe that collective action is the best way to address the risk of global warming,” said Lyn Brown, Catalyst’s vice-president of corporate affairs and social responsibility. “We see good value in looking to the expertise of credible and science-based groups such as WWF, which can engage with us both critically and constructively as we strive to make better business decisions and improve our sustainability performance.” The partnership with WWFCanada has helped Catalyst pursue fuel-switching, energy-saving and recycling initiatives in its B.C. mills. Its participation in Climate Savers has even allowed it to translate its gains into industry-changing, earth-friendly product offerings. On June 28, 2007, Rolling Stone magazine débuted its first issue printed on Catalyst Cooled paper: a special edition dedicated to global warming. Produced with no net increase in greenhouse-gas (GHG) emissions, Catalyst Cooled makes Catalyst the first company to have manufactured carbon-neutral paper on a mass scale. Rolling Stone continues to publish on manufactured carbon-neutral paper made at Catalyst’s Port Alberni mill. “The GHG-neutral promise means that we account for and offset emissions that are within our direct control,” Brown said. “That includes doing things that reduce our greenhouse-gas emissions as much as possible, like switching to renewable, carbon-neutral fuels, reducing energy consumption and

Dominic Schaefer

nvironmentalism used to be a case of David and Goliath: activists on inflatable dinghies sidling up to giant whaling vessels in the North Pacific, facing off against loggers in Clayoquot Sound, picketing corporations thought to be harming Earth. The tides are changing. Increasingly, non-profit environmental groups are teaming with companies that want to operate more sustainably. Businesses tap into the expertise of conservationists as they green their operations both internal and external.

Lyn Brown, vice-president of corporate affairs and social responsibility, Catalyst Paper, Richmond (left), and Darcy Dobell, vice-president, Pacific region, World Wildlife Fund Canada. Catalyst works with WWF-Canada as a Climate Saver partner

improving equipment-efficiency.” The product, Brown said, would not have materialized had Catalyst not undertaken “a thorough review of its operations, with an eye to identifying emissions-reductions opportunities” through Climate Saver. According to Darcy Dobell, vice-president, Pacific region, at WWF-Canada, helping companies like Catalyst achieve success in sustainability is part of her organ ization’s mandate. “We reject the notion that there is an inherent conflict between business and the environment, economy and ecology,” she said. “We’re not an organization that sees business as inherently antagonistic to good sustainability practices. Rather, we believe that there is an enormous opportunity for the business community to make a huge contribution to improving our relationship with the planet. Our aim is to engage the people who have the ability to make the biggest difference.” Hop, skip and jump Based in Vancouver with franchises across the Lower Mainland, in Toronto and in Seattle, Frogbox Inc. provides reusable containers as alternatives to cardboard moving boxes. While the company was built on commitment to green, founder and president Doug Burgoyne felt he could do even more, even better, shortly after Frogbox’s launch in 2008. “When we started the business, we looked at everything we could

possibly do to minimize the environmental impact,” he said. “We used solar hosting for our website, we used biodiesel … but we didn’t really measure the impact of that.” Frogbox entered into partnership with Climate Smart Businesses Inc., a social enterprise launched by non-profit Ecotrust Canada that helps businesses measure and reduce their carbon footprints while cutting costs. “We wanted to minimize the operational impact of our service,” said Burgoyne, “and that’s where Climate Smart came in really handy, because it helped us to measure it and understand where our greenhouse gases were really coming from.” One strategy that Frogbox implemented was a software-based routing system for its delivery trucks. “We wanted to reduce our fuel costs by 20%, and we wanted to reduce our greenhouse-gas emissions per box delivered by 30%,” Burgoyne explained. “Now we can lock customers down to sort out our orders in batches so we’re not driving [inefficiently] all over the city.” Big fish to fry Businesses interested in the emerging sustainable-seafood sector may face challenges. SeaChoice, an initiative of the David Suzuki Foundation with several other environmental organizations, works with companies like Overwaitea Food Group Ltd. to overcome obstacles and maximize success. “This idea sounds very simple,

Doug Burgoyne, founder and president of Frogbox, which entered into partnership with Climate Smart to measure and reduce its carbon footprint while cutting costs

and … who would not want healthier oceans and more sustainable seafood? But to make that idea real in today’s world … [is] very tough,” said Overwaitea president Steve van der Leest. “We know that with the experts that we have in the SeaChoice organization helping us find practical solutions … we can make a difference.”

“We reject the notion that there is an inherent conflict between business and the environment, economy and ecology” – Darcy Dobell, vice-president, Pacific region, WWF-Canada

Overwaitea, which operates 124 grocery stores in B.C. and Alberta, began working with the David Suzuki Foundation and SeaChoice to “come up with a sustainable seafood policy,” van der Leest said. “They have, in our opinion, the best science in the world on this topic.” The partnership bore fruit on April 21, 2010, when Overwaitea announced that it would make sustainably farmed closed-containment Coho salmon available to consumers: the first food retailer in Western Canada to do so. SeaChoice had helped the company identify a Washington-state supplier that met its high sustainableseafood standards. “Just giving consumers a better choice isn’t the only way to make

change,” said Jay Ritchlin, program director, marine and freshwater conservation, for the David Suzuki Foundation. “Sometimes policies have to change, or practices have to change, and Overwaitea has committed to help us work with its suppliers, the people who grow the agriculture products and fish for the wild-caught products. “Sometimes it’s important to be able go with a major business partner to government and to say [that] we really do need to change the way we monitor or manage our fisheries, so that everybody knows that things are getting better and it’s not up to each and every individual to try and solve everything [alone].” David Suzuki, who was on hand for the Earth Day announcement, said, “Environmentalists have fought. We’ve fought against bad practices, pollution of the air, the water; against clear-cut logging; and it’s become very clear to me that, worthy as our causes are, we’re not going to make it if we don’t begin to work together with other sectors. “As the corporate sector begins to realize that you can’t just ignore the environment – it’s critical not only for other people but also for their businesses – and begins to try to align its policies and practices with true sustainable ideas, that’s where the action is as far as I’m concerned.” • This article is reprinted from Greenspace BC magazine, which will be delivered in the next Business in Vancouver (issue 1136; August 2-8).

Inside Highest paid CEOs, CFOs and COOs — 17 Top five executives in each category

list

paid

Insider trading — 19 Who bought what and for how much

Annual News Report

list

July 28–August 1, 2011; issue 1135

Top 100 highestpaid executives in B.C. — 16, 18, 20, 21

B.C.’s new cash kings share-based compensation was in deferred stock units that will be paid if he decides to leave the company. His earnings last year placed him atop the list for executive pay on many fronts. In addition to having the highest cash bonus of any other executive on the list, he had the largest percentage increase in cash compensation: nearly 600% (to $6 million from $860,003 in 2009).

Dominic Schaefer

Corporate directors reward executives as B.C. companies recover from recession

Kai Li, UBC’s Sauder School of Business: pay for public company executives grows faster than it does for their private-company counterparts

Barry Cook, partner at Western Compensation and Benefits Consultants: “it’s not their money on the line; it’s the shareholders’”

Fortress Paper CEO Chad Wasilenkoff: topped this year’s list of B.C.’s highest-paid executives

By Richard Chu

Business in Vancouver Forty under 40 award recipient who founded Fortress six years ago after buying a Swiss banknote paper mill and a German specialty wallpaper

12-18, 2007). Some of the increase in his compensation last year resulted from a new six-year employment agreement that boosted his salary to $1 million from $480,000 and included an option to earn a larger discretionary annual bonus. But much of his compensation in 2010 was linked to a performance bonus tied to the company’s acquisition from Fraser Papers of a specialty cellulose mill in Quebec that closed in April 2010. According to the company’s management information circular, Wasilenkoff was granted $5 million in restricted share units that he’ll earn if the cellulose business can generate earnings of $225 million by the end of 2014. The remaining $5 million in

ear over the debt crisis in Europe and the U.S. might have convinced people that money isn’t worth the paper it’s printed on. But for B.C.’s top paid publiccompany executive, as long as countries keep printing money, he’ll continue to rake in the cash. C h a d Wa s i l e n k o f f , CEO of Fortress Paper Ltd. (TSX:FTP), topped this year’s list of B.C.’s highestpaid executives by earning a whopping $16 million in 2010 as his company’s revenue and profits jumped from its sale of banknote and passport security paper and other specialty products. That’s pretty good for a contrarian investor and

“Consideration of risk in the incentive plan has been given much more thought” – Barry Cook, partner, Western Compensation and Benefits Consultants

mill from Mercer International near the bottom of the pulp and paper market (see “This paper trail leads to big money” – issue 920; June

BC’s oldest law firm is...

Bonuses more than double for 15% of toppaid executives in 2010 But Wasilenkoff didn’t receive the highest salary. That distinction was left to Charles Jeannes, president and CEO of Goldcorp Inc. (TSX:G). He took home $1.3 million in 2010, up from $1.25 million in 2009. Other million-dollar salary earners included: •Teck Resources’ Don Lindsay ($1.25 million); •Lions Gate’s Jon Feltheimer ($1.23 million); •Telus’ Darren Entwistle ($1.22 million); and •Methanex’s Bruce Aitken ($1.16 million). While the combined salaries of B.C.’s 100 highestpaid executives rose 3% last year, on average, most of the compensation increase for executives came in bonuses and share-based awards. The total value of bonuses rose 46% to $84.8 million,

up from $58 million paid to executives on last year’s list. On a percentage basis, 15 executives reported at least a doubling in their annual bonus last year; eight posted a 300% year-over-year increase, including Peter and Bruno Wall of Wall Financial Corp. (TSX:WFC), whose bonuses rose to $4.3 million from $1 million, and Westport Innovations’ David Demers, whose bonus rose to $772,425 from $192,643. The total value of sharebased compensation more than doubled, jumping 131% to $96.1 million from $41.4 million. The bulk of share-based awards was concentrated in the executives’ pay for 19 of B.C.’s largest companies, including Telus, Teck, Goldcorp, Canaccord Financial and West Fraser Timber. Are they worth the money? On the surface, most executives on this year’s list were compensated for their company’s stronger performance in 2010. About 80% of the 43 companies posted revenue growth and about half reported net profit increases between 2009 and 2010. But what about those that saw a drop in revenue or a net loss? Barry Cook, partner at Western Compensation and Benefits Consultants, said other factors would likely have been considered to

determine an executive’s compensation package. Some mining exploration and development companies, for example, provide bonuses or other types of compensation when development milestones are met, even though they might be far from producing revenue. They might, for example, post a higher net loss as a result of increased spending on exploration or construction. “If they’re in an early stage of growth, the metrics would change each year. “Well-designed shortterm incentive plans (STIPs) would have a relationship with the annual operating plan and financial plans of the company, and those change each year. An executive’s STIP should relate directly to those plans.” While executive compensation appears to rise each year, Cook noted an increasing portion of an executive’s pay is now tied to a company’s future performance. These types of share-based awards appear as performance-based units, or restricted share units, which are granted in a specific year, but are only exercisable if the company reaches milestones over a number of years. This year, nearly half of an executive’s compensation, on average, consisted of share-based and optionsbased awards. see Incentives, 17

Daily business news at www.biv.com July 26–August 1, 2011

Top 100 highest-paid executives in B.C. Ranked by total compensation in 2010 Rank '11 Executive

Chadwick (Chad) Wasilenkoff,

chair and CEO

Company

Industry sector

Revenue '10/'09 Net income % change '10/'09 % change

Salary '10/'09

Bonus '10/'09

Other compensation '10/'09

Value of options exercised '10/'09

OptionsShare- based Pension based awards '10/ value '10/ awards '10/ '09 '09 '09

Long-term Total compcompensation '10/ ensation '09 '10/'09

Fortress Paper Ltd Security paper and wall paper TSX:FTP

$281,287,000 $198,310,000 41.8%

$34,753,000 $12,697,000

$1,000,000 $480,000

$5,000,000 $380,003

$0 $0

NA $0

$0 $0

$9,999,938 $454,997

$0 $0

$15,999,938 $1,315,000

TSX:SLW

$436,011,2551 $273,265,4271 59.6%

$298,766,7811 $134,665,6701

$698,9361 $679,1161

$1,035,4611 $814,9381

$13,3931 $13,3011

$7,604,9651 $0

$1,676,1501 $945,4611

$0 $692,3591

$0 $0

$11,028,906 $3,145,1751

($217,802,222)1 ($319,946,877)1

$0 $0

$3,492,0461 $0

NA NA

$0 $8,519,0961

$6,822,4061 $0

$0 $0

$10,314,4521 $8,519,0961

manufacturing in Europe Silver Wheaton Corp Silver sales

CEO

Robert Friedland,

Ivanhoe Mines Ltd TSX:IVN

Charles Jeannes,

Goldcorp Inc TSX:G; Gold mining NYSE:GG

$3,913,414,0201 $3,110,269,4921 25.8%

$1,612,926,3901 $274,301,1901

$1,300,0001 $1,250,0001

$2,095,4351 $2,017,5181

$70,7891 $68,1681

NA $1,288,0681

$2,230,0001 $1,647,1781

$2,160,2532 $2,435,4813

$465,0001 $135,5001

$1,642,0001 $0

$9,963,4771 $8,841,9131

Darren Entwistle,

Telus Corp TSX:T; NYSE:TU

Telecommunications

$9,779,000,000 $9,606,000,000 1.8%

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

$1,225,000 $1,225,000

$393,997 $315,438

$53,451 $53,451

NA NA

$0 $2,150,000

$6,893,997 $2,465,438

$874,000 $644,000

$500,000 $0

$9,940,445 $6,853,327

Sam Riggall,

Ivanhoe Mines Ltd TSX:IVN

Mining

$82,162,3321 $41,154,3151 99.6%

($217,802,222)1 ($319,946,877)1

$346,2661 NA

$0 $0

NA NA

$5,963,3071 NA

$2,947,2791 NA

$0 $0

$9,256,8521 $0

John Currie,

Lululemon Athletica Retail Inc Nasdaq:LULU

$711,703,9991 $517,195,9291 37.6%

$125,490,2251 $66,555,1541

$396,4261 $380,0251

$361,1241 $275,9571

$2,1621 $1,8401

$8,053,3611 $1,305,3031

$98,7431 $902,9011

$280,1861 $0

$0 $0

$9,192,002 $2,866,0261

deputy chair

Peter Meredith,

Ivanhoe Mines Ltd TSX:IVN

Mining

$82,162,3321 $41,154,3151 99.6%

($217,802,222)1 ($319,946,877)1

$666,9121 $558,8771

$873,9201 $685,1821

$40,2531 $37,7061

NA $480,0004

$546,9311 $6,888,3631

$6,822,4061 $0

$0 $0

$8,950,4221 $8,650,1281

John Macken,

Ivanhoe Mines Ltd TSX:IVN

Mining

$82,162,3321 $41,154,3151 99.6%

($217,802,222)1 ($319,946,877)1

$735,3491 $815,3671

$823,9201 $628,0841

$31,7481 $36,8761

NA NA

$191,4261 $8,827,4281

$6,822,4061 $0

$0 $0

NA $0

$8,604,8481 $10,307,7551

CEO

Christine Day,

Lululemon Athletica Retail Inc Nasdaq:LULU

$711,703,9991 $517,195,9291 37.6%

$125,490,2251 $66,555,1541

$592,2291 $562,1351

$677,1081 $505,9211

$22,3761 $4,2931

$3,952,315 $0

$1,648,2291 $1,667,0471

$636,7871 $0

$0 $0

$7,529,0441 $2,739,3961

Don Lindsay, president and CEO

Teck Resources Ltd Mining and refining TSX:TCK.B

$9,339,000,000 $7,674,000,000 21.7%

$1,975,000,000 $1,831,000,000

$1,250,000 $1,144,000

$1,500,000 $1,898,500

$107,569 $40,000

NA NA

$2,030,045 $426,288

$2,132,400 $1,307,250

$386,000 $176,000

$0 $0

$7,406,014 $4,992,038

Michael Burns,

Movie and television $1,631,071,1681 $1,674,555,1171 production and distribution -2.6%

($28,987,565)1 ($203,776,623)1

$952,6581 $964,7271

$1,493,3551 $356,8661

$17,8111 $20,0441

$0 $3,223,4881

$0 $1,133,2431

$4,618,0461 $1,660,5341

$0 $0

$7,081,8701 $7,358,9021

executive chair

Lions Gate Entertainment Corp NYSE:LGF New Gold Inc TSX:NGD

Mining

$546,310,4551 $369,747,0471 47.8%

$182,244,9251 ($221,903,043)1

$650,000 $291,7871

$1,000,000 $1,000,4111

$0 $0

NA NA

$2,281,603 $2,911,1981

$2,408,876 $0

$0 $0

$6,340,4801 $4,203,3961

Paul Reynolds, president and CEO

Canaccord Financial Finance Inc TSX:CF

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

$450,000 $389,684

$4,596,500 $5,243,398

$13,408 $4,200

NA NA

$0 $191,228

$1,200,534 $1,948,648

$0 $0

$6,260,442 $7,777,158

Bruce Aitken, president and CEO

Methanex Corp TSX:MX

$2,025,383,8321 $1,368,273,0531 48%

$104,774,8171 $842,7741

$1,162,000 $1,120,000

$635,000 $640,000

$379,814 $387,815

$0 $0

$1,885,884 $579,641

$1,872,000 $578,650

$223,685 $215,600

$0 $0

$6,158,383 $3,521,706

Henry Ketcham,

West Fraser Timber Forestry Co Ltd TSX:WFT

$2,885,900,000 $2,352,500,000 22.7%

$166,200,000 ($340,800,000)

$717,500 $717,500

$473,500 $0

$0 $0

$2,923,5106 NA

$0 $1,722,000

$1,749,960 $0

$184,600 $182,100

$0 $0

$6,049,070 $2,621,600

John Smith,

$115,612,4541 $6,214,6011 1,760.3%

$356,591,5461 ($15,066,010)1

$260,4171 NA

$300,0001 NA

$50,0001 NA

$0 $0

$5,400,000 NA

$0 $0

$6,010,4171 $0

Silver mining Silver Standard Resources Inc TSX:SSO Teck Resources Ltd Mining Boyd Payne, SVP coal, president Teck Coal TSX:TCK.B

$9,339,000,000 $7,674,000,000 21.7%

$1,975,000,000 $1,831,000,000

$725,000 $703,000

$380,300 $542,900

$3,716,997 $1,294,268

NA NA

$444,072 $106,572

$533,100 $327,020

$94,250 $91,390

$0 $0

$5,893,719 $3,065,150

Paul Wright,

$814,831,1331 $411,941,1691 97.8%

$212,224,2841 $116,942,2901

$900,000 $600,000

$1,732,500 $1,046,250

$0 $0

NA $4,625,302

$2,538,000 $0

$0 $0

$525,466 $391,714

$0 $0

$5,695,966 $6,663,266

Edward (Ted) Hirst, Canaccord Financial Finance managing director, global co- Inc TSX:CF head of investment banking

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

$0 NA

$4,499,121 NA

$0 NA

NA NA

$1,144,080 NA

$0 NA

$5,643,201 $0

Steve Reid,

Goldcorp Inc TSX:G; Gold mining

$3,913,414,0201 $3,110,269,4921 25.8%

$1,612,926,3901 $274,301,1901

$830,0001 $799,9271

$865,0001 $924,6971

$36,0001 $34,9211

NA $2,418,2201

$1,731,4861 $1,364,8831

$1,080,126 $1,403,499

$248,2331 $128,2851

$821,0001 $0

$5,611,845 $7,074,4321

Lindsay Hall,

executive-vice president and NYSE:GG CFO

Goldcorp Inc TSX:G; Gold mining

$3,913,414,0201 $3,110,269,4921 25.8%

$1,612,926,3901 $274,301,1901

$830,0001 $799,9271

$817,2201 $924,6971

$47,8661 $46,5941

$0 $1,414,8761

$1,783,2571 $1,364,8831

$972,1147 $1,403,4998

$248,2331 $135,4881

$739,0001 $0

$5,437,6901 $6,089,9641

Canaccord Financial Finance Jens Mayer, managing director, global co- Inc TSX:CF head of investment banking

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

$0 $0

$3,827,500 $2,275,806

$509,202 $101,521

NA NA

$0 $191,228

$1,023,961 $1,063,940

NA NA

$5,360,663 $3,632,495

$546,310,4551 $369,747,0471 47.8%

$182,244,9251 ($221,903,043)1

$650,000 $500,2061

$800,000 $750,3091

$11,000 $10,5041

NA $0

$1,825,283 $2,761,9371

$2,007,397 $0

$0 $0

$5,293,6791 $4,022,9561

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

$0 $0

$4,066,875 $2,604,000

$18,458 $28,976

NA NA

$0 $0

$1,085,803 $1,150,312

$0 $0

$5,171,136 $3,783,288

Peter Barnes,

founder and CEO

president and CEO

executive vice-president, business development and strategic planning

CFO

president5

vice-chair

Randall Oliphant,

chair, president and CEO

Copper, gold and coal $82,162,3321 mining $41,154,3151 99.6%

Energy

president and CEO

Eldorado Gold Corp Mining TSX:ELD

executive vice-president and NYSE:GG COO

president and CEO

Robert Gallagher,

New Gold Inc TSX:NGD

All Pejman,

Canaccord Financial Finance

Mining

managing director, Inc TSX:CF investment banking and head of public of venture capital

Sources: BIV research based on company's most recent management information circular. NR Not ranked NA Not available 1 - Converted from U.S. dollars 2 - 50,000 RSUs 3 - 75,000 RSUs 4 - SouthGobi options exercised 5 - Until October 2010 6 - Options surrendered for cash in 2010 7 - 22,500 RSUs 8 - 45,000 RSUs

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

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

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Top 100 paid executives 17

July 26–August 1, 2011 Business in Vancouver

Incentives: Options that create excessive risk scrutinized Total executive compensation (2006-10)

from B.C.’s, 15

$389.8

$380 $360 $340 $314.8

Millions

$320

$314.4

$307.8

$300 $281.7 $280

$240 $220 $200 2006

2007

2008

2009

2010

Total compensation (2006-10)

preventing large increases across the board because such moves would send the wrong signal to executives about their performance. It would also make it more difficult to retain top talent. “No firm wants their CEO to feel like a second-class citizen with a lower-than-average pay,” said Li. Her study suggested that CEOs faced with a pay cut are more likely to leave a company or be dismissed even though the cut might be warranted because of poor corporate performance. Retention was not a problem for CEOs that maintained their level of compensation through a difficult period. Although, if an entire sector did poorly, retention was less of an issue when CEOs faced pay cuts, which suggests that executives can be hit with a “pay cut for bad luck.” Faced with trying to keep taxpayer-supported salaries low, governments and Crown corporations will face more challenges recruiting top talent if executive compensation is not controlled elsewhere in the marketplace. “In B.C.’s public sector, they’re working on a mandate to hold pay levels of executive management and everyone down the line. By and large, the private sector has continued to make salary increases,” said Cook. “At the end of the day, you have to determine whether to compete with the private sector, or cut the hiring pool and hire out of the people who are working in the public sector.” • rchu@biv.com

Top paid board chairmen Peter Meredith, deputy chairman Michael Burns, vicechairman Randall Oliphant, chairman Peter Brown, chairman Yale Simpson, chairman

Ivanoe Mines Ltd.

$8.9 million

Lions Gate Entertainment Corp. New Gold Inc. Canaccord Financial Inc. Exeter Resource Corp.

$7.1 million

$6.3 million $3.7 million $3.5 million

Top paid presidents John Macken Paul Reynolds Bruce Aitken John Smith Paul Wright

Ivanhoe Mines Ltd. Canaccord Financial Inc. Methanex Corp. Silver Standard Resources Inc. Eldorado Gold Corp.

$8.6 million $6.3 million $6.2 million $6 million $5.7 million

Top paid CEOs Chadwick Wasilenkoff Peter Barnes

Fortress Paper Ltd. Silver Wheaton Corp. Ivanhoe Mines Ltd. Goldcorp Inc. Telus Corp.

Robert Friedland Charles Jeannes Darren Entwistle

$16 million $11 million $10.3 million $9.96 million $9.94 million

Top paid CFOs John Currie Lindsay Hall Gary Brown Tony Giardini Cecil Bond

Lululemon Athletica Inc. Goldcorp Inc. Silver Wheaton Corp. Ivanhoe Mines Ltd. Exeter Resource Crop.

$9.2 million $5.4 million $4.8 million $2.8 million $2.7 million

Help kids make the right choices.

$260

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It pays to lead a public company The financial crisis has increased scrutiny and transparency around executive compensation. In the U.S., public companies are required to give shareholders the right to have a say on executive pay, and an growing number of Canadian companies are voluntarily following suit, even those that aren’t listed on U.S. stock exchanges. But those changes might not eliminate the premium that executives receive for running a publicly traded company. A study published last year co-authored by Kai Li of UBC’s Sauder School of Business found that pay for public company executives grows faster than it does for their private company counterparts. The study also found that on average U.S. public company executives receive 6% higher cash compensation and 18% more total pay than private company CEOs. Li said that’s mainly because executives for public companies have to answer to a far wider range of people, including analysts, shareholders and financial intermediaries, than do private company executives. The annual salary comparisons compensation committees make with other industry executives also help increase executive pay. The study found there was relatively little crossover of executives between private and public companies, which helps maintain the executive pay gap between the two. While shareholders might want to control executive compensation, doing so would be very difficult. Another published study Li coauthored suggested boards of directors would have a difficult time arbitrarily cutting executive salaries or

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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.

While companies still grant stock options, wellstructured compensation plans also include vesting periods and other requirements before an executive can exercise them. More companies are also evaluating executive pay packages for incentives to take excessive risks with shareholder assets. “If incentive plans encourage an executive to take undue risk to accomplish something; it’s not their money on the line; it’s the shareholders’,’” said Cook, “so consideration of risk in the incentive plan has been given much more thought.”

Top paid COOs Steve Reid Mark Maybank Jack Miller Normal Pitcher J.T. Lionel Martin

Goldcorp Inc. Canaccord Financial Inc. Quadra FNX Mining Ltd. Eldorado Gold Corp. East Asia Minerals Corp.

$5.6 million $2.9 million $2.4 million $2.3 million $1.7 million

Top paid executive vice-presidents Sam Riggall Joe Natale Matthew Gaasenbeek Timo Jauristo David Deisley

Ivanhoe Mines Ltd. Telus Corp. Canaccord Financial Inc.

$9.2 million $4.4 million $4.2 million

Goldcorp Inc. Goldcorp Inc.

$4 million $3.8 million

www.uwlm.ca

Daily business news at www.biv.comâ&#x20AC;&#x192; July 26â&#x20AC;&#x201C;August 1, 2011

Top 100 highest-paid executives in B.C. Ranked by total compensation in 2010 Rank '11 Executive

Company

Industry sector

Gary Brown,

Silver Wheaton Corp Silver sales TSX:SLW

Curt Bernardi,

Silver Wheaton Corp Silver sales TSX:SLW

CEO

David Demers,

Randy Smallwood,

Technology Westport Innovations Inc TSX:WPT Silver Wheaton Corp Silver sales TSX:SLW

Peter Wall,

Telus Corp TSX:T; Joe Natale, executive vice-president and NYSE:TU chief commercial officer, consumer solutions

Bruno Wall,

Matthew Gaasenbeek, Canaccord Financial Finance executive vice-president and Inc TSX:CF managing director, head of equities Goldcorp Inc TSX:G; Gold mining Timo Jauristo, executive vice-president, NYSE:GG corporate development Goldcorp Inc TSX:G; Gold mining David Deisley, executive vice-president, NYSE:GG corporate affairs and general counsel Movie and television Lions Gate Jon Feltheimer, co-chair and CEO Entertainment Corp production and distribution NYSE:LGF

34 35 36

CFO

vice-president, legal and corporate secretary

president and CEO consultant

president

Wall Financial Corp Real estate TSX:WFC Telecommunications

Wall Financial Corp Real estate TSX:WFC

Revenue '10/'09 Net income % change '10/'09 % change

Salary '10/'09

Bonus '10/'09

Other compensation '10/'09

Value of options exercised '10/'09

OptionsShare- based Pension based awards '10/ value '10/ awards '10/ '09 '09 '09

Long-term Total compcompensation '10/ ensation '09 '10/'09

$436,011,2551 $273,265,4271 59.6% $436,011,2551 $273,265,4271 59.6%

$298,766,7811 $134,665,6701

$331,3481 $298,7121

$414,1851 $260,6931

$0 $0

$3,505,5671 $0

$576,5911 $315,0491

$0 $0

$4,827,6901 $874,4551

$298,766,7811 $134,665,6701

$331,3481 $298,7121

$414,1851 $260,6931

$0 $0

$3,452,3061 $0

$576,5911 $31,5041

$0 $305,5031

$0 $0

$4,774,429 $896,413

$130,712,000 $121,837,000 7.3%

($37,636,000) ($24,425,000)

$514,9501 $513,7161

$772,4251 $192,6431

$6091 $0

NA NA

$0 $212,9781

$3,249,7721 NA

$0 $0

$4,537,756 $919,337

$436,011,2551 $273,265,4271 59.6% $203,838,828 $167,557,929 21.7% $9,779,000,000 $9,606,000,000 1.8%

$298,766,7811 $134,665,6701

$414,1851 $325,9751

$673,0501 $651,9511

$0 $0

$2,068,1651 $0

$1,297,3301 $709,0961

$0 $443,7321

$0 $0

$4,452,730 $2,130,7541

$29,469,368 $14,329,269

$0 $0

$4,377,459 $1,032,419

$72,667 $51,200

$0 $0

$4,450,126 $1,083,619

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

$656,250 $525,000

$190,191 $98,569

$2,015 $2,015

NA NA

$250,000 $500,000

$2,440,191 $748,569

$871,000 $224,000

$0 $0

$4,409,647 $2,098,153

$203,838,828 $167,557,929 21.7% $577,537,000 $477,721,000 20.9%

$29,469,368 $14,329,269

$0 $0

$4,377,459 $1,032,419

$2,800 $0

$0 $0

$4,380,259 $1,032,419

$38,497,000 ($47,651,000)

NA $150,000

$2,812,300 $2,625,443

$606,828 $15,161

NA NA

$0 $191,228

$769,774 $1,228,224

$0 $0

$4,188,902 $4,210,056

$3,913,414,0201 $3,110,269,4921 25.8%

$1,612,926,3901 $274,301,1901

$452,2321 $400,0001

$508,1431 $111,5531

$25,0001 $8,8441

NA NA

$1,458,0001 $852,9171

$846,0912 $521,2323

$84,5751 $22,4831

$586,4251 NA

$3,960,4661 $1,917,0291

$3,913,414,0201 $3,110,269,4921 25.8%

$1,612,926,3901 $274,301,1901

$351,4801 $304,2711

$429,5641 $188,0391

$24,6951 $18,9771

NA NA

$1,457,9831 $852,9171

$846,0914 $460,9615

$80,9381 $36,5136

$586,4251 $0

$3,777,176 $1,861,678

$1,631,071,1681 $1,674,555,1171 -2.6%

($28,987,565)1 ($203,776,623)1

$1,235,8807 $1,370,3647

$2,008,3057 $499,6127

$85,8707 $112,0027

$0 $2,905,0127

$0 $1,220,1167

$425,1437 $1,499,0157

$0 $0

$3,755,1987 $7,606,1217

$577,537,000 $477,721,000 20.9% $530,0008 $499,0008 6.2% $986,293,0041 $524,782,0301 87.9% $530,0008 $499,0008 6.2% $4,641,302,000 $4,737,541,000 -2%

$38,497,000 ($47,651,000)

$0 $0

$3,229,985 $2,769,828

$460,405 $1,045,829

NA NA

$0 $0

$3,690,390 $3,815,657

($35,817,000) ($30,978,000)

$285,3029 $210,455

$50,000 $100,000

$0 $0

$3,206,0109 $1,013,330

$0 $0

$3,541,3129 $1,323,785

$177,612,4341 $91,908,0291

$661,026 $516,667

$287,017 $899,000

$19,298 $7,500

$829,649 $0

$1,041,283 $330,482

$548,332 $0

$0 $0

$3,386,605 $1,753,649

($35,817,000) ($30,978,000)

$406,66810 $360,000

$100,000 $100,000

$0 $0

$2,869,26810 $1,451,631

$0 $0

$3,375,93610 $1,911,631

($78,373,000) $130,823,000

$800,000 $800,000

$774,000 $432,000

$55,304 $49,913

$0 $0

$589,550 $715,836

$589,550 $614,458

$420,000 $355,000

$0 $0

$3,228,404 $2,967,207

($35,817,000) ($30,978,000)

$212,500 NA

$0 NA

$3,013,300 NA

$0 NA

$3,225,800 $0

Peter Brown,

Canaccord Financial Finance Inc TSX:CF

Yale Simpson,

Exeter Resource Corp TSX:XRC

Paul Blythe,

Quadra FNX Mining Mining Ltd TSX:QUA

Bryce Roxburgh,

Exeter Resource Corp TSX:XRC

Resources

president and CEO

Michael Waites,

Heavy equipment

Louis Montpellier,

Finning International Inc TSX:FTT Exeter Resource Corp TSX:XRC

Steve Kesler,

Greystar Resources Precious metals exploration and Ltd TSX:GSL

($35,941,803) ($24,025,828)

$280,219 $0

$0 $0

$163,994 $0

$0 $0

$2,748,528 $0

$0 $0

$3,192,741 $0

Eros Spadotto, executive vice-president, technology strategy

Telus Corp TSX:T; NYSE:TU

$1,164,2058 $337,7828 development 244.7% Telecommunications $9,779,000,000 $9,606,000,000 1.8%

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

$461,250 $420,000

$129,675 $111,930

$2,015 $2,015

NA NA

$0 $550,000

$1,129,675 $661,930

$1,105,000 $226,000

$350,000 $350,000

$3,177,615 $2,321,875

Jeffrey Ciachurski,

Western Wind Energy Corp TSXV:WND Ivanhoe Mines Ltd TSX:IVN

Wind energy producer

$5,116,652 $2,798,496 82.8%

($2,269,275) ($5,023,162)

$396,000 $396,000

$1,795,000 $0

$17,122 $17,122

NA NA

$969,443 $0

$0 $0

$3,177,565 $413,122

Mining

($217,802,222)1 ($319,946,877)1

$463,4551 $513,8871

$453,1561 $308,3321

$325,9671 $199,8651

NA $0

$0 $1,175,0871

$1,801,1151 $0

$0 $0

$3,043,6931 $2,197,1711

Copper, molybdenum, gold and silver mining Mining

$82,162,3321 $41,154,3151 99.6% $246,851,000 $201,137,000 22.7% $159,634,5001 $127,175,4891 25.5% $3,764,00011 $399,00011 843.4% $689,030,00012 $1,000,890,000 -31.2%

$35,323,000 ($12,759,000)

$223,150 $213,150

$120,000 $134,691

$10,815 $10,815

$0 $0

$2,643,491 $15,243

$0 $0

$2,997,456 $373,899

$13,751,2251 $6,452,1311

$617,9401 $593,6271

$617,9401 $285,3981

$0 $0

$1,318,2721 $0

$409,5721 $0

$0 $0

$2,963,7241 $879,0241

($17,394,364) ($3,414,679)

$400,000 $350,000

$600,000 $276,500

$0 $0

$1,958,280 $514,224

$0 $0

$2,958,280 $1,140,724

$40,700,000 $108,386,000

$435,000 $435,000

$702,500 $500,000

$13,529 $13,147

$0 $0

$1,779,360 $1,732,048

$0 $0

$2,930,389 $2,680,195

chair and founder chair

president and CEO

vice-president, corporate development and general counsel

former president and CEO

Resources

Gold exploration and $530,0008 development $499,0008 6.2%

CEO

Steve Garcia,

Brian Kynoch,

Imperial Metals Corp TSX:III

Ian Terry Rozier,

Eastern Platinum Ltd TSX, AIM:ELR

Clifford Davis,

Nevsun Resources Ltd TSX:NSU

Mining

president and CEO

Daniel Friedmann,

MacDonald, Dettwiler and Associates Ltd TSX:MDA

Technology

executive vice-president

president

president and CEO

Sources: BIV research based on company's most recent management information circular. NR Not ranked NA Not available 1 - Converted from U.S. dollars 2 - 20,000 RSUs 3 - 15,000 RSUs 4 - 20,000 RSU's 5 - 15,000 RSU's 6 - Converted from U.S. dollar 7 - Converted from U.S. dollars 8 - Interest income 9 - Compensation as chair of Exeter Resource and co-chair of Extorre Gold 10 - Compensation as president of Exeter Resource and co-chair of Extorre Gold 11 - Royalty and other income 12 - Only includes revenue from continuing operations not sold to TPG Capital for $850 million in February 2011

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 paid executives 19

July 26–August 1, 2011 Business in Vancouver

Insider Trading

The following is a list of trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed by the week ending July 15. The information comes from a compilation of required reports filed with the BC Securities Commission within five calendar days of a change in an insider’s holdings. Insider: Francois Marland, vice-chairman Company: Yukon-Nevada Gold Corp. (TSX: YNG) Shares owned: 87,540,000 Trade date: July 12 Trade total: $11,570,000 Trade: Acquisition of 25 million shares for $0.445 per share. Insider: Francois Marland, director Company: Cadan Resources Corp. (TSX-V:CXD) Shares owned: 67,207 Trade date: July 12 Trade total: $1,160,000 Trade: Acquisition of four million shares at $0.29 per share.

Insider: David Demers, CEO Company: Westport Innovations Inc. (TSX:WPT) Shares owned: 2,521 (plus 473,537 PSUs) Trade date: July 6 Trade total: $586,711 Trade: Sale of 25,000 shares at prices ranging from $22.93 to $24 per share acquired through the exercise of options. Insider: Lance Newman, vicepresident, project development Company: Augusta Resource Corp. (TSX:AZC) Shares owned: 325,000 Trade date: July 11 Trade total: $319,000 (net) Trade: Sale of 100,000 shares at $4.97 per share following the acquisition of 100,000 shares at $1.78 per share through the exercise of options. Insider: David Howe, vicepresident, Mexico operations Company: Endeavour Silver Corp. (TSX:EDR)

Shares owned: 20,000 Trade date: July 13 Trade total: $189,725 (net) Trade: Sale of 30,000 shares with prices ranging from $9.85 to $9.89 per share following the acquisition of 10,000 shares at $3.29 per share and 20,000 shares at $3.67 per share through the exercise of options. Insider: Aeron Evans Company: Canaccord Financial Inc. (TSX:CF) Shares owned: 86,002 Trade date: June 29 Trade total: $183,260 Trade: Sale of 15,400 shares at $11.90 per share. Insider: Elaine Wong, vicepresident, strategic development Company: Westport Innovations Inc. (TSX:WPT) Shares owned: 38,630 Trade date: July 8 Trade total: $180,099 (net) Trade: Sale of 8,987 shares at $24.31 per share after acquiring 8,987 shares for $4.27 per share through the

exercise of options. Insider: Connie Lillico, corporate secretary Company: First Majestic Silver Corp. (TSX:FR) Shares owned: 0 Trade date: July 13 Trade total: $166,005 (net) Trade: Sale of 10,000 shares at prices ranging from $20.75 and $20.76 per share following the acquisition of 10,000 shares at $4.15 per share through the exercise of options. Insider: Glen Kayll, CFO Company: Coastal Contacts Inc. (TSX:COA) Shares owned: 18,288 Trade date: June 30 Trade total: $165,960 Trade: Sale of 50,000 shares at $2.50 per share and 16,000 shares at $2.56 per share following the acquisition of 66,000 shares through the exercise of options. Insider: David Korbin, director Company: Ivanhoe Mines

Ltd. (TSX:IVN) Shares owned: 15,000 Trade date: July 6 Trade total: $161,340 (net) Trade: Sale of 13,731 shares at prices ranging from $25.08 to $25.11 following the acquisition of 13,731 shares for $13.35 through the exercise of options. Insider: Peter Leo Hathaway, vice-president, exploration Company: Lumina Copper Corp. (TSX-V:LCC) Shares owned: 126,100 Trade date: July 4 Trade total: $143,400 Trade: Sale of 20,000 shares at $7.17 per share. Insider: David Hall, president and CEO Company: Aurizon Mines Ltd. (TSX:ARZ) Shares owned: 1,058,042 Trade date: July 5 Trade total: 136,600 (sale) Trade: Sale of 25,000 shares at prices ranging from $5.41

to $5.51 per share following the acquisition of 200,000 shares for $2.38 per share through the exercise of options. Insider: Michael Atkinson, director Company: Legend Power Systems Inc. (TSX-V:LPS) Shares owned: 1,511,000 Trade date: July 4, 7, 11, 12 Trade total: $130,590 Trade: Acquisition of 1.5 million shares at prices ranging from $0.09 to $0.106 per share. Insider: Darren Pylot, president and CEO Company: Capstone Mining Corp. (TSX:CS) Shares owned: 586,209 Trade date: June 24 Trade total: $120,164 Trade: Acquisition of 600 shares at $3.04 per share and 38,800 shares at $3.05 per share. rchu@biv.com

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Daily business news at www.biv.com July 26–August 1, 2011

Top 100 highest-paid executives in B.C. Ranked by total compensation in 2010 Rank '11 Executive

51 52 53 54

Company

Industry sector

Revenue '10/'09 Net income % change '10/'09 % change

Salary '10/'09

Bonus '10/'09

Other compensation '10/'09

Value of options exercised '10/'09

OptionsShare- based Pension based awards '10/ value '10/ awards '10/ '09 '09 '09

Long-term Total compcompensation '10/ ensation '09 '10/'09

Mark Maybank,

Canaccord Financial Finance Inc TSX:CF

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

NA $427,500

$1,596,077 $2,215,978

$573,918 $131,175

NA NA

NA $191,228

$743,187 $1,078,433

NA $0

$2,913,182 $4,044,314

William Shaver, president and CEO of DMC Mining Services

Quadra FNX Mining Mining Ltd TSX:QUX

$986,293,0042 $524,782,0302 87.9%

$177,612,4342 $91,908,0292

$420,000 $400,000

$208,619 $560,000

$2,020,680 $32,716

$0 $0

$191,918 $130,963

$0 $0

$2,841,217 $1,123,679

Tony Giardini,

Ivanhoe Mines Ltd TSX:IVN

Mining

$82,162,3322 $41,154,3152 99.6%

($217,802,222)2 ($319,946,877)2

$411,8712 $386,1742

$389,9852 $239,9942

$16,1242 $15,2502

NA $0

$119,2642 $1,740,9332

$1,869,3392 $0

$0 $0

$2,806,5842 $2,382,3512

Sheree Waterson, executive vice-president, general merchandise management and sourcing

Lululemon Athletica Retail Inc Nasdaq:LULU

$711,703,9992 $517,195,9292 37.6%

$125,490,2252 $66,555,1542

$379,4502 $357,6032

$347,5822 $257,4742

$14,5012 $52,7242

$1,655,7062 $0

$98,7432 $964,8722

$280,1862 $0

$0 $0

$2,776,1692 $1,632,6732

Alexander Molyneux,

SouthGobi Resources Ltd TSX:SGQ Telus Corp TSX:T; NYSE:TU

$82,162,3322 $41,154,3152 99.6%

($91,078,177)2 ($126,535,986)2

$517,0582 $272,1942

$308,9702 $359,7212

$0 $2,1772

$0 $0

$1,939,4132 $2,932,4642

$0 $0

$1,5912 $7,9942

$0 $0

$2,767,0322 $3,574,5502

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

$475,000 $475,000

$128,045 $104,856

$1,151 $1,151

NA NA

$0 $375,000

$1,278,045 $479,856

$883,000 $144,000

$0 $0

$2,765,241 $1,579,863

COO1

CFO

president and CEO

Kevin Salvadori,

Cecil Bond,

Ronald Vance,

group chairman

president and CEO

CEO

Jack Miller,

executive vice-president, business transformation and technology operations

Energy

Telecommunications $9,779,000,000 $9,606,000,000 1.8%

Gold exploration and Exeter Resource development Corp TSX:XRC, AMEX:XRA Teck Resources Ltd Mining TSX:TCK.B

$530,0003 $499,0003 6.2%

($35,817,000) ($30,978,000)

$320,0004 $230,000

$75,000 $100,000

$0 $0

$2,358,7554 $692,357

$0 $0

$2,753,7554 $1,022,357

$9,339,000,000 $7,674,000,000 21.7%

$1,975,000,000 $1,831,000,000

$600,000 $540,000

$443,800 $737,700

$27,943 $0

NA NA

$634,389 $142,096

$888,500 $441,145

$78,000 $70,200

$0 $0

$2,672,632 $1,931,141

David Kassie,

Canaccord Financial Finance Inc TSX:CF

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

NA NA

$2,140,721 NA

NA NA

$525,000 NA

NA NA

$2,665,721 $0

Michael Hawkins,

East Asia Minerals Corp TSX-V:EAS

$0 $0

($15,508,802) ($4,231,095)

$336,612 $277,980

$297,754 $0

$0 $15,277

$0 $0

$1,965,500 $162,500

$0 $0

$2,599,866 $455,757

Jeffery Pontius,

International Tower Mining exploration and development Hills Mines Ltd TSX:ITH Quadra FNX Mining Mining Ltd TSX:QUX

$116,9363 $126,4023 -7.5%

($17,868,326) ($9,773,923)

$284,080 $237,948

$958,770 $0

$8,895 $186,767

$0 $0

$1,230,179 $1,099,685

$0 $0

$2,481,924 $1,524,400

$986,293,0042 $524,782,0302 87.9%

$177,612,4342 $91,908,0292

$300,731 $332,500

$0 $500,000

$1,447,917 $19,950

$663,591 $0

$0 $215,532

$0 $0

$2,412,239 $1,067,982

John Greenslade,

Baja Mining Corp TSX:BAJ

$0 $0

($80,722,000) ($7,920,000)

$377,500 $337,000

$750,000 $14,583

$0 $0

$1,260,000 $406,308

$0 $0

$2,387,500 $757,891

Rod Baker,

Gaming Great Canadian Gaming Corp TSX:GC

$383,500,000 $382,200,000 0.3%

($21,900,000) $23,500,000

$443,077 $0

$500,000 $0

$75,000 $0

$0 $0

$1,336,899 $0

$0 $0

$3,808 $0

$0 $0

$2,358,784 $0

Eric Friedland,

Peregrine Metals Ltd TSX:PGM

$263,8303 $2,2233 11,768.2%

($17,008,673) ($1,896,823)

$264,0105 $196,2806

$0 $0

$2,066,967 $3,109,0596

$0 $0

$2,330,977 $3,305,339

chair and CEO

Ross McLeod,

$383,500,000 $382,200,000 0.3%

($21,900,000) $23,500,000

$531,400 $520,000

$634,870 $816,778

$78,022 $192,022

NA NA

$1,069,519 $453,488

$0 $0

$11,225 $10,500

$0 $0

$2,325,036 $1,992,788

Norman Pitcher,

Gaming Great Canadian Gaming Corp TSX:GCD Eldorado Gold Corp Mining TSX:ELD

$814,831,1332 $411,941,1692 97.8%

$212,224,2842 $116,942,2902

$500,000 $360,000

$642,188 $306,600

$0 $0

NA $1,667,173

$1,057,500 $0

$0 $0

$122,454 $70,924

$0 $0

$2,322,142 $2,404,697

Peter Rozee,

Teck Resources Ltd Mining TSX:TCK.B

$9,339,000,000 $7,674,000,000 21.7%

$1,975,000,000 $1,831,000,000

$530,000 $495,000

$394,000 $639,800

$34,487 $0

NA NA

$507,511 $142,096

$710,800 $441,145

$127,000 $46,000

$0 $0

$2,303,798 $1,764,041

CEP

J. Frank Callaghan,

Gold mining Barkerville Gold Mines Ltd TSX-V:BGM

$8,074,494 $0

($22,675,808) ($9,868,532)

$0 $0

$300,000 $0

$150,000 $120,000

$0 $0

$1,838,796 $0

$0 $0

$2,288,796 $120,000

Joseph Drake,

Movie and television $1,631,071,1682 production and $1,674,555,1172 distribution -2.6%

($28,987,565)2 ($203,776,623)2

$875,4152 $970,6752

$808,7652 $0

$4,0802 $4,8192

NA NA

$0 $422,4112

$479,1872 $552,7712

$0 $0

$2,167,4472 $1,950,6762

Peter Vinall, president and CEO, FSC7

Lions Gate Entertainment Corp NYSE:LGF Fortress Paper Ltd TSX:FTP

Paper

$34,753,000 $12,697,000

$228,846 NA

$101,164 NA

$0 NA

NA NA

$0 NA

$1,817,250 NA

$16,019 NA

$0 NA

$2,163,279 $0

Robert McFarlane,

Telus Corp TSX:T;

Telecommunications $9,779,000,000 $9,606,000,000 1.8%

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

$500,000 $500,000

$137,676 $115,250

$1,151 $1,151

NA NA

$0 $375,000

$1,287,676 $490,250

$202,000 $268,000

$0 $0

$2,128,503 $1,749,651

Bradley Kotush,

Canaccord Financial Finance Inc TSX:CF

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

$600,000 $570,000

$1,088,000 $720,000

$124,591 $25,639

NA NA

$0 $191,228

$301,064 $557,033

$0 $0

$2,113,655 $2,063,900

Harry Miller, president and CEO

Mining exploration and development

$414,5708 $286,2308 44.8%

($90,284,000)9 ($9,924,000)9

$0 $0

$168,00010 $108,00010

$0 $0

$1,932,690 $0

$0 $0

$2,100,690 $108,000

David Parker,

Clifton Star Resources Inc and Baja Mining Corp TSX-V:CFO, TSX:BAJ Finning International Inc TSX:FTT

Heavy equipment sales

$4,641,302,000 $4,737,541,000 -2%

($78,373,000) $130,823,000

$395,037 $400,000

$277,535 $191,120

$31,717 $29,367

$965,046 $0

$160,105 $227,876

$160,105 $195,590

$84,000 $99,000

$0 $0

$2,073,545 $1,142,953

CFO

senior vice-president, corporate development

former COO

president and CEO

president

CEO

COO

senior vice-president, commercial affairs

co-COO

executive vice-president and NYSE:TU CFO CFO

president, Finning (Canada)

Mineral exploration and development

Mining exploration and development

Copper exploration and development

$281,287,000 $198,310,000 41.8%

Sources: BIV research based on company's most recent management information circular. NR Not ranked NA Not available 1 - Also president and COO, Canaccord Genuity Corp 2 - Converted from U.S. dollars 3 - Interest income 4 - Compensation as CFO of Exeter Resource and vicepresident finance for Extorre Gold 5 - Combined salary as CEO of Peregrine Metals and Peregrine Diamonds 6 - Compensation as CEO of Peregrine Diamonds 7 - Hired on June 3, 2010 8 - Combined interest income 9 - Combined net loss 10 - Management fees

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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competitive edge!

July 26–August 1, 2011 Business in Vancouver

Top 100 highest-paid executives in B.C. Ranked by total compensation in 2010 Rank '11 Executive

Company

Industry sector

Revenue '10/'09 Net income % change '10/'09 % change

Salary '10/'09

Bonus '10/'09

Other compensation '10/'09

Value of options exercised '10/'09

OptionsShare- based Pension based awards '10/ value '10/ awards '10/ '09 '09 '09

Long-term Total compcompensation '10/ ensation '09 '10/'09

Robert (Don) Macdonald,

Quadra FNX Mining Mining Ltd TSX,AMEX:NG

$986,293,0041 $524,782,0301 87.9%

$177,612,4341 $91,908,0291

$319,3762 $302,9903

$62,5262 $133,6503

$914,6072 $24,1913

$0 NA

$756,9392 $1,284,3553

$0 $295,9233

$0 $03

$0 $0

$2,053,448 $2,041,109

Gerald Miller,

West Fraser Timber Forestry Co Ltd WFT:TSX

$2,885,900,000 $2,352,500,000 22.7%

$166,200,000 ($340,800,000)

$411,356 $411,360

$218,000 $0

$0 $0

$698,4064 $0

$0 $624,000

$614,600 $0

$97,700 $87,600

$0 $0

$2,040,062 $1,122,960

Rick Van Nieuwenhuyse,

Mining

$599,000 $1,609,000 -62.8%

($203,549,000) ($73,364,000)

$663,417 $644,667

$648,380 $436,700

$64,732 $117,451

$0 $0

$462,986 $3,317,704

$195,527 $933,709

$0 $0

$2,035,042 $5,450,231

Ross Glanville,

Mining exploration and development

$414,5705 $286,2305 44.8%

($90,284,000)6 ($9,924,000)6

$30,1257 NA

$0 NA

$1,953,500 NA

$0 NA

$1,983,625 $0

chair and CEO

NovaGold Resources Inc TSX:NG Clifton Star Resources Inc and Baja Mining Corp TSX-V:CFO, TSX:BAJ First Quantum Minerals Ltd TSX:FM

Mining

$2,449,308,1801 $2,128,729,9801 15.1%

($56,026,560)1 $625,190,2501

$926,9101 $899,3011

$720,9301 $342,5911

$28,0871 $0

$0 $0

$302,6661 $141,9471

$0 $0

$1,978,5931 $1,383,8391

Eric Roth, president and CEO

Extorre Gold Mines Gold and silver exploration and Ltd TSX:XG

$211,000 $0

($33,165,000) ($14,521,000)

$245,775 $0

$0 $0

$1,723,448 $0

$0 $0

$1,969,223 $0

Nicolas Sonntag,

$130,712,000 $121,837,000 7.3%

($37,636,000) ($24,425,000)

$407,500 $400,000

$231,650 $150,000

$39,925 $32,902

NA NA

$0 $2,095

$1,262,216 $0

$0 $0

$1,941,291 $584,997

Ronald Millos,

Teck Resources Ltd Mining TSX:TCK.B

$9,339,000,000 $7,674,000,000 21.7%

$1,975,000,000 $1,831,000,000

$500,000 $440,000

$380,700 $596,000

$24,909 $33,716

NA NA

$444,072 $106,572

$533,100 $327,020

$24,909 $33,716

$0 $0

$1,907,690 $1,537,024

Tony Pearson, vice-president, corporate development

Coal production and $82,162,3321 $41,154,3151 development 99.6%

($91,078,177)1 ($126,535,986)1

$207,1621 $0

$133,8871 $0

$0 $0

$1,552,3951 $0

$0 $0

$1,893,4441 $01

Steven Beeks, president and co-COO

Film production and $1,631,071,1681 $1,674,555,1171 distribution -2.6%

($28,987,565)1 ($203,776,623)1

$772,4251 $856,4781

$813,6211 $199,8451

$12,5311 $13,7721

$0 $427,0971

$0 $535,2061

$282,8681 $733,6361

$0 $0

$1,881,4451 $2,766,0341

CFO8

SouthGobi Resources Ltd TSX:SGQ Lions Gate Entertainment Corp NYSE:LGF Eldorado Gold Corp TSX:ELD

Mining

$814,831,1331 $411,941,1691 97.8%

$212,224,2841 $116,942,2901

$350,000 NA

$449,531 NA

$0 NA

NA NA

$1,057,500 NA

$0 NA

$19,497 NA

$0 NA

$1,876,528 $0

William Blake,

Luna Gold Corp TSX- Gold exploration and $16,588,0841 $0 development V:LGC

($16,354,812)1 ($2,416,632)1

$105,7411 $0

$0 $0

$1,762,7031 $0

$0 $0

$1,868,4441 $0

Timothy Hoare,

Canaccord Financial Finance Inc TSX:CF

$577,537,000 $477,721,000 20.9%

$38,497,000 ($47,651,000)

NA $0

$1,566,480 $1,892,689

$255,189 $121,239

NA NA

NA $0

$27,997 $651,459

NA $0

$1,849,666 $2,665,387

Russell Hallbauer,

Taseko Mines Ltd TSX:TKO; AMEX:TGB

$278,460,000 $188,902,000 47.4%

$148,598,000 $10,561,000

$495,000 $450,000

$370,000 $225,000

$0 $0

$847,788 $1,356,550

$0 $0

$120,864 $223,960

$0 $0

$1,833,652 $2,255,510

Elaine Wong,

$130,712,000 $121,837,000 7.3%

($37,636,000) ($24,425,000)

$318,750 $292,708

$210,925 $150,000

$13,750 $13,750

NA NA

$0 $38,666

$1,262,216 $0

$0 $0

$1,805,641 $495,124

Joe Nemeth,

$88,643,000 $6,644,000 1,234.2%

$90,517,000 $9,066,000

$374,868 $254,063

$320,710 $74,570

$51,257 $34,662

$0 $0

$204,000 $40,000

$848,726 $175,154

$1,799,561 $578,449

Giulio Bonifacio,

Technology Westport Innovations Inc TSX:WPT Pulp production Canfor Pulp Products Inc9 TSX:CFX Nevada Copper Corp Copper development TSX:NCU

$44,548 $52,473 -15.1%

($4,364,555) ($2,589,017)

$272,500 $250,000

$0 $0

$225,000 $0

$0 $0

$1,246,500 $415,250

$0 $0

$1,744,000 $665,250

Juan Carlos Villegas,

CFO

president and CEO director

Philip Pascall,

development

Westport executive vice-president and Innovations Inc president, Westport Europe TSX:WPT

Technology

and Asia CFO

Ed Miu,

president and CEO

CEO, Canaccord Genuity Limited president and CEO

executive vice-president, strategic development

president and CEO

Mining

Finning International Inc TSX:FTT SouthGobi Layton Croft, former vice-president, Resources Ltd external affairs and investor TSX:SGQ

Heavy equipment

$4,641,302,000 $4,737,541,000 -2%

($78,373,000) $130,823,000

$474,206 $454,622

$324,334 $263,499

$268,345 $73,760

$223,720 $0

$200,131 $227,876

$200,131 $195,590

$0 $0

$1,690,867 $1,215,347

Coal mining

$82,162,3321 $41,154,3151 99.6%

($91,078,177)1 ($126,535,986)1

$90,0861 $0

$25,7481 $0

$66,4441 $0

$0 $0

$1,491,8571 $0

$0 $0

$1,674,1341 $0

J.T. Lionel Martin,

COO

East Asia Minerals Corp TSX-V:EAS

Mineral exploration

$0 $0

($15,508,802) ($4,231,095)

$268,596 $255,243

$262,023 NA

$0 $15,798

$0 $0

$1,140,750 $100,000

$0 $0

$1,671,369 $371,041

John Sheridan,

$66,963,0681 $53,355,1221 25.5%

($3,420,900)

$548,8111 $558,2771

$555,6711 $386,1861

$37,9711 $48,6751

$0 $0

$259,3821 $131,6031

$258,5481 $210,4081

$0 $0

$1,660,3841 $1,335,1491

Jason Cohenour,

Technology Ballard Power Systems Inc TSX:BLD; Nasdaq:BLDP Sierra Wireless Inc Technology TSX:SW; Nasdaq:SWIR

$669,743,3971 $601,114,7361 11.4%

($15,241,490)1 ($45,563,461)1

$577,0381 $603,6851

$314,7021 $361,6481

$0 $28,9491

$0 $0

$330,6141 $136,7741

$431,4951 $780,0561

$0 $0

$1,653,8491 $1,911,1121

John Floren,

Methanex Corp TSX:MX

$2,025,383,8321 $1,368,273,0531 48%

$104,774,8171 $842,7741

$460,500 $450,000

$177,000 $182,000

$106,936 $106,026

$123,002 NA

$342,888 $98,802

$364,000 $105,950

$75,983 $74,250

$0 $0

$1,650,309 $1,017,028

Kenneth Stowe,

Northgate Minerals Mining Corp TSX:NGX

$499,549,9051 $553,828,0401 -9.8%

($73,847,950)1 ($56,534,366)1

$575,000 $560,000

$205,000 $336,000

$37,890 $36,714

$36,750 $0

$771,433 $961,294

$0 $0

$1,626,073 $1,894,008

100

Wayne Clogg,

West Fraser Timber Forest products Co Ltd TSX:WFT

$2,885,900,000 $2,352,500,000 22.7%

$166,200,000 ($340,800,000)

$309,000 $309,000

$163,800 $0

$0 $0

$710,9784 $0

$0 $372,000

$369,850 $0

$72,000 $65,600

$0 $0

$1,625,628 $746,600

president, Finning South America

relations

president and CEO

CEO

senior vice-president, marketing and logistics

president and CEO

senior vice-president, woodlands

Energy

Sources: BIV research based on company's most recent management information circular. NR Not ranked NA Not available 1 - Converted from U.S. dollars 2 - Combined compensation while CFO for NovaGold Resources and Quadra FNX Mining 3 - Compensation while CFO of NovaGold Resources Inc. 4 - Options surrendered for cash in 2010 5 - Combined interest income 6 Combined net loss 7 - Board member and committee retainer fees 8 - Appointed on January 1, 2010 9 - Formerly Canfor Pulp 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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Law

Daily business news at www.biv.com July 26–August 1, 2011

Government amps up immigration policy New regulations increase employer risk for non-compliance with Canada’s temporary foreign worker program process By Jen O’Rourke

ome of the biggest changes in years have recently been applied to Canada’s temporary foreign workers program (TFWP). The shakeup is aimed at emphasizing the “temporary” in the TFWP and providing stronger protection against exploitation for temporary foreign workers (TFWs) through stricter employer accountability. The new regulations, which came into effect April 1, propose some major changes to how employers fill positions with foreign workers. “We saw a need for clear regulations to better protect workers from poor treatment and to ensure that the temporary foreign worker program continued to address short-term labour and skills shortages,” Minister of Immigration, Citizenship, and Multiculturalism Jason Kenney said in a press release. The major changes include: •allowing Citizenship and Immigration Canada (CIC) to publish the name of a blacklisted company on its website;

Associate immigration lawyer Meera Thakrar warns that the new regulations in the TWFP mean a lot more risk for employers

•a t wo-yea r TF W P ba n for employers; •a broader four-year cap on work permits for some job categories; and •a more rigorous front-end approach to the TFWP approval process. The crackdown comes after several cases of exploitation of the program. And while the government

maintains its main intention is to enforce Canada’s immigration policy and protect workers, the new regulations expose employers to more risk than previous policy, according to Meera Thakrar, an associate immigration lawyer with Egan (allied with Ernst and Young LLP). She warns that employers need to be more careful in ensuring they’re compliant with the new regulations. The government can now look back at the previous two years to ensure employers have honoured all of the terms and conditions offered to a TFW when he or she is initially employed. If they haven’t, they could be blacklisted publicly on the CIC website and banned for two years from using the TWFP. They will, however, have a chance to provide justifications for any wrongdoings found by immigration authorities. “There are some justifications the employer can provide if it seems like something went offside,” Thakrar said. “It’s not that it’s immediate [and] your name goes on the list the next day.” W hi le t he govern ment is

reporting that the changes are aimed at making businesses more accountable, Thakrar cautioned that even business owners with the best of intentions can wind up in hot water. For example, she said that an employee wage increase is technically not in compliance with the way the new regulations are drafted.

“It certainly has a lot more teeth than previous regimes” – Meera Thakrar, associate lawyer, Egan

She advises employers to include wage clauses that are “subject to performance increases” to avoid any problems and emphasized the need for employers to inform immigration authorities about major changes to a TFW’s position. “Once your job duties are going really far beyond what you were initially brought in for, that’s where most likely you have a duty to go back to immigration and notify them and potentially get a new

work permit,” she said. The approval process is more aggressive now. The government focuses more on its front end and uses a “more rigorous assessment of the genuineness of the job offer.” The new four-year cap, which will affect a wider range of job categories than previous caps, will not be retroactive. Any TFWs that fall under the new cap will be subject to it as of April 1, 2011, and the soonest they can reach the limit of their permit is April 1, 2015. “This is a broader cap,” said Thakrar. “There were caps before, but they were more narrow. It’s going to limit the lengths of certain types of work permits to four years, where previously there was no such limit. They want the temporary foreign workers to be temporary.” Af ter the four-year cap is reached, a TFW would not be granted another permit to work in Canada for another four years. To account for labour and skills shortages, the federal government has allowed exemptions from the cap in some sectors. • news@biv.com

BUS NESS LEADERS TOURNAMENT

Registration now open! J

oin us on August 23 for the inaugural Business Leaders Golf Tournament presented by Business in Vancouver and Association for Corporate Growth (ACG) Vancouver Chapter. This full day event includes golf, networking reception and dinner. Don’t miss your opportunity to play golf with senior executives, dealmakers and professionals involved in corporate growth, development, and mergers and acquisitions.

When: August 23, 2011

Where: University Golf Club – 5185 University Blvd. Price: $175 for BIV subscribers, ACG and TMA members $200 for non-subscribers/members

Part proceeds go to Powerchair Football Canada, www.powerchairfootballcanada.com

Visit www.biv.com/events to register Presented by

sPonsored by ®

Vancouver’s deal making and corporate growth community

AssociAtion sPonsor

Law 23

July 26–August 1, 2011 Business in Vancouver

Trouble

DISCIPLINE •British Columbia

Securities Commission

British Columbia Securities Commission (BCSC) panels have reciprocated enforcement orders against a person convicted by the Provincial Court of British Columbia, and nine other individuals sanctioned by securities commissions in Canada, the regulator announced June 13. Under a section of the Securities Act that allows the commission to issue enforcement orders based on criminal convictions, a commission panel permanently banned from our markets Rod Woodward, who was found guilty by the Provincial Court of two counts of theft over $5,000 and two counts of fraud in excess of $5,000. The court found that Woodward, then employed as a financial advisor with Investor’s Group, deposited $185,000 of clients’ money into his own bank account rather than investing the funds in a company called Black Sea Minerals Inc. BCSC panels also reciprocated orders against nine persons sanctioned by the Alberta and Ontario Securities Commissions. They are: David C. Campbell, Abel Da Silva, Gurdip Singh Gahunia (a.k.a. Michael Gahunia), Robert John Harris, Timothy Kwan, Claudio Fernando Maya, Alan S. Price, Julian M. Sylvester and Ravinder Tulsiani. The executive director of the BCSC has issued a notice of hearing alleging that two B.C. men breached securities laws when they purchased securities in a mining company that was engaged in an acquisition, the regulator announced June 15. The notice alleges that both men had knowledge of the acquisition before it was made public. The notice of hearing alleges that David Charles Greenway and Kjeld Werbes purchased securities of Global Uranium Corp. with knowledge of the company’s acquisition of mining claims in Arizona (known as the

Anderson Property) before that information was made public. The notice also alleges that between late 2009 and early 2010, Greenway introduced the Anderson Property to Global Uranium as a possible acquisition opportunity, and recommended Werbes to the company as the solicitor to structure the transaction. Werbes acted as solicitor to Global Uranium, Concentric Energy Corp. (the company that owned the Anderson Property) and Greenway during the acquisition. Between March 31 and April 16, 2010, the period during which the acquisition took place, Greenway and Werbes were each in a special relationship with Global Uranium and had knowledge of the acquisition before it was generally disclosed. During this period, Greenway purchased 68,500 shares and Werbes purchased 20,000 shares of Global Uranium. These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on July 26, 2011.

BUYER’S ALERT Companies listed below,

which are not members of the Better Business Bureau, have failed to respond, as of July 15, 2011, to Better Business Bureau of Mainland B.C.’s efforts to mediate complaints from July 4 to July 8, 2011. 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. Crossroads Guitar The Guitar Exchange, Port Moody Dominelli European College, Burnaby Our Little Secret Corp., Vancouver Profit Plus Business Systems, Maple Ridge The following companies have

responded to the BBB subsequent to being published: Floor Depot, Surrey Kingsway Honda, Vancouver Red Door Discount Warehouse, Vancouver

Who’s Getting Sued These corporate writs were

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. Defendants: Black Forest Dairy Ltd. and Carolus Van Vlerken aka Carl Van Vlerken and 0873876 B.C. Ltd. and Murray Rossworn Inc. and Tianna Reimer and Maplecroft Farms (2010) Ltd. and HSBC Bank Canada and Her Majesty the Queen in Right of Canada and Rural Municipality of Corman Park No. 344 and Sure Crop Feeds Inc. 3201 30th Ave., Vernon and 4780 Sleepy Hollow Rd., Armstrong and 3201 30th Ave., Vernon and Box 705, 201–900 Belvedere St., Enderby and 816 Malcolm Rd., Enderby and 200– 2296 McCalllum Rd., Abbotsford and 3321 30th Ave., Vernon and 900–840 Howe St., Vancouver and 111 Pinehouse Dr., Saskatoon, SK and 300–31935 South Fraser Way, Abbotsford Plaintiff: National Bank of Canada 2900–550 Burrard St., Vancouver Claim: $5,206,175 against Black Forest and Van Vlerken for debt arising from a credit agreement; a declaration the judgment is secured by the security; a declaration the security is enforceable and constitutes a specific charge against property; an order; a declaration the security granted by Black Forest and Van Vlerken may be enforced by sale of the property; $5,206,175 against 0873876 as guarantor of the debt; a declaration the guaranteed amount is secured by a general security agreement; a declaration the security agreement is enforceable; a declaration the security

agreement may be enforced by sale of all or any part of 0873876’s personal property; orders against Black Forest, Van Vlerken and 0873876; and the appointment of a receiver manager. Defendant: Alan Lazauskas 652 Greene Rd., Kelowna Plaintiff: Skana Forest Products Ltd. 1303–20800 Westminster Hwy., Richmond Claim: $467,815 for unsold lumber inventory related to an employment contract; $9,175 for commission entitlement; damages for breach of contract; and costs for the unsold lumber inventory. Defendants: Heather Schmidt and Scott Moore and Bank of Montreal 5221 Lynn Pl., Delta and 20th floor, 250 Howe St., Vancouver Plaintiff: RABB Construction & Environmental Solutions Inc. 215–8171 Cook Rd., Richmond Claim: $149,425 for construction of a home; and a builder’s lien for $149,425. Defendant: Dr. Janet Ip 3029 Cambie St., Vancouver Plaintiff: Dr. H. Thomas Peters Medical Services Inc. 1816 W. Broadway, Vancouver Claim: A declaration the patient care agreement is valid; a declaration the defendant has breached the agreement; damages; and special damages for $67,500. Defendant: Leon Jeweller Ltd. 1136–4700 Kingsway, Burnaby Plaintiff: Sanghavi Diamonds Inc. 1141–550 South Hill St., Los Angeles Claim: US$56,076 for debt related to a jewelry sale. Defendant: Metro Ontario Inc. formerly known as The Great Atlantic & Pacific Co. of Canada Ltd. Addresses unavailable Plaintiff: Orca Specialty Foods Ltd. 220–4977 Trennant St., Delta Claim: $54,438 for debt related to delivery of

SUMMER GETAWAYS

seafood products. Defendants: Clearwater Contracting Ltd. dba Clearwater Environmental Group and McCulloch Ventures Ltd. and Lancelot Nicolaas McCulloch and LEC Engineering Contracting Ltd. 4868 Delta St., Delta and 1079 Skana Dr., Delta and 4596 Highland Blvd., North Vancouver Plaintiff: KOA Construction Inc. 203–2498 W. 41st Ave., Vancouver Claim: $30,882 for debt related to a landscaping contract; damages for breach of trust, or, an accounting and damages; and a tracing. Defendants: Dal-Tech Resources Ltd. and Dennis George Dallas 852 Seymour St., Vancouver and R.R.1 CC-1, Bowen Island Plaintiff: Mercedes-Benz Financial Services Canada Corp. dba Daimler Truck Financial 1460–800 W. Pender St., Vancouver Claim: $29,366 for a breached vehicle lease agreement; and an order. Defendants: Paul Valdimar Penketh John and Meralee Denise Guidi 1412 Charlotte Cres., Anmore Plaintiff: A.T.T. Stoneworks Ltd.

90 Glacier St., Coquitlam Claim: $13,892 for the supply and installation of granite countertops; and a builders lien for $13,892. Defendants: M.G.M. Construction Ltd. and Stephen McCabe and the Corporation of the District of Surrey 9889 River Rd., Delta and 9889 River Rd., Delta and 14245 56th Ave., Surrey Plaintiff: 635913 B.C. Ltd. dba Mustang Contracting Corp. 1220–1200 W. 73rd Ave., Vancouver Claim: $12,136 for labour and materials for electrical work; and a builders lien for $12,136. Defendants: M. Jorjezian Investments Corp. and Adrineh Sarvarian 220–7525 King George Hwy., Surrey and 2165 123rd St., Surrey Plaintiff: RMC Ready-Mix Ltd. 1010–1188 W. Georgia St., Vancouver Claim: $5,601 for concrete; and a builder’s lien for $5,601. Defendants: WMI-1 Holding Co. dba HomeSense and Winners Merchants International L.P., a limited partnership dba HomeSense 1700–666 Burrard St., Vancouver and 5771 Marine Way, Burnaby Plaintiff: Marta Czarkowska

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24 Law

Daily business news at www.biv.com July 26–August 1, 2011

Trouble 14305 Park Dr., Surrey Claim: Damages for injuries sustained when the plaintiff was cut on the right leg by the sharp edge of a display shelf; and health-care costs. Defendant: Her Majesty the Queen in Right of the Province of British Columbia as represented by the Minster of Transportation and Infrastructure 1001 Douglas St., Victoria Plaintiff: The Brick Warehouse LP Box 48600, 1200–200 Burrard St., Vancouver Claim: Compensation and disturbance damages for expropriation of property to build a new overpass on King Edward Street as part of the Port Mann Bridge/ Highway No. 1 expansion project; and damages. Defendants: Robert Suter and Rolgear Manufacturing Inc. Box 69 Black Valley Rd., Cache Creek and 9067 Church St., Fort Langley Plaintiff: Picquic Tool Company Inc. 800–885 W. Georgia St., Vancouver Claim: A declaration that Picquic is the owner of all right, title and interest in and to the Boardroom Ratchet Driver and the National Hardware Show Ratchet Driver arising from an intellectual property dispute; an

injunction; an order; and damages and an accounting. Defendant: Her Majesty the Queen in Right of the Province of British Columbia as represented by the Minister of Transportation and Infrastructure Address unavailable Plaintiff: RG Properties Ltd. 1600–1095 W. Pender St., Vancouver Claim: The market value of the plaintiff’s interest in the lands and area, arising from the transfer of lands under the Expropriation Act as part of the construction of the Port Mann/Highway 1 Project; the reduction in market value of the plaintiff’s interest in the land; the reasonable business losses incurred by the plaintiff that directly result from the construction or use of the transportation infrastructure for which the dedicated lands and the temporary statutory right of way were acquired; and the reimbursable costs under the agreement. Defendants: Ikea Properties Ltd. and Ikea Ltd. Box 11117, 1500–1055 W. Georgia St., Vancouver Plaintiff: Cheryl Anne MacNaughton 1260 Stonemount Pl.,

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Squamish Claim: Damages for injuries sustained when the plaintiff tripped and fell over a roll of carpet at an Ikea store in Coquitlam. Defendants: Cara Echino and Carrie-Lee Godfrey 12–2780 Alma St., Vancouver and 2–1145 Pendrell St., Vancouver Plaintiff: 0609362 BC Ltd. formerly dba Pacific Coast Total Solutions Inc. 410–900 Howe St., Vancouver Claim: A declaration the defendants are in breach of their respective employment agreements, arising from the creation of a competing business using the company’s proprietary information; declarations the plaintiffs are in breach of their duties of good faith and confidentiality owed to the company; further declarations; damages; an injunction; an order; and an accounting. Defendants: Cannondale Bicycle Corp. and Dorel Industries Inc. and Cycle Logic of Prince George and David Lee 9 Brookside Pl., George Town, CT and 300–1255 Av. Greene, Westmount, QC and 1443 3rd Ave., Prince George Plaintiff: Brett Denomey 1103–475 Howe St., Vancouver Claim: Damages for injuries and property damage sustained when a mountain bike failed and snapped in two while the plaintiff was riding it over a jump on Cranbrook Hill in Prince George. Defendant: AON Reed Stenhouse Inc. 900 Howe St., Vancouver Plaintiff: Linwood Homes Ltd. 8250 River Rd., Delta Claim: Damages for losses caused by negligent advice and misrepresentations related to an insurance policy, which resulted in the plaintiff failing to make a flood insurance claim within the policy time limitation. Defendants: British Columbia Hydro and Power Authority and

Asplundh Canada ULC 333 Dunsmuir St., Vancouver and Box 30, 2300–550 Burrard St., Vancouver Plaintiffs: Peter Reimer and Patricia Jeannie Reimer 1220–1200 W. 73rd Ave., Vancouver Claim: Damages arising from a trespass on the plaintiffs’ property and the removal of trees. Defendant: Whitewater Marine Corp. 466 Rousseau St., New Westminster Plaintiff: Randy Kroeze 924 Double View Dr., Camano Island, WA Claim: Damages for breach of contract for the design and installation of a jet in a motorboat. Defendants: Energie PGE Inc. and Plastiques Gagnon Inc. and Francois Gagnon and Monika Gagnon and Jean Gagnon 82 Rue Giasson, SaintKean-Port-Joli, QC and 117 Ave. de Gaspe Ouest, Saint-Jean-Port-Joli, QC Plaintiff: Endurance Wind Power Inc. 20570 56th Ave., Langley Claim: Judgment for the amount owing pursuant to a sales contract of Energie’s business assets, which included wind turbines; damages; and an accounting. Defendants: National Money Mart Co. and Justenna Enterprises Inc. and David Robertson and Interior Money Marts Ltd. and 579830 B.C. Ltd. and Edward Therien and Rod Charlton and 324917 B.C. Ltd. and Brent Therrien and 360788 B.C. Ltd. 401 Garbally Rd., Victoria and 215–8171 Cook Rd., Richmond and 11–60 Harlowe Rd., Hamilton, ON and 400–260 Harvey Ave., Kelowna and 800–1708 Dolphin Ave., Kelowna and 309–260 Harvey Ave., Kelowna Plaintiffs: Cheryl Lynn Robinson and Cynthia Elizabeth Kask 1801–808 Nelson St., Vancouver Claim: Brought under the class proceedings act: A declaration the collection

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Lawsuit of the week

Helicopter company seeks $292,416 for fuel-can damage Fort St. John’s Bailey Helicopters Ltd. has filed suit against a natural gas compressor company and one of its employees over an incident in which a helicopter was damaged after a fuel container was thrown into its rotor blades. According to a May 30 B.C. Supreme Court notice of civil claim, the incident occurred on November 6, 2009, when a Bailey Helicopters pilot landed his aircraft at a compressor site near Fort St. John. The pilot was transporting Ken Dobb, an employee of Compression Technology Inc., at the time. The suit alleges that as Dobb unloaded his work gear from the rear cargo compartment of the helicopter, he threw an empty plastic fuel container into the aircraft’s moving main rotor blades. Court documents further allege the fuel container caused damage to the rotor blades, rendering the aircraft inoperable. Bailey alleges the replacement and repair costs for the helicopter totalled $165,000. The company further alleges that it incurred $2,910 in expenses to move the aircraft from the site, $18,062 for the prorated cost of replacing damage components and a loss of use of the aircraft and $103,908 for the use of a replacement helicopter and financing costs. Bailey also claims it incurred further fees and disbursements relating to the incident totalling $2,536. The aircraft company is seeking $292,416 for the alleged incident. A notice of response had not been filed by press time.

of the franchisees’ first party cheque-cashing fees constitute an unconscionable trade act or practice; an order; damages in conspiracy; a declaration Robertson, Therrien, Charlton and Therrien are liable to the class members; and an order.

Ltd. and Gurmail Dhaliwal and Chamkaur Dhaliwal Box 48600, 1200–200 Burrard St., Vancouver Claim: Compensation and disturbance damages arising from expropriation for the widening of King Road and Clearbrook Road.

Defendants: United Steel and Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industries and Service Workers Union and Service Workers Union District 3 Western Canada 300–3920 Norland Ave., Burnaby Plaintiff: Christian Labour Association of Canada 100–15483 104 Ave., Surrey Claim: Damages for defamatory statements.

Defendants: Copcan Contracting Ltd. and City of Kimberley and FortisBC Energy Inc. (formerly Terasen Gas Inc.) and ABC Co. #1 5732 Hammond Bay Rd., Nanaimo and 340 Spokane St., Kimberley and 1000–1111 W. Georgia St., Vancouver and 25th floor, 700 W. Georgia St., Vancouver Plaintiffs: Dawn Fedyk and Trevor Fedyk 10th floor, 888 Dunsmuir St., Vancouver Claim: Damages for losses sustained from a fire caused by a gas line that was disturbed.

Defendant: The City of Abbotsford 32315 South Fraser Way, Abbotsford Plaintiffs: C&G Dhaliwal

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Defendant: Hay’s Roof Management Ltd. 6–8247 124th St., Surrey Plaintiff: The Owners, Strata Plan VR1343 100–1450 Creekside Dr., Vancouver Claim: Damages for breach of a roofing contract that caused leaks and thus damages to the plaintiff. Defendants: Coast Mountain Bus Co. Ltd. and John Doe 13401 108th Ave., Surrey Plaintiff: Nathan Milton Lam 57 Agnes St., New Westminster Claim: Damages for a bus that rolled backward and crashed into Lam’s home. •

For the record

July 26–August 1, 2011 Business in Vancouver

Chris Wieser joins Avison Young as a multi-family and investment sales associate

Jill Earthy is CEO of the Forum for Women Entrepreneurs

Eryne Ordel joins Mavi Jeans Canada as PR and marketing manager

Helena Cox and Sasha Perrin join Peak Communicators as account executive and research co-ordinator, respectively

People on the Move Email your For the Record

Vancouver Island district and vice-president, Vancouver Suburban District, for BMO. Donkers was previously district vice-president, personal banking, Vancouver suburban and director, commercial banking, midmarket in Greater Vancouver for BMO. Jensen was previously in the corporate finance group in credit risk and structures for BMO.

Catalyst Paper. He was previously vice-president, operations, at Catalyst.

Kathryn Britnell has joined Reliance Insurance Agencies Ltd. as account director. She was previously an account executive at Axis, vice-president at Vanguard Insurance and branch manager at AC&D Insurance.

Chris Wieser has joined Avison Young as a multifamily and investment sales associate. He was previously an associate with NAI Commercial.

Vu l i m i r i h a v e b e e n appointed director and head of the audit committee and board member, respectively, at Eagle Star Minerals Corp. Leversage was previously manager and team leader, Vancouver, for TD Securities Inc. and vice-president and director of RBC Capital Markets. Vulimiri is founder and executive chair and CEO of Nortec Minerals Corp. and was previously founder and chair of Frontier Pacific Mining Corp. and San Fernando Mining Co.

information to: fortherecord@biv.com. Please include a high-resolution, colour headshot where possible.

•Biotech/

Life Sciences

Matthew Hall has been appointed to the board of Burcon NutraScience Corp. He is an associate with GoodBrand and was previously managing director and CEO of the food, coffee and beverages division of Nestle UK and senior vice-president, global marketing communications and sales, at Nestle.

•Communications/PR

Eryne Ordel has joined Mavi Jeans Inc. Canada as PR and marketing manager. She was previously senior promotions planner at Best Buy Canada Ltd. Helena Cox and Sasha Perrin have joined Peak Communicators as account executive and research coordinator, respectively. Cox was previously at Frank PR and Perrin was previously an intern at Peak.

•Education

Kurt Heinrich has been appointed public relations and media specialist for the Vancouver School District. He was previously an account manager at Peak Communicators.

•Energy

Lindell Bridges has been appointed vice-president, ex plor at ion, at Rea l m E ner g y I nter n at ion a l Corp. He was previously senior vice-president of geoscience at EQT Corp., exploration manager for EOG Resources and geological manager, eastern division, for Chesapeake Energy Corp.

•Finance

Joanne Gassman, Henry Donkers and Shelly Jensen have been appointed s en ior v ic e -pre sident , B.C. and Yukon division, vice-president, Vancouver suburban district, and vice-president, Vancouver Island district, respectively, for BMO Bank of Montreal. Gassman was previously vice-president,

•General

Jill Earthy has been promoted to CEO of the Forum for Women Entrepreneurs (FWE). She was previously executive director of FWE and is co-owner and director of Momcafe Network Inc.

•Legal

Stockwell Day has been appointed a senior strategic adviser, Asia-Pacific region and South America, for McMillan LLP. He was previously an MLA, MP and a senior cabinet minister at the provincial and federal level, including president of the treasury board, minister of international trade, and minister responsible for the Asia-Pacific gateway for Canada.

•Manufacturing

Brian Johnston has been appointed vice-president, technica l ser v ices, at

Careers

•Media

Sa ma nt ha R icha rdson has been appointed vicepresident, director of media operations, at DSA Media Network. She was previously media director for DSA’s Langley office.

•Real Estate

•Resources

Duncan Manson has been appointed interim CEO of ERA Carbon Offsets Ltd. and its subsidiary, ERA Ecosystem Restoration Associates Inc., following the resignation of Robert Falls who remains chair of the board. Manson is a founding director and legal counsel of ERA and senior counsel at Owen Bird Law Corp. Spiros Cacos has been appointed head of corporate communications and de velopment at International Enexco Ltd. He is manager of investor relations at CanAlaska Uranium Ltd., a consultant of CanAlaska Ventures Ltd. and Freegold Ventures Ltd. and manager of investor relations and corporate finance for Pacific North West Capital Corp. Jill Leversage and Mohan

Matthew Watson and James Harris have been appointed to the board of Citation Resources Inc. and Watson has been appointed CEO of the company, replacing Gunther Roehlig. Watson was previously COO of Carmanah Technologies. Harris is corporate secretary of Citation and chair of Entree Gold Inc. R ichard Ha ll has been appointed president and CEO of Northgate Minerals Corp. He was previously president and CEO of Metallica Resources Inc. Michael Hepworth and Paul Sarjeant have been appointed to the board of Firesteel Resources Inc. Jacques Soroka has resigned as interim CEO and director and Walter Wakula, chair of Firesteel, will assume the role of interim CEO. Hepworth is vice-president, corporate development, at G4G Resources Ltd. and is also responsible for corporate de velopment at

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

Work With us & groW a career Glacier Media Group is growing. Graphic Designer Humboldt Journal Closing date: August 19, 2011 Email: journal.admgr@sasktel.net Service Desk Support – Tier 1 Glacier Media Inc. Closing date: July 29, 2011 Email: jmiller@glaciermedia.ca

quoting “Tier 1 Technical Support” in the subject line

Check our job board regularly for the latest openings: www.glaciermedia.ca/careers

Joanne Gassman is senior vice-president, B.C. and Yukon division, BMO Bank of Montreal

Samantha Richardson is vicepresident, director of media operations, at DSA Media Network

Kathryn Britnell joins Reliance Insurance Agencies as account director

Northern Iron Corp. Sarjeant is president and CEO of Grandview Gold Inc. and was previously senior geologist, international exploration group, at Echo Bay Mines.

Irvin & Johnson Ltd.

Michael O’Brien has been appointed interim president of Redtail Metals Corp. following the resignation of Greg Dawson. O’Brien is CFO of Golden Predator Corp. and Silver Predator Corp. He was previously CFO of Africo Resources Ltd. and

Greg Lucero ha s been appointed vice-president, sustainable development, at Wildcat Silver Corp. He was previously county manager for Santa Cruz County in Arizona, where he also served as the chief lobbyist for the county at the state legislature and US Congress. Paul Schlauch and Norman Anderson have been appointed director and chair, respectively, at Rare

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Tickets: kidsupfrontvancouver.com or call: 604 266 5437 Please join us at Vancouver’s most fun fundraiser!

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26 for the record

Daily business news at www.biv.com July 26–August 1, 2011

COBS Bread staff and Big Sisters of BC Lower Mainland staff, including former Big Sisters of BC Lower Mainland executive director, Shannon Newman-Bennett (centre left) and COBS Bread marketing manager, Michelle Duck (centre right), with artwork created by a Little Sister

Adrienne Bakker, president and CEO, RCH Foundation; Ted Carlson, president, Mainland Sand & Gravel Ltd.; Janis Carlson; and William Siu, director of medical imaging, RCH

Element Resources Ltd. Stephen Quin has stepped down as director. Schlauch was previously a partner with Holland & Hart and is a past president of the International Mining Professionals Society. Anderson was previously chair and CEO of Cominco.

Giving Guide

2012

Regional PhilanthRoPic oPPoRtunities

Publication Date September 27, 2011

Promote your corporate giving philosophy and the non-profits you support to B.C.’s business leaders Business In Vancouver Media Group, publishers of Business in Vancouver newspaper, Western Investor and more than a dozen business-related magazines, are delighted to launch an exciting new print and digital publication called Giving Guide – Regional Philanthropic Opportunities. This informative glossy, full-colour magazine will showcase the diverse range of non-profit associations and the organizations that so generously support them here in B.C. Giving Guide provides both sponsors and non-profits with a great opportunity to share their story with the region’s business leaders. Non-profits play a huge role in improving the quality of life of residents throughout the region. This new essential reference tool – with yearlong presence in print and online will showcase a nonprofits compelling mission, progress, governance and many other initiatives and encourage other business leaders to support non-profit associations in our region.

Dan Larsen has been appointed to the board of Ivanhoe Mines. He is controller and global head of planning and reporting at Rio Tinto. Bruce McLeod has stepped down as president and CEO of Troon Ventures Ltd. in order to devote more time to his role as president and CEO of Mercator Minerals Ltd. Colin Benner has been appointed interim president and CEO of the company.

Companies on the Move • Name change

Giving Guide

2012

Regional PhilanthRoPic oPPoRtunities

A guide to British ColumBiA's philAnthropiC Community • Non-profits • Foundations • Cultural organizations

Seymour Ventures Corp. has changed its name to Rare Earth Industries Ltd. and will commence trading under the new symbol TSXV:RND. Callinan Mines Ltd. has changed its name to Callinan Royalties Corp. and will continue to trade as TSX-V: CAA.

Hats Off Business in Vancouver welcomes submissions from

Call today: For more information please contact Katherine Butler at 604-688-2398 or kbutler@biv.com.

local small businesses and large corporations alike that demonstrate examples of corporate philanthropy and community involvement in the Vancouver area. Highresolution images are also welcome. Peter A l l a rd , he a d of Peterco Holdings Ltd., donated $11.86 million to the UBC faculty of law to help fund its new building; establish an international prize that supports freedom, integrity and human rights; and create an online historical faculty archive. C OB S B r e a d d o n a t e d $43,344 to Big Brothers Big Sisters Canada. Funds were raised through an in-store scone fundraiser and donation collection and through sponsorships of Big Brothers Big Sisters fundraising events. Mainland Sand & Gravel Ltd. donated $15,000 to the Royal Columbian Hospital Foundation as part of its title sponsorship of RCH Foundation’s SHINE Gala. The BC Hydro Power Pioneers, Vancouver chapter, donated $1,000 to the Arthritis Society, BC and Yukon division, to fund vital arthritis research and support programs in B.C. Ellen Kennett, volunteer at Peace Arch Hospital, received the Outstanding Citizen on the Peninsula award from the City of White Rock. •

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Datebook

July 26–August 1, 2011 Business in Vancouver

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 Professor Stephen Toope September 14, 2011, 11:45 AM: Professor Stephen Toope, President & Vice-Chancellor University of British Columbia. $69 members and guests/$96 future-members (+HST). The Fairmont Waterfront, Waterfront Ballroom, 900 Canada Pla ce Way. Va n co u ver, B C . reservations@boardoftrade.com. www.boardoftrade.com.

Conferences, Conventions, Tradeshows 20/20 SMART Session: Market Research and Assessment August 18, 2011, 8:00 AM: Effective market research will increase the probability of a successful product launch. This session will introduce tools and techniques for conducting effective market research and assessment in the product development process. $25 members/$35 non-members. Hampton Inn & Suites, 19500 Langley Bypass (Route 10). Surrey. Kimberly Hall: 604-713-7809, kimberly.hall@cme-mec.ca. http:// bc.cme-mec.ca/. 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, smart investors know it’s imperative to stay informed and educated. Free admission. Vancouver Convention Centre, 1055 Canada Place. Vancouver. 800-970-4355. http:// www.moneyshow.com/tradeshow/ vancouver/world_moneyShow/ main.asp?scode=023199. APEGBC Annual Conference & AGM October 13, 2011, 8:00 AM: Join us as we celebrate accomplishments in the professions of engineering and geoscience. As BC’s premiere engineering and geoscience event, the Annual Conference and AGM are sure to offer participants valuable opportunities to network with leading professionals in these industries. Prices vary. Delta Grand Okanagan Resort and Conference Centre. Kelowna, BC. Shirley Chow: 604-412-4865, ac2011@apeg.bc.ca. http://www.apeg.bc.ca/ac2011/.

Courses, Workshops, Seminars Finding Love Online July 27, 2011, 6:30 PM: Online dating is a huge industry and there are a multitude of options out there. Join us for a free online seminar to hear what we’ve learned from our research into online dating sites. Free. Go to www. dating4boomers.com and click EVENTS to register. Online event. admin@dating4boomers.com. SharePoint 2010 as a Records Management and Retention Solution August 19, 2011, 1:30 PM: Attend a free seminar on how SharePoint 2010 can be used for records management and retention. The presenter is Marcel Roy, SharePoint Specialist and Records Manager. Free. BCIT Downtown Campus, RM 281, 555 Seymour Street. Vancouver. pat@tracrecords.ca. www.tracrecords.ca/events. Canadian Securities Course (CSC) September 8, 2011, 8:00 AM: Be qualified to apply for licensing as a mutual funds salesperson. Sign up for the CSC at Ashton College. Contact an Admissions Adviser now. Ashton College. Vancouver. 604-899-0803, info@ashtoncollege. com. www.ashtoncollege.com. Foundation in Sustainable Community Development September 15, 2011, 9:00 AM: This course addresses the confusion surrounding sustainabilit y and presents the certificate’s vision of sustainable community development and related principles. $900. 515 W. Hastings St. Vancouver. Joshua Randall, 778782-5254. http://www.sfu.ca/city/ course1popup.htm. CTT+ Train the Trainer Course September 19, 2011, 8:30 AM: Anybody who needs to train groups of people in an effective and efficient manner can benefit from this course. Perfect for those looking to show instructional presentation skills for their MCT designation. $995/person. 555 Seymour Street. Vancouver. Bart Simpson: 888-480-1629, bart@trab. com. www.trab.com. HR Metrics Benchmarking Service - Demo & Overview September 28, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo, Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@ bchrma.org. http://www.bchrma. org/content/events/ls/details. cfm?EventID=035-252. Applications in Sustainable Community Development September 30, 2011, 9:00 AM: Through field trips and presentations by sustainability project champions, you will explore the applic ation of sustainability principles in a variety of programs, projects and business ventures. $600. 515 W. Hastings St.

Vancouver. Joshua Randall, 778782-5254. http://www.sfu.ca/city/ course2popup.htm. HR Metrics Benchmarking Service - Oct 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. Sustainable Economics for the Real World November 4, 2011, 9:00 AM: This course provides an overview of the emerging field of sustainable economics, as well as the tools for building the business case for sustainability. $600. 515 W. Hastings St. Vancouver. Joshua Randall, 778782-5254. http://www.sfu.ca/city/ course3popup.htm. Communicating Sustainability for Awareness, Accountability and Action November 25, 2011, 9:00 AM: This course provides tips and tools for effective communications practice and examines how sustainability is perceived by the public. $600. 515 W. Hastings St. Vancouver. Joshua Randall, 778-782-5254. http://www. sfu.ca/city/sust906.htm. HR Metrics Benchmarking Service - Nov Demo & Overview November 30, 2011, 9:00 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@ bchrma.org. http://www.bchrma. org/content/events/ls/details. cfm?EventID=035-253. HR Metrics Benchmarking Service - Jan Demo & Overview January 18, 2012, 9:00 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. Complimentary. Online. Liz Whalley, Metrics Specialist, lwhalley@ bchrma.org. http://www.bchrma. org/content/events/ls/details. cfm?EventID=035-254.

Festivals Dances for a Small Stage 24 August 10, 2011, 8:00 PM: A wildly energized, cabaret-themed evening of cutting-edge choreography at The Legion on The Drive. Doors open at 7pm. 19+ only. Tickets: $20 cash at door. 2205 Commercial Drive. Vancouver. http://movent. ca.

Golf Tournaments T.I.P. Invitational Golf Tournament July 26, 2011, 11:00 AM: Swing! At the Sixth Annual Tourism Industry Partners (TIP) Invitational Golf Tournament. All proceeds from this event will foster future generations of tourism professionals through scholarships and bursaries to colleges and suppor ting

www.bivdatebook.com

daily online edition

BUSINESS TODAY QHR, Telus partnership targets prairie customers Optimed Software Corp., a division of Kelowna-based QHR Technologies Inc., is partnering with Telus Health Solutions to bring health record management to two million Saskatchewan and Manitoba residents. The partnership will connect Optimed’s EMR software to Telus’ e-health consumer platform, which allows Canadians to manage their health information. Thursday, July 21

Province, Tlingit sign land-use agreement The provincial government and the Taku River Tlingit First Nation have signed an agreement providing resource development opportunities and creating 13 new protected areas for more than three million hectares

in the Atlin Taku region in Northwestern B.C. The Taku River Tlingit have already begun to work with mining developers in the area on potential resource development projects. Wednesday, July 20

Casino operators continue buying spree Gateway Casinos & Entertainment Ltd. has bought Boardwalk Gaming & Entertainment Inc.’s B.C. assets, including community gaming centres in Mission, Squamish and Surrey. In April, Great Canadian Gaming Corp. (GCG) (TSX:GC) bought Chilliwack Bingo for $10 million. Tuesday, July 19

China surpasses U.S. as top B.C. lumber importer China has surpassed the United States for the first

time as the top export market for B.C.’s softwood lumber. In May, B.C. shipped $122 million worth of lumber to China versus $119 million to the United States. From January to May, B.C. exported 2.8 million cubic metres to China – more than double last year’s volume and value. Monday, July 18

Cantronic Systems lands $4.5m Chinese contract Coquitlam-based video security surveillance technology company Cantronic Systems Inc. (TSX-V: CTS) has won a contract to provide video security and protection systems in China’s Jiangsu province. The project, which is slated to begin in September, is worth approximately $4.5 million. Monday, July 18

Full stories and other local business news at www.biv.com/businesstoday Daily business news direct to your inbox! Sign up at www.biv.com/newsletters

organizations. Please see our website for prices. Fairmont Chateau Whistler Golf Club. Whistler. tipgolf@gmail.com. www.tipgolf.ca. 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 full day event including golf, dinner and great prizes! $175 BIV subscribers, ACG or TMA members/$200 general public. University Golf Club, 5185 University Blvd. Vancouver. Azadeh Hollmann: 604.608.5197, ahollmann@biv. com. https://www.eplyevents.com/ BusinessLeadersGolfTournament.

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Networking functions Sometimes all it takes is a small gesture to brighten Mature Women’s Network someone’s day. Help make the world a better place, Annual Bus Trip one smile at a time. August 6, 2011, 8:45 AM: An Go to peopleforgood.ca to join the movement. invitation to women over 40 years for our annual day bus trip. Includes lunch, museum tours, farms, historic sites and gift shops in the Harrison area. Our bus trips are always a highlight of the year for an enjoyable social day. $30.00 nonmembers (includes membership for balance of the year). 411 Dunsmuir Street. Vancouver. Prepay to register. Call 604-681-3986 or email m_miller77@hotmail.com. http://upcoming.yahoo.com/ PFG967_Save_sm_new 3.125" x 4.82" 3.125" x 4.82" People for Good event/8149717/BC/Vancouver/ Save! PFG967_Save_sm_new.indd 11-07-05 4C 1 n/a n/a Women39s-Annual-SummerFile Name

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Daily business news at www.biv.com July 26–August 1, 2011

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Timothy Renshaw B.C. in need of Plan B for Site C

needs a short power nap – or at least a time-out in the corner bedroom to get things straight on energy generation in the province. Site C, for example, warrants a serious rethink. I know, I know: construction of the third dam on the Peace River is going to generate a lot of jobs – an estimated 35,000 direct and indirect – and a lot of renewable energy. Hard to pull the plug on that. But there are a growing number of hard questions needing more than softball answers. Public Offerings’ resident megaproject financials enthusiast (Syd C) has compiled a lengthy list. They’re not all going to fit into this stick of type, but here are some key points. First: the project is going to be very expensive. Syd C is big on numbers, and Site C is a big number, whichever way you slice it. Around $8 billion according to press release estimates, but it will be closer to $11 billion when all is said and done. Not to worry, says Hydro. Power rates “are not affected by projects in the development stage.” Phew! A free ride for a few years, until construction starts, and then someone has to pay all of those shortterm jobs with long-term debt. Assuming an $8 billion cost with an 80/20 debt-equity ratio, consumers will be on the hook for around $6.4 billion in debt and interest to service Site C. Must be worth the investment, though, aside from all those government jobs created. Right, Syd? Apparently not. Hydro estimates Site C will add roughly 5,100 gigawatt hours (gWh), or 9%, to the grid of around 55,000 gWh. Syd’s not impressed. The gain, says he, “is dwarfed by the project’s 50% impact on Hydro’s balance sheet.” And because the dam is downstream from the Peace River’s other generating systems, its ability to provide power year-round to meet peak demands (capacity) is a scant 53%. Site C is also distant from

customers. That means roughly 6% to 10% of its power will be lost on its way to market, and, compared with what’s available elsewhere, it will be pricey. According to Hydro, at between $87 and $95 per megawatt hour (mW/h) it’s “among the most cost-effective options available for BC Hydro for a new electricity generation project.”

It’s not just residential consumers who will be saddled

Cartoon by Rice

At Large

with Site C’s higher energy costs But, as Syd points out, power from across the border and elsewhere is available at $30 to $41 per mW/h. It’s not just residential consumers who will be saddled with Site C’s higher energy costs. The province’s mining and industrial customers will also have to bear them, which eliminates another competitive edge in the global market. Meanwhile, as Syd suggests, the natural gas-fired Burrard thermal power generation plant, which has roughly 70% more effective capacity than Site C, could be refurbished to deliver a 100% capacity year-round at a fraction of Site C’s cost and take advantage of B.C.’s abundant natural gas resource. It’s also near the area of most demand, “thus avoiding distribution losses and a flooded valley.” Syd’s also interested in knowing why Hydro maintains that population growth of roughly 1.2 million (27%) over the next 20 years will increase electricity needs 40% over 2012’s estimated demand when a population increase of 1.1 million (33%) in the previous 20 years increased demand by only 22%. Good questions that await good answers. In the meantime, they warrant sober second thoughts on a major undertaking that could saddle the province with an energy white elephant it can ill afford. • Timothy Renshaw (trenshaw@biv. com) is the editor of Business in Vancouver. His column appears every two weeks.

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.

Peter Ladner Time to bite the bullet on improved transit

K, everyone. It’s time to stand up and be counted. Are you in favour of improved transit in our region? If yes, do you have a better proposal to pay for it than a $0.02-a-litre increase in fuel taxes, plus some stillto-be-determined combination of vehicle levy, road pricing, carbon tax revenue or property tax increases? That’s where the regional mayors’ council and the provincial government have landed, working at a level of collaboration that hasn’t been seen in this region in decades. As a key player on the Mayors’ Council on Regional Transportation puts it, there is no Plan B. Either we take this difficult step or we stall on repairs and improvements to a transit system that’s vital to this region’s economic and social health. And to families, Premier Clark! The gas tax increase has been portrayed in the media as simply a way to match senior government contributions and get the Evergreen Line from Lougheed to Coquitlam built, finally. Actually, the Evergreen Line is less than half the package of improvements in the TransLink plan. It also includes: •a 9% increase in bus service hours. (Bus pass-ups are now common in Vancouver, Port Moody and Surrey.); •a new B-Line service in Surrey to connect Guildford, Surrey Central, and White Rock; •a bus between White Rock and Langley;

•bus rapid transit on Highway 1 and over the new Port Mann Bridge in 2013, connecting Langley and Surrey with the SkyTrain network at Lougheed Station; •SkyTrain station and SeaBus terminal renovations to add capacity; and •restored capital funding for roads ($20 million) and cycling ($6 million).

There’s also a startling consensus of politicians and business leaders endorsing some form of road pricing Notice what’s missing from that list: any rapid transit along Broadway, the self-financing Burnaby gondola, SkyTrain extension in Surrey, a new Patullo Bridge, the North Fraser Perimeter Road, Vancouver’s downtown streetcar, the province’s promised new fuel-efficient buses… . Just to get what is on the list, TransLink’s board, with the mayors’ council’s approval, has to come up with another $70 million a year. With a fuel-tax increase delivering $40 million, there’s still $30 million missing, even after TransLink’s purge of $55 million in internal costs. There’s a big opportunity to get this right, getting TransLink the steady long-term funding it so desperately needs to seriously reduce congestion and increase personal mobility.

It starts with the unprecedented cooperation between TransLink and the Ministry of Transportation and Infrastructure, with minister Blair Lekstrom promising that the province will co-sponsor TransLink’s next (2045) plan and help engage stakeholders in picking from a gnarly assortment of new funding sources in time for the spring 2012 legislation, thus bypassing a potential property tax increase. There’s also a startling consensus of politicians and business leaders endorsing some form of road pricing. A group of senior transportation decision-makers, politicians and business leaders brought together in May by the fledgling Sustainable Transportation Coalition supported using a portion of the post-2012 carbon tax (87%), a vehicle levy (68%) and road pricing (53%) to get the missing $30 million and more. There’s widespread agreement that while these politically volatile new measures are necessary, they have to be finessed to allow relief to people in areas without transit, to people who drive fuel-efficient cars and to those who shift their travel to off-peak hours. It’s so much easier to foment anger about increased taxes than it is to sell difficult improvements to build essential infrastructure. One gets you ratings and political popularity. The other gets results that make this region livable and prosperous. • Peter Ladner (pladner@biv.com) is a founder of Business in Vancouver and a former Vancouver city councillor. His book, The Urban Food Revolution: Changing the Way We Feed Cities, will be published by New Society in October 2011.

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comment 29

July 26–August 1, 2011 Business in Vancouver

Labour Climate

Geoff Meggs Temporary foreign workers becoming a permanent HR force in small-town B.C.

’s temporar y foreign workers, a group once dominated by live-in caregivers and agricultural workers, are not only becoming more skilled, they’re also turning into a growing and permanent feature of B.C.’s workforce. Once focused on low-paid jobs that Canadians were unwilling to do, the temporary foreign worker (TFW) program is now delivering highly skilled workers in large numbers to employers across the province. The stock of foreign workers – the total number of TFWs in B.C. at any given time – now sits at around 70,000, nearly equivalent to the entire population of Prince George. Don’t expect that number to decline, even in a recession. A new report by the BC Business Council highlights the staggering increase in TFWs in this province since 2002, their greater job diversity and their rising importance to small-town B.C.’s economy. Once second-tier players in the use of TFWs, B.C. employers are recruiting a growing share

of temporary foreign workers in Canada, increasing the number of TFWs in the province 250% since 2002. Even more significantly, says the business council, about 27,000 or 40% of these workers are employed outside major metropolitan centres in small-town B.C. All these changes raise complex questions for provincial and municipal governments, as well as non-profit organizations serving immigrant communities. How should a communit y plan its housing needs? Will these workers bring spouses and children that require school services? What’s the impact on police, health and social services when several hundred TFWs join a regional workforce? These are very real issues in Prairie communities like Brooks, Alberta, where nearly a quarter of the population is made up of TFWs and refugees from dozens of countries employed at a local meat plant. As Ottawa eases restrictions on the program and extends the length of time TFWs can stay, the stock of foreign workers will

continue to grow. Even during the 2008 downturn, the number of workers in the program levelled off, but did not drop. Unlike immigrants, who overwhelmingly settle in larger centres, where support services and extended immigrant communities already exist, TFWs must go where the boss has the job.

The stock of foreign workers (in B.C.) now sits at around 70,000, nearly equivalent to the entire population of Prince George More of these jobs are outside the Lower Mainland and more require higher skills. And the public sector, not just the private sector, is becoming more reliant on TFW employees. A full 27% of all TFWs are considered managerial, professional or skilled. More than 600 university professors and a surprising 650 registered nurses are in B.C. working under the program.

In bot h cases, it cou ld be argued, B.C. is poaching the sk illed professiona ls so desperately needed by developing economies to avoid the cost of recruiting and training our own residents. Professors and nurses, after all, are not low-paid. Surely there are Canadian residents ready to step into these jobs. The largest single TFW category, of course, remains Skill Level C, where 8,052 nannies and babysitters have been imported, for a while at least, to take care of our very young and very old. “Notwithstanding the existence of some overa l l labour market slack,” the BCBC concluded, “we are already seeing indications that some regional labour markets are tight and

certain occupations are in high demand.” With regional labour shortages expected to intensif y in coming years, the business council said, it’s “clear that managers, health-care workers (including nurses), tradespeople and engineers, among other occupations, will be in short supply.” The d ra mat ic increase in TFWs, in other words, is the new normal. That may be good news for employers. The consequences for the workers and their host communities are not so clear. • Geoff Meggs, a longtime senior labour communications specialist, is a City of Vancouver councillor and the president of Tideline Communications.

The quickest way to get from the mailroom to the boardroom Some direct mail never makes it out of the mailroom. But Greater Vancouver’s top business professionals rely on Business in Vancouver weekly. Call us at 604-688-2398 to get your message out to your potential customers. www.biv.com

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B.C. parents are the most likely in Canada to require their children to pay for their own university or college education. A TD Canada Trust survey found that 12% of B.C. parents admit they don’t plan to contribute to the cost of their children’s post-secondary education compared with 4% nationally. B.C.’s high cost of living is likely a contributor. Shahz Beig, TD Canada Trust’s associate vice-president of personal lending, said, “For university and college students living away from home, the cost of pursuing an undergraduate degree is approximately $80,000, so it’s no surprise B.C. parents aren’t planning on incurring the entire cost.” For the parents who plan to pay for part of their children’s post-secondary education costs, most plan to cover the most essential expenses like tuition, books and rent. But they expect their children to cover part of those costs from a

summer job. The survey found about 60% of parents with children under the age of 18 have already started saving. However, most of the saving is being done by the newest parents in the survey. Nearly 90% of parents under the age of 35 started saving for their child’s education shortly after the child’s birth. About 70% with children under 16 have some savings compared with 57% of parents whose children will be eligible to go to college or university over the next five years.

Rising costs hit B.C. spending habits: RBC

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Despite having an optimistic view of the economy, British Columbians are playing it safe by controlling their spending for the rest of the year. RBC’s July Canadian Consumer Outlook index found that 52% of B.C. residents are trying to stick more closely to a budget and 54% plan to shop around more often for the lowest price for their desired purchases.

The RBC report noted gas prices have risen nearly 30% in May alone, which is the biggest increase since September 2005. Food prices have also jumped 42% in May. The increases in basic costs come at a time when only 38% of B.C. residents expect to see an improvement in their personal finances over the next year. More than half said they have delayed a major purchase so far this year; a third said they’ve delayed the purchase of a new vehicle. About 29% said they are likely to forgo a vacation this year because of uncertainty over the global economy. About a third are focused on reducing their personal debt this year. On average, B.C. residents carry $13,484 in debt, excluding mortgages. B.C. residents are limiting their spending despite an optimistic view of the national economy. About two-thirds of B.C. residents remain positive about its prospects; approximately 46% expect the economy to improve. rchu@biv.com

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Profile

July 26–August 1, 2011 Business in Vancouver

Christopher Krywulak By Glen Korstrom

Upwardly mobile Christopher Krywulak moved his software company to Vancouver from Saskatchewan last year as part of a bigger plan to expand iQmetrix’s North American Dominic Schaefer

share of the mobile phone retailers’ market

iQmetrix CEO Christopher Krywulak: “[Socrates is a mentor because of] the way he went about his day wandering about, asking questions and wondering.… He was curious about all sorts of things”

ne of Christopher Krywulak’s employees pours a pint of beer in the office kitchen as Krywulak takes visitors on a tour of iQmetrix’s 11,000-square-foot office in Vancouver’s PricewaterhouseCoopers building. It’s nearing 4:30 p.m. on a Thursday afternoon and the sight is not out of the ordinary. A keg is usually hooked up to a tap for employees to use at their leisure. “We give employees freedom and trust their choices. People usually make the right choices,” said Krywulak, who is iQmetrix’ CEO. “[Drinking alcohol] can be good for creative aspects of the job.” Providing free alcohol also helps employees blur the line between work and pleasure because it encourages them to stay late and hang out with workmates while building rapport with each other. Employees who are less social can go to what Krywulak calls a “zen room” – a sound-proof sanctuary perfect for employees who need to get away from office commotion to enjoy peace and quiet. Queen’s University School of Business and AON Hewitt considered iQmetrix one of the best small and medium employers in Canada in 2011, so the company with nearly 200 employees and about $50 million in

annual revenue must be doing something right. iQmetrix, which makes software that helps mobile phone sellers manage retail operations, is 40-year-old Krywulak’s second venture. He bootstrapped his first venture in 1989 when he was fresh out of high school and held a day job at the Regina steel plant where his father worked. Family co-signed a loan, and he pumped more than $20,000 into launching a car-phone installation business. The enterprise morphed through a series of corporate names as it grew into Jump.ca. In 1999, the chain had more than a dozen retail stores, which sold cellphones, Internet and wireless services as well as accessories. Krywulak credits much of that growth to his passion for analyzing data. He created reports using Microsoft Excel and documented what each employee at each store was selling. Some sold a staggering amount of accessories. Others were expert at selling a broad range of phones. Still more disproportionately sold the same phone over and over. Simply alerting employees to what they were selling helped motivate everybody to sell both more and a wider variety of products. Jump.ca still exists as a chain of 16 Saskatchewan-based stores, and

Krywulak continues to own a minority share. But 1999 was a pivotal year because it was when Krywulak created iQmetrix as a sister company to Jump. ca. He invested an increasing amount of his time building his new venture and, in 2002, stepped down as Jump. ca’s CEO. Money generated from selling twothirds of Jump.ca to private equity firms in 2006 helped bankroll iQmetrix’s growth. “Jump.ca wasn’t the kind of business I saw myself in forever,” Krywulak told Business in Vancouver in his corner office, which overlooks Canada Place and has several white boards – all marked up with complex-looking scribbles. “At iQmetrix, we’re not limited by geography. We’re not limited by a local economy. Back at Jump.ca, we were just in Saskatchewan. We could be cut off if the economy changed.” Growing iQmetrix is enabling Krywulak to take on the world. He based sales representatives in Denver, Colorado, and then, in 2008, bought Winnipeg-based Work Software Systems, which had an American office in Charlotte, North Carolina. About 20 of his staff now work in the U.S.; the remainder work in Canada.

Mission: To expand a range of software products for mobile phone retailers Assets: Experience gained from building a mobile phone retail chain into more than a dozen stores Yield: A software company that employs almost 200 people and generates more than $50 million in annual revenue

He moved to Vancouver in August 2009 and shortly afterward shuttled his company’s head office to Lotusland from Regina, where the company’s largest office still operates. A local hiring campaign is nearly complete. Only about six hires are likely in the next few months at his Vancouver office, which now employs 50 people. Growth, of course, depends on sales, and iQmetrix’s keep growing. Krywulak estimates that 15.5 million phones, or about 10% of the phones sold in North America, pass through his company’s point-of-sale systems. His core software helps mobile phone sellers, such as Vancouver-based Glentel Inc.’s (TSX:GLN) 120-location Wireless Wave chain, manage everything from human resources to inventory management to point-of-sale systems. Select customers have already started using software that Krywulak believes could one day be an even bigger source of revenue: XQ. It runs in the background as customers at mobile phone stores touch large TV-screens and drag and drop different phone accessories and payment plans into a template phone that they want to buy. Krywulak glides his finger across a TV screen and new mobile phone models suddenly appear. “All models of the phones on the screen will be in stock at the retailer. It helps with inventory management because they don’t need to have as much stock in the store. All phones on the screen will be in the back room if a customer wants to buy one,” he said above the din of music and chatting while staff drink beer and sit on plush couches near the iQmetrix kitchen. Krywulak is nothing if not curious. Asked for a mentor, he names Socrates. “The way he went about his day wandering about asking questions and wondering. It was the sense of wonder that he had. He was curious about all sorts of things.” University of Manitoba president David Barnard met Krywulak when the two served on the board of the Regina Regional Economic Authority as well as other committees when the two lived in Regina. “He’s very high-energy creative guy,” Barnard said. “He thinks about how to make connections between lots of different things. He has a good feel for what’s happening in his sector.” • gkorstrom@biv.com

DID YOU MISS THESE RECENT EDITORIAL PROFILES? Lesley Stowe

Ken Spencer

Lara Kozan

The queen of crisps looking for another recipe for success in B.C.’s food industry Issue: July 19

Retired Creo co-founder now helping build B.C.’s high-tech sector Issue: July 12

YYoga co-founder helping to secure company’s positive revenue positions Issue: July 5

Check them out at www.biv.com/proﬁles

Daily business news at www.biv.com Business in Vancouver July 26–August 1, 2011

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