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VOL.XVII NO.1

JANUARY 2006

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Allan G. Bleiken and Michelle Simpson help kick off Edmontonians new International Business feature.

All New in ’06

INTERNATIONAL

BUSINESS New! Jessica Wegman-Sanchez • Couch potatoes/Lively Lifestyles • Bruce Hogle is back

pompous & unfair FUNNY

By Muggsy Forbes

Eddy came back... as Jack

e’s known as Eddy Carroll

throughout North America, except in Edmonton. Here, he’s known simply as Ed Eleniak, who attended high school at St. Joe’s. Eddy is also known as the best Jack Benny impersonator in the land and, after 15 years performing as the erstwhile celebrity, he’s got it down. As you watch his act, Eddy becomes Jack. He has the Benny voice, mannerisms, and story down to perfection. Anybody under the age of 50 won’t know these characters but they were huge in

Ed Yakbow, Tony Shepard, Justice Al Wacowich, Eddy Carroll, Senator Tommy Banks and Muggsy. the day — characters like Benny’s announcer, Don Wilson, friend Rochester, and wife Mary Livingston to whom he was married in real life.

If you were among the 300 people who

attended a fundraiser for cystic fibrosis, you hit a great evening. It was an event to raise funds for an advanced respiratory airway clearance system called The Vest™ for 23-year-old Marc Johnson who’s had CF since birth. The genetic defect associated with CF causes the body to produce very thick mucous, which has to be cleared from a person’s system. Marc needs to get pounded on his chest two or three times a day to loosen up the mucous and The Vest™ helps with the procedure. Contributors raised $38,000 and managed to make a deal with the manufacturer to purchase two more vests for young people. The people behind the scenes were trucker Ernie Blasetti and Marc’s father, Glenn. The amazing vest will allow Marc to travel for the first time in his life without friends because he needed people around to pound his chest. Congratulations, all. The wonder of the The Vest™ evening for all 300 guests was a tour through a private collection of memorabilia owned by Ralph and Carol Falvo. They hosted the event at the rear of their warehouse where the collection is located. It’s like a rabbit warren of artifacts from the 1960s. Ralph has rooms dedicated to Coca Cola, Pepsi, Orange Crush, old gas pumps, old

Wurlitzer juke boxes, and restored cars. Everything works. It’s mind-boggling. One room is a reproduction of an old Coke café complete with boomerang counter coverings, red bar stools, and a Wurlitzer. I waited wistfully for a young lady to serve me. Ralph related this story about his collection and an Internet auction: A Husky sign similar to his own went to $10,000. Ralph quit bidding because he only paid $700 for the original.

other’s company. My second reason is that she’s been extraordinarily good for the city.

It’s like a huge television studio. If you’re into

That handsome and debonair president of

cooking and think you could use a refresher, I suggest that you look up Chef John Lizotte at Trail Appliances. Chef John delivers a highly entertaining session of cooking tips and demonstrations. John, who works in front of the camera, offers classes on convection ovens, soup, meat, and just about anything or any other style of cooking. Classes are reasonable from $20 to $39 and you don’t need to buy any appliances to take a course. To book, call 780.434.9414; it’s a heck of a deal. My own preference is wieners and beans—both the prep and the eating. Chef Lizotte has a seasoned reputation: He’s served up meals at the Fairmont Hotel Macdonald, Glendale Golf and Country Club, and one of my favourite’s, Normand’s Restaurant.

Long-time friend Bud Salloum and his son David hosted an evening a while back for clients of their firm, Salloum Wealth Management Group. You could catch Bud at the RBC Royal Bank over the years, but you could also find him on the corner of Jasper Avenue and 101st Street dressed up in a clown outfit selling apples for Kinsmen. The business evening gave father and son a chance to introduce new staff member, Wanda Nadeau, formerly of the Royal Bank. Wanda recently was named Alberta’s top financial advisor for that institution. Bud has been married to the human dynamo Laverna Salloum since forever. This gal’s amazing. Despite debilitating brain tumors, Laverna travels to Asia once or twice a year and hosts tour groups. A great family enterprise and, if I had any money, I would entrust it to them. There’s a wish they don’t want to see come true. Note from editor: The following is not a paid political announcement. The Liberal Party of Canada said it couldn’t afford to purchase an advertisement in this edition of Edmontonians.

Employability’s annual Western Night is one of my favourite fund raising events. Thanks to Employability’s computer teacher Chuck Corvec and wife Linda, we go every year. The event creates the best silent auction around for a sold out crowd of 500. Waterloo Motors, Randall Purvis, knows how to throw a party. It was Waterloo’s 60th birthday celebration and the service department was filled with some of the nicest old cars I’ve seen in quite a while. Speakers including Oilers’ dynamo Patrick Laforge, Mayor Mandel and Anne McClellan spoke glowingly of the dealership and Randall’s father, Al, the dealership’s driving force for the last 50 some years. Al’s wife Jeanne is great fun and, I’m sure, is part of Al’s success. It was a great party. I can hardly wait for the next one.

Here’s a romantic story to start off the new year. The new fellow at the Italian Chamber of Commerce is the charming Jonathan Butterworth from Milan. His job is to help the Chamber promote business interests between Greater Edmonton and Italy—a task aptly suited for the graduate in public relations. The romance part of his story is Jonathan’s chance meeting with Michelle from Edmonton, in front of the fountain at Castle Sforzesco in his home country. “It was like the film Sliding Doors with Gwyneth Paltrow,” said the film enthusiast. “Michelle and her friend were backpacking around Europe. They were on their to way Nice, France, but missed the train by five minutes. They weren’t even supposed to be in Italy,” marveled the romantic. “And for the first time in my life, I set an appointment with my friend in front of the fountain,” where they spotted the girls. “We met...fell in love, and married.” The young couple finally settled in Edmonton after several trips back and forth and are the proud parents of Liam, four months. “Society here is multicultural; this is what I love,” said Jonathan whose father is British from Tamworth, 50 miles NW of Stratford where Shakespeare lived. “The job opportunities here are immense and there’s a lot of space to be filled.” ✔

If the pundits are right, it looks like another Liberal minority. I worry that my favourite politician, Anne McClellan, will be in another dogfight. One of my reasons for coming out publicly for Anne is that we are good friends…not the going to the movie type of friends, but we enjoy each

Additional reporting by Edmontonians’ staff. Call Muggsy Forbes at 780.482.4545 or e-mail mforbes@edmontonians.com

Scott Kay Vintage Platinum Collection EDMONTONIANS JANUARY 2006

Proof___2_______PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

CELEBRATING

Poll

STATION

YEARS

With Linda Banister

anada’s National Parks are a source of pride from coast to coast. These vast areas of land capture the sheer beauty of the country, while maintaining natural areas that are representative of the unique Canadian eco-system. They have been protected for public understanding, appreciation and enjoyment, while being maintained in a pristine state for future generations. This month, the Poll Station asked Edmontonians for their thoughts and opinions regarding the status of national parks in Canada today.

FOUNDER DICK MacLEAN

Vol. XVII

JANUARY 2006

No. 1

SHARON MacLEAN Publisher and Advertising Director Telephone: 780.482.7000 Fax: 780.488.9317 e-mail: info@edmontonians.com edmontonians.com

INSIDE POLL STATION National parks/Banister . . . . . . . . . . . . . . . . . . . . .3 GREATER EDMONTON INTERNATIONAL BUSINES Business Briefs/Wegman-Sanchez . . . . . . . . . . . . . .4 Emerging diplomats/O’Toole . . . . . . . . . . . . . . . . .5 Global commerce/Bleiken . . . . . . . . . . . . . . . . . . .6 Tax tip/O’Toole . . . . . . . . . . . . . . . . . . . . . . . . . . .8

HOW OFTEN DO YOU VISIT THE NATIONAL PARKS? Percentage

FUNNY, POMPOUS AND UNFAIR That’s amore/Forbes . . . . . . . . . . . . . . . . . . . . . . .2

LIVELY LIFESTYLES Wine Wise/Lesiuk . . . . . . . . . . . . . . . . . . . . . . . .14 Absolute Bodo/Bodo . . . . . . . . . . . . . . . . . . . . . .15 BARB DETERS Editor

editor@edmontonians.com COLUMNISTS Linda Banister Linda Bodo Cheryl Croucher Muggsy Forbes Ron Hiebert Bruce Hogle Darryl Lesiuk Greg Michetti W. Daniel Mothersill David Norwood Nizar J. Somji Jessica Wegman-Sanchez FEATURE WRITERS Catherine Carson Murray Donaldson Peter Drake McHugh Michael O’Toole Marg. Pullishy PHOTOGRAPHERS Terry Bourque Cheryl Croucher Barb Deters Ed Ellis Terry Ellis GRAPHIC PRODUCTION Rage Studios Inc. INFORMATION TECHNOLOGY Michetti Information Solutions Inc.

THIS MONTH’S COVER

Said they visited Nation Parks once a month

Said they visited Nation Parks once a year

Said they never visit Nation Parks

To begin, respondents were asked to indicate how often they visit the national parks in Alberta. About one-quarter of respondents (26 percent) said they visit these parks once a month or more, while 60 percent said they visit about once a year. Only 14 percent said they never visit Alberta’s national parks. Jasper ranked as the favourite national park for the majority of respondents (54 percent), followed by Banff (31 percent), Waterton Lakes (nine percent) and Elk Island (six percent). Respondents were asked what activities they most like to take part in while at the park of their choice. The most frequently mentioned activity was hiking or cycling (61 percent), followed by camping (30 percent). Other popular activities included skiing or snowboarding (28 percent), sightseeing or touring (28 percent), and just being outdoors and enjoying nature (21 percent). Shopping (11 percent), going to museums or historical sites (five percent), golfing (five percent) and going to the hot springs (four percent) were also mentioned.

SHOULD PARKS CANADA CHARGE USER FEES FOR ACCESS TO NATIONAL PARKS? The Poll Station surveyed 100 City of Edmonton Percentage

DOWNTOWN ACTION . . . . . . . . . . . . . . . . . . .14

26% 14%

MAKING MONEY Future Energy/Hiebert . . . . . . . . . . . . . . . . . . . . .10 BIZINTEL Science and Tech/Croucher . . . . . . . . . . . . . . . . .11 Media Minute/Hogle . . . . . . . . . . . . . . . . . . . . . .11 BizIT/Michetti . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Civic Buzz/Norwood . . . . . . . . . . . . . . . . . . . . . .12

60%

were unsure. Those who agreed with the user fees indicated the fees help pay the wages of park wardens and staff, maintain the park and provide services within the park, and agreed with paying, as long as the fees were reasonable. Those who disagreed with the idea of user fees said that visiting the parks is already too expensive and the costs should be covered by taxes, and that user fees reduce access to the parks by those with lower incomes. Respondents were asked to rate on a scale of one to five, where one means “very important” and five means “not at all important”, how important the national parks are to Alberta. On average, respondents provided a very high rating of importance; the mean rating was 1.2 out of five, with 80 percent of respondents providing a rating of one, or very important, and 15 percent providing a rating of two, or somewhat important. Two percent of respondents provided a neutral rating of three and only one percent rated national parks as five, or not at all important. The majority of respondents (62 percent) thought the federal government should create more national parks in Canada, while 28 percent were content with the current number of parks, and 10 percent were unsure. Those who felt more parks should be developed were asked if they had any suggestions for a new national park in Canada. While a variety of ideas was mentioned, the most frequently mentioned were a park in Canada’s far north, the Drumheller region of Alberta, BC’s David Thompson Region, Ontario, and a prairies’ park. residents on the topic and, while the results of the research are not statistically reliable, they do provide a qualitative indication of what Edmontonians are thinking. ✔

63% 36% Felt that Parks Canada should charge a user fee for access to parks

Felt that Parks Canada should not charge a user fee for access to parks

When asked if they felt Parks Canada should charge a user fee for accessing the country’s national parks, the majority of respondents agreed that it should (63 percent), while 36 percent felt there should not be user fees and one percent

Linda Banister is a certified management consultant and the owner of Banister Research and Consulting Inc., a full service provider of market research and program evaluation services. If you have a question you would like included in the Edmontonians Poll, contact Linda at 780.451.4444 or e-mail at lbanister@edmontonians.com. For further information on the firm visit www.banister.ab.ca.

Honorary Consuls Allan Bleiken and Michelle Simpson Cover photo by Ellis Brothers Photography Published by 399620 Alberta Ltd. on the first day of each month at 333, 10240 - 124 Street, Edmonton, Alberta, Canada T5N 3W6. ©All rights reserved. No part of this publication may be reprinted or reproduced in any form without written permission from the publisher. Manuscripts: must be accompanied by a stamped, selfaddressed envelope. Edmontonians is not responsible for unsolicited manuscripts. All stories Copyright ©Edmontonians Publications Mail Agreement No. 40023292 Return undeliverable Canadian addresses to: Circulation Department 333, 10240 - 124 Street Edmonton, AB T5N 3W6 Email: info@edmontonians.com

EDMONTONIANS JANUARY 2006 Proof____2_______________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

By Dr. Jessica Wegman-Sanchez Edmonton’s Gold Bar park

R E T

EDMONT

POINTS SOUTH The Alberta Education Centre which opened in Guadalajara, Jalisco, Mexico, in September marks the first time that the Alberta government has opened an advanced education office in another country. Minister Dave Hancock and 4

that are the brain-children of foreigners, to also patenting and developing more inventions created by Mexicans. The students in Heidrick’s program return to Mexico with a knowledge of the commercialization process; some come back as graduate students. Heidrick, who also travels regularly to Mexico to teach in programs there, has long-term plans to expand this type of exchange to different sectors, including oil and gas. Opening its doors to students from Mexico does not impact on local student enrollment. The university’s director of international education and marketing, Tony Williams, said increased initiatives to recruit international students make good business sense. International students pay costs ($15-16,000 per year as undergrads) and do not detract from the positions subsidized by the university and reserved for Canadian residents. Williams stressed the long-term economic benefits that result. “Besides what they spend on tuition and room and board, students from other countries train here and then stay on, adding much needed manpower to our skilled labour force, or return as professionals to their countries to become ambassadors for the University of Alberta and for Edmonton.”

INE

B L AT I O N A

For top quality in wining and dining, Livia Castellanos of the U of A— the most active Canadian university in Mexico

CHINESE CONSUL NOW IN EDMONTON With the projected increase in business with China, Edmonton companies and government officials will be grateful for the new monthly Chinese Consul service in Edmonton. Consul General Song Xizhu now offers consular services here on the last Thursday of each month. Song Xizhu said expanding the service to Edmonton is necessary because “both sides have decided to double trade volume in the next five years.” Alberta’s trade volume with China now stands at $1.8 billion U.S. Another plus: You won’t have to go to Calgary for a visa every time you want to go to China.

Tony Williams, director, international education and marketing, University of Alberta

have come to Alberta each summer for Heidrick’s one-month certificate program in the commercialization of technology. The idea is that Mexico should move from manufacturing solely products

GRE

dmonton’s expertise in solid waste and waste water management ranks right up there with the very best…good enough to attract an environmental delegation of 38 specialists and government representatives from the municipality of Chongqing in Southwestern China. It turns out, China is serious about doing business with Edmonton. With over 30 million people, and accelerated industrialization in the area, Chongqing needs a good waste management program to combat serious environmental contamination. The University of Alberta hosted the visitors from Chongqing, who attended presentations from environmental experts, and site visits to witness first hand Edmonton’s technology in action. Their itinerary included the Gold Bar and Cloverdale sites of the Edmonton Waste Management Centre of Excellence (EWMC), as well as Vegreville’s Highland Renewables Feedlot where cattle manure is transformed into “green energy” through the extraction of methane gas. Medieval alchemists dreamed of turning base metal into gold; in Alberta, we’ve mastered turning manure into money. An Edmonton delegation, led by Mayor Stephen Mandel, then visited a number of Chinese cities. A major focus of the trip was to present Edmonton’s environmental technology. “Mayors are powerful people in China; mayor to mayor is where you start business.” Mandel said that while the governments in many countries pay lip service to improving environmental concerns, they don’t always follow through with financing. But China has the money, and “when they decide to do it, they commit the capital to do it.” Dr. Jerry Leonard, executive director of the EWMC and another member of the delegation, envisions the EWMC coordinating a team of Edmonton companies to bring the construction, consulting, and technology (along with education on how to use it) to the waste management facilities Chongqing will require. “They can buy a plant anywhere in the world,” says Leonard. “But it’s like giving someone a brand new car, and not teaching them how to drive it. You need to learn how to drive it, and you need the road to drive it on.”

representatives of 12 Alberta post-secondary institutions went to Mexico to officially open the Centre, located directly in front of the Canadian Embassy. The Centre recognizes the high volume of educational exchange between Alberta and Guadalajara. Calgary’s Mount Royal College alone registered over 3,000 Mexican students in the past five years. Other institutions with a particular interest in Mexico are NAIT, Grant MacEwan, Athabasca University, and the University of Alberta. “The U of A is the most active Canadian university in Mexico,” says Livia Castellanos, of the university’s international relations office for Latin America. This past year marks a further increase in its bilateral agreements with Mexican institutions; the U of A signed agreements for research in the agriculture and forestry industries with two Mexican institutions, adding to a list of nearly 30 different agreements with Mexican universities and institutions. The exchanges include Mexican students coming to the U of A and, in a reciprocal arrangement, students and faculty from the U of A go to Mexico.

“Mexican organizations are not like Canadian organizations. If you go in with your Canadian hat for doing business, you’re not going to be successful. Canadians can be really fooled there. People will be saying, ‘yes, yes, yes, yes,’ and it doesn’t mean they are really listening to you or agreeing with you.” The proliferation of recent bilateral agreements are a testament to the negotiation skills of Castellanos, a Mexican lawyer who immigrated to Edmonton, and who understands business and cultural conventions on both sides of the borders. Dr. Ted Heidrick holds a joint appointment in engineering and business. For three years, 40 industrial engineering students from Guadalajara

Edmonton should turn to Italy: At least, this is the philosophy behind the Italian Chamber of Commerce’s yearly Flavours of Italy trade show and gala dinner. This year a trade delegation from the region of Lazio, comprised of government officials along with representatives from seven food and seven wine companies, were on hand to promote their savory appetizers and wines. According to Jonathan Butterworth, Edmonton office manager for the Italian Chamber of Commerce, the top agricultural exports from this region are wine, olive oil, and— surprisingly—a bountiful crop of kiwi fruit. This mission to Edmonton followed Deputy Minister of Economic Development Rory Campbell’s visit to Italy a few months earlier. While there, Campbell met with the Chambers of Commerce in a number of Italian cities. The visit to Edmonton culminated in an agreement signed between Mayor Mandel and Francesco Paolo Panfili, provincial minister of the Lazio region, pledging to develop a closer business relationship with Edmonton. As it stands, Alberta’s total agri-food exports to Italy for 2004 were just under $70 million Canadian, with imports from Italy at $28 million. ✔ Jessica Wegman-Sanchez, PhD, is director of corporate communications for BIDMEXICO International Inc., an Edmonton-based company specializing in foreign business development in Mexico. E-mail: jsanchez@edmontonians.com EDMONTONIANS JANUARY 2006

Proof_ 3_______PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Royal Bank of Canada in Bridgetown, Barbados

Emerging diplomats Edmonton’s link with international business By Michael O’Toole

ather unfairly perhaps, the title Honorary Consul is apt to conjure the image of a displaced loner, way out on a limb in the diplomatic no man’s land of a Graham Greene or John Le Carré political thriller. We all know the scenario: A suddenly stateless exile with a hazily-defined day job is caught in the crossfire with only a white linen suit and obsolete residency privileges for protection. More down-to-earth speculation may picture an off-duty, arm’slength government official constantly persecuted at home on the weekend by visa applicants and low-budget backpackers requesting the use of the shower. By either of these standards, Michelle Simpson is bound to disappoint. However, with a little more enquiry as to the true nature of her role, the Edmonton-based Honorary Consul for Barbados is easily distinguished from the halfremembered sloop of popular fiction. And for tax-sensitive Albertans who are focused on international trade, her narrative is, if anything, even more gripping. The first thing to get straight about this honorary consul thing is that the position doesn’t have to be filled by a citizen of the country that awards the title. Typically, a visiting power gives non-government consular status to a business professional who is already resident in the host country. This was the case for Michelle Simpson, a longterm Edmontonian and partner in the law firm Trevoy Simpson. A chance meeting with the High Commissioner for Barbados at an event staged by the International Chamber of Commerce led at length to the Caribbean nation opening an office in Edmonton. Simpson was duly invited to assume, from June 2005, her present consular role as Alberta representative for the High Commissioner’s Office. “If you talk to honorary consuls of different countries, it’s pretty much the same way,” Simpson explains. “They [the officials of the visiting country] meet someone they think is involved in the area, involved with the country — and I was involved with the country in the sense that I was setting up IBCs in Barbados.”

You should commit that acronym to memory for the rest of your tax-paying life. The establishment of tax-efficient International Business Corporations now lies at the heart of Simpson’s key proposition to corporate Alberta: ‘Turn to Barbados next year for a better deal.’ It’s a notion made tangible by the tax treaty between Canada and Barbados, which allows Canadian businesses to register on the island as IBCs, pay tax at an ultra-low 2.5 percent, and then repatriate active business profits without domestic tax liability. It’s a structure frequently favoured by businesses looking for a hub to anchor their international expansion. On paper at least, the figures do have a certain exotic allure for Canadians paying rates as high as 40 percent. As a potential conduit to these fiscal advantages, Simpson has found herself much in demand. She has to be mindful, of course, of her dual role as Honorary Consul and partner in a commercial law firm. Both facets of her working day are liable to bring her into contact with companies thinking of taking the IBC route. The new HC elucidates: “As an example, I’ve had someone approach me in my capacity as Honorary Consul who said, ‘We are looking at an opportunity in Barbados. We would just like to make sure that we get connected with the right people right from the start so that our initiative is either moving along quickly or, if it’s not going to work, we know [that] quite quickly.’ And so that’s something that we can assist them with.” Speaking, momentarily, for all honorary consuls as a class, Simpson expresses her contentment at the relatively low profile they are able to keep in the performance of their duties. “We work in the background. We don’t have to be front and centre, so we don’t have to promote ourselves or make sure we’re present at certain politically correct places.” On the commercial side, Simpson generally works with smaller business undertakings. Her clients are usually home grown and might have revenues in the $20-million range. “They’re not huge, but they’re not tiny either. And those are the people that are the most fun in terms of

taking them internationally, because they’re ready.” In her capacity as a barrister and solicitor, Simpson typically conducts a half-day session with the decision makers in the organization to explain how the process works so that they can make an informed decision about whether a Barbados-based IBC structure is right for them, and whether they’re prepared to follow the rules. The rules, it seems, resonate favourably with Albertans, as does the overall business environment of the island, which is considered to have the most sophisticated corporate culture in the Caribbean. “It’s so similar to what we’re used to in Alberta,” she says. “They have a registry. They are very scrupulous about knowing their clients prior to incorporating. They’re very careful. They’re very British,” she adds with a touch of levity. “Absolutely very British. But it’s something that Canadians are very familiar with because a lot of our systems still reflect the British systems... so you go down there and you just feel comfortable right from the first moment.” If you’re getting the impression of a one-way street on which Canadian money flows irrevocably southward to the sole benefit of the Barbadian economy, Simpson is keen to remind us that, by the terms of the tax treaty, 97.5 percent of revenue from Canadian IBCs based in Barbados is repatriated back to Canada, where it can be used for the purposes of reinvestment. That, she says, distinguishes Barbados from jurisdictions which are essentially longterm cash depositories. “It’s absolutely a two-way street,” she insists, “otherwise I wouldn’t be doing this. I’m Canadian.” An experienced legal practitioner, Simpson reinforces her case with a succinct summing up: “Done correctly and done according to law, the clear advantage is the tax treaty between Canada and Barbados and the benefits that you can reap as a result of dividending back your surplus income that is derived from the Barbados undertaking on a tax paid basis.” It’s a persuasive argument, but we only have to think Continued on page 6

EDMONTONIANS JANUARY 2006 Proof_ 3_____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Continued from page 5 back a couple of years to recall the storm of protest that arose over Prime Minister Paul Martin’s former CSL (Canadian Steamship Lines) and its subsidiaries in Barbados. Martin was accused from various quarters of paying “ridiculously low” taxes while Canadian small business faced the full whack. The time has come to play the Devil’s Advocate just a little — there is no getting away from it. The time has come to use the O word in earnest — and, for that matter, the S word, the L word, the TA word and the TH word. O, as you’ve probably guessed, is for offshore, S for sheltering, L for loophole, TA for tax avoidance, and TH for tax haven. They’re all part of the often resentful vocabulary ranged by dissenting voices against the whole concept of allowing ‘a privileged few’ to seek out a picturesque island simply so they can circumvent the tax liabilities faced by the common citizen. Simpson’s response, as one might expect, is unwaveringly firm and even a tad indignant at the misconceptions inherent in that particular hypothesis. The key issue here, she emphasizes, is not some sneaky attempt to escape tax liability. As she—and, it must be said, a good many figures

in government and the financial community—sees it, the positive impact on Canadian business and the wider Canadian economy is where the attention should be focused. The Honorary Consul postulates a scenario in which an internationallyminded business, maxed-out on its line of credit after building necessary production infrastructure, finds itself in need of cash to recapitalize and sustain its development: “They create their IBC, and now let’s say they make a dollar in a foreign country by doing direct sales through the IBC. So they’ve paid their two and a half cents tax to

Inernational business lawyer Michelle Simpson represents Barbados

Barbados and the rest of the money comes back to Canada. And with that money they can now pay down their debt. They can now afford the cost of goods in order to reinvest in the company. And that makes more jobs for us, it makes more investment capital available in Canada. This is a very positive thing for Canadians.” Once again, she makes the point eloquently, but it seems that there is a slight disconnect here in getting that message across to the public. As she concedes, the stigma of socalled “offshore tax sheltering” does seem to linger. “I think that there’s a perception out there that the rich are treated differently than the poor and that these advantages are only available for the rich. And that’s why I keep harping on the fact that I like to work with these smaller businesses, not the multi-billion dollar companies who have long since had their setups in Barbados, and long since had the financial ability to retain high-priced legal advice and tax advice in order to know how to do this years ago. I would like to appeal to Alberta businesses and say, ‘Why don’t you find out whether this is an advantage that you could take?’ But remember there are rules to the game and you’ve got to follow them.”

Continued on page 7

The importance of being earnest By Allan G. Bleiken

t’s hardly news that today Alberta enjoys the strongest economy in Canada. The current major projects report issued by the province lists more than $115 billion of committed or proposed investments for the province. From national and international perspectives, Alberta’s energy resources have taken on new importance. Oil is still the world’s largest source of energy and will remain the primary source of energy for the foreseeable future. 1 While enormous efforts must be made to find alternative sources, there is nothing to indicate that a dramatic change will occur over the next two decades. This reality is creating a new challenge for Canada and the world. With the world’s second largest proven reserves of oil, Alberta is strategically important from a global energy perspective. International forecasts indicate the world’s economy will grow from its current level of $47.2 trillion to $112.7 trillion over the next 20 years, representing an increase of nearly 140 percent. This rate of growth is actually less than that experienced during the past decade. Global energy use will increase from 83 million barrels of oil per day in 2004 to an estimated 119 million barrels per day by 2025. 2 In effect, by 2025, the world will need to find, produce and distribute an additional 13 billion barrels of oil per year. Since the majority of the world’s oil reserves are located in unstable regions, the importance of Alberta’s oil reserves is readily apparent. Current projections indicate the world’s supply of conventional oil will peak in about 30 years, then enter a period of decline. 3 In some regions of the world, including North America, conventional oil production is now in a state of depletion. This reality has created an urgency to find and produce additional or alternate sources of energy, which include the development of Alberta’s oilsands. The increasing demands for energy makes it essential to find solutions to global issues such as pollution and carbon emissions. This means that

about global commerce Alberta needs to expand and strengthen its ties with other countries, and tap into the massive programs and research efforts being conducted abroad, dealing with global problems. The province will need additional immigrants to meet its demands for skilled labour.

Honorary Consul to the Netherlands Allan G. Bleiken

On the export front, Alberta is dependent on international exports to sustain our economy. Between 1994 and 2004, Alberta’s exports increased by 188.8 percent compared to an average of 80.9 percent for the rest of Canada. This means we need to expand our markets for goods and services. Today, the majority of Alberta’s exports go to the United States; but, it is important to access other international markets such as the European Union, which represents a population of 458 million people

with an annual GDP of $11.6 trillion. Today, more than 25 countries are represented in Edmonton through the Edmonton Consular Corps, which serves as a focal point for much of Edmonton’s international activities. Many of these countries have taken an active role in helping to develop and expand social, cultural and economic relationships within Alberta. Members of the Consular Corps have been appointed to serve as an official channel between Alberta and their respective countries. As such, members of the Corps play an important role in helping Alberta gain access to the resources and expertise of the international community. Mayor Stephen Mandel and members of Edmonton’s city council are to be highly commended for hosting the International Business Expo in 2005, which involved all members of the Edmonton Consular Corps in a review of the opportunities to expand Edmonton’s international profile and economic outreach. Given the city’s role as a resource centre for the majority of Alberta’s economic growth, the need for Edmonton to gain access to international expertise, resources and markets is apparent. Edmonton and Alberta have a well educated and highly skilled workforce, are in an enviable financial positions, and provide a safe, secure society that offers a desirable standard of living. Alberta is envied by much of the world. Yet, the province faces a number of serious challenges that cannot be met alone. As Alberta addresses these challenges, it will need to call even more upon the services and resources of the international community. ✔ Allan G. Bleiken, a business development consultant, is Honorary Consul of the Netherlands 1 2

Alberta at a Glance, 2002 System for the Analysis of Global Energy Markets, 2005, EIA International Energy Outlook Report, July 2005

BINNEMA MANAGEMENT SERVICE LTD. Henry Binnema Managing Director

Taking Care of Your Business is Our Business Management,Accounting & Administrative Services for your International Business interests in Barbados Suite 6,The Brick House, Bay Street, ST. Michael • Tel: (246) 228-9669 Fax: (246) 228-8329 • E-mail: binnema@emailbarbados.com

✔ Condo Common Areas ✔ Private Residences ✔ Show Suites ✔ Move Outs ✔ Bonded & Liablity Covered ✔ WCB

Golden Zone Cleaning Corp.

tel: 780.913.5472 EDMONTONIANS JANUARY 2006

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Continued from page 6 The phrase “tax loophole” is a contentious one. But, if it must be used, Simpson would argue that the Canada-Barbados tax treaty is a loophole which has been left open for the right reason — to attract capital back into Canada. “It’s not going to stay in Barbados. That’s just not the way that the scheme is set up. The main thing is, find out what the business opportunities are. Find out what the tax advantages are — both ways. And, if you advocate the position that these tax advantages are a negative thing for Canadians, get informed. Make sure that you’re correct in your position. Make sure you understand it fully.” One last delicate topic that has to be broached is the palpable reluctance among Canadian firms to talk to the media about their offshore IBC initiatives. If the whole thing is above board, we may wonder, why the secrecy? One plausible explanation is that because of the knee-jerk resentment and suspicion that any form of offshore enterprise is liable to inspire in the illinformed, talking publicly just invites unnecessary hassle and bad publicity. Simpson takes up the theme: “The CCRA has the right to audit any time they want, right? Now it is true that when you set up an IBC, you have to fill out the form with your tax return that says, ‘Yes, I own shares in a foreign corporation.’ So it’s not like CCRA doesn’t know that you just invested in an IBC. But why would you wave the flag for them and put yourself

forward as someone who has done this, has this ‘lovely tax advantage’ etcetera? It almost just goads the general public.” We turn away, at last, from the hardball stage of the conversation and unwind into cheerful talk of high level promotional junkets staged in Alberta by the Barbados International Business Association (BIBA), and Barbados Investment and Development Corporation (BIDC) to explain the investment opportunities to the province’s business community. “They are really stepping up their efforts and I think it’s a very positive thing. You know, you can’t sell what people don’t understand,” Simpson remarks. TV keeps us well-informed about the modern phenomenon of the Supermom. Listening to Simpson’s itinerary and picturing the probable density of entries in her day planner, it’s easy to believe that Edmonton is about to welcome in the era of the Superconsul. Reflecting on the inevitable juggling act that goes with her two separate areas of endeavour, she is admirably realistic: “I am going to have to balance all of that and I think, at times, it will be a struggle. I think I’m going to have to be very careful about what I choose to commit time on to make sure that it is purposeful. And, I think it’s very important that I always make very clear whether I’m present in my capacity as a barrister and solicitor, or whether I’m present in my capacity as Honorary Consul.” ✔

2.5% Corporate Tax on International Profits. THE CHALLENGE Canadian companies that wish to go international face significant competition. Global competitors with deep pockets can threaten potential for success through price competition and capital demands. Nonetheless, the policy of the Canadian government is to assist entrepreneurs with their global initiatives. Solutions exist to help companies become more competitive by keeping profits within the business. These solutions help to develop new products and markets, fund research and development, and enhance intellectual property while meeting competitive pricing pressures. THE BARBADOS OPPORTUNITY The Canadian Tax Act and the Barbados double taxation treaty provide a cost savings solution where Barbados operations are only taxed at a maximum of 2.5% and the resulting after tax profits can be returned to the Canadian parent company without further taxation. The foreign affiliate rules of the Tax Act provide beneficial results for Canadians carrying on active business from within Barbados by ensuring that they are not placed at a competitive disadvantage. Canada benefits by increasing the attractiveness for Canadians to expand and compete globally. This allows for repatriation of international profits to reinvest in the company and to distribute funds to shareholders. Barbados is not an offshore tax haven. It is an internationally recognized and accepted tax treaty-based jurisdiction, well regulated and supported with expertise and resources. CONSIDERATIONS The general formula for successful offshore tax planning requires that your subsidiary produce active business income operates from within Barbados. Substance, mind, and management are terms repeatedly heard. It is essential that the Barbados subsidiary operates from within Barbados and its management exercises daily control over the business with sufficient substance to earn the profits expected. SOLUTIONS Location of control and day-to-day management is an important issue for International Financial Service Providers such as Vcc. who deliver customized active business management services. Vcc provides daily operational services, financial reporting, contract administration and set up consultancy. We form companies, instill controls, appoint directors and ensure good governance of your Barbados subsidiary. With over 10 years experience Vcc has invested in its staff and facilities to ensure as partners that we deliver the technology and expertise needed in today’s international business.

Contact us to learn more about this opportunity with a one hour free consultation. STEVEN PARKER L’Horizon, Gunsite Road, Brittons Hill, St. Michael, Barbados Tel +1 246 437-3835 or email Steve@Vcc.bb

Vcc’s mission is to enhance the wealth of our clients through provision of valueadded offshore corporate management services delivered proactively with full accountability. We enable our clients to meet their international tax planning objectives by building strong relationships with our clients through a high level of trust and integrity needed between international partners. EDMONTONIANS JANUARY 2006

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Tax tip:Get thee to Barbados By Michael O’Toole

ere in Edmonton, and the chatty nation at large, there is no shortage of home-grown sound bites offering opinions aplenty on the country’s tax treaty with Barbados and the International Business Corporations which it has spawned. For a hands-on perspective, though, Edmontonians invited three top Barbados-based professionals to share their views about the island’s relationship with Canadian business. George Gleadall, an expat Albertan of British origin and laconic, Pythonesque humour in any and all circumstances, is the former president of the influential Barbados International Business Association, and current president and CEO of financial institution Trilon International Inc. “At the moment, Canada is analysing its needs to expand its economy on a global basis,” he expounds, far more drolly than can ever be represented on paper. “What was set up originally by some forward-thinkers in the Government of Canada was the structure we now have, which seems to come under attack every now and again from an emotional point of view. Somebody looks at the savings that companies are making through the tax structure from

It’s legal, stable and, they say, good for Canada countries like Barbados and says, ‘The [Canadian] revenue authorities are losing millions of dollars.’ But what they forget to look at is what it’s doing for the development of the Canadian economy.” The structure that’s set up, he insists, helps even the middle tier companies to be able to export and gain a competitive edge. “If you can reduce your tax liability in any way, you’re reducing your cost of doing business. And if you’re trying to export to global markets, you have to be very cost competitive.” Like many in the know, Gleadall trumpets the fact that 97.5 cents in the dollar is repatriated to Canada, unlike the typical case of funds held in places such as the Cayman Islands or Bermuda which, he says, tend to become global dollars that never really benefit the economy from which they originally came. Stephen Greaves is president of Platinum Offshore Management Services, and a regular visitor to Alberta, where clients are relatively thick on the ground. “As a management company, we manage a lot of the international business enterprises that are set up here in

Barbados,” he explains. “Some of those are oil and gas companies that have head offices in Alberta. Within the last two or three years, there has been an influx of those types of businesses, which are using the international business structure. These are companies that are doing business globally. This is a tax efficient way of structuring your international side.” In response to some of the tax-related concerns expressed by Canada’s Auditor General, Greaves points out that the treaty with Barbados is not very different from treaties Canada has with a number of other offshore centres. “It’s just that we have the infrastructure to bring businesses here. It makes it easier if you have the calibre of service providers. And Barbados and Canada have had a business relationship for a long time.” For Greaves, the connotations of certain loaded words have contributed to the sometimes negative perception of offshore businesses established in the country. “It’s the way it’s labelled. There is the misconception, and it’s unfortunate, but that word ‘offshore’ throws off a lot of people.” Greaves is also unhappy at the way that terms such

EDMONTONIANS JANUARY 2006

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as ‘outsourcing’ tend to be loosely flung around. “It’s not like India, for example, where people move data processing functions. That’s not done here. Whatever business we get here, I wouldn’t say it’s outsourcing. It’s just setting up international structures that are efficient in tax, tax management and everything else. By creating wealth for the head offices, we probably create a lot of jobs, [but] not in Barbados. We’re creating wealth for the parent companies.” And while some on the outside may talk scathingly of ambiguous tax “loopholes,” Greaves insists that, “those who’ve come to Barbados and know the country and the lawyers and accountants who know the way we operate here, and the type of business we encourage, they know differently.” Henry Binnema, CEO of Binnema Management Services Ltd, is an occasional visitor to Edmonton, home to a number of clients. He echoes many of the arguments his colleagues have deployed in defence of the tax treaty and of Barbados as a business centre. He also adds some surprisingly impartial advice to Albertan companies contemplating an international structure: “Any potential client of mine needs to have proper professional tax advice and guidance from professionals in Canada prior to making a decision as to where is best for their international growth. Barbados isn’t perfect for everybody. It works well with many Canadian businesses because of the treaty. But the Canadian tax advisor is the one that should say that ‘Yes, Barbados makes economic and legal sense to use as your hub for international growth.’” Though the issue seems to have gone temporarily cold, the potential for harmonization of the Barbadian tax rates remains something of a background idée fixe for Gleadall: “The argument against Barbados is that it has this ring fence environment, which is that local taxes are different to the international taxes. So the joke of all of this is, in places like Kuwait, if you have a zero tax rate right across the board

Bridgetown Boardwalk

then it’s not an issue; there’s no ring fencing and there’s no taxes paid. But in Barbados, because we have a tax rate of effectively 2.5 percent on International Business Corporations, and we have a local tax rate on local companies of 35 percent, [critics} are saying, ‘Well obviously this country is going out of its way to attract international business by offering a very low rate of tax.’ The Government of Canada has intimated that that’s what they’re upset about. I’m not sure if they’re still upset about it or if everybody’s moved on from that.”

Barbados National Bank good for Barbados and not overly detrimental to the international businessman unless he’s rate sensitive between 2.5 percent and say five percent. It may act as adding additional certainty to the structures that are set up here.” On the other hand, he concedes, “Other people will look at it and say, ‘Now I’m paying too much tax in Barbados. I’m going to look for somewhere [else].’” Gleadall reiterates that the impression of ‘ring fencing’ of the tax system is the only stick that detractors can plausibly use against Barbados. “Other than that,” he states rousingly, “this is a well-regulated jurisdiction with a lot of controls, and it complies with all international standards from the World Bank, the IMF and everybody else. It’s a good solid jurisdiction.” ✔

Tax guy George Gleadall George Gleadall looks around the world at other offshore jurisdictions, including Cyprus, Gibraltar and even some of the new Eastern European countries, and notes that they’ve all harmonized tax rates at a relatively low level. In his view, Barbados could manage quite comfortably with a five percent rate right across the board. “Generally, throughout the world, there is a trend towards tax harmonization because the ring fencing is an issue everywhere. It comes back to discrimination. You can’t discriminate against one type of structure as opposed to another one. Where everything is equal in terms of tax, there’s no issue there.” Binnema is fairly neutral on the question of tax harmonization, but sees some possible advantages. “It’s

Parliament building and the RBC Bank

We are a team of hands-on professionals experienced in implementing corporate and international tax strategies to achieve global competitiveness. Every effort is made to understand our client’s business, exceed the investor’s requirements for a permanent establishment in Barbados and we guarantee client confidentiality. Platinum’s client portfolio comprises Fortune 500 companies as well as High Net Worth entrepreneurial ventures involved in diverse business activities. Platinum’s core competencies include:

• Incorporation • Accounting and tax services • Corporate governance • Administrative Services • Regulatory compliance • Audit supervision • Banking • Directorship • General Management Why Platinum as your Barbados manager?

• Flexible, cost-effective alternative to establishing a fully staffed operation • Strong working relationships with key industry players • Comprehensive range of functions of an active business • Reduced operating costs Contact details:

Stephen Greaves, President Platinum Offshore Management Services, Inc Braemar Court, Suite 200, Deighton Road, St.Michael, BB14017 Barbados, West Indies Tel: (246) 437-6092/3 • Fax: (246) 436-2120 E-mail: management@platinumoffshore.com

www.platinumoffshore.com EDMONTONIANS JANUARY 2006

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money MAKING

What is the energy source of the future? By Ron Hiebert

he world seems convinced that it is in immediate danger of running out of oil. This flies in the face of the facts; even the most dire of prognosticators can only see global production peaking at present levels, followed by a gradual decline over the next 30 to 40 years. But even if the transition to another fuel isn’t eminent, economies don’t turn on a dime. They need time for the change to evolve. Any quick U-turn in energy sourcing would cause a recession or even a depression. What are the best fuel options are for tomorrow? The main contenders are hydrogen, solar, wind, nuclear fission, and nuclear fusion. Which will be the winner?

FUSION

“

”

Nuclear fusion is called the energy that heats the stars. Many theorists think that pairing it with hydrogen is the ticket to a pollution free, energy rich world. Fusion would create massive amounts of electricity to produce hydrogen fuel for transportation. The problem is creating a fusion reaction. You need to create temperatures of 100 million degrees Celsius and pressures that rival those found on the surface of the sun. To achieve this, scientists are targeting multiple lasers at a central fuel source and then firing them simultaneously. To confine the elements and create the density needed for a reaction, they are experimenting with magnetic or inertial forces to hold everything in place. Unfortunately, fusion is probably 40 years from commercialization.

HYDROGEN Hydrogen is clean burning, doesn’t produce greenhouse gases and is limitless in supply. Its drawbacks are that it takes about 12,000 litres of hydrogen to equal the energy stored in one litre of gasoline. It has to be turned into a liquid to make it useful, which requires tremendous pressure and cold. It is estimated that if every car in the U.S. were to use hydrogen as its fuel source, it would require 1,000 nuclear reactors or a solar panel field half the size of the state of California to produce it. Hydrogen definitely has a great future, but it’s still 10 to 20 years away.

NUCLEAR POWER France produces 76 percent of its electricity from nuclear power, proving it can be safe, economical and practical. For all its detractors, nuclear power has many positive attributes. It doesn’t produce greenhouse gas and it reduces dependence on oil from politically unstable regions like the Middle East. For many, however, the negatives outweigh the positives. The radioactive waste is toxic for tens of thousands of years. In spite of assurances that spent fuel rods can be handled safely, there is no proven way to store it. The risk of our enemies getting their hands on nuclear material and converting it into weapons that can be used against us will keep nuclear technology from becoming available to many parts of the world. Fears that nuclear accidents like Three Mile Island or Chernobyl could happen again create furious resistance anytime a new reactor is planned. A nuclear powered future is technically possible, but no one is sure whether the political and emotional baggage it brings with it can be overcome.

WIND POWER High oil and gas prices and more efficient turbines have made electricity produced by the wind much more competitive. But because wind flow is erratic and unpredictable, it can never be more than a partial solution to the energy equation until we can find a way to efficiently store surplus production. 10

SOLAR POWER According to the Texas Environmental Almanac, if that state’s 262,000 square miles were covered in solar panels, they would generate enough power to meet the world’s total electrical needs one and a half times over. Solar cells need direct sunlight to be efficient. At night or on cloudy days they produce little or no power. Until we can find a way to effectively store solar energy for periods of downtime, this source of power, just like wind, can only be a partial solution to the energy problem.

COAL The outlaw that no one wants to consider is coal. One of its many advantages is abundance. It is estimated that the world has enough coal reserves to last at least 200 years at current rates of consumption. Another plus is distribution. Large coal reserves are found on every inhabited continent. Coal can be transported by conventional means like rail or ship and then burned to produce heat or electricity. As well, companies that burn coal to generate electricity are among the lowest cost producers. As a fuel, coal has the status of ugly duckling. It produces acid rain, huge amounts of greenhouse gases and the mining of it tends to tear up the landscape. What will change this is technology. Instead of pulverizing and burning coal directly, it can now be turned into a synthetic gas or liquid fuel very efficiently. General Electric, has estimated that if 100 percent of all U.S. conventional coal plants producing 51 percent of the nation’s electricity were to use syn-gas technology, that it would save 320 million tons of carbon dioxide. This amounts to 25 percent of U.S. greenhouse gas reduction targets proposed under the Kyoto Protocol. It would also reduce water usage by 30 percent and cut mercury emissions by 50 percent. Injecting carbon dioxide emissions into geological formations, then sealing them underground is a promising strategy that could significantly reduce or negate the greenhouse gas issues associated with its production.

LIQUEFIED NATURAL GAS The U.S. Geological Survey estimates that global gas reserves will last about 150 years at today’s rate of consumption. The challenge is that most of this gas supply is located far from consumer markets and is impossible to transport economically outside of a pipeline in its gaseous state. The solution is to chill natural gas to -260 0 F, turn it into a liquid, and reduce its volume from 600 cubic feet to one cubic foot of Liquefied Natural Gas (LNG). Specially designed ships can then transport it to terminals where it is gradually warmed up and turned back into gaseous form. Experts predict that will supply one-quarter of the world’s energy needs by 2020 and that LNG will be the catalyst that makes that happen.

AND THE WINNER IS… In the back half of this century, fusion, hydrogen and other non-polluting Buck Rogers energy technologies will likely power our homes and cars. But until then two things are certain. The first is that the world will not run out of energy any time soon. The second is that coal and LNG will play a big part in tiding us over until we make the transition. ✔ Ron Hiebert, a director at ScotiaMcLeod, teaches investment classes at Grant MacEwan College. The author of Wealth Building can be heard weekdays at 7:34 am, on CFCW radio (790 AM). Contact him at 780.497.3215 rhiebert@edmontonians.com EDMONTONIANS JANUARY 2006

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INTEL Biz with Cheryl Croucher, Bruce Hogle, Greg Michetti and David Norwood

Science&Tech Success suits Fraser Gallop. Not that I’ve ever seen Fraser without a smile on his face, but these days, that smile keeps getting bigger and bigger. Business is booming at Onware and the young computer whiz turned company president is busy hiring new employees and expanding office space. And now, there’s the launch of the new Onware product line, scheduled to take place at the software company’s open house on January 24th.

Onware’s principals, left to right are Kieran Elliott, Bill Luthi, Fraser Gallop, Jin Pheh, and Warren Blanchet A spinoff from the University of Alberta Software Engineering Research Lab’s LINC Project, Onware’s software provides event management tools including registration, payment processing, and document and communication management for construction projects. Over time, with increased use by clients, it has become apparent that different components of the software have applications beyond what was first envisioned. So now, Fraser and his crew have reworked the product line to capitalize on the interchangeable nature of the parts. The new Onware will feature modules from which clients can pick and choose to fit their needs. Explains Fraser, “This way you can even use Onware to plan a wedding. The event planning module tracks what needs to be done, and the budgeting segment from our facility management looks after the money. With modules, everything ties together and interacts.” As it is, the event and conference management side continues to grow.

Media Minute with Bruce Hogle

Having completed my term as Alberta Press Council chairman, I’m delighted to be back with the fiercely independent Edmontonians, working with Publisher Sharon MacLean, ably assisted by Editor Barb Deters and Marg. Pullishy. With the Senate Committee on the Media releasing its final report this March, all Canadians will be interested in

“To date we’ve processed over $2 million in event registrations. We handled two recent petroleum conferences in Calgary, each with over a thousand registrants. Now we’re getting into larger events and we have some international ones coming up.” Onware has also signed Cohos Evamy as a major client. The architectural firm will implement the newest generation of Onware’s construction software on all its projects. “What’s really neat,” says Fraser, “is that one of the first projects is in Toronto, but it will be managed from Edmonton. Our new generation is displacing Primavera’s Expedition which is the industry standard. Our client tells us Onware’s product is better, it’s more closely aligned with operations, easier to customize...and it’s a fraction of the cost.” On yet another front with potential for expansion is Onware’s coordination of the TEC Edmonton services. This includes management of conferences and events, a resource directory, the business to business listings, the job bank for posting jobs, VenturePrize, spinoff company databases, as well as tenant management online for the RTF building. In the not too distant future, the recently purchased Bay building will be included in the mix, offering virtual tours of the renovated space and automatic preparation of leases. Fraser hopes to take this model to other universities with technology transfer and commercialization units. Looking over the burst of activity and growth, Fraser sums up the bounty this way. “We’ve had a real turnaround since the spring. We’re getting lots of referrals and that certainly beats making cold calls.”

The New Year rings in the 85th anniversary of the Alberta Research Council. Predating even the National Research Council, ARC has grown into a world renowned research agency. The early work of Dr. Karl Clark on separating oil from the oilsands laid the foundation for today’s boom in northern Alberta. The popularity of oriented strandboard in the construction industry is a result of groundbreaking research at ARC. Current research promises great applications in areas its recommendations on the role of public policy in ensuring that the Canadian news media remain healthy, independent and diverse. The media’s role, rights and responsibilities in Canadian society also will be reviewed. When highly respected ex-journalist Senator Joan Fraser and her Senate Committee stopped in Calgary to receive submissions from both print and electronic media representatives, and those who had a bitch against them, I felt they would have been inundated with presentations. That’s why the Senate Committee told me, along with Press Council colleagues Colleen Wilson and Bob Ardiel, to confine our presentation to a maximum 10-minutes. Ditto for the Alberta Weekly Newspaper Association, ably represented by Roger Holmes and Dennis Merrell. I was shocked and flabbergasted to discover that no Alberta media reps wanted to discuss freedom of the press, protection of sources, invasion of

like vaccines for e.coli, new energy from coalbed methane, fuel cells and plant-based feedstocks for plastics.

The VenturePrize Business Plan Competition seminars led by the U of A’s Dr. Lloyd Steier are now finished and the entrepreneurial group has moved on to the hard work of developing business plans. VenturePrize manager Jay Krysler says 85 people participated in this year’s seminars via videoconferencing across the province in seven centres: Edmonton, Calgary, Fort McMurray, Vegreville, Two Hills, Warburg and Grande Prairie. Along with the great advice gleaned from the talks about marketing and financing, I’ve found one of the best parts Colin Christensen so far has been meeting one-on-one with a mentor, in my case, Colin Christensen. Colin has volunteered as a mentor since VenturePrize started four years ago. Another longtime mentor Brian Goheen told me he likes the job partly because he learns so much from the contestants about new technologies and industries. There are 26 mentors in total from Edmonton and Calgary. The January 31st deadline for submitting the business plans will arrive far too soon. Even with six prizes in two categories for $175,000 dangling before us like the proverbial carrot on a stick, for me the most valuable part of the VenturePrize exercise will be the feedback from the professionals who look at the business plans.

I’ve lost a couple of my buddies in the RTF building on campus, Trevor Thera and Dr. Steve Cumming. Now that Trevor has finished his reports for the Life Sciences Platform, he’s taken a position with Alberta Ingenuity and that privacy, multi-ownership, etc. In other words, no one in Alberta had any concerns or complaints against the media. So the Alberta Press Council and AWNA came through for one and all. Senator Fraser was impressed with the APC policies, procedures, and guidelines for Alberta newspapers (other than the Sun papers) and asked that copies be sent to all Canadian journalism schools. The lack of interest surprised me when you consider that the Edmonton Journal led the 1930’s fight against attempted government censorship for which they were awarded a special Pulitzer prize. Or the Edmonton Sun’s battles with city police concerning the Overtime schmozzle. And what about those print/electronic members of the Canadian Association of Journalists? With the wide scope afforded the Senate Committee on the Media, and anyone appearing before them, why would any of the aforementioned — or any other group with an axe to grind against the media —

means a move downtown to Manulife Place. Bye, bye, Trevor! While working on the needs inventory and a draft implementation framework for Alberta’s life sciences strategy, Trevor found that Alberta is struggling with the same issues as Australia, Japan and Europe. Says Trevor, “Everyone’s asking how you develop and sustain a world class life sciences industry when the costs are high. It takes a long time to get the discoveries out there, and equipment goes out of date very quickly. As well, how do you efficiently operate a network of facilities to attract highly qualified people?” What Trevor’s learned is a good foundation for his new position as Director of the Ingenuity Centres Program. There are currently four centres and one institute; among his first duties is the review of proposals for 16 new Centres. The long term ambition of Ingenuity president and CEO Dr. Peter Hackett is to grow the program into a globally significant research organization, similar to Germany’s Max Planck Institute or Ontario’s Perimeter Institute. My other RTF buddy Dr. Steve Cumming is moving to Laval University after being awarded a Canada Research Chair in Boreal Ecosystems Modeling. Way to go, Steve! I first met Steve a few years ago when he presented to the AlPac Forest Management Task Force, of which I’ve been a member since 1992. As a scientist and modeler, he has made significant contributions to our understanding of the critical role fire plays in the renewal of the boreal forest. Fire seems so random. Yet through computer modeling, Steve is teasing the recurring patterns out of the landscape history so that we might predict the occurrence of fire in the future. This has applications in how we should deal with forest fire suppression, climate change policy and reducing the industrial footprint on the boreal landscape. Through his consulting firm Boreal Ecosystems Research Ltd, Steve has also contributed his modeling expertise to a range of ecological concerns, from neotropical migrants to retention of riparian habitat.

Suffering through flu season? Wary of that funny little sneeze from your pet parakeet? If the fear of catching avian flu has you cowering in the corner with your cache of Tamiflu and tissues, hang on. Help is on the way. Telus World of Science will host a public forum on pandemics on January 25th. Preparations are still in the works, but look for a lively and informed discussion from public health experts about what we can expect should a pandemic, flu or otherwise, sweep the world. ✔ Cheryl Croucher is an Edmonton broadcast journalist and host of Innovation Alberta. You can hear the program on CKUA Radio Tuesdays at 8pm or download it when you visit www.innovationalberta.com. E-mail ccroucher@edmontonians.com reject an incredible opportunity like this? That’s why the initial 10-minute Press Council presentation was followed by an excellent two-hour dialogue with Committee members. We explained the role of newspapers and our role as a Press Council. If a complainant cannot satisfactorily resolve a dispute with a newspaper, the Press Council intervenes, as we did in censuring the Calgary Herald for a series on Aboriginals, and the Hardisty World for articles on a proposed massive hog operation. So while I’ve stepped down as Alberta Press Council chair, I’ve been asked to carry on that role as a columnist with Edmontonians, knowing there’ll be no shortage of material to write about. It’s good to be back with you again, with absolutely no restrictions on what can and cannot be said. How blessed I am. ✔ Bruce Hogle is the former news director at CFRN TV and recently retired head of the Alberta Press Council.

EDMONTONIANS JANUARY 2006 Proof_

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BizIT 101 Wave your hand if you use Microsoft Office on a daily basis. With a desktop market share of over 90 percent, it’s probably easier to count the hands of those who don’t use software like Word, Outlook and Excel. These are arguably the most popular personal computer applications in the world. However, just when you were getting used to your Office 2003 and Windows XP Pro operating system, the Gates Gang is changing things again by releasing new versions of these key, bread-and-butter software products later in 2006. Last fall, I was able to get a glimpse of both when I attended the Microsoft Professional Developers Conference (PDC) 2005 at the Los Angeles Convention Center. This five-day event, attended primarily by developers, sold out two months earlier as everybody wanted to see the major new Microsoft flagship product releases: the new Microsoft Windows Vista operating system and the new Microsoft Office 12. The PDC is a big deal — possibly the biggest trade show for Microsoft and only held every two or three years. The company uses the not-so-shy input of developer attendees as a major R&D sounding board for the soon-to-be released software which is generally operating in full beta mode at the event. While most software fundamentals are already written and included, Microsoft finds out what to add, change, tweak and, above all, what not to include in the new roll-out as it heads toward a release date. The feedback is invaluable because, after all, developers at this level really “get it.” Even if you don’t want their opinions, most programmers will tell you, in no uncertain terms, if any new features stink. On the other hand, applause, whistles, oohs or aaahs from the tech-savvy crowd rate as the highest tribute of all. Anyway, Microsoft certainly didn’t disappoint. In fact, it over-delivered. Even though the company effectively uses that old marketing trick of never releasing anything on time, it is much further ahead than most people thought it would be. Better yet, it came out with several new product angles, many of which weren’t expected. Want to know what you’ll be using later this year? Here ya go: Windows Vista You can never be too rich, too thin or have enough RAM, right? The Vista operating system addresses this nicely. Want more memory? Plug in your 512 MB USB memory stick and, as soon as Vista recognizes it, the PC suddenly gets another half gig of RAM. This was only one of the new features that Microsoft chairman and chief software architect Bill Gates outlined in his keynote. He also noted Microsoft would spend $100 million (US) to market the Windows Vista partner showcase and steer customers and partners to develop on Vista. Still, the big question is how will the market accept Vista? According to Microsoft’s group vice president, platforms, Jim Allchin, “Analysts forecast that within the first 24 months of Windows Vista shipping, there will be greater than 475 million new PCs shipped.” Vista will be available in both 32 and 64-bit applications. It is not surprising Jim Allchin Microsoft is going this way. Hardware prices are low and it is generally felt new PC buyers won’t 12

mind spending the extra $200 or so for the 64-bit box. “We feel most of the computers sold a year and a half from now will be 64-bit,” says Elliot Katz, Canadian product manager for Vista. In terms of distribution, Microsoft realizes that end users generally move up to a new operating system whenever they buy a new personal computer. So, it is understandable the most recent version of Windows Vista will be preloaded on a newly shipped PC. Alternately, you can download a copy of the software and burn it to CD. If you change machines or purchase a new clone PC with a blank hard drive, you can still download a copy as Microsoft will have the appropriate installation key matched up with the original owner.

Office 12 and SharePoint The early changes to Office unveiled at PDC 2005 included the replacement of toolbars and pull down menus with graphical command tabs that correspond to the tasks people want to accomplish. The tabs disappear when not relevant and will make it easier for people to “get around” the Office apps. The basic Office programs — Word, Excel and so on — have always worked well together and have always been joined at the hip. Now SharePoint will enter the picture in a big, big way. Users will save their Office 12 apps on a SharePoint site on a Windows 2003 Server. Meanwhile, SharePoint will “sit” on top of SQL Server, meaning all the Word and Excel documents will be housed in a database of SQL “containers.” Watch for Microsoft’s InfoPath to play a far more active part in Office 12. Released as an application on Office 2003, it has not generated as much interest and buy-in as other Office apps but will clearly move up the ladder as integration with SharePoint becomes more popular. The beta 1 release of Office 12 serves as a prelude to a broad public beta release this spring. Customers can register to be notified of its availability at http://www.microsoft.com/office/preview. The concept of Windows is now over 20 years old; the popular and successful Microsoft.Net platform has been around for five years. There is probably no single prognosticator, writer, forecaster or entity that acts as a barometer to predict the success of these new releases but you can instinctively tell they will be highly popular. Perhaps the enthusiastic Microsoft CEO Steve Ballmer said it best in a recent Business Week magazine article on MSNBC: “We’ve set high expectations for ourselves. But, man oh man, have we got an incredible pipeline of innovation coming in the next year.” I’ll say. From what I’ve seen of the early releases, Windows Vista and Office 12 will be something you will like right away. ✔ Gregory B. Michetti of the Alberta-based systems integration firm Michetti Information Solutions, Inc. can be reached via www.michetti.com or e-mail IT101@edmontonians.com.

level. I know many others agree. Especially puzzling has been Air Canada’s reluctance to serve the U.S. market from Edmonton, despite the fact that U.S. carriers have had general success with their transborder routes. (It’s rumoured that even Continental Airlines, which is suspending its Edmonton-Houston service in February, was not losing money on the route, but believed that it could use the aircraft on even more profitable routes.) That fact is reinforced by the introduction of new routes by United and Delta, all using regional jets. So the news that Air Canada Jazz is stepping into the breach left by America West Airlines when it suspended its Edmonton-Los Angeles service in October is significant: Air Canada may be looking at Edmonton in a new light. I find it difficult to be optimistic when it comes to Air Canada vis-à-vis Edmonton, but the new service, although a small step, is one in the right direction.

Strathcona County’s innovative Centre in the Park project recently gained international attention. At the invitation of Alberta Environment, Strathcona County took a display featuring Centre in the Park to a major event, Climate Change Solutions showcase held in Montreal. The showcase was sponsored by the Government of Canada in conjunction with the United Nations’ conference on climate change. More than 7,000 delegates from 189 countries were expected to attend the U.N. conference. Centre in the Park was among just five projects from Alberta being featured as initiatives underway to reduce greenhouse gas emissions. Mayor Cathy Olesen said that Strathcona County was honoured to be able to participate. “This recognition affirms our vision for Centre in the Park as a model of sustainable development, and underlines the leadership being exhibited by Strathcona County and our partners.” Centre in the Park, a partnership involving the County of Strathcona and the private sector, principally Christenson Developments, will include residential buildings, retail services and public spaces, including a central walkway and plaza. One of its key features — and the reason it was featured in Montreal — is a community energy system that supplies heat through hot water piped underground from a central source. The system will serve existing County buildings in the area as well as new buildings being constructed in Centre in the Park, with the potential for others to be added in future. The community energy system is expected to reduce greenhouse gas emissions by 1,100 tonnes per year, about 18 percent less than a conventional system. It will be operated as a utility, meaning all costs will be paid by user fees. Another reason Centre in the Park was invited to the Climate Change Solutions showcase related to its overall design — pedestrian-friendly, with measures to conserve water, environmentally-friendly street lighting and landscaping, the use of recycled and recyclable materials, and locally sourced materials and products.

Greater Edmonton’s $41.6 billion

Civic Buzz Despite the impending loss of nonstop scheduled service to Houston, Texas, Edmonton Airports President and CEO Reg Milley must be pleased with the other U.S. destinations that have been announced recently. United now offers non-stop service to San Francisco, Delta resumed non-stop service to Salt Lake City just before Christmas, and, in perhaps a more significant way, Air Canada Jazz’s non-stop service to Los Angeles starts May 1. Why significant? I have repeatedly expressed my puzzlement and frustration about Air Canada’s treatment of Edmonton, which in my view is far below its potential

regional economy continued its extraordinary growth in 2005. With another healthy economic forecast for metro Edmonton in 2006 — the Conference Board of Canada is projecting a 3.7 per cent GDP growth — plus a phenomenal $85.7 billion in current or announced mega-projects within the Edmonton service area, Alberta’s capital is increasingly viewed as one of the most desirable cityregions in North America for both workers and investors. Edmonton and Calgary remain the two fastest growing major urban areas in Canada. The Edmonton Economic Development Corporation recently released a year-end summary of economic activity in the greater Edmonton region, both for the past year and looking ahead, and it’s a fairly impressive list. A number of

items highlighted in the EEDC summary have been covered in this column as well. Here are some of them. • Canadian Western Bank, which serves business and individual customers in the four western provinces, saw its market capitalization surpass $1 billion and reported its 69th consecutive profitable quarter. • Engineering and design firm Stantec continued to expand and posted record earnings. It also became the first Edmonton-based company to be listed on the New York Stock Exchange. • PCL, Canada’s largest construction contractor, was on track to reach $4 billion in earnings in 2005, shattering a previous company record. The employee-owned PCL group was also named by the Financial Post as one of the top 10 Canadian employers. • CN, with its North American operations centre in Edmonton, celebrated its 10th anniversary as a private company and announced it will participate in a new container port project at Prince Rupert, BC, the western terminus of its Yellowhead/Skeena route. • Enbridge, which is planning to build a $4 billion pipeline along CN’s Yellowhead/Skeena line to export oil to Asia, announced that its terminus would be at Kitimat, B.C. • Computer maker Dell, which opened a customer call centre in Edmonton last year, began construction of a132,000square-foot building in the Edmonton Research Park. Dell also announced it would increase its Edmonton payroll by 250 people to reach 1,000 staff here.

More than $1.7 billion worth of construction projects were announced or underway at the University of Alberta campus, including the Capital Health Care/University Hospital site in 2005. Among them are the $180 million Mazankowski Alberta Heart Institute, the $577 million Health Sciences Ambulatory Learning Centre (new university-hospital buildings dedicated to health research and interdisciplinary science), the $52 million National Institute for Nanotechnology, the $312 million (in two phases) Centennial Centre for Interdisciplinary Science, the $168 million Health Research Innovation Centre, and two new LRT stations, Health Sciences, opening this month, and South Campus, opening in 2008.

Alberta’s centennial was also a banner year for public showpieces in Edmonton. The Provincial Museum of Alberta, renamed the Royal Alberta Museum during Queen Elizabeth’s visit in May, announced a spectacular $180 million expansion program. The Edmonton Art Gallery, renamed the Art Gallery of Alberta, also announced a stimulating $48 million renovation design by architect Randall Stout of Los Angeles. And the University of Alberta Museums and Collections received one of the largest philanthropic donations in Canadian history when Cecile and Sandy Mactaggart donated a collection of rare Asian art and textiles worth $37 million.

As I’ve noted many time before, the housing boom in downtown Edmonton continues unabated; it entered a new phase in 2005 as developers announced plans to build at least 12 to 14 new high-rise condominium buildings in the city core. These new projects, among them the stunning twin 30-storey Icon developed by Langham Properties, are expected to add another 3,500 residents to the area. In the past decade, the population of the downtown core has more than doubled to 12,000 people. 2006 promises to be quite a ride for the Edmonton region, so hang on and enjoy. ✔ David Norwood is a freelance writer/editor. Contact dnorwood@edmontonians.com EDMONTONIANS JANUARY 2006

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corporate ETHICS

By Nizar J. Somji

The lure of the global market place

uring the technology heydays of the late 90s and the early 00s, investors went mad for companies that demonstrated significant revenue growth, regardless of whether these companies had ever shown a profit. The thinking was that with exponential revenue growth, eventually the profit would follow…and when it did arrive, it would be huge. After the tech bubble burst, the focus shifted to profit as the key factor on which companies were assessed and valued. As a result businesses have focused on cutting costs, improving operating efficiencies and concentrating on their core business strengths for the past four or so years. They have been opportunistic about sustainable growth while being careful not to sacrifice profitability, all the while awaiting more certainty in the local and global economy to drive the return to revenue growth. With the continued uncertainty that 2006 promises, businesses must take advantage of the opportunities that exist today, rather than waiting and hoping for a brighter future, and a return to global prosperity. The pendulum has swung back and investors are beginning to once again clamour for revenue growth… not at the expense of earnings this time, but with the appropriate balance between growing revenue

and sacrificing a bit of today’s profit to drive future growth. So how do companies accelerate revenue growth? The textbook options for growing a business immediately come to mind: to expand within the existing client base, to grow the client base, to identify new applications for existing product lines, or to grow the product line. A few quick projections make it clear that growing the client base to reach beyond the city, to the province, to the country and to the world make exponential revenue growth possible. If you sell 20 gadgets in Edmonton, the market opportunity across Canada may be 3,000 and globally, it may be 300,000. Growing internationally requires a strong infrastructure and a well managed financial base. In addition, several aspects of business need to be rethought in light of the idiosyncrasies of the global market place. International success requires a different type of sales and marketing. Outside North America, developing relationships is perhaps the single most critical aspect of the sales cycle as opposed to the typical North American focus on technology, features or price. Consideration must also be given to other aspects of business. For a technology company, how will you support

an international client base? Will you need to translate various documents, including marketing materials into other languages? How will you ensure that your message has relevance, and not an entirely unintended meaning, in an unfamiliar language? Even major corporations such as Coca-Cola and McDonalds have had to re-brand and repackage to account for regional differences in culture, language and taste. As an Albertan, I find the lure of the global market space intriguing. Even more intriguing is the huge opportunity that exists five driving hours north of Edmonton in the development of the oilsands. Here, the key will be how local companies are able to compete against global organizations that are all vying for a piece of the action. Success will require the same rigor and energy necessary to develop a global presence. I wish you all a very happy and prosperous 2006 and every success in building your business, whether it is locally or globally. ✔ Nizar J. Somji is the president and CEO of Matrikon Inc., which trades on the TSE under the symbol of MTK

• 2006 Social Calendar — more than 125 galas and events sponsored by registered charities, social and cultural societies,business/professional organizations and other not-for-profit groups • Edmonton Consular Corps contact list

without borders BUSINESS

By Daniel Mothersill

ell, it had to happen. Without warning, a business associate asked me the other day when I might be retiring. “You’ve had a long career and accomplished a lot; surely you must be thinking of taking things a bit easier,” he said. I must have had a shocked expression on my face because he quickly changed the subject, ordered another glass of mediocre wine, and began to chow down on the vaguely edible munchies that are inevitably served at the numerous mandatory cocktail parties that proliferate in the business community during this time of year. But as I sipped my “plonk du jour”, I actually began to reflect for the first time on retirement and whether I should begin to consider cutting back a bit. What would I do? What would I want to do? How would I fill up my time? Are there things that I would pursue, if I had more time? So in order to wrap some discipline around this examination of conscience, I began with a mental list of what I had accomplished during the past year. That list went something like this: • • • • • • • • • •

Founded three new enterprises; Exited (almost successfully) from two company investments; Became President of the National Angel Organization (NAO); Launched a life-science angel investment group in Toronto; Prepared the way for the launch of another angel group in the spring; Became an advisor/mentor to four start-up companies; Moved the yardsticks with the feds and various provincial bodies on the implementation of a 30percent tax credit for angel investors; Developed a series of bootcamps on commercialization, angel investing, and mentoring; Delivered some 20 entrepreneurial bootcamps across Canada. Attendees went on to raise an estimated $50 million; Worked with a great team to turn around an investee company, doubling revenues in less than a year;

Retire? Over my dead body! • •

Presided over the largest-ever gathering of angel investors at the NAO Summit in Ottawa; and Significantly expanded my personal and professional network.

It seemed a fairly substantial list. “But what are next year’s milestones,” I asked myself, “for which the groundwork has been laid during the last 12 months? And could I possibly turn my back on them?” So I began to concoct another mental list, focusing on what 2006 might include, with special emphasis on things that I am already committed to doing. That list looks something like this: • • • • • • • •

Launch two funds, with an equity position in a third; Re-open an office in Alberta, focused on investor relations; Expand the entrepreneurial and angel bootcamp program from 20 to 40 sessions; Work with TSX Venture’s CPC program and take at least two companies (with which I have been working for some time) public; Double again the revenues of the turnaround company; Launch two new software products (maybe three); Add at least two emerging companies to my portfolio; amd Modestly increase my board participation.

In addition, I’m already committed to helping facilitate the creation of several startup companies. And I do want to polish my squash game. Well, so much for retirement. As my wife reminds me, she married me for life, not for lunch. The thought of me wandering around the house all day is truly abhorrent to her, especially since she’s not usually there to supervise. And she’s right. I’m having far too much fun building and creating commercial opportunities. Sometimes losing; often succeeding. The reality is that I am doing exactly what I set out to do when I left corporate life in 1991. It was a tough decision. I had a great job with a superior salary, bonuses,

car, expenses, key to the executive dining room, and a lot of freedom to put innovative programs in place and create new initiatives. Then, in the teeth of a howling recession, I came home one day and announced that I wanted to start my own business, something that I had been thinking about and vaguely planning for more than a decade. Did I have a game plan? Yes. Did I follow that plan? Absolutely. Did that plan work out? Not in the least. The reality was that two decades in large corporations had really taught me very little about running or creating a business of my own. I was forced to go back to the drawing board and develop new models that would translate great ideas into profitable businesses. It quickly became apparent that I was entering uncharted waters. There were few paradigms and fewer resources available at that time for those attempting the successful commercialization of innovation. If one wanted to start a hot dog stand, there were lots of government-sponsored advisors. But if the vision was a little larger, there was precious little available from people who had been there, done that. Entrepreneurship in Canada has improved considerably since 1991, but there are still gaping educational and informational holes that need to be filled if we are to develop an entrepreneurial culture in this country. Perhaps that’s why I spend a large part of my day sharing with others some of the hard economic and personal lessons that I have learned since striking out on my own. In my reflections at that cocktail party, I recalled the saying that freedom is the ability to choose one’s own master and one’s own prison. As a serial angel and serial entrepreneur, I believe I’ve chosen wisely and am happily serving a life term. ✔ Dan Mothersill is chairman and CEO of the Ciris Group of Companies. The Ciris Group is an integrated full-service communications agency—a one-stop shop whose clients range from emerging enterprises to Fortune 500 corporations. E-mail dmothersill@edmontonians.com

EDMONTONIANS JANUARY 2006

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WineWise with Darryl Lesiuk

Slimming Secret! Lose Lose 4 4 to to 20 20 inches inches in in an an hour! hour! A hot new detoxifying body wrap! There’s a secret buzzing all over Greater Edmonton that we can’t wait to tell you about… “ I was attending a special event and had borrowed a strapless black dress, but it was a little snug,” remembers Nadine Jolson. “A friend suggested the wrap.” The mineral soaked bandages “felt kind of like a corset,” says Nadine. But it was worth it. “I rushed home to try on the dress and it was loose. I could wear it and actually breathe.” “You start by recording your before measurements,” says Linda Perras of Suddenly Slimmer. “We check jaw, neck, forearm, wrist, bust, waist, abdomen, hips, upper thighs, lower thighs, calves and ankles. Then comes the treatment itself.” 1. The wrap. You are wrapped firmly with elastic bandages soaked in warm mineral solution. 2. Get your blood pumping. Light physical activity revs up circulation. 3. Remoisten. Every 20 minutes, the mineral solution is applied. After 60 minutes, the wraps come off.

Why it works? The wrap detoxifies the body. The body can get overloaded with toxins because it cannot keep up with the filtration process. The more toxins in the body, the more lymphatic fluid increases to protect cells. You force out toxins. Once the toxins are gone, the lymphatic fluid decreases and you lose inches. It is not water loss—rather, an exchange of minerals for toxins.

That’s a Wrap! Call Linda Perras at Suddenly Slimmer Day Spa

780.459.3444 pedicures. manicures. facials. aroma therapy message

www.suddenlyslimmerdayspa.com 14

ou can bake them, shake them, fry them, flake them — no matter the preparation method, the noble potato, which doesn t always get the www.edmontondowntown.com respect it deserves, is one of the best www.breakforthcanada.com DOWNTOWN EVENT LISTINGS known vegetables in the world. 780.917.7670 And best loved. Long before www.shawconferencecentre.com Gerbers made its move into the market with pureed mac and cheese, WINSPEAR CENTRE FOR MUSIC babies were weaned on the creamy, mashed version of the spud; in most Edmonton Symphony Orchestra instances, this was the beginning of Masters: Decker/Juillet a life long love affair with the tasty January 13 and 14 Al Pac Country Series: Jerusalem Ridge tuber. Post World War II and pre the Women’s Movement, every young January 17 Robbins Pops: Glorious Gershwin girl worth her weight could wield a January 20 and 21 potato peeler and dig out potato Your one stop for event information on Masters: Eddins/Fewer eyes with great dexterity by age six. Edmonton’s Arts District January 27 and 28 Contrary to popular belief, you www.theartsdistrict.com ESSO Symphony for Kids: Mozart’s can eat potatoes often without fear Voyage of fate, the addendum of course Brightnights on the Square January 28 being you have to control your Sir Winston Churchill Square penchant for the butter, sour cream, Until January 8 Also playing at Winspear… ketchup, mayo. World at Winspear: Potatoes grow virtually anywhere, African Guitar Summit in any type of soil, with little January 12 attention, though this writer does A Birthday Party for Mozart remember having to hill them at January 15 least once every growing season, for Pro Coro: Mozart’s 250th Birthday no apparent reason. January 22 They seem to thrive no matter the weather conditions — hot and dry, Box Office: 780.428.1414 dreary and damp, the persistent www.winspear.com potato prevails. And today, in our designer mad society, they come in STANLEY MILNER LIBRARY THEATRE a variety of colours. Not many years Philosopher’s Café Bluebeard’s Castle/Erwartung Brunch ago, the white potato, also known as January 14, 2pm Crowne Plaza Chateau Lacombe the Irish potato, was the only one 780.496.7063 January 29, 11 am Cinema at the Centre:Agata and the Storm available in these climes. Today, www.edmontonopera.com check your supermarket and you ll January 11, 7 pm see reds, yellows and even purple. 780.496.7070 ART GALLERY OF ALBERTA Now here’s the best part. There www.epl.ca waniskak (rise up), knawapatamohk are some wines that enhance the (look around you), acmohk (tell your flavor and favor of potatoes. (Side MUTTART HALL, ALBERTA COLLEGE story) bar: The mashed versions of the Edmonton Youth Orchestra: Until January 8 splendid spud is great for treating Northern Alberta Concerto Competition Inuit Art: A Moving Experience; Travel hangovers). January 15, 9 am to 6:30 pm and Transport in the Arctic But on to more refined subject 780.420.1757 Until Februrary 26 matter. When selecting a wine to Edmonton Classical Guitar Society: IttuKiagâtta: Inuit Sculpture from the your enhance your favourite, keep Goran Krivokapic TD Bank Financial Group the food recipe in mind. Generally January 27 Until February 26 speaking, a softer combination, such Book Launch: An Alberta Art Chronicle, 780.420.1757 as scalloped potatoes, calls for a Adventures in Recent and softer-in-taste-profile, such as MORE DOWNTOWN VENUES Contemporary Art Sauvignon Blanc or even a mature January 20, 7 pm FAIRMONT HOTEL MACDONALD Chardonnay. Building a Collection: Alberta Ballet Annual Gala Some excellent examples are the 80 years at the EAG January 27 Chilean Miguel Torres Sauvignon January 21 to April 2 Brandi Wurtz: 780.428.6839 ext.3 Blanc $14.95, the Canadian Henry 780.422.6223 www.albertaballet.com of Pelham Reserve Chardonnay www.edmontonartgallery.com Est. $16.95, Oyster Bay ChardonRED STRAP MARKET CITADEL THEATRE nay $16.95 and French Joseph Snap Gallery Drouhin Pouilly Fuisse $28.95. David Scott Armstrong: Fully Committed If your potato dish is a little And Now, Then Otherwise January 24 to February 12 stronger, a more forward-tasteJanuary 15 to February 18 I Am My Own Wife Artist Reception profile, such as a Riesling and January 28 to February 19 February 16, 7 pm Gewürztraminer should do the trick. Box Office 780.425.1820 780.423.1492 Some example wines that fit this www.citadeltheatre.com www.snapartists.com profile are the Canadian Mt. Image Theatre: Play Strinberg Boucherie Estate Collection ZIEDLER HALL January 19 to 28, 8 pm Gewurztraminer $13.95, the French Metro Cinema 780.420.1757 780.425.9212 Pierre Sparr Gewürztraminer www.metrocinema.org Reserve $17.45, and the Henry of McDOUGALL UNITED CHURCH Pelham Dry Riesling est. $14.25. Music Wednesdays at Noon. Free! SHAW CONFERENCE CENTRE For the adventurous try the Chilean January 25 Miguel Torres Rose $11.95 or Vietnamese Lunar New Year’s Festival 780.468.4964 Miguel Torres Cabernet January 14, 1 to 4 pm Sauvignon $ 12.45. ✔ 780.424.8934 FOUR ROOMS RESTAURANT Break Forth Canada Live Music Contact January 27 to 29 Thursday, Friday and Saturday Evenings dlesiuk@edmontonians.com. 780.417.5082 780.426.4767 EDMONTONIANS JANUARY 2006

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LIVELY lifestyles

Visit www.edmontonians.com for more Lively Lifetyles with Linda Bodo, Chef John Berry and Darryl Lesiuk

Couch Potato with Linda Bodo

ouch potato: slang for a person who spends most or much of his time sitting or lying on a couch, perhaps watching television in his underwear, likely sipping something cool. The standard image is of someone who’s overweight and out of shape. The exact origin of the term is unknown, but many believe it’s related to people’s habit of eating potato chips while watching TV. The television has long been referred to as the “tube,” and those who watch television became known as “tubers”—not coincidentally the fleshy part of a root or an underground stem.

It’s January in Edmonton. Blowing snow pummels frosted windows, as gale force winds tear through the city. You spend exactly 30 seconds contemplating shoveling the walks before you rationalize that it would be futile. The crackle of burning wood reminds you to throw another log on the fire; you hold your hands out to the flames to take the chill off. In the distance, a faint but clear voice captures your attention. It is your couch calling, gently reminding you of that old black and white movie you have been hoarding for just the right moment. Armed with a heavy afghan and a bowl of fresh popped popcorn (or potato chips if you one of those!), you grab the remote and snuggle in for an afternoon of indulgent escapism. The sidewalks can wait. There are an infinite variety of couches available on today’s market. Upholstered in a range of textiles and leathers; they take the form of divans, chaise lounges, loveseats, settees and ottomans. If you prefer to hang on to your old favourite, consider slip covers to change the look and feel of your seating. Professionally made, custom slip covers offer versatility and protection. These tailored skins attach with Velcro or zippers, giving the appearance of original upholstery. However, these covers carry a high price tag. A less expensive alternative are mass-produced slip covers that fit loosely but ultimately deliver similar results. Whether you seek a serious theater experience, an avant-garde approach to lounging, a decadent divan for Fido, or a diverse sectional that can be reinvented periodically; there is couch out there somewhere…just calling your name.

durable. Aimed at the 30 to 40 year old crowd, the Sake boasts built in lumbar support, which complement the low and deep seating. The Lycra stretch ribbed fabric can be removed for dry cleaning. 3. Man’s best friend deserves to watch the tube in style as well. Digiuseppe Interior Design (6 D Perron Street, St. Albert) offers this handsome leather model with wood carved legs and removable cushion. Lassie would definitely approve. 4. Sectionals are popular in traditional family room plans as well as open, elegant concept living. Typically enjoyed in large spaces, sectionals have evolved to offer condensed seating suitable for smaller areas. The Retreat Sectional at Ethan Allen offers various configurations to fit almost any space. The kiln-dried hardwood frame is available with hundreds of fabrics, as well as custom leather. Sectionals have made the move to media rooms as well, due to their comfort and maximum seating provisions.

Absolute Facts:

1. For movie marathons or catching the big game, La-Z-Boy offers home theater seating with built-in conveniences. Ergonomically-designed chairs boast trays and cupholders. Angled backs allow the viewer to enjoy optimal viewing and audio sound. Available with power reclining and pillow-top seats, they are offered in leather or suede like fabric with trays and cupholders in Spanish burl or brushed metallic finishes. 2. Le Belle Arti (16844-111 Avenue) carries the Ligne Roset line of contemporary French furniture. The Sake ‘slouch couch’ is part of an all-foam collection that is lightweight and extremely

Originally, the couch was considered an Arabian ruler’s throne and has been in existence since antiquity. In Roman society, the couch was referred to as the ‘triclinum’and usually graced the dining room. Three couches were arranged around a low table where the men would recline while eating. The women sat in chairs. The couch is often associated with Freudian psychoanalysis. Freud originally used the couch as a tool to aid hypnosis of his patients. He justified this with the need to limit the transference between psychoanalyst and patient, proving the couch particularly useful because it limited the visibility of the analyst. The term chesterfield is commonly applied to a sofa in honour of Philip Stanhope, the forth Earl of Chesterfield (1694-1773). According to the OED (Oxford English Dictionary), it was referred to as a couch in 1900. Privileged Turkish sultans of the vast Ottoman Empire ruled from upholstered armless and backless benches. Today, they are referred to as ‘ottomans’. ✔ Contact: lbodo@edmontonians.com

EDMONTONIANS JANUARY 2006

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Mergers, Acquisitions

& CORPORATE FINANCE Stephen W. Kent, CA (780) 448-9099

HEALTH AND WEALTH CHECK-UP

Architect Vivian Manasc

It’s the start of a New Year and a great time to set some goals. Many of us have decided this is the year to get into shape, lose some weight and improve our diet. Taking a broader focus on these goals, you might want to think about your business in a similar light. Perhaps it’s time you had a third party examine your business to determine what it is really worth. Do you know what drives the value in your company and how these drivers can be improved? Can you pinpoint the factors that enhance or diminish its value? Even if you’re not planning on selling your business for a number of years, you need to know today if you are creating a business that will not only be saleable but one that will be saleable at the price you expect to obtain. The most heartrending meetings we have are those where we have to inform an owner who has invested his last 20 years developing a business that his or her business is only worth the value of the assets. So what do we look at when we do a Business Check-Up? We evaluate numerous aspects of the business, such as the way ownership is organized and the agreements that are in place or not. We look at the market you are in and your position within it and any trends that might affect the value of your business. We review your reporting systems both management and financial, to determine how effective, timely and meaningful they are. There are still a number of owners who believe that as long as there is “money in the bank, they’re doing okay”. Buyers today expect a much higher degree of business sophistication. We assess the inherent goodwill in your business and determine if it is transferable or strictly personal. Do key employees have strategic relationships with your clients or is client loyalty dependent on your ownership? Do you have a diverse group of clients or does one client account for the majority of your business? We examine financial performance and how it compares with your competitors, including the optimal structure of your Balance Sheet. The factors to consider are vast and dependent on the type of business we are examining. If you would like to learn more about our Business Check-Up services, please email me at skent@foundationgroup.ca or call me at 780.448.9386. For more information about Foundation Group visit our website at www.foundationgroup.ca.

EDMONTONIANS JANUARY 2006

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