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VOL.XVII NO.7

JULY 2006

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World Champ Jelena beats U.S. Playmate Mia St. John ~ See Forbes ~

EDMONTONIANS JULY 2006

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Poll

STATION T

he United States government continues to bolster its homeland security.

Beginning in 2007, Canadians without a passport will be barred from entering the U.S. by air or sea, unless they have a special U.S. border crossing card or other accepted documents. In 2008, this requirement will be the norm for land entry as well. This month we asked Edmontonians for their thoughts regarding homeland security.

HOW CONCERNED ARE YOU ABOUT TERRORISM?

Percentage

HOW SATISFIED ARE YOU WITH BORDER SECURITY?

country. Almost half (48 percent) agreed the government is doing the best it can to protect the country, while 33 percent disagreed. Only half (49 percent) felt that a passport should be a requirement to enter the United States.

Manditory passport/photo Identification required

30%

Percentage

65%

19%

17% Said they were very satisfied with the level of security at Canadian borders

Said they were satisfied with the level of security at Canadian borders

Said they were very or somewhat dissatisfied with the level of security at Canadian borders

Respondents were asked to rate their satisfaction with the level of security at Canadian borders. Approximately two-thirds (65 percent) were satisfied with border security with 17 percent very satisfied. Nineteen percent were very or somewhat dissatisfied with the level of security at Canadian borders.

Almost two-thirds (63 percent) of respondents indicated they hold passports, and 65 percent agreed that passports are an effective way to help secure the

12%

11% 5%

60%

Said they felt that Canada is not safe from terrorist attacks

Percentage

With Linda Banister

Said they felt that Canada is safe from terrorist attacks

Respondents were then asked to rate their level of concern that Canada is a target for terrorism. Sixty-six percent expressed some level of concern, while 30 percent were very concerned. Almost 60 percent did not feel that Canada is safe from terrorism, while 30 percent feel it is.

WHAT COULD BE DONE TO IMPROVE BORDER SECURITY? Finally, survey participants were asked to identify what could be done to improve the security at our borders.

The most common response, made by 12 percent of respondents, was mandatory passport/photo identification requirement. Eleven percent suggested increasing security staff on patrol as a method to improve security at our borders. Numerous other

Increase the number of security staff on patrol

Stricter immigration standards

4% More checks and consistent screenings at border crossings

suggestions were made including: stricter immigration standards (five percent); more checks and more consistent screenings (four percent); and stricter monitoring and documentation of inbound and outbound activities (four percent).

Over three-quarters (80 percent) of respondents believe that an increase in safety is worth some inconvenience caused by tightened security.

The Poll Station surveyed 100 City of Edmonton 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. ✔ 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.

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pompous & unfair FUNNY

By Muggsy Forbes

T

he lights flash and the music pulsates

between fights at the WIBF Lightweight Championship of the World. There are six matches: three men’s, three women’s. The crowd reaction is flat; they’re waiting for the main event, Edmonton’s own Jelena Mrdjenovich.

Nearly 800 boxing patrons nosh on coq au vin and cherry coconut cheesecake before the show; about as many again sit in bleachers or stand at the back of the Shaw Conference Centre. Cleavage is the fashion du jour for the event that draws more women than expected. The bikini girls work their hips and the room; they carry big cards so we know which two-minute round “the Champ” we’re about to watch.

Jelena Mrdjenovich Event sponsors Bonnie and Gerry Gilroy—he used to box back in the day—are front and centre. They’ve taken time out from building their mammoth Independent Jewelers store next door to Lexus of Edmonton.

An older gentleman complains that heavyweight fighters Sheldon Hinton from Edmonton—dressed in outsized, orange shorts—and Vancouver’s Mike Lewers, “fight like 80-year-old men.” Hinton wins. Boxing enthusiast Alex Mason who appreciates technical finesse says the fight card—especially the men’s—is terrible. “It’s embarrassing.”

But he wants your agent to know that Edmonton fans, like Colin Williamsen, are great. Local fighters win four of the six matches, promoted by Glen Carriere of KO Boxing.

Finally Jelena enters the big hall. The crowd erupts; she receives her audience like a rock star. It’s a big deal since the fight is airing on Fox and she’s meeting the ranking fighter—the older and more experienced defending champ, Mia St. John who once graced the Playboy cover. It doesn’t matter because Jelena rules the night…and her career gets launched in the United States. And the fans love her. The clock strikes midnight, and Jelena turns 24. Nice.

She dreamed of raising over a million bucks in

©2004, 2005 Scott Kay, Inc. All Rights Reserved. All images and logos are trademarks of Scott Kay, Inc.

an hour. Impossible, you say? Not for Elaine Warick, recognized by the YWCA for doing just that. Chair Donna Zazulak of Derks Bridal Fantasy oversaw the Women of Distinction gala that recognized 13 women for their work in the community; Elaine won in the category of business management and the professions. She’s the gal who imagined having friends over for One Hour Only to learn something about Norquest College… and a funny thing happened: many of those companeros reached into their wallets. Elaine and her group at the foundation and

Champ Jelena wins third belt ...and your scribe gets Googled development office started offering a modest but healthy breakfast three years ago for 400 guests and, last year, they raised $1.5 million. In an hour. No silent auction, no dance, no stage show—except Patrick Laforge and those inspiring Norquest students. Elaine would be the first to say the One Hour Fundraiser wouldn’t be possible without many volunteers and lots of friends. Masterful.

Take a page from Edmonton’s German community, advised Thomas Lukaszuk, PC representative for Castle Downs. The politician spoke last month at the Upper Crust café to members of the Italian Chamber of Commerce. Thomas was referring to the prophetic task undertaken by Horst Schmidt during the Lougheed years to develop trade relations between Alberta and Germany.

Italians want to do the same and it’s in Jonathan Butterworth’s plans to create a network of opportunities to help unite Edmonton-based companies that have dealings with Italy. In the last year alone, the charming enthusiast organized the Flavours of Italy, a fashion show, and a reception to welcome a bank sponsorship—marking the Chamber’s third anniversary in Edmonton. Spotted in the crowd eclectic were Gay Derk of Derks Formals, Fil Maiorana of Real Stone Works, Joe Cairo of Marvel Group, and Dr. Carlos Pechtel de Avila.

If you love Latin music and dancing, set aside August 15th for the LatinFest in Churchill Square. The Ballet Folklorico “Mexico” of Edmonton Society came into being five years ago, although many of the dancers had been performing together for several years. The group is popular with many of the local charities, Heritage Days, extended care facilities and so on. It’s a great event; your toe never stops tapping. If you feel like joining in, nobody minds. See you there.

I can be Googled. In fact, that’s the way a number of people have found me. The latest was a friend from about 20 years ago. It was a pleasant surprise to hear from Ron Koyich and to spend some quality e-mail time.

He’s retired, living in Hong Kong and has home in Australia where he keeps his twin engine aircraft. Not bad for an Edmonton boy. Some choice quotes from his e-mail: “After working with Bev Brooker and Don Wheaton, I went on to CITV in the engineering dept for a couple years, then to Ampex in Toronto… in Australia… in Hong Kong, where I was dumped on the street in the 1990 down-sizing of that company during a recession.

“I set up my own company selling television broadcasting equipment. I got the distributorships for a number of other manufacturers from Canada, Europe, Australia. Did well at it and retired in 1997.

“Met my present wife Sarah, an Australian lass—who became my third and final wife in 1993—in 1990, while we were both traveling from Hong Kong to Bombay. Didn’t go out while in India, as we were both too busy, but did get together back in Hong Kong, only to find out we lived in the same building!

Ron was here for a wedding, and we had a chance to grab a few minutes at the Edmonton Flying Club where a bunch of us had learned to fly. It was like old home week.

Giuseppe Albi, GM of what is now called Events Edmonton, has been doing some traveling in the past few months. First it was Italy for a trip to his birthplace and to visit relatives. He came across a real stampede on the outskirts of Rome—horses, cowboys, square dancers, an arts and crafts booth, and even North American Indians. All the trappings of a Wild West show, in Rome already.

Nashville was Giuseppe’s next stop. At LP Field (similar to the Shaw), he caught performances byTerri Clark, Trisha Yearwood, Kenny Chesney, Trace Adkins and Winona Rider. He attended Sunday Morning Gospel at Ryman Auditorium, home of the Grand Old Opry. Brenda Lee was the M.C., and the featured act was George Hamilton the IV. He’s back for Taste of Edmonton, the food fest in Churchill Square, organized by Events Edmonton. This year there will be three stages: The Taste of Wine, in a large tent in front of the Art Gallery of Alberta, will be set up like a friendly bar with small groups playing.

Ten liquor merchants, representing various distributors, will offer different wines every day—a very happy tent.

There’ll be continuous music on the main stage, featuring such names as Sahan Hogan, Jack Semple and Cruzers group. The City Stage is for up-andcoming entertainers.

I asked around about slate companies and, to a person, all suggested Blanchette Slate. The company was started in 1997 by Rachel and Kevin Blanchette.

Both love the production of quarrying slate. They import from at least 22 countries, but mainly China and India. If you want to see some great slate, stop by showroom at 11577 - 149 Street. It’s like walking in the hallways of the Vatican… well, maybe not quite.

Rachel explained that “…part of the price you pay is for my relationship with quarry operators. Not all stone is created equal and I trust [these people] to give us exceptional product. What’s also happened, because of difference in quarries, is that slate can be sliced much thinner. We can ship almost twice as many for the same cost, making it less expensive landed in Edmonton.”

Makes sense.

If you haven’t got your golf/entertainment card for this season, I recommend the First Class Card.

It’s put out by my good friend John Ough. John had a very bad accident a number of years ago and has more braces than the High Level Bridge. Call 780. 448.9676 for a card. ✔ Additional reporting

by Edmontonians staff.

Call Muggsy Forbes at 780.482.4545 or e-mail mforbes@edmontonians.com

Scott Kay Vintage Platinum Collection EDMONTONIANS JULY 2006

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CELEBRATING

17

money MAKING

YEARS

By Ron Hiebert

FOUNDER DICK MacLEAN

Vol. XVII

JULY 2006

No. 7

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

INSIDE POLL STATION Border Security/Banister . . . . . . . . . . . . . . . . . . . .3 FUNNY, POMPOUS AND UNFAIR Champ Jelana/Forbes . . . . . . . . . . . . . . . . . . . . . .4 MAKING MONEY Conspiracy theory/Hiebert . . . . . . . . . . . . . . . . . .5 INTERNATIONAL BUSINESS Wal-mart/Wegmann-Sanchez . . . . . . . . . . . . . . . .6 FEATURES Out of the West/McHugh . . . . . . . . . . . . . . . . . . .7 Friendly competition/O’Toole . . . . . . . . . . . . . . .10 China?/ O’Toole . . . . . . . . . . . . . . . . . . . . . . . . .12 Water, water/McHugh . . . . . . . . . . . . . . . . . . . . .13 Legislative systems/Kowalski . . . . . . . . . . . . . . . .14 Workforce/ O’Toole . . . . . . . . . . . . . . . . . . . . . . .15 Edmonton’s image/Nizar . . . . . . . . . . . . . . . . . . .15 BIZINTEL Science and Tech/Croucher . . . . . . . . . . . . . . . . .16 BizIT/Michetti . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Media Minute/Hogle . . . . . . . . . . . . . . . . . . . . . .17 Civic Buzz/Norwood . . . . . . . . . . . . . . . . . . . . . .17 LIVELY LIFESTYLES Absolute Bodo/Bodo . . . . . . . . . . . . . . . . . . . . . .18 MenuMagic/Berry . . . . . . . . . . . . . . . . . . . . . . . .18

BARB DETERS Editor

editor@edmontonians.com COLUMNISTS Linda Banister John Berry Linda Bodo Cheryl Croucher Muggsy Forbes Ron Hiebert Bruce Hogle Greg Michetti David Norwood Nizar J. Somji Jessica Wegmann-Sanchez FEATURE WRITERS Peter Drake McHugh Talea Medynski Michael O’Toole Marg. Pullishy Peter Roccia PHOTOGRAPHERS Terry Bourque Cheryl Croucher Barb Deters

S

ometimes stuff just happens. There is no reason.

Its occurrence is random—completely unplanned; yet there is a contingent of people who can’t accept life’s arbitrary nature. They see manipulative forces behind everything. To them, events are either controlled by something or someone.

In the financial realm, there are some amazingly creative conspiracy theories. You need to understand them and their basic flaws so that you aren’t separated from your wallet by them.

THE BIG OIL CONSPIRACY No industry inspires more conspiracy paranoia than big oil.

Currently, there are many variants spinning off of one major theme.

The main belief is that the current high price of crude is the result of the major producers and refiners agreeing—behind the scenes— to limit the amount of product that they bring to market, thus driving prices to their current sky-high levels.

This theory is rooted in a comprehensive failure to comprehend how free markets work. If the big multinational energy companies actually could control demand, why did they wait more than two decades since the last major supply demand imbalance of the early 1980s to try it again? This is a pretty wimpy cartel. Over the span of 20 years, oil prices twice hit $10 per barrel, driving some major players like Dome Petroleum into bankruptcy. If oil’s price had just kept up with inflation, it would be $100 per barrel today. Why couldn’t the major players get prices to grow at greater than two percent per year? Some conspiracy.

Anyone that understands demand destruction realizes that when prices go up too far too fast, people reduce consumption of that product and the market finds other ways to produce it. OPEC’s biggest worry right now has to be high prices encourage the development of renewable energy sources like hydrogen, wind power, solar energy and bio-fuel. Once the infrastructure is in place to produce alternative energy, it will forever compete with hydrocarbons—inevitably driving their prices down. OPEC should increase production until oil prices drop back down to $40 per barrel. That would ensure a very nice profit for member countries, while keeping prices low enough to curtail the development of competing sources of energy.

THE INVASION OF IRAQ The second big oil conspiracy theory is that the United States invaded Iraq to secure oil production for the western world. Conspirators use the argument that, in past lives, George Bush and Dick Cheney owned and worked for energy companies and, as a result, were put up to the invasion by big oil.

This is an engaging idea but, unfortunately, the math doesn’t work.

Iraq is producing about one million barrels per day, or 365 million barrels of oil per year. At an average price of $70 per barrel, all that the U.S. could make by usurping its production is $21.6 billion dollars per year. The U.S. is spending 10 times that amount each year on maintaining its military presence in Iraq. One has to assume that America didn’t get to be the world’s richest country by being that financially stupid.

CONSPIRACY THEORY BIG PHARMA & THE FDA The Food and Drug Administration in the United States is responsible for approving drugs for use by the general population. Because it has the most rigorous and exhaustive evaluation procedures in the world, getting a drug onto shelves in America is considered the gold seal standard in much of the rest of the world.

There is a lot at stake here. A mediocre drug can easily achieve a half billion dollars in sales per year over its 17-year patent life, and a blockbuster could earn 20 times that much.

A process that has so much potential profit based on its outcome is always suspect to tampering and back room deals. Here again, conspiracy theorists don’t disappoint. Chat rooms and conspiracy sites are rife with stories of the cozy relationship drug companies have with the FDA, and how big pharma continually pays off the scientific community doing the testing to get the outcomes that they want.

Once again these stories make great headlines, but the information they’re based on isn’t worth lining the bottom of your birdcage.

America is the most litigious society on Earth. People are paranoid about getting their reputation and net worth nuked by class action suits. Just look at Merck. They had their anti-arthritic drug Vioxx approved after extensive trials for public consumption. It was later found that usage of the drug resulted in a very slight increase in the incidence of heart attacks and strokes. Waves of class action suits followed and it is now estimated that it could cost Merck up to $40 billion to settle them all. Interestingly, many countries, including Canada, have re-approved Vioxx use after re-examining the evidence.

Bayer, Wyeth and Merck, to name a few, have been taken to the financial wall over litigation. To think that the entire government and medical research community are willing to risk their careers and financial security over a bribe is beyond belief. If the drug companies have such an effective lobby, why are they experiencing the lowest growth rates in 50 years?

A CONSPIRACY AGAINST YOUR WALLET Letting conspiracy theories overwhelm common sense leads to investment disaster. The belief that individuals or groups working clandestinely behind the scenes can control major global events is an idea with big consequences. It says that no matter what the economic or political headwinds, instigators of a conspiracy have enough control to make a certain outcome happen no matter what. Believing in a predetermined conclusion means that you can put your financial brain in neutral and let your guard down. Why pay any attention to politics, commodity prices, economics, currencies, interest rates, competitive dynamics, management competency or any of a host of other things that affect a stock’s value if it doesn’t make any difference? Believing this drivel is tantamount to giving your brain—and eventually your wallet—a financial lobotomy. Intelligent investing involves critical thinking, analysis, and a lot of hard work. ✔ 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 or rhiebert@edmontonians.com

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THIS MONTH’S COVER

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or have your product considered for a Wal-Mart brand.

You can even have your own brand locally, but have your product under Wal-Mart’s brand in an export market.”

I was especially interested to meet Hofmann because of all the negative press that Wal-Mart has gotten for many of its policies. I remember sexist hiring practices being one of the accusations leveled at the retail/whole-sale conglomerate; yet Hofmann herself, with her powerful position, seems to belie this allegation. When asked directly, she laughs and shakes her head, “Not in the last 10 years, at least.” Instead, she tells a story of WalMart seeking her out for the job from her former position as legislative counsel for a U.S. senator; and when she hesitated because of her toddler and twin babies, Wal-Mart insisted they would offer her a flexible schedule and allow her to work from home when necessary.

Hofmann also explains that the retail giant is moving toward environmentally friendly programs, in terms of how it powers some of its stores and also in stacking a whole new line of organic foods and fibres. She urges, “If you’re doing organic, you should probably give us a call.”

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ngela Hofmann, director of

international trade for Wal-Mart, recently gave a presentation called Doing Business with Americans at Business Link and Export Link’s Beyond Borders conference in Edmonton. The point of her talk was “helping small businesses and agricultural suppliers to tap into doing business with Wal-Mart.” Very enlightening: I had no idea that Wal-Mart was so interested in small businesses and suppliers, nor that it wanted to attract them to its different international stores, nor that it provided so much support for them to get started in international trade.

A GLOBAL NETWORK FOR WOMEN For business women in some sectors it may

still be difficult to break into the old boys network. But now women professionals in international trade have a set of connections ranging all over the States and everywhere in between…. from Nairobi to Geneva, from Cairo to San Juan.

Angela Hofmann is also the president of the Washington chapter of OWIT, the Organization of Women in International Trade, and she found out about the Beyond Borders conference through this connection.

Angela Hofmann I mention this particularly because it Wal-Mart turns out that OWIT has a strong Alberta presence. The president of the worldwide association with 22 U.S. chapters and 18 international chapters is Calgary’s own Leanne Hackman-Carty.

And right here in Edmonton we have the president of the Alberta chapter, Cheryl Lockhart. Both Lockhart and Hofmann laud the benefits of OWIT, including regular meetings and programs, interactions with other professional associations, and access to other members around the world.

Beyond the benefits for international travel, Hofmann explains OWIT helps women with “mentoring and job banks. Often senior members will look at junior As Hofmann explains, “There are 6,534 Wal-Marts members for job placing.” And Lockhart stresses too worldwide, 2,670 of which are outside of the U.S. that the benefits are wide ranging in the community: serving more than 138 million customers weekly in 16 “Our high quality programs also attract non-members countries worldwide in Europe, Asia, and the Western and men.” In fact, the official OWIT policy invites all Hemisphere.” In the Americas, there are stores in “women and men who are active members of the Canada, the U.S., Mexico, Costa Rica, El Salvador, international trade community” to benefit from its Honduras, Guatemala, Nicaragua, Brazil and Argentina. “support, inspiration, information and networking Hofmann works in “global procurement: a division of opportunities.”

Wal-Mart Stores, Inc. that works as a buying agent for our stores around the world, with a worldwide presence INTERNATIONAL STRATEGIES in over 20 countries.” Her department’s agenda is to Lockhart herself was another presenter at the “take a lot of the mystery out of the supply chain… by Beyond Borders conference, leading a session on identifying suppliers, supporting buy trips, helping with Finding Partners in Export Markets, tapping her labeling.” She explained that many smaller suppliers experience consulting for International Strategies don’t think to do business with Wal-Mart, but they Ltd. The company “assists its clients to research and should. For instance, she suggested “Argentina, our select foreign markets and customers, make maximum smallest market in the Western Hemisphere with only use of government programs and resources, qualify 14 stores, is a good place for a small company to test leads, undertake marketing missions and secure sales the market. In the U.S. alone, there are 68,000 suppliers contracts.” Her former experience working in Ottawa doing business with us.” for Agriculture Canada and in other international And Wal-Mart builds flexibility into the relationship. business led her to want to do her own consulting for According to Hofmann, a supplier “can export directly companies, most of whom she helps with entry into the

United States. However, she is now also working with clothing manufacturers in Bali on a program funded by CIDA, the Canadian International Development Agency. Lockhart tailors her services to the clients’ need. In Bali, for instance, she started out thinking she would need to “help the manufacturers find buyers, but it turned out they had plenty of buyers… they really needed help knowing how to function in the global market.” She helped them negotiate cultural differences based on the need for more immediate response in communications and to provide plenty of lead time so as to get order details correct the first time before international shipping.

On business trips to the States and elsewhere, Lockhart regularly hooks up with members of the various OWIT chapters, allowing her instant connections to the business community in those cities, which is why she feels it is such an important organization for people in a profession like hers. Soon she’s hoping to get women organized to also found a chapter in Indonesia—the 19th outside the U.S.

VEGGY-POWERED CARS AND A DELEGATION FROM MWANZA The Leduc-Nisku EDA (Economic Development Authority) is always active on the international business scene. It’s not for nothing it is known as Alberta’s International Region. It recently hosted a successful biogas conference with representatives from Germany, Austria, the U.S., and Canada sharing knowledge about this up-and-coming technology. It turns out Alberta is a leader in biogas production, and there is interest in bringing another plant to the International Region. For Marketing and Communications Director Kris Hodgson, one of the more concrete examples highlighting the benefits of this energy source was “when Scott McKay, founding director of the Sustainable Energy Group in Stony Plain, held up a bag of compost and said, ‘Do you realize this one kilogram bag could power a car for two kilometres?’” Wow, who knew?

And from June 9th to 16th the International Region hosted a delegation from Mwanza, Tanzania, as a follow-up to a trip by Leduc Nisku EDA members to that country last November. The Tanzanians came here to “brainstorm with Albertans on ideas for government,” according to Hodgson. “They are particularly interested in waste management and the Nisku business park and our R & D—how they can develop business similarly in their own region.” On June 12th, they were inducted as members of Alberta’s International Region… and they met with Leduc County Council to discuss more effective business plans to take back to Africa.

AND NOW, I BID YOU GOODBYE… This will be my last month as the international business columnist for Edmontonians since my own work in this very arena has picked up too much to leave me time for researching the column. I have truly enjoyed connecting to the fascinating people from the Edmonton area who are involved in marketing their goods and services worldwide. It’s been a real kick reporting this news, so now I want to try my hand at making some news. Until I started to dig and delve into local stories, I had no idea how vibrant, diverse and farreaching Edmonton business is. We must make this known to the larger community.

Thank you for the privilege of helping to sing the song of Edmonton: A great place to live… a great place to work… and a great place to do business. And a special thanks to my wonderful editor Barb Deters and to Sharon MacLean, the brilliant woman who brings us all Edmontonians. ✔ Jessica Wegmann-Sanchez, Ph.D., is Director of Corporate Communications for BIDMEXICO International Inc., an Edmontonbased company specializing in foreign business development in Mexico.

E-mail: jsanchez@edmontonians.com

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Out of the West ...comes PNWER

By P. Drake McHugh

I

t is an organization so far below the radar that almost nobody has heard of it… but absolutely necessary to the continuing well-being and prosperity of the upper and outer reaches of North America.

It is called the Pacific NorthWest Economic Region—PNWER, pronounced pen-wer by those in the know. This unique, bi-national organization may have political clout and influence far beyond its modest size.

And, from July 16th through 20th when it holds its 16th annual summit, 500 delegates from Washington, Oregon, Idaho, Montana, Alaska, British Columbia, Alberta and the Yukon will descend on Edmonton to swap ideas about how good neighbours can be better neighbours.

PNWER has been working since 1989 to smooth out cross-border issues that smack of protectionist attitudes.

For an organization that perceives itself to be apolitical, it is sometimes a daunting task. When there is no agreement, the group works to build relationships and to keep trade on a two-way street.

Much of the role is to foster understanding.

Canadians well understand that we are each other’s largest trading partners… Americans, not so much. In fact, most Americans are surprised to learn that Canada is the largest supplier of oil to the U.S. and that Alberta has the second largest known reserves in the world— thank you, 60 Minutes. Canada is the top consumer of exports from 39 states. Idaho’s exports to Canada in 2002 totalled $306 million US, while its imports from Canada were $436 million. Washington state exports to Canada were $2.9 billion, while imports totalled $9.9 billion. Trade between Canada and the four-PNWERstate members south of the 49th parallel totals $16 billion annually.

Still, the relationship does not always go smoothly.

The long trade dispute over softwood lumber has cost

If it were a nation being compared to the world’s leading industrial economics, PNWER would rank 10th with a combined population of more than 20 million, and 12th with an annual gross regional product of almost $700 billion It might be said of PNWER that what unites this region is greater than the differences that, from time to time, rent the fabric of cooperation. The organization appears to be an idea whose time has come in a world where free trade isn’t very free. From headquarters in Seattle, it reaches out to its member states and provinces in a unique manner.

“Any time you think about a forum of institutions, can you think of anything more dull and dry and boring,” muses current President Glenn Anderson (RFall City). “But the Pacific NorthWest Economic Region is a place to get the political posturing out of the way and work on the issues.” And there are issues.

HANDS ACROSS THE BORDER How do you get people and goods across the U.S.Canadian border with a minimum of hassle and without jeopardizing, or appearing to jeopardize, American homeland security?

What is to happen when thousands of tourists head to Vancouver for the 2010 Winter Olympics? What is the region to do with oil, natural gas and electricity being developed in Canada and Alaska? What about improving the region’s energy grid? And how can both sides of this international frontier better handle a pandemic? Should health care workers be able to go where they are needed in an emergency, even if that means crossing the border?

Cooperation is everything with the partners clearly recognizing that a ‘beggar-your-neighbour’ policy between the states and provinces is not a good way to do business.

“We all benefit more from leveraging the assets we have instead of duplicating them,” says Anderson.

Executive Director Matt Morrison has become a philosopher while watching the machinations of such a diverse group of individuals, groups, organizations and governments. What’s his overview?

“There are some truths on both sides of the border that we sometimes don’t like to hear. But, the reality is that the economic watersheds here are north and south.

Often western parts of the countries find we have more in common with each other than with distant governments in Ottawa or Washington.”

So, do Americans really know so much less about Canada than Canadians know about America? “I think the big difference is you get our news and we don’t get yours. Canada is often in reactive mode to America but, when we meet, often some of the states feel that they are the ones reacting just because there are sometimes greater populations in Alberta or B.C. It’s exactly the reverse of the situation on the national scale.”

There is good reason for the region to pull together.

Morrison points out that in the last decade GDP for Canada was 90 percent… for the U.S., it was 102 percent… but for the PNWER signatories, it was 130 percent. “We have had a disproportionate amount of growth and now the oilsands may soon double capacity.”

THE BUSINESS OF DOING BUSINESS

PNWER president Glenn Anderson Canada $1 billion even though the truculent Bush government lost internationally at nearly every turn and sullied its reputation for fair play. The closing of the American border to Canadian cattle on what many say was a trade-related issue was also a point of anger with Canadians. But PNWER keeps on trucking; keeping the lines of communication open. Indeed, with such a variety of governments and businesses involved, it is a wonder PNWER can accomplish anything at all. But it does.

Executive Director Matt Morrison at the Alberta Legislature

While PNWER has no legislative capacity in either country, observers say many of the ideas first discussed at such meetings do go on to become legislation at the state/provincial level and at both federal levels.

As in many international organizations, the basis of decision-making at the executive committee level is by consensus, a delicate matter where both egos and sovereignty can be points of discussion. But what really sets this organization apart is the involvement of the private sector, which within PNWER includes nonelective public sector NGOs, other non-profit organizations, and state/provincial delegations. All sit on the private sector council and vote for its board of directors. The council puts the power of decision making in the private sector where often, problems and opportunities are first identified.

Roisin McCabe, with Alberta International and Intergovernmental Affairs, makes the point that the organization is not just for big business: “Industry associations and those who want to be aware of what might happen in the future use the conference to make contacts and to better understand the issues.” Interested individuals and businesses can still register for the Continued on page 8

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Continued from page 7 summit at www.pnwer.org.

The intensive summit runs the gamut of interests and issues that have been identified for discussion by the organization’s 17 working groups and councils— resolutions will be presented and debated. In addition, tours that might bring a yawn from Albertans are of great interest to delegates who will visit the Mackenzie Health Sciences Centre, Stollery Children’s Hospital, Mazankowski Alberta Heart Institute, the recentlyopened Nanotechnology facility, Alberta Research Council Containment 3 Laboratory, Alberta Emergency Management Operations Centre, Edmonton Waste Management Centre, the Alberta oilsands, and EPCOR Genesee 3.

EPCOR’s director of government relations, Tim Boston, attempts to put the situation in perspective.

EPCOR has energy and water business interests in Alberta, B.C., Ontario, and Washington and New York states. He is keen to showcase the Genesee III supercritical coal burning electricity generating plant. He says it is not yet a zero emission process, “but this is a huge step above previous technology. Everybody has a story to tell, and perhaps some of these people aren’t aware of the advances we’ve made. If you are in the industry, you always want to ensure that you are not working at cross-purposes. Energy is huge for Alberta and for the region. It’s not just production… but how to facilitate transmission. We’re all looking at the same things and looking to partner in the entire region. It’s a win-win situation for everyone.”

Ron Tenove, a Washington state management consultant and co-chair of PNWER’s working group on transportation, has some interesting observations: “Over the last two years, the issue of homeland security is… a top-tier consideration so, in many cases, changes will be made at a variety of levels… This is often the place they are talked about first, sometimes years before the legislators take action.”

Tenove sees transportation issues as complex and with huge potential to change the region. “Fifty per cent of all container traffic to Europe goes through the port of Rotterdam. If you can imagine Seattle and expansion in Vancouver and Prince Rupert, you can have an idea of the potential we have.”

His group is also looking at border transport, corridor development to take energy to market, and rapid rail between Seattle and Vancouver. “If you think of this as a big jig-saw puzzle,” he says, “then it begins to make sense. So often in these jurisdic-tions, we are each other’s best customer. It is only natural to want to expand those ties and set common goals where we can.”

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And, according to Morrison, PNWER is looking for ways to allow easier passage for “trusted travellers and low-risk goods and services by land, sea or air.” This is particularly timely for the up-coming 2010 Winter Olympics. Discussions will focus on the development of common themes and brands throughout the North-

PNWER past president and host of the 16th Annual Summit Rob Penner, minister of Alberta Municipal Affairs, with PNWER founder, Jim Horsman west to direct tourists, and to upgrade transportation facilities such as the railway line between Vancouver and Bellingham. For Washington state, it is a gift: All the economic risk is being borne by Canadians. The reality is that many people will fly into Seattle and then head north. Estimates of economic benefits vary from tens to hundreds of million of dollars in expected contracts and state tax revenues alone.

DIFFERENT, YET… The differences between a parliamentary democracy and a republic can lead to friction and misunderstanding when elected officials charged with representing their constituents have to make bigger decisions than might suit a particular lobby group.

Historically, the situation is not without humour. The Americans set out to build very powerful states as a hedge against too much centralized power: Canadians set about building a strong federal system for defence against the new republic to the south. Somewhere along the way, the countries swapped power structures. The American central government is extremely powerful while the Canadian federal government is relatively less so; but provinces have far more clout than do states. Throw into this an international frontier and it is no wonder there are frictions. Nonetheless, similarities abound, and geographical imperatives have greater power to influence.

Perhaps oddly, the idea for the organization began when Jim Horsman—then deputy premier of Alberta and now government relations advisor to the University of Lethbridge—connected with Washington State Senator J. Alan Bluechel at a State Legislative Leaders conference in New Orleans in 1988. Bluechel had been born in Alberta and attended the University of British Columbia, as had Horsman. Both had noticed that the people in the states and provinces of the Northwest shared much in common, including an ability to get along together sometimes better than with their respective federal governments thousands of miles away.

They also knew that the idea had no chance of success unless it was politically non-partisan: four legislators—two Democrats, two Republicans—from each jurisdiction, their Senates and Houses of Representatives, while the Canadians moved to involve representatives from all parties in their legislatures.

Articles of ratification were passed in 1991 by various legislative means at the state and provincial levels.

Amendments were passed in 1994, adding the governors and premiers, and updating other positions of the statutes.

“We exist to encourage the Commonwealth of the Pacific Northwest,” trumpets Morrison. “We probably have the best economy and the best environment of anywhere in the world. Whether it be in nanotechnology, resource capital or any area, we have the opportunity to diversify and we have respect for one another.

“And,” Morrison concludes with a chuckle, “all of us now have a better understanding of all forms of democracy, and that is a very good thing”. ✔

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Executive Welcome Personal marketing to select business customers

Call Jeanne Wright today Phone: 780.487.2001 E-mail: jeannew@telus.net

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9

Friendly competition Enbridge Photo

We repeat: The Pacific Northwest is not a seperate country

By Michael O’Toole

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“

y the time you get here to Washington, you’re really firing on all the big cylinders!”

Murray Smith declares in a surprisingly relaxed semi-chuckle. Hard on the heels of an address to the Center for Strategic and International Studies and the serving of diplomatic canapés to 150 guests at the Smithsonian, Alberta’s very own official representative to the United States eases suavely into the high protocol of an early morning chinwag with Edmontonians.

When he’s not jawing on the Hill and its environs, Smith has been known to don a set of white flannels and “chuck a few” on the cricket field, as he colourfully puts it, and can fake his way passably through any discussion of the finer points of the silly mid-off rule.

Incidentally, Smith is also a prime player in an altogether higher value game. “I’m the co-chair of the energy portion of PNWER, of the energy planning initiative,” he says, in a voice that seems to challenge anyone to chuck a few of the hardest hydrocarbon-themed questions back at him.

The bi-national regional energy planning initiative is a far-reaching cross-border project that began to take shape after the 2003 PNWER summit in Calgary. Its aim is to address challenges such as congestion in the western electrical grid by focusing on the multi-jurisdictional issues of regional data sharing, unified permitting and transmission corridor planning. The initiative provides for the development of a bi-national regional council in

collaboration with a whole smorgasbord of energy authorities and providers, including all the major players from within the PNWER footprint.

“One of the most diiiiificult things to site in the world today is a transmission network,” Smith laments, exercising a certain diplomatic privilege in the elongation of vowel sounds. “And so that’s the genesis of looking at how we can plan for future power load or the growth in the economy, the growth in demand, and where we get the supplies from. And that started the energy initiative.”

With a few well-chosen historical allusions, Smith takes his acquiescent listener on the telephonic equivalent of a sweeping Stateside helicopter ride across the dams on the Columbia and Snake Rivers. From there, we visit the political foundations of that formidable old doyenne of energy provision in the Pacific Northwest—the Bonneville Power Authority—in the days of President FDR, and thence move to the current U.S. government’s reluctance to advance any funds to the BPA to handle either new load or new transmission. Now, and only now, Smith swoops to the PNWER-relevant nub of the tour: the burgeoning significance of energy delivery initiatives north of the border.

“There is a very convenient route that runs down the east side of Alberta from Fort McMurray,” he specifies, in reference to TransCanada’s much vaunted Northern Lights project. “It can cross over into Montana or into Idaho, and then through a corridor from Idaho actually right down to Las Vegas, but also into the PNWER region. So one of the

things we were able to get going was a feasibility analysis.

Then, of course, the companies of Alberta transmit natural gas through the pre-built portion of the Alaska pipeline into California and Oregon. So there’s an energy presence already in natural gas sales.” Smith completes his trio of cherished north-to-south energy routes by tracing his finger along Kinder Morgan’s Trans Mountain oil pipeline from Edmonton through to Vancouver and down into southern Washington state. “These three energy commodities have a great interest to this trading region,” and, by implication, to the formative cross-border work of the bi-national regional energy planning initiative.

Turning to the specifics of the progress that the new planning body could bring, Smith cites a low-key example, but one that illustrates the potential for greater bureaucratic simplicity. “There’s a small tie-in line that is currently being proposed for Montana-Alberta, that is faced with, I want to say, in excess of 200 permits! So if we can start finding ways of either eliminating some of the duplication or have some of the permits for one jurisdiction serve the others, I’d certainly call that progress. And this is work that has never been done before.”

Smith ends his current reflections on an engagingly holistic note as he surveys the various challenges that a binational mindset may help to overcome: “There are no silver bullets. You have to embrace the whole issue of conservation, hybrid, low-sulphur diesel as well as basic pipeline constraints, transmission capacity

Yukon is at the beginning of a long and promising new era.

We believe the opportunities in Yukon are second to none. As we move forward with the expansion and diversification of our territory’s economy, the timing is right to take full advantage of Yukon’s opportunities for growth, diversification and prosperity.

As incoming President of the Pacific Northwest Economic Region (PNWER) I am committed to ensure that the economic growth of Yukon develops in a regional and bi-national basis. The strategic vision of PNWER establishes a strong foundation for success across one of the fastest growing regions in North America.

PNWER President Hon. Minister Jim Kenyon Minister of Economic Development Government of Yukon 10

I invite you to take part in these prosperous times, and join us in building PNWER’s future and Yukon’s future, together.

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constraints for both electricity and oil. Those are the kinds of things where it’s great to have a cross-border forum.”

CROSS-BORDER ENERGY ENLIGHTENMENT Matt Morrison, executive director of PNWER, is the man who could be seen as being at the eye of a cross-border storm, or, if you prefer, balancing in a place of perfect “equipoise” between the state, provincial and national interests that the organization has to accommodate. His outlook is pleasingly reassuring, if a tad left field to those of us who have grown used to the seeming inevitability of border-related controversies.

“In many ways, we think and act like a region. Whether BC, Yukon, Alaska, Alberta or Washington, we feel closer to each other than to Ottawa or DC.” Not that the two capitals can be completely ignored. With reference to PNWER’s ongoing energy planning initiative, Morrison takes cheer from the fact that the U.S. Department of Energy has supported it, and that Natural Resources Canada may be persuaded to do likewise.

“We had an excellent meeting with [Canada’s Minister of Natural Resources] Gary Lunn last week. Again it’s an opportunity to really take the trilateral discussions that have gone on in energy planning in North America and get down to the brass tacks in a region that is highly interdependent.

It’s very timely because the U.S. Energy Policy Act, signed in Albuquerque last August, commits the U.S. to developing energy corridors throughout the 11 western states. And it was PNWER that got the Department of Energy and the Bureau of Land Management to sit down with Alberta and BC officials, because they weren’t including Canada in this discussion of priority energy corridors.”

Morrison laughs incredulously at his own recollections.

“Yeah, it’s amazing, since the energy is coming from north to south. It’s very important that the U.S. understand the potential of Western Canada… we find continuously that people who should know don’t know.” The importance of this cross-border enlightenment is heightened, in Morrison’s view, by the fact that the U.S. is not about to build significant new refining capacity despite its huge demand for gasoline.

Other energy concerns on Morrison’s regional mind include biofuels and the revamping of tax and royalty regimes across the whole Pacific Northwest.

Mel Knight is the MLA for Grande Prairie-Smoky and a veteran PNWER stalwart in the role of chair of the Energy I Working Group.

“All of the players in PNWER certainly have a common interest when it comes to being able to move energy, whether it’s molecules or electrons, back and forth across the borders as seamlessly as we can,” Knight remarks.

“There’s difficulty, of course, with all of these bi-national observes drolly, and without any trace of the expected discussions. For a long time, places like Wyoming would travel-weariness. “They [the Chinese government] look at Alberta as a huge competitor in any attempt to move announced, when I was there in November 2005 as part of Alberta electrical energy into, maybe, the Nevada market.

Minister Dion’s delegation, a program of $184 billion U.S. When we sit at PNWER roundtables on renewable energy and R & D now, or when we meet with our projects between now and 2020.” colleagues at the Energy Council, While acknowledging that few there’s a pretty positive aspect to it. assumptions can be made with regard to But let’s not fool ourselves. There are China’s involvement in the Edmonton some circumstances where perhaps PNWER summit, Raymont, like some individuals feel a bit Morrison, is a strong advocate of protectionist… Although we try to dialogue with Beijing. He also keep it as friendly as we can, it’s still emphasizes the scope for commercial competition.” progress: Knight’s reference to the Energy “I think it’s actually a tremendous Council brings us appropriately to business opportunity for North another key facet of the Edmonton American businesses to both work with summit. This august body, formed 30 China and potentially supply technology, years ago by a handful of American and I think we should have no concerns legislators, encompasses the 10 major about supplying energy technologies to U.S. producing states and a number of them. There may be people who have international affiliates, the first of Murray Smith in concerns about perhaps intellectual which was Alberta, after the province Washington D.C. property. I think those issues can now be joined in 1991, first represented by dealt with in China. It’s my experience Jim Horsman, Alberta deputy premier and PNWER that they can be, today. Five years ago, I wouldn’t have founder. In a notable move, the Energy Council executive is given that same answer. And the situation is improving attending this year’s PNWER summit under invitation. every minute, but prudence around contractual details is Knight reveals the rationale: “I was Alberta’s important.” representative on the Energy Council and also on the Raymont sounds a further note of realism by reminding energy working group with PNWER, so I did a bit of work us that China’s participation in the PNWER roundtable and got the two kind of married up because there are some session is something of a new experiment. “I think the strengths to be gained by having both of these groups attend Chinese will be cautious in wanting to understand what this some of these sessions together.” Significantly, as part of its really is other than an opportunity to engage in dialogue and involvement in this year’s event, the Energy Council is coso forth. But we will have to be careful as PNWER and as hosting the China energy roundtable, along with the Americans and Canadians not to confuse them that, University of Alberta’s China Institute.

PNWER is…” Raymont pauses for a moment of lighthearted wordplay, “…a separate country. PNWER is an organization that has some cross-border cooperative issues, THE CHINA CONNECTION but maybe PNWER is also a model for trans-Pacific “We are bringing in a number of Chinese state officials,” cooperation.” explains Morrison. “It’s a critical issue to look at how we So can we expect the Edmonton summit to foster are engaging China. So this time, we’re focusing on future SINO-PNWER tête-à-têtes, tackling perhaps China’s demand for alternative energy technologies. We some of the more sensitive issues that still stand really do hope to engage the Chinese in regional dialogue, between the two hemispheres? Raymont is maintaining but there are huge issues there that have big implications.” an open mind. “I think that’s really up to how well this Few people, if any, in North America understand those goes and whether PNWER turns out to be an implications better than Dr. Michael Raymont, CEO of appropriate format for engaging China as differentiated EnergyINet Inc., who has been a key player in facilitating from bilateral Canada-China and U.S.-China PNWER’s new trans-Pacific engagement. Raymont spoke interactions. Can PNWER add anything to that? I have to Edmontonians this summer shortly after returning from th to say at this point I don’t know. It’s going to be his 47 visit to China (the first occurring a few months interesting and, arguably, exciting to see what before the death of Mao Zedong—aka Mao Tse-Tung—in happens.”

1976).

Arguably laconic, but definitely true. ✔ “I think I’m up to four times this year already,” he

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Enbridge Edmonton

Does China make you nervous?

Enbridge Photo

By Michael O’Toole

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EnergyINet photo

ast November, PNWER held its regional economic leadership forum in Whistler, BC. A whole day was devoted to the galvanizing but undeniably contentious issue of China’s immense energy demand and what it really means for energy security in the Pacific Northwest.

China is once again high on the PNWER agenda at this summer’s annual summit in Edmonton in the shape of the China energy roundtable, an intriguing experiment in trans-Pacific cooperation co-hosted by the Energy Council and the University of Alberta’s China Institute. In the wake of the failed effort by the state-run China National Offshore Oil Corporation (CNOOC) to take over U.S.-based Unocal Corporation, increased critical scrutiny is now being directed toward the China connection associated with Alberta’s oilsands and other Canadian projects, such as the Enbridge Gateway Pipeline between Alberta and BC. Mel Knight, MLA for Grande Prairie-Smoky and cochair of PNWER’s Energy I Working Group, explains: “Where the issue started to bubble a bit was a suggestion that bitumen could leave Alberta and land up in the Chinese market. And, of course, some U.S. states initially got excited about that because China’s economy is expanding at a tremendous rate and they have an insatiable appetite for energy.”

Michael Raymont On this theme, Matt Morrison, PNWER executive director, recalls the irony of one particular moment at the Whistler shindig eight months ago: “It was absolutely fabulous to hear some very conservative Republicans saying ‘How can we trust the Chinese?’ and then having the vice-president of Enbridge tell the story that the purpose of the Gateway Pipeline, in a sense, was really to get oil down to the Long Beach California refineries… it was the LA refineries that went to China and said, ‘Look we need a partner to justify the cost. Would you join this deal?’ And that was very enlightening for our American friends to hear that.”

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Veteran China engager Dr. Michael Raymont, CEO For anyone currently losing sleep over the Asian of the Calgary-based Energy Innovation Network giant’s ‘insidious’ energy ambitions, Morrison has a blunt interrogative. “Do we really want China to invest (EnergyINet), who has been closely involved with PNWER in the preparations for the China energy their $120 billion into Iran, or should we be engaged? roundtable sessions, is even more robust in his I mean let’s look at the future: Do we want to engage China where we are partners with them economically? dismissal of prevailing fears.

“Frankly, if China comes in and buys a minority That’s a great dialogue.” position in an energy company in North America, Which brings us to the politically sticky matter of the oilsands, in which, as Knight observes, the Chinese specifically an oil and gas company, I think it’s of no concern at all,” Raymont states with a calm are now investing, and where they could be said to directness. “They currently own well less than one have gained a tentative toe hold. percent of any assets in “And the answer to that North America in the is ‘Who’s been investing energy industry. And in in the oilsands for the last Do we really want China to invest Canada, 43 percent of our 30 years?” Knight leaves their $120 billion in Iran... ? energy industry is owned the question open, but by the U.S., and something anyone hearing it is apt to like 65 percent of it is glance southwards owned by foreigners. The momentarily. “There’s fact that China might come already been offshore in and own one or two or investment and we don’t five or even 10 percent of discriminate between it, in my view, would be a investors. We don’t good thing, because they necessarily question that can bring some very it’s a company that’s not interesting perspective and controlled inside the some technology which province of Alberta. We many people are unaware don’t ask them how much of. They’ve advanced very of their company is rapidly in terms of some owned by U.S. investors aspects of oil patch and how much is owned technology.

by Chinese investors for “And finally, I think instance. The corporation broadening of our that runs the energy customer base in the business for the Chinese energy business is not a government has bad thing for Canada. investments in 17 Now, in the U.S., you will different countries and have a different reaction to literally hundreds of that. They would like to energy companies. So think of Canada, they’re invested in the particularly the oilsands, as being “our” quote U.S. and Canada already, whether we’ve taken the oilsands, and I’ve been told that.” time to investigate that or not.”

Redirecting his thoughts to China, Raymont Nevertheless, for Murray Smith, Alberta’s stresses the value of dialogue, dialogue and more representative in Washington DC, one of North dialogue with the Asian power. “The Unocal decision America’s largest issues today is sorting out how we had more repercussions in China than are acknowwill deal with the entry of corporations that are ledged in the U.S., perhaps in North America. One owned by foreign governments into either essential services or resource sectors or even general business could say the Chinese overreacted. One can say the Americans were naïve or narrow-minded in that operations. What, he ponders, are the appropriate decision. There was certainly a cooling of interaction policies, in this case, for a continent built on free between China and the U.S., which actually has market capitalism? The recent Unocal and Dubai provided the opportunity for China to engage Canada Ports debacles may point the way to an entrenched more fully, but it’s also pushed China to engage “Hell no!” mindset, at least in the U.S. corridors of Venezuela, Sudan, Nigeria, and other such countries power. Whatever policies may ultimately result with that the U.S. aren’t particularly keen for them to respect to foreign state-backed investment, Smith reminds us that, from a PNWER viewpoint, China is engage.”

While PNWER will be focusing primarily on just a natural trading area.

China’s demand for alternative and renewable energy “Don’t be afraid of China,” he urges. “Be happy technologies at this year’s event, the evolving shape that there’s a middle class emerging of some two or of the Canada-China-U.S. ménage remains firmly in three hundred million people in China—a colossal ‘watch this space’ mode. opportunity… but, at the same time, we’re seeing “The issues are still boiling a bit on the backnew competition for resources that we’ve not burner,” Knight concludes good-humouredly. ✔ otherwise had.”

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Water, water everywhere and nary...

By P. Drake McHugh

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Photo by Dr. Dan Johnson

“We look at quantity and quality,” he says. “We t is not easy to have some sort of idea of the have some things in common with our neighbours complexity of the PNWER partnership. but some things different too. For instance in Idaho, Legislators, governments and businesses 60 per cent of irrigation is from ground water and from two provinces and a territory and five the energy to get it to the surface becomes an issue. states in the United States, not to mention the In Alberta, we have agreements with our neighbours. national governments and a devil’s convention of We have a treaty with Saskatchewan to pass on 50 assorted lobby groups sitting down in conferences percent of our water and they have an agreement and workshops in an attempt to hammer out with Manitoba to pass on 50 percent of their water. consensus. It is something like a bag of all sorts, In the South Saskatchewan River, we don’t have any one of which may be poisoned by political enough water to meet our own needs. necessity, misunderstanding, disagreement or “Internationally, we look at the economics. You national interest. Oddly, it seems to work have to ask, should we be using irrigated water to surprisingly well… possibly because mutual grow corn to make a sugar base for soda pop for interest trumps individual action. Still, from an kids or should we be looking at cereal crops to feed Alberta perspective, it may be instructive to look at people.” He argues that there is no right answer but water. that, increasingly, discussions will have to be held Along Jasper Avenue in Edmonton, a bumper on the topic.” sticker reads: Alberta: Awash in oil, dying of thirst.

The Centre conducts fundamental research at the Everybody wants more of a finite commodity.

Universities of Lethbridge, Calgary and Alberta with There is not enough to go around. Near Fort a $600 million grant from the Alberta Ingenuity McMurray, it takes three barrels of water to Fund. produce one barrel of oil. Snow melt from the “We deal with all aspects of water, quantity and mountains no longer comes in the quantity it used quality,” Shyba explains. And he thinks the next to… aquifers and ground water are at risk. large issue for Alberta will be pharmaceutical PNWER founder Jim Horsman—now an advisor waste. Drugs such as Ibuprofen are flushed down to the University of Lethbridge—is deeply toilets. So far, research is indicating that this drug concerned about water, indicating that the sides are th is leading to feminization of fish… males turn into not equal north and south of the 49 parallel females. It puts the fish population at risk and because water is becoming a political issue. He is nobody yet knows what it does to human wary of the U.S. seeking mass exports of a populations. commodity that “may be more important than oil.” Alberta’s Oldman River “The bad news is we could really use more Montana is the latest state to say it wants a new disputes between two participing jurisdictions and funding… and the good news is we are making some deal. It wishes to rewrite the water agreement with keeps an eye on the far horizon of what will be good inroads and people are far more aware of the issues Alberta. “In dry years we have not been receiving our for the region. Planning, protection and sustainability than they used to be. That has to happen before change appropriate amount,” said Mary Sexton, director of are on the agenda. Political bashing and finger pointing is possible.” ✔ Montana’s department of natural resources and are considered poor form conservation. and Alberta is not facing any The Milk River runs from “Alberta’s position is (that) nothing has changed since then (1921) to warrant reopening the order,” fired emergency not shared by the Montana into Alberta and back partner political entities. back Alberta Environment spokesperson Sherri-Dawn Landsat by Dr. Craig Coburn The good news is that Annett. “The implications are enormous for Alberta if Alberta is as well advanced this order is reopened,” she said. as anyone in beginning to And it may not just be in that area where politicaliameliorate the situation. At zation of issues leads to odd offspring. Canadians are the University of Lethbridge, deeply stung and uneasy about softwood lumber where Greg Shyba, executive Ottawa won most of the legal challenges and then director of the Alberta capitulated to the Americans. There is not only worry Ingenuity Centre for Water that when you have no legal basis, you can bully your Research, points out that “80 way to victory. The agreement has ramifications and percent of water is used for potential to sour north-south relations. Or as one bitter agriculture and, with trends observer put it, “If America isn’t good for its word, what is it good for?” The hyperbole runs as high on the in global warming, we want to be more efficient. There is American side of the frontier. the added problem that rains Observers argue that this shows why PNWER is may not be falling at the unique and much needed as a forum for open same times of the year, so discussion and consciousness raising. It refuses to take it’s difficult to know when it on a political role that can lose direction in acrimony will be available. and accusation. For instance, it firmly sidesteps

ph: 780.454.2975 • fax: 780.482.2819

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Vive la difference By the Honourable Ken Kowalski

Speaker of the Legislative Assembly of the Province of Alberta

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t is my great pleasure to write a piece on the differences or similarities between the U.S. and Canadian legislative systems. As a member who has served in the Legislative Assembly of the Province of Alberta since 1979, I have had numerous opportunities to visit the United States on official, not to mention social occasions, as a member, a cabinet minister and as Speaker.

In comparing Canada and the United States, one can draw many parallels. The two countries share a unique relationship and a mutual respect for one another.

Entrenched within each other’s cultures, the two nations are a likely source for comparison.

It has always amazed me that two nations that share so much in common and have such close links in virtually every level of cultural and economic activity can be so different when it comes to our respective systems of governance. A large reason for the differences is that Canada did not break its ties to Great Britain as did the United States. We are members of the Commonwealth, the successor to the British Empire. The Commonwealth Parliamentary Association ties together the parliaments that follow the Westminster—British Parliament—model.

As we know, the United States decided about 230 years ago to depart from this model, choosing to form a republic.

Canada’s system is one of responsible government.

Now that, of course, is not to imply that the US system operates irresponsibly, but rather to illustrate the definition of responsible government is one by which Canada adheres to the principle of parliamentary accountability.

So what does this mean? In Canada, the executive branch or government is a part of the legislative branch and, as such, the prime minister and ministers are also members of the assembly and must propose, debate and defend bills in the House. The most notable expression of responsible government in action is during Question Period when members who are not in the executive/cabinet get to ask questions of the government. This high drama is the part of the proceedings broadcast on television news. It is also the part that poses the greatest challenge to Speakers—we are the ones charged with maintaining order and decorum during what can be heated and rancorous exchanges.

Stripped of its emotion, Question Period—whether in Canberra, Westminster, Ottawa or Edmonton—provides a great example of the strength of responsible government. In Canada, and subsequently Alberta, the prime minister or premier and cabinet ministers are confronted with questions of which they have no advance notice. Noting that it is called Question Period not Answer Period, responses often don’t meet questioners’ expectations. Interestingly, there is no requirement that the government answer the questions

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posed.

In the U.S., the executive branch is elected separately from the legislative branch. In other words, the president and his cabinet cannot introduce bills nor can they vote on proposed legislation. The president does, however, have the power to veto legislation, a power that the Prime Minister of Canada does not hold.

Ultimately though, the supreme power lies with the people in both countries. Through the rights and freedoms afforded through each nation’s constitution—the citizens of both Canada and the United States create and sustain the systems that govern them.

Both our countries have federal systems with two orders of sovereign government.

Senates ensure that the regions are represented in the central government. In the U.S., the senate has developed into what is arguably the most powerful legislative body in the world—its 100 members wield enormous power. In Canada, senators are still appointed by the prime minister and the institution has, I suggest, considerably less credibility and influence than its American counterpart. Unlike the United States, the Canadian senate is the only second chamber in existence in the country. Provinces do not Alberta Speaker have second chambers.

Ken Kowalski So what would a visitor see in Alberta’s Chamber? To begin with, the Speaker enters in Canada is technically the Governor-General—the the Chamber in a robe with tabs and a tri-corn hat that Queen’s official representative—it is the monarch whose might remind U.S. visitors of the American Revolution. name is invoked. I was honoured to escort Her Majesty to The Speaker is led into the Chamber by the Sergeant-atthe Legislature Building together with Alberta’s Premier, Arms who wears a black cut jacket and gloves and carries the Honourable Ralph Klein when she visited Alberta in a sword—the only weapon allowed in the Chamber.

May 2005 on the centennial of provincehood. She Historically, everyone carried a sword, so the desks were addressed the Assembly in a province-wide broadcast, the positioned at such a distance that members on opposite first time a monarch has done so in the province’s 100 sides of the House could not reach each other. In those year history. days, since all members had one hand on their swords, Now, as Alberta’s Assembly celebrates its centennial, I they would bang their desks with their free hand to show look back on the development of this province and reflect support, instead of clapping. It is a tradition that on its history in this country. continues to this day.

Both Canada and the United States started down very We start every day of the legislative session with a different roads and, some may say, ended up in the prayer. American visitors may be surprised that Canada opposite direction from where they began. But what a does not have the same separation of church and state as journey it has been… for all North Americans. ✔ does the United States. As Speaker, I have attempted to make the prayer a type that provides a time for reflection During the 16th Annual PNWER Summit, Alberta and thanks.

Speaker Ken Kowalski and Washington Representative The biggest difference in our structures is that our Jeff Morris will co-chair a special session in the system is a constitutional monarchy: Queen Elizabeth II Legislature Chamber on the practical differences between is also the Queen of Canada. Although our head of state the U.S. and Canadian political systems.

EDMONTONIANS JULY 2006

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Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Developing a regional workforce

By Michael O’Toole

Cooperative scheduling would be key

N

eil Windsor is evidently one of PNWER’s great multi-taskers. As fate would have it, Edmontonians caught up with the organization‘s Workforce Development cochair precisely as he was drafting a key resolution for the Edmonton summit. This happy coincidence seemed to add a special authenticity to the natural thrust and parry of the conversation. With such a cue sheet before him, Windsor, the executive director of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA), needed little prompting: “I hope we will get a resolution passed that will urge state boards to adopt a policy that they will waive certain examinations that are required—in fact, that they would actually accept full reciprocity between Canadian and U.S. engineers with, say, eight years experience after licensure so that they would almost automatically be licensed in another jurisdiction.”

If that sounds ambitious, it’s only a reflection of the fact that workforce mobility is on the list of the top three burner issues for almost every employer, legislator and lateral thinker within the region.

Windsor’s interest in the matter, from a PNWER perspective, goes back to the late 1990s, when he first became intrigued by the organization’s evident commitment to the goal of removing regulatory and legislative barriers to the free movement of various types of professionals, without undermining standards.

Coupled with the perennial discussion of labour mobility are the underlying concerns regarding workforce and facilities shortages and the implications they bring in terms of the region’s prospects for sustainable growth and prosperity.

“There’s a huge shortage of manpower, equipment and materials,” says Windsor. “You’re looking at $250 to $300 billion of work in this region over the next 10 to 15 years. That’s an incredible amount of activity. We can best develop that by sharing our strengths and helping each other with weaknesses. If we have facilities in Alberta that may be under-utilized, why would they be building similar facilities in Alaska?

Why not use ours, and vice versa?”

corporate ETHICS

By Nizar J. Somji

I

Windsor advocates, among other efficiencies, a system of cooperative scheduling of major projects. He reminds us that while, here in Alberta, we may identify a certain requirement for the oilsands, BC is also building huge facilities for the 2010 Olympics, and neighbouring U.S. states are engaged on their own large-scale infrastructure upgrades. And they’re all, potentially, drawing on the same labour pool.

“These people can’t work in three places,” Windsor points out, “so it benefits all of us to recognize what is the regional workforce, what are the regional strengths, what are the weaknesses, and what do we have to do jointly to try to resolve those weaknesses and help one another? And you can do that to some degree by scheduling activities and ensuring that not every activity of the same kind peaks at the same time.”

Windsor and his PNWER workgroup colleagues are also set on tackling the long-term challenges posed by the need for reliable accreditation of offshore labour, given that, in some professions, perhaps a third of the individuals licensed every year are likely to come from outside North America.

“These are the key issues we’ll be focusing on at these sessions,” he reprises. “Looking at the skills availability, the demand for skills. What is the requirement? What is the capacity of our educational institutions to generate more skilled professionals?

What are the offshore skills that we can bring in, and what is our requirement for offshore labour? And of course sharing regionally, knowing within the region what we have and where we can access those skills.”

According to Matt Morrison, executive director of PNWER, the responsibility for economic progress lies very much in the region’s own lap. “We do feel that by bringing stakeholders together the best solutions are going to be hammered out by the people on the ground, not in Ottawa or DC,” he states emphatically. Morrison also stresses the cross-border amity that is essential to the economic development of the whole Pacific Northwest: “In a region like PNWER, it’s not like there’s this huge U.S. versus a little Canada. We’re equal partners.”

Of course, relations have not always been quite that

rosy, as Morrison himself concedes. “I take a step back and say, if you look at the U.S.-Canada file, it’s been dominated by reaction to things like the Western Hemisphere Travel Initiative, the BSE closure of the border for live cattle, the softwood lumber dispute, and on and on. Issues that from a Canadian perspective [have involved] reacting to things that the U.S. is doing. But PNWER offers the opportunity to be proactive and take a stance at doing things the way we should be doing them, developing solutions before the irritants cause us to react.”

Like Windsor, the team at Alberta Economic Development, headed by Minister Clint Dunford, was also in the throes of drafting summit-related artefacts when Edmontonians paid a conference call to their impressively assembled ranks.

At PNWER 2006, AED will be making a joint presentation, along with BC, on the recentlynegotiated Trade Investment and Labour Mobility Agreement between the two provinces. This provides for a much freer flow of goods, services and people, as well as greater reciprocity in terms of labour and accreditation standards. While applicable purely within Canada, TILMA, which will come into effect on April 1st 2007, is seen as a potential model for improved standardization and deregulation throughout PNWER and is already generating interest from other members.

Another focus within the trade and economic development discussions at the event is likely to be the issue of moving specialized equipment such as computerized oil well service rigs back and forth across the border when similar equipment and trained personnel are not available locally. A PNWERsponsored pilot project involving border customs and immigration officers is already proposed.

A third major theme that Alberta Economic Development will be highlighting at the summit is the regional potential of the aerospace industry. In Alberta alone, the sector’s various clusters collectively employ around 6,500 skilled workers, and will be reaching out for strategic partners among the other jurisdictions within the organization. ✔

Enhance Edmonton’s image — NOW

recall a discussion I had with an investment analyst.

He wondered if I had considered investing in China and the Pacific Rim. He lauded the huge growth potential of the region and provided some compelling reasons as to why we should be involved there.

While it is true that the opportunities in Asia, and specifically South East Asia, are significant, we have our own “China” located in our backyard: the Pacific Northwest and, in particular, Northern Alberta. The opportunities in this area over the next decade or so compare favourably to almost any other part of the world.

And, being in the heart of the region, it is far easier and less expensive to capitalize on these opportunities.

The boom in the north is driven primarily by our southern neighbour’s thirst for a secure energy supply.

Canada is already the #1 supplier of crude oil and petroleum products to the U.S., and the oilsands are a growing component of our oil exports, expected to represent 60 percent of our crude oil production by 2010.

Northern Alberta is also resource rich in other areas such as mining and forestry, creating diverse opportunities that Albertans and Edmontonians can harness.

At a recent conference, a focused question was asked of me: “Sure there are huge opportunities in the North, but is there real money to be made?” Given the somewhat obscene amount of money investors and corporations are pumping into the area, the expectation is that, no matter what you do… what business you are in, there is money to be made. Therein lies both the challenge and opportunity.

With a seemingly endless supply of natural resources and money to be invested, the key to sustainable development in the North is the availability of skilled and unskilled individuals required to facilitate the growth.

A common comment these days is that “if you are breathing, we are willing to hire, train and employ you.”

This demand has created a ripple effect throughout Alberta,

across British Columbia and stretches to Newfoundland and across the ocean to other parts of the world. In fact, Canada recently announced the lowest unemployment rate since 1974, with a national average of 6.1 percent. Alberta is significantly below this average with a 3.4 percent jobless rate.

This shortage has had two major impacts. First, the cost of hiring unskilled workers in major centres such as Edmonton has escalated. Second and more critically, the rates commanded by unskilled workers in the service industry have reduced the incentive for these people to acquire the trade skills needed to address the acute labour shortage for skilled workers. This will have a significant long term impact on the makeup of our local population and our ability to retain our standard of living—at some point, the ability for the service industry to pay these inflated wages will cease. Coupled with the growing cost of housing in many parts of Alberta, the inflated wages will have little or no impact on the standard of living and, in many cases, could contribute to a lower standard of living over the long term.

You’ve undoubtedly been personally affected by this shortage as well. For example, the drive-through at your local Tim Horton’s might be closed because there is not enough staff to deal with both the counter and the drivethrough. One local Tim Horton’s even reduced its hours because it could not find enough staff to remain open 24 hours.

With the exception of Quebec, no Canadian province has agreements with the federal government for immigration, thus compounding the long term effect. The federal government is equipped with policies to attract skilled workers. The provinces need to have the ability to attract and bring in temporary unskilled labour to meet the short term needs, while creating training and vocational opportunities for currently unskilled local labour to benefit

permanently from these growth opportunities. We have a unique opportunity to fundamentally enable an entire generation to acquire the critical vocational skills to fuel the development of the North and improve our overall standard of living.

For Edmonton, we are faced with an additional opportunity: to enhance our image. Today, as the gateway to the North, we are perceived as a city that provides lowlevel services to northern development. We have the reputation as a “government city”, a “call centre” haven and a place for the North to secure supplies and low-end services.

However, Edmonton is also—and it seems almost secretly—home to a large number of technology companies, engineering firms and other high endsolutions companies that are equipped to assist in the development of the North. If technology solutions are sourced from American firms, and high end engineering services are sourced from Calgary or American firms, Edmonton will lose out on a great opportunity.

The challenge is for local leadership to ensure that our image and our reputation accurately reflect the real strength of Edmonton.

So, back to the original question “Is there money to be made?” Indeed, there is a lot of money to be made. How successful we are at properly positioning Edmonton will determine if we are able to come away as net long term beneficiaries, or whether the increased costs that come with the northern boom wipe out any gain. ✔ Nizar J. Somji is Chairman of the Board of Matrikon Inc., which trades on the TSE under the symbol of MTK

EDMONTONIANS JULY 2006

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15

Last summer I reported on the

BizINTEL

Science&Tech with Cheryl Croucher

In all the years I’ve known Dr. David Wishart, I don’t think I’ve ever seen him without a baseball cap on his head. But don’t let that casual wear deceive you. David is one smart guy. And he’s making his mark on the scientific front by combining his interest in biology with his expertise in computing science.

David Wishart This professor at the University of Alberta is currently the lead researcher on two very important projects, one dealing with metabolomes and the other with prions.

First, metabolomes. David defines these as “essentially all the metabolites or small molecules that you’ll find in your blood, urine, tissues or body fluids that are the chemicals of life. And metabolomics is really the study of the chemicals of life.”

BizIT 101 with Greg Michetti

PODCASTS: IS ANYBODY LISTENING? Podcasts… a dash of Tivo, a handful of audioblog and a whole lot of Wayne’s World all wrapped up in iPod cool.

Defined as the broadcasting of video or audio files over the Internet for playback on a PC or portable device, the two-year old process evolved from the words “broadcasting” and Apple’s iPod music.

A single web site like podcast.net boasts literally thousands of available podcasts; with over 6,000 in the entertainment category alone. The variety is downright astonishing.

The heart and soul of podcasting personifies the freedom of the web. It’s creating audio and video content for those who want to listen or view it exactly when, where and how they want.

However, there might be one fundamental flaw with podcasts and podcasting: Is anybody really listening?

PODCASTS: ANYBODY HOME? Podcasts are similar to blogs—maybe the only people who read blogs are those who write to them.

Time out for a quick survey: How many blogs have you read and how many podcasts have you listened to lately? That’s what I thought.

However, for some, podcasts threaten the entire broadcasting business.

Canadian Association of Broadcasters President Glenn O’Farrell has expressed solid concern: “If we allow technology to 16

He believes there are about 2500 of these small molecules or metabolites in the body, but no one has ever catalogued or characterized these before. And that’s the gist of his Human Metabolome Project, which gets funding from Genome Canada and Alberta Ingenuity among others. When the project is finished in another year-and-a-half, the development of this library will change the way we do medicine.

As David explains it, “If you go to the doctor’s office and they ask you for a urine sample or they take a blood test, the things they’re actually looking at are small molecules. Small molecules give a wonderful indication of exactly what’s going on in the body. The problem is that the number of molecules that doctors can measure is only 10 or 20. With metabolomics, we’re going to have a list now of 2500 molecules.”

Software programs developed by companies like Edmonton’s Chenomx can analyze samples using several hundred metabolites in minutes rather than days for a fraction of the current costs.

The second big project David is researching has to do with prions. These are the proteins associated with mad cow and other brain riddling diseases. All biological organisms seem to have prions.

It’s only when something goes haywire and the prions start misfolding that problems arise. Tragically, the misfolding starts a chain reaction that doesn’t stop

until the victim dies. But after two decades of intense research, scientists still do not know what causes the prions to start misfolding in the first place.

That’s where David is already making a lot of headway. With funding from the new Alberta Prion Research Institute, he and his team are using nuclear magnetic resonance spectroscopy and computer simulations to determine what is happening with the prions at the most basic atomic level.

Some early results are unexpected, remarks David. “For instance, chickens and frogs don’t seem to get prion diseases.

Analyzing the dynamics shows us certainly that amphibian and chicken prions have a very different dynamic response. That hadn’t been noticed before.

“We’ve also noticed unusual behavior with some of the prions in solution that hadn’t been remarked on before. This is partly because of the way we’ve prepared the prion proteins and it may offer a very simple route to making available the unfolded prion protein.”

And guess whose prions are helping David get to the root of the mad cow problem? None other than the lowly hamster. Seems the hamster is very prone to prion diseases. Fortunately for David and his lab mates, the prions are not infectious, providing a safe model for the researchers to work with. However, it does give you a different perspective on the rather demented behavior of the little rascal running madly on the wheel in its cage.

irreversibly undermine broadcasters’ ability to continue in that tradition, we risk losing, little by little and bit by bit, the most powerful vehicles of cultural expression in Canada.” Further, he has hinted at some type of government intervention to help deal with technological advances he feels will hurt the industry. Call me crazy, but isn’t hiding behind the government skirt in an attempt to un-ring the Internet bell a tough thing to do?

“In the months and years ahead, the big money in this consumer market segment is going to be made in the methods the three devices connect, or talk to each other. Consumers want this done easily, seamlessly and don’t really care how it happens. But they will pay for it.”

CONTENT IS KING Thankfully, O’Farrell’s view isn’t shared by all in the business and away from the politics of Ottawa. The CBC, Corus Entertainment and CanWest/Global— Canadian media heavyweights, view this electronic adversity as opportunity.

Doug Rutherford, veep of news/talk programming for Corus, sees podcasting as another means of distribution and similar to satellite radio. “Podcasts are something that represent new territory for broadcasters coming of age and we have to adapt. Now, I don’t have all the answers… but I do know that radio broadcasters are a very creative bunch.”

So, what will make podcasts work?

“Anything that makes memorable content,” says Rutherford. “If it is talk radio or music delivered via terrestrial, web or podcast, the message is the same: Content is king.”

“There are now three devices to view information: the personal computer, the television and a mobile unit like a cell phone or PDA,” says Vyomesh (VJ) Joshi, executive vice-president at Hewlett-Packard Imaging and Printing Group.

PODCASTING 101 Let’s look at education. The University of Calgary will be the first university in the country to introduce podcasting on a large scale featuring portable MP3 technology as a teaching tool in four courses. Students can listen to lectures at their convenience, either on a home computer or a portable MP3 player “Utilizing podcasts means providing educational material that is portable, functional, relevant and convenient for both faculty and students,” says David Johnston, director of the U of C’s estrategy project.

“We are taking relatively new technology and using it in new ways to enhance the teaching and learning experience. Students … are very interested in the portability and convenience of podcasts.”

Says Ryan Cameron, 20, a third-year student who is pursuing a double major in computer science and English, “There are always good points made in every class... if it’s podcast, you can listen to it over and over, and wherever you want.”

Dr. Harry Vandervlist, who will teach iENGL 231, adds: “It’s important that the recordings be well done and interesting. Using podcasts probably won’t save instructors any time, but what they will do is give both the instructors and their students more

efforts of Lloyd Osler of OVISTECH Corporation to break into the global pandemic market with EpiTrack Sentinel.

Health authorities appear to be rather slow to catch onto the product. Too bad, because it could be extremely useful in tracking and possibly containing pandemic outbreaks. Well, maybe this news will shake them up.

Lloyd is forging ahead with an agricultural application for his real time intelligent software technology, thanks to some help from the Alberta Research Council, Precarn Inc., Harding Instruments, Xanantec Technologies Inc. and the University of Alberta.

Lloyd Osler

Called FARM—for feedlot animal remote sensing—the agricultural version tracks the health of cattle through signals sent from wireless collars and ear tags. The transmitted data is monitored in real time over the internet.

“There have been several instances where the system has detected a decline in an animal’s health before the feedlot operator did,” says Lloyd. “This means animals will receive treatment faster and producers can track disease outbreaks, which will reduce losses and costs for the producer.”

FARM is currently being field tested near Thorsby. OVISTECH expects to have the technology commercially available for the dairy industry in six months, and for the beef industry in about a year.

As for other applications, Lloyd says FERIC, the Forest Engineering Research Institute of Canada, has expressed an interest in using the tracking technology in fighting forest fires.

Continued on page 17 flexibility in how they use their time.”

MOTHERCORP Meanwhile, if anybody gets podcasting, it’s the Canadian Broadcasting Corporation, where its CBC Radio 3 is arguably the premier location in the world for undiscovered artists to easily upload their music and have it available for everyone to play.

Claude Galipeau, executive director of digital programming and business development of CBC, points out the success of its podcast-laden CBC Radio, and the overall success of its website, the most visited by Canadians. The Mothercorp deserves full marks for staying well ahead of the curve on all this. Since it owns part of the SIRIUS satellite radio operation in Canada, I’ll wager CBC will be very aggressive in the video podcasts arena when that matures. The industry just has to figure out how to make money from a platform—the Internet—that has a lot of free attached to it.

So, will podcasts decimate the radio and TV business as we know it? Heck no; not even close. If anything, they will complement it by offering users exactly what they want, when they want.

Better yet, there is a good chance the next undiscovered Shaina Twain is out there creating her own podcast right now. ✔ Gregory B. Michetti of the Alberta-based systems integration firm Michetti Information Solutions, Inc. can be reached via www.michetti.com EDMONTONIANS JULY 2006

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Proof_ _____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Media Minute with Bruce Hogle My first encounter with terrorism occurred as editor of the Trail Daily Times when the B.C. government put Doukhobor children into camps after their parents refused to send them to public schools.

Peaceful law-abiding Doukhobors protested by women marching naked on any occasion in Trail or Nelson, especially when visited by dignitaries the likes of former P.M. John Diefenbaker.

But Stefan Sorokin’s more radical Sons of Freedom Doukhbors, acted like the Taliban of today, and started a lengthy period of terrorism: planting bombs in the Trail post office and Eaton’s store, and the constant dynamiting of West Kootenay power lines and CPR tracks until all train

Continued from page 16

Our expertise in biotechnology continues to put Edmonton on the map. In June, two of the four awards presented at BIOTECanada’s National Presidents Awards Dinner in Toronto went to Edmonton people.

Dr. Alex McPherson of Biomira received the award for “contribution to advancing the benefits of biotech for Canadians.” Having just stepped down from his top position at Biomira in May after almost 16 years, his tenure made Alex the longest serving president and CEO of any biotech firm in North America. Biomira got its start as a spinoff of research into cancer therapies at the UofA and today bills itself as “the cancer vaccine people”. Given how long it takes to prove the efficacy of these medical advances and get them into the market, Alex should probably also get an award for his sheer perserverence.

Also recognized by BIOTECanada was MBEC BioProducts Inc which shared the award for “promising early stage company” with Rimon Therapuetics Ltd. of Toronto.

MBEC BioProducts helps people deal with their microbial biofilm issues—what you might know as slime. For example, if you’re wearing contacts, sporting an artifical joint or using a catheter, you run the risk of infection related to errant biofilms.

MBEC BioProducts provides test for these.

And if you read PROFIT Magazine, you’ll see that Ceapro Inc. is named among Canada’s fastest growing companies with a ranking of 173 in the top PROFIT 100 and Next 100 listings. Ceapro is another U of A spinoff, this one commercializing the technologies developed by Dr. Mark Redmond in fractionating oats for use in therapeutic bioproducts… from early screening for diabetes to shampoos for pets.

And finally, congratulations to NINT. After almost three years of construction, the new building which will house the National Institute for Nanotechnology on the U of A campus was officially opened June 22nd during the NanoForum Canada Conference in Edmonton. Among the buildings special features is Canada’s “quietest” lab. This means the space has ultra-low vibration and minimal sound and electro-magnetic interference. And, just in case you’re wondering why that is so important, you try working with little nano assemblages that size out at 1/80,000th the diameter of a human hair. ✔ 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

travel in the Kootenays was halted.

I’ll also never forget that Sunday morning when photographer Ted Moore and I arrived before the RCMP at the village of Ootischenia, where every home had been burned to the ground, and all families left with only cast iron stoves and stone fireplaces. That terrorism ended when Sorokin’s ex-bodyguard provided The Times with the necessary information to expose Sorokin.

I bring this into focus now with the continuing attention surrounding what will be a lengthy trial of those 17 individuals charged with terrorist activities in Ontario, details of which you’re fully aware.

I’ve written before about contributions and leadership of the 35,000 Muslims in Alberta, such as the Hamdon and Shaben families building the first mosque in Edmonton. That leadership was also

Civic Buzz with David Norwood

I had a call from a friend recently, hoping against hope that Air Canada will restore its non-stop Europe service from Edmonton. He told me he was planning a late September trip to England and had been checking the Air Canada website for the best connections. When he called up the flights by schedule (as opposed to by fare) for his departure date, he was astonished to see a choice of not one but two non-stop departures from Edmonton International to London Heathrow. He wondered if, in fact, Air Canada had made a mistake on its website, substituting Edmonton for Calgary.

Calgary does have two daily Air Canada non-stop flights to London from May to November (dropping to one daily non-stop for the winter months). And the flight numbers looked very much like the Calgary-London service.

I checked the site too, and found that for several days on either side of my friend’s departure date, Air Canada did indeed show two daily non-stop flights from Edmonton to London Heathrow. Curiously, however, no non-stop return flights were shown.

Knowing it was too good to be true, I checked with Traci Bednard, director of communications for Edmonton Airports.

Sure enough, she knew what was going on (this happened two years ago as well). “The short answer is Calgary is closing down one runway for a period of time, which limits their operations. Therefore, AC will route the aircraft through Edmonton creating a non-stop for that period of time to Europe.”

(I believe it’s two to London and one to Frankfurt.)

The Calgary airport is closing its longest runway for about 10 days. Europe-bound aircraft consequently cannot take off with a full load of fuel; they must stop somewhere to take on the rest of the fuel. Edmonton happens to be conveniently on the route from Calgary to both London and Frankfurt, so those flights will stop in Edmonton to take on the full complement of fuel and board passengers. The return flights, however, are light enough to land on the shorter runway in Calgary, having burned the majority of their fuel on the flight from Europe. So no return non-stops to Edmonton.

Many of us have wondered why Air Canada couldn’t land at least one of its two daily Calgary-London flights in Edmonton to take on passengers. We’ve been through the arguments before, and we can always hope that, at some point, Air Canada or another carrier will realize that the substantial and growing population base in the Edmonton region can indeed support nonstop flights to Europe. In the meantime, if you’re planning head to London or Frankfurt the last 10 days of September this year, take advantage of those non-stops. My friend did; he’s delighted that for once he’ll be flying directly to Heathrow.

evident last month when Calgary Imam Syed Soharwardy founded Muslims against Terrorism, and launched Project Unity Now which favours banning radicals from Canadian mosques who preach hatred and violence.

I think such moves will eliminate garbage being preached by people like alleged terror-cell leader Qayyum Abdul of Mississauga who stated Canadian troops went to Afghanistan to rape Muslim women. Or Scarborough Salaheddin Islamic Centre Imam Aly Hindy who said the arrest of the 17 Ontario Islamics was done “for the sake of pleasing George Bush.” Further: “The CSIS and RCMP are feeling threatened—not of terrorism but of losing their jobs. They need to create an atmosphere of fear in this country to keep their jobs. They talk of homegrown terrorism. This is homegrown baloney.”

Well, I’m delighted to know Aly Hindy is such an expert on Canada, and so knowledgeable about one of the finest police forces, in one of the finest countries this world has ever known.

The vast majority of immigrants to this wonderful nation, and their children, appreciate the opportunities provided by Canada, and happily follow the tenet of former Governor General Georges Vanier who proclaimed: “I am not English… I am not French… I am a Canadian.”

Where, pray tell, Ali Hindy, do your loyalties lie? I think other Muslims, as well as other Canadians, deserve to know. ✔

Recent warnings about longer-

industries and municipalities and has proven to be a win-win business relationship. The treated water meets Petro-Canada’s industrial requirements, while the City benefits through enhanced water quality and improved plant capacity with no extra costs to our taxpayers.”

“CH2M HILL is proud to be one of the founding partners of the Sustainable Communities Award as it enters its seventh year. This Award recognizes the achievement and commitment of municipal governments to improve the quality of life for Canadians,” said John Murray, President of CH2M HILL Canada. The company, which has an Edmonton office, provides program management, design, technology and construction/turnkey services to private industry and public sector clients.

term water shortages on the prairies make even sweeter the fact that an innovative environmental project has scored a significant award for Edmonton. The City has won the prestigious FCM-CH2M HILL Sustainable Community Award for excellence and innovation in municipal service delivery that has advanced sustainable community development. The award was presented at a recognition ceremony at Federation of Canadian Municipalities’ 69th annual conference and Municipal Expo in Montreal on June 3rd.

The award recognizes the City’s leadership in the wastewater category for a new 5.5-kilometre pipeline constructed, through a partnership arrangement with Petro-Canada, to deliver high-quality recycled water from the Gold Bar Wastewater Treatment Plant to PetroCan’s Edmonton refinery. This was a mutually beneficial project, meeting the refinery’s water needs for new processes and providing surplus water for other users

along the river valley, including the Sunridge and Nordic ski clubs for snowmaking and the parks system for irrigation and pond recharging. The first of its kind in Canada, the project demonstrates innovative technology and sets a new standard for environmental best practices.

Petro-Canada funded capital costs of the pipeline, as well as the membrane treatment facility and pump station at the Gold Bar plant. The cost of the membrane facility and pump station was approximately $13 million, while total project costs are about $25 million. The City of Edmonton will supply the recycled water to Strathcona County, on behalf of Petro-Canada. The County will in turn purchase the recycled water, operate and maintain the pipeline from the plant to the refinery, and deliver the recycled water to Petro-Canada and its designates, including Air Products for use in hydrogen production. The innovative partnership between the City of Edmonton and Strathcona County was negotiated after Petro-Canada considered and opted against building its own on-site wastewater treatment plant.

“The recycled water line reinforces the City’s international reputation in environmental management and our expertise in advanced wastewater treatment,” said Edmonton Mayor Stephen Mandel. “The unique project serves as a model for other

Bruce Hogle is the former news director at CFRN TV and recently retired head of the Alberta Press Council.

The City’s Smart Choices initiative, which Edmonton developed to re-think the way it grows and redevelops, is beginning to produce results. The highest profile project arising from the initiative to date is arguably Century Park, the highdensity urban village being developed on the site of the former Heritage Mall. But recent proposals have come forward for the Strathearn neighbourhood to replace the multi-building Strathearn Apartments, and in Glenora for the area of 142 Street and 103 Avenue. Both involve mixed-use developments incorporating the urban village concept—that is, one can walk to shops, services, restaurants, and so on— with a mixture of low-, medium- and highdensity housing. More development proposals are forthcoming.

This is exactly what the City has been hoping to achieve, helping to slow—if not stop—the amazing urban sprawl that has characterized the metro region’s growth over the past decade. Of course there is opposition, but if the developers carefully communicate what they want to do and, equally important, if the projects truly help to rejuvenate and intensify older neighbourhoods, they are a significant step in the right direction.

Densification used to be a bad word, but we know now that carefully planned mixed-use, high-density projects actually contribute to a healthy city and a good quality of life. ✔ David Norwood is a freelance writer/editor.

Contact dnorwood@edmontonians.com

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Proof_ _____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

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lifestyles LIVELY with Linda Bodo

Y

with Chef John Berry

Summer Games

our yard looks absolutely perfect.

The lawn is lush, flowers in bloom, and trees form dense canopies of green. Time to invite some friends over for an afternoon of fun and games. Host a lawn-game tournament with a few cocktails to kick-start the affair and some munchies thrown in for good measure.

Fire up the barbeque, and serve the trendy version of sliders—mini burgers that fit perfectly into the popular tapas concept—to complement the country, the game and the liquid refreshments.

Sliders first appeared in the U.S. in the early 1920s, at the White Castle restaurant chain, the oldest American hamburger joint. They were the original greasy burgers—hence the name. But, now that they’ve gone gourmet, sliders have achieved a new cult craze status all over North America. California is a slider heaven. The Upper East Side in New York has become a mini-minefield of restaurants offering sliders. The Overtime Bar and Grill in Edmonton is said to have the best sliders in town.

We didn’t stop at presenting sliders made from lean ground beef. We also prepared pork/beef, bison and lamb burgers. While the ingredients that went into the meat mixtures are relatively standard, the toppings were what gave the sliders individuality.

BASIC BURGERS 1 lb. ground meat 2 Tbs. Dijon mustard 1/2 cup bread crumbs or oatmeal 2 Tbs. barbeque sauce 1 tsp. each salt, pepper, rosemary 1 egg 1 medium onion, finely chopped 1/4 cup chopped chives 1 clove garlic, finely chopped (1 tsp. Herbs de Provence) In a large bowl, combine all ingredients. Mix thoroughly by hand to ensure even distribution of all seasonings. Form into eight 2 1/2 to 3 inch patties. Grill to well-done. In last few minutes, if desired, top with appropriate cheese and allow to melt. Remove from grill and serve on petite dinner rolls, brioche or baguette slices.

We added Herbs de Provence to the lamb burgers only. Use you imagination and add herbs that enhance your toppings and match your theme country. For example, go Greek by adding oregano to the meat mixture, and top the sliders with feta cheese and olives.

Here’s our summer line-up for backyard fun. All the games are available at Lee Valley Tools.

“

MENU

Magic

The Game

The Drink

The origins of croquet are a little cloudy. Some believe that it developed from the French game Pall Mall, but arguments link it more to golf than croquet.

What is known is that the game traveled from France to Ireland, then to England in the mid 1800s. At first, croquet was most popular among women; it was a new experience for them to be able to play an outdoor game in the company of men. Early games of croquet were carefully chaperoned and the practice of Tight Croquet became all the rage. Here, a foot was placed on the ball before hitting, causing the target to fly into the bushes. Inevitably, young men and women were forced to go into bushes to search for the ball…

Bellini’s were invented in 1934 at Harry’s Bar in Venice, a well known haunt of Ernest Hemingway and Orson Welles. Faced with an abundance of seasonal white peaches, owner Guiseppe Cipriani created the drink and named it after the 15th century artist, Giovanni Bellini.

Mix one-third fresh peach juice and two-thirds chilled sparkling wine. Make sure to pour the peach juice into the glass first. Guaranteed to improve your game.

The Drink

Horseshoes dates back as far as the 2nd Century when iron plates or rings were nailed on horses’ feet. One of the sports featured in the Greek Olympic Games was discus throwing. The discus was a circular plate of metal or stone 10” or 12” in diameter that was pitched with a strap passed through a circular hole in the centre. Grecian armies that could not afford the discus took discarded horseshoes, set up a stake, and began throwing horseshoes at it. The game migrated to North America with soldiers returning from WWI.

Pimm’s is a traditional English summer drink. It is thought to be the most suitable cocktail to drink while watching croquet at Wimbledon. Created in 1840 by James Pimm’s, it is customary to serve the orangebased gin with soda water over ice, garnished with a slice of cucumber or mint sprig. Start with half Pimm’s and half soda. Test various strengths until you are satisfied, or fall down…whichever comes first.

The Slider

Top the pork/beef burger with shaved parmesan, procuitto and grilled Romano tomato slices. Spread the buns with pesto or Italian veggie spread. Serve with caper buds.

The Game

The Drink

Top the beef burger with Stilton cheese, thin cucumber slices and watercress. Spread the bun with thick, creamy dill dressing, or dill seasoned cream cheese.

The Game Bocce is an ancient game… its birth lost in the shadows of antiquity. Not only is it among the earliest known outdoor pastimes, but it is played in more countries than any other ball game, with the exception of soccer. Bocce was played between battles during Rome’s Punic Wars which started in 264 B.C. Soldiers selected a small stone called a leader and threw it first.

Then larger stones would be thrown at the leader and the stone coming closest to it would score. The game provided exercise and relaxation for the soldiers.

During the same period, Vulgar Latin emerged as a dominant language of the common man. The Latin word bottia—meaning ball—is the root of the Italian word boccia or bocce, as the game came to be known.

It’s one of the lunch hour games played in Churchill Square during non-festival days.

”

The Slider

The Caesar is considered Canada’s national drink. In 1969, while working for The Westin in Calgary, Walter Chell was asked to develop an original drink to celebrate the opening of a new restaurant. Three months of experimenting eventually yielded a mix of hand-mashed clams, tomato juice, vodka, Worcestershire sauce, salt, and pepper. The Mott Company eventually developed its own clamato juice and, after an initial dispute, hired Chell to consult and promote the product.

Rim a tall glass with celery salt and fill with ice. Add one ounce vodka, top with Clamato juice, splashes of Worcestershire and Tabasco sauces, dashes of salt and pepper. Instead of the usual celery stalk, garnish with a pepperoni stick or pickled asparagus spear. Takes the pain away when you miss a shot.

The Slider Top the bison burger with Armstrong sharp cheddar cheese, Canadian back bacon, and grilled onion rings. Spread the bun with spicy mayo. Serve with grape tomatoes.

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www.suddenlyslimmerdayspa.com 18

EDMONTONIANS JULY 2006

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Proof_ _____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

ENGLAND

ITALY

CANADA

FRANCE

CROQUET

BOCCE

HORSESHOES

BOULES

PIMM’S

BELLINI

CAESAR

PASTIS

BEEF SLIDER

PORK/BEEF SLIDER

BISON SLIDER

LAMB SLIDER

The Game

The Drink

Boules, otherwise known as pétanque, is perhaps the sport that is closest to French hearts. Similar to lawn bowling or bocce, the French version is traditionally played with metal balls on a dirt surface beneath plane trees, with a glass of pastis at hand. The object of the game is to throw your balls—usually with somewhat of an arched back-spin—so they land closer to the cochonnet (small object ball) than those of your opponent, or strike and drive the object ball toward your other balls and away from your opponent’s.

Pastis is an aniseed-flavoured alcoholic drink which is a classic apértif in Provence. Amber coloured in the bottle, it turns a milky white when mixed with water. It is often referred to as the milk of Provence.

Here is an absolute version that is sure to improve your game. Heat one side of a brown sugar cube until lightly caramelized. While hot, attach to the middle of a 6” bamboo skewer. Pour one ounce of pastis into a tapered glass and lay skewer across the top. For serving, pour water over the sugar cube into glass. Guests can use the

skewer as a swizzle stick and melt any remaining sugar… or use it to threaten their opponents.

The Slider Top the lamb burger with goat cheese, thin radish slices and black sesame seeds. Spread the bun with Grey Poupon mustard. Serve with tapanade. ✔ Contact Linda Bodo at lbodo@edmontonians.com or visit absolutebodo.com. Contact John Berry at jberry@edmontonians.com

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Proof_ _____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

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GOLDEN HANDCUFFS

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

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The price a purchaser is prepared to pay for acquiring a company is largely dependent on their assessment of that company’s capacity to continue generating the same results under new ownership. They assess the company’s client base, ability to sustain current levels of revenue, value of the tangible assets and quality of its people. On average, it takes six months from the time a vendor is introduced to a buyer to close a deal. During that period, the purchaser will be watching the company carefully so it is critical that the operations continue with as few crises and surprises as possible.

Financial performance should be as projected or at a minimum deviations should be readily rationalized. The work force should not undergo any material changes, particularly at a senior level, as it will diminish the perceived value of the company, sometimes to the point of collapsing the deal. Valued key

employees are currently very marketable, especially in Alberta’s competitive market. Owners cannot afford to have any of their senior people walk while they are trying to sell their company.

A practice known as Golden Handcuffs is becoming more commonly used by employers to prevent this. It is an incentive system designed to discourage key employees from leaving. It pays employees a bonus of 50% when the sale is closed and an additional 50% if the employees stay with the company for some reasonable period of time, usually 12 months after the sale. To be effective, the financial reward must be significant and payable within a realistic period of time. The amount is usually related to the worth of the individual’s total remuneration package; 100% of current remuneration is not uncommon. The longer the period of payment, the larger the carrot must be. We have

seen deals that provided a two year bonus three years after closing.

Buyers who are interested in retaining key employees may also offer them the opportunity to buy into the business under the same terms as their purchase. If the deal is highly leveraged the amount the employee has to come up with is a lot less than where there is a significant equity component.

Gone are the days when employees are satisfied simply with their employment, remuneration, vacation entitlement and benefits. In today’s hot market, employer incentives are a small price to pay to safeguard a sale or acquisition. Key staff is usually involved in the sale process and you want them working positively towards a successful closing. If you are thinking of selling your company, 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 JULY 2006

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Proof_ _____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________