Canadian Business Journal Nov 2011 by Enterprise42 Canada

The

Canadian Business november 2011

in this issue â&#x2013;ş

Volume 4

Issue 11

Journal

www.cbj.ca

food & drink NB Liquor

infrastructure P3 Canada

Finance Pimco Canada

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EDITOR’S Note

The Canadian Business Journal is published every month with a singular goal: to showcase the best of Canadian business nationally and around the world. For the November issue, we advocate on

by the weaker and more uncertain global economic environment.” Now more than ever, it’s important to celebrate our best and brightest, such as Fundy Tidal, a company in Nova Scotia that

behalf of one of our most globally influential

is using the most current science to harness

companies, Research in Motion Inc. The re-

the power of the Bay of Fundy, and Aboriginal

cent problems the company has faced do not

Pipeline Group, a partner with the ground-

merit the wolf pack that has set upon it, and

breaking Mackenzie Valley gas project in the

we predict that 2012 will be a banner year for

Northwest Territories, as well as many others

the company if it can learn from its missteps,

proudly featured in our pages.

react quickly to speculation and concentrate on fewer, more popular products. Despite a less-than-optimistic report from the Bank of Canada which reported the Ca-

Continued support of Canadian business and entrepreneurs will help shield us from the turbulent economies of other countries. As Rick Costanzo said to us regarding the

nadian economy has weakened since June,

future at RIM, “There are tremendous oppor-

Canadian business continues to lead the

tunities in front of us. The question is how do

charge toward a robust domestic economy,

we best approach them?”

with “business fixed investment still expected to grow solidly in response to very stimulative financial conditions and heightened competitive pressures, although it will be dampened

Anna Guy

What inspired our healthcare innovations? Understanding the people who will need them. Innovations must be relevant to be groundbreaking. So itâ&#x20AC;&#x2122;s important to look to those who will use and benefit from the technology. It is these people-focused insights that have made it possible to lower dose levels in CT by up to 80%, compared to prior techniques.1 To help diagnose cardiac disease sooner with a cardiograph that recognizes the differences between a man and a woman. And to help you visualize cancerous lesions with a PET/CT imaging system designed for patients of different shapes and sizes. We take the time so that you have the time. To learn more, please visit www.philips.com/innovations.

*Because our innovations are inspired by you.

1. Data on File. Philips Medical Systems white paper: Step & Shoot Cardiac; Low-dose cardiac imaging. 2007

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Table of Contents NOVEMBER 2011 | VOLUME 4 | ISSUE 11

016 COVER FEATURE

RIM Back in Motion 016

NEWS

News in review 028

ON THE FRONT PAGE CBJ SAYS

Short leash for Ontario’s McGuinty: Grit leader returns in ‘major minority’

034

Roy Green takes on bullying 040 Alex Carrick In hard times, the fault line in our finances may reside in our homes 046

CHAMBER

Major crisis of confidence grips the global economy

050

LEGAL

The Independent Board: Take a stand on who sits in your chair

058

CBJ FINANCE

Canada No.1 064 Dominion Lending Centres Canada’s pre-eminent mortgage company 066 Landry Morin Conscientious and conservative investment management 078 Pacific Investment Management Company, LLC Preparing for the New Normal 084 HUB Financial Managing General Agency 092 Timbercreek Asset Management Investing in real estate 102

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Table of Contents NOVEMBER 2011 | VOLUME 4 | ISSUE 11

102 124 CLEAN 15

Insights from the Carbon Disclosure Project 112

MANAGEMENT

Thinking of selling Your Company? 118

FOOD & DRINK

New Brunswick Liquor A toast to New Brunswick 124 La Prep Canada’s fresh fare experience, everyday 142

MUNICIPAL

Town of Inuvik A hotbed of oil and gas activity in the frozen north 154 Cape Breton Regional Municipality 100 years of bringing business together 164 City of Moncton New Brunswick’s hub city 170 Osoyoos Indian Band Development Corporation 184

Funny Business by Michael de Adder

Table of Contents NOVEMBER 2011 | VOLUME 4 | ISSUE 11

164 244 RESOURCES

MiHR Innovate: A catalyst for sharing mining HR practices and knowledge Northquest Ltd. Exploration company positioned for golden future

190 198

ENERGY

Fundy Tidal Current thinking 204 A step closer to a Canadian Sustainable Energy Strategy? 212 Aboriginal Pipeline Group Aboriginal representation restarts long awaited pipeline 216 Northern Promises 224

INFRASTRUCTURE

P3 Canada Building more for less 228

CONSTRUCTION

Soprema Has you covered 236 Whitecap Development Corporation Build it and they will come 244

Target is coming to Canada And we want you to be part of our team. In 2013, Target stores will open all across Canada. And we’re looking to build a team of talented people who can deliver the kind of innovation and difference our brand is known for. There are opportunities to grow and lead in a range of sectors including store management, merchandising, healthcare, human resources and many more. So, if you’re looking for a fun, dynamic career where goals are clear and results are always rewarded, we want to hear from you.

Learn more about Target and our range of career opportunities at www.target.ca/careers.

Table of Contents NOVEMBER 2011 | VOLUME 4 | ISSUE 11

274 294 ENERGY PRODUCTS & SERVICES

Centric Health Strategic acquisitions for a better healthcare solution

254

Brazil Canada Chamber of Commerce 264 Markham Acura True definition of luxury 274 Papason Trucking Goes the extra mile 282 Westowne Mazda Showcasing excellence 288 Penco Drywall Expect perfection 294 Athabasca Basin Security Service Industrial safety experts 302

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CBJ

COM

Of Th

operational growth The Canadian Business Journal is published

CSR and Sustainability

monthly with one goal in mind: to showcase the best of Canadian business both nationally, and internationally. Every issue has examples of the best in entrepreneurism and industry more impressive than that last. In the course of each year we have the opportunity to meet and interview hundreds of leaders in Canada’s business community. The success of Canadian businesses, in particular during the recent global market recessions, demonstrates Canadians’ reputation for working to achieve unparalleled industry leadership, growth and innovation. In its inaugural year, the 2010 CBJ Company of the Year Award recognized all that is great about Canadian businesses. As the country’s leading online B2B magazine, the CBJ publishes stories every month about the “best in class” in Canadian business. This competition capitalizes on what the CBJ team already knows—that Canada’s leading corporations in the fields of technology, resources, healthcare, and a host of other

innovation

industries, are among the best in the world.

corporate culture

Mpany

he yeaR

AWARD

Building on the success of our first year, it’s

monthly advertisement placement within

now time to honour the visionaries of 2011,

the publication and a prominent web

leaders whose companies and achievements

advertisement on CBJ’s homepage. In

stand out amongst the best. Our goal: to

addition, the winning company will receive

find Canada’s No. 1 business, and share that

an extensive company profile in CBJ in the

company’s successes with the rest of Canada

first quarter of 2011. George Media will also

and the world.

reproduce the company profile, with its own

Companies entering the Company of the

customized covers, into a digital brochure

Year contest will be required to highlight

for the winner’s future marketing and

their performance and strengths within four

promotional initiatives.

key areas;

Companies with annual revenues in excess of $5 million are invited to compete for

• CSR and Sustainability • Corporate Culture • Innovation and Research and Development • Operational Growth

the top spot-with the final winner receiving a generous George Media advertisement package and an editorial spotlight in an upcoming issue of the CBJ. Three runners-up will also be chosen in addition to the award recipient, and will be featured in the CBJ as well. Companies can be public or privately

Deadline for submission will be December

owned-but must be able to demonstrate

2, 2011, with winners being announced in the

excellence in all four categories.

2012 first quarter. The overall winner of the

The CBJ research and editorial teams have

competition will receive a tailored advertising

spoken to the “best of the best” in Canada-

program valued at $50,000 through

and we know those companies are ready to

the CBJ, as well as website advertising

showcase their strengths-by winning the CBJ

throughout 2012. The program will include

Company of the Year Award.

By Anna Guy

It seemed like Research in Motion Inc. (RIM) was going to catch a break that day. Apple, in a rare misstep, drew criticism and disappointment from fans expecting the release of the iPhone 5, but who instead got the iPhone 4S. Looking to be blown away by a great surprise, fans and investors sent the stock down four per cent, and left newly appointed CEO Tim Cook looking a little shaky. A lackluster product debut, Internet forums filled with criticism, falling stocks; RIMâ&#x20AC;&#x2122;s shoe was on the other foot, and for a few hours, the heat was not solely on RIM.

COVER FEATURE RIM: Back in motion

It was a fleeting moment, as we now all know.

Apple rolled out products seamlessly, eating away

The next morning, any remnants of Apple

at the market.

disappointment was quelled with the untimely

The idea of dropping one of the CEOs (invari-

passing of Apple co-founder, Steve Jobs, whose

ably Jim Balsillie, who was preoccupied with buy-

contributions to the 21st century were lauded

ing an NHL team for most of the last two years)

for weeks.

had been thrown around in the public sphere.

Compared to an off-day of its biggest competi-

Northern Securities analyst Sameet Kanade

tor in the smartphone industry, Waterloo-based

asked RIM to consider dropping Balsillie as a

RIM has had a difficult two years. In July, the com-

co-CEO, among other recommendations. An open

pany terminated 2,000 jobs, about 11 per cent

letter to RIM, authored by a high-ranking employ-

of its workforce worldwide. First quarter profits

ee, said, “To avoid this death, perhaps it is time

from this year were down 10 per cent, and market

to seriously consider a new, fresh thinking, experi-

share fell an additional five per cent.

enced CEO. There is no shame in no longer being

Missteps followed slips ups. There with a cringe-worthy, boggled PlayBook launch, which

a CEO.” Perhaps most telling was a boost in stock

failed to make any impact, leaving RIM employees

prices amidst rumours of a strategic consultant

to watch Apple’s runaway iPad and iPad 2 blow

being brought in. It shows investors are confident

them out of the water.

in BlackBerry products, less so in the current

Then there were troubles with the overseas markets when Saudi Arabia, the UAE and other

management. Paul Hodgson, senior research associate

countries threatened to shut down BlackBerry

for GMI, a governance ratings firm, summed up

Messenger (BBM) for failing to comply with

investor frustration. “They are supposed to be the

security laws. There were production delays that

representatives of shareholders and they’re not

botched any momentum for product launches, all

doing a very good job of representing sharehold-

the while competitors like Android and especially

ers’ interests.”

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

BlackBerry Playbook

COVER FEATURE RIM: Back in motion

Marketing strategy to quell the storm was lacking, if it existed. As of late, the media perception of RIM is of a once-mighty company disintegrating amidst competitors such as Apple and Android, despite the fact that RIM has, in fact, quadrupled its size in five years, still taken in close to $700 million in the last quarter, and is experiencing substantial international growth. In June, the CEOs did address some of the concerns that have been expressed surrounding the executive management structure at RIM, specifically, the joint nature of its leadership. “Mike [Lazaridis] and I have been partners in this business for almost 20 years, and during Jim Balsillie, RIM Co-CEO

that time RIM has grown to $20 billion in annual revenue. We are currently approaching the

Throughout, little was heard from co-founders

tail end of a significant transition in our busi-

Mike Lazaridis and Balsillie, but much was heard

ness, that, frankly, few companies would have

about them. RIM has a unique corporate struc-

survived. But we have. And I believe, and I think

ture to say the least. Considered “top-heavy”,

Mike would agree, that neither of us could have

Lazaridis and Balsillie are co-CEOs, a strategy

taken RIM this far alone.”

that has taken a lot of heat in light of strategic

“I agree with Jim’s comments,” Lazaridis

missteps of past months. Does a shared CEO

added. “Our co-CEO arrangement is what led to

position lack a singular vision? Can two generals

RIM’s success over the past two decades.”

lead an army?

NOVEMBER 2011 The Canadian Business Journal

Don’t sell your stocks just yet Is the media being too quick to give RIM the RIP? We think so. There is no denying RIM deserved the criticism it received, but a wakeup call has been sounded, one that we predict will show dividends as early as first quarter 2012. We spoke to RIM Managing Director Rick Costanzo for some perspective on RIM’s position. “I’ve been here for 12 years, having joined the company about a week before the BlackBerry was officially launched in 1999. For us, this year is very much about going and managing a transition period. You have to keep in mind BlackBerry has gone through a dramatic period of growth.”

mike lazaridis, RIM president and Co-CEO

“I wouldn’t characterize this as some sort of huge negative period by any stretch of the imagination,” he continues. “I recall a correction we had to

know which is unparalleled growth and success.” Cognizant of RIM competition, the iPhone,

take in 2003 and 2004 and frankly the company

Android phones, Google phones, Costanzo says,

came out of it that much stronger. There are some

“There was always something around the corner

similarities [between now and 2003] to the degree

that was going to kill us. At the end of the day, if

of people’s determination to put whatever issues

you focus on the market, focus on your custom-

have been with us over the past squarely behind us

ers, deliver upon your promises, usually the rest

and stay focused on the future. We have a focused

looks after itself. RIM has a tremendous history

determination in terms of getting back to what we

of doing that.”

COVER FEATURE RIM: Back in motion

BlackBerry Bold 9900

NOVEMBER 2011 The Canadian Business Journal

Costanzo contends, “It’s taken us a little lon-

fidelity, best browsing in the industry, we have a

ger than we would have liked to bring out some of

ton of leading-edge technology that is super easy

the BlackBerry products, but we’re happy now that

to use. Discovering these capabilities is as easy as

they are actually in market they have gone on to a

hitting the touch screen on the product.”

phenomenal start.” The BlackBerry 7 is a major part of RIM’s “transition”, as it its QNX software, acquired in late October, which RIM says will make a very impressive contribution to smartphone technology. “QNX is strong because it has the ability to

Will RIM see a rebound in sales based on the BlackBerry 7? “Without a shadow of a doubt,” says Costanzo.

Is BBM the White Knight? Days after speaking to Costanzo, RIM suffered

squeeze as much processing power out of the

another blow, a major outage of its BBM services

environment as humanly possible. We have publi-

rolled over Europe, the Middle East, Africa,

cally stated our intention in utilizing QNX software

India, and North America. And yet, it might still

and rolling that out across handsets as well, that

be worth holding on to those RIM shares. This

bodes extremely well for us also,” says Costanzo.

BBM outage lasted four days and illustrated how

“You have to take a look at what we’ve done with BlackBerry 7, that very much reflects our plan. We don’t want to try to copy other platforms.

important the service is to people who rely on it for personal and business applications. “I have to go online to check my messages

We want to be true to ourselves. The reality is

like a caveman,” opined my colleague Cory

frankly that is the strategy that serves us extra

Wilkins during the outage.

well. If you take a look at the 9900 BlackBerry, it

What RIM has on its hands is products that

mirrors what our strategy actually is. It is a highly

people love but a lack of marketing strategy

aspirational offering. Everything from the brushed

and a refusal for the most part for Balsillie or

metal finish, the high definition capabilities of

Lazaridis to acknowledge any sort of difficulty, at

the screen, the multimedia capabilities, high web

least publically.

COVER FEATURE RIM: Back in motion

“I wouldn’t characterize this as some sort of huge negative period by any stretch of the imagination,” Rick Costanzo, RIM Managing Director

The BBM outage may be good for RIM in the

Berry Bold is crazy! I’m in love!” tweeted

long run for two reasons. One, it reinforced how

@KimKardashian. “BlackBerry is the best! People

integral the service is for BlackBerry users. BBM

please agree w[ith] me! Iphone’s [sic] are so hard

is the stronghold of the BlackBerry platform, more

to type.”

so than its operating systems, its battery life, privacy—all the things Lazaridis promotes. “BBM has been a huge catalyst for us in terms

Mirka Federer is almost as well known in sports circles for watching her BlackBerry than her famous husband Roger during his matches.

of driving growth for us,” says Costanzo. BBM fans

Politically, President Barack Obama’s love for

have taken to the service in such force that the

his BlackBerry is well documented, and he was

outage will not do much to dent enthusiasm for

quoted as saying before his inaugural address,

the product. Here is where RIM has an opportunity

“I’m still clinging to my BlackBerry. They’re going

to really capitalize on a feature that is so loved.

to pry it out of my hands.” (In the end, Obama got

Unlike Apple’s very memorable ad campaigns, RIM’s ads are aimed at the corporate world, neglecting BlackBerry’s impact on pop culture. A few quick examples: “Ok this new Black-

his way, and still uses his BlackBerry, winning his own personal Battle of Waterloo.) The BBM outage made nightly news around the world for days, and while it was bad publicity,

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

it should serve as a clear indication of what its

investors, speaks openly with its customers and

customers value in its products and a motivating

acknowledges its deficiencies, rather than stand

factor to better articulate how it will continue to

by silently, allowing media and investor specula-

deliver on those expectations.

tion to run amok.

Secondly, the BBM outage garnered a per-

More leadership and an articulated media

sonal reply from Lazaridis, who posted a YouTube

campaign will go far in helping RIM continue to

video addressing the issues, acknowledging the

turn the corner.

inconvenience. Perhaps this is part of a newer, friendly RIM CEO, one who engages more with its

â&#x20AC;&#x153;The general mood at RIM right now is a determination to turn the page and absolute

COVER FEATURE RIM: Back in motion

RIM Corporate Office

NOVEMBER 2011 The Canadian Business Journal

“There was always something around the corner that was going to kill us. At the end of the day, if you focus on the market, focus on your customers, deliver upon your promises, usually the rest looks after itself. RIM has a tremendous history of doing that.” Rick Costanzo, RIM Managing Director

positive momentum and we are very comfortable

which are smartphones, there is still 70 per cent

relative to our competitive positioning. We are

of the market up for grabs.

a profitable company, growing 40 per cent year

“There are tremendous opportunities in front

over year and with 70 million subscribers and

of us,” says Costanzo. “The question is how do

climbing. We have just launched the biggest

we best approach them?” CB

portfolio of devices in the company’s history in one fell swoop, delivering unparalleled performance on the BlackBerry platform and rebounding nicely.” It’s too early to count out Canada’s most innovative company. With 4 billion cell phones out there in the world today, only 25 to 30 per cent of

All photos courtesy of RIM.com News Gallery

SECTION Title

NEWS in review

RIM offers free apps following network downtime Research In Motion (RIM) announced that a selection of premium apps worth a total value more than US$100 will be offered free of charge as an expression of appreciation for customer patience during recent service disruptions. The apps will be made available to customers over the coming weeks on BlackBerry App World and will continue to be available until December 31. “Our global network supports the communications needs of more than 70 million customers,” said RIM co-CEO Mike Lazaridis. “We truly appreciate and value our relationship with our customers. We’ve worked hard to earn their trust over the past 12 years, and we’re committed to providing the high standard of reliability they expect, today

month extension of their existing technical sup-

and in the future.”

port contract, and customers who do not currently

The complete selection of premium apps will

have a technical support contract will be offered a

become available to download at BlackBerry App

one month trial of RIM’s BlackBerry Technical Sup-

World over a period of four weeks beginning Octo-

port Services—Enhanced Support, free of charge.

ber 19. RIM’s enterprise customers will also be of-

“We are grateful to our loyal BlackBerry customers for their patience,” added Lazaridis. “We

fered one month of free technical support. Current

have apologized to our customers and we will

customers will be offered a complimentary one

work tirelessly to restore their confidence. We

AUGUST AUGUST2011 2011 The TheCanadian African Business Journal

are taking immediate and aggressive steps to

A global leader in wireless innovation, RIM

help prevent something like this from happening

revolutionized the mobile industry with the

again.”

introduction of the BlackBerry in 1999. Today,

Many global customers experienced service

BlackBerry products and services are used by

interruptions and delays over a three day period.

millions of customers around the world to stay

Global teams worked around the clock to contain

connected throughout the day. Founded in 1984

the issue and minimize the impact to customers

and based in Waterloo, Ont., RIM operates offices

as much as possible. As of October 13, service

in North America, Europe, Asia Pacific and Latin

levels returned to normal.

America.

SECTION Title

NEWS in review

Despite economy, Canadian businesses

nesses believe the U.S. economy will underper-

confident about 2012: report

form in the next five years and as a result have

Faced with global economic uncertainty, 51 per

changed their plans to invest, expand and hire.

cent of Canadian businesses believe 2012 will

One in four Canadian businesses indicate that a

be a better year than 2011, and only 13 per cent

poorly performing U.S. economy will be their big-

expect it to be worse. More than one in three (79

gest challenge for 2012.

per cent) of Canadian business owners also plan

“Understandably, business owners are in-

to invest the same amount or more into their

creasingly concerned about not only the U.S.,

business in 2012, according to a report by BMO

where recession risks are rising, but Europe’s

Bank of Montreal.

prospects as well, given the sovereign debt cri-

Those who believe that 2012 will be a better

sis that has engulfed the region,” said Jennifer

year cite a number of factors, top among them

Lee, Senior Economist, BMO Capital Markets.

being business optimism (14 per cent), confi-

“Compared to when Canada’s recession officially

dence in improved market environment (12 per

began in the last three months of 2008, exports

cent), restructured or improved business practic-

over the May to July period this year have slipped

es (11 per cent), economic improvement (10 per

6.7 per cent. But while Canadian exports to China

cent) and that these businesses have expansion/

have surged 80 per cent over that period, they’ve

business growth plans (eight per cent).

declined nearly 10 per cent to the U.S. and nearly

Businesses that are less optimistic about the year ahead see the economy worsening (20

22 per cent to Europe.” For those Canadian businesses planning

per cent), less customers/demand (19 per cent),

to expand, 54 per cent intend to open new op-

increased costs of doing business (14 per cent)

erations or hire staff in external markets, while

and poor business conditions, particularly in the

Canadian businesses planning to introduce new

U.S. and European economies (12 per cent). The

products and services or grow their business op-

study also finds that one in three Canadian busi-

erations will do so domestically.

AUGUST AUGUST2011 2011 The TheCanadian African Business Journal

Strike action averted at Air Canada

lective agreement or a binding method of resolv-

Air Canada and CUPE have received notice that the

ing the dispute.

Minister of Labour, the Hon. Lisa Raitt, has asked

Air Canada will appear before the CIRB as

the Canada Industrial Relations Board (CIRB),

required. Further details are not available at this

under Section 87.4 of the Canada Labour Code, to

point. However, it will remain business as usual at

determine the rights and obligations of the employ-

Air Canada and all flights will continue to operate as

er, the union and the employees to continue the

scheduled.

supply of air services in the event of a strike. The strike deadline originally scheduled for

CUPE represents approximately 6,800 flight attendants employed by Air Canada. Air Canada

12:01 a.m. ET on October 13 was effectively

is Canada’s largest domestic and international

cancelled.

full-service airline providing scheduled and

In addition, as a result of the rejection by the

charter air transportation for passengers and

CUPE membership of two collective agreements,

cargo to more than 175 destinations on five

the Minister of Labour is asking the CIRB to

continents. Canada’s flag carrier is the 15th

determine if conditions unfavourable to a settle-

largest commercial airline in the world and

ment exist and if so, to either impose a new col-

serves 33 million customers annually.

SECTION Title

NEWS in review

AUGUST AUGUST2011 2011 The TheCanadian African Business Journal

Scotiabank Commodity Price Index

Federal Reserve Board, at its meeting on Septem-

retreats in August

ber 21, did not announce a third round of Quantita-

Scotiabank’s Commodity Price Index, which mea-

tive Easing (QE3), which would have expanded its

sures price trends in 32 of Canada’s major exports,

balance sheet and overall liquidity, and might ulti-

fell by 3.3 per cent month over month in August.

mately have proven inflationary. Spot gold dropped

The All Items Index stayed elevated—only moderate-

as low as US$1,532.72 per ounce on September

ly below (minus-5.2 per cent) last April’s near-term

26 in intraday trading—a drop of US$388 from

peak in commodity prices.

the record US$1,921.15 on September 9, though

“Financial market concern over Euro-zone debt challenges and the political gridlock in the United

prices have since rebounded over US$1,600. The Metal and Mineral Index edged down in

States, threatening to undermine steps to bolster

August by minus-0.4 per cent month over month,

the economy, intensified in mid-September,” said

as moderate declines in base metals and uranium

Patricia Mohr, Vice-President, Economics and Com-

more than offset strength in gold, silver and cobalt.

modity Market Specialist at Scotiabank. “China’s

“Current copper prices at US$3.16 remain

economy, of vital importance to global commodity

quite profitable for mining companies, yielding a 54

markets, also appears to be slowing, leading to

per cent profit margin over average world breakev-

some unwinding of commodity positions by finan-

en costs including royalties, depreciation and inter-

cial institutions.”

est expense, despite the correction,” noted Mohr.

Expectations that U.S. growth may remain ex-

“Recent surveys on the ground point to soft orders

ceptionally slow, with minimal inflation, has likely

for China’s copper fabricators in the fourth quarter,

increased the attractiveness of Treasury bonds,

though global supply and demand conditions are

despite very low yields. These developments

expected to remain largely balanced, in fact, in a

lifted the U.S. dollar last week, dampening gold

slight deficit of 30,000 tonnes. Copper prices could

and silver prices.

well rally back as 2012 unfolds.” CB

Gold investors were also disappointed that the

On the Front Page

Short leash for Ontario’s McGu

Grit leader returns in ‘major m By Cory Wilkins

or uinty

minorityâ&#x20AC;&#x2122;

034

ON THE FRONT PAGE Short leash for Ontario’s McGuinty

The knockout seemed inevitable. Taxed-to-death

Liberals’ single solution of tax—eco-tax, smart

Ontarians were poised for full-force change,

meter tax, the future possibility of a carbon tax—

ready to sweep the Ontario Liberals to the side-

to vote in real change for hardworking Ontarians.

lines and hand the provincial reins to the fiscallyrestraint Progressive Conservatives. Ontario looked to go blue, a Tory and blue collar victory, with many a voter uprising to the

Seemingly, there was an overwhelming amount of negative vibes to not only topple but decimate the Ontario Liberals from the leadership, handing a majority mandate to the PCs.

NOVEMBER 2011 The Canadian Business Journal

McGuinty to the leader’s seat at Queen’s Park, for his now-third term representing the Province of Ontario, but first time with a minority in the legislative assembly.

The only poll that counts How did that happen? In polls leading up to ballot box day, Ontario PC leader Tim Hudak appeared run-away victorious, caution for campaign havoc, which now appears as if that was the final result. “As we fought for, Ontario families need and deserve relief for the family budget that has been squeezed these last eight years beyond what they can afford,” Hudak said during his concession speech. In June of this year, two major polling firms, Ipsos-Reid and Forum Research, declared major leads for the Ontario Tories, as much as 11 and 15 per cent, respectively, over McGuinty’s Liberals. A slam dunk, probable majority victory for the Progressive Conservatives was in the making. But as the weeks dragged toward October Then, Ontarians—and a few union strangleholds—

6 in this less-than-inspiring election campaign,

decided that more McGuinty was in order. In the

the tables began to turn, pointing toward yet an-

end, the Ontario election results were a mix of

other Ontario victory for the Liberals. And when

shocking and sickening.

the final votes were tallied, the Liberals won

On October 6, the Ontario electorate went

53 seats, enough for re-election, but a drastic

to the polls—in record-low numbers, at 49.2 per

fall from its former 70 seats, as well as a single

cent—and returned incumbent Premier Dalton

seat short of majority rule.

ON THE FRONT PAGE Short leash for Ontario’s McGuinty

Meanwhile, the PCs picked up the Official Opposition with 37 seats, a big jump from the 25 seats it held entering the election. The thirdwheel New Democrats also gained seats, up seven seats to now have 17 representatives at Queen’s Park. In terms of the popular vote, however, the results were much closer, with the Liberals at 37.6 per cent, the PCs at 35.4 per cent, and 22.7 per cent for the NDP.

‘Seatless’ in Toronto It’s a disappointing result for the PCs, who looked to have the win in the bag, but seemingly went off the tracks as the campaign neared its finished line. The key to victory for the PCs was breaking the seal to the lucrative Greater

Toronto Area ridings, where the party has failed to gain any seats in the previous two provincial

For the PCs, the focus now turns to an of-

elections, in 2003 and 2007. Home to more

ficial leadership review to be held at the party’s

than 30 ridings, a handful of victories in Toronto

next caucus meeting, protocol after an election

may have made the difference for the PCs.

loss, to determine whether Hudak will remain as

However, once again, the PCs struck out in the

party leader.

Ontario capital. Perhaps the best summary of the election

Returning with Tim?

results is this: Toronto elected a Liberal govern-

The sense is that although Hudak and his party

ment. The rest of Ontario elected a Progressive

lost an election that should have been nothing

Conservative government—save for speckles of

but a clean-sweep victory, the PCs will focus on

Orange in Windsor-Essex, the Niagara Region,

the positives—notably gaining double-digit seats

and Northern Ontario.

at Queen’s Park and a reduction of McGuinty’s

NOVEMBER 2011 The Canadian Business Journal

pressure for Hudak to better resonate with voters next time around, in terms of more policy substance of his own ideas, rather than a supposed ‘anti-McGuinty, the tax-man’ platform. “It is very clear that the people of Ontario have sent a strong message that they want a change in direction, [and] have put Dalton McGuinty on a much shorter leash,” Hudak said. “[Voters] expect us to focus like a laser on creating good, sustainable private sector jobs. They expect us to rein in runaway government spending, to make smarter choices with their tax dollars, and to ensure that government lives within its means. Time will tell if Dalton McGuinty actually got the message.

Liberals to minority status that will allow for more PC power. There is also hope that a non-confidence vote to defeat the government prior to the next Ontario provincial election could come into

“Although we did not get the result we wanted, I am damn proud of the campaign that we ran across the province of Ontario. We can point to progress tonight.”

play prior to the four-year term expiration in 2015. Hudak said, “I hope we’ll see the Premier

‘Progress’ is the key word here. Hudak will

approach us with a little bit more humility. We

have the opportunity to progress further upon his

recognize we had great gains in the province. We

return to the legislature, looking to build better

had some areas we didn’t gain, but we’re going

consensus, inspire the electorate, and add to the

to fix that and we’ll win next time.”

gains made by the Progressive Conservatives. CB

The assumption here is that Hudak will retain the leadership, though I suspect there is greater

COLUMNIST Roy Green

CBJ SAYS

ROY GReen ta bullying The Workplace Bullying Institute reports “35 percent of U.S. workers report being bullied at work; 15 percent have witnessed it; 68 percent of bullying is same-gender harassment; 58 percent of targets are women; 80 percent of the time, female bullies target other women.” Workplace bullying, according to the WashRoy Green, COLUMNIST

ington State Department of Labour and Industries, can consist of, but is not limited to, unwarranted or invalid criticism, blame without factual justification, being treated differently than the

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

akes on

040

rest of your work group, being sworn at, exclu-

sergeant in a major Canadian municipal police

sion or social isolation, being shouted at or being

service quit his multi-decade career over bul-

humiliated, excessive monitoring or micro-man-

lying he describes in these terms, â&#x20AC;&#x153;until you

aging, being given unrealistic work deadlines.

have actually lived through a bullying situa-

A prevalence study of U.S. workers found

tion you have no idea of the devastation it will

41.4 per cent, or 47 million respondents expe-

cause in your life. While I was being harassed,

rienced psychological aggression at work in the

bullied and threatened I was on the verge of a

last year. Almost 15 million workers experienced

nervous breakdown or a stress induced heart

psychological aggression weekly.

attack and was forced to leave my job to keep

Recent programs I have aired on the issue of bullying both in the workplace and among

my health.â&#x20AC;? As challenging as workplace bullying clear-

preteens and teens resulted in scores of on air

ly is, it is childhood victimization which most

calls and listener emails. A former detective

resonates viscerally.

COLUMNIST Roy Green

CBJ SAYS Recently. Canadians recoiled over the recent suicide of

Another Ontario mother, Lynne, who when

11 year old Mitchell Wilson of Pickering, Ontario,

speaking of her 14 year old son’s friendless life

a child afflicted with muscular dystrophy. Was

and the bullying he faces regularly (her son pre-

Mitchell’s suicide linked to a vicious attack by an

fers to not have even his first name made pub-

older boy who attended the same school? No one

lic), touched so many, including NHL player and

can be certain, but Mitchell’s father told media

enforcer Richard Greenop.

that following the assault his son entered a down-

While Lynne’s son’s primary school graduat-

ward spiral emotionally. The bully was expelled,

ing class was looking forward to a Quebec City

but Mitchell continued to be the target of ridicule.

school trip and prom, he fearfully refused to

Talk of suicide as an escape from bullying is not uncommon. Jenny, a Toronto mother told me her 10 year old son Jacob has spoken of suicide.

attend either. Lynne asked her son to put his feelings to paper. These are his words. •••

NOVEMBER 2011 The Canadian Business Journal

I Am Just a Boy (by a Grade 8 student in Guelph): I am just a boy who didn’t have any choices about the hell I have endured. I am just a boy who couldn’t wait to go to school and learn and be liked. I am just a boy who wanted to make friends and be part of the team. I am just a boy who didn’t get to realize this dream. I am just a boy who would walk around the playground, alone and sad, as I watched other kids play soccer and wished they would call me over to join in - just once. I am just a boy who never got picked for a team and was always last picked in gym class. I am just a boy who was teased for lacking in athletic ability and mocked for the way I run. I am just a boy who desperatedly wanted to share my story but had to suffer in silence for fear of more torment. I am just a boy who had to suck it up and pretend I was fine and didn’t matter. I am just a boy who wanted a friend and confidant. I am just a boy who wanted to be accepted for my differences but liked more because of them. I am just a boy who looked forward to ending my primary school years better than they started. I am just a boy who wanted to go on the year end trip with my classmates feeling a sense of belonging. I am just a boy who just learned that I am not accepted and I don’t belong. I am just a boy who won’t be victimized anymore and will make choices that will not subject me to the constant messages of you don’t matter, or you are a freak. I am just a boy who will leave elementary school the same way I started, wanting a friend, wanting to feel accepted, wanting to be “one of the gang”. I am just a boy who had to be brave and pretend that none of this hurt. I am just a boy who is funny and kind and plays by the rules. I am just a boy who doesn’t understand why subtle yet constant badgering isn’t considered bullying - yet it hurts just as much.

COLUMNIST Roy Green

CBJ SAYS I am just a boy who is tired of waiting for it to stop, waiting for adults to make kids accountable, waiting for a better tomorrow. I am just a boy who is wishing his childhood away because I hear that adults don’t behave that way. I am just a boy who loves life and laughter and all the things that other kids like and for that I am not different. I am just a boy who hopes that one kid understands the impact of being so mean, so unkind. I am just a boy who wonders if they think about the cruel things they say, the cruel things they do. I am just a boy who wonders if they are being mistreated and that is why they are so careless with their words that cut through my soul. I am just a boy who promises to never ever treat anyone like this. I am just a boy who promises to raise children, to be kind and thoughtful and tough enough to stand up to those who don’t. I am - just a boy. ••• These words, read by a distressed mother,

some of my peers would make comments about

created a national outpouring of support. Rich-

sticking up for people. I would love to be a friend

ard Greenop of the Toronto Maple Leafs and AHL

of this boy.”

Marlies is befriending Lynne’s son and hockey he would even in high school, as a popular stu-

What to do to address bullying crosssocietally?

dent and athlete, stand up for the bullied. “I

You can get lost in research and statistical data,

didn’t like seeing it and it always cut straight to

both among the young and in the workplace. Hu-

my core. I would always step in and for that even

man Resources and Skills Development Canada

enforcer though he may be, Greenop explained

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

suggests â&#x20AC;&#x153;one in seven boys between the ages of 4 and 11 bully others and approximately one

ment by parents, schools and/or employers. With the advent of cyber technology bully-

in 20 are victimized by others sometimes or very

ing is no longer limited to personal and direct

often. Approximately one in 11 girls between

encounters. Email, texting and social network at-

the ages of 4 and 11 bully others, while one in

tacks expose the bullied to a never ending series

fourteen are victimized. For both boys and girls,

of encounters with dread.

however, victimization increased with ageâ&#x20AC;?. Statistics and research may be useful struc-

When bullying causes a multi decade senior police officer to resign before qualifying for full pen-

tural tools in formulating anti-bullying policies. I

sion, or a child to contemplate suicide, surely we

suspect however that workplace and youth bul-

each have a responsibility to support the bullied.

lying numbers fail to accurately represent real

We clearly have the opportunity. CB

numbers. Many children and indeed adults will undoubtedly prefer not to admit to being bullied, or being a bully for that matter. Whatever the actual figures, bullying is a scourge and any positive effects of anti-bullying efforts depend entirely on the level of commit-

Roy Green is a contributor to the National Post and the host of the Roy Green Show, a national program weekends on the Corus radio network.

COLUMNIST Â&#x2022; Alex Carrick

CBJ SAYS CBJ SAYS

In hard times, th fault line in our may reside in ou In the upcoming stretch of uncertainty for the Canadian economy, look for the residential real estate sector to be the fault line. More than any other asset, the home provides a sense of well-being, both of a personal nature and financially speaking. It is the bedrock most individuals and families use when assessing their own wealth.

ALEX CARRICK, COLUMNIST

In the fall-2008 to summer-2009 recession, housing starts fell as low as 112,000 units seasonally adjusted and annualized. Then the Bank of Canada lowered interest rates, the resale market picked-up and new home starts recovered about six months later. They currently sit above the 200,000-units annualized benchmark.

NOVEMBER 2011 The Canadian Business Journal

he finances ur homes

046

Let’s put that in a historical context.

+8 per cent year over year, according to the Ca-

In the decade of the 1990s, new home starts

nadian Real Estate Association (CREA).

averaged 150,000 units per year. Between 2002

For new homes in 25 urban centres across

and 2008, they rose consistently above 220,000

the country, year-over-year prices are +2.3 per

units.

cent according to Statistics Canada. It may seem

In other words, new home starts climbed almost 50 per cent between adjacent decades. That’s a huge jump. They were probably too low in the 90s and

paradoxical, but increases in home prices are usually good for demand. Consider the alternative. When home prices are falling, buyers delay purchases in hopes

too high in the 00s. More on the appropriate level

they’ll get even bigger bargains at the bottom of

for housing starts in a moment. So far this year,

the downward spiral. The United States is famil-

new home starts have averaged over 190,000

iar with this pattern. The spate of foreclosures

units through nine months.

accompanied by falling home prices has been

In July, they were 214,000 units and in Sep-

slow to spur much buying interest. Most analysts

tember, after dropping back to 190,000 units in

feel the proper level of Canadian housing starts

August, they were 206,000 units. Home prices

—justified by current demographic trends in

have held up well. In the resale market, they are

family formations and immigration, plus second

COLUMNIST Alex Carrick

CBJ SAYS home allure and replacement needs—lies between 170,000 units and 180,000 units per year. So where is the current excess demand coming from? The single-family market year to date is -14 per cent compared with January to September last year. Row, townhouse and multiple-unit starts, however, are +17 per cent. Condos make up 50 per

home and the Office of the Superintendent of

cent of the multiple-unit market and clearly that is

Financial Institutions (OSFI) has identified where

where the surge is originating.

another major risk may lie for Canadians in a

Three cities presently account for 65 per cent of multiple-unit starts in the country. In two of those

downturn. The recession taught many of us to scale back

three centres, year-to-date starts are out-sized.

on our credit cards and personal borrowing. But

Montreal multi-unit starts are a reasonable +6 per

there is still tremendous potential from home equity

cent year to date; Vancouver is a more spectacular

lines of credit (acronym HELOC).

+39 per cent; and Toronto is an astonishing +56

These are even more attractive based on

per cent. Toronto, with one-sixth of the nation’s

current very low interest rates. If people find them-

population, is currently accounting for nearly one-

selves under undue stress on account of job losses

third of multi-unit housing starts.

and/or income roll-backs, there will be tremendous

Furthermore, the inventory of completed but unabsorbed (i.e., vacant) multi-unit structures

temptation to increase HELOCs. Homeowners won’t be the only ones facing a

keeps rising. The Department of Finance earlier

“crisis in the wilderness”. Banks, wishing to main-

made it harder to obtain mortgage approvals and to

tain revenues, will be able to promote HELOCs at

take out personal loans with property as collateral.

seemingly bargain rates.

But there are other sources of credit tied to the

But those rates are often tied to the prime.

NOVEMBER 2011 The Canadian Business Journal

“

As such, they will be instantly adjustable upwards

That puts a different spin on things. On sev-

when the Bank of Canada begins to tighten mon-

eral counts, there are reasons to be concerned

etary policy again. Most of us can’t lower the princi-

about Canada’s housing market over the next

pal amounts we owe with any great speed and we

year or two. CB

could find ourselves in over our heads. That’s the purchaser side of the housing mar-

Alex Carrick is Chief Economist with

ket. What about the supplier side, especially as it

CanaData, a division of Reed Construction

pertains to condos?

Data (RCD). CanaData is the leading supplier

We often hear the argument that the new

of statistics and forecasting information for the

condo market must be in reasonably good shape

Canadian construction industry. RCD is a division

because 80 per cent of units need to be sold be-

of the global publishing firm, Reed Elsevier.

fore financing can be finalized. This is an argument

For more economic insight from RCD, please

with strong validity when only a limited number of

visit www.dailycommercialnews.com/features/

projects are proceeding. But what if precisely 80

economy. Mr. Carrick’s lifestyle blog is at www.

per cent is the norm when there are a great num-

alexcarrick.com and he would welcome a follow

ber of towers rising up in a region? In effect, within

on Twitter (Alex_Carrick) or Facebook.

each cluster of five buildings, one will stand empty. In 100 such buildings, twenty will be “see through.”

www.alexcarrick.com

Canadian Chamber of Commerce

Major Crisis of Grips the Global

Confidence l Economy By Tina Kremmidas

FINANCE Canadian Chamber of Commerce

One adverse event after another has roiled financial markets, zapped confidence and created an air of uncertainty. As Shakespeare wrote, “When sorrows come, they come not single spies, but in battalions.” The world has witnessed political unrest in countries across the Middle East and North Africa, a spike in oil prices, supply chain disruptions from the Japanese earthquake, the escalation of the eurozone’s sovereign debt crisis, bitter political wrangling in Washington over the federal debt ceiling and Standard & Poor’s decision to downgrade U.S. government debt. Then came the rising drumbeat of weaker than expected economic data—in the second quarter, the U.S. economy grew just 1.3 per cent while Canada’s economy contracted by 0.4 per cent. The recovery in the eurozone has stalled. Emerging-market economies have maintained relatively strong growth but the battle against persistently high inflation, insufficient aggregate

across the world—leadership over brinksman-

demand and weakness in major export markets

ship, cooperation over competition, action over

are beginning to affect their growth as well.

reaction.”

Warning signs are flashing red. Christine Lagarde, Managing Director of the International

The Eurozone Debt Crisis Deepens

Monetary Fund (IMF), said the “world is collec-

In Greece, the recession is deepening and the

tively suffering from a crisis of confidence” but

country’s economy is not expected to recover

“I believe there is a path to sustained recovery,

before 2013. Many of the fiscal and structural

much narrower than before, and getting nar-

reforms agreed upon under the terms of the

rower. To navigate it, we need strong political will

bailout program are proving difficult to imple-

NOVEMBER 2011 The Canadian Business Journal

ment. Growing civil unrest and labour strikes have paralyzed the nation’s economy. Many

levels and prevent a financial meltdown. Worries mount over the stability of European

market participants believe that Greece will

banks that hold large stocks of sovereign debt

default; it’s just a matter of time.

issued by the most fiscally fragile of eurozone

Concerns that a debt crisis cannot be fully

countries. The 17-member eurozone approved

contained caused Italy’s and Spain’s market

an expanded mandate for the €440-billion Euro-

borrowing costs to soar. To diffuse tensions, the

pean Financial Stability Facility (EFSF) to enable

European Central Bank (ECB) intervened, buy-

it to buy sovereign bonds of heavily indebted

ing Italian and Spanish sovereign bonds in the

eurozone nations in the secondary market and

secondary market to keep yields at reasonable

recapitalize weak banks. While this is consid-

FINANCE Â&#x2022; Canadian Chamber of Commerce

NOVEMBER 2011 The Canadian Business Journal

ered an important step in solving the region’s financial crisis, there is concern that the EFSF does not have enough firepower. Markets have speculated that at least €2.0 trillion will be needed to give the fund credibility. The IMF’s managing director summed it up. In Europe “we need urgent and decisive action to remove the cloud of uncertainty hanging over banks and sovereigns. . . . Banks need urgent recapitalization. They must be strong enough to withstand the risks of sovereigns and weak growth. This is key to cutting the chains of contagion. . . . Europe needs a common vision for its future. The current economic turmoil has exposed some serious flaws in the architecture of the eurozone, flaws that threaten the sustainability of the entire project.”

America’s Confidence Badly Shaken The recovery in the U.S. has been slow and erratic. The U.S. unemployment rate remains persistently high. There are 14 million Americans looking for work. The average duration of unemployment has climbed from 17 weeks in mid2008 to 40 weeks. Beyond the headline numbers, more than 8 million workers are classified as “part time for economic reasons” because their hours had been cut back or they were unable to find a fulltime job.

FINANCE Canadian Chamber of Commerce

million foreclosures were initiated in 2010 and a similar number is projected for 2011. It is hardly surprising that in an environment of high unemployment, a beaten-down housing market, wild swings in the stock market and meager economic growth consumers are suffering from a crisis of confidence. Business confidence has also been undermined amid uncertainty about the direction of government policy as it relates to employee health care cost, regulation and taxes. And if things were not bad enough, the fiasco that played out in Washington over the debt ceiling and the decision by Standard & Poor’s to downgrade America’s credit rating The U.S. housing market remains in the doldrums. Nationally, house prices have fallen for six years and analysts expect further

dealt a devastating blow to public confidence adding to the country’s economic malaise. When people are uncertain about the fu-

declines before prices bottom out. More than

ture, they are less likely to spend. In turn, busi-

one in four homeowners has mortgages that

nesses will not hire or invest in plants, machin-

are underwater—that is, their mortgage balance

ery and equipment if they are uncertain about

exceeds the current value of their home. With

future demand. The economy grinds to halt

negative equity, many households cannot

while everyone waits.

refinance their mortgages nor can they sell their Borrowers that are underwater, especially those

Canada Is Not Immune To Global Developments

out of work, are more likely to default on their

The recent bout of negative global economic

mortgages and possibly face foreclosure. 2.5

headlines and growing skepticism that policy-

home to pursue job opportunities elsewhere.

NOVEMBER 2011 The Canadian Business Journal

makers will be able to stem the debt crisis and

egies to stabilize and reduce deficits while being

lay the foundation for a sustainable recovery are

attentive to the implications of fiscal choices for

also weighing on consumer and business confi-

the recovery in the near term.

dence in Canada. To be sure, Canada is vulnerable to develop-

The financial market will continue to swoon as panicked investors take flight, and consumer

ment abroad. Slower economic momentum in

and business confidence will further deteriorate

the U.S. will dampen export growth. Roughly 70

until there is some resolution to the public sec-

per cent of Canada’s merchandise exports are

tor debt strains that are engulfing the eurozone

U.S. bound. The direct impact of weaker Euro-

and the U.S. The fiscal challenges are not insur-

pean growth on Canada is relatively modest—

mountable. The key is for policymakers to act

roughly nine per cent of Canadian exports are

with conviction and urgency.

headed for Western Europe. However, indirect

In Canada, policymakers should always be

effects could be significant—loss of confidence,

looking for ways to enhance the flexibility of

stock market volatility as investors become less

Canada’s economy and improve its dynamism

tolerant to risk, tightening of financial condi-

and performance. We should break down all

tions, and falling commodity prices as global

internal barriers to trade and labour mobility, re-

economic growth slows.

move work disincentives in the income-support system, eliminate burdensome regulatory proce-

The Path Forward

dures and minimize tax administration and com-

In light of today’s challenges, the G20 nations

pliance costs. We should continue to embrace a

must honour their pledge to do all that is neces-

prudent fiscal framework, trade openness and

sary to ensure that banks are adequately capi-

a culture of innovation. This will ensure that

talized and have sufficient access to funding to

Canada’s economy is able to adapt to changing

deal with current risks, and that they fully imple-

circumstances and can withstand economic and

ment financial reforms—including Basel III capi-

financial shocks. CB

tal measures—along the agreed timelines. It is imperative that the G20 develop and communicate clear and credible medium-term strat-

Tina Kremmidas is the Chief Economist of the Canadian Chamber of Commerce

The Independ Take a stand on who By Talar Beylerian

dent Board: sits in your chair

058

LEGAL

LEGAL Take a Stand on Who Sits in Your Chair

Amid market share losses to competitors and technical failures that have angry BlackBerry users taking to the Twittersphere to vent their frustration, Research in Motion Limited (RIM) faces mounting pressure from investors to shake up its corporate structure. Jaguar Financial Corporation (Jaguar), a shareholder of RIM backed by institutional shareholders who together with Jaguar own eight per cent of all issued and outstanding shares of RIM, recently called for changes in RIM’s corporate governance practices, including a call for the elimination of “a culture of management dominance” and the development of “a collaborative partnership relationship between management and the Board.”

One of the most immediate changes being sought is the appointment of an independent chair to the board of directors. Currently, RIM’s co-chief executive officers (CEOs) Mike Lazaridis and Jim Balsillie are both co-chairs at RIM. In advance of the annual meeting of the shareholders on July 12, Northwest & Ethical Investments LP (NEI), a shareholder of RIM, proposed a separation of the roles of chair and CEO, a proposal endorsed by proxy advisory firms Glass Lewis & Co., LLC and Institutional Shareholder Services Inc. On June 30, RIM announced that NEI agreed to withdraw the proposal. In return, RIM agreed to establish a committee of independent directors whose mandate would include studying the role of a lead independent director versus a chair and determining “the

NOVEMBER 2011 The Canadian Business Journal

business necessity” for RIM’s Co-CEOs to hold

but does not contain a specific provision for the

the co-chair position.

office of the chair of the board.

The recent critique of the co-CEO, co-chair

The Corporate Governance Guidelines of

structure at RIM highlights the inherent problems

National Policy 58-201, adopted by Canada’s Se-

with this type of leadership structure.

curities Regulators, set out guidelines for report-

There are few statutory requirements with

ing issuers to consider in developing their own

respect to the position of the chair of the board

corporate governance practices. The Guidelines,

of directors. The “chair of the board” must be

which are not meant to be prescriptive, suggest

a director of the corporation. The Canada Busi-

that the chair of the board should be an indepen-

ness Corporations Act (CBCA) does not contain

dent director and where this is not appropriate,

a specific provision for the office of the chair of

an independent director should be appointed to

the board although “chairperson of the board of

act as “lead director.”

directors” is included in the definition of “officer”

Whether it is appropriate to combine the po-

under sections 1 and 126 of the CBCA. Similarly,

sitions of CEO and chair has been the subject of

the Business Corporations Act (Ontario) includes

considerable debate. On the one hand, proponents

the term “chair of the board of directors” in the

of the split model argue that a board chaired by

definition of “officer” under section 1 of that Act

the CEO cannot effectively monitor and assess

LEGAL Take a Stand on Who Sits in Your Chair

management’s performance and will be faced with an inherent conflict of interest. On the other hand, others argue that vesting one individual with both the positions of CEO and chair ensures that the individual has nowhere to hide. Furthermore, some critics of the split model argue that a non-executive chair might inadvertently undermine the CEO (or vice versa) as the fractured leadership can create confusion as to who leads the company and who leads the board. For effective corporate governance, the board of directors should have a voice indepen-

PHOTO CREDIT: sgm / Shutterstock.com

dent from management. The board of directors is entrusted to oversee the conduct of business and supervise management. To fulfil this role, the

and the lead director can impact the compara-

board must be able to monitor, actively scrutinize

tive effectiveness of the roles. The “chair of the

and question management.

board” title bears a certain weight and remains a

In order to ensure that the board is able to

hierarchical symbol of leadership to other board

act independently, appropriate structures, pro-

members, shareholders and management. The

cedures and policies should be put in place. One

lead director may struggle to get out from under

obvious solution is to clearly separate the office

the shadow of the CEO-chair.

of the chief executive from the office of the chair

There is increasing recognition in the

of the board. In the alternative, if this separa-

U.S. and Canada that the appointment of an

tion is not appropriate and the chief executive

independent chair is an important step toward

officer and the chair of the board are the same

the development of an independent board. Of

person, the board can assign responsibility to an

course, merely splitting the role of the chair

independent “lead director.” One of the problems

and the CEO does not guarantee effective

with the latter approach is that overlap between

independent oversight by the board. The key is to

the responsibilities of the chair of the board

strengthen the capacity of the board to facilitate

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

a constructive relationship with management

management and the board will vary from one

that is grounded in a mutual understanding

company to the next and may even vary within

and appreciation of the respective roles of

the same company from time to time in response

management and the board. Aside from splitting

to changing circumstances.

the roles of the chair and the CEO, other ways

The content of this article is intended to

to achieve this goal include conducting informal

provide general information for the reader and is

meetings of the board on a regular basis without

not intended as advice or an opinion to be relied

the presence of management (such as an in-

upon in relation to any particular circumstance.

camera session without management present

For specific applications of the law to a particu-

at the end of quarterly board meetings) and the

lar set of circumstances, the reader should seek

development and communication of position

professional advice. CB

descriptions for the board and management which delineate the limits of managementâ&#x20AC;&#x2122;s

Talar Beylerian practices law as an associate in

responsibilities and authorities.

the litigation group with McLean & Kerr LLP, a

The appropriate division between the

law firm based in Toronto.

No. 1

When Forbes released its annual ranking of global economies, it showed the rest of the world what we already know: Canada is the best country in the world to do business. Canada ranked No. 1 on the list of the world’s best places to do business, ousting Denmark from the top seat, citing improvements to our tax system, easy administrative policies, investor protection and the best banking systems in the world. Canada’s substantial trade, particularly in energy including oil, gas, uranium and electric power, and great natural resources led to solid economic growth for most of the past 18 years. The business magazine cited our “affluent, high-tech industrial society in the trilliondollar class” as one of the reasons to push Canada up from last year’s No. 4 spot, and lauded our banking system. “Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus,” said the ranking. “Canada’s major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector’s tradition of conservative lending practices and strong capitalization.” CB

FINANCE Â&#x2022; Dominion Lending Centres

066

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

FINANCE

Dominion ending Centres Canadaâ&#x20AC;&#x2122;s pre-eminent mortgage company

Gary Mauris, Dominion Lending Centres President and Co-founder

FINANCE Â&#x2022; Dominion Lending Centres

Dominion Lending Centres President and Co-founder, Gary Mauris, is as energetic and passionate as the companyâ&#x20AC;&#x2122;s national spokesperson, Don Cherry.

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

Gary Mauris, Dominion Lending Centres President and Co-founder

FINANCE Dominion Lending Centres

It was exactly these traits that grew Mauris’

Amazed at the amount of high-profile mort-

national mortgage and leasing company, Domin-

gage brokers in the U.S., when he asked Kayat to

ion Lending Centres, into the country’s largest

name his competitors in Canada, Mauris did not

independent mortgage company in less than

recognize even one company name. “There was

five years.

no national company with a focus on brand build-

Entrepreneurial at heart, Mauris was vaca-

ing for something so important to the consumer

tioning at his Palm Springs home when an idea

as finance, which was the motivation behind

came to him about a new business venture.

starting Dominion Lending Centres in 2006.”

It was there that the idea to start a mortgage company was (literally) at his feet.

Making mortgages easy

“I noticed that the mail I received was filled

With over 2,000 mortgage professionals of-

with advertisements for several different mort-

fering free expert advice to clients through-

gage companies. Curious, I started doing my

out Canada, Dominion Lending Centres is

homework and learned that 80 per cent of mort-

the leading national mortgage and leasing

gages done in the U.S. were being completed by

company in the country, helping Canadians

a U.S. mortgage broker.”

simplify their mortgages and streamline their

Realizing what works in the U.S. often translates well into Canada, Mauris partnered with Chris

overall finances. “Today, we are the No.1 company in the

Kayat, the largest Royal LePage owner in Western

country,” says Mauris. “We are dominating

Canada at the time, who also owned a small mort-

market share, we now have 390 offices across

gage company primarily to service mortgage trans-

Canada, and we have access to dozens of

actions through his Royal LePage offices.

banks, credit unions, trust companies and

“Since we are the No. 1 mortgage provider in Canada, we work on behalf of the lender to provide Canadians with the very best options to meet their mortgage financing needs.”

NOVEMBER 2011 The Canadian Business Journal

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FINANCE Dominion Lending Centres

other lending institutions. It’s been a real fun

(Mortgage Brokerage Firm) at the 2008 CMP

ride and certainly hasn’t been without tons of

Canadian Mortgage Awards (dubbed the

effort, passion and hard work.”

Oscars of the mortgage brokering industry),

Whether Canadians are looking to buy a

and has achieved incredible growth. At the

home, renew a mortgage, purchase a rental

2009 CMAs, Dominion Lending Centres

property or vacation home, or lease business-

received the Best Branding Award, and again

related equipment, Dominion Lending Centres

in 2010, with the addition of the prestigious

has a product available that will fit the unique

title of Mortgage Brokerage of the Year and

needs and financial situation of each client.

Best Advertising. Dominion Lending Centres

Success has come quickly to Dominion

was also ranked on the PROFIT Hot 50 list of

Lending Centres, named the Best Newcomer

Canada’s emerging growth companies by Profit

NOVEMBER 2011 The Canadian Business Journal

WE RECOMMEND CUSTOMERS USE DOMINION LENDING CENTRES

FINANCE Dominion Lending Centres First National_p2.pdf 1 10/28/2011 3:12:29 PM

First National would like to congratulate Dominion Lending Centres.

CMY

Best of luck and continued success from Canada’s #1 Mortgage Broker Lender.

fi rs t n at i on a l. ca

Delivering Ser vice. Creating Solutions. Building Success. First National is licensed under the Mortgage Brokers, Lenders and Administrators Act 2006 (Ontario) Licence No. 10514

magazine for two consecutive years, and Mauris

and rates and faster turnaround times. “Because

himself was a finalist for the 2011 Ernst & Young

we send these banks so much business, they

Entrepreneur of the Year award.

automatically give us better rates and often more

“This year, our company will fund $11.5 billion in mortgages,” says Mauris. “Out of all

favourable terms.” “That equals 65,000 mortgages this year

mortgage companies, we hold 16 per cent mar-

across Canada through our company. Since we

ket share Canada-wide and, in some markets,

are the No. 1 mortgage provider in Canada, we

over 30 per cent market share. We are growing

work on behalf of the lender to provide Canadians

today faster than we ever have.”

with the very best options to meet their mortgage

This volume, of course, is part of Dominion Lending Centres success. By sending $11.5 bil-

financing needs.” Mauris credits some of this growth to a

lion in mortgage business a year to the banks

customer who is now highly-educated in the value

and other financial institutions, Dominion Lend-

of using a mortgage broker. “I see it all the time

ing Centres is offered better mortgage products

where people have been lifelong customers of a

NOVEMBER 2011 The Canadian Business Journal

certain bank, and have up to three mortgages there, plus a business account, their RRSP, and typically in an hour I can beat their best negotiated rate by at least half a point. It’s like being able to offer the client wholesale versus retail mortgage rates.” Through this high level of mortgage volume, Dominion Lending Centres has developed a good working relationship with the banks. “I’m going to send Scotiabank $2 billion in business this year and CIBC $2 billion in business this year, so when it comes from Dominion Lending

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Centres, the banks provide a product that lets us bring customers in their doors. We underwrite and package the deal, and all they have to do is fund it. Because of that they give us better rates, faster turnaround and better service.” For mortgage consumers, Dominion Lending Centres offers choice, certainty and savings. Mauris credits his company’s success to the fact that mortgages are about much more than rates—they’re also about providing expert mortgage advice catered to each borrower’s needs. “We have to compete, no question, and we always will,” he says. “But it’s about choosing the right mortgage product for your situation. In some cases we look at

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FINANCE Dominion Lending Centres

Don C endor

PHOTO CREDIT: Dave O/ 61-mclean-cherry-postgame2

loans, etc., and create a consolidated payment

troubled the United States. His expertise in the

package, which can save you up to $800 a month

mortgage market is so valuable that he was

in throwaway interest.”

handpicked to be on a select team of 15 people

And, especially in a more challenging economy, throwaway is the last way you want to

to work with Canadian Minister of Finance Jim Flaherty.

describe your savings. That said, Mauris believes

During the budgetary consultation, Mauris

Canada will avoid the economic pitfalls that have

“acknowledged the Finance Department’s vital

NOVEMBER 2011 The Canadian Business Journal

Cherry celebrity orsement deal Dominion Lending Centres signed Don Cherry

Canadian public at large. He was also ranked in

to a multi-year celebrity endorsement deal last

the May 2010 issue of Reader’s Digest as one of the

year and has seen tremendous growth as a result.

most trusted Canadians.

No other Canadian mortgage brokerage has ever done anything like this before.

“Hey, Hey! I don’t know mortgages, but my friends at Dominion Lending Centres know,

Don Cherry is by far the most influential

and they’ll get you the best rate!” exclaims

commentator and is one of the most recognizable

Cherry as the perfect hand-off happens in the

people in Canada. He’s best known for being the

first TV commercial.

‘flamboyant yin’ to Ron MacLean’s ‘yang’ on the popular Coach’s Corner segment on Hockey Night

Cherry knows a lot about many things, but

in Canada, the most watched sports telecast in the

when it comes to mortgages, he’s stumped. The

country. Cherry was recently named one of the Top

opportunity here is to address that Cherry is just

10 Canadians of all-time in the nationwide CBC

like many Canadians who don’t know about the

program The Greatest Canadian, which polled the

benefits of using a mortgage professional.

role in providing emergency mortgage liquidity dur-

ness. By focusing in on an underserved market, not

ing the credit crisis, and also encouraged the gov-

only has he created a thriving business, but also

ernment to consider an alternative to eliminating

offers an important service for customers unsure of

35-year high-ratio amortizations, whereby a borrow-

the best way to navigate through complex financial

er may have to qualify at a 30-year amortized pay-

arrangements. CB

ment but retain the right to a 35-year amortization.” Mauris exemplifies the best in Canadian busi-

www.dominionlending.ca

078

Landry Morin

Conscientious and conservative investment management For financial security in turbulent times, a thought out and balanced investment portfolio can result in peace of mind. Montreal-based investment manager Landry Morin has built a reputation for prudent financial management with years of proven discretionary portfolio management for private clients, pension funds, foundations and endowment funds.

FINANCE

FINANCE Landry Morin

Jean-Luc Landry, President

Richard Morin, Portfolio Manager and COO

Landry Morin was founded in 2002 by Jean-

“Landry Morin does pure investment manage-

Luc Landry and Richard Morin, Principals,

ment and none of the back office work, so we

on the premise of delivering optimal returns

don’t touch the assets of the client,” says Landry.

on personalized investment policy tailored

“We selected TD because it is the largest, possi-

specifically to the circumstances, wants, needs

bly most efficient firm in Canada.”

and comfort of the client. In that time, Landry Morin grew to be a mid-size firm in Canada. In a time when many people are question-

Landry Morin essentially runs two businesses under one umbrella: Landry Morin Funds, a family of equity funds available

ing the best approach to finance management,

through investment advisors in Quebec and

Landry Morin has a sober and proven approach

Ontario as well as a hedge fund which exploits

to navigating—and explaining—international

a proven quantitative systemic strategy man-

markets. For added security, the assets of Landry

aged internally, and diversified and tailored

Morin’s clients are held by TD Waterhouse In-

portfolios comprised of domestic and interna-

stitutional Services, a subsidiary of TD Bank.

tional exchange traded funds.

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For one, how does Landry Moring protect its

I find that clients find it more difficult as time

clients and their investments? “Our hedge fund

goes by with these deep cycles we have. But it is

has done well, especially in the summer during

more fear than reality. In this downturn we are

that difficult period,” says Morin. “That is what it

down five per cent, but people pick up the paper

is designed for and that is what it did.”

and think their portfolio has just collapsed.”

Typically, Landry Morin’s 150 direct clients

“Two factors lead us to believe there is a

are high net worth individuals, endowment funds

good chance this bear market will be over by

and pension funds.

year-end,” reads Landry Morin’s Third Quarter

Asked about the Canadian markets, Landry

Review. “First, an analysis of the 10 bear mar-

says the domestic economy is not as fragile as it

kets since the 1950s shows that once the stock

is represented in media, and feels concern for cli-

market has fallen 20 per cent, two things can

ents who are understandably anxious about the

happen: the market will continue to drop for a

state of affairs. “I find it difficult for our clients,”

total loss of 50 per cent or it will decline on aver-

he says. “Maybe I am more patient than average,

age another five per cent to 10 per cent and then

FINANCE Landry Morin

Landry Morin’s investment philosophy is based on three main principles of modern finance:

years of experience, Landry Morin has all the expertise required to manage the three aspects of sound asset allocation: • Establish a strategic allocation based on the client’s investment policy and objectives

1. Index management outperforms traditional security selection

• Rebalance the portfolio periodically when market fluctuations cause it to stray from the target allocation

The majority of individual and institutional

• Make tactical changes to preserve capital

investors are now investing a portion or all

and to take advantage of asset classes that

of their portfolios on an index basis for the

are considered undervalued or that offer

simple reason that this approach offers better

better potential

returns at lower costs. 3. Psychology plays an important role in For almost a decade, Landry Morin has been

financial markets

a pioneer in using exchange-traded funds for private clients. We choose from among

Financial markets and the prices of publicly

hundreds of exchange-traded funds to create

traded stocks are occasionally affected by

the optimal portfolio.

irrational investor behaviour. Research clearly shows that a purely quantitative, disciplined

2. More than 90 per cent of a portfolio’s

and systematic approach allows investors

return is explained by asset allocation

to take advantage of market distortions and generates superior returns.

Over the long term, a portfolio’s returns are

Landry Morin Funds exploit these market

explained essentially by its allocation among

anomalies to offer superior returns and

the various asset classes.

contribute significantly to the performance of

With each partner having more than 25

a diversified portfolio.

NOVEMBER 2011 The Canadian Business Journal

“Our hedge fund has done well, especially in the summer during that difficult period,” says Morin. “That is what it is designed for and that is what it did.” recover quite quickly. The conditions that would lead to a total decline of 50 per cent are not present because equities were not expensive at the peak and there is little chance that the potential recession will be very severe.” Landry Morin uses a mix of exchange traded funds and its own proprietary funds to construct diversified and balanced portfolios that can withstand the ups and downs of financial markets. “A typical balanced portfolio will hold close to 50 per cent in fixed income securities and assets that are not correlated with the stock market,” says Morin. “This constructs a conservative portfolio for the client. 20 per cent of our private client assets are invested in Landry Morin funds, the other 80 per cent are invested in broadly diversified corporate and government bonds and stocks in Canada, U.S., international and emerging markets.” CB www.landrymorin.com

Ed Devlin (Centre), Executive Vice-President and head of Canadian portfolio management, with the canadian team

084

Preparing for the New Normal

FINANCE

Pacific Investment Management Company, LLC

photo by Bill Gallery

FINANCE PIMCO 86 Ed Devlin, Executive Vice-President and head of Canadian portfolio management

Global investment management and solutions firm Pacific Investment Management Company, LLC, or PIMCO, opened its doors

propriate investment solutions.” Fixed income investments have broad appeal

in Canada in 2004. This addition, the world’s

The historical roots of PIMCO are funda-

largest mutual fund, with assets of more than

mentally a fixed income investment house, and

$1.3 trillion worldwide, brought a formidable

while the company has broadened its capabili-

competitor to the mutual fund market.

ties, PIMCO is globally recognized for its results

PIMCO’s mantra is straight forward, to be

in this forum. Started on the sunny shores of

the global investment authority for retail and in-

Orange County, Calif., by three men with a view

stitutional investors. Stuart Graham, President

to hire the best and brightest and revolution-

of PIMCO Canada, tells CBJ exclusively that this

ize the markets, fast forward 40 years, PIMCO

means “to take a needs based approach to

has $1.3 trillion (yes, with a T) in global assets,

whatever [the investor’s] needs might be, and

$9.7 billion of which are in Canada, making it

increasingly in today’s market those are more

one of the world’s most successful companies.

complicated needs, and we align that with ap-

Typically, investors have an appetite

NOVEMBER 2011 The Canadian Business Journal

Global investment management and solutions firm Pacific Investment Management Company, LLC, or PIMCO, opened its doors in Canada in 2004. This addition, the world’s largest mutual fund, with assets of more than $1.3 trillion worldwide, brought a formidable competitor to the mutual fund market. PIMCO’s mantra is straight forward, to be the global investment authority for retail and institutional investors. Stuart Graham, President of PIMCO Canada, tells CBJ exclusively that this means “to take a needs based approach to whatever [the investor’s] needs might be, and increasingly in today’s market those are more complicated needs, and we align that with appropriate investment solutions.”

photo by Bill Gallery

FINANCE PIMCO

Fixed income investments have broad appeal

bonds, or fixed income investments, in tumultu-

The historical roots of PIMCO are fundamentally

ous economic times, when low risk and low re-

a fixed income investment house, and while the

ward is an appealingly safe bet. With a top down,

company has broadened its capabilities, PIMCO

macro-economic framework, PIMCO’s long-term

is globally recognized for its results in this forum.

perspective on the market makes its funds at-

Started on the sunny shores of Orange County,

tractive to the conservative investor.

Typically, investors have an appetite for

Calif., by three men with a view to hire the best and brightest and revolutionize the markets, fast forward 40 years, PIMCO has $1.3 trillion (yes, with a T) in global assets, $9.7 billion of which are in Canada, making it one of the world’s most successful companies.

“If we can get that top down thesis correct, then we are going to make appropriate investment decisions for investors,” says Graham. “We dub this framework ‘The New Normal’.”

NOVEMBER 2011 The Canadian Business Journal

It has been a pleasure for the All-Win/Robitaille team to work with the Pimco Toronto team on their office relocation and build out. We appreciate the opportunity to offer our Design/Build turnkey services to Pimco and with our single source one point of contact project delivery method we were able to complete the project on time and on budget with attention to quality and detail. With our design and construction as one company we are able to successfully complete Design/Build and Turnkey projects for such clients as. Facebook, Linked IN, Dundee Precious Metals, Ontario power authority, and a larges number of Design/Build turnkey projects for Rio-Can a Toronto builder and developer and the National Hockey League to name a few. At All-Win/Robitaille we have the confidence,experience and ability to complete any project large or small and to provide added value for our customers and clients.

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The framework of The New Normal is that the current economic situation is not your garden variety recession and recovery; rather, what

markets are experiencing a breakout phase of their development.” The market and investors trust PIMCO’s abil-

we are seeing is a fundamental and durable

ity to understand the macroeconomic framework,

changes to the investing landscape.

and to translate that into an investment strategy

“Key reasons behind these changes are

which, over business cycles, has produced mean-

related to deleveraging in the market and now

ingful alpha for clients. “We earned that $1.3 tril-

both businesses and household consumers

lion the old fashioned way, namely we have never

trying to dig themselves out of high debt rates,”

merged with anyone, but have earned business

says Graham. “Reregulation in the market place

one investor at a time.”

is one factor. Another is an increasingly multi-

When asked to comment on the turbulence

speed economy, meaning developing markets

in the markets of late, Graham replies, “These

are in this cycle of very low growth, while emerging

last eight weeks has been a more challenging

FINANCE PIMCO

NOVEMBER 2011 The Canadian Business Journal

investment environment than we have seen in

Eight new Canadian funds

the previous 10 months. We have seen extraor-

At the beginning of this year, PIMCO launched Ca-

dinary events, not the least of which is the crisis

nadian registered mutual funds, offering diverse

in Europe and the U.S. credit ranking down-

investment solutions for client’s particular needs.

grade which make it difficult to invest in that

Ranging from Short Term Bonds, to Total Return

period. Fundamentals are not really what are

Bond Funds, and Global Balanced Funds, these

driving the market and that has created noise in

funds are an innovative suite of investment solu-

the portfolio lately.”

tions, created within the framework of The New

Despite these truths, Canada has been sheltered somewhat by these extraordinary

Normal. Investors are welcomed to review PIMCO’s

events. In an essay entitled A Practical Guide

literature or visit its website, or Canadian office in

to Liability-Driven Investing, PIMCO’s Ed Devlin,

downtown Toronto. CB

Executive Vice-President and head of Canadian portfolio management, states, “Since the financial crisis, we have found that many investors are more concerned about financial repression: a process by which government policies are designed to keep real rates of return low in order to help countries to reduce their debt-toGDP over time by providing savers with a poor inflation-adjusted rate of return...In Canada, we expect less financial repression than in the U.S. or United Kingdom. At the same time, Canada appears to be a destination of choice for much of that offshore capital trying to escape financial repression. In this New Normal environment, we expect to see low real yields while breakeven inflation expectations (BIE) remain well anchored.”

www.canada.PIMCO.com

Man

FINANCE

092

HUB Financial

naging General Agency

FINANCE HUB Financial

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

Originating from the acquisition of four separate operations by its parent company HUB International, HUB Financial has grown over the last 12 years to become one of Canadaâ&#x20AC;&#x2122;s largest and leading Managing General Agencies (MGA). The initial challenge HUB Financial faced during its infancy was the integration of four separate MGA operations, each with its own leadership, distinct culture, and unique market, to become one cohesive and well-oiled machine, with its own identity, brand and value proposition.

FINANCE Â&#x2022; HUB Financial

Standard Life celebrates HUB Close partnerships, like the one Standard Life enjoys with HUB Financial, help make our number 1 goal possible: To help our customers look forward with confidence and optimism. Standard Life is a long-term savings and investment company that has been doing business in Canada for 178 years. Headquartered in Edinburgh, Scotland, with around 6 million customers worldwide, Canadian operations boast 1.4 million, including group insurance and retirement plan members.

The Standard Life Assurance Company of Canada

October 2011

ÂŠ2011 Standard Life

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal

To find out more about Standard Life financial products, contact HUB Financial or visit

www.standardlife.ca

FINANCE HUB Financial

John Lutrin, Chief Marketing Officer, HUB Financial

As an integrated unit, HUB Financial estab-

existing broker base of HUB Financial. Existing

lished its own objectives, goals, mission and,

brokers, who are the direct clients of HUB Fi-

perhaps most important, its own identity. Today,

nancial, are served in ways that enhances their

the company has emerged as one of Canada’s

productivity, thus boosting organic growth. This

most recognized, industry-leading MGAs.

is achieved by providing brokers a robust offering

John Lutrin, Chief Marketing Officer with

of resources, tools and expertise that enables

HUB Financial, was passionate about the com-

brokers to conduct their business at maximum

pany when describing the enormous growth

efficiency. It also provides brokers a full-service

achieved by HUB Financial since the company

back-office platform allowing brokers to maintain

came together in 1999. He explains the parallel

their focus on serving clients rather than being

approach of two key growth strategies—organic

caught up in administration and processing.

growth, and growth by acquisition—both key elements of HUB Financial’s growth strategy.

Growth through acquisition, coincidentally how the company originally began, has continued, and HUB Financial has aggressively pursued

Organic growth

opportunities for further growth through finding

Organic growth drives new business from the

entities that are well suited for acquisition.

NOVEMBER 2011 The Canadian Business Journal

PARTNERS

IN BUSINESS PARTNERS IN SUCCESS

“We look for entities that we believe would be the right fit for our corporate culture and for our production and business objectives,” Lutrin said. “This has been our strategy and will continue to be so.” The goal is to continue providing a valuable offering, so as to satisfy existing brokers as HUB Financial continues to enhance their productivity, as well as attracting new customers to HUB Financial by making its value proposition known in the industry. Lutrin summarized, “That is the

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vision and that’s how we seek out our growth.”

Steady in volatile markets HUB Financial is well positioned through its business streams, but perhaps one area that has

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100 FINANCE HUB Financial

been volatile to economic conditions in recent

of segregated funds, which is such a key com-

years has been the investment side of the busi-

ponent of the investment products that we of-

ness. While HUB Financial is primarily an MGA, it

fer,” Lutrin explained. “The more uncertain and

also serves as a Mutual Fund dealership through

volatile the economic climate is, the more aware

HUB Capital. The investment focus of HUB Finan-

of capital protection advisors become, making

cial however is tied to segregated funds, “the life

segregated funds an attractive alternative to

insurance industry equivalent of mutual funds”.

investors seeking greater protection.”

HUB Financial is noted for its focus on the protec-

Ensuring that brokers and customers recog-

tion aspects of segregated fund offerings, where

nize the value proposition offered by HUB Fi-

it educates brokers on the product selection

nancial is key to organic growth for the company

process for clients based on suitability and client

moving forward. Customer satisfaction is of high

profile. Built-in protections and guarantees make

importance to HUB Financial, and the company

the appetite for segregated funds more appeal-

works to ensure that it adds value and efficiency

ing in uncertain economic times.

wherever possible. As an MGA, HUB Financial

“In some ways, a more volatile market is really an opportunity for us to highlight the value

works between the advisor and the life insurance company, often adding value with leading-edge

NOVEMBER 2011 The Canadian Business Journal 101

fact on the “bleeding edge” because, as pioneers to the managing general agency industry, HUB Financial has cut its teeth and has taken the knocks of trial and error. He summarized, “We believe it is really important for us to be at that leading edge, rather than being a follower.” HUB Financial is always seeking out new and innovative ways to improve efficiency and increase value to brokers. “Sometimes it hurts us in the short run, but we stay focused on our strategic vision,” Lutrin said.

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technology. Lutrin joked that HUB Financial is in

Customer satisfaction Along with broad product access in the Life, Living Benefits and investment arenas, HUB Finan-

years ago at the outset, HUB Financial contin-

cial offers guidance and expertise to brokers so

ues to build and increase its efficiencies and its

that the correct and most suitable options are

offerings, ultimately attracting more advisors

selected by the broker. This is done on a case by

and more business, building momentum for the

case basis, where HUB Financial’s team of spe-

company to keep moving forward.

cialists is on hand for their brokers to guide and

Lutrin concluded, “The industry is kind of at a

advise. Lutrin summarized, “We maintain consis-

threshold in terms of where it is headed. We want

tency. The HUB Financial brand now contains an

to maintain a competitive edge by being the MGA

identity that stands for consistency in support, so

that has the strength and the resources available to

the brokers have an expectation of what they can

not only survive in a new era, but thrive.” CB

expect from HUB Financial.” Becoming a single brand as HUB Financial, the leverage is noticeable. Now, rather than being five fragmented companies as it was 12

www.hubfinancial.com

102

Timbercre Managem

Investing in real e

eek Asset ment

estate

FINANCE

104 FINANCE Â&#x2022; Timbercreek Asset Management

NOVEMBER 2011 The Canadian Business Journal 105

Beginning in 1999, the focus of Timbercreek was to build a portfolio of Canadian apartment buildings, based on the company’s philosophy of direct ownership. A philosophy of active management is followed by the company’s investors, a style Timbercreek has also carbon copied over the years.

106 FINANCE Â&#x2022; Timbercreek Asset Management

NOVEMBER 2011 The Canadian Business Journal 107

Congratulations to

Timbercreek Asset Management On Their Success

Meeting Client Needs. Exceeding Resident Expectations.

www.coinamatic.com

“With our initial focus of acquiring apartment

portfolio with the hopes of adding increased

buildings in Canada, it was our belief that there

value to these properties through improved

was an ability to buy buildings that were not

management and operations. Through this,

being managed to their fullest potential,” Blair

Timbercreek built an asset and property

Tamblyn, President and CEO of Timbercreek As-

management business to run the buildings

set Management, told The Canadian Business

and assets under its ownership, a daunting but

Journal. “Then we could build a team to improve

worthwhile responsibility.

those assets, create value and generate predictable cash flow at the same time.”

“Most people typically outsource the management component because it is quite labour intensive and not the most glamorous busi-

High value in high rise

ness, but we felt strongly that it was the only

For the first five years of the company’s

way we could be consistent with our philosophy

operation, the focus was almost exclusively

of active management,” Tamblyn explained.

on adding Canadian apartments to its

In hindsight, Timbercreek now attributes its

108 FINANCE Timbercreek Asset Management

efforts in its beginning years of operation to what

Focus on real estate

now serves as the company’s successful founda-

The beginning years of the company—acquir-

tion. Like the assets it serves, a solid foundation

ing, maintaining, and operating Canadian apart-

is crucial to success.

ment buildings—created the revenue required

Vertical integration has also played a no-

for Timbercreek to then make the next step.

table role in the long-term success of Timber-

Revenue from this allowed the company to seek

creek. Unlike many other asset management

other opportunities of potentially larger revenue

firms, Timbercreek sees through its asset

flows, ultimately leading to the development of

investments in terms of the beginning acqui-

the lending arm of Timbercreek. The company

sition through to the operation of individual

has worked to develop this secondary—but just

buildings, something that has provided plenty

as important—core competency of its operations.

of comfort for external instituational investors,

Revenues from asset management of apart-

which have now developed a strong following

ments have allowed Timbercreek to further explore

with Timbercreek.

the real estate industry. As such, Timbercreek

NOVEMBER 2011 The Canadian Business Journal 109

began acquiring and managing real estate as well,

Still, this doesn’t mean that Timbercreek

expanding its team to have the capacity to originate

subscribes to the philosophy that bigger is bet-

debt across Canada. Specifically, Timbercreek does

ter. In fact, the opposite is true of the company’s

not pursue existing marketplace mortgages, but

philosophy. Timbercreek’s assets under manage-

rather seeks out lending opportunities that allows

ment are built upon its primary focus of engaging

the company to create a mortgage it is underwriting

in the businesses in which it is already involved,

to the borrower, and the borrower’s assets, to be

continuing to execute the responsibilities in

used as loan securities.

which the company has already endeavored. Fur-

As an active manager, Timbercreek promotes

ther growth in the future is expected and is not

direct ownership of real estate. Tamblyn added,

ruled out. Tamblyn said, “As the team grows and

“Active management is the interaction and direct

as we continue to have comfort in our ability to

relationship with the borrower. That was incre-

look at new opportunities, I think we will [grow],

mentally the focus for the next two to three years.

to the extent that [these opportunities] are com-

We built out a successful business from there.”

plementary to what we are doing now.”

110 FINANCE Â&#x2022; Timbercreek Asset Management

Timbercreek provides investment opportunities

operates 10 offices across Canada, which allows

to individuals and institutions looking for predomi-

the company to deploy its active management

nantly yield with low volatility, something that real

philosophy as it is in close proximity to its

estate investment provides as it focuses on long-

properties under management.

term predictable cash flow. Strategies developed by Timbercreek allow the company to make invest-

Dealing with the economic downturn

ments through equity and through debt to enable

Investors are impressed with the stability that

predictable cash flow that is ultimately developed

Timbercreek has provided in recent years of

within the real estate sector. Timbercreek identifies

market volatility. In fact, Timbercreek has grown

valuable investment opportunities in the global real

by 50 per cent in the last few years. The com-

estate industry and then strategizes how best to

pany remained successful during the economic

invest in these areas.

downturn, most impressively by showcasing its

Itâ&#x20AC;&#x2122;s a four quadrant strategy for Timbercreek: Based on a national platform, Timbercreek

operational philosophy of low volatility real estate ownership providing predictable cash flow, and

NOVEMBER 2011 The Canadian Business Journal 111

Toronto • Kitchener • Kingston Edmonton •

When faced with making decisions in today’s ever-changing regulatory environment, it pays to have an expert on your side. At XCG, we will listen, provide advice and assist you in arriving at the best possible solution for your project. Providing Remediation and Risk Assessment, Environmental Site Assessment, Brownfield, Solid Waste, and many other environmental services. Visit xcg.com for more information.

less fluctuation than that of broader equity and debt markets. It’s a philosophy that Timbercreek plans to continue to carry into the future. As Tamblyn put it, “We’re focused on predictable low volatility investment opportunities and I’d expect we would evaluate those and, if they make sense, offer them to our clientele.” CB www.timbercreekfunds.com

Halifax • Cincinnati

www.xcg.com

Insights from Carbon Discl

This month, I had the privilege of being invited to the house of for a reception to celebrate the announcement of the Carbon report 2011. We agreed to meet for lunch the following week an lunch it became very clear that exploring and implementing su focus for him as it related to our two countries.

rom the losure

the British Consul General Disclosure Project (CDP) nd during the course of the ustainable growth was a key

SERIES

by Dwayne Matthews

112

114 CLEAN 15 Â&#x2022; Insights from the Carbon Disclosure Project

NOVEMBER 2011 The Canadian Business Journal 115

I decided to speak about the CDP and was a

be even more important for action on the chal-

little shocked that many of the folks that I ran

lenge. Companies were taking a strategic ap-

into outside of the cleantech world did not know

proach to climate change and were taking action

about it and its commanding influence on global

to seize commercial value from its effects. Many

corporate strategy. The Carbon Disclosure Project

companies were using awareness to generate

represents 551 global investors with assets of

new revenue streams. 54 per cent indicated they

over a whopping $US71 trillion. They work with

were providing products and services to aid third

investors globally to advance the investment op-

parties in reducing their GHG emissions. Others

portunities and reduce the risks posed by climate

were using it to build brand value and worked

change by asking almost 6,000 of the world’s

to gain competitive advantage by communicat-

largest companies to report on their climate

ing their climate friendly practices and emission

strategies, GHG emissions and energy use.

reduction actions. According to the report, 91

I thought it would be of great value to share

of the respondents reported 425 emission re-

the key findings of the report in this month’s

duction activities. This would imply that many

Clean 15 Series. This year the highest number of

companies were working at reducing operational

Canada’s largest companies responded at 108.

expense. The report went on to say that energy

This represents response rate of 54 per cent and

efficiency initiatives in operations and building

is an increase from 46 per cent the year before.

services were among the most popular.

Companies are starting to get the message that to attract investment, reporting to the CDP is

Regulations

becoming more important and the risk of not re-

A third key finding was around regulations. This

porting will have serious ramifications in the not

was seen as a risk as well as a potential oppor-

so distant future.

tunity. In big business the one thing that makes everyone nervous is uncertainty, however it is the

An opportunity for businesses

one constant and it seems that the upcoming

Another key finding was that companies were

decade will belong to those that can best navigate

starting to see climate change not solely from a

and take advantage of uncertainty. This will pose

risk mitigation perspective, which is important,

a major challenge for many large companies that

but from an opportunity perspective, which may

solely focus on superior disciplined processes. In

116 CLEAN 15 Â&#x2022; Insights from the Carbon Disclosure Project

yesterdayâ&#x20AC;&#x2122;s world this was the ultimate strength,

Business strategy

however in the 21st century, new perspectives are

The fourth key finding was that the majority of

needed, as volatility around inputs and emerging

respondents are already integrating climate

competitive threats are the order of the day. Most

change into overall business strategy. 75 per

companies perceived regulatory risks as a low to

cent of the Canadian companies that respond-

medium increase in operational costs, however

ed have integrated climate change into their

more companies reported climate related oppor-

strategies. This signals a commitment to long

tunities for the second year in a row. 67 per cent

term, sustainable growth. Canada is ahead of

reported regulatory opportunities suggesting that

its global counterparts as this compares with

a climate restraint economy can bring benefits

68 per cent of the Global 500 respondents of

across a variety of business sectors.

the S&P 500.

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 117

With momentum building and the field of

After the first pass of changing light bulbs,

concerned companies starting to level out, many

using less air conditioning and recycling paper, it

companies will have to move up the value chain

will come down to finding new innovations globally

as it relates to their carbon reduction efforts.

that will significantly reduce emissions, resource

Open innovation will play a key role here. Compa-

consumption, and explore new disruptive models

nies will have to source new ideas, new technolo-

that will generate significant growth opportunities.

gies as well as new models globally to continue

Momentum is starting to shift paradigms and pre-

to take advantage of the opportunities presented

paredness will be a competitive necessity. CB

by carbon emission reduction. Companies that fall behind in this area risk being eliminated by

Dwayne Matthews is the Managing Director of

the evolution of a redefined playing field.

Clean 15, The Canadian leader in open innovation.

118

Thinki your c By Mark Borkowski

MANAGEMENT AND OPERATIONS

ing of selling company?

120 MANAGEMENT AND OPERATIONS Thinking of selling your company?

Maybe a Retirement Compensation Arrangement could be your way to a flexible pension plan.

unaware of the intricacies of orchestrating a tax efficient sale,” says Michael Soble of the Reynolds Soble Group at CIBC Wood Gundy. “And they may not have a professional advi-

Demographics dictate that as many as 80 per

sor, like a lawyer or accountant, who is familiar

cent of small business owners will either sell or

with all of the options”.

pass on their businesses to heirs over the next

One often-overlooked strategy is the use

10 to 15 years. There are many ways to free

of a Retirement Compensation Arrangement

up a significant amount of the wealth tied up

(RCA). Properly structured and implemented, it

in your business, but how do you complete this

will drastically reduce the overall tax impact of

transfer and incur the least amount of tax?

a sale and provide a creditor-proof, flexible and

“Owners of small manufacturing businesses are generally experts in their fields but likely

tax-efficient pension plan. Business sales typically involve assets or

NOVEMBER 2011 The Canadian Business Journal 121

shares. Most owners prefer to sell the shares and gain access to the $750,000 lifetime capital gains exemption, while purchasers prefer buying the assets. The tax treatment

Here’s a simple example. Assume the following: • Business assets sold for $3 million net proceeds. • A $3 million RCA contribution is deter-

on each type of sale is different, but an RCA is

mined to be reasonable under Canada

particularly useful when the sale involves the

Revenue Agency guidelines.

assets. The rules surrounding the establishment,

• If there is no RCA, the owner will bonus this out, pay tax personally and

funding, ongoing management and withdraw-

• invest the remainder.

als from an RCA are complex, but to summa-

• Investments earn five per cent annually.

rize: an RCA is established under the rules of

• The owner requires $190,000 per year,

the Income Tax Act, and allows a company to

net of taxes, for the next 10 years from

make tax deductible contributions on behalf

• his investments, or from the RCA.

of key employees to build a retirement pension. The contribution guidelines are generous

With no RCA, sale proceeds are $3 mil-

(compared with RRSP limits) and actuarially

lion, personal taxes (Ontario) are almost $1.4

determined based on income and years of

million (46 per cent), Ontario payroll tax is

service. Funds are not locked-in as they would

$58,500 (1.95 per cent), the balance after tax

be in a normal pension plan, they are creditor

is almost $1.6 million and annual withdrawals

protected; withdrawal rules allow for flexibility

are $190,000.

in terms of timing and amounts; and there are

With an RCA for one, there are no personal

few investment restrictions. “The bottom line is

taxes and no payroll tax with a balance of $3

that once the RCA is reasonably funded (which

million and annual withdrawals are $190,000.

can be from the proceeds of a sale of assets),

Same for an RCA that adds a spouse, both in

there is a great deal of flexibility as to how the

after-tax dollars. But the gross that must be with-

money can be invested, the amount and the

drawn from the RCA each year is higher since it’s

timing withdrawals, and even passing along

subject to full taxation. For a one-employee RCA,

RCA assets to spouses and other beneficia-

withdrawal of $321,486 less tax of $131,486

ries,” says Soble.

= $190,000 net. With no RCA, withdrawals are

122 MANAGEMENT AND OPERATIONS Thinking of selling your company?

NOVEMBER 2011 The Canadian Business Journal 123

mainly from after-tax income. After 10 years, the balance for no RCA is $67,322, $334,504 for a one-employee RCA and $704,096 for an employee plus spouse. (The employee plus spouse RCA assumes equal T4 income from the company over the years.) “We are seeing more opportunities for RCAs pop up in connection with business owners as they start to actively plan for selling their businesses,” says Mike Reynolds. Establishing an RCA is complex and requires specialist input in the areas of tax, actuarial review, accounting and investment management, so there has to be enough dollars involved to make it worthwhile. However, the potential benefits are huge: immediate and future tax savings; significantly increased retirement income; and estate planning flexibility in the future. CB Mark Borkowski is president of Toronto-based Mercantile Mergers & Acquisitions Corp., which specializes in the sale of mid market companiessold to international strategic and private equity firms. He can be contacted at mark@mercantilema.com The Reynolds Soble Group – CIBC Wood Gundy. Michael Reynolds (416) 369-8742 Michael Soble (416) 369-7769

New Brunsw

A toast to New Bru

wick Liquor

unswick

124

FOOD & DRINK

126 FOOD & DRINK New Brunswick Liquor Corporation

NOVEMBER 2011 The Canadian Business Journal 127

When Daniel Allain was named as the new President and CEO of Alcool NB Liquor (ANBL), New Brunswick’s provincial government’s preparations to streamline the province’s Crown liquor corporation was underway.

128 FOOD & DRINK New Brunswick Liquor Corporation

NOVEMBER 2011 The Canadian Business Journal 129

To learn more about the BACARDI® OAKHEART adventures, scan here.

The restructuring is part of a new government, helmed by Premier David Alward, elected on September 27, 2010. Alward gave Allain “a specific mandate to examine how the corporation is run and find innovative and practical ways to make it a more efficient organization and profitable asset for the people of this province.”

NB Liquor major provincial contributor ANBL manages New Brunswick’s liquor retail distribution through its 48 corporate liquor outlets and 72 private agency stores. Patriotic New Brunswickers have helped contribute over $159.4 million in net earnings in 2011—to the

130 FOOD & DRINK New Brunswick Liquor Corporation

NOVEMBER 2011 The Canadian Business Journal 131

“In total, its product portfolio includes almost 2,000 products, just over half of which are wines, followed by spirits (29 per cent), beers (15 per cent) and ready-to-drink products such as coolers (four per cent).”

province through sales of beverage alcohol, money that goes towards schools, roads and hospitals and another $45.9 million to the Federal government in HST, excise tax and duty levies. Since it was created from the former New Brunswick Liquor Control Commission in 1976, ANBL has supported the introduction of brew pubs, microbreweries and an “agriculture-based” cottage wine sector, all of which work with ANBL for distribution. In total, its product portfolio includes almost 2,000 products, just over half of

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which are wines, followed by spirits (29 per cent), beers (15 per cent) and ready-to-drink products such as coolers (four per cent). Oct. 20, 2011

& DRINK New Brunswick Liquor Corporation 132 FOOD Ad Apothic CBJ_10-11-2011.pdf 1 10/11/2011 12:18:45 PM

CMY

As such, ANBL is a vital contributor to the

organization to a retail operation. So when the

provincial (and, to a lesser degree, federal)

new government was formed, the Premier elect

government, and must adapt to the tastes and

gave us a challenge, to strengthen retail and

trends of the public to ensure it remains so. In

market strategies, increase profitability and to

operation effectively since the end of prohibi-

change the governance and culture. The status

tion, ANBL, in one manifestation or another, has

quo is really not an option—we need to evolve

evolved with the times, and will do so again, this

and better ourselves.”

time to overcome a rocky economy and an increasingly aging population. “ANBL reinvests in the province and employs

Like any retailer, the key to success for ANBL is to create a competitive edge, something to welcome customers back to the stores and away

over 600—and we provide great retail service,”

from bargain basement prices across the borders

says Allain. “But can we improve? Yes, we can.”

in the U.S. and Quebec.

“Over the past 10 years we have been transforming ourselves from a government run

One such strategy was to locate ANBL outlets adjacent to grocery stores, opening new stores

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 133

131 Mill Road Moncton, NB E1A 6R1 Canada (506) 854-2537 | pumphousebrewery.ca

FINELY CRAFTED BEER The Pump House Brewery offers five different brands of its own finely crafted bottled beer, eight on tap and in kegs and several more that come and go with the seasons. Proudly brewed in New Brunswick since 1999, Pump House is a favourite of discriminating beer drinkers across Canada. Bottled beer is available in every province except Saskatchewan and Quebec and kegs are shipped to an ever expanding list of bars and pubs in the Maritime Provinces. If you can't find it at your local store, please ask for it by name.

134 FOOD & DRINK Â&#x2022; New Brunswick Liquor Corporation

Buying for a BBQ Summer dining is all about simplicity. Throw on your favourite food to grill, and bring along a BBQ-friendly wine. The wine you are looking for in a BBQ should probably be bold so it can stand up to the bold rich flavours of the meal. Recommended varietals include: Zinfandel, Cabernet Sauvignon, Malbec and Shiraz/Syrah.

Buying for a Gardener This time of year, gardeners are in their glory! Here is a green-thumb themed gift idea: Fill a Clay pot with seed packets, gardening gloves, and a bottle of easy to drink summer wine - try one of NB Liquors many New Zealand wines

NOVEMBER 2011 The Canadian Business Journal 135

side by side for convenient shopping and spontaneous food pairings. An internal strategy, ANBL introduced balanced scorecard reporting, employee engagement initiatives and a focus on retail service excellence. “Our team is dedicated and professional, has one of the lowest turnover rates in the province.” In turn, ANBL was named one of the Top 25 employers in Atlantic Canada in 2010 and 2011 and one of Canada’s Top 100 Employers in 2011. Unlike most retailers, however, the ANBL has a monopoly on beverage alcohol sales, and one might think that these products can

136 FOOD & DRINK New Brunswick Liquor Corporation

“The objectives—to invigorate the category, increa were met,” said Allain. “We are not optimistic, how will reverse in time to affect our second quarter res sell themselves. When ANBL’s annual report,

Allain in the report. “The global financial crisis,

released in September, revealed that while

which caused a rise in food and gas prices, left

overall sales were up 1.3 per cent, growth was

consumers with less disposable income in the

led by wine (6.1 per cent), followed by beer

year and contributed to the reduction of 100,000

(3.0 per cent) and spirits (1.0 per cent), while

retail transactions compared to 2010.”

sales of other beverages (coolers and ready to drink) decreased by 3.0 per cent.

Changing demographics

“ANBL achieved growth and encountered

“The national average per cent increase in

challenges across various markets in 2011,” said

wine sales is 3.2, and ANBL was up 6 per

NOVEMBER 2011 The Canadian Business Journal 137

ase traffic and volume— wever, that the trend sults.” cent. As a whole, I am happy about great wine sales,” says Allain. “But when beer sales decline, the impact is greater than when wine as beer sales represent 55 per cent of our sales. The decline was not specific to New Brunswick; liquor jurisdiction across Canada saw the same decline.” Allain also cites higher gas and food prices as reasons why beer sales are lulling.

138 FOOD & DRINK New Brunswick Liquor Corporation

Daniel Allain, President and Chief Executive Officer

Lord and a project executive with Business New Brunswick working on Investment and Immigration files. In September 2004, Daniel became the

Daniel Allain is responsible for the

Executive Director of Downtown Moncton/

strategic corporate direction, leadership

Centre Ville Inc., where he assumed

and regional collaboration for the New

an economic development role to

Brunswick Liquor Corporation. Daniel holds

create investment opportunities and

a bachelors degree in social sciences with

while building a vibrant and inviting

a specialization in political science and

atmosphere for tourists and citizens.

a master’s degree in administration from l’Université de Moncton.

Daniel was born in Woodstock, NB and raised in South Eastern NB. He is

Daniel worked in provincial public

married to Sylvie Michaud and resides in

service from 1999 to 2004, as the

Dieppe, NB. The couple has two children,

executive assistant to Premier Bernard

Catherine and Myriam.

NOVEMBER 2011 The Canadian Business Journal 139

A BRIEF HISTORY 1916 Prohibition makes the distribution and sale of alcoholic beverages illegal in Canada. 1927 Prohibition is rescinded and the provinces are given jurisdiction over the importation, distribution, and sale of beverage alcohol. This sees the creation of the New Brunswick Liquor Control Board. 1962 The New Brunswick Liquor Control Commission replaces the Liquor Control Board. On premises sale and consumption is introduced for

the perfect hoLiday cocktaiL Le parfait cocktaiL des fêtes

restaurants, bars, taverns, etc. 1976 The N.B. Liquor Corporation is created by legislation resulting in the separation of the sales and licensing/ control functions. Administration and enforcement of the Liquor Control Act remained with the Department of Finance through the Liquor Licensing Board. That Board has since been disbanded and these functions have been moved to the Department of Public Safety.

the crowN MaNhattaN 1.25 oz. crown royal deluxe or crown royal Black 0.5 oz. sweet vermouth 3 dashes of bitters can be served on the rocks or shaken with ice. Garnish with a maraschino cherry. PleAse eNJOY ResPONsIblY sVP CONsOMMeZ De FAÇON ResPONsAble

DCCR 110689_CR_CndBsnsJrnl_QtrPgAd_Final.indd 1

Le MaNhattaN royaL 1,25 oz de crown royal deluxe ou de crown royal Black 0,5 oz de vermouth doux 3 traits de bitters Verser dans un verre avec quelques glaçons ou préparer dans un shaker. Garnir d’une cerise au marasquin. © Diageo Canada Inc. 2011 All rights reserved. Tous droits réservés.

11-10-18 5:21 PM

140 FOOD & DRINK New Brunswick Liquor Corporation

PMA Canada

“That is the main message. People want variety and that is why we have increased the number of imported beer and specialty wine products because people want a different experience.”

3.75"

NOVEMBER 2011 The Canadian Business Journal 141

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These numbers show that New Brunswick’s

4.75"

yet, however, there is an opportunity to get to

palate is evolving. “That is the main message.

know our customer better,” says Allain. “Once

People want variety and that is why we have

we fine tune the Corporation’s infrastructure,

increased the number of imported beer and

we will be better able to accommodate market

specialty wine products because people want a

changes and ready for continued growth when

PROJET:

#1836 ANNONCE CANADIAN BUSINESS

different experience.” PHILIPPE DANDURAND

CLIENT:

the economy turns around.” CB

FORMAT: 3.75” x 4.75” NOTE:

Allain cites an event during which Andrew

Oland,CMYK president of Moosehead Breweries Lim-

COUL.:

ited, described the beer industry as being in the midst of a “demographic tsunami.” New Brunswick’s population is aging and the signs indicate their palates are changing with age, as wine is becoming more popular. “I won’t say we are at a cross roads just

www.nbliquor.com

Ca ex

FOOD & DRINK

La Prep

anadaâ&#x20AC;&#x2122;s fresh fare xperience, everyday 142

144 FOOD & DRINK La Prep

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 145

As we spend longer hours at work, and more time outside the house at play, the need for healthy, fresh and delicious meals on the go options rises; no longer are Canadians willing to sacrifice nutrition for convenience.

146 FOOD & DRINK La Prep

John Essaris, President of La Prep restaurant

well every day. At La Prep, the food is an experi-

chain, has positioned his company perfectly to

ence, with the sights and smells of freshly made

respond to this growing customer trend. La Prep is

meals entice the customer and create a welcoming

a Montreal-based premium quick food restaurant

experience. “Ensuring you can eat well every day

chain that draws in the rushed lunch and business

is our contribution to your wellbeing,” says Essaris.

crowds looking for freshly-prepared sandwiches,

“Our commitment to preparing fresh fare

salads, soups, baked good, breakfast foods, and

quality products daily from scratch in our kitch-

delectable coffees. With over 50 locations in ma-

ens while maintaining our premium coffee stan-

jor urban centres across Canada (and an addition-

dards makes us unique within our segment.”

al location in Miami), La Prep is one of Canada’s most exciting new quick service franchises. Essaris’ vision was to create a company that would help customer desire to live well and eat

New name to reflect menu If the name La Prep isn’t entirely familiar, try Café Supreme. Facing increasing obstacles in

M O

P O STÉ

ÊTRE C

NOVEMBER 2011 The Canadian Business Journal 147

100%

trademarking, Essaris renamed the company to La Prep to better articulate the basis of the restaurant,

stronger point of differentiation,” says Essaris. “As our primary performance results to date

which is freshly prepared foods. Like Café

have been predominately related on providing

Supreme, La Prep is pronounced easily in both

freshly prepared food products daily, the new La

French and English and very easily remembered.

Prep brand better represented what we stood for

“With minimal awareness, when we first introduced the Café Supreme brand in Western

throughout the Canadian market.” La Prep has managed to grow into one of

Canada it became apparent that the market

the country’s fastest expanding franchises in an

didn’t relate to our standard product offerings

economic environment that has not been kind to

as the name was very generic in content with a

the food industry, with global food prices rising,

primary focus on coffee. Therefore the objective

causing companies to make difficult decisions.

was to improve our market positioning by clearly

“As with all food service chains, the recent

identifying a brand that would provide us with a

global food prices have had an impact on our costs,

148 FOOD & DRINK La Prep

which we continue to monitor very closely through

down over the next few months in order to mini-

supplier negotiations and competitive analysis,”

mize any future impact on our industry.”

says La Prep Vice-President John Beauparlant. “As a national chain, we remain dedicated to

Bringing Canada to the world

ensuring that we offer the highest quality products

While quickly becoming a Canadian lunch and

to our customers and will never sacrifice qual-

breakfast institution, La Prep is working with

ity as this has been the primary backbone of our

its franchisee owners overseas to convert the

overall success. As we prepare the majority of our

existing Café Supreme locations in Dubai, Abu

products from scratch in order to maintain our

Dhabi, and Cairo. In countries with large ex-

commitment to the consumer of ‘Daily Fresh’, we

pat populations, such as Dubai, where a high

have been challenged by increased manufacturing

percentage of the population are foreigners,

costs and have recently been forced to introduce

La Prep brings a unique Canadian experience.

a minor price increase throughout the chain in an

Essaris is currently in discussion with potential

effort to maintain our store margins. We trust that

franchisee owners who also wish to continue La

the commodity pricing market will eventually settle

Prep’s expansion in the Middle East countries.

NOVEMBER 2011 The Canadian Business Journal 149

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150 FOOD & DRINK La Prep

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“We offer a business opportunity in countries that are looking for a unique North American concept that will achieve positive potential revenues,” says Essaris. “Being a small company means we have the flexibility as owners to adapt to certain market conditions in local countries, being menu offering, beverage offering and adjust the menu and systems accordingly to kind of go-with-the-flow of what the country is accustomed to,” he adds.

NOVEMBER 2011 The Canadian Business Journal 151

“I think we bring a lot of that to the table in allowing that flexibility. Not to say we don’t standardize our system but we can also be flexible in certain parts that allow us to grow that much quicker.” Beauparlant and Essaris are confident in the La Prep concept, and customers are responding in droves. “In the initial stages of our development, several consumers commented on our ability to provide a consistent quality product with a focus on offering a larger variety then most of our competitors,” says Beauparlant. “Our ability to evaluate consumer trends and maintain product appeal through our upscale

152 FOOD & DRINK La Prep

NOVEMBER 2011 The Canadian Business Journal 153

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store décor and image has since played an in-

establishments that maintained a high degree

tegral part of our success. The further develop-

of standards in quality, service, and overall am-

ment of the brand through our dedicated, highly

biance. As our family got more involved in the

skilled, professional team of franchisees has

industry I began to acquire a stronger dedication

continued to enhance our ability to grow the

and drive to the overall development of the busi-

concept throughout the Canadian market. The

ness henceforth our future growth of La Prep,”

wellbeing of any successful business is based on

says Essaris. CB

the strength of its people and we are extremely pleased to have had a dedicated group in our home office and in the field that has maintained our core values throughout the years. “As a sophisticated consumer, I’ve always had a significant interest in those food service

www.Laprep.com

154

Town of Inuvi

MUNICIPAL

A hotbed of oil and gas activity in the frozen north

156 MUNICIPAL Town of Inuvik

NOVEMBER 2011 The Canadian Business Journal 157

“Land of the Midnight Sun and Gateway to the Beaufort-Delta”, the northern town of Inuvik, N.W.T., is home to a growing and diverse population. Located on the rim of the Arctic Circle, Inuvik’s vast flat wooded plateau with northernmost reaches of the tree line at the east channel of the Mackenzie River Delta, 100 kilometres south of the Beaufort Sea, a hotbed of oil and gas activity lies beneath this frozen tundra.

158 MUNICIPAL Town of Inuvik

In September, a huge gathering of representa-

“There is a lot to protect,” says Mayor Denny

tives from the National Energy Board of Canada,

Rodgers. “This is a town of 3,500 with ameni-

oil and gas companies and environmental de-

ties for a much larger community; a six-year-old

partments gathered in the town to debate and

hospital, a new community college, hockey and

discuss offshore oil drilling. The purpose of the

curling rinks, etc., not to mention the beauty of

roundtable was to discuss government regula-

the land and the ecosystem.”

tions and industry best practises. As spills in

The diversity of the community is also re-

the Gulf of Mexico and New Zealand provided

markably diverse for its remoteness, with a thriv-

dark illustrations of the devastation a spill could

ing Muslim community, and First Nations and

entail, the community of Inuvik had been vigilant

Metis communities. “The amenities and amazing

on ensuring the optimum safety conditions for oil

people we have it make Inuvik, in my opinion, the

exploration before it can begin.

best kept tourism secret in Canada.”

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 159

160 MUNICIPAL Â&#x2022; Town of Inuvik

Aurora Campus, Inuvik

Western Arctic Research Centre, Inuvik

Thebacha Campus, Fort Smith

Yellowknife/North Slave Campus, Yellowknife

The College of the Northwest Territories

NOVEMBER 2011 The Canadian Business Journal 161

Inuvik Petroleum Show

Aboriginal and conservation groups, the project

In tourism, maybe, but anything but in the oil

was premature. Effectively shelved since that

and gas industry, which sends over 500 del-

time, the project was revisited in 2004, and, major

egates every year to attend the Inuvik Petroleum

improvements in corporate social responsibility

Show(IPO),held this year in June. It’s a major

and Aboriginal land rights, this project is posi-

event, with 100 trade show booths, developed

tioned to inject billions of dollars into the northern

originally to promote the Mackenzie Valley Gas

economy at its proposed start up in 2014.

Project, a proposed 1,196-kilometre natural gas pipeline system along the Mackenzie Valley of

December deadline

Canada’s Northwest Territories to connect north-

“The National Energy Board, for whom we all have

ern gas fields with North American markets.

a tremendous amount of respect, took it upon it-

The project has been in the blueprint stage

self to do a review [of offshore drilling and pipeline

since the 1970s, and was looked at seriously until

projects],” says Rodgers. “We, meaning Canadians,

an inquiry conducted by Justice Thomas Berger

have some of the most stringent standards in the

declared that, due to inadequate consultation with

world and are fortunate that we do.”

162 MUNICIPAL Town of Inuvik

CIBC

ABM Available 134 Mackenzie Road P.O. Box 1250 Inuvik, NT X0E 0T0 Tel: 867-777-4539 Fax: 867-777-3491 www.cibc.com

The review is slated to be completed in December, before which it will analyse input and data from the industry and surrounding communities including Aboriginal leaders, hunting and trapping associations, who were invited to weigh in on the negative and positive effects of offshore drilling. “The roundtable”, says Rodgers, “was great. A lot of people have voiced their concerns, some spoke passionately about the land, what it means, what an oil spill of any magnitude would do to the sea and communities on the coastline that rely on the sea for their livelihood.”

At the same time, you can feel an optimism. We know the importance of hydrocarbon and oil and gas when 80 per cent of the energy we use comes from that source. I think the concern is people want a comfort level, and that comes in knowing there are proper blowout preventers, systems for proper stoppage and clean-up if something, God forbid, were to happen,” he says.

NOVEMBER 2011 The Canadian Business Journal 163

“As long as you have the best possible regulations

partnering with major companies, who, in the

in place, then we are not opposed to drilling. We

1970s did not regard corporate social responsi-

look to Norway as an example of a well regulated

bility the way it is now.

offshore oil industry that has not harmed other

“It’s an opportunity to build trust back,” says

industries. They have many rigs off the coast in

Rodgers. “The way things were done 30 years ago

the North Sea and there is also a thriving fishing

when an oil company came in to drill is different

industry up the coast. It can be done—but we must

now. Certainly I think it is safe to say decisions in

ensure it is done appropriately.”

the past for the North have been controlled a little by outside interests, is not the case now. Aborigi-

Economic engine

nal and local governments are front and centre on

The economic benefits would be “significant”,

what happens here on their land.” CB

says Rodgers, despite Inuvik being an inland community, and would also mark a new way of

www.inuvik.ca

164

Cape Breto Municipalit

100 years of bringin

For over 100 year, the Sydney and area Chamber of Commerceâ&#x20AC;&#x2122;s leadership and effective management has shaped the regional eco the business interests of the community, guiding the area throug

ton Regional ty

ng business together

â&#x20AC;&#x2122;s vision of a strong and unified business community, prescient onomy. Today, the Chamber continues to advocate on behalf of gh periods of resiliency and sustainability.

MUNICIPAL

166 MUNICIPAL Cape Breton Regional Municipality

No greater testament to the work of the Cham-

of the area has turned into tangible progress. Never

ber is the region’s growing global reputation for

was this more of a challenge than in the 1990s, and

sustainability. Landmarks institutions of Sydney,

in the period between when a dramatic shift in the

including the Canso Causeway, the Fortress of

Cape Breton economy saw the closing of many of

Louisbourg, and the tourist association (now

the area’s fabled coal mines, and the emergence

known as Destination Cape Breton) would not ex-

of sunrise industries surrounding innovation, knowl-

ist were it not for the Sydney and Area Chamber

edge, tourism and renewable forms of energy.

of Commerce. And certainly business has ben-

The Chamber works diligently to promote the

efitted from both small and large scale projects,

Nova Scotia Department of Energy’s vision to

such as the elimination of long-distance tele-

capitulate Nova Scotia Power into a leader in the

phone calls between Cape Breton communities

renewable energy industry by 2013 and a nation-

and the development of the Sydney Harbour.

al leader amongst the provinces.

The Chamber’s effectiveness is thanks to decades of citizen dedication whose passion and pride

Now 600-members strong, the Chamber continues to advocate for the region, participating with

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the local, provincial and federal governments to

says Jim Paris, President of the Sydney and Area

further the interest of local business development.

Chamber of Commerce.

Chamber membership has key value adds like

Speaking with Paris on the emerging diversity

advertising, discounts, and a high profile within

of the region’s economy, he says “This is an in-

the business community and business interest

teresting community that has been through great

groups. The Chamber acts as a high-profile advo-

transition between steal plants and coal mines

cate to the wants and needs for a healthy sustain-

which are pretty much closed, were replaced

able business, while recognizing the problems and

slowly but surely by service and sunrise services.

difficulties businesses face day to day. “We kept

Things have been growing here ever since.”

business interest in the forefront of public sector organizations and city councils legislatures so they

Ambitious Sydney Harbour project

get that representation in addition to the participa-

High on the Chamber’s priority list is improving

tion of getting involved with a number of key activi-

trade through scheduled updates to air transit, rail

ties, social activities and self-promotional events,”

links and highway infrastructure, not to mention a

168 MUNICIPAL Â&#x2022; Cape Breton Regional Municipality

NOVEMBER 2011 The Canadian Business Journal 169

mega project on the Sydney Harbour. Scheduled to

for Sustainability in Energy and the Environment,

be complete in early 2012, the ambitious project

who is welcoming three Chinese government

will see more than 4 million cubic metres of seabed

officials who are interested in the clean energy

removed from the access channel to allow access

efforts of the centre.

to some of the world’s largest vessels, further opening trade opportunities for local business. The $38 million price tag will be paid for by

“The university is slowly but surely becoming a centre of sustainable energy in which development and research is being done relative

the federal government ($19 million), with the

to clean energy,” he says. “The centre will play

Nova Scotia government paying $15.2 and the

a large role in our future. You have to have an

Cape Breton Regional Municipality committing

integrated economic plan to truly develop an

$2 million to deepen the harbour channel. Prime

area so it’s not one silver bullet, but a number

Minister Stephen Harper estimated the addition-

of key activities that will sustain the area over

al ship traffic will create thousands of short and

time. Sustainable energy is clearly one of the

long-term jobs. “By dredging Sydney Harbour, we

key things which the world is demanding, and we

can unlock Cape Breton’s true economic poten-

have a world-class centre right here.”

tial,” Harper said in a news release. “This will al-

Nova Scotia itself turns heavily toward clean

low bigger ships into the harbour and create jobs

energy research and development. We have a

in Cape Breton for the long term.”

real opportunity here to become singularly expert

Premier Darrell Dexter agreed, saying the

at this critical science from a global perspec-

project is an “opportunity to create real and posi-

tive—it truly in an investment in tomorrow. If Cape

tive change for the economy of Cape Breton.”

Breton can lead the band with that then certainly

The Sydney Harbour project has buoyed spir-

the world will come to our doorstep.” CB

its, says Paris, who is giving a virtual tour of Cape Breton with his vivid descriptions of the harbour, the shops and restaurants. Paris tells me he is “from away”, having moved to Cape Breton from North Carolina and hasn’t looked back. That evening, Paris attended a function hosted by the Cape Breton University’s Centre

www.cbrm.ns.ca

170

City

New B

of Moncton

Brunswick’s hub city

MUNICIPAL

172 MUNICIPAL Â&#x2022; City of Moncton

George LeBlanc, Mayor, City of Moncton

NOVEMBER 2011 The Canadian Business Journal 173

Like any major city, the City of Moncton’s local economy and future prosperity are closely tied. But what’s different about Moncton is its feel: the local townspeople are renowned for their friendly, can-do attitude, noted by the city’s recognition as Canada’s most honest, most polite, and most ‘Canadian’ city.

174 MUNICIPAL Â&#x2022; City of Moncton

Monctonâ&#x20AC;&#x2122;s reputation is a community that gets things done, successfully drawing the business world to the area.

transportation hub of the Maritimes. Moncton is home to three well-known trucking companies, a sign that its transportation sector is still strong. Meanwhile, the Greater Monc-

Industry diversification

ton International Airport is thriving, and the rail

While no one sector dominates the Moncton

industry has begun to make a comeback. Accord-

landscape, its transportation industry has always

ingly, a $100 million contract has been secured

served as the backbone and remains an impor-

with the federal government to refurbish VIA Rail

tant part of the economic community. Beginning

passenger cars.

in the 1800s, ship building was the mainstay of

The can-do, hardworking attitude is repre-

Moncton. The transportation sector of Moncton

sentative of Moncton. Statistically, Moncton has

has since evolved from ship building, to the rail

traditionally held a lower average unemployment

transport years, to the modern era of truck trans-

rate than Canada as a whole. Thatâ&#x20AC;&#x2122;s evident

portation and air travel, and designation as the

today, as Moncton boasts a meager six per cent

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 175

176 MUNICIPAL City of Moncton

jobless rate, which is lower than the Canadian

the United Parcel Service call Moncton home as

national average (about 7.3 per cent, according

these companies are able to utilize the local work-

to September 2011 figures).

force capable of communicating effectively in both of Canada’s official languages.

The bilingual city

“The hardworking bilingual workforce in

The local bilingual population attracts big business

Moncton is a real asset that helps contribute

to Moncton. About 40 per cent of the community is

to Moncton’s success and brings new business

fluent in both English and French, a figure reached

to Moncton as well,” beamed George LeBlanc,

by only three other Canadian cities (Ottawa and

Mayor of the City of Moncton.

Sudbury, Ont., as well as Montreal). In 2002,

Aside from the fluent bilingual workforce, the

Moncton officially became Canada’s first bilingual

diversified economy and quality of life of Monc-

city. Thirty-seven business call centres for organiza-

ton is a draw to the city. LeBlanc added, “We

tions like Exxon Mobil, Royal Bank of Canada, and

focus very much on quality of life issues and we

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 177

In Moncton, we dream big.

Moncton Industrial Development

We dream of new businesses starting up, setting up and growing up. We also dream of locations for those businesses. Monctonâ&#x20AC;&#x2122;s industrial parks are strategically located for access to all parts of the city and for access to those major transportation arteries serving the Atlantic region. With the new Moncton Industrial Park West and the ever growing Caledonia Industrial Estates, your dreams can become a reality with lots of room in both parks to grow. Moncton Industrial Park West and Caledonia Industrial Estates, your dreams are our dreams. MonCton IndustrIal dEvEloPMEnt 655 Main Street, Moncton NB E1C 1E8 506 857-0700 mid@nb.aibn.com www.moncton4businessdreams.ca

178 MUNICIPAL City of Moncton

recognize that in today’s growing economy more

with figures showing that no more than about 10

and more people are moving to an area where

per cent of the work force is dedicated to any one

the quality of life is great. We have a very vibrant

sector, meaning plenty of diversity and stability

economy, arts, entertainment and recreational

when economic fears strike, as occurred to the

facilities here, and the cost of living is low.”

global economy beginning in late 2008.

The cost of housing is affordable in Moncton,

“Here in Moncton, we were very fortunate

considered the lowest in Canada in terms of in-

as our economy stayed strong during the reces-

come. Moncton has been recognized as the best

sion,” stated LeBlanc. “In fact, one of the local

place in Canada to buy real estate and, when

sayings was, ‘Let’s hope the recession is over

putting all these elements together, it makes

before it gets here.’”

Moncton a great place to live.

The Greater Moncton Area represents the sixth-fastest growing economy in all of Canada, and

Recession reform

the fastest growth east of Toronto. The area has

The job climate of Moncton is also very diverse,

scathed the effects of the recession, as it did twice

NOVEMBER 2011 The Canadian Business Journal 179

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180 MUNICIPAL City of Moncton

previously in the last few decades. In the 1980s,

Moncton has created 40 per cent of new employ-

three major local employers left the Moncton area,

ment in New Brunswick. In righting its economic

a significant blow to the local economy and work-

stance and becoming a very prosperous communi-

force. Moncton could have folded, but given the

ty, Moncton has reinvented itself, an achievement

perseverance of the community, that was not an

that is best known as the ‘Moncton Miracle’.

option. Where Moncton could have withered on the vine, the exact opposite occurred. “Having lost its biggest employers, the local

Vibrant community Moncton is a big draw and has a reputation for

business community and local government de-

“punching above its weight class”, marketing the

cided we were the only ones to help ourselves to

community as an entertainment and recreational

turn this around,” LeBlanc explained. “From that,

hub. Moncton is vibrant and often draws big

Moncton has become the economic powerhouse

events for a community of its size. Musical hits like

of New Brunswick.”

U2, ACDC, and The Rolling Stones have recently

According to LeBlanc, since the 1990s,

performed in Moncton.

NOVEMBER 2011 The Canadian Business Journal 181

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182 MUNICIPAL City of Moncton

Healthy economic growth isn’t good luck. It’s good leadership. Additionally, for the second year running, At Grant Thornton LLP, we’re very proud to claim The City of Moncton as our client. This community has one of the fastest growing economies in Canada, and its employment figures are the envy of the country. Strong, healthy economic growth can only be achieved one way— through astute vision and leadership. At Grant Thornton, we’re honoured to serve the City of Moncton, and we heartily congratulate them on their resounding success.

neutral-site game, between the Hamilton TigerCats and Calgary Stampeders. Last year’s match, the Toronto Argonauts vs. the Edmonton Eskimos, was hosted at the Université de Moncton’s Moncton Stadium, and was played before a capacity crowd of 20,000-plus spectators.

moncton Suite 500 633 Main Street T +1 506 857 0100 www.GrantThornton.ca

Moncton will host a Canadian Football League

LeBlanc attributes the successful turnout of these events to Moncton’s ideal, centralized Audit • Tax • Advisory

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location, with many travelling into Moncton from surrounding areas. Moncton is an attractive draw

NOVEMBER 2011 The Canadian Business Journal 183

for both social and business needs. You can live, work, and play in Moncton. Focusing on a vision for its community, the city

“Moncton is a place where people want to be and want to live. We are consistently recognized by others as the place to be,” LeBlanc summa-

aims for the best in prosperity and quality of life.

rized. “Those are just recognitions by organiza-

As such, Moncton builds on its strengths and at-

tions, but I like to think in terms of people. And

tempts to broaden its economy, a move that could

one of the things you will hear most often is that

ultimately attract more citizens. The community has

the people here are friendly…people move here

cemented its reputation as a host of world class

and just love it here. Moncton is a great place to

events, sports and recreation, and arts and culture.

be, come and visit, and then stay here.” CB

“The prosperity of the community, the quality of life, these are all things that attract people and business.

www.moncton.ca

184 MUNICIPAL Â&#x2022; Osoyoos Indian Band Development Corporation

Osoy

Indian Band Develop

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 185

yoos

pment Corporation

184

MUNICIPAL

186 MUNICIPAL Â&#x2022; Osoyoos Indian Band Development Corporation

The Osoyoos Indian Band Development Corporation, based in Osoyoos, B.C., is an organization that promotes economic sustainability and self-sufficiency within its native area, covering more than a massive 32,000 acres of British Columbia land.

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 187

188 MUNICIPAL Osoyoos Indian Band Development Corporation

With so much area available, the Osoyoos Indian Band Development Corporation also offers vast

level of economic self-sufficiency. Nearby to the Osoyoos Indian Band Develop-

developments in a variety of sectors, including

ment Corporation is the NK’MIP Resort, home to

residential ,commercial, industrial, agricultural,

more than 200 acres of destination resort lands

as well as tourism destination developments,

within the rich Okanagan Valley. The resort

“and some of the most desirable urban industrial

includes the shores of the Osoyoos Lake, as

commercial land in the South Okanagan.”

well as a 325-site motor park, a 4-star hotel, an

The Osoyoos Indian Band Development

award-winning winery, a golf course, as well as a

Corporation works progressively with business to

desert culture centre. These various attractions

“preserve its past by strengthening its future”,

play a role in the economic development and

and works to achieve its goal of increasing local

prosperity of the local area. Two hours south of

educational levels academically, athletically, vo-

another major city, Kelowna, B.C., and within

cationally, and culturally, a responsibility it feels

driving distance of the border to Washington

is shared by the corporation as well as the locals.

State, Osoyoos is a popular summer and vaca-

The Osoyoos Indian Band Development Corpora-

tion destination for all ages.

tion encourages and promotes lifelong learning

Developments have seen the popularity

and development strategies, as well as the over-

of wine vineyards spread across the Osoyoos

all increase of local opportunities and the stan-

lands, as well as the development of estab-

dard of living.

lished leases, such as the Sonora Dunes Golf Course, the Spirit Ridge Vineyard Resort & Spa,

Self-sustainable economic landscape

the Tuc-El-Nuit Estates townhouse develop-

The Osoyoos Indian Band Development Corpora-

ment, the Cherry Grove Modular Home Park, as

tion strives to reduce the area’s reliance on gov-

well as more than 1,000 acres in agricultural

ernment funding, doing this through job creation,

leases, representing more than 20 per cent of

self-generated income, joint ventures, leasing,

grape production in British Columbia. The area

as well as land and resource development to

is home to several wineries, including Vincor

encourage sector and industry growth. The over-

International, Mission Hill, and Burrowing Owl

riding goal of the Osoyoos Indian Band Develop-

Vineyards. The NK’MIP resort is in the heart of

ment Corporation is to achieve the area’s highest

Okanagan wine county.

NOVEMBER 2011 The Canadian Business Journal 189

Scenic tourist destination “Osoyoos is ‘growing up’ as a tourism destination, thanks to wine tourism, a variety of golf courses, great hiking, family-friendly ski hills, and now, NK’MIP Resort,” reads the Indian Band Development Corporation website. The Osoyoos Indian Band Development Corporation works to create and develop products to reduce dependency and encourage community involvement within the Okanagan First Nation traditional values of honour, caring, sharing, and

Boughton Law Corporation

Boughton is proud to be the exclusive legal advisor to the Osoyoos Indian Band Development Corporation. We wish them continued success and look forward to continuing our long established relationship. Boughton has an extensive aboriginal law practice. Our firm of over 50 lawyers has the depth and experience to provide advice to First Nations and related organizations on a wide range of issues. We stay closely connected with our First Nation clients and this connection, coupled with our experience and depth, enables us to deliver superior legal services. For more information about the services we offer, please contact Jean Yuen (e: jyuen@boughton.ca, t: 604.647.4119) or visit us at www.boughton.ca.

respect. This group promotes a lifestyle of hard work and self-support, as did its previous generations, in developing the local economy through its own business initiatives. As one of Canada’s leading aboriginal, agri-

Chief Clarence Louie states on the Osoyoos

cultural, and tourism regions, the Osoyoos Indian

Indian Band Development Corporation website,

Band began in 1877. The development corpora-

“We are very focused on the future and we real-

tion manages its business interests. Local lease

ize that we create this future by our actions. The

and joint ventures have created various busi-

single most important key to First Nation self-

ness relationships that have ultimately created a

reliance is economic development.” CB

variety of social and employment opportunities for the region. The Osoyoos Indian Band Development Corporation strives to strengthen South Okanagan’s economy and lifestyle. Reads the Osoyoos Indian Band Development Corporation website, “We invite any business with a well thought out business plan to come and explore the opportunities we offer.”

www.oib.ca

190 RESOURCES Â&#x2022; MiHR

190

PHOTO BY Jason Duggan / Shutterstock.com

NOVEMBER 2011 Â&#x2022; The International Resource Journal 191

RESOURCES

MiHR Innovate: A catalyst for sharing mining HR practices and knowledge By Lindsay Forcellini, Mining Industry Human Resources Council

In April, the CBJ featured the first in a three-part article series which introduced readers to the Mining Industry Human Resources Council (MiHR), the council for the Canadian minerals and metals industry, and MiHR Innovate, a collaborative platform developed by the Council to share knowledge and effective mining HR practices and initiatives. Following this article, Julyâ&#x20AC;&#x2122;s issue featured an in-depth look at the practice submitted by Teck Resources Ltd., one of several participating companies, and this month MiHR has connected with Cameco Corporation, Baja Mining Corp. and Vale, a trio of forward-thinking mining companies that have opened up their HR departments, eager to share their take on HR innovation.

192 RESOURCES Â&#x2022; MiHR

Why innovate? The pending retirement of the baby boom genera-

Industry Employment and Hiring Forecasts 2011. Half of the mining workforce will be eligible to

tion, difficulties in attracting and engaging youth

retire by 2021, creating a deficit of 75,000 re-

and an under-representation of diverse groups

placement workers in the most pessimistic fore-

paints a challenging ten-year talent forecast for

cast. A period of relative stability in the sector will

Canadaâ&#x20AC;&#x2122;s mining industry. While the industry has

see that number balloon to 112,000 as demand

made tremendous strides in addressing these

for natural resources increases. By taking a proac-

issues, finding experienced and skilled workers is

tive and innovative approach to address the HR

becoming more difficult and competition across

challenge, companies like Cameco, Baja and Vale

sectors of the economy is increasing, according

are sharing their innovative HR practices with all

to the Councilâ&#x20AC;&#x2122;s latest report, Canadian Mining

mining employers and adopting new strategies,

NOVEMBER 2011 The Canadian Business Journal 193

initiatives and tailored HR solutions to meet the

academics from post-secondary education institu-

needs of their own talent and hiring requirements.

tions a chance to work and collaborate with technical personnel at Cameco’s facilities.

Cameco Corporation

Sean Junor, Manager, Workforce Planning and

Developing relationships with academia

Talent Acquisition at Cameco, says the program is

Cameco is one of the world’s largest uranium

directly linked to the company’s long-term strategy

producers, focusing on clean electricity, and a

to significantly increase production by 2018.

leading provider of the processing services re-

“It allows us exposure and access to a dif-

quired to produce fuel for nuclear power plants.

ferent segment of workers and invites us into a

With operations in Saskatchewan and Ontario,

different conversation. We learn more about what

the US and Kazakhstan and development projects

is going on in the world of academia and research-

in Australia, Cameco is recognized as one of the

ers have the opportunity to apply their work in

top employers in Canada with over 3,300 global

an industry setting. The benefits are twofold; the

employees and is the largest industrial employer

program broadens our attraction and potential

of Aboriginal Canadians.

recruitment net and strengthens and/or develops

The growing demand for clean energy poses scientific challenges for Cameco and the nuclear

the relationships we have with academic institutions,” Junor explains.

industry. Strengthening ties between academia

Researchers spend up to one year in the

and industry has the potential to address some

program working on a problem of interest to both

of these challenges. In support of this objective,

Cameco and the researcher, with an end goal of a

Cameco’s Innovation & Technology Development

portfolio of potential projects that the researcher

(I&TD) department has established the Sabbatical

will take back to university.

Program for Academics, which gives researchers

Michael Murchie, Director, Research Centre at

and scientists from universities the opportunity

Cameco Technology and Innovation, says the key

to conduct research at Cameco operations each

to the program’s success is the dedicated time it

year. The arrangement allows professionals and

allows a researcher to spend with Cameco.

194 RESOURCES MiHR

“We are always meeting with researchers from different universities, but in a short time span, it’s hard to connect; you need time to establish a relationship. It’s about researchers getting to know our challenges and Cameco getting to know their capabilities,” he explains.

Following the program, two researchers are continuing to work with Cameco. Since the program is in its early stages, Junor explains the main focus now is collaborating from an HR perspective to grow in uptake, as the program can accommodate up to 12 researchers at one time. “The ability to measure the program’s outcome will come later on, when we have a cohort

This portfolio of focused project ideas creates

in and have some time to reflect on how it is

a link for continued collaboration, the develop-

assisting our month-to-month or week-to week-

ment of highly qualified personnel (HQP), the

activities. Are the researchers doing things our

promotion of science and engineering and the

employees couldn’t do? Do we have access to a

promotion of the mining industry.

unique, diversified set of skills we didn’t have access to before? These are the types of questions

Cameco has had four sabbatical researchers to

we’ll be asking,” says Junor.

date, from a wide range of backgrounds:

Baja Mining Corp. University of Saskatchewan – materials science

Adapting to a multi-cultural environment

research in zirconium alloys

Baja Mining Corp. (Baja) is a Vancouver based min-

Trent University – environmental science

ing company that is currently transforming itself

investigation in water and effluent treatment

into a producer. Baja and a consortium of Korean

University of Ontario Institute of Technology– robotics

companies own the Boleo Project, a large polyme-

and mechatronics

tallic property, with near-term production and a long

University of Toronto – human factors engineering

mine life, located in Baja California Sur, Mexico.

(human-automation interface)

In 2010, when Baja started recruitment

NOVEMBER 2011 The Canadian Business Journal 195

activities to focus on attracting talent for its

tegic planning and collaboration as successful

operations, talent requirements were identified

teams. It addresses perceptions, cultural pro-

and profiles emphasizing technical and soft skills

files, contrasts and differences and how these

were created. Due to the international location

can be better managed to ensure successful

of the project, profiles included candidates with

outcomes.

previous international experience, exposure to Latin-American cultures and fluency in Spanish. When recruiting for these positions, Maria-

Baja’s intercultural training is facilitated in sessions of two days. The first day introduces participants to cross-cultural research and

Luisa Sinclair, Baja’s Director of Human Re-

theory and the next day, participants receive a

sources, explains HR faced the predicament

personalized report and are guided through its

of either recruiting for technical or soft skills;

contents to learn how they interact with individ-

due to the importance of attracting seasoned

uals from different cultures and how to modify

experts in each area, technical skills prevailed.

such interactions in order to become more suc-

To fill in the soft skills gap, Baja’s HR team

cessful in the workplace.

designed and implemented an Intercultural

Baja has delivered two workshops so far,

Sensitivity Program to assist in providing em-

one at its site in Santa Rosalia, Baja California

ployees with the tools they need to effectively

Sur, Mexico, and one at the Vancouver office.

adapt to the new cultures they would be ex-

Sinclair says the response from employees has

posed to.

been positive.

“A lack of cultural awareness can lead to

“The program was well received. It generat-

costly delays, misunderstandings and, often,

ed quite a bit of exchange among participants,

personal frustration on the part of the commu-

as well as a willingness to learn more about

nicators,” Sinclair explains.

how each person is perceived by others from

Training in intercultural communication as-

different cultural settings. The majority of par-

sists businesses and individuals in achieving

ticipants agreed that the session was of interest

their goals in negotiation, decision-making, stra-

and relevant to their work.”

196 RESOURCES MiHR

Sinclair says Baja is confident that this initiative will provide attendants with a better understanding of their own behaviours within

people, mitigate the risk of knowledge loss and fully leverage the collective skill set. In 2008, in support of these objectives, Vale

different cultural settings and how such behav-

launched an innovative program for carry-on

iours can be adapted to become better com-

succession. The Career and Succession Planning

municators and more efficient in their roles in

(CSP) process is a global technology-driven system

foreign locations.

that enables collaboration and identification of potential candidates for succession at most

Vale

levels of management. This initiative is helping

A global approach to charting employee career

Vale address the skills shortage by focusing on

paths

professional development to retain its employees.

Vale is the second largest mining company in

“We recognize that many areas of our busi-

the world, one of the 30 largest publicly traded

ness are booming. The traditional methods to

companies in the world and the largest private

attract employees are no longer sufficient,”

sector company in Latin America. Vale has a

explains Tito Martins, CEO of Vale in Canada and

market capitalization of around US$ 170 bil-

Executive Director of Vale’s Base Metals busi-

lion, with approximately 500,000 shareholders

ness. “Vale’s main talent management focus is

from all continents and is the world’s largest

to retain and develop our own employees. The

producer of iron ore and iron ore pellets, key

CSP process enables us to ‘grow our own,’ sourc-

raw materials for steelmaking, and the world’s

ing talent from within the organization.”

second largest producer of nickel. As an international company with a global

Through the CSP process, the company is able to gain a holistic, global view of its workforce

workforce, Vale has recognized the importance

and identify successors for individuals in many

of effective human resources strategies linked

management levels by searching for strong

to the company’s corporate goals with the

contenders among potential internal candidates.

tools and processes in place to retain talented

This is achieved through an annual in-depth

NOVEMBER 2011 The Canadian Business Journal 197

performance-evaluation process consisting of a team, manager, clients and peers review whereby a 360-degree assessment of an

The CSP process has been successful at Vale and positively received. “Developing our people to ensure they

individual’s performance is conducted against

are successful in their roles is critical to our

core competencies.

organizational success,” Martins explains.

“The Career and Succession system has sig-

From work environment and culture, to learn-

nificantly enhanced our ability to fill roles globally

ing and professional development, by collabo-

and to provide our employees and managers with

rating with MiHR, these companies are industry

a system that supports discussions about devel-

leaders that are helping to support Canada’s

opment opportunities, competencies and talent

mining industry through the sharing of knowl-

needs,” Martins affirms.

edge, experience and ideas. If you are interested

The results of these assessments are ana-

in joining the discussion, please join the Canadi-

lyzed and fed into a globally accessible software

an Mining HR Innovators and Professionals group

database (CSP) that enables Vale to effectively

on LinkedIn. CB

identify potential successors. These are people who might be peers at the same level, or subordi-

For more information on the MiHR Council, visit

nates at lower levels. They might be immediately

www.mihr.ca. For details on MiHR Innovate, or to

promotable, or identified as potentially suitable

view the complete collection of practices, visit

for a more senior position within the next two to

www.mihrinnovate.ca

five years. “We can envision the CSP system encompassing our full workforce in a few years. Ironing out the kinks at each phase (before rushing into full expansion) is the key to a successful implementation. We always look at the business needs as the main driver for any HR program,” he adds.

Northque

Exploration company position

RESOURCES

est Ltd. 198

ned for golden future

200 RESOURCES Â&#x2022; Northquest Ltd.

When geologist Jon North made his second, then third visit to an area just 60 kilometres from Rankin Inlet, Nunavut, and, significantly, 80 kilometres from the renowned gold producing site at Meliadine Project (5 million ounces at a grade of 7.4 gold per tonne), optimism for the Pistol Bay Gold Project really picked up.

extensive background in geological surveillance to decrease as much geological risk as much as possible, using a strategy exploration in permissive rocks and in jurisdictions and geologic terranes which have not achieved exploration maturity. With 25 yearsâ&#x20AC;&#x2122; experience, North is a professional exploration geologist whose primary field of expertise is in area selection and the application

North is the President of exploration company

of the most appropriate methods of exploration in

Northquest Ltd., which explores for gold and

the early stages of project evaluation. In addition

other metals in Canada, Mali, and other jurisdic-

to his position as Director and CEO of Northquest

tions. North has built a reputation for using his

Ltd., North is a Director of the Board of New Dawn

NOVEMBER 2011 The Canadian Business Journal 201

M&T

ENTERPRISES

M & T Enterprises Ltd. is a 100% Inuit-owned Rankin Inlet-based company that oﬀers various services such as, freight and delivery, fuel delivery, household moving, construction, expediting and ground transportation. Our target markets are the mine development and mineral exploration companies, airlines, government and local residents. Our business is now focused on freight forwarding, warehouse and secure storage, fuel delivery, expediting, overland hauling, heavy equipment and oﬃce rental.

M&T

ENTERPRISES

P.O. Box 156, Rankin Inlet X0C 0G0 Ph: 867-645-2778 | Fax: 867-645-2590 Email: mandtent@netkaster.ca

Mining Corp. (ND - TSX) and a Director of the

ounces at a grade of 7.4 grams gold per tonne).

Board of Bridgeport Ventures Inc. (BPV – TSXV).

The Meliadine Project of Agnico Eagle Mines con-

“Jon has been a geologist his entire profes-

sists of several gold deposits within a segment of

sional life and his passion for it is evident,” says

banded iron formation which has gold occurrenc-

Investor Relations Manager Tanya Mahadeo.

es, prospects, and deposits over a strike length

“He is also very good at what he does; he has

of at least seven kilometres.

been successful because he puts all the research in. He does nothing blindly.” The Pistol Bay Project consists of 1,100

“In 2010, the Company completed due diligence sampling leading to the acquisition of the Pistol Bay project in Nunavut, Canada,” says

square kilometres of mineral rights. The property

Jon North in a statement. “The Pistol Bay proj-

is located approximately 60 kilometres south of

ect is an exact fit for the Company’s exploration

Rankin Inlet and 80 kilometres south of the Me-

strategy in that the geology is extremely permis-

liadine Project of Agnico Eagle Mines (5 million

sive for gold deposits, there are numerous gold

202 RESOURCES Northquest Ltd.

EXPERIENCE AND COMPETITIVE ADVANTAGES • Management has global knowledge and experience in mineral exploration

We Help Protect the Environment • Management has been exploring for • SERVING THE MINING INDUSTRY • CHARTER HELICOPTER SERVICE • CONTRACT SERVICE • AIR TAXI SERVICE • SERVING THE MOTION PICTURE INDUSTRY

gold for more than 25 years • Management employs a strategy of careful research, area selection, Help Protect the projectWeacquisition, andEnvironment exploration • SERVING THE MINING INDUSTRY • AIR TAXI SERVICE

1-800-782-0780 401 Helicopter Dr., ST. Andrews Airport, St. Andrews, MB R1A 3P7 Winnipeg (204) 338-7953 Rankin Inlet (867) 645-3885 Thompson (204) 677-3720

Gillam (204) 652-2212 Garden Hill (204) 456-2655 The Pas (204) 623-4595

occurrences in the area, Nunavut is a jurisdiction that has not achieved exploration maturity, and a large land package could be readily acquired. Since December 2010, the company has completed three claim staking campaigns and completed the first airborne geophysical survey ever flown in the area.” The Pistol Bay Gold Project is on property in Nunavut and it is a greenstone belt which has produced 350,000 ounces of gold since 2010, which is about the same size as Abitibi gold belt in Ontario and Quebec which has produced 150 million ounces since 1909.

• SERVING THE MOTION PICTURE INDUSTRY • CHARTER HELICOPTER SERVICE towards its goal of discovering • HELICOPTER FLIGHT TRAINING • CONTRACT SERVICE

1-800-782-0780 valuable mineral resources 401 Helicopter Dr., ST. Andrews Airport, St. Andrews, MB R1A 3P7 Winnipeg (204) 338-7953 Rankin Inlet (867) 645-3885 Thompson (204) 677-3720 Gillam (204) 652-2212 Garden Hill (204) 456-2655 The Pas (204) 623-4595

NOVEMBER 2011 The Canadian Business Journal 203

HISTORY Northquest Ltd. was incorporated March 18, 2008 under the laws of the Province

Phone: 867-857-2752 Office: Fax: 867-857-2807 Email: eplumber.ryan@gmail.com

of Ontario. The Company has one wholly–owned subsidiary, Northquest SARL, incorporated May 26, 2008, under the laws of the Republic of Mali. The Company is authorized to issue an unlimited number of common shares. The Company has 25,780,823 shares issued (38,710,034 on a fully diluted basis). The shares of the Company are listed on the TSX Venture Exchange under the symbol “NQ”.

Eskimo Point Lumber Supply and Airport Services Ltd. has been northern owned and operated since 1978 serving the Kivalliq Region, Nunavut. We are your Northern General Store Our Services include: • Freight forwarding and Expediting • Mechanical services • Gravel hauling • Heavy equipment rentals and truck rentals • Project Support: labour, equipment & supplies • Fuel Distribution: Bulk and drummed fuel Accommodations - Katimavik Suites Hotel

“The area is very undermined, which is a good thing,” says Mahadeo. The day we spoke with Mahadeo, the Pistol Bay camp was being closed until next summer, after a very successful exploration period and the completion of the first phase of drilling. The assays are currently in the laboratory for analysis. CB www.northquest.biz

204

Fundy Tidal Current thinking

ENERGY

206 ENERGY Â&#x2022; Fundy Tidal

FTI President Dana Morin

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 207

When the government of Nova Scotia set new regulations under its Electricity Act for almost 20 per cent of the provinceâ&#x20AC;&#x2122;s electricity to be generated from renewable energy by 2013, in an effort to reduce dependence on coal, Fundy Tidal was drawn in.

208 ENERGY Fundy Tidal

NOVEMBER 2011 The Canadian Business Journal 209

Fundy Tidal Inc. (FTI) was established in 2006,

National treasure

a year before the government’s avowal, and

The Bay of Fundy is one of the greatest natural

is committed to capitalizing on the renewable

wonders in the world, with enormous tides that

energy opportunities at its doorstep. FTI, a

carry 100 billion tonnes of water during each

community-based independent power producer,

tide cycle. To put this into perspective, that is

uses the world famous tidal currents of the

more than the flow of all the world’s freshwater

Grand and Petit Passages of the Bay of Fundy,

rivers combined, and generates forces equal

N.S. to generate clean electricity. Based in

to 800 locomotives or 25 million horses. The

Westport, N.S., many of FTI’s board of directors

energy potential in the Bay is enormous, and,

and shareholders were involved in founding the

today, largely untapped.

Scotian WindFields network of N.S. Community

According to data released by the Nova

Economic Development Investment Funds and

Scotia government, “When fully developed, new

operating companies.

in-stream tidal technology has the potential

210 ENERGY Fundy Tidal

to generate 300 megawatts of green, emis-

“Recent studies conducted in partnership

sion free energy from only two locations in the

with Acadia and Dalhousie Universities indicate

Bay of Fundy—enough energy to power close to

the site has an excellent tidal energy resource

100,000 homes.”

and other highly favourable characteristics. The

“Indeed, the Electric Power Research Insti-

province, through the OEER, has just commis-

tute has verified that the Bay of Fundy has the

sioned the South-West Nova Tidal Resource

strongest tides in North America, and the Bay of

Assessment which will further quantify this

Fundy is perhaps the most potent site for tidal

resource and potential sites for development

power generation in North America,” says , who

over the long-term. The project will be built in

works closely with the provincial government and

phases based on environmental sustainability

stakeholders to develop sites in the Bay of Fundy.

and available capacity on the local distribution

FTI and the Province of Nova Scotia are in the

system. With support from the community, the

final stages of establishing the first small-scale tid-

project will expand to supply predictable elec-

al Community Feed-In Tariff (COMFIT) for projects

tricity to Brier and Long Islands and mainland

majority owned by eligible community proponents.

distribution systems.”

With energy giants such as Nova Scotia Power Inc.

Currently, FTI has submitted applications for

and OpenHydro and Alstom working in the Minas

five locations totalling three megawatts of power;

Passage, FTI has its sights set on Grand and Petit

three in the Digby County areas where three

Passages and the Digby Gut, “We are focused on

of the main tidal passages are located (Grand

smaller projects connected to distribution systems

Passage, Petit Passage, and the Digby Gut), the

in a different area of province, the entrance to the

remainder on Cape Breton Island on the other

Bay of Fundy,” says Morin.

end of the province.

NOVEMBER 2011 The Canadian Business Journal 211

“There is a distinction between larger utility-

increasing its capacity and greater connectivity

scale projects and smaller distributed genera-

for distribution, not built to gather and distrib-

tion projects, but both are viable and worthwhile

ute energy. The total power that is requested is

endeavours. In the grand scope of things, three

100 megawatts under all of these feed-in tariffs

megawatts of tidal power is not a giant thing,

from communities, “less than five per cent of our

but at a community level, this is certainly a huge

power usage in the province, so it is, again, a sig-

project, with great social economic benefits to

nificant contribution, but not at the scale hoped

the community. The government’s defines small-

for in the larger Bay of Fundy area with excess of

scale tidal as the use of tidal generators less

hundreds of megawatts of power there.”

than 500 kilowatts in size that are connected

With a term goal to produce about 20 mega-

to the distribution system, i.e., the community

watts of tidal power over the next five to 10 years

level,” says Morin, “and that suits our portfolio.”

and a company vision to “proactively create opportunities in the emerging marine energy sector with

“We have a vision for the province to reduce the use of coal with biomass, solar, wind, and tidal energy. What we do have is the largest tidal resource in the world that has the potential to supply the majority of this power.”

a focus on locally-owned and operated ventures to ensure economic development opportunities, wherever possible, benefit local communities and businesses,” FTI is a Canadian energy producer that is putting tidal power on the grid. CB www.fundytidal.com

Morin is working to see improvement in the province’s small scale distribution system by

A step closer to Sustainable Ene

By The Honourable Perrin Beatty, President and Chief E

to a Canadian ergy Strategy?

Executive Officer, The Canadian Chamber of Commerce

ENERGY

214 ENERGY Â&#x2022; A step closer to a Canadian Sustainable Energy Strategy?

Energy security is directly linked to economic competitiveness and job growth.

vibrant energy industry that would help grow our economy and meet our future energy needs. We are still waiting, but see signs of progress! More

The energy sector is a cornerstone of our pros-

recently, a number of business and poltical lead-

perity. It plays a critical role for Canada in serving

ers have become more vocal about the need for an

the energy needs of all Canadians and in gener-

overall energy strategy. What we have in mind is not

ating major income. There is virtually no country

simply a federal government policy to be imposed

in the world that does not look at our energy

on the regions, but a truly national strategy in which

inheritance with envy.

all regions are full partners. Nor must its purpose

In 2009, the Canadian Chamber of Commerce

be to simply transfer the resource wealth from one

released a report, Powering Up Canadian Prosper-

region to another, but to respect our constitution

ity, that called for all levels of government to come

and to recognize that rising prosperity in one region

together with stakeholders, including the busi-

will also lead to opportunities in the rest.

ness community, to develop a Canadian Sustain-

Energy ministers from across the country

able Energy Strategy-a strategy that would ensure

are meeting in Kananaskis starting this week-

that Canada would continue to have a strong and

end to discuss the development of a Canadian

NOVEMBER 2011 The Canadian Business Journal 215

Energy Strategy. Leading up to that meeting,

have the opportunity and the responsibility to de-

we at the Chamber have continued to send our

liver on their commitment to Canadians to create

message to governments on the business com-

jobs and foster prosperity. Energy is an essential

munity’s position on what must be included in

part of the formula.

any strategy at the national level. It is vital that

The Canadian Chamber will continue to

they understand how fundamental energy is to

stress to the government how important this is-

the competitiveness of every Canadian business

sue is to business. We have been encouraging

and to the success of our entire economy.

all businesses to look at their own energy needs

But beyond the strategy, the question we

and ask themselves how they can contribute to

have to ask ourselves is: does the federal gov-

the strategy, including by working together on

ernment have a role to play in promoting and as-

innovations that benefit both Canada’s energy

sisting the energy sector? And also, how can the

producers and its users.

Canadian Chamber of Commerce best continue to play a role in all of this? With the stability of new majority government in Ottawa, Prime Minister Harper and his team

Canada’s energy future is in our hands and the time for action is now. CB

216 ENERGY Â&#x2022; Aboriginal Pipeline Group

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 217

216

Aboriginal Pipeline Group

Aboriginal representation restarts long awaited pipeline

ENERGY

218 ENERGY Â&#x2022; Aboriginal Pipeline Group

Stalled for decades by Aboriginal opposition and economic uncertainty, the Mackenzie Pipeline Project has finally been approved by the National Energy Board (NEB), and represents the time for prosperity and industry for Northern Canada, and our national energy portfolio.

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 219

220 ENERGY Aboriginal Pipeline Group

When the 1,200-kilometre pipeline system, designated to link Mackenzie Valley’s northern natural gas fields to North American markets was

disappointed, but I think all of us will say now in hindsight it was the right thing to do.” Carmichael contends that Aboriginal groups

first proposed in 1970s, Judge Thomas Berger put

were neither ready nor prepared for the pipeline

a halt to it. Berger, who has built a legacy for ad-

back then, and a lot of the work probably would

vocating rights for Aboriginal groups and people,

have gone to southern companies rather than

recommended “on environmental grounds, no

the northern businesses because of that. “Judge

pipeline be built and no energy corridor be estab-

Berger said the Aboriginal people need to get the

lished” until native land claims are settled.

land claims settled before this huge development

What was meant to be a 10-year postpone-

goes forward, and there is no truer statement, be-

ment turned into a much longer hiatus. Momen-

cause we are in a much better negotiating position

tum for the project reignited in 2000 and, after

now than we were back then,” says Carmichael.

years of regulatory review, was given the go-ahead

“Our land claims allowed us to become partners in

by the NEB in March.

this project.”

Fred Carmichael is Chairman of the Aboriginal

These land claims, along with an articulated

Pipeline Group (APG), which works on behalf of

vision for involvement in major development

the Aboriginal groups along the Mackenzie Valley

projects, modern business ethics, and advances

corridor. He remembers when the pipeline was

in environmental science has culminated in the

originally stalled. “There was a lot of mixed feel-

NEB approving the project and the 264 environ-

ing on it at the time,” says Carmichael. “Some

mental, financial and cultural conditions at-

people, especially in business community, includ-

tached to the Certificate.

ing myself who was in the airline business, were

“The six-year regulatory process is now

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 221

222 ENERGY Aboriginal Pipeline Group

behind us. This decision is a huge step forward, both for the project, for our Northern stakeholders and for Canada as a nation,” says Carmichael. According to APG, “After completing one of the most extensive regulatory proceedings in Canadian history, the NEB decision confirms the need for the project and the broad environmental and socioeconomic benefits the pipeline will bring to our nation. The APG…negotiated by Aboriginal people for Aboriginal people now has the right to secure a one-third ownership interest in the Mackenzie Valley Pipeline. We remain committed to our mandate—to maximize the long-term financial return to the Aboriginal Groups of the N.W.T. through ownership in the pipeline. The people of the north are behind this project and APG will continue working toward the day when Mackenzie gas flows south, and economic benefits flow north. “And these benefits are significant,” said Carmichael. “For the Mackenzie Valley and Beaufort Delta regions, this project is the only realistic way to create an economic future and an independent and self-sufficient future for northern people.” Carmichael says the agreement has the full support of the Inuvialuit, the Gwich’in and the Sahtu, who collectively form the APG, and whose land the pipeline goes through. “We’ve had such support because people now are full partners

NOVEMBER 2011 The Canadian Business Journal 223

I would say that once they realized that we are in this for the long-term, and in order for them to build a pipeline across our land, they need us. “The consortium knows they are not going to be building anything across our land, for that large a project, without involvement of Aboriginal people.” Among the conditions of the agreement is employment security for Aboriginal communities, with $1 billion of work in the corridor guaranteed for Aboriginal businesses, as well as associated training programs. Carmichael sees this as an opportunity for northern communities to regain some independence from government after the decline in the in the project and our mandate is clear and very

hunting and trapping industries necessitated

simple; that we ensure our Aboriginal people ob-

government assistance. “The only way to get out

tain a sustainable, long-term revenue stream from

from under [government dependence] is to build

our ownership interest in this pipeline.”

an economic base. The APG shows all Aboriginal

Carmichael said negotiations with the produc-

people across the country the benefits in becoming

ers, a consortium made up Imperial Oil, Exxon

partners with non-Aboriginal businesses in large

Mobil, Conoco Phillips, Royal Dutch Shell, was

projects such as the Mackenzie Valley Pipeline. This

“tough”, but respectful. “This is a business deal

is a step toward our own self-sufficiency, regaining

and we are talking to very experienced business

our pride, and building our own industry, and that is

people who have a good track record but I would

the only way to create a better society.”CB

say that they have been very good and very fair. It’s business and we have to be on our toes and make sure we get what we want—we didn’t get this deal by them saying “here you go”. Overall,

www.mvapg.com

Northern Promises

By John M. Medeiros, Research Director, CBJ

There is something about the air in the Western Arctic; rarefied, atavistic - as if breathing it for any length of time unburdens one of self importance and distils in you a visceral, elemental sense of the place. The smell; raw, pure and like nowhere else Iâ&#x20AC;&#x2122;ve been. Like the stark beauty of the land itself, rubbed raw of the human condition, the scent of the place is forever trapped in the meniscus of my memory. Similarly, the people that call this place home have left an indelible mark on my psyche too. The Mackenzie Delta Region of NWT, part of Canadaâ&#x20AC;&#x2122;s largest river system and second largest arctic delta in the world, is a vast and primal labyrinth of channels,

226 ENERGY Northern Promises

lakes, and low lying alluvial islands, covered by

(GCLCA) in 1992. And again in 1994 with the

stunted black spruce, becoming sparse and thin-

Sahtu Dene and Metis Comprehensive Land

ning as the river mingles with the Arctic Ocean

Claim Agreement. To date, only the Dehcho First

near Tuktoyaktuk. It holds an enormous energy

Nations has yet to sign, and their 34 per cent

reserve—a resource estimated at more 15.4 Tcf

interest “will be held for them if and when they

(trillion cubic feet) of natural gas in the onshore

choose to participate.”2

and shallow water areas of the Delta—a tract of

In March 2011, the Harper government gave

2.2 million hectares (5.5 million acres) about the

the federal green light to begin the construction

size of the state of New Hampshire. The already

of the project. But in July, Shell Canada pulled

developed and proven finds include more than

up stakes and is looking to sell its 100 per cent

250 million barrels of oil and 11 trillion Tcf of natu-

ownership of the Niglintgak field, which alone

ral gas and condensate. To give these numbers

holds and estimated 800 bcf (billion cubic feet).

some perspective, the average Canadian home

Hot on the heels of Shell’s decision, KOSGAS—Ko-

consumes less than 100,000 cubic feet of natural

rea Gas Corp., the state owned and the globe’s

gas annually. It’s a staggering number. And an

largest importer of LNG (liquefied natural gas) has

equally incredible number is the expected infra-

expressed interest and is rumored to have made

structure costs to fully capitalize and bring to mar-

an offer on Niglintgak, and an outright purchase of

ket one of the largest and undeveloped resources

Shell’s 11 per cent interest in the overall project.

of its kind on the planet - $16.2 billion CAN. When Justice Thomas Berger first tabled his

For now, the train is still on the track. Harper is at the throttle and in early 2012 we should

infamous report back on June 9th 1977 examin-

hopefully see the start-up dates announced for

ing the impact of the proposed Mackenzie Valley

the 1220 km (758 mile) mega-pipeline.

Pipeline Project (MVPP), it was billed then as “the

But this piece is not about numbers. Rather;

biggest project in the history of free enterprise.”1

it’s about the people, kinship, and community.

During the 30 plus years of negotiations, Canada

It’s really about a promise of the future—a future

has made historic strides forward in the settle-

that will forever reshape the North. And it’s a

ment of native land claims; first with the Inuvialuit

personal reflection on character—stalwart, bold,

Land Settlement Act of (ILS) 1984, followed by the

of resolute and unyielding tenacity—of those who

Gwich’in Comprehensive Land Claim Agreement

I still call my friends today.

NOVEMBER 2011 The Canadian Business Journal 227

People like O.D. Hansen, a principle with the

this issue gathered a head of steam and our piece

Aboriginal Pipeline Group (APG) and with whom I

on APG, the Company he chairs gained purchase.

shared some office space back in the day. To-

He is a true icon of the North.

gether we helped developed the management

The real story of the MVPP is one of fealty; of

protocols for Ikhil discovery and the ensuing

community and respect for the land and of those

Inuvik Gas Project.

who came before. Of a People who understand,

And O.D.’s brother Frank; a Professional

without question, that the needs of the individual

Engineer and President of Kavik-AXYS Inc. A

are ephemeral at best. The truth of the story will

successful entrepreneur in his own right and

be told by the children, who will remember best,

equally know around the Delta for his business

not just achievements that can be counted, but

acumen as for the retrofit 512 (16’x32’ cabin -

of the shaping of their path forward.

typical of the first houses built during the ‘50’s

So, this is for the Hansen brothers and their

when the notion for the town of Inuvik was know

extended clan; two from a family of thirteen, born

as “East-3”) strapped to his river barge, in which

on the land in a blink of a generation not far

he plies the waters around town. If you’re lucky,

past. This is a word too, for Kurt and his young

his wife Sandy can serve up an onboard and

family, for the Wainman girls. And finally for Fred,

mean Caribou stew.

who offered his thanks to me for what The Cana-

Like Kurt Wainman owner of Northwind

dian Business Journal is doing for “our people”.

Industries and general contractor—a flinty, unvar-

In turn, we here at George Media thank the

nished aficionado of anything with fuel injection.

people of the North for their resolve, their com-

He travels in the same circles with the likes of

mitment, and for putting the needs of the People

Jesse James, host of TLC’s ‘Monster Garage’—for-

before the needs of the few. CB

mer husband of actress Sandra Bullock. Father, family man and of late, Kurt was part of the History Channel’s out-of the-park success story—‘Ice Road Truckers.’ And for Fred Carmichael, who I meet briefly during my tenure in the North, but have since garnered an even greater respect, as the planning of

John Medeiros spent a year in the Mackenzie Delta and directs the Energy - Oil & Gas Market for the IRJ / CBJ.

1. CBC News—Business “Mackenzie Valley Pipeline- 37 years of negotiations” 2. ibid.

Building mor for l PPP Canada CEO John McBride

ppp canada

ore, less

Canadians are fortunate to enjoy a high quality of life. Itâ&#x20AC;&#x2122;s likely that we are so accustomed to having fresh tap water to drink, safe roads on which to drive and buildings in which our legal and government functions carry out every day, that the great cost and resources that go into these services is not considered. That does not negate the fact that the upkeep and addition of public infrastructure costs billions of dollars to all three levels of government annually. Given the challenge of getting the most value for its money, governments on all three levels are recognizing the benefit and value of partnering with the private sector in Public Private Partnerships (P3) to â&#x20AC;&#x153;build more for less.â&#x20AC;?

230 INFRASTRUCTURE PPP Canada

From left to right: John McBride, CEO PPP Canada, The Honourable Michael de Jong, BC Minister of Health and MLA for Abbotsford West, Fire Chief Don Beer, City of Abbotsford, The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway and Member of Parliament for Abbotsford, His Worship, George W. Peary, Mayor of Abbotsford.

Public infrastructure makes Canada the

“Since the launch of the P3 Canada Fund in

powerful country it is, and impacts the lives of

2009, PPP Canada has seen growing interest

Canadians daily. As one recent example out of

from municipalities that are considering P3s as

many, with the P3 approach, the City of Barrie

alternative means to delivering community-based

will receive a new transit facility on time and on

infrastructure,” said Greg Melchin, Chair of PPP

budget, which will provide higher quality bus op-

Canada Inc. “The City of Barrie is demonstrat-

erations and services to Barrie residents.

ing another innovative P3 approach to delivering

NOVEMBER 2011 The Canadian Business Journal 231

projects, the goal of which is “to ensure the effective use of P3 where they produce value for taxpayers,” says PPP Canada CEO John McBride. An alternative method to using public coffers for procuring large and complex public infrastructure projects, PPP Canada was created to spearhead the federal government’s P3 efforts and leads the government’s commitments, outlined in a series of budgets, to be a leader in P3. PPP Canada is divided into two main business areas, the P3 Canada Fund, a merit-based program which encourages the use of effective P3s by provinces, territories, municipalities and First Nations, and the advancement of P3s by the Federal government itself. In both instances, the P3 provides value for tax payers by a number of advantages. “Most importantly, P3s transfer risk of building medium and large scale projects to the private sector,” says McBride. The design, build, finance, maintenance and operation of a project’s entire life is handled by a private sector partner, the result of which means risk isn’t dispersed over multiple parhigh quality services that will meet the needs of

ties with less or no responsibility of cost of building

Barrie residents now and in the years to come.”

and operating. “Rather, we are asking the private sector to take those types of risks. And not only are

What are P3 partnerships?

they saying they will take them but they back stock

P3 partnerships are an integral component for

that by backing it with their own money.”

upholding Canada’s high standard of living through building and maintaining large scale infrastructure

In addition to risk-sharing, P3 contracts offer better cost benefits, are more often

232 INFRASTRUCTURE P3 Canada

NOVEMBER 2011 The Canadian Business Journal 233

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completed on time or early and optimise

Canada has focused on increasing Federal gov-

resources and innovation.

ernment participation in P3 projects, achieving

“The advent of P3s has driven changes with-

significant milestones with the closure of the

in industry and government. For industry, it has

Communication Security Establishment Canada’s

required the development of integrated solutions

(CSEC) Long Term Accommodation project, a

drawing together leading expertise in the design,

$876 million dollar state-of-the-art security facil-

construction, finance and operation of public in-

ity, $176 million less than had it been a tradition-

frastructure. For governments, it has required de-

al crown construct project.

fining what services Canadians expect from their

According to CSEC, it was determined that

public infrastructure and using the disciplines of

the P3 approach would be the most viable solu-

competition and capital markets to ensure the

tion for the CSEC project. This approach creates

private sector delivers,” says Melchin in the PPP

a partnership which allows the public sector to

Canada annual report for 2010-11.

leverage private-sector innovation and efficiency

Now in its third year of operation, PPP

to deliver major public infrastructure projects.

234 INFRASTRUCTURE PPP Canada

“The private sector is responsible for the design and construction, financing and mainte-

their problem; there is no paying until the asset is delivered.”

nance of the facility over 30 years,” stated the

Which products are right for PPP Canada?

CSEC website. “In the case of the CSEC project,

“It’s not the silver bullet for all projects,” says Mc-

this approach provides compelling advantages

Bride. “We have to compare the advantages of

over the traditional Crown-construct approach,

putting capital at risk. For example, if the city of

such as greater certainty of on-time delivery of

Ottawa wanted sidewalk repairs, there is no need

this critical building, access to private-sector

to put capital at risk because it is a straightfor-

capital, and the transfer of certain risks, such as

ward project.

financial and schedule overrun. McBride elaborates, “I’ll give you an example:

“But building a brand new hospital is more complex, tends to be larger, tends to be in areas

in a P3 project, there is no cost to the taxpayer

outside of the core competencies of government,

until the asset is completely built, so it’s [private

and would benefit from private sector participa-

sector] equity at risk, and any cost overrun is

tion. The underlying question is always ‘Does

NOVEMBER 2011 The Canadian Business Journal 235

it produce value for money as a P3?’ We only

“Our target is to leverage $1 billion infra-

support and produce P3s that produce value for

structure a year. PPP Canada funds 25 per cent

taxpayers.”

of a particular project, and I’d like to see us

As a young Crown Corporation, PPP Canada is building up momentum, having, under McBride’s guidance, received 121 applications in

invest more than $250 million this year to over a billion of infrastructure projects,” says McBride. “Governments know that infrastructure is

2011, up from 73 in 2010, and 20 in 2009. The

necessary for the health and success of their

federal government has also demonstrated its

countries, and the old ways of doing it are not go-

support by way committing that all future fed-

ing to be sufficient to meet the challenges.”CB

eral projects over $100 million be mandatorily assessed for P3 suitability. Canadians will get more value for their tax dollars, the private sector benefits from greater activity and our reputation for world-class infrastructure grows.

www.p3canada.ca

Soprema

Has you covered 236

CONSTRUCTION

238 CONSTRUCTION Â&#x2022; Soprema

Richard VOYER as General Manager of SOPREMA Canada

NOVEMBER 2011 The Canadian Business Journal 239

An international manufacturer that specializes in producing a range of waterproof products used in the construction and engineering sectors, Drummondville, Que.-based Soprema conducts business in more than 80 countries worldwide.

Focusing on the future of the construction sector, Soprema’s product supply highlights environmental protection and sustainability in manufacturing quality products to meet environmental regulations and ‘green’ initiatives.

Leading the waterproofing sector One of the first organizations involved in roofing

Internationally headquartered in France

manufacturing to establish an Environmental

since its founding in 1908, Soprema opened its

Management Program, Soprema is ISO-14001

doors to Canada 70 years later, in 1978, and

certified, recognized for its environmental man-

today employs more than 360 people at its two

agement practices. The company was also the first

major Canadian sites.

of its kind as a modified bitumen manufacturer.

240 CONSTRUCTION Soprema

Soprema manufactures and installs waterproof-

Soprema has worked to promote the benefits of

ing membranes for many Canadian companies.

sustainable roofing through a two-pronged ap-

Reads the company website, “Choosing Soprema

proach of renewability and reusability.

means choosing reliability—a decision to be protected from any problem.” In addition to manufacturing waterproofing products, Soprema aids in the development of forward-thinking green roof technology in a variety of roof building sectors. Soprema has

“Make a roofing system last as long as possible to delay its removal to landfill for as long as possible and reduce the use of new resources and materials,” summarizes the Soprema website.

emerged as the industry-leading experts, the frontrunners in the waterproof roofing field. “This applies to Soprema production facilities

Soprema offers the highest of industry expertise from dozens of professionals. These techni-

worldwide,” reads the company website. “Euro-

cians offer vital product information relating to

pean research facilities are developing products

product design, installation, maintenance, and

made from renewable resources and recycled

roofing systems renovation. Clearly, Soprema has

materials to reduce Soprema’s carbon footprint.”

set the bar in the waterproofing industry.

Today, sustainability has emerged as a primary

The products offered by Soprema have

focus in the construction industry, however, it is

proven to be valuable in more ways than one in

a focus that has long been part of the Soprema

that, through waterproofing technology, these

mandate, even before it became mainstream.

products also protect the investment of building

NOVEMBER 2011 The Canadian Business Journal 241

fa b r i cs High strength. Thermally stable. Dimensionally stable. Easy to mold. Holds pleats. Non-fraying. Breathable. Can laminate and emboss. Accepts dyes and inks.

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242 CONSTRUCTION Soprema

owners by prolonging the product quality for as long as possible.

Sustainable roofing system Leading in environmental improvement and green roof technological development, Soprema has established long-term objectives of designing an overall “sustainable roofing system”, with a goal to keep these systems in place as long as sustainably possible. Product component materials are prolonged, or recycled, diverted from landfills, while products are also reused rather than using new product materials. Highlighting some of the many products

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offered by Soprema, the website states, “The weight of sopranature green roof systems has been sufficiently reduced to allow garden roofs

are made with SBS modified bitumen and include

on most existing buildings. In protecting the envi-

a reinforcement of non-woven polyester or glass

ronment, Soprema’s Coletanche geomembrane

mat,” the website continues. “Developed by a

systems are used in geotechnical, environmental

seasoned research and development team, the

and hydraulic applications to retain liquid and

unique formulation and superior quality provide

solid contaminants, including nuclear waste, to

exceptional durability and resistance to severe

protect groundwater resources, to control water

weather conditions.”

runoff and pollutants, and to provide biogas protection, as well as store potable water. “Over the last 30 years, SBS modified bitu-

LEED certification The industries supplied by Soprema are moving

men technology has proven by far to be the most

more and more toward valuable environmental and

reliable technology in the waterproofing industry.

energy sustainability initiatives. As an example, an

Most Soprema roof waterproofing membranes

increasing number of private sector companies, as

NOVEMBER 2011 The Canadian Business Journal 243

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well as governmental organizations, strive to imple-

should be partners working together to help

ment Leadership in Energy and Environmental

protect the environment by making sustainable

Design (LEED) policies into their designs, where the

development a priority.

key goal is to achieve the best level of sustainability.

“Energy economy, sustainability, efficient

LEED certification is industry recognized for

utilization of raw materials and the reduction of

green building efforts, in addition to being a rec-

waste must guide roofing design and specifica-

ognizable achievement through third party reviews

tions. More precisely, designing for sustainability

and many new government-related environmental

must include materials and details which ex-

incentives aimed toward improved sustainability.

tend the useful lifetime of a roof and which are

These organizations contribute to a growing green-

matched with a sustainable recovery plan.” CB

building knowledge base that is worldwide. The Soprema website concludes, “In the future, manufacturers, designers and installers

www.soprema.ca

Whitecap Developmen

Build it and they

nt Corporation

CONSTRUCTION

y will come 244

246 CONSTRUCTION Â&#x2022; Whitecap Development Corporation

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 247

As the economic arm of Whitecap Dakota First Nation, Whitecap Development Corporation funds investment and business development in Whitecap, Sask. Beginning in the mid-1990s, Whitecap Development Corporation has seen plenty of development, progress, and projects over the years. Dakota Dunes Resort In recent years, major developments have occurred in the form of the Dakota Dunes Resort, which includes Dakota Dunes Golf Links, developed about seven years ago. When developed, Dakota Dunes was ranked as the best new golf course in Canada. Today, it remains with the Top 20 rankings nationwide for public golf courses. A large, lake style course, the terrain of Dakota Dunes is rich with sand, uncommon for the area, ideally located just south of the provincial business hub of Saskatoon. The course offers plenty of natural beauty and space, developed over more than 240 acres.

248 CONSTRUCTION Â&#x2022; Whitecap Development Corporation

NOVEMBER 2011 The Canadian Business Journal 249

A project that includes many phases, next to follow was the development of the Dakota Dunes

to the area, according to Darrell Balkwill, CEO of Whitecap Development Corporation.

Casino, a $61 million investment that has now been in operation for four years. Certainly proving to be a very profitable venture, the Dakota Dunes Casino is also themed to represent its surroundings of the First Nations and its community. Collectively, Dakota Dunes Golf Links and the Dakota Dunes Casino bring in more than 1 million tourists annually, creating plenty of economic prosperity and job creation for the region and Whitecap Development Corporation. Dakota Dunes Golf Links and the Dakota Dunes Casino represent just two of the many developments occurring under the vast Whitecap Development Corporation, however.

“With the tourism traffic and the additional people living in the residential, that will drive more retail amenities too. That’s part of the master plan within the community,” Balkwill explained. “The bigger picture for tourism is that we have developed a regional tourism strategy with the different rural municipalities and towns, the City of Saskatoon, and we’ve developed a corporation called Diefenbaker Destination Developments.”

The third stage of development is the Dakota Dunes Hotel, a 161-room, full service accommoda-

Diefenbaker Destination Developments

tion. Complete with spa, a restaurant, a pool, and

Diefenbaker Destination Developments is named

meeting facilities, it is an investment that Whitecap

after Lake Diefenbaker, a body of water south of

Development Corporation hopes to break ground

Whitecap which offers one of North America’s rare

on within the next six months. Tied-in with this is

fishing lakes. Tying in with Whitecap Development

a resort-residential phase, with the current plan-

Corporation, Diefenbaker Destination Develop-

ning hoping to develop 355 residential units—a

ments offers a regional focus to the area. As such,

combination of condominiums, townhouses, and

the highway which runs from Saskatoon, through

single family homes—which will only further add to

Whitecap, to Lake Diefenbaker has been appropri-

the economic feasibility and increased tourism of

ately renamed as Chief Whitecap Trail, paying hom-

the Whitecap area. The resort-residential develop-

age to the First Nations community. The renaming

ment is something that will also bring more retail

also plays a part in the region’s tourism strategy.

250 CONSTRUCTION Â&#x2022; Whitecap Development Corporation

Job creation in Whitecap

creates about 60 jobs every year in golf course

As with any major economic developments, the

layout and maintenance.

developments of Dakota Dunes Golf Links and Dakota Dunes Casino, and the future development of Dakota Dunes Hotel, as well as residential, have allowed for plenty of job creation; combined, the golf course, casino, accommodations, and retail has created more than 650 jobs for the community, and The Dakota Dunes

With any business development and investment, the No. 1 goal is profitability. Economic prosperity is critical, and tourism and employment generation for the whole region is an added bonus.

Hotel will add another 100 jobs as well. Project development also creates short-term work, such

Today, Whitecap Development Corporation

as construction jobs. Similarly, Dakota Dunes

works on the latest addition of its master plan to

Golf Links, the host of a major Canadian tour

drive both recreational tourism and cultural tour-

event in each of its four years of operation,

ism to the community. More than 1,000 acres of

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 251

Congratulates

The Whitecap Dakota First Nation and Chief Darcy Bear for their leadership and vision in the development of the

DAKOTA DUNES

RESORT AND CONFERENCE CENTRE

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252 CONSTRUCTION Whitecap Development Corporation

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WHERE INSPIRED DESIGN BECOMES REALITY

NOVEMBER 2011 The Canadian Business Journal 253

land in the community have been earmarked for

Dakota Technologies Corporation, a research and

commercial developments.

development corporation specializing in vehicle design. Both companies are part of a focus to attract

“We’re really starting to build a sense of community here. There is a lot of input from the community in all the developments that we pursue here,” Balkwill said. “We have a lot of community meetings, we take all of our projects to the community to make sure that they are aware, and that the community is supportive of the projects that we are proposing.”

aerospace and defense companies to Whitecap. To date, Whitecap Development Corporation has invested $12 million in infrastructure, communications, water, sewer, natural gas, and power to accommodate business development. The goal remains to attract investment and dollars to Whitecap. Balkwill summarized, “We’ve spent a lot of time and money trying to establish a solid business development and investment environment at Whitecap Dakota First Nations. So far, all of our investments have been in partnership. We

Whitecap Trail Business Park

have brought in other partners and that’s what

While the focus remains on developing and exe-

we’d like to continue to see, more partnerships

cuting its resort tourism strategy, Whitecap Devel-

and more investments by outside groups and

opment Corporation plans to diverse its strategy

business development by outside groups. We are

to include manufacturing, setting aside about 40

open for business.” CB

acres of land to be developed into a business park area, known as Whitecap Trail Business Park. Currently under market analysis and feasibility, the park project hopes to attract manufacturing and light industrial work. Getting the ball rolling, Whitecap Development Corporation has established two of its own businesses: Dakota Vehicle Systems, which markets vehicles for military, homeland security, and security monitoring, and

www.whitecapdakota.com

Centric H

Strategic acquisitions for a bett

HEALTH CARE

Health 254

tter healthcare solution

256 HEALTH CARE Â&#x2022; Centric Health

The dynamic growth of Centric Health over the last few years is particularly impressive. This highly diversified healthcare company has had a significant string of acquisitions that are aligned to help achieve a strategic vision. A unique presence in the Canadian market, Centric Health is paving the way for a future era of healthcare reform. This month, we spoke to President and CEO Daniel Carriere about how Centric Health is achieving its success as Canadaâ&#x20AC;&#x2122;s premiere healthcare company.

Daniel Carriere, President and CEO

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 257

258 HEALTH CARE Centric Health

Centric Health is a publicly traded company

a significant growth since inception. How does

and has a business model focused on the stra-

Carriere account for its success? “I think it’s our

tegic acquisitions of healthcare companies. Its

focus and our vision as a Canadian corporation,

current market cap is $225 million to $270 mil-

which is to become Canada’s premiere health-

lion, on a pro forma basis, and Carriere predicts

care services company that provides innovative

hitting revenues in excess of $300 million—

solutions that focus on patients first.”

NOVEMBER 2011 The Canadian Business Journal 259

serve as strategic advisors to Carriere and the Centric Management Team.

Beneficial business model The business model has a benefit for both healthcare providers, as well as patients. By acquiring companies that are truly ‘best in breed’, Centric Health is able to provide its customers with exceptional health care options. “Our approach is to really look at companies who are the absolute best at what they do,” Carriere explains. “We want to work with those people who have extremely high patient care expectations, and also very high ethical standards.” “We focus on top line and bottom line, ensuring that we have a value-added component that we can offer companies, which is our expertise in other areas such as Finance and Human Resources. We have that critical mass to offer so that those companies can focus less on administrative and financial tasks and more on patient care. We are focused on creating ongoing efficiencies. It’s good for the patients and good for business.” The vision was initially developed by Dr. Jack Shevel, founder of NetCare, a South African

Rapid growth, major acquisitions

company he built into one of the leading private

The Centric Health plan is to grow rapidly through

health care companies in the world. Dr. Shevel

acquisitions, which it has been doing at a consid-

and his team at Global Health Investment Solu-

erable pace during the last few years. In January,

tions are principle investors in Centric Health and

Centric Health added Surgical Spaces, which is a

260 HEALTH CARE Centric Health

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focus of elder care, physiotherapy, and rehabili-

nipeg. In May, it added Lifemark Health, which

tation. And just a week prior to this interview, it

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was announced that Centric Health had acquired

marking a key moment in the company’s history.

MIC, a large diagnostic company with 16 loca-

“That was a transformational acquisition and a

tions across the Greater Toronto Area.

turning point for the company,” says Carriere. Since that time, Centric Health also acquired

Centric Health is well-diversified across Canada. For example, with its acquisition of Lifemark,

a surgical company called Bluewater Surgical

it has 104 clinics across the country. “These are

with locations in Sarnia, London, and Windsor,

just some of the examples that indicate how our

Ont. It acquired a speciality pharmacy operation

growth focus will help us move forward,” Carriere

with 33 locations across Ontario, focused spe-

explains. It has been an aggressive growth strat-

cifically on methadone clinics. An orthotics com-

egy, but a successful one. “We want to complete

pany, Performance Medical Group, fits in with the

one major acquisition every quarter and we have

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 261

262 HEALTH CARE Centric Health

NOVEMBER 2011 The Canadian Business Journal 263

been on track with that.” Centric Health plans to match that goal will many other minor acquisitions that complement the overall strategy of providing better healthcare. “But we are not just a roll up company!” says Carriere, who has created a business development unit to deal with Mergers and Acquisition activity, and also to look at the integration expectations surrounding strategic acquisitions. “If we can’t integrate all of the components, we can’t create a seamless model of care. We want to maximize top line growth and efficiencies derived from the new partnerships.”

Centric Health also has a firm idea of where it stands in the market. “We don’t want to compete against a Shoppers Drug Mart,” says Carriere. “We’re focused on a niche market in regards to pharmaceuticals such as delivering medications to elderly people and nursing homes, and we’re looking at repeat medications that are prescribed on a regular basis, and making sure our drug distribution service is the safest and most efficient in the country.”

Future goals For the future, Centric Health will continue to

Innovative strategies such as this are sure to

move forward with its acquisition strategy, fo-

take Centric Health and its investors into a suc-

cusing on its current pillars of care including

cessful and profitable era. “We expect in two to

rehabilitation and physiotherapy, eldercare, medi-

three years we’ll be a $2 billion market cap com-

cal assessment, surgery, diagnostics, pharma,

pany,” Carriere notes. An ambitious goal consid-

homecare and home health. Centric Health al-

ering the current market cap of $225 million, but

ready has a large market share in the elder care

he is completely confident of success.

business, covering about 449 homes and 45,000

“Our investors have placed their trust in us and

beds across Canada, but is looking to move be-

we have given them a return highlighting a com-

yond that and increase its size and scope within

pounded annual growth of more than 20 per cent.”

the homecare business. “We think that there is going to be a tremendous focus on homecare for the elderly, and keeping them out of the most expensive part of care which is hospitals.”

http://allegrohealth.com

Brazil Canada

Chamber of Commerce

264

PRODUCTS & SERVICES

266 PRODUCTS & SERVICES Â&#x2022; Brazil Canada Chamber of Commerce

The Brazil Canada Chamber of Commerce works to strengthen international relations and commerce between Canada and Brazil. Maintaining strong relationships with both countries, the Brazil Canada Chamber of Commerce works closely to identify membership, investment and trade opportunities between these two economically powerful nations.

NOVEMBER 2011 Â&#x2022; The Canadian Business Journal 267

268 PRODUCTS & SERVICES Brazil Canada Chamber of Commerce

Raul Papaleo, President of the Brazil Canada

memberships as part of its association. Last

Chamber of Commerce, stated that annual trade

year, the chamber had 67 corporate members,

between Canada and Brazil has now reached

a figure that has now doubled in one year. Such

about $7 billion, a notably increase, but still rela-

explosive growth means that the Brazil Canada

tively small when you consider that the combined

Chamber of Commerce is achieving its mandate

GDP of the two nations tops $4 trillion. Over the

of networking and building contact companies

last four to five years, investment has increased,

and people interested in conducting business in

so expecting a future trade increase between

Brazil and business in Canada.

Canada and Brazil is only natural as well. “The trade is very small, but now we have the

Investing internationally

space and the patience of both governments to

Opportunities exist for Canadian companies to

increase the level of trade,” Papaleo said. “Our

operate in Brazil, and opportunities exist for Bra-

role in this is to foster the increase in trade and in-

zilian companies to operate in Canada. The Brazil

crease in investment between Canada and Brazil.”

Canada Chamber of Commerce provides the in-

Beginning in 1973, the Brazil Canada Chamber of Commerce works to secure business

formation necessary that allows these business operations to prosper in foreign nations.

CMY

NOVEMBER 2011 The Canadian Business Journal 269

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270 PRODUCTS & SERVICES Brazil Canada Chamber of Commerce

The Brazil Canada Chamber of Commerce

the most evident opportunity, but we have large

advocates its objectives through close ties with

opportunities in terms of size of projects in the

federal governments in both nations, as well as

infrastructure area.”

the ministries of foreign affairs and provides

Notably, opportunities exist in research and

critical information that is of utmost value to

development, engineering, and manufacturing,

those who conduct businesses in a foreign na-

particularly in Brazil. This allows for Canadian

tion like Brazil, or Brazilian companies conducting

organizations to offer their expertise in these

business in Canada.

areas, such as assisting in building infrastructure

“The first and most evident sector that

in Brazil. With a need for new roads, highways,

presents opportunities for companies in both

airports, and buildings, Brazilian cities must re-

countries to join or to establish their own opera-

model to accommodate for traffic requirements.

tions in the other country is information technol-

What other opportunities exist for Canadian

ogy and communication,” Papaleo said. “This is

companies operating and investing in Brazil?

NOVEMBER 2011 The Canadian Business Journal 271

“Our goal is to offer access to resources and network opportunities for anyone interested or active in investment or trade amongst Canada or Brazil,”

272 PRODUCTS & SERVICES Brazil Canada Chamber of Commerce

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One example, in Brazil’s largest city, Sao Paulo,

in new oil wells, allowing the country to become

overwhelming population and traffic has driven

the first- or second-largest oil producing nation in

demands for a monorail, rail-based transporta-

the world, according to Papaleo.

tion, to increase efficiency and reduce congestion. The value of such a system is more than

Energy sector development

$1 billion, according to Papaleo. Monorails rep-

Ease of operations between the two nations

resent a ‘new era’ way of thinking in terms of

is also fruitful because Canada and Brazil are

transportation, and also tie in with reductions in

similar in many ways, however, Papaleo feels

greenhouse gas emissions, energy conservation

Canadian businesses would be able to help Bra-

and efficiency, and clean energy.

zil-based companies become more advanced

There are also opportunities in Brazil to be-

in renewable energy production, such as wind

come involved in oil and gas extraction, with more

energy and solar energy. It is an area he expects

than $60 million outlined for future investments

will see much growth in Brazil over the coming

NOVEMBER 2011 The Canadian Business Journal 273

two to three years, partly because Canada is

The Brazil Canada Chamber of Commerce

considered an advanced nation in terms of re-

seems more growth ahead, and has an aggres-

newable energy and production.

sive target for growing its corporate membership,

Brazil has committed to sustainable means, through clean-tech energy and energy sources. These represent a Canadian growth sector and

something it feels only adds further value to its core operations. The chamber strives for a 50 per cent in-

an area of opportunity and expertise where

crease in trade and investment over the next two

Canadian organizations would be able to assist

years, while it is also hoping for a repeat perfor-

those in Brazil.

mance in doubling its member size.

“Our goal is to offer access to resources

To Be Canada, an organization that identifies

and network opportunities for anyone inter-

and supports business opportunities in Canada

ested or active in investment or trade amongst

and Brazil, and was featured in the October issue

Canada or Brazil,” reads the Brazil Canada

of The Canadian Business Journal, is a member of

Chamber of Commerce website. “No matter the

the Brazil Canada Chamber of Commerce. CB

size of your business, joining the Brazil Canada Chamber of Commerce is one of the best investments you can make.”

www.brazcanchamber.org

274

Mark

True defi

kham Acura

finition of luxury

PRODUCTS & SERVICES

276 PRODUCTS & SERVICES Markham Acura

Photo Credit: lendy16 / Shutterstock.com

After successfully managing Downtown Acura of Toronto, General Manager Michael Brugel was tasked with bringing that same performance to the brand’s northern GTA dealership, Markham Acura.

“Our policy is to keep our people for the longterm as much as possible. A large number of our personnel have been with us for 10-plus years, and a few in excess of 20 years,” Brugel said. “One of the things that is most unique about this dealership is the long-term staff, in all depart-

Simply put, Markham Acura and Downtown

ments, particularly on the sales floor. Our long-

Acura essentially exchanged businesses in

term staff and our achievement of a high level of

April of this year, with Markham Acura bring-

client service is what makes us unique.”

ing most of its experienced team along for the move. The importance of a knowledgeable and

Quality staff means quality service

competent team was one of the key areas Bru-

Customers develop a comfort and a relationship

gel highlighted when speaking with The Cana-

with staff that they see time and again at the

dian Business Journal.

dealership, which is why Markham Acura aims to

NOVEMBER 2011 The Canadian Business Journal 277

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retain its staff long-term. Brugel summarized, “It

Markham Acura is familiar with a variety of lan-

is an environment that we try to foster.”

guages, customs, and practices, all in place to

Markham Acura also believes in fairness, to its customers and to the business itself. Brugel added, “If both our clients and ourselves are

make the customer feel comfortable when browsing or buying. With a long-term outlook, Markham Acura

comfortable and satisfied with the agreements

focuses on growing deep roots in its region, with

we make, our clients are happy, we are happy

the intent of developing long-term client relation-

and everyone can enjoy “A Truly Outstanding

ships. It is not uncommon for the dealership to

Markham Acura Experience”. That, by the way, is

serve the customer and then subsequent genera-

our mission statement, to provide “A Truly Out-

tions of that same customer.

standing Markham Acura Experience”. The staff is knowledgeable of its surround-

The location switch was made with the two dealers feeling the move would provide a

ings in that, with the dealership being in a

good opportunity. In terms of Markham Acura,

diverse market such as Toronto, the team at

it means a new, permanent home for the

278 PRODUCTS & SERVICES Markham Acura

dealership, complete with new real estate and a

“There are some things that are just lucky,

modern, elaborate facility. More generous space

so we have the privilege of being in such a good

allows the dealership to display more than 20

spot,” Brugel said of the dealership’s high-traffic

cars in its showroom, while phenomenal dealer

location in the north of Toronto town. “You then

displays provide visibility from Highway 7 also

take that and then develop a good reputation in

adding to the positive points of the new location.

the community.”

“Based on the physical structure, along with the staff and experience we bring, we will be able

Ahead of the curve

to service the community and do Acura proud,”

Over the years, Acura refined its product and its

Brugel said.

operations to stay ahead of the curve, evident at

Attributing its success to its experienced staff,

Markham Acura. As a Japanese car model, the

Markham Acura stresses good service and respect

Acura brand experienced a setback when the

for its clientele. Markham Acura understands the

tsunami and earthquake rocked Japan in March

importance of being a good community citizen.

of this year. As Acura production was delayed, so

NOVEMBER 2011 The Canadian Business Journal 279

too was product supply. But, by keeping a firm

As was the case with many automotive

grip on the wheel, Markham Acura was able to

brands, Acura was not exempt to the effects of

stay productive during this period by focusing

the recession, but Brugel is fully confident that

on its service business, as well as its pre-owned

the company can regain and improve the foot-

vehicle sales. Markham Acura persevered dur-

ing it had previously in the automotive world.

ing this downtime, as it did previously when the

Markham Acura believes it can rediscover and

economic downtown took its toll on the North

surpass its previous volume levels through

American automotive industry.

new products, further developing its relation-

“We maintained our staffing level because

ships within the community, and in striving

you can’t replace a staff member overnight who

to become an iconic business in the Town of

has 10 years of experience,” Brugel said. “We

Markham, something it believes is probable

hunkered down and tried to do the best we can

when offering a good product and very atten-

with what we had to work with it, promoted our

tive service. Brugel added, “We are not in this

used cars strongly, and we came through it.”

business for a week or a month. We are in this

280 PRODUCTS & SERVICES Markham Acura

NOVEMBER 2011 The Canadian Business Journal 281

business for 40 or 50 years, so we conduct

concluded. “Our cars perform and handle, and

ourselves with that in mind.”

are designed for the individual who takes plea-

Regardless, Japanese-made cars are renowned for revolutionary advancement, and have led the

sure from the act of driving; an active driver.” “As far as Markham Acura is concerned, we

way in terms of environmentally friendly offerings as

believe we will succeed and we believe that our

well as excellent fuel efficiency ratings. Today, both

strength is treating our customers with respect

remain ongoing initiatives for Acura. As one exam-

and dealing fairly with our customers. We have

ple, the first Acura hybrid model will be released in

staff that are knowledgeable, experienced, and

2012, something the company is looking forward to

understand the product and the marketplace

with much anticipation.

around them. We will continue to strive for im-

“Our car products, for the most part, are at the upper level of fuel efficiency rankings and

provement, by standing behind the service and products that we provide.” CB

Acura has been at the forefront of environmental responsibility,” Brugel summarized.

Why buy Acura? Today, Acura remains an attractive buying option for the consumer looking for a luxury brand without the luxury price or, as Brugel put it, “a product that provides extreme value in the luxury marketplace.” “We probably provide more for less than any other car company in the luxury segment, and even more so than some companies that are operating slightly below the luxury segment,” Brugel summarized. “Our styling tends to be a balance between cutting edge and conservatism, so it is styling with which people can be comfortable,” Brugel

www.markhamacura.com

282

Papas

Goes the

son Trucking

e extra mile

PRODUCTS & SERVICES

284 PRODUCTS & SERVICES Â&#x2022; Papason Trucking

Prince George, B.C. is home to Papason Trucking, the transportation company that specializes in refrigerated delivery service. Serving the province of British Columbia, Papason Trucking began as a small company and to this day understands the benefits of being a smaller organization and uses this to its advantage to be the best in business.

for that is because the company has excelled in keeping its customers pleased and satisfied. Initiated by the father and son team of Bill and Howard Arp, the two are still much involved with the company today. Papason Trucking began hauling freight in 1984 for two organizations, Circle T Lines and then Clark Reefer. As time went on, Papason Trucking began to expand its distribution areas, making three trips a week to the northern district of Macken-

Smaller companies are able to focus on cus-

zie, British Columbia. Following, the company

tomer service, a hallmark of Papason Trucking.

expanded its ties within the British Columbia

Beginning in 1978, Papason Trucking has been

market, associating with Kelly Douglas & Co.

in business for 30-plus years and a big reason

and Sunspun Foods, hauling these products to

NOVEMBER 2011 The Canadian Business Journal 285

nearby Chetwynd, Dawson Creek, and Fort St. John, among other areas. Over the years, the company continued to grow, then working with

Proud Partners in Northern BC.

Edmonton-based companies moving product into Prince George. Vancouver-based Neptune Foods and Gordon Food Service are also served by the Papason Trucking team. Papason delivers a variety of refrigerated products within Prince George and the surrounding areas. “Papason has been doing business in British

In Northern BC, Commercial Logistics and Papason Trucking have a long and successful partnership serving the communities up top. After all, going the extra mile on the open roads of the North is always easier with a friend. Call us and find out how we can get your products moving throughout BC, the West and the World.

Columbia for over 30 years and all I can say is that we couldn’t have done it without our people,” Howard Arp, Owner, Papason Trucking, tells

16133 Blundell Rd, Richmond, BC | 604.276.1300 | www.containerworld.com

The Canadian Business Journal. “We take pride in the service our employees provide for our cus-

able to give its customers the right attention with

tomers, always going that extra mile.”

the best of service. Papason Trucking has worked to continue offering its customers the best avail-

The importance of customer service

able quality, ensuring that every aspect of a

A focus on customer service has allowed Papa-

Papason Trucking delivery is handled with per-

son Trucking to buckle down during the reces-

sonal care and attention to detail, for the smooth

sion, focusing on the key areas that have made

shipment of an order.

the company the success it has been for the past

The company is consistently adapting

33 years. This positive approach that is evident

methods to further improve its services, adding

throughout the company allows Papason Truck-

modern fleets of trucks to best serve each

ing to scathe most of the effects of the economic

customer’s unique need. New equipment also

downturn. This approach to business also plays a

allows Papason Trucking to conserve fuel,

role in serving as the competitive edge of Papa-

while also reducing its greenhouse gas and

son Trucking, in being a small company that is

carbon footprint through producing cleaner

286 PRODUCTS & SERVICES Papason Trucking

NOVEMBER 2011 The Canadian Business Journal 287

air emissions. Papason Trucking works with environmental sustainability in mind. As an example, truck trailers offer climate control to move the right product at the right temperature. Specializing in refrigerated delivery service, delivers leave daily from Prince George to the northern part of the province. Papason Trucking knows that, throughout its history, it has satisfied its customers who can be sure their job has been done right. “We work closely with our clients to customize deliveries to make sure your product arrives at its destination exactly how and when it needs to,” reads the Papason Trucking website. “Whether its food or tree seedlings, Papason delivers.” Papason Trucking offers its clients the finest in

The family business

trucking services with a reputation to back it up.

A family-owned business that is proud to repre-

Our modern fleet of trucks used are more than

sent Northern British Columbia, Papason Truck-

capable of fulfilling your needs.”

ing serves as a product distributor for the region.

“We thank all of our partners in the industry

Its own warehouse equipped with freezer and

because without them we wouldn’t have been able

cooler units, Papason Trucking safely protects

to grow as successfully as we have,” Arp summa-

products until delivery.

rized. “We consider ourselves truly blessed.” CB

With strong ties throughout Northern British Columbia over the past 30-plus years, Papason Trucking has built a strong customer base that expects and receives excellent customer service. Reads the Papason Trucking website, “With a core of dedicated and skilled employees,

www.papasontrucking.com

Westowne Mazda

Showcasing excellence

Westowne Mazda provides the latest and greatest of the Mazda brand.

288

PRODUCTS & SERVICES

290 PRODUCTS & SERVICES Westowne Mazda

NOVEMBER 2011 The Canadian Business Journal 291

Located on Dundas West of Toronto, Westowne

aspect of being a family-run business, rare in the

Mazda began in 1983 and today continues as a

automotive industry, as reasoning to the compa-

family-run operation, managed by the father and

ny’s successful history. Westowne Mazda focuses

son team of Domenic Figliano, President, who

on its strengths, as well as its talented staff.

has been part of the automotive industry since

Figliano said, “A lot of dealerships have an owner

the 1960s, and Niki Figliano, General Manager

who has five or six dealerships and that owner

of Westowne Mazda. Domenic’s other son, Niki’s

cannot be on location all the time. Our advantage

brother, also participates in the management of

is that we are here, and if there are customer

Westowne Mazda. When the Westowne Mazda

concerns or issues, we are able to tackle them

dealership became available in 1983, the Figlia-

right then and there. That’s a big plus.

nos jumped at the opportunity. This month, Niki Figliano spoke with The Canadian Business Journal about the develop-

“I think the customer sees that we are here, that we have a passion for the business, and that we want to make the customer happy.”

ments at Westowne Mazda, specifically about the many positives that have reverberated from

Showroom renovation

the renovation of the dealership’s vehicle show-

The new showroom has been well received by

room, which will surely contribute to the continued

both the company and its customers, who are sat-

success of Westowne Mazda.

isfied and impressed with the new development.

The new, state-of-the-art showroom is show-

The new showroom not only offers more showcas-

cased over two floors—the only one of its kind

ing and more accommodating space, but also an

in all of Canada—with more than 100 Mazda

improved lounge to keep customers satisfied and

vehicles on display for customers to enjoy. Build-

comfortable. The customer lounge is located in

ing with the success of Mazda Canada’s global

the showroom, allowing customers to peruse the

image in mind, the new showroom is truly origi-

selection of Mazda vehicles on display.

nal and represents the modern style offered by

Customers accommodated the showroom’s

Mazda. The dealership has renovated its entire

construction period, which at times could be

showroom as well as its front of building.

noisy and distracting, but was plenty worth it

At its current location for almost 30 years now, Westowne Mazda highlights its unique

when keeping the finished product in mind. Figliano summarized, “It wasn’t easy. We did the

292 PRODUCTS & SERVICES Westowne Mazda

renovation while operating, so we cut the show

There is plenty of repeat business for the dealer-

room in half, and we would work on one side,

ship, as well, with many customers returning to

while the construction crews would work on the

purchase their third, fourth, or fifth Mazda vehi-

other, so at times it was a little tough, but our cus-

cles. Customers have options in where to buy their

tomers were great, it was no problem for them.

next Mazda, but are so impressed with not only

“Our customers were excited to see the fin-

the product, but the service received at Westowne

ished product, because they have become more

Mazda, that regular repeat business has proven to

friends than customers as we have known them

be a great achievement for the dealership.

for so long.” Perhaps most unique, however, to the

Customer service

showroom redevelopment is that in a time when

Like any in the automotive dealership industry,

many in the automotive industry were facing

or any in business as a whole, Westowne Mazda

layoffs, cutbacks and struggling sales figures,

prides itself on customer service satisfaction, a

Westowne Mazda was able to focus on the future,

philosophy that has allowed the company to retain

with the exciting development that today is its

not only its customers, but future generations.

new automotive showcasing.

Children and grandchildren of these customers

Figliano expects that the new showroom will only further contribute to the high level of customer satisfaction achieved by Westowne Mazda.

often become customers at Westowne Mazda. Figliano also thanks the dealership’s customer loyalty for allowing the company to be nearly

NOVEMBER 2011 The Canadian Business Journal 293

Committed to excellence in quality and service for over 35 years Proud To Service Westowne Mazda

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recession proof during the tough economic times

staff on board at Westowne Mazda. Figliano said,

in recent years. Figliano said, “In terms of the re-

“We have our core employees who have been here

cession itself, Mazda has some great, well-priced

for a long time. We don’t have a revolving door.

products, so it was positioned well going into

Our staff is here for the long-term, our core staff is

downtimes like this.”

still here, and our core values remain the same.”

The dealership also went as far as adding

From here, Westowne Mazda continues to

the most economic and energy efficient products

provide excellence in customer service and to

during its remodeling. Westowne Mazda is work-

serve its community in the best ways possible. In

ing toward reducing its carbon footprint and most

offering its highest level of product and service,

important to the company is achieving its highest

Westowne Mazda is confident that customers will

levels of efficiency.

keep coming back. CB

And while much of the dealership’s showroom has changed, the same cannot be said for the

www.westowne.com

294

Penco

Expect p

co Drywall

perfection

PRODUCTS & SERVICES

296 PRODUCTS & SERVICES Penco Drywall

NOVEMBER 2011 The Canadian Business Journal 297

Last year, when Penco Drywall spoke with The Canadian Business Journal, the company discussed its goal of entering the lucrative high rise market. One year later, Penco Drywall has accomplished that goal. Entering the high rise market Now part of the high rise industry, Penco Drywall entered the market knowing that the industry and construction in general is moving toward high rises. As Brad Pierce, part of the Penco Drywall team, put it, moving forward, more and more high rise buildings, offices, and condominiums are being built compared to low rise construction. It serves as an excellent stepping stone for Penco Drywall in its penetration of the high rise market. The industry moving toward the high rise market is something that has proven to be both beneficial and an exciting challenge for Penco Drywall. “The high rise market is very competitive and sometimes it can be difficult to pick up high rise [projects] as there are a lot of companies going after these jobs,” Pierce said. “It can be good, and it just depends on making the right decisions.”

298 PRODUCTS & SERVICES Penco Drywall

The company entered the high rise market

The Penco Promise is simple: Expect perfec-

after perfecting its craft in the residential and

tion. With its own trade professionals, Penco

commercial sectors. Entering the high rise mar-

Drywall promotes a positive work environment

ket was a new and exciting venture for Penco

built on fairness for its workers. Penco Drywall

Drywall, a move that has resulted in a more

staff is treated fairly and with respect, and in

involved, more enthusiastic staff.

turn, this staff provides excellence in its work,

“High rise is totally different than doing a

offering a product quality that is strives to exceed

house, so the biggest challenge was finding

expectations. The message of high quality is

enough quality workers to be able to do the jobs,”

evident across all levels of the business, from its

Pierce explained. “It has been a little different

management, to its staff, to its project efforts, to

because you’re pushed to finish the job quickly,

its finished product.

and it is a different atmosphere from what our

“We take pride in maintaining our quality as

job site managers are used to. Managing the job

well and a lot of that stems from having a work

is the biggest challenge.”

force that we can trust and that is very loyal to us

NOVEMBER 2011 The Canadian Business Journal 299

because we treat them with respect, the way they

retain its work volume levels. Penco Drywall has

should be treated,” Pierce summarized.

worked with new customers as well to maintain its volume level and keep its staff busy with a

Buckling down during the recession With the industry slowing and still feeling the

variety of projects. And as is the case with any industry, when

effects of the recession, Penco Drywall focused

demand falls and supply does not, margins

on maintaining its quality and by working that

become tighter, and the focus turns to further

much harder to ensure that the company stays

upping the company’s customer service perfor-

consistent.

mance. In treating its own staff well, that mes-

Like any industry, and any business, Penco Drywall felt the business slowdown during the economic downturn. Rolling up its sleeves, Penco

sage is then translated from Penco Drywall staff through to the customer. “We probably are one of the fairest companies

Drywall worked to retain its volume levels during

with our workers. What it does is a lot of companies

the recession, while the company endeavored to

will maybe not treat their workforce as well as they

300 PRODUCTS & SERVICES Penco Drywall

NOVEMBER 2011 The Canadian Business Journal 301

should, and that hinders a company’s quality in the end,” Pierce said. “Our staff gives us a bit of an edge, we take great pride in that, and a lot of other companies can’t really say that.” Accordingly, the Penco Drywall staff is loyal, and many workers have been with the company since its founding in 1996. This year, the familyrun Penco Drywall is excited to celebrate its 15 years in business. Now, the company has turned its focus to fine tuning its service delivery in the high rise market, as well as growing its base in the high rise industry, both achievable goals. Penco Drywall also focuses on growing through its high rise business as well as from its repeat business base. With such objectives, the future remains bright for Penco Drywall. www.pencodrywall.com

Athabasca Basin Security Service

Industrial safety experts

302

PRODUCTS & SERVICES

304 PRODUCTS & SERVICES Athabasca Basin Security Service

NOVEMBER 2011 The Canadian Business Journal 305

Being a 100 per cent Aboriginal/First Nations owned and operated company is a source of pride for Ron Hyggen, CEO of Athabasca Basin Security Service. Headquartered in Saskatoon and Wollaston Lake, Sask., the company provides industrial security solutions to the mining industry. Since 2002, it has successfully completed work with a number of top-tier mining names in Alberta and Saskatchewan, and has made a name for itself as leaders in the field.

Impressive skills draw impressive clients The niche market that Athabasca Basin Security Service has chosen obviously has served it well. “There are a lot of areas of security that you can work in, but we focus on industrial security,” says Hyggen. “There is bigger money for operators in things such as oil and gas, mining—we focus on that so we can be the best at what we do.” Indeed they must be, because their client list includes such names as Areva, Cameco, and BHP Billiton. “Our biggest strength is our clients, that’s for sure,” says Hyggen, who has been with the

The business model is simple, yet effective,

company since inception. “We are First Nations

focusing on the uniqueness of each individual

owned and operated, and use this to basically

client and project. Aimed specifically at mine sites

build a partnership with Northern Operators.”

and large industrial facilities, the idea came to life

Athabasca Basin Security has successfully

when a need was identified that drove the entire

grown over a number of years and now employs

project. “We became aware of the need to under-

more than 100 people, and has a roster of

stand safety violations,” Hyggen explains, which is

about 70 clients. How does Hyggen account for

a major concern for mining and oil companies.

this growth? “It really came out to understand-

On an industrial site, security regulations such

ing what the industry needs and demands in

as knowing who is onsite at all times can be tricky

regards to protection, security, and safety, and

to maintain. Understanding these complexities re-

just documenting it and making sure it is a part

quires some expertise. For this reason, Athabasca

of our company.”

Basin Security Service is strong proponents that

Beyond the industrial security services,

each site and client is unique. Customization of ser-

Athabasca also offers canine drug dogs and

vices, therefore, is fundamental in order to achieve

janitorial services. Seemingly unordinary, the

the objectives of protecting people, property and

additions were quite strategic. “This came about

information for any one location and company.

by request from our clients who said they need

306 PRODUCTS & SERVICES Athabasca Basin Security Service

to have these services available. So we went out,

and places significant focus on the growth of

acquired these assets, and did it.”

employees. “We have a professional develop-

This high level of concern for customer needs

ment program that allows First Nations people

is aligned with the philosophy of every job and

to become Industrial Security Officers,” notes

client being unique, and a testament to the

Hyggen. The progressive program is self-paced,

strength of the company.

and as employees progress their pay matches each new level earned.

Professional development programs

“You move up through our company and be-

Paramount to Athabasca Basin Security Service

yond. We are a transitional employer for many.

is its ideals. It has an impeccable safety record,

Our employees move through us to our clients,

NOVEMBER 2011 The Canadian Business Journal 307

A bright future For the future, Athabasca Basin Security Service will continue its focus on the very thing it does best. “We’ll keep focusing on the same areas, and from there they can also move into security

and the same types of clients,” explains Hyg-

as well.” It is a win-win situation for both Ab-

gen. This strategy sounds promising, and a suc-

original people and the companies who can now

cessful future is no doubt in store.

hire their expertise. Providing work opportunities to First Nations people is obviously something close to Hyggen’s

“If you look at our resume now and see who we are working with, we have the strongest resume out there for anyone doing this kind of work.” CB

heart and a great source of pride. “We are planning to partner up and use our relationships across Alberta to bring more [First Nations] into our work force.”

www.basinsecurity.com

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