Business Examiner Peace Cariboo - July/August, 2018

AUGUST 2018

» FOCUS ON ROOFING

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PRINCE GEORGE PG Surg-Med Celebrates 40

Business Advice Served Straight Up

Years of Supporting Northern BC

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Northern Legendary Construction Boasts Top Tier Apprenticeships

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INDEX News Update

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Mackenzie 5 BCNREB 5 Smithers 6 Movers & Shakers 12 Prince George

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New Study Shows Terrace is Aging Down

Young Demographic Flocks to Terrace Thanks to Affordable Outdoor Lifestyle

FORT ST. JOHN

Fort St. John | Prince George | Terrace | Vanderhoof

ERRACE - Affordability and an attractive outdoor lifestyle is drawing young Canadians to Terrace in droves.

According to a recent study conducted by Big River Analytics, the 20-35-year-old age cohort is growing, quickly transforming the economic landscape of the Kitimat-Stikine region.

As a recent migrant to the region, founder of Big River Analytics Hannes Edinger knows first-hand why this demographic is so attracted to Terrace and the surrounding region.

“In 2012, I had the opportunity to work remotely for the federal government, and decided to move to Squamish,” he says. “Before heading to my new place, I decided to take a four-day trip to northwest BC to visit a friend.

Once I had a chance to see the SEE BIG RIVER ANALYTICS | PAGE 6

Hannes Edinger, outdoor enthusiast and founder of Big River Analytics, was not alone in his decision to choose Terrace as his permanent home

EDI Makes Biology Work for BC Businesses Western and Northern Canadian Environmental Consulting Firm Boasts Down to Earth Consulting

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R I NC E GE ORGE - EDI brings a down-to-earth approach to environmental consulting.

For over 24 years, EDI Environmental Dynamics Inc. (EDI) has been helping companies navigate the environmental regulatory process through to the completion of their project.

EDI is an environmental consulting firm that provides practical services through their team of aquatic and terrestrial scientists, working on everything from

single property developments, to collecting baseline information to large-scale environmental assessments and environmental construction monitoring.

The company started in Prince George in 1994, initially focussing on providing environmental guidance to the forestry industry.

Over the years, it has expanded to have eight offices across Western and Northern Canada, including the Southern Region offices of Nanaimo, Victoria, and Vancouver led by Ian Redden, as

well as Prince George, Whitehorse, Calgary, Grand Prairie, and Saskatoon.

“The company has grown to include 85 specialists, but it still has a family feel. We work to understand the markets we work in and what our clients need,” says Rahul Ray, Chief Strategic Initiatives Officer at EDI. “The best part about working at EDI is that we’re not huge, and we have a home-grown feel while still being able to support some of the biggest projects that are

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happening in western Canada,” says Jason Collier, one of EDI’s Environmental Scientists. “The relationships we have built with our clients are long-term and collaborative.

In all eight of their offices, EDI has a strong relationship with its community. In Nanaimo, volunteering and supporting community organizations is an important part of our company fabric.

As an example, an organization SEE EDI ENVIRONMENTAL DYNAMICS | PAGE 9

NEWS UPDATE

2 PRINCE GEORGE BID Group’s Brian Fehr Appointed To Order of British Columbia BID Group fou nder a nd CEO Brian Fehr has been appointed to the Order of British Columbia.

BID Group is a billion-dollar group of companies that operates across North America, providing construction services and technical systems for wood products industries.

Fehr, born and raised in Vanderhoof, founded BID Group 35 years ago. The company has since grown to become one of the largest integrated suppliers to the wood processing industry and is the largest single employer in Vanderhoof.

T hey have 14 shops across North America with locations in Prince George, Salmon Arm, and Canal Flats. Of these 14 shops, 11 are located in small towns.

Fehr joins 14 fellow inductees in receiving this prestigious honor, bestowed upon only 432 British Columbians since the order’s inception.

The Order of British Columbia describes itself as honouring citizens “who have served with the greatest distinction and

excelled in any field of endeavour benefiting the people of the province or elsewhere.”

In a recent interview, Fehr told Black Press, “I’ve always been very, very comfortable in small towns and I’ve always felt like there were a lot of people fighting for the big cities.”

He has worked to build into these communities, contributing any way he can. In addition to his business activities, he currently sits on the Northern Health Board.

In addition to his community contributions, Fehr works to find sustainable innovations for his industry.

One of BID Groups subsidiaries, DelTech, has developed an energy system using wood burned by the forest industry to lower energy costs and greenhouse emissions.

He a l so develop ed a du stmitigation system to prevent sawmill explosions, like the Babine explosion in Burns Lake or the Lakeland explosion in Prince George. www.bidgroup.ca

PRINCE RUPERT Ridley Terminals On the Market This Fall

AUGUST 2018

The federal government has for sale in late 2012, but accord- Authority. “We’re excited to announced plans to sell Ridley ing to a report from the auditor see our partner enhance access general, a failure of governance to the Northern British ColumTerminals Inc. (RTI) this fall.

The Crown corporation, part resulted in confusion over the bia area with this new non-stop service.” of Transport Canada’s port- sale’s status. folio, will be made available Terrace Mayor Carol Leclerc A n n ie Joa n net te , s p o k e sto private sector ow nersh ip person for Transport Canada, commented, “It’s great to see through a sale process man- told Black Press, “The current WestJet once aga i n open i ng aged by the Canada Develop- market conditions are favour- up this valuable transportament Investment Corporation, able for a potential sale of Rid- tion route to Calgary and we a Crown corporation under the ley Terminals Inc.” are excited to see this developThe government has been en- ment come so soon after the Minister of Finance.

T houg h the la nd, wh ich is gaging with six of the region’s recent major renovations at our leased by the Prince Rupert First Nations to discuss a com- airport.”

Operated by WestJet Encore Port Authority, will not change petitive sale process. using Bombardier Q400 airownership, the terminal will craft, the additional service otherwise sell ‘as is’ to a private buyer, including all the will benefit the entire northwest region of the province. components for loading and “Given t he cr it ica l i mpor tunloading the rail car onto ves- WestJet Launches sels at the marine terminal. a nce of tra nspor tation i n Non-stop Flight from RTI performed well in 2017, Calgary to Terrace creating and supporting economic development, this with total revenues reaching S t a r t i n g t h i s S e p te m b e r, additional service will bene$178 million, a 192.5 per cent WestJet will offer twice-week- fit the economy and the comincrease over previous years.

A s of t he end of Ju ne, 4.4 ly, non-stop service between m u n i t y a s a w h o l e ,” s a y s WestJet Vice-President Netmillion tonnes of product had Calgary and Terrace.

The new route was announced work Planning Brian Znotins. sh ipped f rom t he ter m i n a l, which is a 26 per cent increase on Aug u st 7, a nd ra i ses t he The Northwest Regional Airnumber of WestJet’s non-stop port has seen 22,343 passenfrom the same time last year. gers th is yea r, up seven per For most of the compa ny’s flights from Calgary to 63. “ Wit h m ajor development c e n t f r o m 2 0, 8 5 4 p a s s e nex istence, RT I has been i nvolved i n the ex port of pet- projects u nderway i n West- gers last this time last year. roleu m coke a nd coa l. A s of ern Ca nada, the add ition of “This new flight route is a great last year, the corporation has WestJet Encore’s Calgary to addition for our region’s condiversified, serving AltaGas Terrace route is an important nectivity,” said Phil Germuth, Ltd.’s propane export terminal. connection as it further sup- Kitimat Mayor. “As activity in RTI has also revealed expansion ports economic development K itimat and the region conboth British tinues to grow, we anticipate plans for its existing berth, with that will Filebenefit Name: Log009-Mar18-AD-FinancialStrategy-Prosser Trim: 4.8” andx 6.2” Albertans,” g reater dem a nd s on f l ig hts public consultations scheduled Columbians Creative & Production Services Bleed: 0" Safety: n/a Mech i n300dpi a nd out of the Northwest said Bob Sartor President and Res: for the fall.

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NEWS UPDATE

AUGUST 2018

NEWS UPDATE CONTINUED FROM PAGE 2

Regional Airport. WestJet has identified and seized an opportunity to better serve our communities, as well as developments proposed for the area, by adding this new route.”

PRINCE GEORGE UNBC and TeejLab Launch Data Protection Project The University of Northern British Columbia has partnered w it h TeejL ab I nc. to cre ate the new Centre of Excellence in Data Privacy, Security and Integrity.

T he TeejLab-U NBC Centre of Excellence team will consist of award-winning computer scientists, innovators, Ph.D. and Master’s degree students advised by software industry vetera ns, a nd facu lty members from premier institutes and universities in the United States and Canada.

A t t h e c e n t r e , r e s e a r c hers at TeejLab and UNBC will have the opportunity to work together and solve data privacy and security challenges while conducting applied research in the areas of natural language processing, data mining and machine learning.

“Data protection and safekeepi ng presents complex global challenges that continue to evolve as technology changes,” says UNBC President Dr. Daniel Weeks.

“T his Centre of Excellence combines the world-class expertise of UNBC researchers along with TeejLab’s cuttingedge applied knowledge.”

Initial steps toward building the centre will include creating a virtual community that will provide a platform to build technologies and disseminate knowledge through research articles and blogs. T his will help the centre accelerate the process of i n novati ng technologies that have enterpriseg rade suppor t a nd engage open source communities for faster adoption and industry standardization.

The new centre will build on the relationship between UNBC and TeejLab that was established earlier this year through the creation of the Research in Technology Fellowship. T he Fellowship, a first of its kind at UNBC, combines a $10,000 financial award with the opportunity for a student to work on a research project with TeejLab scientists. Malhotra, who e a r ned a M a ster of Science deg ree from U N BC, created the Fellowship to inspire the next generation of computer scientists.

BC Site C Employment Numbers on the Rise BC Hydro recently released the June 2018 employment statistics for the Site C project, which showed an increase in BC workers.

The latest employment statistics show that there were 3,093 total workers on the project as of June, 2018, a 283 person increase over May, and the highest number over the past year.

Of the tota l workers, 2,531 were from BC, which is 82 per cent of all workers.

This marks a 173 person increase in BC employees over the May statistics.

T here were 664 workers on site from the Peace R iver Regional District, 28 per cent of the construction and nonc o n s t r u c t i o n c o n t r a c t o r ’s workforce.

The report also recorded 56 apprentices employed for the June.

T he number of apprentices will vary depending on the type work being performed, but as construction progresses, there will be additional opportunities for apprentices on the project.

Opportunities will significantly increase after the generating station and spillways civil contractor mobilizes to site.

There will also

be add itiona l opportu n ities with the installation of the turbines and generators.

There were 240 Indigenous people worki ng for Site C, a nu mber prov ided by on-site con st r uct ion a nd non-construction contractors that have a contractual requirement to report on Indigenous inclusion in their workforce.

404 women were working for Site C construction and nonconstruction contractors.

PRINCE RUPERT New Expansion Coming for Fairview Terminal A project development plan outlining the next phase of expansion for the DP World Prince Rupert Fairview Container Terminal has been announced by the Port of Prince Rupert and DP World Group.

The Phase 2B expansion will i ncrease a n nu a l capacity at Canada’s second largest container terminal to 1.8 million TEUs (twenty-foot equivalent units) when complete in 2022.

The Fairview Phase 2B project follows the 2017 completion of Fairview Phase 2A, which increased the terminal capacity by 500,000 TEUs to its current capacity of 1.35 million TEUs.

3 Construction on Phase 2B will begin in mid-2019.

There will be an initial gradual release of capacity to 1.6 million TEUs, in 2020 following the completed expansion of the container yard to the south.

The project will expand the container yard from its current 32 hectares to 41 hectares and add two new rubber-tired gantry (RTG) cranes as well as an eighth dock gantry crane. The existing maintenance and administration buildings will be relocated to create additional container storage capacity.

Ph ase 2 B w i l l a lso f u r t her expand on-dock rail capacity with the addition of 6,680 feet of working track, for a total of 24,680 feet of on-dock rail by 2022.

“Canada is an important part of our global network and we are delighted to confirm these pl a n s, wh ich u nderl i ne ou r commitment to Prince Rupert, which plays a major role in enabling trade in the region and across the west coast with rail connections inland to the rest of the country and the United States,” says DP World Group Ch a i r m a n a nd CEO, Sultan Ahmed Bin Sulayem.

Port of Prince Rupert Chair Bud Smith commented, “The execution of this agreement signifies DP World’s commitment to enabling Canadian trade with SEE NEWS UPDATE | PAGE 4

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a not her sig n i f ica nt i nvestment that will bring a total of one million additional TEUs of container capacity to the Port of Prince Rupert in less than five years.

“T h is project w i l l prov ide critical trade-enabling infrastructu re for Ca nada’s west coa st, a t i mely resp on se to forecasted g row th i n tra nsPacific trade and supportive of Canada’s efforts to diversify markets through new free trade agreements such as the CPTPP.”

MACKENZIE Mackenzie Joins Newly Rebranded Resource Municipalities Coalition Ch a nge is a foot a s t he orga n i zat ion for merly k now n as the Northeast BC Resource Municipalities Coalition has rebranded, hired a new executive director and welcomed the District of Mackenzie to its membership.

The coalition is now known as the Resource Municipalities Coalition, recently named Mike Whalley as their new executive director.

“Being a part of the Resource Municipalities Coalition gives smaller communities like Mackenzie a far greater voice when trying to resolve issues of concerns,” says Mackenzie Mayor Pat Crook told Alaska Highway News.

W ha l ley is the former d i rector of the North Peace airport with 10 years in aviation management.

Fo r t S t . Jo h n M a y o r L o r i Ackerman commented, “The

conversations we have had with colleagues across BC and Canada reflected our need to expand the conversation with other resource municipalities; so rebranding, bringing Mr. Whalley on the team, and welcoming the District of Mackenzie to the coalition is clearly the right move in our efforts to ensure that resource municipalities, businesses and rural communities are involved and engaged in resource development decisions that impact them directly or indirectly.”

Formed in 2014, the coalition united most of the municipalities in Northeast BC with a goal of representing the interests of local governments in resource development issues.

Its membership now includes Fort St. Joh n, Taylor, T u mbler R id ge, a nd M acken z ie.

The Resource Municipalities Coalition also includes several business groups, including local chambers in Fort St. John, Tumbler Ridge, and Chetwynd, the Independent Contractors and Businesses Association and the Northern BC Trucker’s Association. An invitation has also been extended to the Mackenzie Chamber of Commerce.

NORTHERN BC Black Diamond Group Scores Conditional Coastal GasLink Pipeline Contract Black Diamond Group Limited’s Workforce Solutions business unit has been conditionally awarded a $42.5 million camp contract for the Coastal GasLink Pipeline Project.

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the company will provide remote workforce accommodations for the construction of the proposed project, conditional upon a positive final investment decision by the Joint Venture Participants of LNG Canada.

I n con nect ion w it h its i ndigenous partnership with the West Moberly First Nations, the Company has conditionally secured a 908-bed turnkey camp contract for 27 months to service the construction of the project.

Pipeline construction is expected to begin in early 2019 and first revenue is anticipated concurrently. The camp will be constructed utilizing the company’s existing accommodation assets and any associated new capital investment required is expected to be nominal.

Black Diamond Group rents and sells space rental solutions and modular workforce accommodations, providing specialized field rentals to the oil and gas industries of Canada and the United States.

In addition, Black Diamond Group provides turnkey lodging services, as well as a host of related services that include transportation, installation, dismantling, repairs, maintenance and ancillary field equipment rentals.

“We a re excited that Black Diamond has been selected to support this major Canadian LNG project and we believe our large fleet of high quality accommodation assets leaves us well positioned for additional associated opportunities,” said Trevor Haynes, President and CEO of Black Diamond Group. “ We b el ieve t h i s cont ract award will contribute significant value to our indigenous partners, our shareholders and to our customer.”

per year bill for this building will save the university a significant sum over time.

The building includes halfmetre thick walls containing blown-in mineral wool insulation. One of the structure’s greatest challenges, the overhead door, was imported from Germany and optimized to increase the air seal. Other doors and windows were imported from Poland.

UNBC Associate Professor of Engineering Dr. Guido Wimmers hopes that an increase in these types of buildings will create a local market with local manufacturers, making these energy efficient structures more accessible than ever. “ We pu l led of f somet h i ng re a l ly a m a z i n g h e re,” s ay s Wimmers.

“T h is bu i ld i ng has caug ht the attention of Passive House researchers around the world because it demonstrates how an industrial structure, constructed with wood, in Northern British Colu mbia’s cold climate can be a global leader in energy efficiency.”

To f u r t her reduce W I R L’s carbon footprint, the University has signed a biogas contract. By using gas recovered from agricultural facilities and landfills, UNBC is able to lessen its reliance on fossil fuels.

T he Pa ss ive Ho u s e d e s i g n , combined w ith the biogas fuel, means the building is expected to produce one per cent of greenhouse gas emissions compared with a conventional building.

PRINCE GEORGE

Renovations have are underway for the radiology department at Bulkley Valley District Hospital.

These new technological upgrades in the radiology will be complete by mid-September, w ith overa l l costs of equ ipment and renos costing about $900,000.

The new system will have a fairly similar layout to the previous system, but the equipment w i l l be f u l ly d ig ita l, allowing staffers to examine X-ray images mere seconds after they are taken.

The system has voice recognition components, and will strea m l i ne the exa m i nation process, allowing patients to leave with a written report mere minutes after the completion of their exam.

The Bulkley Valley Health Care & Hospital Foundation has been fundraising for the project for some time, as Bulkley Valley and Lakes District residents typically need around 2,5003,000 scans per year, and often need to travel to Prince George

Passive House Certification for UNBC’s Wood Innovation Research Lab The University of Northern British Columbia’s Wood Innovation Research Lab (WIRL) is now one of just a handful of industrial buildings in the world to be bu i lt to Passive House standards.

Overcoming challenges relating to the climate and geography, the 30 by 30 building was a feat of engineering to say the least.

It is the first North American’ building of its type to meet the i nter n at ion a l ly re cog n i z ed standards for energy efficiency, cutting heating and cooling bills by up to 90 per cent.

With standard buildings of its size annually costing around $16,000, the estimated $1,000

SMITHERS Major Renos for Bulkley Valley District Hospital’s Radiology Department

or Terrace for CT scanning.

The hospital is now recruiti n g fo r a p e r m a n e n t r a d iologist, who will be based in Smithers. If the right fit for the job is found, another renovation may be underway to make room for a space of their own.

FORT ST. JOHN Crews Break Ground on New Elementary School Work has commenced on Fort St. John’s newest elementary school, tempora ri ly dubbed Northeast Elementary School.

School District 60 announced the groundbreaking for the project, located at 86 Street and 112 Avenue, across from the hospital.

Once completed, the school will be two storeys and include a neighbourhood learning centre, a daycare, and multi-purpose spaces for community use. The province contributed $30.8 Million, with School District 60 bringing $300,000 to the table.

Cu rrent work includes site clearing, while full construction is projected to start in summer of 2019. The school should be open and ready for students i n the fa l l of 2021, w ith 505 spaces for students from Kindergarten to Grade 6.

On August 13, Fort St. John city cou nci l gave fi rst th ree read i ngs to two bylaws, a llowing for the construction of a road off of 86 Street to the new school.

Ministry of education figures show that School District 60 was at 123 per cent operating capacity for school space in the 2016-17 school year.

PRINCE GEORGE Three New Members Join College of New Caledonia Board of Governors The College of New Caledonia (CNC) announced the addition of th ree new members to its Board of Governors.

CNC welcomed Shobha Sharma, executive director of the Central Interior Native Health Society a nd fou nder of Our Satya, Derek Orr, business development manager at Carrier Lumber and former chief of the McLeod Lake Indian Band, and Regina Toth, consulting business owner and Lheidli T’enneh member, to their board.

They were announced following a swearing in ceremony at its Prince George campus on Aug. 2, 2018.

V i n c e nt P r i n c e a n d Steve Nycholat a lso renewed thei r SEE NEWS UPDATE | PAGE 5

NEWS UPDATE / MACKENZIE

AUGUST 2018

Real Estate Numbers Drop in Northern BC

Most Northern BC Markets See Decrease in Sales and Number of Listings

R

EAL ESTATE - The BC Northern Real Estate Board (BCNREB) reports 2488 properties sold through the Multiple Listing Service (MLS) in the first six months of 2018, down from the 2583 sales reported in the first half of 2017.

The value of these properties was $680.2 million compa red w it h $693.5 million in 2017. At the end of June there were 3859 properties of a l l ty pes ava i lable for pu rchase through the MLS of BCNREB, down from 4394 at the same time last year.

BCNREB President Court Smith comments, “Most markets have seen a decrease in number of sales and number of listings.

Overall the sales activity has decreased by 3.68%, and the number of active listings has decreased by 12.18%. The lower inventories have put pressure on the prices, and the average price for a single-family dwelling has increased in most of the markets.

“In the Northern Region of the Board, Fort St. John’s number of sales is relatively the same as it was in the same period last year (243 sales in 2017 and 245 sales in 2018). There was a slight decrease in active listings (from 820 in 2017 to 748 in 2018).

“The market is currently stable. Anecdotal reports suggest that people in the

area are optimistic about plans for LNG exports. In Fort Nelson, the number of sales has doubled (from 25 in 2017 to 50 in 2018), and the number of listings was the same as in 2017.

“In the West, Prince Rupert’s sales dropped slightly (from 120 in 2017 to 113 in 2018), while the number of listings increased (from 221 in 2017 to 239 in 2018). The average price for a singlefamily dwelling also increased when compared to last year.

“Terrace saw an increase in sales (from 118 in 2017 to 173 in 2018), and a slight decrease in listings. Kitimat has had one of its best quarters since 2012, with an increase in sales (from 29 in 2017 to 95 in 2018).

“The number of listings is close to the 2017 numbers, while the number of active listings decreased (from 104 in 2017 to 57 in 2018).

The sales activity in Terrace and Kitimat may be a result of possible LNG projects in the area. Smithers saw a decrease in sales (from 149 in 2017 to 125 in 2018), listings (from 224 in 2017 to 189 in 2018), and number of active listings (from 205 in 2017 to 159 in 2018).

“T here is a lot of dem a nd for resident i a l property, and the average price for a single-family dwelling has increased.

“In the South, Williams Lake has seen a slight decrease in sales (from 258 in

2017 to 237 in 2018), listings (from 464 in 2017 to 434 in 2018), and number of active listings (from 378 in 2017 to 348 in 2018). The average days on market has also dropped (from 99 days in 2017 to 89 days in 2018).

“In 100 Mile House, there was a decrease in sales (from 312 in 2017 to 271 in 2018) and listings (from 651 in 2017 to 561 in 2018). The market is slow, but stable.

There was a decrease in number of active listings.

“In Quesnel, the number of sales (from 171 in 2017 to 164 in 2018), listings (from 324 in 2017 to 301 in 2018), and active listings dropped year-over-year (from 236 in 2017 to 199 in 2018). The low inventory was a factor in the average price for a single-family dwelling increasing (from $193,973 in 2017 to $241,495 in 2018).

“Prince George’s market is similar to other communities, with a decrease in sales (from 817 in 2017 to 691 in 2018), listings (from 1225 in 2017 to 1096 in 2018), and number of active listings (from 632 in 2017 to 579 in 2018). The number of condo sales is around the same as in 2017 (56 sales in 2017 and 55 sales in 2018), and there was a decrease in the number of homeson-acreage sales (from 31 in 2017 to 13 in 2018). The average days on market has dropped (from 101 days in 2017 to 44 days in 2018).” www.bcnreb.bc.ca

NOMINATIONS OPEN FOR MACKENZIE BUSINESS & COMMUNITY AWARDS

MACKENZIE JANEY MORGAN

T

he Mackenzie Chamber of Commerce is hosting its biannual Business & Community Awards, October 6th, 2018.

Nominations are being received until September 15th. Categories are: • Entrepreneur of the

Year • Home Based Business of the Year • Business of the Year • Business Person of the Year • Service Excellence • Volunteer of the Year • Not for Profit Community Impact Award • Citizen of the Year For more information please contact the Mackenzie Chamber of Commerce.

••• We are one of the partners who have launched a Mackenzie Community Calendar.

With the support of the

College of New Caledonia, Mackenzie Recreation Department and the Mackenzie Public Library, an online calendar was designed for the purpose of providing the residents of Mackenzie dates and times for community events, programs and all related information.

Yo u m a y a c c e s s t h e link on any of the aforementioned partner websites.

Janey Morgan is Office Manager at the Mackenzie Chamber of Commerce, and can be reached at manager@ mackenziechamber.bc.ca

NEWS UPDATE CONTINUED FROM PAGE 4

position as members of CNC’s Board of Governors.

“This year is going to be an exciting one for CNC,” said CNC President Henry Reiser. “T he College is ver y for tu nate to have passionate and hardworking members both joining and returning to its Board of Governors.”

The welcoming of these new add itions bri ngs a fa rewel l to outgoi ng members.

M a r y Sjo s t rom , w h o served on the board since February 2015, was Vice Chair Regions since April 2016 and also served on the HR Committee, and S a n d r a R a m s a y, w h o served on the boa rd since July 2014, and was a member of the Governance Committee, ended t h e i r t e r m o n C N C ’s Boa rd of G overnors on July 31, 2018.

“The dedication of the College of New Caledoni a’s b oa rd mem b ers i s commendable,” said Gil Malfair, Cha i r of CNC Board of Governors. “I would like to extend my gratitude to both Mary and Sandra for all their hard work this past year.”

PRINCE GEORGE Northern Development Trust Helps Launch Queen Charlotte Project A $250,000 pledge from the Northern Developm e n t I n i t i a t ive T r u s t helped fund the Queen Cha rlotte Boat Lau nch Improvement project.

T he Vi l lage of Q ueen Charlotte celebrated the grand opening of the project on July 30.

Village of Queen Charlotte Mayor Greg Martin commented, “My Council and I want to thank the funders and everyone else who made this project a reality. The steeper grade makes it easier to launch a n d k e e p t h e t r u c k ’s brakes dry, and stepping off the floating dock is a lot nicer than climbing over your boat’s windshield to get in.”

As the only boat launch south of Port Clements on Graham Island, improvements to the boat launch were much-needed to ensure safe usage for locals and tourists.

P r e v i o u s l y b u i l t fo r

5 airplane use, the existing boat ramp design was a basic black top extending into the bay, with no barriers or a dock to assist or defend boats against the elements while launching.

The boat launch upgrade project i ncludes a new lock block brea kwater, a concrete ramp with a 13.5 per cent grade, and a floating dock structure attached to the brea kwater with rails. These new improvements to the existing infrastructure will significantly help to improve the functionality and safety of the boat launch.

T he proje ct re c eive d funding support through the Trust’s Economic Diversification Infrastructure program. Funding support for the project was also provided by the Gwaii Trust Society and the Federal Gas Tax Fund.

The final project cost for the boat launch upgrade was $881,664.

T he se new i mprovements to the boat launch will ensure that the infrastructu re conti nues to prov ide ser v ice to t he Village of Queen Charlotte and help boost tourism opportunities in the region for years to come.

6

OFF THE COVER

AUGUST 2018

Young Demographic Flocks to Terrace Thanks to Affordable Outdoor Lifestyle BIG RIVER ANALYTICS CONTINUED FROM PAGE 1

region, I cancelled my Squamish rental arrangements and moved here.”

When Edinger evaluated his reasons for moving to Squamish, he realized that all of the amenities that attracted him to the Sea-to-Sky Corridor were available in Terrace.

With a temperate cl i mate, access to fly-fishing for wild steelhead and salmon, a great com mu n ity-ow ned sk i h i l l, cross cou ntr y sk i i ng, bei ng within 60 km of the ocean, and access to world-class hiking and biking trails, the region perfectly suited his outdoor lifestyle.

As an added bonus, property in the region was far more affordable in Terrace than in the Lower Mainland, allowing Edinger and his partner to purchase a house on a 30 acre parcel of land within two months of moving.

“Over the past couple of years, we’ve been running into a lot of people in our age group who made the same decision for the same reason, so we decided to do some research and see if the data reflected what we were seeing,” says Edinger.

Sure enough, these observations showed up in the data. Big River Analytics created a net migration profile, which looks at the census data and accounts for factors like migration, mortality, and aging out of a cohort.

The profile showed that virtually all of the region’s net population growth between 2011 and 2016 was attributed to the 2035 age cohort, with a startling 23.9 per cent growth in the 25-29 demographic.

With a temperate climate, access to fly-fishing for wild steelhead and salmon, a great communityowned ski hill, cross country skiing, being within 60 km of the ocean, and access to world-class hiking and biking trails, the region perfectly suits an outdoor lifestyle “Through our study, we found that young people seemed to move to more affordable places that offered the same kind of amenities as the Lower Mainland,” says Edinger. “Terrace really is that place. You can buy a $200,000 house and engage in all the activities available in the Sea-to-Sky Corridor on a worldclass level.”

Danielle Myles, Manager of Economic Development for the City of Terrace, has been watching this phenomena for some time now.

“Going to the local brew pub or farmers market, you will notice that there are a lot of younger

families coming from Vancouver, Squamish, and other urban centres,” she says.

This demographic transition has had a significant impact on the region’s economy.

An analysis of Terrace’s industrial sectors using data that spans the past 25 years shows the slow unwinding of the region’s former economic driver, the forestry sector, highlighted by the closure of Skeena Cellulose in 2001.

The period between the 2011 and 2016 census showed the first significant turnaround in these 25 years, with growth in the tourism, construction,

and professional, scientific and technical services sectors. The latter category encapsulates a wide range of sub-sectors, ranging from specialized design services to advertising and public relations to computer systems design.

In a recent report, Edinger notes, “many of [the] sub-sectors in ‘Professional, scientific and technical services’ will be serving clients outside of Terrace, thereby generating basic income and acting as an economic driver.“ T he 2018 Busi ness Wa l k, a survey conducted by the City of Terrace in partnership with

SMITHERS CHAMBER HOSTS CANNABIS INFORMATION​SESSION You can also attend the Cannabis someone representing BC Hydro opened their studios during the SMITHERS Cafe drop-in open house, from and you doubt the authenticity of inaugural Bulkley Valley Artisan CHAMBER 5:-6:30 on Thursday, September the call, you should hang up and Studio Tour. There were twentyHEATHER GALLAGHER

W

ith the federal legalization of marijuana taking place in October, the Smithers District Chamber of Commerce hosted a Grassroots informative session August 16.

Barry Nakahara of Worksafe BC addressed some issues on impairment and safety in the workplace, guidelines and policies for employers to be aware of during this changing legal landscape.

At Worksafe BC, a new webpage is available to help prepare for cannabis legalization and address concerns about substance use and impairment in the workplace.

Go to www.smithers.ca/cannabis, open from Aug ust 14 – September 14, to tell council your thoughts on how recre a t i o n a l c a n n a b i s s h o u l d be reg u lated i n Sm ithers.

6th, 2018 at the Old Church.

••• The Smithers Exploration Group is hosting a barbeque on Friday, September 14 with lots of hotdogs and hamburgers for the whole family and a chance to talk rocks. It will be held at the SEG Rock Room at SEG’s office at 101 3423 Fulton Avenue in Smithers.

••• Thanks to a call from one of our members, the Smithers Chamber wants to alert you to a resurrected BC Hydro telephone scam.

Customers are receiving calls where the caller claims to represent BC Hydro and says power will be disconnected if a payment is not received. Scammers targets often seem to be small restaurants or independent businesses that would be financially hurt by a day without power. BC Hydro does not collect credit card or bank account information over the telephone.

I f you re c eive a c a l l f rom

call BC Hydro 1-800 BC Hydro or the Canadian Anti Fraud Centre at 1 888-495-8501. Only call BC Hydro’s legitimate number and not the number provided by the caller.

••• Over 300 people came downtown on Friday, August 17 for a special Lawnchair Lounge musical feature when groups associated with the Spirit of the North Classical Music Festival took to the Main Street Stage.

There were over 30 performances including concerts and popup musical events in classically Smithers style. This festival has become a major draw as people from across the region flock to Smithers to hear renowned and international musicians enjoying the valley and the music that is made here.

••• The August Long weekend was warm and inviting as artists

six artists on tour from small cozy galleries in artists’ homes to multiple artists being featured in the Nielsen Gallery.

Along with visiting many locations in Smithers locals and tourists took to the country backroads and to nearby Telkwa to see pottery, paintings, jewelry, stained glass, cards, quilts and more.

There was something for every taste in the two-day long artisan adventure. During the rides backcountry art lovers found fantastic paintings inspired by the area’s stunning scenic beauty. Everyone on tour hopes that this will be an annual event.

••• T he Sm ithers Ca r is a new Chamber of Commerce initiative and is getting a lot of attention when out on the road. It’s been taken to Kelowna (for an Economic Development Conference), to Terrace for a meeting, and through Prince George to

number of businesses organizations in the community, showed that many businesses are optimistic about the future.

“After coming out of a really terrible winter, our business owners were quite optimistic,” reflected Karisa Petho, Communications and Business Development Officer for the City of Terrace. “Right now, we have an excellence business climate, and we’re on a great trajectory.”

The city, along with the Terrace Entrepreneurs’ Society, is actively supporting this new influx of people through its joint establishment of a co-working space. The space now known as “TEC Space” has a technology and professional services focus, and it opens its doors September 1st.

Its goal? To service the rapidly growing professional sector of local entrepreneurs requesting a space to meet other local professionals and capitalize on connections. “ T h e d o o r s h a v e n’ t e v e n opened yet and all the permanent offices are spoken for. Even the part-time spaces are filling up,” said Petho. “It’s truly an early success and another huge advantage to doing business in Terrace.”

With all these young professiona ls comes thei r i nterest in making their city desirable to live in. Non-profit groups such as Shames Mountain’s My Mountain Co-op and Terrace’s Off-Road Cycling Association (TORCA) are seeing membership on the rise, making industries such as adventure tourism next on the horizon for growing business opportunities. www.bigriveranalytics.com

Jasper.

I was also used this summer by summer staff, in order to reach tourists where they are – at area attractions and campgrounds.

Both sides of the vehicle are wrapped in Smithers scenes and the back displays all our wonderful sponsors of our now Year-round vehicle. Thanks to the Moose; Glacier View RV and Cabin Rentals; Bulkley Valley Credit Union; Bulkley Valley Insurance; Tourism Smithers; Aquabatics; Capri Motor Inn; Blue Water Sushi; Prestige Hudson Bay Lodge; Aspen Inn & Suites; Northern BC Tourism; Pharmasave; Oscar’s Fly and Tackley; Florence Motel; Fitness Northwest; and Northwest Fuel for supporting the initiative and your decals are getting you great exposure.

Heather Gallagher is the Manager of Smithers and District Chamber of Commerce. She can be reached at heather@smitherschamber.com

7

AUGUST 2018

ROOFING Exciting Innovation Coming to Roofing Industry Solar Roofing and Digital Modeling Among Emerging Trends in Roofing

Organizations like RCABC help to provide a united voice for BC’s roofers, while endeavoring to maintain high standards across the industry (www.rcabc.org)

BY ROBERT MACDONALD

I

nnovation is on the rise in the roofing industry.

With the diversity of climate, landscape, and build types throughout BC, roofing professionals are always learning, with new technology creating more options than ever before.

After all, roofing professionals are working hard to make sure the clients get the right product for their individual needs.

The use of Building Information Modeling (BIM), which uses software to create a digital model of a building, is currently on the rise.

In institutional and commercial construction, this software allows roofers to optimize the roofing material, properly plan roofing replacement, and store records of materials including suppliers and manufacturers.

“I think that a commercial roofer who hasn’t investigated and at least explored potential BIM Processes and technologies in the next few years will be making a mistake,” Chris Little, Virtual Construction Manager at Modern Niagara told BC Roofing Magazine.

“BIM workflows and the massive amounts of information and clarity within them is extremely relevant

to new complex institutional and commercial buildings.”

Solar panels and solar roofing is also increasing, as more British Columbians seek to reduce their carbon footprint and save money on energy.

“In the last 15 years, solar energy capacity has expanded 5,700 per cent while solar panel costs have dropped well over 5 times in the same period,” says Steve Russell of Roost Solar in Vernon.

“Newer building integrated photovoltaics, like Tesla’s solar roof tiles, are increasingly coming to the forefront of consumer awareness and show great promise

for continued innovation in the industry.”

Many solar roofing companies have experienced significant growth over the past few years, thanks to the increased affordability of solar energy.

Some other industry practices are also on the rise: metal roofing is rising in popularity, torched on roofing has largely replaced tar and gravel, and drones are being used for inspections.

While innovation is on the rise, the industry is facing a few key challenges.

SEE ROOFING | PAGE 8

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Perhaps the most significant challenges is the workers shortage. Some companies, like Victoria’s Proline Roofing & Gutters, are going to great lengths to ensure they have enough staff to meet the demand for their services.

“We spent somewhere between $20,000

AUGUST 2018

to $30,000 with a lower mainland based immigration lawyer between late 2016 and Spring of 2017,” says Kevin Spahn, Office Manager at Proline Roofing.

“Our goal, which was successful, was to bring in 10 foreign workers with roofing experience to help with the overall shortage in the industry. We also spent another $10,000 - $15,000 for the Service Canada processing fees and documentation related

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Since 1968, 101 Industries Ltd. has been committed to safety, earning us a reputation as a reliable company dedicated to quality for industrial, commercial and residential clients. These services include cladding, fabrication, heating and plumbing, equipment rental, sheet metal work and much more.

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expenses, plus administrative in-house costs to deal with paperwork, emails and phone calls.”

Thanks to efforts like this, Proline has been able to grow in spite of the workers shortage, carefully vetting their new hires and ensuring that they are capable of complying with customers’ needs and industry standards According to Robert Greenough, General Manager at Tomtar Roofing & Sheet Metal, adherence to industry standards, especially involving fall protection, is another one of the major issues facing the industry today.

While companies like Tomtar and Proline, and others are in full compliance, many roofing companies are not working in full compliance with the industry’s regulations.

“Not only is it a Government and WorkSafe requirement and legislation, it directly affects the safety of the workers, the building owner, and the general public that these requirements protect,” he says.

“More funding for specific enforcement of the residential market would be extremely positive, and educating the general public on their liability for any injuries or damage caused by their non compliant contractor would help fix a large number of these compliance problems.”

Greenough recommends utilising a third party inspection firm to ensure all the

necessary standards are met.

The Roofing Contractors Association of BC (RCABC) was created in 1958 in order to bring professional roofing contractors, manufacturers, and suppliers together.

Today, they are actively working to bring roofing companies into compliance, ensuring that both roofers and clients are safe.

In 1960, the organization established the first roofing association-backed guarantee program in Canada, called the RoofStar Guarantee. The program enforces accepted standards for materials and guidelines, and requires inspections of roofing applications by independent, accepted roofing inspection firms.

In addition to the RoofStar guarantee program, the RCABC is working hard to ensure the next generation of roofers are properly trained. They opened the RCABC Training Centre in 1994 to conduct apprenticeship, safety, and professional development training on site.

In addition to training the roofers themselves, the institution offers an Accepted Inspectors Course, which certifies inspectors that have already been accepted to conduct inspections on projects where the RoofStar Guarantee has been specified.

All accepted inspectors must successfully complete this course to maintain their RCABC accepted status. www.rcabc.org

OFF THE COVER

AUGUST 2018

9

Western and Northern Canadian Environmental Consulting Firm Boasts Down to Earth Consulting EDI ENVIRONMENTAL DYNAMICS INC. CONTINUED FROM PAGE 1

Ray volunteers with, Power To Be, recently began leasing a former golf course.

“I put the word out to our EDI team that they were planning accessible infrastructure on their 78 acre parcel, and overnight I received several emails from EDI volunteers to do an environmental inventory of the site,” he says.

“The inventory results are now being used to help the design of the infrastructure in less-environmentally sensitive areas to help individuals and families with mental, physical, financial, or other barriers reconnect to nature.”

Along with this community focus, EDI thrives because they offer practical solutions-oriented consulting.

“The work we’ve done out of our Nanaimo office covers a variety of sectors, including power projects, municipal, residential and industrial developments and many more,” says Ray. When proponents are planning a project, EDI helps guide them through the environmental components of projects early, continuing through until the

The company started in Prince George, and now has eight offices throughout western and northern Canada successful completion of the project.

We have a broad range of skills, and team with other local companies to provide a reliable, proven team.

“We do a lot of the baseline work to help the proponent put the project in the right place, minimizing environmental effects, and reducing regulatory and schedule risk,” says Ray. The team has a great unders t a nd i n g of b ot h t he b u s iness world and the regulatory

processes, as well as a great deal of experience working with Indigenous and non-Indigenous communities.

“We’re here to help our clients find smart solutions to the environmental permitting, mitigation planning, construction monitoring, and reclamation efforts they need to undertake,” says Ray. T hei r portfol io of projects ranges from small projects all the way to major projects across western Canada.

NORTHERN LEGENDARY GETS PROVINCIAL RECOGNITION FOR APPRENTICESHIPS Fort St. John Company Boasts Loyal, Happy Employees

F

O R T S T. J O H N - A p prenticeships at Northern Legendary Construction are among the best in BC. This February, the company ea r ned t he Best Apprent ice Training award at the 15th Annual Small Business BC Open For Business Awards in Vancouver.

Founded in 2007, the company has grown to become one of the largest construction companies in Fort St. John, specializing in General Contracting for new builds and renovations in the commercial, industrial, and residential fields.

Over the past decade, Northern Legendary has developed an apprenticeship program that is churning out top-tier Red Seal journeyman.

“Our secret is that we care about ou r employees,” says Owner and General Manager Eric Bell.

“I figured out a long time ago that the tools don’t do the job, the equipment doesn’t do the job, and I can’t do all the jobs.

A construction company is only ever as good as its people, so when we send out people, we want to make sure that they’re properly trained in the trade so the customer is getting what they paid for: actual Red Seal carpenters.”

Northern Legendary’s supervisors are experts in passing on vital information and training to their apprentices, and the company invests in safety training for all aspects of the job.

Bell and his team have taken on a diverse set of projects, ranging from an MRI machine install at the Fort St. John Hospital to a water disinfection plant for the City of Fort St. John.

Before starting work on unique job sites like these, the supervisors provide apprentices with resources to prepare them for the tasks ahead.

“We have our guys do home education as part of their apprenticeship,” says Bell. “Our guys love Youtube, so we have found some great video resources to help them better prepare for unique jobs.

“It shows in the results. Because they’re seeing how the work is done, they come better equipped to learn some of the more specialized tasks.”

The company now has more

Red Seal carpenters than apprentices, with many former apprentices choosing long-term careers at Northern Legendary.

“We treat our employees very well,” says Bell. “Nobody’s running around upset or angry at anybody, and we treat our team like family.

“I want them to have a good quality of life after hours, so we make sure that we give a lot of flexibility in their schedule.

They know that the needs of their families are important to us, and we show that in various ways.”

The company is quickly expanding and is on the lookout for more employees, offering them a chance at a long-term career in the industry.

Northern Legendary was recently hired by the city of Fort St. John to complete the Centennial Park project.

“We’re qu ite pleased to be building something that’s a public space,” says Bell. “This one’s very special to us. We’re going to do our very best to make it a masterpiece for the community.”

The project will include a band shelter for special community events, as well as playground equipment, newly-planted trees, and sidewalks for the park. www.northernlegendary.ca

Many EDI staff volunteered their time to help Power To Be redevelop an old golf course Recently, led by project manager Adam Compton, the Nanaimo office supported construction contractors on a major project called the Salmon River Diversion Decommissioning Project.

EDI was project manager for environmental support services to the contractor. They were responsible for water quality compliance monitoring, erosion and sediment control planning, in-stream works planning, fish salvage bird nest surveys and general environmental mitigation measures.

T he company is also proud to be involved in the environmental components of run-ofriver projects for some smaller indigenous communities. “ We’ve b e en goi n g for 2 4 yea rs, a nd actua l ly g rew t h ro u g h t h e re c e nt m a rk e t d o w nt u r n ,” s ay s R ay. “ We really like the range of clients we get to work with, and our reputation as a collaborative solutions-oriented firm continues to grow.” www.edynamics.com

ARE YOU SEEKING A REWARDING AND STABLE CAREER IN THE CONSTRUCTION INDUSTRY? Award-winning Northern Legendary Construction Ltd. is the place for you.

We are currently hiring skilled carpenters, project managers, estimators, job foremen and construction labourers to join our safety-conscious, energetic, and family-oriented organization.

Whether you are just starting out or are already a skilled tradesperson, opportunities are provided for training and professional growth.

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NORTHERN LEGENDARY CONSTRUCTION LTD. Mailing address: Box 856 Charlie Lake, BC V0C 1H0 Office location: 11196 Clairmont Frontage Rd, Fort St. John, BC

10

SPOTLIGHT

AUGUST 2018

PRINCE GEORGE HEALTH CARE CO CONTINUES TO GROW PG Surg-Med Brings Personal Care to Remote Northern BC Communities

P

RINCE GEORGE - PG SurgMed is healthier than ever.

Now celebrating its 40th year in the health care supply industry, PG Surg-Med offers mobility devices and medical equipment sales and repair for Nor thern a nd I nterior British Columbia from their Prince George, Vernon, Kamloops, and Kelowna Offices.

For the last four years, brother and sister duo Russell and Sandy Pratt have been steering the ship, bringing the company into a new era of success and expansion.

“The Prince George location is completely different from any other store in BC,” says Russell.

“We cover a geographical region from Williams Lake to Fort Nelson to Prince Rupert, even as far as Haida Gwaii.”

Over the years, the branch has served this expansive geographical region, sending teams of technicians around the province, regularly stopping to serve clients in the small towns of Northern BC. “Every two or three weeks, we load up a cargo van at our Prince George office, and send them in different directions to serve our clients,” says Russell.

“It’s a big cost, and it’s not always easy - especially in the winter - but we’re fortunate that people in Northern BC are understanding.”

The team of sales reps and technicians are an experienced group, with some employees boasting 25 year tenures with the company.

“Our employees really make the difference for our company,” says Sandy. “They provide top quality service and expertise, and a personal touch that makes a huge difference in the lives of our clients.”

A nother thing that sets PG Surg-Med apart from most suppliers in the industry is that it

Russell has been at PG SurgMed for over 20 years, working at many different levels of the company

“Our employees really make the difference for our company,” says Sandy. “They provide top quality service and expertise, and a personal touch that makes a huge difference in the lives of our clients.”

SANDY PRATT CO-OWNER OF PG SURG-MED

fabricates its own custom seating systems for those who can’t use an off-the-shelf system because of very complex needs.

“This is a very specialized process and our technician who does this work is very well regarded all over the province,” says Russell. “He works with many of our therapists in PG and the region we cover but he also works with therapists who come up from Vancouver from Sunnyhill Hospital for children and Access Therapists who are specialized in

Thanks to experienced, friendly staff, PG Surg-Med continues to grow, expanding into BC’s interior the field of wheelchair seating.”

With this personalized, professional care and the province’s aging population, the Pratt family sees a bright future ahead.

Russell has decades of experience at various levels in the company, starting as an equipment tech at PG Surg-Med shortly after graduating from BCIT with a Biomedical Engineering Technologist diploma in 1995.

“Initially, I wanted to use the job as a temporary step before a hospital job, but as I became more involved in the company, the work became more interesting to me,” says Russell. “I was dealing with clients and therapists, helping individuals and families overcome obstacles for their home and helping them move independently. It became more and more of a passion for me and I really started to enjoy the work.”

Gary Chan, one of the founders of the company, approached

Russell in 2001, offering him 10 per cent ownership of the company, which he accepted.

When Chan decided to retire, he started looking for buyers, and that’s when Russell and Henry Chu, another partner, began to consider purchasing the company.

“One night, my sister was visiting from Victoria, and we were having a glass of wine on the deck with my parents,” says Russell.

“As I started explaining the company’s situation to her, she joked, ‘maybe we should buy it.’

“The next day, she asked if I was serious about buying the company, and I decided that, if we could manage it, purchasing the company would be a good opportunity.”

Sandy brought 25 years of CPA experience to the table, with experience as CFO and COO of Emerald Health Therapeutics, CFO of the Royal BC Museum, and CFO of the Oak Bay Marine

Sandy joined her brother as coowner of PG Surg-Med 4 years ago, bringing her extensive experience in management to the company

CONGRATULATIONS to PG Surg-Med on your 40th Anniversary! www.eclipsemedical.com

Congratulations on 40 years of success!

1198 Victoria Street - Prince George, g BC

250-564-0002

www.brownridgeinsurance.com w rownridgeinsurance co w.b

SPOTLIGHT

AUGUST 2018

11 “Initially, I wanted to use the job as a temporary step before a hospital job, but as I became more involved in the company, the work became more interesting to me.

I was dealing with clients and therapists, helping individuals and families overcome obstacles for their home and helping them move independently. It became more and more of a passion for me and I really started to enjoy the work.”

RUSSELL PRATT CO-OWNER OF BC SURG-MED

The Prince George Location is completely different from any other store in BC, covering a geographical region from Williams Lake to Fort Nelson to Prince Rupert, even as far as Haida Gwaii Group.

Russell and Sandy became coowners of the company nearly four years ago, and have since lead a successful expansion into the BC Interior, becoming one of the region’s leading health care product suppliers.

“We have three locations in the BC Interior right now: Vernon, Kamloops, and Kelowna,” says Russell. “The Vernon branch started about 10 years ago, but struggled for a number of years due to some staffing issues.”

The turning point came with the introduction of a contract form the health ministry that restricted the number of medical suppliers for Interior Health.

Congratulations from the entire McKesson Home Health Care Team!

PG Surg Med's

40th Anniversary

“The Okanagan Shuswap Cariboo region only had four suppliers named on it, and just as Sandy and I purchased the company, we were put on the list,” he says.

After that point, Sandy and Russell decided to hire a few representatives to work in Kamloops as an expansion from the Vernon location.

Two employees operated out of a small strip-mall location for about a year, until the branch’s main competitor shut down.

“I nsta ntly, we had severa l members of their staff approach us, asking us if we were looking to hire,” says Russell. “I phoned Sandy, and she thought it was a risk worth taking, so within a

month, we went from having 2 employees to 9 employees.”

Three months in, the store’s sales more than quintupled and the branch transitioned into a larger location.

“We sta rted the K a m loops branch as an attempt to build an extension to help out the Vernon store, but it’s exploded into something we never dreamed of,” says Sandy. “The company that closed down would have been our primary competition, and was the only thing that slowed us down from entering the market here. The timing of things worked perfectly, and the branch has grown far faster than we were expecting.”

Sandy now splits her time helping manage the Prince George and Kamloops branches, and has found that Russell and herself make a great team.

“I think even I was surprised by how well we work together,” she says. “We have very different focusses. My background is in financial reporting and organizational structures and he is great at sales and working with our suppliers. When we get together and make decisions, we can immediately get to work in our different roles.”

The addition of industry veteran Mike Jalmarson in July 2017 allowed the company to open its first Kelowna office.

“It was great timing,” says Russell. “He has made the Vernon operation run really smoothly, and has helped the Kelowna operation thrive from day one. The numbers are better than we’ve ever seen them, and our Vernon location is performing better than it has in ten years.”

Sandy is equally excited about this recent addition, saying, “Mike has a strong service background, so he is able to compliment my strengths and Russell’s strengths quite well.”

In addition to the financial promise of working in an industry that continues to grow, Sandy and Russell enjoy the experience of contributing to the well-being of their clients.

The company actively supports local charities and sports teams.

Last year, a PG Surg-Med donation to the Challenger Baseball league (which helps children with disabilities play organized sports) allowed families of the players travel to the Lower Mainland to attend the league’s big year-end tournament. www.pgsurgmed.com

Congratulations PG Surg Med on your 40th Anniversary Your dedication to Customer Service has been proven by your success. We look forward to many more years working together

605-550 Victoria Street Prince George, BC 250-562-0049 Since 1983, we have been meeting the Financial and Life Insurance needs of individuals, families and corporations alike.

©(2018) SMC

12

MOVERS & SHAKERS

AUGUST 2018

TERRACE

budget is $1,435,000 and the city accepted bids until August 17th for the update project.

WestJet has made a new twiceweekly d i rect f l ight serv ice between Terrace and Calgary available, starting in early September. The Terrace-Kitimat Airport Society released the news early this month, noting the support for economic growth in the Northern BC region.

Northcoast Home Medical Equipment celebrated the grand opening of their new location at 4712 Keith Avenue on August 18th. The store will now be open on Saturdays and is a full service location.

After nearly 11 years in the community, The Elephant’s Ear Coffee Shop and Fine Foods, owned

by Lance Dettwiler, has closed its doors. The café hosted frequent community gatherings and openmic nights since its opening in 2008. The shop’s location on Lakelse Avenue is now up for sale.

Newmont Mining Corporation, has purchased a 50 per cent share in the Galore Creek project from NovaGold for $275 million. Newmont is a gold and copper producer that will now be partnered with Teck Resources on the project, which is one of the planet’s most expansive copper, gold and silver deposits that is undeveloped.

A groundbreaking ceremony was held for a new 52-unit supportive housing project at 4523 Olson

A new 46-unit low-income housing development, a project headed by the Prince Rupert Indigenous Housing Society in partnership with BC Housing, will soon be ready in the former Anchor Inn location. The project’s end date is estimated for September and the development has already received nearly 240 completed rental applications.

Avenue. Selina Robinson, BC’s Minister of Municipal Affairs and Housing, attended the event that began construction of the threestorey building that will feature around-the-clock support for residents. The project runs parallel to the Building BC: Rapid Response to Homelessness program, which has included Terrace in its plan that funds modular homes in 22 cities throughout the province.

Terrace City Council has backed an application to BC’s Rural Dividend program to partner with the Kermodei Tourism Society (KTS).

The Northwest Events Initiative project is estimated at $60,000 and plans to promote the city as an events destination, in addition to providing upgrades to the KTS website and databases.

Coast Mountain College (CMTN) has announced that they expect 195 international students at their Terrace campus this fall, as well

as 64 in Prince Rupert and 36 in Smithers.

Seven new physicians are expected in Terrace this fall after the Northern Health Authority issued a community recruitment campaign at the beginning of 2018.

The health authority also locked in provincial funding to add to their doctor positions available at Mills Memorial Hospital.

PRINCE RUPERT Transport Canada has chosen to put Ridley Terminals Inc. for sale, desiring a private sector owner. Ridley Terminals is a Crown corporation under the federal government and has generated $178 million in total revenue last year, which increased 192.5 per cent from the year previous.

The federal government has been

collaborating with six First Nations to organize the sale process scheduled for this fall.

BC’s northern coast will soon receive two emergency offshore towing vessels sent form New Brunswick. The Department of Fisheries, Oceans and the Canadian Coast Guard issued a lease request for emergency offshore towing vessels in February, which was awarded to Atlantic Towing Limited in Saint John, NB for a contract value of $67 million. The vessels are needed to tow commercial vessels: tankers, ships and container ships when they are in trouble.

The Digby Island Ferry, constructed in 1970, is scheduled for a refit in April of next year. The cityowned vessel with a route to the airport will be getting mechanical and structural updates as part of a scheduled refit every five years.

This year, the ferry’s operating

Northern Health has opened a new drop-in clinic in Prince Rupert that specializes in mental health and addictions. Northern Health is reported to have the highest suicide rate in the province and has been working to improve services in this area. The new clinic is located at the Prince Rupert Health Unit on Third Avenue West and functions on a first-come, first-serve system.

The Watson Island propane terminal is officially under construction, as Pembina began construction after a ground-breaking ceremony on July 23rd. The aboveground facilities project is forecasted to pump over $75 million into the local economy and will employ between 150-200 people for the construction phase, in addition to 20-30 full-time employees to run the facility. As a SEE MOVERS & SHAKERS | PAGE 13

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AUGUST 2018

MOVERS & SHAKERS

deplaning. Last year at this time the airport reported 238,250 passengers.

CONTINUED FROM PAGE 12

result of reviving this project, the City of Prince Rupert has received an Excellence in Economic Development award from the North Central Local Government Association (NCLGA).

WILLIAMS LAKE The Museum of the Cariboo Chilcotin will be receiving $24,000 more in annual funding from the City of Williams Lake for the next two years, in order to compensate for having to relocate to the Tourism Discovery Centre last year.

The museum’s former location on Fourth Avenue North was sold by the City to Vantage Living in May of 2017.

Williams Lake City Council has approved a proposal to build a storage building for Rona on a lot at 252 Second Avenue North. The approved development permit variance allows for a 5.8-metrehigh building spanning 41 per cent of the property.

Leon Barnett has joined Interior Properties as their newest Real Estate Agent for their location at #2 – 25 S 4th Avenue. Barnett formerly lived in Bella Coola for 38 years and has more than 10 years of experience in the industry.

Surinderpal Rathor, former Williams Lake city councilor the community. Archie DiCocco has chosen to retire, while his wife plans to find work in the community.

Brad and Nancy O’Neill are the new owners of the Williams Lake Canadian Tire location and have moved from the Niagara region of Ontario to the Cariboo to operate the store. The owners are planning for updates to the facility, in addition to new product features at the store in the near future.

PRINCE GEORGE

Local family-owned and operated business, The Realm of Toys and The Nerd Corner, has relocated to 190A Oliver Street near BFF. They held their grand re-opening celebration on August 11th.

The Economic Development Division of the City of Prince George has released an update on economic growth for the city from January 1 – June 30th. The report indicated a 103.2 per cent increase in the value of building permits to date, at $99.9 million, compared with last year’s to-date value reported at $49.1 million. Residential building permits increased by 57.9 per cent from last year todate at $33.4 million, compared to this year at $52.7 million. Nonresidential permits – which include institutional, industrial, and commercial permits, increased by 199.1 per cent from last year todate which showed $15.8 million, compared with this year at $47.2 million. So far, 177 houses have been sold in the area, a 210 per cent increase over last year’s number to-date of 57. The number of business licenses sold has risen 43.7 per cent with 273 issued to date compared with last year this time at 190. New projects continue for this year, contributing to positive growth in the construction sector with projects such as: a bulk plant on Terminal Boulevard, University Hospital of Northern BC renovations, a new Kelly Road Secondary School building, a new 151-unit downtown condo development, a fire hall, a swimming pool downtown, and a new affordable housing project located on 3rd Avenue.

The Trattoria Pasta Shoppe, a local Italian restaurant operated

by Archie and Carol DiCocco, will be closing its doors after more than 20 years in business in

The Prince George Airport (YXS) reported a 5.5 per cent increase in passengers so far this year from last year at this time, with 251,319 passengers boarding flights or

After a devastating fire burned down Tolko Industries’ Lakeview Division mill, the company announced its intention to bring the mill back to full production

by February of 2019. The facility is now under construction with machinery and equipment testing scheduled to begin in November.

Jim Forbes, an agrologist with the Ministry of Agriculture, has joined the Emergency Operations Centre (EOC) for the Cariboo Regional District in Williams Lake. Forbes will work as a liaison between local livestock farmers who have been impacted by wildfires and the EOC. Surinderpal Rathor, a former Williams Lake city councilor, as received the honour of the Sovereign’s Medal for Volunteers from the provincial government. The award comes in recognition of his extensive involvement in the community, with volunteer hours totaling over 100,000 hours in a variety of different roles.

Kelly Scott and Kim Gardner have recently opened up their new business, Blissful Bubbles Boutique, in the Hart Shopping Mall. Blissful Bubbles began as a home-based business that provides bath creations made entirely of BC ingredients – 90 per cent of which are local, in addition to gifts and products from other local entrepreneurs. The business hosts bath creation and birthday parties, builds custom gift baskets, and features a line of KISS products which cater to customers with sensitivities.

Two major projects have been announced to increase fibre connection between northern BC communities. Shaw will provide connection between Prince George and Dawson Creek, and CityWest has plans to connect the northern BC coast with Vancouver using a below-sea fibre-optic cable. Once completed, these two projects will give Prince George two additional redundant fibre loops, which builds a competitive advantage for the City in welcoming data centres.

The City of Prince George has recruited a BC architecture and design firm, along with a local engineering company, to design a new fire hall that will replace Fire Hall #1 and move its location to a more central spot on Massey Drive. HCMA Architects & Planning, based in Vancouver, will lead the design portion while local company L&M Engineering will design the facility. Construction is scheduled to begin next spring and continue throughout most of 2020.

The 2020 Canadian Masters Badminton Championship will be held in Prince George, forecasting 250 competitors and bringing significant economic advantages to the city. The local economic impact is estimated at over $765,000, and the City of Prince George has decided to contribute $10,733 from their major events budget towards event costs. The city has also backed a request totaling up to $20,000 from their regional development account with Northern Development Initiative Trust.

Funding from private sponsors, the presenting sponsor and participants will cover the remainder of the event costs.

The 14th Annual Northern Symposium and Social, the largest HR-focused event in Northern BC, will take place on September 27-28th at the Ramada Hotel at 444 George Street in Prince George.

This year’s event title is Leadership Starts With You, focusing on current issues for discussion, legal developments, as well as future trends in HR.

DAWSON

CREEK The City of Dawson Creek has hired a new Chief Financial Officer. Ms. Flavia Rossi Donovan began her new CFO position on July 16 th after relocating from Mackenzie where she formerly served as their district’s CFO. Donovan brings with her experience with working for Ernst & Young LLP in Brazil, the CocaCola Company & Group in India and Greece, and volunteering with the United Nations – Migration Agency in Switzerland.

A five-year agreement has been signed between the City of Dawson Creek in partnership with Spectra Venue Management and Hockey Canada to provide a permanent location for the organization and their events. The agreement will see a variety of events hosted approximately every 18-24 months at the Encana Events Centre. Events may include World Junior A Challenge, pre-competition opportunities, the World Parahockey Tournament, and possible training camps. This December the Canadian Women’s National Camp will also be held in Dawson Creek.

The Dawson Creek Chamber of Commerce will be organizing a half-day workshop entitled Cannabis at Work – What You Need To Know, on October 11th . The workshop centers around management of medical marijuana in the workplace, as well as implications of recreational legalization by addressing: the regulatory framework and history, politics, scientific and usage demographics, impairment, workplace safety and accommodation, drug and alcohol testing, recreational use, reasonable suspicion, and more.

Cost to participate in the workshop is between $125-150.

13 A Wildfire Reception Centre has opened up as of August 18th at the Dawson Creek Fire Department.

The centre is available to help wildfire evacuees.

FORT ST. JOHN Home2Suites by Hilton, located at 9519 111th Street, celebrated their second anniversary in business with a reception on August 24th.

Rhythm Auctions has announced their Consignment Sale, being held at their location at 21793 Prespatou Road on September 8th. The company specializes in auction, estate, farm, commercial, real estate, and charity sales.

The University of Northern British Columbia Continuing Studies has announced their new eightmonth Masters Certificate in Project Management program, beginning September 28th in Fort St. John. The program offers training in project planning and management, as well as the academic requirements needed to reach their certified Project Management Professional designation.

Fort St. John’s Co-op locations have announced that they are accepting Red Cross donations to support BC wildfire evacuees, matching all donations received.

Those wishing to contribute can donate at both locations in Fort St. John.

A set of new zoning rules have been approved by Fort St. John city council that will enable recreational cannabis shops to open in the downtown area. The rules apply to 139 lots zoned C2 in downtown Fort St. John, allowing cannabis business operations to SEE MOVERS & SHAKERS | PAGE 14

Business Advice Served Straight Up Fort St. John | Prince George | Terrace | Vanderhoof

PRINCE GEORGE

14

AUGUST 2018

Prince George Employment Up, Real Estate Number Down City of Prince George Economic Update for July

P

RINCE GEORGE - The City of Prince George Economic Development Division recently released its economic update for the month of July.

Employment In July 2018, Prince George’s unemployment rate was 4.1 per cent, a decrease of 1.7 per cent when compared to the same month in 2017 when it was 5.8 per cent. The unemployment rate of 4.1 per cent for Prince George was lower than both the provincial rate of 5.0 per cent and the national rate of 5.8 per cent.

Prince George’s employment rate in July 2018 was 70.2 per cent, an increase from the same month in July 2017 when it was 66.3 per cent, a 3.9 per cent positive change.

The employment rate of 70.2 p er c ent for P r i nc e G e orge was substantially higher than Canada’s national rate of 61.3 per cent and British Columbi a’s rate of 61.6 p er c ent.

Total employment in the Cariboo Economic Development region

was 84,000 during July 2018.

This represents a decrease of 200 jobs when compared to the previous month. The Cariboo region has added 4,700 jobs since January 2018 when total employment was 79,300.

T he Construction industry had the greatest increase in July with an additional 600 jobs being added and Public Administration added 500 jobs. Job numbers decreased by 700 in Education; another notable reduction was 600 jobs in the Social Assistance category.

Real Estate The Canadian Mortgage and Housing Corporation (CMHC) reported the average absorbed single-detached unit price for new housing construction for July 2018 was $478,150 with 24 new units sold in Prince George.

This is a 3.3 per cent decrease in unit price for new housing construction when compared to July 2017 when the average absorbed

single detached unit price for new housing construction was $494,124 and 8 new houses were sold.The number of new houses sold in Prince George increased 200 per cent when comparing July 2018 to the same month in 2017.

Housing Construction According to CMHC, there were 19 (14 SFD, 5 multiples) total housing starts in Prince George during July 2018 compared to 18 (18 SFD, 0 multiple) in July 2017.

This is an increase of 5.5 per cent over the same month last year.

There were 26 (24 SFD, 2 multiples) completions in July 2018 while July 2017 had 7 (4 SFD, 3 multiples) completions. This is an increase of 271 per cent over the same month last year.

Year-to-date total housing starts in Prince George were 115 for 2018 while in 2017 the total housing starts were 103 at this time.

Year-to-date total housing completions in Prince George

reveal another aspect of economic activity; in 2017 Prince George recorded 43 total housing completions during this time period while 2018 year-to-date total housing completions totaled 254.

Building Permits T he City of P ri nce G eorge issued 56 building permits valued at $33,864,218 in July 2018, including $19,747,995 in single family and multiple residential permits, and $14,116,223 in commercial permits.

T h e re w e re n o i n d u s t r i a l permits or institutional permits issued. This is a 38.0 per cent increase in dollar value of total permits over July 2017 when 49 permits were issued a t a v a l u e o f $ 2 4 ,5 3 6,9 8 9.

Year-to-date building permit statistics are impressive. In 2018 a total value of $133,721,182 in building permits were issued compared to 2017 when year-todate building permits came in at

MOVERS & SHAKERS CONTINUED FROM PAGE 13

operate without setbacks from each other, and on land parcels that are only partly located within stipulated buffer zones.

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CEDA has opened up a new, 10,000 square-foot shop at 9811 78 Street. The location holds hot oilers, steamers, tankers, water and pressure trucks, and vacuum units for industrial cleaning services. Steven Cooper has been named as the operations manager for the location.

QUESNEL The Quesnel City Council has g reen-l ig hted a multi-million dollar funding application for the replacement of the Two Mile Flat water main, located in North Quesnel. The total cost of the project is estimated at slightly under $4.7 million, and the funding model for the project is planned for 27 per cent

$73,682,774.

This represents an increase of $60,038,408 or 81.5 per cent over the same period last year. Recognizing construction activity varies each month due to a number of factors, this is a very positive economic indicator for the first seven months of 2018.

Business Licenses T he City of P ri nce G eorge issued 47 new business licenses and 1 business license renewal in July 2018.

Passengers 39,926 p a s s en gers move d through the Prince George International Airport (YXS) in July 2018. This was a decrease of 5.1 per cent or 2,132 fewer passengers over July 2017 when passenger volume was 42,058.

Year-to-date, air passenger traffic at YXS for 2018 is up 3.9 per cent over volumes recorded in 2017. www.princegeorge.ca

mu n icipa l, 33 per cent provincial, and 40 per cent federal.

After 25 years of discussions and attempts at selfgovernment, four First Nations communities in the Cariboo region has signed a treaty agreement in principle with the federal and provincial governments.

Chiefs Patrick Harry of Canoe and Dog Creek, Helen Henderson of Canim Lake, Andrea Gilbert of Soda Creek, and Ann Louie of Williams Lake, along with federal and provincial representatives, were present at Canim Lake to sign the agreement for their bands.

T he NStQ A g reementin-Principle provides the groundwork for the treaty, particularly in the areas of land and resources, social services, harvesting rights, and means of transitioning to self-government from the Indian Act. A million-dollar grant will be transferred to the City of Quesnel that was initially awarded to C&C Wood Products from the Forest Enhancement Society of BC. C&C indicated that the grant would be best managed by the City, due to their vision with the Community Wildfire Protection Plan.

T h e Cent ra l Ca r ib o o Search & Rescue and the Cariboo Regional District we re re c o g n i z e d w it h plaque awards from Emergency Management BC to

commemorate their exceptional community work while the 2017 wildfires ravaged the area.

SMITHERS Former Commander for the Smithers RCMP Detachment, Rob Mitchell, has moved to another position after three years as Commander. Mitchell now works full time as the District Advisory NCO (DANCO) for the Kitimat/Stikine region. Darren Durnin will serve as Acting Commander of the Smithers Detachment until the position is filled.

L oca l compa ny, Canadian Craftsman Builders, was awarded a $451,200 contract for construction of a fire storage unit for the town. The project proposal was initially estimated at $436,200, but plans for sola r pa nels have been added which increases the cost by $15,000. The extra $15,000 will be provided by Smithers Greenhouse Gas funds.

Paul’s Bakery, owned and operated by Brian Sikkes and his wife Sheona, his daughter Caitlan and her husband Darren McMillan, celebrates its 60th year operating in the community.

Their products are sold in over 10 restaurants in the Bulkley Valley area, and the shop still uses the original recipes from founder Paul Sikkes.

OPINION

AUGUST 2018 A division of Invest Northwest Publishing Ltd. Prince George Office 2871 Wildwood Cres Prince George, BC V2K3J4 Toll free: 1.866.758.2684 Fax: 778.441.3373 Email: info@businessexaminer.ca Website: www.businessexaminer.ca

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NDP UNION-ONLY CONTRACTS FOR BC INFRASTRUCTURE BAD FOR TAXPAYERS AND BUSINESS COMMUNITY

MARK MACDONLD

P

remier John Horgan just picked millions more from taxpayers’ pockets by announcing that major government infrastructure projects will be only built by union companies and labour.

It’s a direct payback to their supporters. . .pork barreling of the worst degree.

And it’s going to cost us all plenty.

Nearly $4,000 for every family in BC, according to an Independent Contractors and Businesses Association of BC press release, which states it could add as much as $4.8 billion to the costs of these projects, which have been tabbed at $25 billion.

Business groups in the province are outraged. Besides the ICABC, nine organizations, including the BC Chamber of Commerce, Canadian Federation of Independent

Business, Vancouver and Surrey Boards of Trade, and the Vancouver Regional Construction Association have decried Horgan’s pronouncement.

Just imagine the outrage the NDP would have unleashed if the previous government handed millions of dollars directly into their own supporters’ wallets.

If there is a more hypocritical outfit than the NDP, I’ve yet to see it.

While in opposition they constantly pointed the finger, decrying almost every move the government made, vowing to restore honesty and integrity to the public process if they ever get elected.

They didn’t get elected, but still managed to steal government thanks to former NDP MLA Andrew Weaver and his Green Party cohorts, and as soon as they got their hands on the till, opened it up to reward those that have paid their way over the years.

Big unions have been faithful contributors to the NDP over the years, siphoning off members’ dues to try and elect the party they believe will look after them. Even though the ultimate damage the NDP does to the economy means less jobs for everyone, including their union supporters, when the economy inevitably goes sour due to their

ill-conceived policies.

In just one year, the NDP has introduced 13 new tax and fee increases that affect business for the most part – even though the NDP fails, again, to realize that those costs are passed off to, and paid for, by consumers.

One would hope that the NDP would dissect their own disastrous decade in power in the 1990’s and conduct an autopsy, wondering what went so wrong that they ended up with only two seats in the 79 seat BC legislature during the initial election of Premier Gordon Campbell.

Obviously they haven’t. This is exactly the same NDP. Perhaps nobody should be surprised.

It’s like the Bill Murray movie, “Groundhog Day”. Déjà vu all over again.

When the NDP last held government in BC, they did exactly the same thing regarding “uniononly” construction of public infrastructure.

To build the new highway on Vancouver Island, the 1990’s NDP government allowed only union companies to “compete” for contracts. Taxpayers paid excessively for that, as the project was many millions of dollars over budget, causing the NDP to faintly exercise

some form of restraint by changing designs late in the process.

Most notable was the elimination of intersection overpasses and cloverleaf’s on what became known as the Nanaimo Parkway.

The land was procured and in fact still lies dormant at the Aulds Road, Mostar/Jingle Pot, Northfield, 3rd Street/Jingle Pot and 5th Street.

The result? Sluggish traffic movement throughout the Parkway, as typical increases in traffic due to ferry traffic and rush hours cause motorists to cautiously approach upcoming lights. This creates a chain reaction of starts and stops up and down the highway.

That’s not the worst of it, by a long shot. The resulting head-on car crashes, injuries and even deaths at all of those intersections in the ensuing years would have been completely eliminated, if the proper overpasses and clover leaf exits were installed during construction. The north and south lanes on the Parkway would never have met within the city, making collisions with contrary traffic virtually impossible.

Of many well-documented NDP catastrophes (Fast ferries, Bingogate, etc.), perhaps the Nanaimo Parkway union-only construction was the most egregious. Not only

did taxpayers get stiffed again for the massive cost overruns, motorists and passengers have been injured and killed.

All because the NDP decided to pay back their big union supporters, complements of the public purse.

What next? More fast ferries?

Wait just a minute. Horgan announced BC Ferries is going to build five new ferries, and he would like to have them built here. So much for BC Ferries being its own separate entity – it’s clear that the NDP views it as one of its political pawns.

There’s a good reason why BC Ferries has had their most recent vessels built in Europe. They’re more cost efficient, and the industry there is capable of handling the capacity of building more ships.

BC doesn’t have that capability currently, and labour costs are a big reason why ferries aren’t built at home. But will that stop the NDP? It didn’t before, as then Premier Glen Clark barreled ahead to create the doomed 1990’s fast ferries, which ultimately contributed significantly to the NDP’s demise.

What will the NDP do next? Take a good look at what they have done.

There’s a good chance they’ll do exactly the same thing, making it clear they haven’t learned from their mistakes at all.

BC CAN SPUR ENTREPRENEURSHIP BY CUTTING PERSONAL INCOME TAXES

THE FRASER INSTITUTE

BY ERGETE FEREDE AND CHARLES LAMMAM

E

ntrepreneurship remains a vital source of innovation, which helps grow economies and provide employment opportunities for British Columbians.

Unfortunately, several recent studies have found fewer businesses are being started in BC (and Canada as a whole), pointing a long-term decline in rates of entrepreneurship.

This downward trend in entrepreneurship could have negative and widespread effects on BC’s economic well-being.

Given t he cu r rent state of ent repreneu rsh ip, t here’s a growing debate over how government policies affect entrepreneurship and what policies could help reverse the decline. A common focus of these debates is tax policy.

D o h i g h e r p e rs o n a l t a x e s hurt entrepreneurs? If so, how much do changing tax rates affect entrepreneurship? Since BC recently increased its top personal income tax rate from 14.7 per cent to 16.8 per cent, these are timely questions with real consequences for British Columbians.

A higher income tax rate can affect entrepreneurship in two ways.

On one hand, it can discourage entrepreneurship because entrepreneurial activity is inherently risky, and entrepreneurs pay significant taxes on all incomes (labour income, capital gains or dividends) when they’re successful.

However, the tax savings for entrepreneurs are quite limited when they incur losses. Higher

taxes decrease the reward for entrepreneurs but do little to mitigate the risk, leaving them with plenty of risk and far less opportunity for reward.

On the other hand, with a higher income tax rate, entrepreneurs have more opportunities to reduce their tax burden through legal tax-planning techniques, and the potential tax-saving benefits increase with higher income tax rates. This suggests that higher income tax rates can actually encourage entrepreneurship, even if it’s not productive entrepreneurship.

So how do rising personal income tax rates impact entrepreneurship in practise?

A recent Fraser Institute study sought to answer this question.

The study analyzed Canadian provincial data from 1984 to 2015, focusing on how the top personal income tax rate affects entrepreneurship while accounting for other factors that also influence entrepreneurship such as demographics, business taxes and the state of the economy. To measure entrepreneurship, the

study uses the business entry rate, defined as the number of new businesses as a percentage of total businesses.

The findings are telling and clearly relevant for British Columbians. Increasing the top personal income tax rate is associated with lower rates of entrepreneurship. In BC, for every one percentage point increase in the top personal income tax rate (holding all else constant), 315 fewer new businesses would enter the economy over the long term (in this context, approximately a four-year span).

However, the BC government in 2018 increased its top personal income tax rate by 2.1 percentage points. Based on the study’s findings, we estimate that 662 new businesses will not start up in the province due to the higher tax rate.

Over the past 30 years, an average of 25,305 new businesses started in BC each year. Because the federal government also increased its top income tax rate by four percentage points in 2016, British Columbians can expect

the decline in entrepreneurship to be steeper. So relative to the average number of businesses created each year, increasing the top income tax rate by 2.1 percentage points will reduce the number of new businesses by 2.6 per cent.

The Canadian economy has experienced a decline in entrepreneurship for years. If BC wants to halt this decline and encourage entrepreneurship, reducing the top income tax rate would be a good place to start.

At the very least, if BC policymakers don’t want to exacerbate the decline in entrepreneurship, they should refrain from further increases in the province’s top income tax rate.

Ergete Ferede is associate professor of economics at MacEwan University and Charles Lammam is director of fiscal studies at the Fraser Institute. The study, The Effects on Entrepreneurship of Increasing Provincial Top Personal Income Tax Rates in Canada, is available at www.fraserinstitute.org

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