Business Examiner Peace Cariboo Skeena - March 2016

» TRANSPORTATION

MARCH 2016

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VANDERHOOF Ford Dealer Celebrates 10th

Wherevver Business Takes You T

Anniversary

Peace Cariboo Skeena WWW.BUSINESSEXAMINER.CA

Now in Terracee

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Truck Loggers Elect First Female President

PRINCE RUPERT Annual First Nations Business Conference

Jacqui Beban will serve a two year term as TLA president

Next Month

BY DAVID HOLMES

V PAGE 16

INDEX News Update

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Prince George

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Kitimat

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Movers and Shakers 14 Prince Rupert

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Quesnel

15

Opinion

18

BC Budget

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ANCOUVER – For the first time in it’s more than 70 year history the BC Truck Loggers Association (TLA) has elected a female president. “I’m excited and nervous all wrapped up into one,” explained Jacqui Beban who was elected during the group’s Annual General Meeting (AGM) held in Vancouver in January.

“I love forestry because no two days are the same,” Beban explained at the time. “And I’m proud of how far our industry has come. We are safe and sustainable. With the environmental stewardship, technological

advances and opportunities with First Nations happening right now, it’s an exciting time to be a part of this industry.”

Not merely a first for the Truck Loggers, Beban’s election is a first for any BC forestry association.

Born into a logging family, she is currently the General Manager of Frank Beban Logging which is working in partnership with Nootka Sound Timber Co. Ltd. which is presently managing a forest license on the west coast of Vancouver Island near Gold River. Born and raised in Nanaimo she has lived in Qualicum Beach for the past 15 years.

“The Truck Loggers Association SEE TRUCK LOGGERS | PAGE 4

Jacqui Beban was elected President of the BC Truck Loggers Association during its AGM in January

Diversification Key To Port Authority’s Success While bulk cargo shipments were down markedly, container shipments on the rise last year

P

RINCE RUPERT – Northern British Columbia’s maritime gateway to the world, the terminals operated by the Prince Rupert Port Authority (PRPA) were operating at record breaking levels last year. “While the shipment of bulk cargoes, most noticeably coal, were down significantly, the container segment of our business was up markedly,” explained Michael Gurney, the PRPA’s Manager of Corporate Communications.

The Port of Prince Rupert recorded a massive surge in container volumes last year and the continued success of grain and wood pellet terminals at the Port of Prince Rupert helped to make

up for the drop in bulk cargoes.

Coal and Petroleum Coke shipments out of the port last year were down significantly as compared to 2014 – caused in part by mine closures and to fluctuations in global commodity markets. “ T h e 2 015 c a rgo v ol u m e s achieved by our dedicated port workforce demonstrate the importance of cargo diversification, given the dramatic change in market conditions for Canadian trade. While down marginally from last year’s total volume, 2015 was historically the fourth best year on record, and signifies the port’s ability to weather commodity cycles and capitalize on opportunities for expansion and

new development,” explained Don Krusel, President and CEO of the Port of Prince Rupert.

According to Gurney the real key to the success of the port is its ability to transport a diverse range of cargoes. “Shipments of steel-making metallurgical coal through Ridley Terminals were down over 60 per cent from 2014, resulting in a six-year low for bulk energy shipments through the port. This was offset by another strong year for prairie crops like wheat and canola through Prince Rupert Grain, contributing to the second-best year on record for agri-food exports with 6.4 million tonnes shipped,” he stated.

“Westview Terminal continued

to support the production and shipment of wood pellets from across northern BC in 2015 with a 44 per cent surge in volume. The biofuel export terminal also set a world record by loading the single largest shipment of wood pellets in June 2015.”

The Port of Prince Rupert actually involves multiple deep water terminals, most notably the Northland Cruise Terminal, the Westview Wood Pellet Terminal and the Fairview Container Terminal. “Traffic through the container terminal was especially significant last year,” Gurney stated.

SEE PRPA | PAGE 6

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NEWS UPDATE

2 NORTHERN BC Bc Construction Industry Hiring Workers Back From Alberta Strong activity in British Columbia’s construction industry is drawing skilled workers back to the province from Alberta and more young people are entering the trades, according to the 2016 Construction Industry Survey released today by the BC Construction Association, in partnership with Progressive Contractors Association and Construction Labor Relations.

The survey found that 45 per cent of employers hired a worker last year that came directly from working in Alberta’s oil and gas sector. The number of youth going directly into the construction trades from high school is up 15 per cent since 2014.

While key economic data in the 2016 survey confirm a healthy and expanding sector, storm clouds continue to loom on the horizon for BC’s $8.1 billion construction sector. Two-thirds of workers in skilled trades are now over the age of 45 and in their wake there are not enough new people entering the field. These demographic trends and a projected increase in construction activity are forecast to create a 15,000 worker shortfall.

The 2016 survey also provides the most complete picture to date of trade wages and salaries in BC’s construction sector. Some key findings include: ■ 94 per cent of BC construction employers say they are planning to hire in 2016. These will be predominantly fulltime, yearround jobs.

■ 50 per cent of employer respondents reported offering higher wages than 2015.

■ 88 per cent of entry-level workers are happy with their wages.

■ 44 per cent of apprentices received a raise in 2015.

■ $56,170 is the average annual salary of a BC construction industry worker.

LILLOOET Lillooet Airport Receives

Funding For Upgrade LILLOOET – Funds approved through Northern Development’s Economic Diversification Infrastructure program will transform the Lillooet Municipal Airport into a long-term asset that will generate benefits for the local economy.

The Trust’s Board of directors approved $122,786 in funding for the airport, which will be used for repairs, a revamping of the fueling system and an updated pilot lounge. The upgrades mean Lillooet can promote the airport to a wider range of users, contributing to increased air traffic in the area and supporting investment attraction, business expansion and a boost in tourism.

An enhanced airport will also provide access to Canada’s national air transportation network.

Residents will soon have a viable transportation link and access to emergency health care services beyond those currently available in the community.

The enhancements will expand revenues to the District of Lillooet through increased aviation activity and non-aviation activity, diversifying economic activity in the region, which includes the northern Squamish-Lillooet Regional District and St’át’imc First Nation. Northern Development’s funding makes up 50 per cent of the total project budget, which is $245,573.

Northern Development’s Economic Diversification Infrastructure program has previously been used to fund airport upgrades in Masset, Terrace, Prince Rupert, Burns Lake, Fort St. John, Prince George, Dawson Creek, Quesnel, Anahim Lake and elsewhere.

FORT ST. JOHN City and BC Hydro Reach Agreement BC Hydro and the City of Fort St. John announced yesterday they have reached an agreement-inprinciple on a Community Measures Agreement related to the construction of the Site C Clean Energy Project. Negotiations between the City and BC Hydro have been ongoing for several years.

Under the terms of the legally

MARCH 2016

binding agreement, BC Hydro commits to specific mitigation measures important to the City of Fort St. John.

Some of the features of the agreement include: ■ BC Hydro will provide $1 million per year to the City during construction, increased by 3.5per cent each year.

■ BC Hyd ro w i l l cont r ibute $100,000 per year for eight years to a community fund to assist non-profit agencies in the Peace Region.

■ BC Hyd ro w i l l cont r ibute $250,000 to local non-profits that provide emergency and transitional housing services, including the recent $200,000 donation to the Salvation Army’s Northern Centre of Hope.

■ BC Hyd ro w i l l cont r ibute $75,000 this year to support local charities identified by the City.

■ BC Hydro will fund one additional police officer to be based out of the Fort St. John RCMP detachment, and will also conduct regular traffic monitoring on local roads near the project.

■ BC Hydro and the City will work together through a Site C Community Agreement Monitoring Committee, consisting of senior representatives from both BC Hydro and the City. The committee will track implementation of the agreement, and provide a forum to identify and resolve issues arising during project construction.

BC Hydro and the City have also agreed to a dispute resolution process to support resolution of issues, if required. BC Hydro will provide administrative support for the committee.

■ BC Hydro and the City will support the health and wellness of the project workforce, through BC Hydro’s annual prepurchase of tickets for the use of Fort St. John recreation facilities totalling approximately $423,000 over the construction period.

■ Should the City decide to expand its boundaries, BC Hydro will support the application to include the 96 hectares of land at 85th Avenue.

■ BC Hydro will maintain a Community Consultation Office as a

means of providing information to the public and stakeholders regarding procurement, employment and construction activities.

■ BC Hydro and the City will coordinate regular monitoring of the City drinking water source quality and quantity at BC Hydro’s expense.

■ The City has confirmed its ability to access its rights to water from the reservoir as a potential future source of domestic water, if needed, and at no charge from BC Hydro.

NORTHERN BC Energy Infrastructure Royalty Program Expanded BC - The Government of British Columbia has made the decision to expand the Province’s Infrastructure Royalty Credit Program (IRCP) for three years.

By offering $120 million in royalty credits annually for the next three years, the Province is providing companies with a longer timeframe to work new capital expenditures into their plans. Expanding the program will help to create certainty and improve the Province’s ability to attract new investment given the economic conditions facing industry due to lower natural gas and oil prices.

The three-year allocation of the program was first announced as part of the provincial budget and three year fiscal plan on Feb. 16, 2016.

All other aspects of the IRCP remain unchanged. A company must fully fund and complete an approved infrastructure project before it can apply to recover up to 50 per cent of the project’s costs. This approach uses a portion of royalty revenue collected to support development without a direct expense to government.

Companies can apply for the latest installment of the IRCP until April 15, 2016. As in previous years, applications will be ranked according to their potential benefits, with approval going only to the projects demonstrating the highest economic advantage to British Columbia.

NORTHERN BC Feds Invest in Economic Growth for Indigenous Peoples CANADA - Western Economic Diversification Canada (WEDC) has announced that it will invest more than $5.4 million, through Indigenous and Northern Affairs Canada’s Strategic Partnerships Initiative, in support of economic opportunities for First Nation communities in British Columbia. This investment will help support innovation and unlock economic opportunities in the province’s clean energy and natural resource sectors.

Federal funding of $3,950,000 will be provided by WEDC to s u p p o r t t he B C I nd igenou s Clean Energy Initiative, which aims to provide early support to boost Indigenous communities’ capacity and readiness to develop clean energy projects by fostering awareness, providing needed funding, as well as facilitating private sector engagement and partnerships.

A second investment of $1,500,000 w ill support the New Relationship Trust to create an Economic Development Support Team (EDST) that will provide advice and support to First Nation communities that want to advance economic opportunities in the West Coast Energy sector.

T he B C I nd i geno u s Cle a n Energy Initiative is expected to involve at least 35 Indigenous communities in the development of clean energy projects, while helping to create at least 40 jobs, and supporting expansion for 30 businesses. It is expected that this support will also help leverage $5 million in new capital investments.

The Economic Development Support Team will provide economic development advisory services to at least 12 First Nations in BC. The team will work with communities to help them take steps to advance economic development opportunities related to the West Coast energy sector.

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NEWS UPDATE

MARCHS 2016

NORTHERN BC Main Water Licenses Issued For Site C The main water licenses have been issued to BC Hydro’s Site C project by the deputy comptroller of water rights today.

Two conditional water licenses allow BC Hydro to store up to 165 million cubic meters of water and divert from 390 cubic meters of water per second to 2,700 cubic meters of water per second from the Peace River for fithe purposes of power generation. One permit allows for the creation of a reservoir to cover approximately 9,580 hectares of Crown land along the Peace River.

All three authorizations are for a period of 40 years and require construction to be completed before Dec. 31, 2025. Prior to construction of the dam and spillways, BC Hydro must have approved engineering plans, an emergency response plan and an environmental management plan in place.

Conditions in the water licenses are consistent with environmental assessment certificate conditions. The provincial and federal governments granted approval for Site C in October 2014.

The Site C project will require several hundred separate authorizations over the life of construction. More than 30 different authorizations have already been issued for dam site clearing and construction activities.

The Province continues to consult with First Nations on all authorizations that will be required for the project.

Site C will provide approximately 10,000 direct jobs during construction. The project will generate enough electricity to power about 450,000 homes per year, an 8 per cent increase in supply to BC Hydro’s system in 2024.

Upon completion, Site C will provide a century of affordable, reliable and clean power that will keep rates low, support British Columbians’ quality of life and enable increased investment and a growing economy.

THE PROVINCE Commercial Real Estate Indicator Signals Market Stability The BCREA Commercial Leading Indicator (CLI) broke a string of two consecutive declines, eking out a 0.1-point increase to an index value of 120.0 in the fourth quarter of 2015. On a yearover-year basis, the CLI was 0.4 per cent higher than in 2014.

“Uncerta i nty i n the g loba l economy roiled financial and c om m o d i t y m a rk e t s i n t h e second quarter,” said BCREA Economist Brendon Ogmundson.

“However, BC’s nation leading

economic growth should help to sustain commercial real estate activity through the end of the year.”

“Financial market jitters offset solid gains from a strong BC economy. We expect that the economic environment will remain supportive of steady growth in the commercial real estate market.”

The CLI was virtually flat to end the year, which in combination with a falling index through the spring and summer has produced a flattening of trend underlying the index.

That trend suggests that growth in commercial real estate activity will neither accelerate nor decelerate over the next two to four quarters.

BURNS LAKE Province Creates Community Forest Near Burns Lake The creation of a new community forest near the Village of Burns Lake will help promote economic stability and employment opportunities, and enhance the ability for local forest stewardship, announced MLA for Nechako Lakes, John Rustad The Chinook Community Forest Agreement covers 90,670 hectares and includes an allowable annual cut of 150,000 cubic metres. The agreement has an initial term of 25 years, and is renewable for another 25-year term after 10 years.

Creation of the Chinook Community Forest helps fulfil a provincial commitment to support opportunities to source timber for the rebuilt Babine Forest Products mill that experienced an explosion and fire on Jan. 20, 2012, resulting in loss of life.

The economic hardship that followed threatened the economic sustainability of affected communities in and around Burns Lake. The new community forest aligns with recommendations in the August 2012 “Growing Fibre, Growing Value” report from the Province’s Special Committee on Timber Supply to respond to the loss of the mill.

The community forest agreement will also help support the Pinnacle Pellet mill’s continuing operation in the community.

The community forest agreement includes eight partners consisting of the Regional District of Bulkley-Nechako, the Village of Burns Lake, Lake Babine Nation, Skin Tyee First Nation, Nee Tahi Buhn Indian Band, Burns Lake Indian Band (Ts’il Kaz Koh), Cheslatta Carrier Nation and Wet’suwet’en First Nation.

Community forest agreements are long-term, area-based tenu res desig ned to encou rage community involvement in the management of local forests. A community forest is managed by a local government, community group or First Nation for the benefit of the entire community.

Pictured L-R: Michael Johnson, CPA, CA; Curtis Billey, CPA, CA; Sheryl Rice, CPA, CGA and Rory Reinbolt, CPA, CA

Your opportunities are expanding.

So is our firm.

McAlpine & Co. merges with MNP You’re always looking for new opportunities to grow your business. That’s why MNP continues to expand our locations and add the best within the industry to meet all your business needs. Please join us in welcoming Terrace, B.C.-based McAlpine & Co. to MNP. Serving clients across northwestern B.C. since 1969, McAlpine is a like-minded firm that shares MNP’s values and a commitment to helping our clients succeed.

As Canada’s first national accounting and consulting firm to open in Terrace, we are thrilled to be working together to deliver enhanced services to private and public sector clients and First Nations across the region. Our office remains at Suite 201, 4630 Lazelle Ave in Terrace.

With this merger, you can now access MNP’s expertise in four northern B.C. locations, including Terrace, Prince George, Vanderhoof and Fort St. John.

National in scope and local in focus, MNP continues to grow the best team possible to ensure you stay competitive and profitable.

To find out what MNP can do for you, contact Michael Johnson, CPA, CA at 250.635.4925 or michael.johnson@mnp.ca

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PRINCE GEORGE/OFF THE COVER

MARCH 2016

CHAMBERS OFFER OPPORTUNITY TO MAKE STRONG CONNECTIONS Whether they join an event or rent a hot desk, the modern business person will enjoy being

PRINCE GEORGE

surrounded by the energy and support of other entrepreneurs and

CHRISTIE RAY

business people in the

eing in business can be a lonely business sometimes.

E sp eci a l ly for homebased entrepreneurs, satellite workers, on-line sales people, or micro-businesses, it is possible to serve hundreds of customers and yet spend most of your day being physically alone.

But as human beings, we need to be in touch with others, not just through technology, but face-to-face.

Deep level engagement and the sense of wholeness we feel being around other people, giving and

B

community

TRUCK LOGGERS

“There are some

CONTINUED FROM PAGE 1

receiving energy and ideas, and interacting emotionally in real time, contributes to innovative thinking and general well-being.

Consequently, this can cause people to become more productive in business, especially when it comes to the synergy and awareness that develops through physical proximity to others.

The Chamber plays an important role in Prince George in providing opportunities for business people to congregate. We take pride in giving our members a plethora of choices when it comes to events, workshops, networking sessions, and celebrations. If you want to get out from behind your desk every once in a while, we’d love to be your excuse to do so.

One of the great events that occurred recently, on February 24, was Mentor-to-Mentor hosted by our Chamber, Innovation Central Society and Startup PG. Unlike traditional networking events, Mentor-toMentor (M2M) doesn’t involve having to start conversations

with strangers on your own by ‘working the room’.

Participants are prompted and prepared to begin conversations in a fun and dynamic way with people from different generations so that they can learn from each other. The roles of mentor and mentee are interchangeable as the event is based on the premise that everyone, no matter what stage of life or in business, has something useful to share with others.

The Mentor-to-Mentor event was held in the NEW Hubspace Community at 1299 3rd Ave in Prince George. The introduction of Hubspace to our business community is another topic all on its own. Best described by the statement on the Hubspace website, “HUBSPACE is MORE than just a building – It’s about modeling the future we want to create.”

But the building, on its own, is impressive; Innovation Central has leased the former Homework building; 5500 sq. ft. on the corner of Third Ave and Quebec. It

is a fresh, bright and open-concept space where people can cowork as monthly or permanent tenants or by renting a hot desk on a daily or weekly basis. They also have other larger meeting spaces for rent. Hubspace offers some innovative options for entrepreneurs who want to tap into the possibilities and benefits of shared co-working.

Between the Chamber and the Hubspace Community, there are many options for business people who don’t want to be so lonely in business in Prince George.

Whether they join an event or rent a hot desk, the modern business person will enjoy being surrounded by the energy and support of other entrepreneurs and business people in the community.

Christie Ray is the CEO of the Prince George Chamber of Commerce. She can be reached at christie.ray@ pgchamber.bc.ca.

LOCAL COMPANY BRINGS OUT YOUR INNER ‘DIVA’

tremendous opportunities represents independent forestry companies all up and down the coast. We’re definitely an advocacy group. Last summer we got together to go over our strategic plans which are essentially our guidelines for the next few years. At that time it was decided that some of the things we would be focusing on should include contractor sustainability, which means ensuring the contractors who do the work are getting paid enough money so that they can pay their employees fair wages,” she explained February 4.

“They also should be able to reinvest in their business while supporting the communities that they live in. The objective of course is that at the end of the day they have a return on the capitol they have invested.

Forestry is a highly capitalized business. It doesn’t make sense to have millions of dollars tied up if you’re not getting a return on that investment.”

Beban has served with the TLA Board for the past 10 years and will serve as president for the next two. “Presently the truck loggers association includes more than 450 member companies.

We’re just working on determining how many actual employees that involves but it would certainly be over 10,000 people.”

One area of concern for Beban is an ongoing need to attract young people into the province’s forest industry. “It seems the general trend is that we have an aging work force, I think right now the age of our average worker is about 50 years so there are some tremendous opportunities for young people to get into this business,”

for young people to get

Big business is great

into this business.”

for the economy, but it’s the local, unique

JACQUI BEBAN PRESIDENT TLA

shops like For The Diva

KITIMAT

In You, whose pride in their community is

TRISH PARSONS

she said.

“The thing that can’t be forgotten is that the jobs that are available are all good paying ones.

Young people have the opportunity to remain in BC, to stay on the Island and to build a profitable career, and there is no better place to live then that. I think the main message I want to get out is that there are lots of opportunities for people in the industry right now. Our demographic is definitely getting up there so if you’re interested in staying and working on the coast in BC give forestry a second look.”

Since its incorporation in 1943 The Truck Loggers Association has had 37 male presidents, Beban’s election is viewed by many as a historic first. “We welcome Jacqui,” said David Elstone, TLA Executive Director following her election.

“Her experience as a logging business owner and her history with the industry will make her an excellent president.”

To learn more visit the Association’s website at: www.tla.ca/

K

iti mat conti nues to benefit from the ongoing prepa rations a nd preworks for a number of different projects, including early works site preparation at the LNG Canada site and site services installation for the Pomeroy Hotel on Horizon North’s site.

There is a steady hum of exc avators, du mp t r u ck s a nd low beds moving equipment in and about town as construction continues in anticipation of further economic boosts to the region. Amid the bustle of construction there is a quiet little shop called For the Diva In You making some noise too!

I n the supply/ser v ice sectors there have been noticeably more available parking spots and shorter line ups in recent months as we transition between projects. Local entrepreneurs Carol Dale and Meaghan Dale of For The Diva In You have noticed the change, and have been working “outside the box” to pique the interest of residents and new customers with some unique partnerships in recent months.

January was Get Your Skinny

evident and working together supporting their community they have multiplied their impact on Kitimat by thinking “outside the box”.

On! L ook your best in 2016! with Crystal Clear Nutrition, Pace Gym, Vitality a nd Ever After Laser joining Carol and Meagha n at For T he Diva In You for an evening of fun and options to support those New Year’s Resolutions.

A fter many months of cold weather February was the perfect time to partner with local travel agent Elan Travel for Cruise Night promoting a cruise from New York to Puerto Rico while checking out the Diva’s new holiday clothing line.

Let’s Give a Hoot! Is the March promotion, where the students from Kildala Elementary School have created owl designs to promote this month’s charity event raising funds for the Kitimat Community Services Humane Society. Kyle’s No Frills, just

recently opened in Kitimat, has donated a gift certificate to be drawn from entries at the shop, where customers purchasing “anything owl” will have 15 per cent of their purchase price donated to the local animal shelter.

Big business is great for the economy, but it’s the loca l, unique shops like For The Diva In You, whose pride in their community is evident and working together supporting their community they have multiplied their impact on Kitimat by thinking “outside the box”.

Trish Parsons is Executive Director of the Kitimat Chamber of Commerce. She can be reached at 250-632-6294 or tparsons@ kitimatchamber.ca

S WE

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Visit

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Today!

WE’RE STANDING UP FOR CREATING JOBS FOR BC FAMILIES.

JOIN US AND HELP US GET MAJOR PROJECTS TO YES.

VISIT ICBA.CA Independent Contractors and Businesses Association of BC #203 – 2666 Queensway, Prince George E: info@icba.ca T: 250-596-8118

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OFF THE COVER

MARCH 2016

VANDERHOOF FORD DEALER CELEBRATES 10TH ANNIVERSARY SPOTLIGHT

Westline Ford had previously operated under the corporate name Fox Ford

V Prince Rupert’s Fairview Container port recorded a 26 per cent increase in shipments last year

PRPA CONTINUED FROM PAGE 1

In the world of commercial shipping, operators quantify their productivity based on twentyfoot equivalent units (TEU). Last year the container port moved 776,412 TEUs, a jump of more than 26 per cent from 2014, an all time high for the port. The record helped to solidify its status as one of North America’s fastestgrowing intermodal terminals.

Last year also saw significant progress made on the Phase II North expansion project at the terminal, with a planned addition of 500,000 TEUs of capacity, a project that is on schedule for completion in 2017.

Acquired by Dubai-based DP World in 2007, the Fairview Terminal has been specifically designed as a high volume

Intermodal container transfer facility where containers are moved rapidly between vessel and rail transport enhancing Prince Rupert’s total transit time advantage. Strategically situated on the great circle route from Asia, Prince Rupert is also North America’s deepest natural harbor. The Prince Rupert Container Terminal is able to comfortably handle the world’s largest container vessels.

In 2015, the more than 3,000 men and women directly employed in port-related jobs across Northern British Columbia’s trade corridor contributed to the movement of 19.6 million tonnes of containers, grain, coal, forest products and other commodities through Prince Rupert’s five terminals.

To learn more visit the PRPA’s website at: www.rupertport.com/

The Prince Rupert Port Authority operates a total of five deep water terminals

ANDERHOOF – Award winning Weslline Ford is now working on its second successful decade of providing quality products and exceptional service to the greater Vanderhoof market. “While Westline Ford itself may be 10 years old we’ve actually been operating in the town much longer than that under the Fox Ford name,” explained Harvey Derksen, Westline’s Owner/ Manager.

“Many of our staff members have been working here longer than Westline Ford has actually existed. We offer top service in all aspects of our business, from sales and service to our front office. One thing I can guarantee you is that we have employees here who genuinely care about their customers, in many cases they’ve known them for years and have that level of personal involvement in their vehicle purchasing satisfaction.”

T he present Westl i ne Ford dealership, located at 1473 Highway 16 East, features more than 10,500 square feet of office, shop and showroom space. “It’s no understatement to say that we offer a fantastic product line,” Derksen said.

“Ford has really stepped up its game. The company has done a lot of things right, from not taking bailouts, to improving its corporate image to the excellent quality of its vehicles. It’s exciting to see just how far this company has come. I’ve seen a lot in my 35 years with Ford.”

Westline Ford was a President’s Award winner in 2014, an accolade that comes from the company’s head office and recognizes such factors as sales figures, levels of customer satisfaction, profitability, local community involvement and many others.

“This is actually the second time that our dealership has won this award so we must be doing something right. It’s not an easy award to win,” Derksen said.

“In fact when we won the award in 2014 we were the only Ford dealership located north of Kamloops to win one.”

An active part of the community, an award winning business, Westline Ford looks forward to continuing to serve its ever growing market. “We have a lot to be proud of, we’re award winners, we have a top flight service department and we have a good outlook for the future for both our dealership and the area in general,” he said.

The dealerships’ Parts Department was one factor in the operation winning a President’s Award in 2014

The dealership’s Parts Department was one factor in the operation winning a President’s Award in 2014

“One thing I can guarantee is that we have employees who genuinely care about their customers.”

HARVEY DERKSEN OWNER, WESTLINE FORD

“Even though we’re definitely a Vanderhoof business we clearly compete for the Prince George market, and we do pretty well at it.”

To learn more visit the dealership’s website at: www.westlineford.com/

Harvey Derksen is the Owner/ Manager of Westline Ford and has been with Ford Motors for more than 35 years

Congratulations on your continued success Petroleum Vanderhoof Co-op Petroleum 250.567.4488 Quesnel 1-888-992-2667 Vanderhoof 1-888-545-2667 Food Store 250.567.4406 Home Centre 250.567.4464 Prince George 1-866-309-2667 Houston 1-800-848-6347 Gas Bar 250.567.4486 Admin 250.567.4414 Terrace 1-250-635-9595

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MARCH 2016

TRANSPORTATION Transportation: Key to Northern BC Development Rail, Road, Sea & Air Transportation A Vital Regional Industry

E

ncompassing more than half the province, Northern British Columbia takes in some 500,000 square kilometers, a landmass larger than Sweden and twice the size of Great Britain. A resource treasure trove and the engine that will continue to drive the provincial economy throughout the 21st Century, Northern BC is a vast and sparsely populated region that would not have been developed without the thousands of dedicated men and women who work in the transportation industry.

By sea, by rail, by road and by air – hundreds of thousands of people and millions of tons of goods and materials are shipped into and out of the region annually. Quality and effective transportation is the key to the future growth and success of this vital region.

SEE TRANSPORTATION | PAGE 8

Prince George Airport is a major air hub and can handle aircraft of all sizes, including this huge Ukrainian cargo plane

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TRANSPORTATION

8

MARCH 2016

Rail service provided by the Canadian National Railway is vital for moving containers and other heavy cargo

TRANSPORTATION CONTINUED FROM PAGE 7

“Unlike in the southern parts of the province such as in Victoria or Vancouver, communities throughout our region are much more directly dependent and influenced by the state of the business and industrial activity occurring in their region,” explained John Gibson, the President of the Prince George Airport Authority (PGAA).

“If we start talking about the potential of LNG development, the way I look at it is should it come to pass it would provide us with a bit more stability of growth in the north and obviously would have a major impact for Prince Rupert, Kitimat and Terrace specifically.

But with a pipeline going through just north of here we would definitely become the supply centre

for a project like that. Any major development like that would have a far reaching impact on all businesses, including ours.”

Home to First Nations people for millennia, with historians believing the area was first inhabited some 10,500 years ago, the first Europeans began exploring the region by coming overland in the early 1800s. As the first communities began to spring up in the region, many as outposts created by the Hudson’s Bay and North West Company, crude networks of trails began to link the isolated communities. The first major transportation systems began to develop early in the 20th Century when the Grand Trunk Railway began laying the first rails that would ultimately link the north to the Pacific coast and the rest of North America.

Today the Canadian National

The largest and busiest airport in the region, the Prince George Airport is an essential part of the area’s transportation mix (CN) Railway, the current rail operator in the region maintains more than 2,800 miles of rail lines in the province, employs more than 2,300 workers and is directly involved in more than $458 million in local spending. In Northern BC the corporation has a joint intermodal terminal and a forest products distribution centre in Prince George, maintains a presence in Fort Nelson and Kitimat and has its principal port access at Prince Rupert. The Port of Prince Rupert is an especially important destination, for the railway and for all Northern BC businesses shipping materials to foreign destinations. Rail transport to the port is typically divided between bulk

cargoes such as coal and containers which can be carried by truck, but more typically arrive at Prince Rupert by train.

“The soft spot has definitely been coal. The market for coal has not been as strong as it has been in the past and I believe the industry forecasts don’t foresee any great change in the immediate future,” explained Michael Gurney, the Communications Manager for the Prince Rupert Port Authority.

“For us the bright spot truly has been the container port. That has been an interesting story because when the container terminal first opened capacity of the terminal was estimated at 500,000 TEUs (Twenty Foot Equivalent Units)

and now we’ve certainly exceeded that by nearly 25 per cent while still using the original footprint of the existing terminal. The container port is currently being expanded – an expansion project that will be completed in 2017.”

According to Gurney, the multimillion dollar expansion project will dramatically enhance the capabilities of this already expansive maritime facility. “The container port expansion is all about providing additional capacity as we were very excited to see new vessels calling on the container terminal this year. The expansion will give us the ability to load two container SEE TRANSPORTATION | PAGE 9

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The Northwest Regional Airport in Terrace is the busiest of the three air hubs servicing northwestern British Columbia

TRANSPORTATION CONTINUED FROM PAGE 8

vessels at the same time, potentially giving us the ability to work on two ships simultaneously.”

Another key element in the Northern BC transportation mix is air travel. While roads and rail lines increasingly criss-cross the region, it is air travel that has

provided users their most immediate access to its more remote corners. With major air hubs in Prince George, Kitimat-Terrace, Prince Rupert and Smithers, numerous smaller airstrips and nearly countless places to land helicopters and floatplanes, much of the credit for the successful development of the north must go toward the skills and resiliency of its expansive aviation sector.

“We increased our numbers from 110,000 passengers per year in 2010 to 274,000 passengers per year by the end of 2014 - this is strictly the number of passengers passing through our terminal. But we have to recognize that during the time of those increases we were experiencing the Rio Tinto upgrade project. So we had lots of work crews coming and going,” Explained Carman Hendry, the

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Manager of the Kitimat-Terrace Airport.

“It was during this same time we introduced service with WestJet, in November of 2013. As a result our numbers started growing. By the end of 2014 we had 274,000 passengers pass through the terminal building. Throughout 2015 an ongoing major electrical transmission project was completed, the Rio Tinto modernization

9 project was on track and the crew numbers had stabilized. As a result our numbers fell to 239,000 which is a seven per cent drop from 2014, but still markedly above the levels recorded in 2010. We are far and away the busiest of the three airports in our region, Terrace, Smithers and Prince Rupert.”

An equally positive growth in both flights and passenger numbers has been recorded by the Prince George Airport. “In 2010 our airport had about 390,000 passengers through the terminal.

In 2015 we had about 471,000 passengers. We’ve experienced a real strong growth over the last six years,” the PGAA’s Gibson stated.

“The traffic through all airports in the north is pretty solidly tied to the local economy. It’s not that traffic at Vancouver Airport isn’t tied to the economy as well but in the north all of the northern airports have a more direct linkage to the business and industrial activity taking place in our region.”

The Prince George Airport is also at the forefront of developing an intermodal system that will involve the blending of both ground-based and air mobile cargo movement, through the opening of a new cargo terminal, a facility built in conjunction with Edmonton-based Rosenau Transport.

“We just opened our new terminal at the Prince George Airport, it’s a partnership with the Prince George Airport Authority, SEE TRANSPORTATION | PAGE 10

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The BC Northern Truckers Association represents more than 750 firms located across northeastern BC One of the main air carriers in the region is Westjet which services the area with its Canadian built Q400 aircraft

TRANSPORTATION CONTINUED FROM PAGE 9

we built the terminal on Crown land at the airport

to better service the air and freight industry in the reg ion,” ex pla i ned Carl Rosenau, president of Rosenau Transport.

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“We presently have terminals in Dawson Creek, Fort St. John, Fort Nelson as well as the one at the Prince George Airport. Eventually we’re going to be opening operations throughout the whole of BC. The planned network will be spreading down the west line to Prince Rupert and Kitimat and we’ll be opening our Vancouver terminal probably in the summer. The BC market is an exciting market for us and offers a tremendous amount of potential.”

“This new freight hub provides us the link between

air and road, Rosenau handles just about any kind of freight there is, from bulk freight such as dynamite and other industrial related items like that,” Gibson said.

“They specialize in LTL (L ess T ha n T ruck load) freight and are an ideal addition to the services we provide. This new facility allows us to have freight handling right at our cargo apron. With the new cargo warehouse we now have a reliable road feeder service for our clients.”

W h i le on ly a generation or so ago many of the main roads in the region were gravel, but thanks to a

growing population and the development of major industrial projects such as the Site C dam, the region’s road networks have expanded and been upgraded. But for many in the commercial trucking industry there’s still a lot of work to do.

“There’s no question that the roads have improved a lot over the years, but they are still way behind where they should be,” explained Gary MacLeod, the Business Manager with the BC Northern Truckers Association.

“Upg rad i ng these facilities and keeping them maintained is a provincial initiative. The province has done a lot over the years. But

our area has been extremely busy during the last decade or so and with LNG and other major projects on the horizon it could get a whole lot busier. We as an Association have been after the province for continued improvements to the roads and other infrastructure for years. They’ve done some, but it’s usually either a Band-aid or they are up here all the time repairing the things that wear out because of use.”

Based in Dawson Creek the BC Northern Truckers Association was founded in 1940 and represents roughly SEE TRANSPORTATION | PAGE 11

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increase and these people have to be serviced. If it’s not LNG then maybe it’ll be something else, the area has too much potential for it not to grow and to not attract new people to the area,” Rosenau said.

“Our company’s been around since 1957 so we’re intending on staying for the long haul. We’re going to be actively expanding in

Edmonton based Rosenau Transport has recently opened a new freight hub at the Prince George Airport

TRANSPORTATION CONTINUED FROM PAGE 10

750 carrier members, who collectively operate about 3,500 tractors and about 5,000 pieces of support equipment such as trailers.

“The majority of our members are located within the Peace River area, in the north and south east.

Typically we go all the way from Fort Nelson, Tumbler Ridge, Chetwynd, Fort St. John and Dawson Creek, that whole area. Presently we operate under the guidance of 11 Directors.”

A not her key pl ayer i n t he regional trucking industry is John Bandstra, President of Smithers based Bandstra Transportation,

a company with more than 300 employees and one which operates more than 100 tractor trailer units.

“We essentially have an entire transportation network in place that links the major centres in the north. Prince George has become a major hub for us, we have a terminal in Prince Rupert and a few years ago we opened a facility in Edmonton,” he said recently.

“The north is our primary focus.

Our head office is still in Smithers, that’s our home turf. Nearly everything that we do, whether it is from Vancouver or Edmonton is all related to freight going to Northern BC. Using our various terminals the freight is then distributed to the smaller

destinations, such as our commercial clients. We haul any general freight, operate reefer service, flatdecks, B Trains and we do a lot of container work out of Prince Rupert. We also interline with carriers from eastern Canada.”

Bandstra Transportation was founded in 1955 and is now into its third generation, with no sign of it slowing its growth any time soon. That long term resiliency, that willingness to succeed despite any barrier or challenge is a general hallmark of all business in Northern BC. “We’re very optimistic about the future of transportation in the north. You’ve always got to move goods. The population is going to

11 BC and we’re very positive about the future. It’s going to be exciting that’s for sure. Clearly we’ve got to be more efficient and to explore new opportunities but that’s all part of growing a business. It’s an exciting business to be in - no two days are ever the same.”

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We take great pride in our excellent safety record, the premium service we consistently provide to our customers and our family of dedicated employees.

Head office is based out of Prince George Operations in Tumbler Ridge, Mackenzie, Campbell River B.C. and Grande Prairie Alberta.

COMPANY STRIVES TO ELEVATE BC TRUCKING INDUSTRY Overhaul Ventures operates with an environmentallyfriendly focus

BY DAVID HOLMES

P

RINCE GEORGE – Proficient, professional, energy efficient and goal-oriented, Overhaul Ventures Corp. has established a business model that will ultimately elevate the entire trucking industry. “Our company slogan, ‘Driving for a Brighter Future,’ is a goal I truly believe in, and one that we’ve striven to reach since day one,” explained company President Doug Pugh.”

Overhaul Ventures is a familyowned and operated trucking enterprise that has been serving clients across BC and Alberta since 2007. Today the company operates its fleet from its headquarters located at 9340 Rock Island Road in Prince George. “We are a truck load contractor for leaders in the food and beverage industry. Our market area is BC and Alberta.

We regularly travel to Vancouver to as far west as Prince Rupert and as far north as Taylor,” Pugh said.

“In addition to our temperaturecontrolled freight, we have now added a Flat Deck division. Our intention is to start very small on

Doug Pugh is the President of Overhaul Ventures, a family owned trucking business operating since 2007

“We take this industry very seriously. We’ve got a great record, and are poised for continued growth.”

DOUG PUGH PRESIDENT OVERHAUL VENTURES

this and hope to build volume by providing the same high-quality, on-time service that Overhaul is known for.”

Under the guidance of its General Manager Steve Tosoff Overhaul’s

Overhaul Ventures is a truck load contractor serving customers across BC and Alberta with its fleet of vehicles team of experienced Class 1 drivers are expected to be professional and accountable for their actions at all times – while being respected and rewarded for their ongoing efforts.

Another key element in the Overhaul business philosophy is a continuing effort to be environmentally sensitive. Overhaul Green Initiative (OGI) is a company program that matches the skills of its drivers with equipment and techniques designed to minimize fuel consumption. The whole idea is aimed at improving the public perception of the trucking industry in general. “To us driving is a skilled trade just like any other.

The goal is to bring professionalism back to the trucking industry,”

explained Sarah Pugh, Overhaul’s Marketing Officer.

OGI involves a number of related elements, from regular vehicle maintenance and the use of ecofriendly equipment, to driver responsible practices such as reducing idle time. The result is an efficient, green and professional transport company. “There is a need for increased professionalism in the trucking industry. This includes things such as safety, green initiatives, and increased service to our customers,” Doug Pugh said.

“The fact is we have the best ontime arrival service for our customers of anyone out there. We take this industry very seriously.

Overhaul Green Initiative is a program designed to aid the company in minimizing its fuel consumption We’ve got a great record, and are poised for continued growth.”

To learn more visit the company website at: www.overhaulventures.ca

13

MARCHS 2016

Nominations open for Northern BC Commercial Building Awards

P

RINCE GEORGE – Which compa ny h a s bu i lt t he best commercial, industria l a nd revenue produci ng buildings in Northern B.C.?

Nominations are now being accepted for the 2016 Northe r n B C C o m m e rc i a l B u i lding Awards, set for Thursday, Ju ne 2 at the R a mada I n n i n P r i n c e G e o rge. T h e b i-a nnu a l celebration of the best

in commercial and industrial construction is for buildings c o m p l e te d b e t w e e n Ja n . 1 , 2014 a nd Dec. 31, 2015 f rom Fo r t S t . J o h n a n d D a w s o n Creek to Pri nce Rupert, a nd from 100 Mile House to Prince George.

The Northern BC Commerc i a l B u i l d i n g Aw a rd s w e re held in 2014, and the Judges’ Choice Award for Best Overall

E nt r y went to 653 4 A i r por t Road in Fort St. John.

“This event is all about celebrating what these i nd iv idu a l s a nd compa n ie s h ave bu i lt, wh ich m a ke ou r Northern B.C. com mu n ities so vibrant,” says Mark MacDonald of Business Examiner Peace Cariboo Skeena, which stages the event.

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DON’T TOLERATE WEAK LINKS Many companies fall into the bad habit of justifying poor results from bad sales reps, rather than doing something about it

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hen business is slow, weak sales reps can be more easily exposed.

But if your company is doing well presently, you may have salespeople who appear to be stronger than they really are. No matter how well your team performs as a whole, it’s important to be able to find the team’s weak links to strengthen them. A few factors to consider when looking to decipher whether or not your salesforce is full of weeds: They rely heavily on call-in business, or leads from marketing.

They always have full pipelines and fail to actually close any of those deals.

They spend more time calling current accounts than they do calling on new prospects.

They need to offer discounts to close deals.

They need to bring someone else

from the sales team in on “big opportunities” to help close the sale.

They view coaching as criticism.

They continue to require coaching on the same sales issues again and again.

They do a lot of networking and have very little to show for it.

They rarely call on accounts your competitors have locked up.

They always have an external reason why business didn’t close,

are RE/MAX Commercial, the Northern Regional Construction Association and the Independent Cont ractors a nd Businesses Association.

T here a re 11 categories for these awa rds: M i xed Use (Commercial/Residential), Sen iors Housi ng, Com mu nity – Institutional, Communi t y – R e c re a t i o n a l , R e t a i l , I n d u s t r i a l , M u l t i-Fa m i l y,

H o s p i t a l i t y, C o m m e r c i a l Renovation/Restoration, Office and Green.

Nom i n at ion for m s c a n b e downloaded from www.busin e s s e x a m i n e r.c a a n d c l i c k t h rou g h Events, or contact M a rk M acDon a ld at m a rk@ b u s i n e s s e x a m i n e r. c a fo r a copy of the submission form.

T h e d e a d l i n e for s u bm i ssions is April 15, 2016.

CONFIDENCE BUILDERS rather than taking responsibility and looking to grow from failure.

Many companies fall into the bad habit of justifying poor results from bad sales reps, rather than doing something about it.

Whether it’s the sunk cost already invested in them, or not wanting to go through the hiring process again, or believing they are the only ones who could “handle” the accounts they have, a lot of businesses make the mistake of holding onto weak reps.

Think of it this way: if you took away the book of business from one of your reps and dropped him or her in a new territory with little to no marketing would they succeed? If your answer is yes, you most likely don’t have challenges with any of these 10 factors. If not, though, the challenges above will ring true. And if so, it may be time to weed your garden and plant a stronger seed with better genetics. If you do this, your harvest will be plentiful on a consistent basis.

Copyright 2015 Sandler Training and Insight Sales Consulting Inc. All rights reserved.

John Glennon is the owner of Insight Sales Consulting Inc, an authorized Sandler Training Licensee. He can be reached at jglennon@sandler.com, toll free at 1-866-645-2047 or visit www.glennon.sandler.com

HIRING LUCY GLENNON

T

o work with customers, either selling or in customer service, you must believe in your products and services, in your company and most importantly, in yourself. Your skills and your success depend almost entirely on your own self-confidence.

Other people sense whether or not you believe in yourself, and by extension, whether or not you believe in what you’re doing.

It’s called the Doberman Principle – the dog will read those that fear them and become very alert to those people. The belief in yourself is a large part of the customers’ feeling persuaded that you can help them or that they should buy your product or service. Building your self-confidence will build your business and your success levels.

How do we build our self-confidence if we recognize a gap? If we believe we aren’t as good as others, or we don’t deserve to work with

them? The Sandler principle of ‘Act as If’ is a great way to start. To change our belief system we start with a new belief and ‘act as if’ it were true, until it is true! For instance, perhaps over your desk you could post a positive affirmation that says: I am a doctor of customer service and anyone who calls in is fortunate to get me on the phone.

Or, I’m a great problem solver and have the skills to rescue any customer from their product issues.

Whatever you say, it must be in the first person, positive, strong and describe the person you want to be.

A positive affirmation alone will not get you to 100 per cent. You must reinforce that belief with strong behaviors, by learning new techniques, by working on getting better and being better with customers, and by sometimes giving yourself a little slack. We are learning throughout our lives and we often do that through our mistakes. It’s not a failure unless we don’t learn something from it and do better next time.

Customer service and sales needs a strong self-esteem. They are also great places to begin to build one. We stay the same at our own peril.

Lucy Glennon can be reached at 866-645-2047 or lucyg@hireguru. com and her website is www. hireguru.ca

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14

MOVERS & SHAKERS

MARCH 2016

reconstruction project.

Terrace

Dawson Creek

Hazelton Secondary School student, Lucas Erni, took home the gold medal for carpentry at the Skills Canada trades competition held at Northwest Community College.

Terrace RCMP Sgt. Shawn McLaughlin has been appointed to a temporary commander position in the Nass Valley, as former Sgt. Jim Fenske was transferred to Grand Forks.

Dr. Beatrice Adante has joined the team at Vision North Eye Centre as their newest ophthalmologist.

BI Steak & Seafood Grill has reopened their restaurant after a holiday period, and is now serving customers at their 4332 Lakelse location.

A new drycleaning machine, designed to reduce chemical use and smell, is now in operation at Spotless Cleaners, owned by John Heighington.

The Terrace campus for Northwest Community College is looking into using their $2 million longhouse building for a library.

Darren Beaulieu of Terrace Real Estate Company is congratulated on receiving the MLS award for 2015.

The Great Canadian Oil Change and car wash is now open for business in their 4607 Keith Avenue location.

North Peace Savings & Credit Union welcomes Gale Beaman to their Business Solutions Team as their new Senior Manager.

Bryan Salsbury has joined the Small Business Team at Royal Bank of Canada, Terrace, as Account Manager, Business and Personal.

Kitimat LNG Canada has chosen the LedcorHaisla Limited Partnership location to perform site preparation activities at their liquefaction and export facility proposal in Kitimat.

Prince Rupert Andrew Franklin, Director of Digital Development for Black Press Community News Media, welcomes Laura Baziuk as the new B.C. Digital Editor for Black Press.

The 2016 BC Wood Design Awards have named Calvin Kruk Centre for the Arts as a finalist for two awards categories: Institutional Wood Design [Large] and Interior Beauty Design.

the only TerraCycle drop-off point on the North Coast.

Simon Fraser University’s Beedie School of Business has partnered with the Northwest Community College to offer a customized version of their Executive MBA program in Northern BC. The Prince Rupert Golf Club, located at 523 9th Avenue West, is now open for golf season.

Williams Lake Mauro Calabrese, Planning Superintendent for West Fraser, has been appointed as the new Vice-President for the Association of BC Forest Professionals. The Association has also presented an Award of Merit in Sustainable Energy to a group named the South Chilcotin Stewardship plan, which is comprised of West Fraser Mills, Tolko, Tsilhqotin Nation, Fraser Basin Council, BC Provincial Government and BC Timber Sales.

The Northern Development Initiative Trust has provided a Business Façade Improvement Program Grant of $20,000 to the City of Williams Lake for improving the physical appearance and functionality of commercial buildings.

Thompson Rivers University (TRU) Williams Lake campus will be offering a new Horticulture Technician Foundation Program, beginning March 28th. The program is ITA approved and helps students work towards becoming a red seal horticulturalist.

The Lone Butte Post Office celebrated its 100th year servicing surrounding communities.

Mining companies across the province have been informed by the BC Government that they will be temporarily allowed to delay as much as 75 per cent of their provincial hydro bills over two years, to help balance operating costs as commodity prices fall.

Iain and Laurie Cullen of Farwest Sport & Cycle are retiring after 43 years in business, and are currently looking for new owners to take over the company.

Prince George

The Discovery Child Care Centre on Prince Rupert Boulevard has been designated as a drop-off point for recyclable products made of mixed plastics that are otherwise difficult or expensive to recycle. The Centre works in partnership with international recycling company, TerraCycle, on this initiative and is

The Prince George RCMP Detachment was named as a finalist for two prestigious categories for the 2016 BC Wood Design Awards, Interior Beauty Design and Institutional Wood Design [Large].

The city’s Kin Centre Enhancement Project was also named as a finalist for the Institutional Wood Design

[Large] category.

Reza Akbari of Shiraz Café and Restaurant was honoured with the Premier’s People’s Choice Award at the Small Business BC Awards Gala.

A student at UNBC, Emily O’Reilly, has achieved a spot on Prince George’s 2016/17 Top 40 Under 40 list for her many accomplishments— and at 17 years old is the youngest ever person to be listed.

Coast Inn of the North was named Hotel of the Year out of 40 other Coast Hotels.

Northern Development Initiative Trust recently celebrated their 10th anniversary of building a stronger North.

The Prince George Citizen celebrates its 100-year anniversary as a member of the Prince George Chamber of Commerce this year.

Additionally, three Citizen writers have been named as finalists for the Ma Murray Awards, hosted by the British Columbia & Yukon Community Newspapers Association. Brent Braaten is a finalist for the Spot News Photo Award, Frank Peebles is a finalist for the Neville Shanks Memorial Award for Historical Writing, and Samantha Wright Allen is a finalist for Feature Series and for the John Collision Memorial Award for Investigative Journalism. Winners for all categories will be made known at the awards presentations on May 7th.

The Hart Crown Banquet Hall, located on 3955 Hart Highway, has announced that they are now open for bookings.

A timber harvest agreement spanning the next 25 years has been signed by the Lheidli T’enneh First Nation and the BC Ministry of Forests. The agreement allows Lheidli T’enneh access to 25,000 cubic metres of timber each year from within their traditional land, and contributes to the band’s forestry program.

The Prince George Observatory has opened its doors to the public during the spring season for visitors to stargaze. Each Friday night from 7:30-10:30pm, visitors will be given the opportunity to look through the Astronomical Society’s telescopes.

The College of New Caledonia welcomed three new Board members: Robert Lee Doney and Sandra Carroll have been appointed

by the Ministry of Advanced Education, and Paul Campo has joined as the new Registrar.

Nadleh First Nations and TransCanada have signed an agreement regarding the Coastal GasLink pipeline project.

Construction of the pipeline is anticipated to begin in 2017, contingent upon a final investment from LNG Canada.

Northern Lights College (NLC) has graduated fifteen new aircraft maintenance engineering students from their seventeen-month program. NLC’s automotive program honoured two Dawson Creek students: Savana Lindley, receiving the Bumper-to-Bumper award for highest marks, and Levi Germaine as runner-up.

The Northeast News has closed their doors and shut down their publication as of February 11th.

A team of almost twenty from Doucette Realty have raised and made a donation of more than $10,000 to the Prince George Hospice Society.

South Peace region band, Tomslake and Kelly Lake Cree Nation, has received $91,400 in grants for project-based training programs offered through UNBC.

The City of Prince George has announced their new Economic Development Advisory Committee, with twelve new representatives from various community organizations: Mayor Lyn Hall – City of Prince George, Chair; Henry Reiser, President, College of New Caledonia; Daniel Weeks, President, University of Northern British Columbia; John Gibson, President and CEO, Prince George Airport Authority; Susan Stearns, General Manager, Community Futures of Fraser – Fort George; Erica Hummel, CEO, Tourism Prince George; Colleen van Mook, Executive Director, Downtown Business Improvement Association; Jim Martin, CAO, Regional District of Fraser-Fort George; Zishan Shah, Community Economic Development Manager, Lheidli T’enneh; Scott Bone, CEO, Prince George & BC North Construction Association; Christie Ray, CEO, Prince George Chamber of Commerce; and Don Iwaskow, Vice President, North Central Labour Council.

The Council also includes five citizen representatives from the community: Mike Davis, Robert Schuetz, Sarbjit (Bobby) Deepak, Todd Molland and Rebecca Hasdell.

Enbridge Inc. has acquired the Tupper Main and Tupper West gas plants near Dawson Creek.

The purchase from the Canadian subsidiary of Murphy Oil cost $538-million.

Prince George’s Masich Place Stadium is set to receive $3.2 million in federal funding for renovations, which will include: a new track, a synthetic field inside the track, and the removal of berms to accommodate throwing sports.

Construction is scheduled to begin in 2017.

CKPG Radio, 99.3 The Drive, celebrates 70 years serving the community.

Prince George engineering firm, R.F. Binnie and Associates Ltd., have taken home top honours from the 12th annual Deputy Minister’s Consulting Engineers Awards, for their work on the Sande Overpass

Dawson Creek’s Service BC office has joined locations with the Ministry of Social Development, in an attempt by the province to cut red tape, extend office hours, and allow the community to benefit from a variety of government services in one space.

Fort St. John The North East Native Advancing Society (NENAS) held the grand opening of their new facilities, which feature a new daycare and a new training and employment centre.

Adam Horst, James Grant and Curtis Redpath were honoured by the City of Fort St. John with their 5, 10 and 20 Year Service Awards respectively for firefighting.

Fort St. John’s Aboriginal Mastering Entrepreneurship course, hosted by the North East Aboriginal Business Centre, recently celebrated its first graduating class of eight students. The three week long class is designed to teach First Nations participants the basics of starting a business.

The 2016 Spark Women’s Leadership Conference, hosted by the North Peace Economic Development Commission, has announced that this year’s keynote speaker will be Chris Flett, internationally recognized as a leader in business motivation and development, and founder of women’s leadership program, Ghost CEO. This year’s theme is StepBoldly, and the conference will be held on May 18-19th at the

MOVERS & SHAKERS

MARCHS 2016

Pomeroy Hotel & Conference Centre in Fort St. John.

Lori Ackerman, Mayor of Fort St. John, was honoured to be recognized in BC Business’ top-35 most influential women in BC list, for her tireless work to ensure Fort St. John benefits from the Site C dam.

smallest certified airports in BC. Music artists Pharis and Jason Romero of Horsefly, BC, have been nominated for the 2016 Juno Awards for the category of Traditional Roots Album of the Year.

Northern Development Initiative Trust has allocated $244,000 in funding to the Quesnel Airport, to help finance their 22,500 sq. ft. expansion project. The Quesnel Airport is currently one of the

Smithers The Smithers Art Gallery, managed

by Caroline Bastable, has received $32,000 in much needed funding from Council to cover operating costs.

A new community forest has been

The Chinook Forest Agreement includes eight partners: Lake Babine Nation, Burns Lake Indian Band (Ts’il Kaz Koh), Village of Burns Lake, Regional District of Bulkley-Nechako, Wet’suwet’en First Nation, Nee Tahi Buhn Indian Band, Skin Tyee First Nation, and Cheslatta Carrier Nation.

The agreement covers more than 90,000 hectares and allows an annual cut of 150,000 cubic metres.

15 The Smithers Airport has received $4 million in federal funding for a renovation project involving a 6,000 sq. ft. expansion, washroom installations, an upgraded fire system, and updating the check-in, baggage and security areas. The Town of Smithers has also pledged $2 million for the project.

Quesnel announced for the Burns Lake area.

PRINCE RUPERT CHAMBER PUSHES RESPONSIBLE DEVELOPMENT After the traditional greeting from Lax Kw’alaams hereditary chief Alex Campbell, one speaker after

PRINCE RUPERT

another talked about the importance of responsible development, of balancing

SIMONE CLARK

F

or the last few years, a lot of hype has surrounded the potential developments around Prince Rupert, but there haven’t been very many shovels put into the ground. This is especially true for the nascent LNG industry, which has faced some regulatory hurdles as it

environmental concerns with economic necessity tries to get work started.

But on February 11, it looked as if something might finally begin. On that day, the Canadian Env i ron menta l A ssessment

Agency (CE A A) relea sed a n environmental report of the PNW LNG project, proposed just south of Rupert on Lelu Island. The report stated the construction and operation of an LNG terminal would have some effects on porpoises, and increase greenhouse-gas emissions – but it would not have an impact on the important salmon population.

The Prince Rupert & District Ch a m b er of Com m erce a pplauded the report in a press release, and later officially supported the project. It then held a special luncheon on March 1, with the topic being “Responsible LNG Development in the Prince Rupert Harbour.� “Pa rt of the reason for the event was to explain why we endorsed t he project,� says Chamber vice-president Keith Lambourne, who also emceed

the luncheon. “But part of it was also to get some different voices in the same room, voices that may not have been heard yet.�

After the traditional greeting from Lax Kw’alaams hereditary chief Alex Campbell, one speaker after another talked about the importance of responsible development, of balancing environmental concerns with economic necessity.

Clifford White, chief councillor of Gitxaala, spoke about h is conversations w ith LNG proponents and how his people think how people seven generations into the future will b e a f fected, b efore m a k i n g important decisions. Glen Edwards, president of the local longshoreman’s union, talked about how responsible development of Rupert’s container port led to a huge increase in local employment.

City Councillor Blair Mirau talked about how he grew up in the dark days of Rupert after the closure of the pulp mill, and looked to future growth possibilities with a sense of hope. And James Witzke, a biologist with the Tsimshian Environmental Stewardship Authority, talked about the extensive modelling they’ve undertaken, and the conditions they want to see attached to the project.

At the end, Lambourne implored all attendees to submit their comments to the CEA A before the public-comment period ends on March 11.

Simone Clark is Manager of Communications of the Prince Rupert and District Chamber of Commerce. She can be reached at 250-624-2296 or simone@ princerupertchamber.ca.

OPPORTUNITY KNOCKS IN QUESNEL

QUESNEL SIMON TURNER

I

t wo u ld se em t h e t h eme for 2016 i n Q u e snel i s “Opportunity�!

First, the general contractor has been selected for the $20 million North Cariboo Arena Replacement Project: Vic Van Isle Construction (VVI).

The selection of the Kelownabased company was based on a range of criteria including their fee proposa l, work pla n a nd schedule, experience of personnel assigned to the project, and their use of local trades. V VI proposes an aggressive schedule that anticipates construction of the West Fraser Centre to start in the early spring of 2016, with substantial completion of the new bu i ld i ng a nticipated as early as the spring of 2017.

T he opportu n ity? V V I w ill utilize a significant number of

local trades in the project and will be using a local contractor as their site superintendent Second, Quesnel & District Ch a m b er of Com m erce c ohosted B2B Networking Sessions and a Job Fair relating to the multitude of opportunities that will come from the Site C project. The Peace River Hydro Partners estimate Site C will create approximately 10,000 person-years of direct employment during construction, and approx i m ately 33,000 tota l person-years of employment through all stages of development and construction.

Quesnel was the southernmost location for these events and a total of 35 businesses and over 400 individuals got to discuss the opportunities that lie ahead...perhaps not the blowthe-doors-off numbers seen in Prince George and Fort St John, but when we discovered we had attendees from as far away as Abbotsford, the value of both events was clear.

Third, the City of Quesnel has taken the preliminary steps to better telling the story that is Quesnel. Many saw the recent newspaper headline, describing the City as “rough-and-tumble�, but the fact is that it has a great deal to offer: affordable housing, green spaces and trail

systems, a very active community, and unrivalled proximity to outdoor adventure. Next time you’re driving through town, stop in at the Visitor Centre and rediscover Quesnel.

Last but not least, Quesnel & District Chamber of Commerce will host the 2016 Home & Outdoor Adventure Show, May 6-8, at Quesnel Twin Arenas.

This is a two-way opportunity.

First, businesses and business people get to promote who they are and what they do, make new connections and renew old networks. Registration is now open and booth space is filling fast – contact me at 250.992.7262 T he other opportu n ity is for the residents of the North Cariboo to see what’s available in their local market, to put together names and faces.

And that opportunity extends to the Home-Based Business Show taking place that same weekend right next door at Quesnel Seniors Centre.

W hen opportunity knocks, Quesnel believes in opening the door!

.&%*" ,*5 Vancouver Island | Victoria | Thompson-Okanagan | Peace] Cariboo Skeena 7BODPVWFS *TMBOE ] 7JDUPSJB ] 5IPNQTPO 0LBOBHBO 'SBTFS 7BMMFZ

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Simon Turner is Acting Manager for Quesnel & District Chamber of Commerce while Amber Gregg is on maternity leave. He can be reached at qchamber@quesnelbc.com.

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16

MARCH 2016

ANNUAL FIRST NATIONS BUSINESS CONFERENCE NEXT MONTH “We’re involved in helping First Nations communities improve the way they do business.”

SPOTLIGHT

More than 500 delegates expected to attend NABOC April 26-28, 2016

P

R I NCE RU PE RT – T he potential for First Nation business opportunities related to any future development of Liquefied Natural Gas (LNG) in British Columbia will be a central theme at next month’s National Aboriginal Business Opportunities Conference (NABOC). The three-day event will be held at Prince Rupert’s Jim Ciccone Civic Centre. Expected to attract more than 500 delegates from across Canada and beyond, the conference and its companion business trade show and job fair will run from April 26 to 28, and will be the sixth annual event of its type to be organized in Prince Rupert by the 2G Group of Companies.

“NABOC is definitely a business networking event, but there are also numerous plenary sessions planned where information is distributed. In fact six of the big LNG proponents will be attending the event to deliver presentations and project updates,” explained Geoff Greenwell, CEO of the 2G Group, the conference organizer.

“Many of the First Nations groups are coming to hear those primary sessions. They want to know what’s happening in the region. There’s also a small army of private sector companies who come looking to do business with both First Nations and the LNG companies. So any time you get 500 delegates in a room, delegates who probably represent some 300 different organizations, business is going to get done. Besides, regardless of LNG people are going to make great connections.

That’s what NABOC is all about.”

The 2G Group of Companies, the organizers of the event and of a smaller but similar session to be held in Osoyoos in September, was formed in 2001 with the expressed goal of assisting First Nation people in their business

GEOFF GREENWELL CEO 2G GROUP

endeavours. In addition to event organization the company also operates property development and property management divisions as part of its holdings.

“From Day One our mission statement has never changed, which is we want to create equitable economic business relationships between Aboriginal and private sector businesses. The term equitable is to us the most important part,” Greenwell said.

“There have been too many inequitable relationships that have favoured the private sector over the years, so everything we do and are involved in has to take a much more balanced approach.

We’re involved in helping First Nations communities improve the way they do business, and to help bring business opportunities to them in general.”

The Prince Rupert Conference, which essentially books every hotel room and rental vehicle in the community, is a significant economic injection for the city.

The event is also being sponsored by a who’s who of regional, provincial and national companies who recognize the value the session presents. Major sponsors of the 2016 event are Opus Stewart Weir, SAAM SMIT Towing/ Boskalis and Pacific Northwest LNG. “Westwood Electric is a proud sponsor and participant of the 2016 National Aboriginal Business Opportunities Conference in Prince Rupert. NABOC is a premier event which promotes collaboration between Aboriginal and Private Sector business groups. It is also a fantastic venue to create friendships, network, discuss opportunities and explore potential business

The 2015 NABOC Prince Rupert event attracted more than 500 delegates to the city, a similar number are expected this year

A feature of the annual NABOC conference is the companion business trade show and job fair that runs concurrent with the event relationships,” explained Darryl Chekerda, President of Westwood Electric.

Electrical & Instrumentation Services for Industry

“Westwood is an industrial electrical and instrumentation contractor that has been serving

valued customers throughout BC and Western Canada since 1974. I encourage everyone at the

Proud to be supporting and working with our First Nation partners.

TERRACE #101, 2918 South Eby Street +1 778 634 2084

PRINCE RUPERT

Proud supporter and participant of NABOC Prince Rupert 2016 British Columbia

250-542-5481

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780-986-5121 www.westwoodelectric.com

1942, 2nd Avenue West +1 250 624 2084

Saskatchewan

306-953-5481

www.opusinternational.ca

17

MARCHS 2016

Close to 100 individual businesses will be showcased this year at the trade show that will be held during NABOC 2016

and joint opportunities. Among the trade show presenters and a key sponsor of a series of plenary sessions that will be focusing on First Nation business opportunities is TD Canada.

“The conference is an opportunity for First Nations to showcase what they’re doing in their own environment as many of the First Nation groups presenting at the event come from the local area. I think it’s important

to bring partners to them, to let them see exactly what’s happening, that’s a real benefit of this conference,” explained Lynda Ferris the Regional Sales Manager, Aboriginal Banking BC for TD Commercial Banking.

“TD is proud supporter of the event and all that it has grown to become. It’s become a signature event and has proven very effective at bringing both Aboriginal and non Aboriginal persons and businesses together and that is a very important part of doing business in today’s economy.

Building those partnerships is a crucial part of success of any business venture. NABOC and 2G have done a very good job of bringing those groups together.”

Information, networking, business and relationship building are all key elements that have made NABOC one of the premier events of its type. “This conference is going to be focused around LNG and it certainly has become a high profile event,” Greenwell said.

“There’s currently something like 16 to 20 LNG projects being proposed in BC so there’s a tremendous interest in the development of this sector. People obviously are hoping that eventually one or two of them might actually come to fruition. The LNG Plenary sessions should be able to offer insights into what’s out there, and what could be coming our way.”

To learn more visit the 2G website at: www.2ggroup.ca/

As in the past the bulk of the activity at this year’s NABOC will take place at the Jim Ciccone Civic Centre conference to stop by our booth at NABOC to learn more about what we do and lets discuss mutually

beneficial opportunities.”

The business trade show that runs concurrently with NABOC

will this year feature nearly 70 individual companies who will be showcasing services, products

AURORA LNG IS PROUD TO SPONSOR THE 2016 NATIONAL ABORIGINAL BUSINESS OPPORTUNITIES CONFERENCE IN PRINCE RUPERT, BC.

TD is proud to support NABOC Prince Rupert.

For the last 90 years, Graham has delivered major buildings, infrastructure, and industrial projects across North America.

No matter your needs – from personal banking to helping governments and businesses with complex commercial and wealth management advice – we are here to help.

Y ur Yo u Co Cons nstr ns truc ucti uc tion ti on Solutioons n Partner. ww w ww. w grrahham am.c . a .c

A bank that’s committed to you.

For more information, visit td.com/aboriginal

All trade-marks are the property of their respective owners. ® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.

OPINION

18

MARCH 2016 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

PUBLISHER/EDITOR | Lise MacDonald, lise@businessexaminer.ca SALES | Shawn Bishop, shawn@businessvi.ca; Josh Higgins josh@businessvi.ca; Joanne Iormetti, Joanne@businessexaminer.ca WRITERS | Goody Niosi, Beth Hendry-Yim, John MacDonald, David Holmes WEBSITE | John MacDonald, john@businessexaminer.ca

PASSING THE TORCH IN FAMILY BUSINESSES REQUIRES SKILLFUL GUIDANCE AND PLANNING

MARK MACDONALD

F

amily business.

There’s something warm a n d c u d d ly a b out t h at definition, isn’t there? It conjures up images of a down-home friendly, Mom-and-Pop institution where friendly faces welcome customers.

It could also represent a company that is fraught with problems. What if family relationships are strained? Or, if relatives don’t work as hard as some think they ought to, perhaps displaying a sense of entitlement, that could put other hardworking employees on edge or make them resentful.

And of course there’s the threat of nepotism. That’s understandable, considering it’s mothers and fathers who are often in charge of decision making and hiring. If they can put another

member of their family on the payroll, why not? It’s also one of the ways family businesses work overall.

Eventually, a critical question will need to be asked: Who will lead the company when Mom and Dad retire, or sell? It’s a tough topic, not only for the family itself, but the employees – the extended family if you will – which are dependent on the company’s success over the long-term.

This decision is particularly sobering, as larger companies are no longer a “one family” operation.

The loved ones of each and every employee are connected, and their well-being is directly tied to the success of the firm. And, obviously, they would be negatively affected by failure.

So that nex t step, succession planning, is critical for all concerned.

Transitioning has been clearly identified as a serious concern in the province, with Baby Boomers who own and operate businesses slipping into retirement. Who will take the firm to the next level – or not?

In a family business, it may appear that the obvious choice is a son or daughter. Is that the right move to make? Perhaps. But one thing is for sure: There are plenty

of potential pitfalls.

An organization like the Canadian Association of Family Enterprise (CAFE), for example, focuses on exactly that: Making sure family businesses not only survive, but thrive – and prepare for the next generation of leadership and ownership within the company.

One of the programs they offer members is a Peer Advisory Group (PAG), where a family member from one business is paired with a different family business that has already successfully navigated the transition. In other words, they’ve already gone through it, and they’re willing to share their successes, and failures – in hopes of identifying opportunities and avoiding complications.

It’s another set of eyes outside the organization, which has proven to be extremely valuable. There are other resources and groups out there as well, and firms would be wise to seek out as much counsel as necessary before proceeding - and during - the transition.

Should the successor leader automatically be a member of the family? How does it work if there isn’t a family member prepared or equipped to take over leadership of the family?

A case i n poi nt: A sizeable

company with multiple locations and hundreds of employees had earned an outstanding reputation in their sector, when the owner, seeing retirement just around the corner for him, placed his son in as his successor.

Disaster would be too harsh to describe what happened once the son took the reins, but suffice it to say, the father found it necessary to step in and relieve his son from his leadership duties, replacing him with a proven CEO from outside the company. That move saved the company from financial peril, and ultimately, prepared the firm for a takeover that benefitted the family overall from a financial point of view. But it was a difficult move.

I’m not su re I wou ld h ave wanted to listen in on some of the conversations that may have taken place at subsequent family dinners.

Which gets to this point: Are leaders born, or are they made?

I believe both. Some are just natural leaders. It’s in their DNA, and they can’t help it. Others are made, through experience, training, mentorship, education – a number of critical ingredients which haven’t necessary been natural giftings, but learned and applied successfully.

Maybe it simply makes the most sense to choose “the next one” from outside the company. Or it could be a family member with outside experience.

One gentleman started a very successful food-related business out of the back of his truck, growing it to become a serious player in a very competitive sector. He bluntly told his two sons: “I’m not going to hire you. Go out and get a job and prove to me that I should hire you.”

They did. They both managed to work for a very solid, well known company with an excellent management training program. After several years out “on their own”, their family gladly took them into the family business, and both became managers that have driven the company to unprecedented success.

Obviously family businesses don’t always work out. It’s a tight rope balancing act between running a successful enterprise and a healthy family, and there are plenty of potential potholes to avoid along the way.

Having extra input and discreet guidance can significantly increase the chances of longterm success for the company, and avoid potentially difficult transitions.

PREMIER CLARK’S RECORD ON FISCAL POLICY IS POSITIVE In recent years, several provinces have consistently run budget deficits while BC has posted surpluses

CHARLES LAMMAM AND BEN EISEN

E

ach year the Fraser Institute measures and ranks the performance of Canada’s premiers in terms of how well they managed provincial finances while in office. Premiers who managed spending more prudently, balanced the books and paid down debt, and reduced and maintained competitive tax rates, rank higher.

T h i s ye a r, P rem ier Ch risty Clark ranked first overall, essentially tied with Quebec Premier Philippe Couillard for the best record, followed closely

by Saskatchewan Premier Brad Wall.

Let’s start with what Clark has done well over the period she is evaluated (2011/12 to 2014/15).

Cla rk ma naged the g row th in government spending more pr udent ly compa red to her counterparts. During her tenu re, she i ncrea sed prog ra m spending by an average annual rate of 2.1 per cent, just enough to keep pace with the combined rate of inflation and population

growth.

Importantly, the rate of gove r n m e n t s p e n d i n g g ro w t h under Clark’s tenure was less tha n the rate of econom ic growth (3.7 per cent). As a result, the size of BC’s government - measured as spending relative to the provincial economy - decreased, meaning the prov i ncia l govern ment now plays a less prominent role in BC’s economy.

Another bright spot for Clark is that her government has consistently balanced the books. In recent years, several provinces have consistently run budget deficits while BC has posted surpluses. In fact, Clark is one of on ly two prem iers (a long with Saskatchewan’s Brad Wall) to m a i nta i n a sm a l l bud get surplus, on average, while in office.

Despite finishing on top, Premier Clark’s record has weaknesses. For example, despite avoiding annual budget deficits, Clark has allowed government debt to grow under her watch - by almost $7 billion.

This is mainly the result of substantial capital spending by the

BC government being financed by debt. As a per centage of the economy, the provincial debt burden has grown from 15.7 per cent to 16.4 per cent.

But Clark’s biggest weakness with respect to fiscal policy is in the area of ta xation. Two problems stand out.

First, she increased BC’s general corporate income tax rate from 10 to 11 per cent, making t he prov i nce less comp et itive for investment compared to ot her ju r i sd ict ion s. A nd this increase came on top of reinstating the economically damaging Provincial Sales Tax, which taxes the business inputs used by entrepreneurs and raises the cost of investment.

Second, Clark presided over, and has so far failed to reform, a relatively complicated personal income tax system with five separate tax brackets - the second most among her provincial counterparts. She also enacted a temporary increase in the top income tax bracket for two years that was ultimately eliminated in the 2016 tax year.

In order to build on the strong elements of BC’s fiscal policy

framework, and to make the prov i nce’s ta x system more competitive, the Clark government should reverse the recent corporate income tax rate hike and implement a plan to offset the marked increase in the cost of business investment associated with the re-introduction of the PST, especially since almost all of BC’s competitors have moved to a value-added tax like the now-abolished HST. On persona l i ncome ta xes, s i m p l i f y i n g t h e s y s te m b y reduci ng t he nu mber of ta x brackets and the existing top rate would give BC a key competitive advantage over other jurisdictions.

All told, Premier Clark’s record on fiscal policy is positive.

There is still, however, room for improvement.

Charles Lammam is director of fiscal studies and Ben Eisen is associate director of provincial prosperity studies at the Fraser Institute. The study, Measuring the Fiscal Performance of Canada’s Premiers, is available at www.fraserinstitute.org.

SUBCRIPTIONS | $45 PER YEAR (12 ISSUES), $80 FOR 2 YEARS (24 ISSUES), SUBSCRIBE ONLINE: WWW.BUSINESSEXAMINER.CA. DISTRIBUTION: FOURTH WEEK OF EACH MONTH VIA CANADA POST AD MAIL. The publisher accepts no responsibility for unsolicited submissions. The views and opinions expressed in this publication are not necessarily those of the publisher. Produced and published in British Columbia. All contents copyright Business Examiner Peace Cariboo Skeena, 2016. Canadian Publications Mail Acct.: 40069240

19

MARCHS 2016

Business Groups Give Thumbs Up To Provincial Budget

V

ICTOR I A - Busi ness groups throughout the province applauded the provincial government’s Budget 2016, announced February 16.

The Chartered Professional Accountants of British Columbia (CPABC) applaud the government’s fiscal management highlighted in the budget. In addition to the continuation of balanced budgets, the government stayed the course on personal, corporate, and sales tax rates. BC’s strong performance allowed for increased investment in health and social programs.

“In a challenging economic environment BC is poised to enjoy modest growth over the nex t th ree yea rs a nd w i l l be a leader within Canada. This growth, coupled with the government’s strong commitment to fisca l restra i nt has led to forecasted budget surpluses over the next three years: $264 million in 2016–17; $287 million in 2017–18; and $373 million in 2018–19,” said Richard Rees, FCPA, FCA, president and CEO of CPABC. “In addition, the debt-to-GDP ratio is expected to decline to 16.3 per cent by 2018–19, one of the lowest levels of taxpayer s up p or te d d eb t i n Ca n a d a .

Reducing debt and managing

costs ensures BC maintains its triple-A credit rating, keepi ng debt ma i ntena nce costs reasonable.”

“While managing costs is one side of the equation, our province also needs a competitive ta x system that is ref lective of the 21st century economy,” continued Rees. “We are excited to hear that the government has made this a priority and will establish the Commission on Tax Competitiveness, and look forward to working with them on this important initiative.”

BC’s chartered professional accountants have highlighted many issues with the tax system, including the loss of input tax credits for business, which is effectively a tax on investment. Given BC’s relatively low levels of productivity, investment in machinery and equipment is vital in increasing the province’s economic competitiveness and performance.

In addition to the tax commission, the government announced measures that would add ress housi ng a ffordabi lity – a hot button issue across the province. BC’s CPAs have highlighted the issue of affordability and the impact it has had on recruiting and retaining skilled labour in major markets

such as the lower mainland, Victoria, and Kelowna.

T he govern ment has made changes to the property transfer tax, including an exemption for newly built homes priced up to $750,000, which would save the purchaser up to $13,000.

S u c h m e a s u re s wo u l d h e l p fa m i l ies who a re str uggl i ng with some of the highest housing costs in the country. This change will be largely financed by i ncre a si ng t he prop er t y transfer tax rate from two to three per cent on the portion of the fair market value over $2 million. Data will also be collected on the citizenship of purchasers.

The Truck Loggers Association (TLA) also applauds the 2016.

“It fo cu ses on s upp or t i n g BC’s rural communities where our forest industry continues to c re a te j o b s a n d s u p p o r t communities,” said David Elstone, TLA Executive Director.

Supporting BC’s rural towns and villages, the Rural Dividend Program will bring $75 m i l l ion ($25 m i l l ion a yea r, over three years) to communities with populations under 25,000. The intent is to focus on communities in transition and help them stabilize their popu l at ion a nd att ract new

residents.

“Logging contractors are the econom ic backbone of BC’s r u ra l com mu n it ie s a nd t he T L A welcomes bu i ld i ng the populations in those areas so our members can continue to build their workforces,” said Elstone.

Fi na l ly, the govern ment is investing $5 million to build markets for BC’s forest products in India. As Minister Steve Thomson, Ministry of Forests, Lands and Natural Resource Operations, has com mented before, BC rural communities d id not b e a r t he f u l l br u nt of the financial downturn in 2008/2009 because of the market government and industry had built and nurtured in Asia, particularly China. “Further diversification will ensure the forest i ndust r y h as a n even broader market base as world forest product markets inevitably fluctuate,” said Elstone.

The British Columbia Real Estate Association (BCREA) also gave the budget a thumbs up, noting proposed changes to the Property Transfer Tax (PTT) and other measures in Budget 2016 to improve housing afford abi l it y i n t he prov i nc e and collect better information about property transactions.

The PTT exemption for new

home s up to $750,000 w i l l help stimulate supply of new housing and provide more opportunities for home ownership across the province. This exemption is com mendable, however with many new housi ng projects ta k i ng yea rs to complete, it may not have the immediate impact desired by the government.

While the new three per cent threshold for properties over $2 million is intended to pay for the new home exemption, the province has missed an opportunity to raise the existing threshold levels to provide broader P T T relief for those who c a n not a f ford a newly constructed home and who are not first time homebuyers.

By not indexing the threshold levels, the province ensures that – i n a n env i ron ment of r isi ng home pr ices – a n i ncreasing number of homes will fall within the new three per cent th reshold, resu lti ng i n a higher ta x burden on more home buyers.

Collecting and analyzing information on real estate transactions will help the provincial government make fact-based policy decisions. BCREA welcomes this initiative and looks for wa rd to h av i n g t he d ata publicly available.

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