BusinessExaminer
DECEMBER, 2009
Okanagan
Uncorking the conflict VQA retailers & the Wine Institute Square Off
www.businessexaminer.ca INSI DE A Penticton Partnership Reborn | When the Shoe Fits | First Nations First
Bobby Naicker, President/COO, Denny’s Restaurants
CONSERVING ENERGY PUT MORE THAN SAVINGS ON THE MENU. BEING POWER SMART MAKES BUSINESS SENSE Lighting is a very important part of a customer’s dining experience. So conservation was not the only consideration when Denny’s Restaurants in the Lower Mainland decided to upgrade their lighting. To their surprise the new visually appealing, longer lasting and energy-efficient lights had additional benefits. Apart from saving thousands of dollars on their electricity bill, they found that the BC Hydro Power Smart Product Incentive Program could make the project even more financially attractive. And, as icing on the cake, the restaurants’ staff say that the new lights are much cooler than the old ones, which will also lower air conditioning costs. Looking for tips on how to lower your business’ energy tab? Simply visit bchydro.com/incentives or call 1 866 522 4713.
Special Advertising Feature
Cash Flow Management In December of 2008, the Kelowna Chamber conducted a poll asking the question, “What is the top financial challenge facing your business during the next six months?” Keeping cash coming in during a tough economy was top of mind to the business sector throughout 2009. “Cash flow” was the top response, and “accounts receivables” placed third in responses (pricing of products and services placed second).
THRIVE NOT SURVIVE SEMINAR SERIES Prepare your business for a growing economy
In business, you need to ensure that your revenues equal or exceed your expenses. It’s that simple. By definition, cash flow management is the process of monitoring, analyzing, and adjusting your business' cash flows. To run your business successfully you need to avoid cash shortages by monitoring your cash inflows and outflows to avoid negative gaps. “If you can't control your cash flow, you can't control your company.” This point was made crystal clear in an article in USA Today by columnist Rhonda Abrams. Cash flow strategies not only include watching the revenue and expense streams, it also integrates inventory management and the use of external financial tools such as a line of credit. “Cash Flow Management - Keeping the Lights On” is the third instalment of a six-part seminar series which was developed for local businesses to gain access to expert knowledge on how to maximize their business during the current economic climate. The series is sponsored by the Business Development Bank of Canada and presented by the Kelowna Chamber of Commerce, Central Okanagan Economic Development Commission, and OSTEC. This seminar series provides business owners with insight on how to cope with this issue. “Cash Flow Management” featuring guest presenter Leslie McNamara of McNamara & Co. will be presented on December 1st at the Coast Capri Hotel from 2:00 to 4:30 p.m. To register for the event, or for more information, visit www.ostec.ca/ events.asp. Upcoming sessions in the series in include presentations on “Cash Flow Management”, “Small Business Law”, Marketing Your Business”, and “Pitch Your Business”.
TED OctoberL6, E2009
MP Capital COAccessing ED November 3,T2009 E L P M Plan Workshop COBusiness December 1, 2009
Cash Flow Management
January 5, 2010
Small Business Law
February 2, 2010
Marketing Your Business
March 2, 2010
Pitch Your Business Location: Coast Capri Hotel, Kelowna BC Time: 2:00 pm to 4:30 pm Registration and more information: www.ostec.ca/events.asp Individual Seminars: $25.00 each series sponsored by:
refreshments sponsored by:
BEx12/09
www.businessexamin COVER STORY
BusinessExaminer President Craig N. Brown Vice President Noll C. Derriksan Grand Chief WFN, U.B.C.I.C.
101-1979 Old Okanagan Highway, Westbank, BC V4T 3A4 T: 250.862.6722 F: 250.768.8241
Grapes of Wrath Can one organization fairly represent both producers and retailers? The Wine Institute is the organization and says ‘yes’ while a worried group of retailers and outsiders increasingly say ‘no’. 9
Publisher
Managing Editor
Design / Production
Craig Brown 250.862.6722 publisher@businessexaminer.ca
Devon Brooks 250.878.1782 editor@businessexaminer.ca
MaryAnn McCooey production@businessexaminer.ca
Contributing Photographer Shawn Talbot | 1.888.317.1403 | shawn@shawntalbot.com | www.shawntalbot.com Contributors Bobbi Menard | Mischa Popoff | Dominik Dlouhy | David Crawford
Robert Smithson | Lorraine McGrath | Noll Derriksan | Dawn McCooey Mailing Address P.O.Box 32034 RPO, 2151 Louie Dr. West Kelowna, B.C. V4T 3G2 | Fax 250.768.8241 Subscription Rates 12 issues annually | One year: $27.00 | 250.863.4636 Distribution The Okanagan Business Examiner is published monthly at Kelowna, BC by Prosper Media Group Inc. Copies are distributed to businesses from Osoyoos to Greater Vernon. The views expressed in the Okanagan Business Examiner are those of the respective contributors and not necessarily those of the publisher or staff.
PUBLICATIONS MAIL AGREEMENT NO. 41835528 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: P.O. BOX 32034 RPO 2151 LOUIE DR. WESTBANK, BC, CANADA V4T 3G2
4
| www.businessexaminer.ca December 2009
FOLLOW US ON
overs& hakers M S 34
Area Report Reaching Out
How to sell any place
The recent Thompson Okanagan Tourism Association summit meeting
Keeping Good Employees on Board It’s a recession, jobs are scarce and getting employees is easy, right?
say that doesn’t mean any
This Democracy by Mischa Popoff
do very well. 44
If you’re confused, conflicted and feeling guilty about the carbon footprint you’re leaving Mischa Popoff says you shouldn’t be. Our most
good people to go just as
fearless speaker says the
soon as the tough times do.
science isn’t there and the
37
trade shows, networking events, Women in Business, training, visiting speakers and more! 42
can go right again. 17
one region or company can’t
an effort now, expect the
Chamber meetings,
new mayor of Penticton, and the new Band Chief, have decided that something gone wrong,
dollars are down. Speakers
warns if you’re not making
Calendar of Events
building flourishing business empires, Penticton has remained stagnant. Now two men, the
acknowledges that tourism
Author Dawn McCooey
ner.ca
For a long time, while Indian Bands north and south of the Penticton Band have been
proponents know it. You decide if he has a point.
46
Why nudity and planes are just wrong Resident business humorist David Crawford expounds on his many strange and
The Penticton Edge If you wanted to pick the Okanagan community with the “mostest” for big financial projects going on, you might want to consider beautiful additions like the South Okanagan Event Centre or the newest, greenest campus ever built. That would be for Okanagan College in Penticton. And they’re making the place even more business friendly, to boot. 22
twisted thoughts on what is wrong with business travel today. 43
Business Examiner is NOW ONLINE!
December 2009 Okanagan Business Examiner
|
5
TM
For those of you who've been nice this year - a FREE online listing for your business and a FREE e-newsletter!!
(Cuba, Honduras)
We’ve been in Kelowna a few short months, but provide over 20 years experience in cigar and tobacco specialty products.
And for all those of you who've been naughty - HO-HO-HO - well now, you get these too!! Sign up for FREE today at www.businessexaminer.ca
WEB
WEB DESIGN
521 Bernard Avenue Kelowna, BC V1Y 6N9 Ph. 250.717.1854 Fax 250.717.1855
Seasons Greetings and a successful New Year to you all!! HO-HO-HO!!
…Helping Okanagan Businesses
get started today! navigatormultimedia.com
250-862-9868
201-260 Harvey Ave.
KELOWNA
DSFBUJWF t EBUBCBTFT t TFBSDI FOHJOFT t IPTUJOH
succeed
ONLINE since 1993
inside continued …Helping Okanagan Osoyoos Indian Band 25 Businesses Penticton Snapshot 26
Dominik Dlouhy 8 Cover - Wine Feuds 9
DESIGN
…Helping get started today! navigatormultimedia.com Fruit Conference 14 …Helping Okanagan Okanagan 201-260 Harvey Ave. ONA/Penticton Profile 17 Businesses Businesses KELOWNA succeed get started today! navigatormultimedia.com succeed Penticton Indian Band 20 DSFBUJWF t EBUBCBTFT t TFBSDI FOHJOFT t IPTUJOH d today! navigatormultimedia.com ONLINE 250-862-9868 KELOWNA since 201-260 Harvey Ave.
250-862-9868 KELOWNA
WEB
EBUBCBTFT t TFBSDI FOHJOFT t IPTUJOH
Calendar of Events 42 David Crawford 43
Editor's Take 33 1993
Tourism Meeting 44
22
Movers & Shakers 34
Construction Survey 45
Westbank First Nations 24 1993
Keeping Employees 37
Mischa Popoff 46
ONLINE since
DSFBUJWF t EBUBCBTFT t TFBSDI FOHJOFT t IPTUJOH
ONLINE since
Lorraine McGrath 41
Noll Derriksan 29
201-260 Harvey Ave.
-862-9868
succeed Penticton Building 27
Robert Smithson 38
Penticton 1993
DESIGN 'PS BMM ZPVS "VEJP 7JEFP 4FDVSJUZ BOE )PNF "VUPNBUJPO %FTJSFT *O 5VOF 4PVOE BOE 4FDVSJUZ :PVS &YQFSUT 3FTJEFOUJBM $PNNFSDJBM ] $VTUPN %FTJHO 1SFXJSF *OTUBMMBUJPO PG 5)9 5IFBUSF 3PPNT .VMUJ SPPN "VEJP 4ZTUFNT )PNF "VUPNBUJPO 4FDVSJUZ 4ZTUFNT .POJUPSJOH -JHIUJOH )7"$ $POUSPM $$57 4ZTUFNT "DDFTT $POUSPM /FUXPSL 4ZTUFNT5FM $BCMF *OUFSOFU %JTUSJCVUJPO *OUFSDPN 4ZTUFNT -$% 1MBTNB 'MBUTDSFFOT .VTJD 4FSWFST 4BUFMMJUF 3BEJP 4ZTUFN 6QHSBEFT &WBMVBUJPOT
)PNF "VUPNBUJPO ] -JHIUJOH $POUSPM )7"$ $POUSPM *SSJHBUJPO $POUSPM 0GGTJUF *OUFSOFU "DDFTT 4FDVSJUZ ] #VSHMBS "MBSNT 'JSF "MBSNT "DDFTT $POUSPM 4VSWFJMMBODF $BNFSBT )PVS .POJUPST ] ,JSTDIOFS 3PBE ] XXX JO UVOF DB
*OTQJSJOH UIF 4FOTFT :PVS $PNQMFUF " 7 4FDVSJUZ "VUPNBUJPO 4QFDJBMJTUT T P O P T ] B O H T U S P N ] I B J
DON’T GET LEFT IN THE DARK
www.businessexaminer.ca
BEx online
Business Examiner is now online. More news. More local business. More often. Free Business Directory. Free Calendar Listing. Issue archives. Twice-monthly e-newsletter. Sign up and get your free listing now! www.businessexaminer.ca Follow us on
What last year says about next year By dominik dlouhy
The main media activity of the past month has been creating and reporting a frenzy around the H1N1 flu vaccination program. One of the main reasons is that there is a shortage of bad news elsewhere. Let’s hope it stays that way, and H1N1 turns out to be the disaster that never was. Two areas conspicuous by their absence are financial markets and the economy. They were front and centre of most daily headlines from September 2009 until the current flu season. Where did it all go? Is it a cover-up? No, it’s just that most investors’ portfolios are close to pre-crash levels and the economic news is good and getting better. That is wonderful, except it doesn’t make for good headlines. Let’s look at some of the financial information available, especially the U.S. as it is an important driver of Canada’s economy. And it is important to look at the numbers
that act as leading indicators of the economy. We all have a personal interest in this, because economic growth drives corporate earnings, which drive stock prices, which drive our retirement and investment portfolios upward. The first place to look is interest rates. When the interest rates on Government of Canada bonds rise as their maturity dates go further into the future as they do now, the yield curve is said to be “normal”. The market is pricing in economic growth ahead. Interest rates are also very, very low, with one year Government of Canada bonds at 1/2% and five year bonds at 2.7%. Low rates boost the economy by giving households and businesses more money in the bank than paid to the bank. And they help support housing prices by making mortgage payments more affordable. The U.S. central bank suggests it will
keep interest rates abnormally low until the risks to the U.S. economy are diminished. This suggests a bigger problem might turn out to be too much growth over the next three to five years. The second place to look is the U.S. ISM purchasing manager’s index. It measures the growth of a variety of factors, including orders, backlogs, inventories, customers’ inventories, etc. The October number was 56, and a number above 50 implies economic growth. That’s a big improvement from 33 in December 2008. Initial jobless claims are the third place to look. These are made by people newly laid off who are applying for unemployment benefits. They are still joining the ranks of the unemployed, which means unemployment will rise, but when initial claims are falling sharply, which they are, lower unemployment and job creation are on the horizon. Residential building permits show what is going to be built in the next year CONTINUED ON PAGE 16
What’s More Important
the Brakes or the Steering Wheel?
What’s More Important
Voice Communications or Data Communications?
The answer is of course that one is no more or no less important than the other.
Both are integral parts of your business’s overall communication strategy. They both connect your customers to you and you to your customers.
Okanagan Telephone Company &
Partners in Voice + Data Solutions
s 4ELECOM 3OLUTIONS THAT 7ORK s Business Telephone Systems s Voice Over IP s Innovative IT Solutions s Network Administration s Computer Sales & Service
Proudly serving over 2500 customers across the Okanagan, Thompson & West Kootenay’s for over 23 years. Sales. Service. Installation. Your Complete Communications and IT Solutions Company. Kamloops 250.851.0766 Vernon 250.549.7484 Kelowna 250.860.2355 Penticton 250.770.9089 Toll Free 800.595.8882
Okanagan Telephone & Connect IT make connections that make sense for your business. www.oktelephone.com www.connect-it.ca 8
| www.businessexaminer.ca December 2009
Uncorking the conflict
Is the Wine Institute grinding VQA retailers?
By Devon Brooks
There is a harsh contrast between how the British Columbia Wine Institute (BCWI) see its handling of VQA wine stores and what the store operators believe. Either the Wine Institute, like the head of a large dysfunctional family, is blind about the nature of that relationship or it is deliberately ignoring what many see as a huge conflict of interest in its basic mandate. One VQA store owner, who wants anonymity, says, “Stores have no authority, but all the responsibility. The Wine Institute has no responsibility, but all the authority.” Six different VQA store owners charge the BCWI with poor communication, being high handed in the way decisions are made and unaware or inept regarding the needs of VQA retailers. Lisa Cameron is the BCWI’s executive director and sees things very differently, stating, “I just laugh because I think we spend so much time and energy just answering the same questions to the BC VQA stores and so, for them to say that they are not communicated with or anything else, I find a little disingenuous because we’re doing our utmost to work with them to make them successful. And so I call them the malcontents. Fortunately for us they are the very small minority in the group and otherwise we have a great working relationship with the BC VQA store operators.”
The BCWI represents winery members and has control of 21 licenses used to run VQA stores in B.C., not all of which are open currently. While the motivation of three store owners contacted could be suspect because the Wine Institute has either terminated their license or has threatened to for breach of contract, four others are not in that position. There are currently 18 VQA stores open, so complaints coming from one-third of them cannot easily be dismissed as “malcontents” or as “old news” as Lisa Cameron would have it. Understanding the current situation requires a review of recent history for the industry. David Bond is with the Association of B.C. Winegrowers, which represents 36 wineries in the province that do not make VQA approved wines. He says when the federal government agreed to phase out protection for B.C. wineries as part of the free trade agreement in the ‘80s it sent all wine makers in the province into a panic. A group of wine makers decided that they could make quality wine, but the perception of Canadian wine as plonk was a severe liability. The VQA (Vintners Quality Assurance) brand was created as a symbol of quality
consumers could trust. Says Bond, “The VQA wants to differentiate the bilge [B.C. wineries] used to make from the new wines.”
Vincor, Peller Estates and the Mark Anthony Group, which sell the vast majority of all “B.C.” wine, provide most of the Wine Institute’s income.
Early on the wineries lobbied the government to create an outlet that could sell only wines that adhered to the new quality standards.
Many critics, including Bond, suggest they have an inappropriate influence over the Institute. He says, “The B.C. Wine Institute’s three biggest members are the biggest contributors financially to the Wine Institute and the same wineries who brought in the Cellared-in-Canada (CIC) bilge. It’s a scandal.”
In response the government created the Wine Institute, which was given authority for promoting VQA wineries, maintaining quality standards and looking after 21 liquor licenses. Cameron acknowledges how difficult it was, saying, “When we started 15 years ago, you couldn’t give VQA wine store licenses away.” In time the inherent conflict between testing wine quality and the manufacture of wine was recognized, so two years ago quality testing authority was moved to the newly created Wine Authority. The Wine Institute is largely funded by its 87 member wineries. Membership dues are mostly paid on a fee on a per bottle basis, which makes VQA membership affordable to even the smallest wineries. It also means that British Columbia’s three large commercial wineries, namely
Licenses require that wines labelled B.C. wines use grapes grown here and bottled here – except for those big three commercial wineries. They brought in grapes and juice from outside of the province and labelled them ‘Cellared in Canada’. With a glut of grapes on the world market the juice could be imported for much less than local grapes could be grown. Some labels are so similar between VQA (made in B.C.) and non-VQA (imported grapes or juice) products that it would be difficult for consumers not to think they were buying local product. Bond says, “We thought that it denigrated B.C. wines.” conflict CONTINUED ON PAGE 10
conflict CONTINUED FROM PAGE 9
Part of the Wine Institute’s mission is to promote the premium product of B.C. wineries, thereby justifying the premium prices consumers pay for B.C. product, but it was strangely silent on this topic.
NOW!!
THAT’S RIGHT! VISIBILITY FOR YOUR BUSINESS -
MEDIA WEST
www.limemediawest.ca
E: info@limemediawest.ca TF: 1.877.440.5463 109-2955 Acland Road Kelowna, BC V1X 7X2
INTRODUCING
VALLEY WIDE
12.
$
OVERNIGHT SERVICE FOR AS LITTLE AS
77
Lime Express Courier is now offering Business to Business urban delivery of your packages under 30lbs. $12.77 all in! NO HIDDEN FEES. NO FUEL SURCHARGE. NO GST. NO HASSLE! HEY!!
CUT IT OUT!!
Certainly Vincor, Peller Estates and the Mark Anthony Group, which own several wineries each, dominate the board and committees of the Wine Institute. In total the board and four committees have 32 positions. Of that number 14 positions, or nearly half, are taken by representatives from those three. The position of chair on the board of directors and on two out of four committees is held by the big three. Mark Hicken is a lawyer with the Vintage Law Group in Vancouver, which specializes in winery issues, and a long time critic of the way the province has handled liquor laws. He says, “The big three producers market both VQA and non-VQA products and the big three do dominate the Wine Institute, but I can’t say they have any undue influence.” Out of 87 wineries only 13 are represented on any of the Wine Institute bodies. Cameron says that is not for lack of trying. “We actively solicit small winery members because they have different concerns than larger wineries, and recently we were successful in getting Jean from Tantalus to sit on our marketing committee, for example.” The charge of influence is not limited to Bond. Six out of seven VQA store owners interviewed accuse the commercial wineries of having too much influence. An owner wishing to remain anonymous says, “The Wine Institute is now benefiting its biggest members. There is a conflict of interest between wineries that sell CIC wines and VQA wines.” MEDIA WEST
EXPRESS COURIER
250.491.LIME(5463) 1.877.440.LIME 10
| www.businessexaminer.ca December 2009
A 20 year veteran of business, Jim Ruhland used to own a VQA store in Oliver, which the Wine Institute shut down this year. He says, “The industry is very much led by a couple of top wineries.” Another owner agrees, saying, “I definitely agree with that. The vast majority of their [the Wine Institute]
income comes from those three wineries.” Terry Quick owns the Arrowsmith Wine Shoppe in Parksville and is bitter about how things have gone. He was one of the original store owners and says, “It used to be absolutely fantastic. We used to work closely with the Institute and I loved it.” This year the love ended and he feels no need to remain anonymous since he has one year to improve the gross revenues from his store or be closed down. He is equally blunt about his accusations, “I was singled out because I don’t carry Vincor [products] in my store. I chose to run with the smaller estate wineries.” Quick says he grosses a little under $500,000 a year and that, “We’re very profitable and we have no financial worries for looking after the family.” The closure comes because his contract specifies his store must gross $600,000 per year, an amount he is not making. Cameron sees Quick’s problem much differently. She claims, “In the case of Terry, unfortunately, he has difficulty dealing with our winery members as well as the delivery companies within the Island. You know he is sometimes difficult to deal with, and so really that has nothing to do with us.” She also disputes almost everything Quick says, insisting his store never made $500,000 a year and that he has never been profitable. “He again is perhaps not telling you correct figures.” Cameron warns, “It would be unethical for you to write that he is a profitable store or meeting requirements because that is now his word against ours.” Carol Briggs owns Carol’s Wine in Coquitlam. Like Quick she was given an order to close down. Like Quick she is also a member of the Canadian Federation of Independent Business’ (CFIB) along with four other VQA stores. In September 2009
Brian Bonney, the CFIB’s director of provincial affairs for B.C., wrote a letter on their behalf to Minister Rich Coleman, whose ministry administers liquor law in British Columbia. The gist of the letter was asking the B.C. government to take back control of the liquor licenses from the Wine Institute, saying the Wine Institute had placed unfair administrative burdens on the VQA stores, and that its retaking of licenses was unreasonable given the profitable nature of the businesses. Speaking with the Business Examiner Bonney says, “Both members received letters via fax saying that they had to close within a month. Both are profitable. The government needs to get back in; the Wine Institute is being overbearing.” Both Quick and Briggs have temporary reprieves. Quick, one year to raise his gross revenue to $600,000. Asked how likely it is he will reach the Wine Institute’s target in his town of 12,000, Quick
responds, “Not a hope in hell.” Briggs has been allowed to keep her store open while she sells it. She won’t answer any questions, saying part of the agreement allowing her to sell is that she will not discuss anything with the media, but Cameron says they put no such
She also disputes Bonney’s claims. “What do you call profitable? So for 10 years we had a $500,000 requirement. I can’t tell you just because of privacy concerns exactly what they’re making, but they weren’t profitable.” Cameron continues the attack,
Lisa Cameron, BC Wine Institute “We’re not doing anything illegal. We have a store agreement in place, and like any business contractual agreement…you know, because of the contract that’s what you have to do.”
gag order in place. According to the online publication Wines & Vines, Briggs grossed $440,000 last year. Cameron states, “In the case of Carol’s [store] we tried year after year after year of working together and it’s very apparent that nothing is going to change or happen. The BC VQA store committee voted to recommend that we not renew her agreement.”
saying Bonney’s letter “contained numerous errors about our relationship with the stores, without verifying if any of it was true.” When asked for more specifics Cameron refuses, saying, “No, because if I do that it authenticates what he says.” Cameron asks, “Does he know what [Brigg’s] sales figures are? Who is
this Brian person to comment on the profitability of a store and is he actually getting true figures, because he wouldn’t get them from us.” More tellingly she states that profitability as determined by the retailers isn’t relevant. “What I’m saying is that we have a contractual agreement with sales figures that we consider profitable.” Later she elaborates, saying, “It’s the member’s license and they are the ones who deem whether a store is profitable or not.” Cameron declares her organization’s mantra: “We represent our membership first and foremost.” There’s the rub. As Ruhland points out, profitability is somewhat in the eye of the money maker. “It wasn’t profitable for them, but for me it was profitable.” Cameron insists Ruhland’s store was not profitable, but when asked if he made money or was not meeting his contractual agreements she answers, “Both. They’re basically synonymous.” conflict CONT. ON PAGE 12
The Leader in Fuel Management save time & money
reduce your fuel costs
take control of your fuel
®
Okanagan Region
250.212.8401 www.4refuel.com December 2009 Okanagan Business Examiner
|
11
Lisa Cameron heads up the BC Wine Institute. Many retailers attached to the BCWI say it’s conflicting interests are hurting their businesses. Photo contributed
conflict CONTINUED FROM PAGE 11
Cameron seems unable to distinguish between a successful business that makes money and making enough money for the Wine Institute’s member wineries. But, as another owner says, “They are looking out for their member [wineries] and not the B.C. wine industry. I don’t fault them for that.” The real issue isn’t how profitable is defined. It depends on who has the power to act on its definition and, according to the store owners, all the power rests with the Wine Institute. Rules for the model are essentially dictated to store owners by the Wine Institute; although in response to criticism on that front, a VQA store committee was created in 2008. In addition, Cameron asserts, “We also in January of ’08 hired a full time BC VQA liaison whose sole job is to
From another, “There is not much of a relationship between us because they don’t do much of anything for us.”
work with the stores and the BCWI and the store committee to ensure that if there is an issue it is brought to the committee’s attention.”
And yet another on increases in store gross revenues: “It was just a topdown decision made by the Wine Institute.”
Unfortunately most store owners
Cameron says too many people
“Our goal at the end of the day is not to go to a
One owner says,“[The $600,000 figure is] a moot point to me. I don’t see the $600,000 as a hurdle. The Wine Institute has been trying to help some store owners, but they insist on using unsophisticated methods and are on a high horse about their results.”
Let’s shut you down.” -Two stores shut down, two more threatened with closure within a year out of a total of 18.
refuse to pay attention. “We can send out a communiqué every week and someone will say, ‘I don’t understand.’”
Another store owner agrees, saying, “The contracts are imposed – there is no real negotiations or discussions.”
Not all owners are critical.
On the issue of the contract terms being dictated, Cameron says, members are now notified, well in advance of changes. The move to a $600,000 gross was presented to store owners two years ago with implementation in 2008. Notified, say some, is not the same as negotiated.
store and say, ‘Well, you’re not doing very well.
don’t feel it made much difference. Says Quick, “They don’t negotiate with the stores. They can do as they like.”
problem, he gets a call back within a day.
One supportive owner defends the Institute, saying there are now quarterly meetings and if he has a
Other owners, even those critical of the Wine Institute don’t disagree on that revenue mark. One says, “For most store owners that [$600,000 mark] is not a hurdle.” Bonney sees it as a betrayal because, way back when the VQA licenses were not wanted, store
FULL SERVICE OFFSET PRINTERS Serving the Okanagan Business Community for over 17 years • Fast • Economical • Reliable • Guaranteed We offer the most advanced and environmentally friendly press technology available in the interior!
www.sourcegraphics.net SOUTH OKANAGAN Juanita Gibney 250.809.9104
CENTRAL OKANAGAN Bruce Knight 250.765.6445
Toll Free 1.800.667.9266 • 1050 Leathead Road, Kelowna, BC
NORTH OKANAGAN Benita Frank 250.558.8110
Proud Member of the Summerland, Peachland, Kelowna, Lake Country and Vernon Chambers of Commerce 12
| www.businessexaminer.ca December 2009
owners were encouraged to locate in small population centres. At that time the gross required was only $250,000. A decade later the figure is more than twice that, but buying populations in towns where Ruhland and Quick work are much the same size. As Ruhland points out, “Marketing that works in Vancouver, won’t work in Oliver.” Cameron counters, saying that if the VQA license regime is so unfair they wouldn’t be in such demand. She says, “We have a wait list of a hundred people wanting to know when a VQA license will open up.” She adds, “We’re in a case now where we have so much demand for these licenses that…we are enforcing our contractual obligations that the operator is under with these agreements.” Her message seems to suggest small store operators are no longer needed. She says new stores are scheduled to open in Chilliwack, Surrey and Nelson and she expects a full contingent of 21 stores open by the end of 2010. Ruhland dismisses that saying, “The reason that all those people want a [VQA] liquor license is that these are the only liquor licenses available.” It’s true – the province froze the number of private beer and wine store licenses several years ago. He also argues, “Every single one would switch over to a beer and wine store if they could. That’s a no-brainer.” Most owners agree. One of the most successful store owners indicates he is hoping to get out by selling. Another says, “I would have to move [my location], but I would prefer to have a LRS (Licensee Retail Stores more commonly known as a wine and beer) license.” All bottles and their contents are not created equal. Top photo - The bottle on the right is VQA, and is made from B.C. grown grapes. The bottle on the left is non-VQA and brings the winery considerably more profit. The Wine Institute had remarkably little to say about these labels until others made complaints. The close up below shows the VQA sign more clearly, something most consumers wouldn’t notice. Photo by Devon Brooks
Another adds it is not a beer and license she wants, but to get out from the restrictions of the tightly controlled regime. “I’d like to sell B.C. wine, anything that is 100% B.C. made.” The answer, most people believe, is to remove control of the licenses
from the Wine Institute. The same owner says, “I feel that they’re in a conflict of interest when they administer these licenses.” A second says, “I feel they are in an impossible situation.” And: “I would be in favour of the Wine Institute not controlling the licenses.” “The push is to remove the licensing authority from the Wine Institute,” says another. Bonney says the government can’t keep washing its hands of the affair by insisting it is up to store owners to duke it out with the Institute. “We need a task force with representatives from the B.C. government, the Wine Institute and the VQA stores.” One owner says it’s been tried before and Bonney shouldn’t hold his breath waiting. “We approached the government, but we’re only 20 stores and we don’t have any real voice and we were shut down pretty quickly.” Bond believes, “Those licenses should be turned over to the store owners. To leave it to the BCWI is a gross example of conflict of interest. It’s just atrocious.” Even Hicken, cautious as any lawyer, agrees, saying, “I think there needs to be a rethink of the Wine Institute structure. It’s not really appropriate for the Wine Institute to be running a chain of stores.” But, according to Cameron, it is entirely appropriate. There is no conflict of interest, she says because people on the board and committees are “amazing business people and are very fair and they have good business sense. They’re in the position they are for a reason and can look at the industry and see the bigger picture for all sales and not just their own.” Ultimately the reason they can never be in a conflict of interest, argues Cameron, is that some of the member wineries created the licenses. Since they own them, they cannot do any wrong with them, and malcontents need to understand that.
December 2009 Okanagan Business Examiner
|
13
Fruit Growers Conference points to better future
The beleaguered fruit industry got a pep talk at the British Columbia Fruit Growers Association’ (BCFGA) conference in mid-November. The conference theme was ‘New Varieties’, symbolic not only of new varieties of fruit, but new varieties of thinking that can head off the combined difficulties of high land prices, very tough competition caused by over supply and made worse by the high Canadian dollar.
Professor David Hughes from Imperial College in London says marketing premium fruit means committing to excellence, not only in taste but in all aspects of business. He says New Zealand growers have made being green a priority because it is part of the image they wish to convey of being, and doing, the best. Photo by Devon Brooks
The conference was headlined by Dr. David Hughes who is Emeritus Professor of Food Marketing at the Centre for Food Chain Research, Imperial College in London, England. Hughes is also a director of a U.K based, farmer-owned berry fruit business. Hughes’ talks during the day highlighted different ways the industry here might move ahead profitably. Marketing versus selling was a common theme at the conference. Rick Austin from B.C. Tree Fruits
defined the difference, saying selling was trying to get the best dollar for every piece of fruit they had whereas marketing was designing a program to work with retailers and deliver fruit at premium prices. Hughes gave a practical example, saying food retailing in the United Kingdom is dominated by three supermarket chains, of which his berry company works with two. One chain, Sainsbury, invites different fruit providers to send in bids offering fruit and prices. The second, Tesco, which is Britain’s largest, invites them in for detailed planning sessions where they work out marketing campaigns that sells the best fruit to consumers thereby helping Tesco, the fruit suppliers and farmers. Hughes says they lean toward Tesco every year, putting their best toward that chain and it this kind of relationship that fruit suppliers need to develop.
While selling to ethnic communities was not seen as an effective strategy because of the dispersion of ethnic groups across the country, regional differences are something to be looked at. Another speaker was Dr. Terence Robinson from Cornell University. Studies at his school have shown that different parts of the continent prefer different types of apple. He says that Red Delicious apples are scarce in the eastern U.S., a recommendation that brought forth groans from the audience because the Red Delicious has fallen out of favour with consumers here and generates low prices. On display at the conference was the Aurora Golden Gala along with the Nicola both newer varieties. Another apple was available for tasting, known only by its testing name of SPA467, which apple breeders hope will become as popular as the Honey Crisp, a recent runaway best seller.
SPEND A DAY TASTING CHAMPAGNE POWDER ON THE BOSS
bigwhite.com BIG WHITE KELOWNA OFFICE
250-491-6262
TICKETS@BIGWHITE.COM
SILVER STAR TICKET OFFICE
250-558-6023
TICKETS@SKISILVERSTAR.COM
SURVEY SAYS
YOUR STAFF
SAVINGS CLUB ADULT $62.00 SAVINGS CLUB YOUTH $51.00 SAVINGS CLUB CHILD $28.00
SAVINGS $9.00 SAVINGS $8.00 SAVINGS $7.00
ONLY AVAILABLE FOR
WANT LIFT TICKETS BUSINESSES IN THE OKANAGAN
FOR CHRISTMAS LIMITED TIME OFFER - MINIMUM ORDER OF 10 REQUIRED PHONE ORDERS OR EMAIL ONLY.
14
| www.businessexaminer.ca December 2009
Bs
BigWhite skitipsskitipsskitipsski Early Season Ski Training By Josh Foster – Director of Snow Sports, Big White Ski Resort
There’s a definite chill in the air, the days are getting shorter and the nights are getting longer and, if you're at all like me, those long nights are filled with dreams of skiing! It's this time of year that I think about skiing the most. I can't wait to hit the slopes, but if I want my reality to be in-line with my dreams of great skiing I need to be prepared. Some early season fitness will ensure that those first days on the snow are all they can be. Before buckling up the boots for the first time each season I do my best to get in some prep work at the gym, at home and on the trail so that I’ve got a good base of strength, endurance and agility. I think these three elements are critical not only for a great start to the season but they’ll also help get you through the season injury free. With regards to strength, most people would think that if you’ve got strong legs then you’re good to go – unfortunately not the case. Good skiing comes from having a strong core as well. I use a Swiss Ball to help with this. There are literally
dozens of great exercises that you can do with an exercise ball that strengthen your core muscles, but it’s best to seek the guidance of a trainer when first starting out. When used properly you’ll see and feel results very quickly as well as get the strength you need to protect your lower back throughout the season. It’s a good idea to incorporate a core strengthening element to your regular fitness regime about two or three times a week. Endurance. You want to last on the mountain especially if it a great powder day, don’t let being unprepared cut a fantastic day short. Cycling uses very similar muscles to skiing so get out on your bike! If you’re fortunate enough to have snow on the ground already where you are then get to the gym and get on an exercise bike or head out and do some ice skating or running. To build a good endurance base you need to sustain some physical activity for at least 45 minutes or more. This will help you deal with the lactic acid that builds up in your muscles while skiing a long run or squeezing one more run out of a long day.
Lastly, you need some agility, quick feet! This is probably the most fun of the three elements mentioned here because you can build agility through all sorts of great activities. Racquet sports like squash, tennis and racquetball are a great workout and they build quickness; on top of that if you're going for 45 minutes or more then you’re addressing your need for endurance as well. Racquet sports require lots of lateral movement and that helps strengthen the muscles around the knees and ankles that assist in building foot speed. The foot speed that you’ll gain from having some fun on the court is going to make those quick moves in the trees and in the bumps come a lot easier. So there you go strength, endurance and agility, three things to consider before your first day on the slopes and something to keep in mind for a long healthy ski season. Have a great winter!
NEXT YEAR CONTINUED FROM PAGE 8
future. It means people are confident enough to put money down on a home. Lumber will be used and tradesmen will put it all together. Single unit permits were issued at an annual rate of 452,000 in September. That is much better than the 342,000 in January of 2009, but much lower and slower than the unsustainable peak rate of 1.8 million per year in September 2005. U.S. housing prices are rising again, also suggesting the worst is over, but the big gap between current and past permit levels suggests the U.S. housing industry might take another year or two to recover. Infrastructure spending in the U.S. and Canada also deserves special mention. It is the best time in years for new construction: material prices are lower; workers are available to put it together and low interest rates are available to finance it. Too bad the new Kelowna bridge isn’t being built now at a much lower cost. Too bad the proposed Vernon civic complex isn’t going to council now. The biggest use of infrastructure money I have seen to date is the purchase of “infrastructure� stickers on the signs announcing construction work on the Trans-Canada highway, which has been planned and funded for years. That money
FREE
is now starting to flow through and there are billions more to come. Much of the money will be spent on things like roads and bridges, which should make our economy more efficient for many years to come, in addition to employing many people in the year to come. There will always be risks on the horizon. Barack Obama might start a trade war. North Korea might start a nuclear war. Aliens from outer space could start an interplanetary war. But at some point we have to get on with our lives. Investors are now wishing they had overcome their fears and invested more in equity markets last winter. Investors three to five years from now will likely wish they had overcome their fears and invested now. Dominik Dlouhy P. Eng, MBA, CFA is a Chartered Financial Analyst and planner with Partners in Planning Financial Services Ltd. and The Fraser Financial Group LLP. You can reach Dominik at 545-5258 or dominikd@fraserfinancial.com with comments or issues you would like to see covered in this column. Opinions expressed in this article are those of the author and not necessarily those of Partners in Planning or The Fraser Financial Group.
&BTZ UP 6TF t &OKPZ GPS :FBST t (SFBU (JGUT t 3FDPSE $PNQBOZ .JMFTUPOFT
Photobook Software
Avatree is proud to be 100% owned BOE PQFSBUFE -PDBUFE JO UIF IFBSU PG UIF 0LBOBHBO 7BMMFZ XF BSF $BOBEB T JOOPWBUJWF MFBEFS JO QIPUPCPPL NBOVGBDUVSJOH 8JUI "WBUSFF ZPV DBO DSFBUF DPTU FGGFDUJWF EJBNPOE RVBMJUZ NFNPSZ BMCVNT GPS CPUI UIF IPNF BOE UIF PGýDF 0VS HPBM JT UP FOTVSF UIBU ZPV FYQFSJFODF ZPVS KPZGVM NFNPSJFT JO B NBOOFS UIBU JOTQJSFT ZPV UP GFFM QSPVE BOE TIBSF UIFN XJUI ZPVS GBNJMZ GSJFOET BOE DP XPSLFST
a division of Triboda Printing Company 16
| www.businessexaminer.ca December 2009
Get Started Today!
XXX BWBUSFF DPN
BusinessExaminer Okanagan
ONA PENTICTON p
r
o
f
i
l
e
Reaching Out Why First Nations participation is so important to the Okanagan
Concept layout for 112 acre Enterprise Park 1st phase โ 27 acres opening in Summer 2010
An environmentally sustainable business and light industrial park for the south Okanagan.
OPENING SUMMER 2010 Conceptual Building
The Senkulmen Enterprise Park offers a contemporary, fully serviced eco-industrial park in the South Okanagan featuring: t B OFX CPSEFS DSPTTJOH BU 0TPZPPT t TVQFSC IJHIXBZ MJOLBHFT UP 7BODPVWFS BOE UIF JOUFSJPS t BJSQPSUT BU OFBSCZ 1FOUJDUPO BOE ,FMPXOB t IJHI FOWJSPONFOUBM TUBOEBSET XJUI XBUFS VTF TBOJUBSZ USFBUNFOU and landscaping t QBSLMBOE SFTFSWFT
Conceptual Building
t TUSJOHFOU EFTJHO HVJEFMJOFT %PO U NJTT UIJT รถ STU UJNF PQQPSUVOJUZ UP QPTJUJPO ZPVS CVTJOFTT XJUIJO UIF OFXFTU BOE NPTU NPEFSO CVTJOFTT BOE MJHIU JOEVTUSJBM QBSL JO British Columbia. Become a part of this great community and take advantage of our competitive long-term lease rates, potential equity participation and marketing programs.
Contact Chris Scott Conceptual Building
1-888-498-3444, local 121 cscott@oib.ca XXX PJC DB
A quality project by the Osoyoos Indian Band Development Corporation.
IMAGINE
your business in Penticton!
Contact us today! www.imaginepenticton.ca 250.493.3323 info@imaginepenticton.ca
“First things first – we want to strengthen the relationship with the city.”
- Penticton Indian Band Chief Jonathan Kruger
Robert Greno used to work for the City of Penticton, but is now the general manager for the Penticton Indian Band Development Corporation (PIBDC). He’s quietly confident, but excited by the new cooperation blooming between the City and the Band. He says it’s like a painting, “The canvas is great, but the brush and paint to work with is essential.” If there truly is a rapprochement between the Penticton Indian Band and the City of Penticton it is surely because of the leadership of two men: Mayor Dan Ashton and Chief Jonathan Kruger. While the federal and provincial governments bog down in negotiations about making peace with First Nations people who have never had a treaty, the City and Band are crafting agreements that cut across a wide swath of topics, something that has eluded them in the past. According to Ashton, “What we are is very keen on mutual cooperation. The goal is to develop the quality of life here.” Kruger’s take is, “We’re doing this because we are open for business and we’re serious.” It’s well because both communities has something that the other really needs. The city is hemmed in by mountains on east, lakes north and south. Acknowledges Ashton, “We don’t have the land.”
By Devon Brooks Photos by Shawn Talbot
New paint for region’s economic canvas
The Penticton Indian Band has a huge land base, bigger than all of Penticton, but with few points of access, poor infrastructure, and a youthful population without enough opportunity. Kruger says, “Our population is really high with young people. They really want full time positions.” He adds, “We’re going to need help. What does this region and city need?”
If the partnership seems like a natural, the reason for the stronger relationship is summed up in five more words from Kruger, “We’ve separated business from politics.” The business case, now underway, will trade infrastructure assistance for new opportunities to expand the economic base of the region, providing jobs for many. What the band lands require is fire protection, water, sewage, electricity, lighting and better road access. If the details can be worked out with the city, the path is open for new development. As Penticton’s Economic Development officer, David Arsenault says, “We certainly have models – look at the Osoyoos Band and Westbank First Nations.”
Development Land
The success of both those Bands is not only well known locally, but has attracted attention across the country. Osoyoos, without a large population, has invested in a range of businesses, many heavily involved in tourism, and lately high end tourism, but there have been industrial and construction developments as well.
life span. With the new emphasis on re-establishing these fish in the Okanagan it made sense to put up the new building closer to where they’ll be needed.
The Westbank Band has encouraged the development of resorts, housing and the huge commercial developments seen along Highway 97. Those developments on Band lands are so successful that they are contributing to the hollowing out of West Kelowna’s downtown section. Asked if the same thing could happen in Penticton, Arsenault responds, “I’m not worried about it.” The reason? He notes, “We’ve already got most of the big boxes, the Wal-Mart, Canadian Tire, the Rona, over here.” The Mayor says, “It’s been part of the behind-the-scenes discussion: are we gong to dilute the commercial base? In my opinion the land in the City of Penticton will be good; as the band develops it customers will flow back and forth. I have a retail background don’t forget. Your competition is your best customer.” Most important is that both sides want the development of PIB land to benefit everybody. Ashton believes, “The band wants the benefits to help the whole area.” So does Arsenault, “We all benefit from having increased economic activity.” The Band hasn’t yet finalized
exactly what it will do. Kruger says the PIB is putting together an Official Community Plan of its own, one that Band members will vote on. He expects it will pass easily, saying, “I think we have that support.” Along with homes and commercial buildings, industrial development is part of the proposal for some 1,500 acres of land.
Geoff Greenwell is with the Okanagan Nation Alliance’s business development unit. He describes the hatchery complex. “The building will have four floors and over 33,000 sq. ft. of interior space. The ground floor is dedicated to a Sockeye rearing hatchery, which will have the capacity to produce up to 8 million sockeye annually. These juvenile salmon will be released into the local lake and river systems to help reintroduce the species into water systems that have been affected by dams and other environmental restraints that have caused a steady depletion of the native species in the Okanagan over the last 100 years. The upper three floors of the building will contain laboratory spaces and general administration offices as well as boardrooms and a library/archive facility.”
That need is critical as Arsenault understates, “We have a bit of a shortage for industrial development.” For those afraid of smokestacks, Kruger, Greno, Ashton and Arsenault chorus that it will be industry with a strong, green focus.
Officially Mayor Ashton and Chief Kruger meet every two weeks. Unofficially both they and others involved in the economic process like David Arsenault and Robert Greno are meeting much more
Hatchery & going Green
The first project, says Greno, already underway is a new fish hatchery. “The hatchery is the first LEED structure on the reserve.” Funding is coming from Washington State, as part of the Columbia River treaty. Kruger says for five years they have been working to re-establish sockeye salmon in Skaha Lake. Until now the juvenile salmon have been coming from a hatchery in the Shuswap, says Kruger, which is getting close to the end of its
frequently.
Penticton’s right turn toward business By Bobbi-Sue Menard
Large scale government investment by almost every level of government in the south Okanagan has been the business theme in Penticton for the past several years. The theme promises to continue in the immediate future. Recent major projects including the South Okanagan Events Centre, and the upcoming Centre of Excellence in Sustainable Building Technologies and Renewable Energy Conservation, at the Penticton campus of Okanagan College are examples of the overall push to diversify Penticton into a green-based economy. Local small business growth, tourism and developing Penticton’s manufacturing base remain key pieces to Penticton’s economic puzzle. Penticton City Council has upcoming votes at the municipal level on key tax breaks targeting those three sectors.
public investment momentum, it is hard to find anyone who benefits directly or indirectly from the spending who isn’t excited about Penticton’s prospects. “We are working hard on a vision of a community that is vibrant,� says David Arsenault, Penticton’s Economic Development Officer. “The community is very bullish on developing this potential; it is not the sleepy little town that people may think it is.� Retailers felt the recession this spring, but Arsenault has heard from many businesses that residents have chosen to shop at home, “Retail has seen some growth, but we are looking forward to the four lane highway, especially for tourist traffic.� Maintaining tourist traffic is the main concern of Gordon Ferguson, General Manager of the Penticton Ramada, who is also overseeing the
renovation of the Travelodge into a Coast Hotels property. “There is no question that we felt the hit of the recession, but it is important to remember that Penticton’s numbers exceeded other tourism destinations this summer.� In preliminary numbers, compared to 2008, this year is less than stellar, but compared to the ’06 and ’07 seasons 2009 is not out of line. What has Ferguson excited is the SOEC. Both properties he manages are the closest to the new facility, and the impact has been impossible to miss. He gushes, “The hotel sold out within three hours of the Brooks and Dunn concert being announced. We are delighted with the SOEC.� The potential for sold out nights, especially during the off season is not to be discounted, but Ferguson counts on the summer sun, Penticton’s driving distance
Despite the admitted effects of the recent recession, with the 09 • Size: 4.78� (w) x 4.71� (h) • REV 3 • Nov 09/09 KIAall AdofNov
to Vancouver and Alberta, and the burgeoning wine industry to pay the bills. Occupancy rates stubbornly remain at 40 to 50% throughout the off season. That reality has Ferguson decidedly ambivalent about the municipal push for tax breaks for the Penticton hotel industry to both increase and upgrade capacity. “We are 100% focused on upgrades, there is no question Penticton needs that, but not new builds. New supply would drain the economy. There is healthy competition, but there is a double edge sword.� According to Penticton Mayor Dan Ashton, the hotel improvement tax incentive under consideration is to help local hotels while enhancing previous large investments, specifically the Penticton Trade and Convention Centre. “There is substantial need for hotels, there are some very good properties, but some need improvement. There needs
8F 1SPWJEF 0LBOBHBO #VTJOFTT 0XOFST 4UBGG #FOFžU 1MBOT *OTVSBODF 4FSWJDFT
In 2008 over a quarter of a million air travellers flying into Kelowna International Airport said their final destination was Penticton and the South Okanagan. Kelowna International Airport – YLW – Serving BC’s Southern Interior. The world at your doorstep.
www.ylw.aero 22
| www.businessexaminer.ca December 2009
1I 5' -BLFTIPSF 3PBE ,FMPXOB #$ &NBJM ECžOBODJBM!TIBXCJ[ DB XXX CDCFOFžUQMBOT DPN
to be an opportunity for current owners to fix up their businesses, but we need to give a new property the incentive to come here. Our convention business requires it.” The hotel tax incentive will come before Penticton City Council for its introduction along with a proposed tax incentive for manufacturing and a third small business incentive focused on the downtown core, specifically the Business Improvement Area. Ashton views the incentives as a clear link in the chain with senior levels of government when it comes to investing in the city. “We are very ‘pro-Penticton.’ We have worked hard to form partnerships with other levels of government and are ecstatic with the amount of money spent here.” While City Council looks at tax breaks for specific sectors, there is no question the largest municipal investment of late is the SOEC. The SOEC was supported by the region, and a one shot deal accessing extra funding from the casino, allowing for a relatively light tax burden on
ratepayers. The special funding deal could not be passed up, says Ashton. “We have always have always strove for clean industry [and] that centre is a long term investment. Yes, it was a substantial investment, but it is a premier facility and extra money allows it to be paid off incredibly quickly.” The popularity of the SOEC is gratifying to Jack Kler, Director of Corporate Services for Penticton. Kler has shepherded the project from its inception. “Everybody was anxious for the SOEC, and frankly we were a year delayed in getting good numbers. We are realists and know that it will be three to five years before we see the facility reach its potential.” While the SOEC finds its long term footing, and the convention centre awaits the possibility of a tax induced five star hotel suitor to take its services to the next level, the next big government investment comes courtesy of the federal stimulus. Okanagan College has received a combined $22.6 million from the
federal and provincial governments for a new Centre of Excellence. The college is expected to fund-raise the balance of the $28 million project anticipated to open in March 2011. The building is being touted as a revolution in green development, because it is at ‘par’ with traditional construction in terms of cost. “That’s a game-changer – we can demonstrate green without a premium,” says Allan Coyle, Director of Public Affairs for Okanagan College.
predicts Coyle.
The 7,085 sq. m. building will be home to 800 students of which 500 will be new to the South Okanagan.
“We have a track record of delivering. We have seen that for every dollar that is invested there are 30 dollars in economic impact, whether in wages, sales, attracting angel investors, venture capitalists and more.”
Based on an economic impact study from two years ago, Coyle says the interpolated economic impact of the expansion will be $97 million annually. There will be just over 276 construction jobs and 26 full time teaching jobs at the Centre. The building will demonstrate for the students what the programs are about, ranging from geothermal to applied conservation housed within the building. “We know there is going to be demand for the skills,”
The first companies accessing graduates could very well be start-ups nurtured by the Okanagan Research & Innovation Centre. The new business incubator, overseen by Peter Hallbrecht, will focus on clean technology companies. Hallbrecht feels ORIC’s success in developing technology business incubators at the White Lake facility and in Kelowna will repeat at the Centre for Excellence.
Hallbrecht hopes Penticton can capitalize on strengths like the fibre-optic network and the great climate to entice technology and green companies to set up shop, “In the long term there are tremendous opportunities for high tech companies here.” right turn CONTINUED ON PAGE 26
December 2009 Okanagan Business Examiner
|
23
Westbank lures new business Downturn or no, growth on Westbank First Nations (WFN) land in the last three years has been phenomenal. Most of the development has happened on Tsinstikeptum #9, which is land immediately east and north of West Kelowna’s downtown area. Four new commercial plazas have already opened, home to big boxes like London Drugs, Canadian Tire, Home Depot, Staples and Wal-Mart among others. Other businesses such as most of the commercial banks have relocated from West Kelowna to WFN developments. There’s more to come. Reports this October indicate that the delayed Great Canadian Superstore will open along with Winners, Future Shop and a large Rexall pharmacy. With the big anchors there is expected to be an explosion of smaller retail operations. It’s not definite yet, but predictions are many of these will be open for business by 2011. On the residential development side the population increase on WFN property speaks for itself. In 2006 5,700 people lived on WFN lands, 83% of them on Tsinstikeptum #9. Less than 10%
were registered Indians. This year’s economic profile from the Central Okanagan Economic Development Commission estimates that 9,000 people now live on WFN land, more than 90% not being First Nations’ people.
While those are close buyers realize immediate savings when they buy on First Nation’s lands and the rate reflects a steep downward trend in tax rates for the WFN. In 2005 residential rates were $9.1107.
Certainly the recession is hitting the development process there. In October Troika Developments announced it was down-sizing its West Harbour lakefront project. Instead of a huge condominium project, West Harbour will become 250 separate homes. While that is still a substantial project in its own right, the development march has only slowed, not stopped.
Light industry and business tax rates have experienced a similar sharp decrease. Light industry dropped from $25.5099 to $23.6552 while business went from the same figure in 2005 to $19.3814 last year.
Two reasons why it will resume have not changed – WFN offers a much quicker, cleaner process for development and taxes are less. Property rates in 2008, as shown on the WFN’s Economic Profile, show that Westbank is comparable to surrounding municipalities for business, light industry and residential taxes. For residential property rates Lake Country has assessed rates of $5.9486 per $1,000 of assessed value followed by the WFN at $6.3504. Kelowna stands at $6.3896.
The most striking proof of growth there show up in the number of building permits that, despite the recession, went from 169 worth $9.9 million in 2005 to $43.6 million in 2008. Business licenses too are up. Last year WFN issued 341 licenses, 88 new ones and 253 renewals. Westbank First Nation members are responsible for 67 of those licenses.
In Partnership with re Supersto g Openin 0 Fall 201
Rexa Open ll ing 2011
ZELLERS
LOUIE DR
EXTRA FOODS
STAPLES
HWY 97
Winners & Future Sho p Opening Fall 2011
BU T
TR OA D
HWY 97
CANADIAN TIRE
FOR LEASING INFORMATION
Osoyoos celebrates two development triumphs The Osoyoos Indian Band (OIB) keeps moving from strength to strength. Last month they celebrated the official opening of the Nk’Mip Conference Centre, which is attached to the Spirit Ridge Vineyard Resort. National Chief Shawn Atleo summarized the upbeat mood in the crowd when he asked, “Isn’t this the time in history that we overcome any obstacles to prosperity and well being?” More than 200 people were in attendance including local town officials, officials from the Department of Indian and Northern Affairs, OIB Chief and Development Corporation CEO Clarence Louie, Chief Operating Officer Chris Scott, Chief Financial Officer Brian Titus with innumerable elders and chiefs. Also in attendance was Dr. Stephen Cornell, cofounder of the Harvard Project on American Indian Economic Development. Besides the opening ceremony the assemblage was there to launch a First Nations Economic Development Forum for which Dr. Cornell was one of the keynote speakers. While the success of the various developments are now apparent, Chief Louie and others had to
face much more skeptical audiences initially. He says the Band’s first investment into Spirit Ridge was a $400,000 payment for a 25% share. Chief Louie was quite happy to report that the band had just received an $800,000 payment from profits on the entire complex. Another announcement was the start of construction on the third and final phase of Spirit Ridge. He also reminisced about the Band’s history, starting with its first lease on a golf course back in 1963, which is now one of 11 businesses that the Band owns or has significant interest in. One of the newer interests the OIBDC is floating is the Senkulmen Industrial Park. The park, says COO Scott, has been in planning for several years, with renewed interest and investment starting two years ago. More than an industrial park providing much needed space for industry in the region, Senkulmen is green in design from, literally, the ground up. The 13 parcel project will be built up around the Vincor plant already on site, but the infrastructure going in around Vincor will include a state-of-the-
art sewage plant, infrastructure for foot, bicycle and road transport, energy use. Until now, though Scott says they’ve been touting the idea, but had few takers. Realty companies told them the idea had great merit, but they wouldn’t sell it until spades were in the ground. Spades wouldn’t go in the ground until investment money was raised, and that was waiting for evidence from realtors that the project would sell. It was, says Scott, the perfect example of the chicken and the egg. Now Scott is excited because a federal government department has signed on, willing to provide a third of the investment necessary to build the project’s $9 million infrastructure. With that signed, he believes another federal government department, and then the province, might be willing to invest as well. Until the official announcement is made on December 12 Scott says all other details must be kept under wraps. The first spades will hit the dirt by the middle of January at the latest.
Westbank First Nation WAL-MART
Shop at Governor’s Landing • STAPLES BUSINESS DEPOT
• OUTBOUND CYCLE
• GINZA JAPANESE RESTAURANT
• LIQUOR DEPOT
• LITTLE CAESAR’S
• THIS N THAT PARTY SUPPLIES
• WAREHOUSE ONE CLOTHING
• BOOSTER JUICE
• ROGERS WIRELESS
• PAPPAS ROASTERS
• JOHNSTON MEIER INSURANCE
• CREAM HAIR & MAKEUP
HOME DEPOT
CALL 1-866-268-3772
• MOJOZ SPORTS • INTELLIBED • U-WEIGHT LOSS • PORELLI LAW • MACIEL & CO ACCOUNTANTS • THE CASH STORE • METALLIC GARDENS
right turn CONTINUED FROM PAGE 23
Penticton Snapshot
Incorporated: 1909
Area: 42.0 sq. km Located in the Okanagan-Similkameen Regional District
(2,290 or 14.8%); health care & social assistance (1,940 or 12.5%); manufacturing (1,630 or 10.5%). Total labour force: 15,480 (2006) Labour force as % of total population: 48.5% (2006)
Statistics
Population 32,933 (2008) Population growth rate for 2007-2008: 0.4% (B.C. 1.7%) Population aged 65+ in 2006: 25.8% (B.C. 14.6%) Employment & Labour Force
The three biggest employer sectors in 2006: retail trade
Income
Median household income (2006): $53,179 (B.C. $65,787) Average income from those filing tax returns (2006): $33,848 (B.C. $38,523) Main source of income for residents in 2006: Employment (56.0%), Pension (21.1%), Investment (10.2%), Other not counting self-employed (5.1%),
Self-employed (4.7%) Unemployment Rate (2006) 6.8% (B.C. 6.0%) Unemployment Rate for southern interior of B.C. (2009) 9.7%
to 199 employees, 8 organizations had 200+ employees Chamber of Commerce members: 700 Building Permits
Business
Business incorporations: 215 (2008) 247 (2006)
New residential units built: 263 (2008) 450 (2006)
Business bankruptcies: 4 (2008)
Typical house value: $369,205 (2008) $166,900 (2004)
Total # of firms with no employees: 1,301 (June 2008)
Average value of owned dwelling: (2006) $296,855
Total # of firms with employees: 1,515 (June 2008)
Value of new residential construction: $57.9 million (2008) $100.8 million (2006)
In 2008 1,321 organizations had 1 to 19 employees, 119 organizations had 20 to 49 employees, 67 organizations had 50
Value of other construction: $19.7 million (2008) $36.7 million (2006)
What about manufacturing?
Manufacturing employs over 10% of Penticton’s workforce and is the target for the third tax incentive under consideration at Penticton City Council. The municipal manufacturing tax incentive would target equipment and building upgrades. Economic Development officer David Arsenault is aware that with the “slowdown in manufacturing, many companies cut staff and retooled. We are looking at lean manufacturing.” Britco, the engineered building manufacturer reports sales are coming back after a difficult 2009. “We are working very diligently in the marketplace, in B.C. and Alberta. We are working hard, including on a B.C. housing initiative,” explains David Taft, co-owner of the company. Britco opened their second facility in Penticton because of an available, appropriate building, and the trained workforce. The company has taken steps to go green, upgraded the engineering in their products and invested in the facility. The economic downtown had the company moving to work sharing in order to keep members of their 70 person strong team employed. “We have a great workforce; we just keep beating the bushes for sales.”
Working towards a sustainable future
FortisBC understands the importance of working with First Nations communities, not only providing safe, reliable power, but also working with groups that share our commitment to environmentally responsible practices, energy efficiency and safety. For more information about FortisBC, call us toll free at 1-866-4FORTIS (1-866-436-7847).
Nadine Casey French Lawyer | Notary
Native Land Conveyancing
Mortgages | Wills | Estates | Corporate
250.707.0771 Rob Flett from Osoyoos Indian Band builds snake fencing at Bentley substation in Oliver.
Energizing your community www.fortisbc.com 26
| www.businessexaminer.ca December 2009
Fax: 250.707.0317 ncflaw@telus.net First Floor, Vintage View 104-3500 Carrington Rd. Westbank, BC V4T 3C1
Penticton Projects on the Go ‘Projects on the Go’ refer to projects involving four units or more or units larger than 1,500 sq. ft. in size.
1060 Poplar Grove Rd (commercial new) Poplar Grove Winery Architect CBA Architectural 250-490-8668 Constr.mgmt Bayline Construction Ltd 604-522-4750 Project New winery - 2 storeys - approx 30,000 sf - wine tasting space - restaurant - retail space - storage and processing areas Stage Construction Start anticipated spring/10 123 Greene Ave (multi-family new) Condominiums Owner.Bldr Westridge Contracting 250-490-5077 Designer -Ironwood Residential Design - 250-276-6440 Project New condominiums - 3 storeys - 6 units - wood frame construction Stage
Owner
250-493-7734
Carmi Corner Coffee House Ltd - 250-490-4099
Gen Contr
Project Addition of second storey for 2 residential units Stage Rezoning Application submitted 583 Duncan Ave W (institutional new) Centre of Excellence Owner Okanagan College - 250862-5617 Project mgmt PCL Constructors Westcoast - 250-868-8394 Project New building for green building technologies & other trades - 2 storeys -trade centre, gymnasium and a classroom/office complex - 8,500 sm
Project New commercial building - 3 storeys - 10,187 sf wood frame construction - underground parking Stage Construction Start - mid November/09 construction completion anticipated May/10 595 Carmi Ave (mixed-use dev) - Addition - Carmi Corner Coffee House
Construction Start - Phase 2 show home construction complete, construction start of SFDs anticipated shortly - construction start of club house and Phase 3, 12 lots anticipated summer/10 - construction start of Phase 4, 27 lots anticipated summer/11 2113 Atkinson St (multi-family new) Condominiums Starline Enterprises 250-492-4644 Project
325 Power St (institutional add/alter) - Aquatic & Fitness Facility Add
Tender Auth.
Greyback Construction Ltd - 250-493-7972
Stage
Construction Start -underway
1500/16/32 Fairview Rd (commercial new) Medical Offices
Gen Contr
80 SFD building lots in a gated community - one storey - wood frame construction - hardy board and cultured stone exterior - amenities building with pool, change rooms, lounge, meeting room
Owner
Owner
Matthew Coady Architect Inc - 250-493-3996
Project
Stage
Construction Start – anticipated December/09
Architect
Rivendell Homes 250-493-1584
City of Penticton 250-490-2400 City of Penticton - City Yards - 250-490-2540 Project New multi-purpose leisure and teaching pool with 10 leveled swimming lanes, warm up lanes, water slide, lazy river, renovation of the existing pool, new change facilities, additional fitness space, multi-purpose rooms, mechanical and energy upgrades, ancillary elements
New multi family development - 2 structures - 11 storeys each - 51 units in each structure Stage Construction Start - framing underway construction completion anticipated August/10
$310,000 residential new - SFD Applicant: Brentview Holdings Ltd 250-492-8423
408 Heales Ave
Project
$360,000
New mixed use development - 3 condominium towers - 20 to 23 storyes - grocery store
residential new - duplex
Contractor: Dorothy & John Tinning250-492-4042
Contractor: H & S Contracting - 250-492-6429
465 Edna Ave
Stage
783 Wiltse Blvd
Rezoning Application - approval anticipated December/09
$250,000
residential add/alter dining room
4850 Lakeside Rd & 417 Smythe Dr (multi-family new) - Townhouses
residential new - SFD Applicant: Scott & Angela Campbell - 250-493-5134 Contractor: Cathedral Ridge Const - 250-485-8717
Architect Robert Mackenzie Architect - 250-490-0558
104 S Middle Bench Rd
Project
residential add/alter basement
New townhouses - approx 100 units - 2 clusters of 50 units - approx 1,530 sf each - new winery for an existing vineyard Stage Construction Start anticipated summer/10 Nanaimo St & Robinson St (institutional new) Performing Arts Ctr
$24,000
Applicant: Ross Coutts/ Andrea Ollis 250-492-2561 Contractor: MacDonald Builders Ltd - 250-492-0395 1067 Killarney St $44,000 residential add/alter addition Contractor: Janric Construction Ltd 250-770-3273
Consultant Proscenium Arch & Interiors - 604-879-0118
Architect
Project
residential add/alter - deck
Robert Mackenzie Architect - 250-490-0558
New performing arts facility - 2 theatres, 750 seats and 150 seats - 200 seat recital hall anticipated to be load bearing masonry and steel frame structures
Contractor: A Little To The Left - 250-328-9887
Stage
Brentview Estates Ltd -
Construction Start - of
168 Wiltse Pl
Meiklejohn Architects Inc - 250-762-3006
Rivendell Homes 250-497-6959
Owner
Contractor: Tom Boerboom Carpen - 250-494-0876
$80,000
Architect
Owner.Bldr
Project
residential add/alter - kitchen
Contractor: TLM Ventures - 250-487-7517
Owner
170 Stocks Cr (subdivisions) Residential
Planning – project management and prime consultant award under review.
450 Martin St (mixed-use dev) - P2 Penticton Place Penticton Centre
2474 Evergreen Dr
3311 Wilson St (multi-family new) Verana Okanagan
4 new condominium structures - 164 units total - 1 level u/g parking acrylic and stucco exterior - fitness centre - saltwater pool - lounge - billiards and card room - kitchen - outside bbq - synthetic grass putting green
Stage
Building 3 anticipated March/10 - Building 4 presales anticipated summer/10
Penticton Building Permits (November 2009)
City of Penticton 250-490-2400
Stage Planning - location of facility secured - grant applications submitted fundraising underway
121 Grandview St $20,000
1683 Fairford Dr $25,000 residential add/alter - suite Applicant: Hart & Louise Loewen - 250-488-4500 445 N Middle Bench Rd $20,000
residential add/alter interior/exterior
$22,000
Contractor: New Spaces 250-809-4486 101 284 Main St $30,000 commercial add/alter Please Mum Contractor: Brian Blakely250-276-6008 105 2111 Main St $60,000 leasehold improvement salon/retail Applicant: Entre Cherry Lane Centre - 250-492-6708 330 Power St $85,000 site work - Queens Park School parking lot Applicant: School District 67 - 250-770-7700 All data supplied by Green Sheet Construction Data
Colour the Future Green
clean, green Columbia Power The Arrow Lakes Generating Station, immediately The Brilliant Dam and Generating Station and the downstream of BC Hydro’s Keenleyside dam near Brilliant Expansion on the Kootenay River near Castlegar, BC. Castlegar, BC
The new $28-million Centre of Excellence in Sustainable Building Technologies and Renewable Energy Conservation will bring a distinctly green tinge to the Penticton Campus of Okanagan, introducing leading edge technology that saves energy and reduces the environmental footprint of a building of this magnitude.
Realizing the Centre of Excellence will require community support. The Okanagan College Foundation is engaged in a $5 million fundraising effort to complement the Federal government’s $13.5 million contribution and the Province’s $9.1 million commitment.
Proud to be working with the Okanagan Nation.
OCRTP 16212
Find out more about the Centre of Excellence,
the South Okanagan-Similkameen’s green future, and how you can help by visiting our website or the campus
www.okanagan.bc.ca/centreofexcellence
Your Partner in Office Solutions
Columbia Power includes and listens to local communities when planning hydroelectric projects. We all want what’s best for the area we live in—and that includes employment for local workers, as well as a clean, green healthy environment. We take great care to minimize our footprint on the environment—from project planning and beyond. www.columbiapower.org
Suite 200, 445 - 13th Avenue | Castlegar, BC | V1N 1G1 | Ph: 250.304.6060
COAST ARCHITECTURAL GROUP INC.
Photocopiers, Faxes and Printers for any Size of Business
Proudly providing Architectural and Interior Design Services for the Okanagan Nation Alliance Fish Hatchery
PEOPLE + SERVICE + SALES + PRODUCT Helping you focus on: Process Improvement Environmental Issues | Information Security Sustainability | Total Cost of Ownership
H
ARTMAN BUSINESS MACHINES
• Architecture • • Interior Design • • LEED Accredited Professionals • 523 Lawrence Ave, Kelowna 250.762.7722
www.hartmanbusinesskelowna.com
28
| www.businessexaminer.ca December 2009
www.c oa s ta r c hgp.c om Offices in Kelowna and Kamloops
FROM THE DESK OF
DERRIKSAN GRAND CHIEF, WESTBANK FIRST NATION | GRAND CHIEF, UNION OF BC INDIAN CHIEFS, FOUNDING MEMBER
Get ready or be left out Normally development takes place when the realty market heats up to sizzling proportions and prices begin to soar for materials and services. Suddenly everyone and their dog jumps in. This is what causes the worker shortage, and the strain on engineers, geo-techs, architects, planners, and all the others required to do a development. Developers then face a scheduling problem and, when the markets drop off, are caught building late, and missing the market. That means they face serious financial setbacks, if not serious losses, and for some, total disaster. Their disaster affects other companies they have a relationship with, often because of the way they pay suppliers and trades people. Sub Contractors and Trades
The practice of developers that don’t pay their trades in a timely manner is prevalent in the world of developers. Sub-contractors and trades can’t afford to carry the costs of working for a developer who stalls paying for 60, 90, or more days. This practice, in
effect, has the trades financing the development project, and too often leads to trades losing their business, their homes and their credit capability. The developer that fails to complete the development, runs out of financing or goes broke, usually creates a total disaster for his trades! Trades should not work for a developer that follows this practice, period. The Waiting Game
When a recession hits the market everyone waits, and waits, and waits until the market begins to really heat up. Then they jump back into the fray, only to strain the supply of the very services they require to develop and the cycle is repeated. Canadian developers are the best in the world at waiting until the opportunity is once again lost. Developers that wait for a market to come alive often miss the market completely because they waited too long to commence projects.
Timing and Costs
A recession is the time to do the steps required to develop. Developers should be getting their environmental studies, required geo-tech and archaeological reports and zoning changes if required. They should ensure they meet all building requirements, and that their engineering and architectural plans are complete. It‘s during a slowdown or recession that it is much easier to get all these services done in a timely manner. In the event that a developer has the resources to accomplish these steps, and if their finances permit, they can also do in-ground services, and any other requirements. Then they are positioned extremely well for the coming up-market, which always returns. Today, the market is slowly warming up – it’s time to get ready for it or be left out. Noll Derriksan is Grand Chief of Westbank First Nation Lands, Grand Chief of the Union of British Columbia Indian Chiefs and owner of NC Derriksan and Son Enterprises, which, among other business pursuits, is a development company. December 2009 Okanagan Business Examiner
|
29
We’ve got it all wrapped up... THIS IS MORE THAN PLANT SOIL. It's sustenance for growth. Similar to how we're not just an accounting firm. We're a partner driven team that works to help businesses achieve their potential. BDO. More than you think. ASSURANCE | ACCOUNTING | TAXATION | ADVISORY SERVICES
Our firm is proud to support the Okanagan Nation Alliance For more information, visit www.bdo.ca or contact your local office:
www.kvins.ca Business and Home Owners Insurance Band Asset Insurance | Snowmobile and ATV Insurance Orchard Plaza 156-1876 Cooper Road, Kelowna, BC V1Y 9N6 T: 250.860.6064 F: 250.860.6094 Toll Free: 1.800.860.6064 Glen Park 115-1940 Kane Road, Kelowna, BC V1V 2J9 T: 250.862.9700 F: 250.862.9742
.PTU PG VT BTTPDJBUF ²XPPE IFBU³ XJUI QPMMVUJOH UIF FOWJSPONFOU VOQMFBTBOU TNFMMT MBCPVS JOUFOTF BOE VOSFMJBCMF FRVJQNFOU 8F UIJOL XF BSF PO UIF SJHIU USBDL CZ CVSOJOH GPTTJM GVFMT BOE CZ SFTUSJDUJOH PS FWFO PVUMBXJOH XPPE IFBU
)&"5*/( 8*5) 800%
'JOL .BDIJOF *OD 1 0 #PY 0ME 7FSOPO 3PBE &OEFSCZ #SJUJTI $PMVNCJB 7 & 7 $BOBEB 5FM 'BY & ¾OL!KFUTUSFBN OFU XXX 'JOL.BDIJOF DPN
30
| www.businessexaminer.ca December 2009
#Z TFSJPVTMZ MPPLJOH BU UIJT JTTVF XJUI BO PQFO NJOE XF XJMM ¾OE UIBU PVS PQJOJPOT BCPVU XPPE IFBU BSF PGUFO CBTFE PO BTTVNQUJPOT BOE OPU PO GBDUT 5IF &VSPQFBOT IBWF EFBMU XJUI UIF QPMMVUJOH PG UIF FOWJSPONFOU GSPN XPPE IFBU BQQMJBODFT JO UIF QBTU 4USJOHFOU FNJTTJPO MBXT IBWF CFFO FOGPSDFE JOTUFBE PG CBOOJOH UIF VTF PG XPPE IFBU BOE UIF NBOVGBDUVSFST PG XPPE CVSOJOH BQQMJBODFT IBE UP DPOGPSN UP UIFTF TUBOEBSET
Kamloops Kelowna Penticton Vernon
GPTTJM GVFMT 8IJMF VODPOUSPMMFE XPPE CVSOJOH TVDI BT JO BO PME TUZMF XPPE TUPWFT PS QSJNJUJWF JOEVTUSJBM CPJMFST FNJUT IJHI MFWFMT PG QBSUJDVMBUF NBUUFS UP UIF BUNPTQIFSF UPEBZµT NPEFSO XPPE CPJMFST BSF IJHIMZ SFHVMBUFE BOE VTVBMMZ IBWF TUBUF PG UIF BSU FNJTTJPO DPOUSPM EFWJDFT 5IJT UFDIOPMPHZ BMMPXT NPEFSO CJPNBTT CPJMFS QMBOUT UP SFEVDF UIFJS QBSUJDVMBUF BOE DBSCPO NPOPYJEF FNJTTJPOT UP XFMM CFMPX UIPTF PG UIF PME GPTTJM GVFM GVSOBDFT BOE CPJMFST UIFZ SFQMBDF
250 372 9505 250 763 6700 250 492 6020 250 545 2136
DPNQMFUFMZ FMJNJOBUFE BOE BOOVBM FOFSHZ DPTU SFEVDUJPOT PG VQ UP BSF BDIJFWBCMF (SFBUFS TBWJOHT BSF TUJMM BDIJFWBCMF GPS GBDJMJUJFT XIJDI IBWF UIFJS PXO XPPE XBTUF GSPN NBOVGBDUVSJOH QSPDFTTFT (00% 3&"40/4 '03 48*5$)*/( 50 #*0 &/&3(:
4BWJOHT #JPNBTT FOFSHZ TZTUFNT HFOFSBUF NVMUJQMF TBWJOHT CZ VTJOH B NPSF FG¾DJFOU IFBUJOH TZTUFN SFQMBDJOH *O POF PG UIFTF ²NPEFSO CPJMFST³ NBEF JUT XBZ UP &OEFSCZ 'JOL GVFM UIBU JT JNQPSUFE PJM HBT .BDIJOF IBT JOTUBMMFE B ,0# #0*-&3 QSPQBOF UP UIF DPNNVOJUZ XJUI MPXFS DPTU MPDBM GVFM XPPE DIJQT TBXEVTU ,0# JT NFNCFS PG UIF 7*&44."// QFMMFUT (3061 GSPN "VTUSJB UP IFBU UIFJS TR GU QMBOU XJUI XPPE DIJQT 3FMJBCJMJUZ #JPNBTT UFDIOPMPHZ JT NBUVSF "GUFS FYQFSJFODJOH UIF CFOF¾UT PG BOE SFMJBCMF XJEFMZ VTFE JO NBOZ .PEFSO FRVJQNFOU UP QSPEVDF IFBU UIJT BVUPNBUJD XPPE DIJQ CPJMFS GSPN CJPNBTT IBT CFFO BWBJMBCMF 'JOL .BDIJOF TUBSUFE UP JNQPSU NPSF BQQMJDBUJPOT JO &VSPQF BOE BSPVOE UIF XPSME PO UIF &VSPQFBO NBSLFU GPS PWFS PG UIFTF XPPE CPJMFST BOE CFDBNF ZFBST UIF TBMFT BOE TFSWJDF BHFOU GPS ,0# 4FDVSJUZ #0*-&34 JO $BOBEB 4JODF UIFO UIF 8F NJHIU KVTU IBWF UP ²QVMM PVS IFBE ,0# #0*-&34 IBWF CFFO JOTUBMMFE JO 4FDVSJUZ PG TVQQMZ JT BO JNQPSUBOU PVU PG UIF TBOE³ BOE TUBSU MPPLJOH DPOTJEFSBUJPO #JPNBTT TZTUFNT TDIPPMT JOEVTUSJBM QMBOUT IPTQJUBMT BU IPX XF DBO BQQMZ NPEFSO XPPE HSFFOIPVTFT BOE PUIFS BQQMJDBUJPOT CBTFE PO MPDBMMZ NBOBHFE SFTPVSDFT IFBUJOH UFDIOPMPHZ JO B HSFBUFS XBZ QSPWJEF NPSF FOFSHZ TUBCJMJUZ ,0# #0*-&34 IBT CFFO POF PG UIF JO #SJUJTI $PMVNCJB 8F BMM BHSFF TIFMUFS VTFST GSPN QSJDF TIPDLT BOE NPTU JOOPWBUJWF QSPWJEFST PG XPPE UIBU XF EPOµU MJLF UIF JODSFBTJOH FTDBMBUJOH QSJDFT BTTPDJBUFE XJUI ¾SFE IFBUJOH TZTUFNT GPS BMNPTU FOFSHZ QSJDFT UIBU XF EPOµU MJLF UP PUIFS FOFSHZ TPVSDFT BOE BT XFMM BT ZFBST 5IF DPNQBOZ IBT SFDFJWFE CF EFQFOEJOH PO UIF BWBJMBCJMJUZ PG FOBCMF MPDBM JOTUJUVUJPOT UP TUSFUDI OVNFSPVT BXBSET GPS JUT JOOPWBUJPOT JNQPSUFE GPTTJM GVFMT BOE UIBU XF SFEVDFE CVEHFUT FWFO GVSUIFS JO UIF FOWJSPONFOUBM TFDUPS 5IF EPOµU MJLF UIF GBDU UIBU PVS BJS RVBMJUZ FNJTTJPOT PG UIF ,0# #PJMFST BSF 8FBMUI $SFBUJPO JT HFUUJOH XPSTF QSPHSFTTJWFMZ XFMM CFMPX UIF GFEFSBM BOE QSPWJODJBM 6TJOH CJP NBTT DBO IBWF B QPTJUJWF TUBOEBSET 'JOL .BDIJOF JT FRVJQQFE ²,FFQJOH UIF FOFSHZ EPMMBST BU IPNF³ #JPNBTT FOFSHZ TZTUFNT DBO CF B NBKPS JNQBDU PO UIF BJS RVBMJUZ *G CJPNBTT UP QFSGPSN FNJTTJPO UFTUT PO UIFTF SFQMBDFT PJM PS DPBM 40Y TVMGVS PYJEF CPJMFST BOE UIFSFGPSF JT BCMF UP TIPX DBUBMZTU JO DPNNVOJUZ XFBMUI DSFBUJPO CZ EJTQMBDJOH JNQPSUT VTJOH MPDBM FNJTTJPOT BSF DVU TIBSQMZ CFDBVTF UIFTF PVUTUBOEJOH SFTVMUT UP FBDI SFTPVSDFT BWPJEJOH XBTUF EJTQPTBM XPPE DPNCVTUJPO QSPEVDFT WJSUVBMMZ DVTUPNFS PO TJUF DPTUT DSFBUJOH KPCT BTTPDJBUFE XJUI VTF OP 40Y PG MPDBM GVFM TPVSDF BOE HFOFSBUJOH OFX &DPOPNJDBMMZ BUUSBDUJWF JT UP TXJUDI "DDPSEJOH UP UIF TUBOEBSET PG UIF 6 4 UP CJPNBTT IFBU FTQFDJBMMZ GPS CVTJOFTT JODPNF &OWJSPONFOUBM 1SPUFDUJPO "HFODZ DPNNFSDJBM JOEVTUSJBM JOTUJUVUJPOBM 5IF &OWJSPONFOU JOEVTUSJBM TJ[FE XPPE CPJMFST QSPEVDF BOE EJTUSJDU IFBUJOH BQQMJDBUJPOT MFTT /0Y OJUSPHFO PYJEF FNJTTJPOT #JPNBTT FOFSHZ TZTUFNT BSF CBTFE %FQFOEJOH PO UIF BQQMJDBUJPO UIF UIBO DPNQBSBCMF TZTUFNT CVSOJOH PO B SFOFXBCMF SFTPVSDF BOE BSF GPTTJM GVFM DPOTVNQUJPO NBZ CF
DPOTJEFSFE $0 DBSCPO EJPYJEF OFVUSBM %JTQPTBM PG XPPE XBTUF XIJDI PGUFO DSFBUFT MPDBM QPMMVUJPO QSPCMFNT DBO CF SFEVDFE BOE JOTUFBE IFBU DBO CF QSPEVDFE 5IF MBOE¾MMT BSF ¾MMJOH VQ GBTU FOPVHI XF EPOµU OFFE UP TIJQ IVOESFET PG UPOFT PG QFSGFDUMZ HPPE ²GVFM³ UP UIF EVNQ TP JU DBO CF CVSJFE *OTUFBE PG CVSOJOH MBSHF TMBTI QJMFT JO UIF CVTI XF DPVME VTF UIF DIJQQFE XPPE UP IFBU PVS DPNNVOJUJFT BOE BMTP MPXFS UIF OFHBUJWF JNQBDU PO UIF MPDBM BJS TIFE BT XFMM BT MPXFSJOH PVS FOFSHZ CJMMT $BOBEJBO QFMMFU NJMMT QSPEVDF NPSF UIBO UPOFT PG IJHI RVBMJUZ QFMMFUT QFS ZFBS 0WFS PG UIFTF QFMMFUT BSF CFJOH TIJQQFE UP &VSPQF *U XPVME CF B HSFFOFS PQUJPO GPS UIF FOWJSPONFOU BOE GPS $BOBEB T FNCBSSBTTJOH SFQVUBUJPO BT POF PG IJHIFTU QFS DBQJUB QSPEVDFST PG HSFFOIPVTF HBTFT JO UIF XPSME UP NBLF VTF PG UIF QFMMFUT JO DVUUJOH FNJTTJPOT BU IPNF BOE OPU UP TIJQ UIFN IBMG XBZ BSPVOE UIF QMBOFU 8F IBWF B EFTQFSBUF OFFE GPS B $BOBEJBO TUSBUFHZ UP CFUUFS UBQ JOUP UIF DPVOUSZ T JODSFEJCMF BOE MBSHFMZ VOBQQSFDJBUFE CJP FOFSHZ QPUFOUJBM 8F IBWF UIF XPPE UIF UFDIOPMPHZ BOE XF IBWF BUUSBDUJWF HPWFSONFOU JODFOUJWFT BWBJMBCMF PO UIF GFEFSBM BOE QSPWJODJBM MFWFMT 8)"5 *4 )0-%*/( 64 #"$, 'JOL .BDIJOF *OD JT B TVQQMJFS PG IJHI RVBMJUZ NBDIJOFSZ GPS UIF CJP FOFSHZ JOEVTUSZ 8F PGGFS OFX SFWPMVUJPOBSZ UFDIOPMPHJFT UIBU IBWF B QPTJUJWF JNQBDU PO JOUFSFTUT TVDI BT HMPCBM XBSNJOH BMUFSOBUJWF IFBUJOH BOE TVTUBJOBCJMJUZ
PRIVATE/INTIMATE SPACES • STATE-OF-THE-ART AV EQUIPMENT • LCD PROJECTION WITH ROOF TOP SCREENS
Osoyoos caters to every single occasion. The rich beauty of this South Okanagan paradise, combined with a capacity for over 400 people, makes Osoyoos the perfect choice for your next important gathering or event. YEAR-ROUND VENUES WITH UNIQUE DESERT/CULTURAL/ABORIGINAL EXPERIENCES Offering spousal programmes, golf, spa, wine, cultural and historical tours!
Pursue the experience at destinationosoyoos.com
HIGH DEF. 5.0 SURROUND SOUND • DVD/CD/MP3 CAPABILITIES • NATURAL AND ADJUSTABLE LIGHTING
Okanagan Nation Hatchery & Administration Building The Okanagan Nation proposed Fish Hatchery/Administration building is scheduled to begin in the spring of 2010 in Penticton. The building will have four floors and over 33,000 sq ft of interior space. The ground floor is dedicated to a Sockeye rearing hatchery which will have the capacity to produce up to 8 million Sockeye annually. The upper three floors of the building will contain laboratory spaces and general administration offices as well as boardrooms and a library/archive facility. The project is being designed to a LEED Silver standard and will utilize solar, geothermal and other forms of “Green� energy to offset its consumption of traditional energy sources. The project is scheduled to be completed in September of 2011 and the ONA now wishes to begin to attract interest from individuals, companies and organizations who would like to become involved.
The project will create opportunities for many kinds of suppliers and construction trades and interested parties are encouraged to contact geoff@okanagannation.com to pre-qualify as potential suppliers/contractors for the project.
syilx
fromtheeditor Perils of Public Profits by Devon Brooks
In the hot aftermath of the financial meltdown and news of lavish new bonuses bestowed on a number of public companies in the U.S. I can’t help but compare the way reward and risk is handed out to those who operate public companies and those who run their own private enterprises here in the Okanagan. At first blush, it seems ridiculous. Where is the common ground between someone who owns and runs a business on Main Street, Okanagan, with seven or eight employees and the high-flying wizards who run globe-spanning, mega-corporations with millions of shareholders? The difference in scale is overwhelming. Here at the Okanagan Business Examiner, we talk to amazing business people who have great ideas and innovative products or services, yet I can think of dozens who were in business and aren’t today. It is a sad thing to see hard working people lose their businesses and money, but it is the essence of competition that someone else may take away their customer and revenue. For most of my life I have worked as an employee. I have always known that in a couple of weeks I would be presented with a paycheque.
I work hard, and I get paid for putting together this magazine. The Business Examiner’s owner can work hard and not get paid if sales are down, but he still has to pay me. If the magazine prospers he can hope for a payoff that will dwarf my regular paycheque, but this is a gamble. He could end up bankrupt, the business failed, which is why I don’t begrudge him the extra money he’ll make for taking the risk.
companies never failed anyone could run them. I also feel for the people at the bottom. Yes, even those in the auto unions. If we think it is fair to pay a CEO millions in take-home pay, stock options, generous pensions and a golden parachute, how can we justify cutting the pension of a retired auto worker who is depending on that in their old age?
Sure, those senior staff, are in a tough world. They deserve big cheques for their skills, their MBAs, their chutzpah and their savvy.
And if we believe the rank and file need to take a 25% pay cut for a company to remain profitable, or thousands of layoffs, how can we justify bonuses to CEOs who last year led these same companies to the brink of financial destruction? Especially when we intervene to prevent capitalism from doing what it is supposed to, which is take down failed giants.
Most clawed their way up the ladder of success, but at the end of the day, they are more like me than my boss. They get a paycheque – frequently a very big paycheque – that dwarfs what I receive, and what my boss is likely to receive.
When I heard Obama was putting in place a pay czar to oversee the pay packages for top management of companies that received a bailout, I can’t help thinking it is a band aid on a recurring problem, and it won’t work.
Unlike my boss, if their companies fail, most float away with enormous golden parachutes promising soft landings.
All of us are greedy, at least on occasion. Given freedom over our own financial compensation, most of us will slip sooner or later and take what we can from the cookie jar. If nothing stops us, it will become a habit.
When I hear that the world’s largest companies, like the banks that failed last year, are now paying huge bonuses to upper management, I don’t feel anywhere near as complacent.
I understand that too. Running a big company involves taking risks and if
Repeated often enough greed moves from being a shame, to a perquisite, and then a right when oversight is lacking and accountability forgotten. I have a solution. Whatever a public company pays its CEO it should be some multiple of what it pays its lowest paid, full time employee. Let’s say it’s 100. So if the janitor gets $25,000 a year to live on, then the CEO maxxes out at $2,500,000. No perks, no bonuses beyond the necessary expense account to run the company. If the board believes that a CEO deserves a 10% increase or bonus, so does the janitor and everyone else because you’d have to believe the company is doing well. Similarly if tough times require pay cuts, then everyone shoulders the same proportionate load. If 10% of employees are to be cut, senior staff, who have fewer people to manage, take a 10% pay cut. Boards would be much more reluctant to give unjustified rewards and temporize their willingness to hand out large pay cuts. I don’t believe too many CEOs will embrace this scheme anytime soon, but it is infinitely fairer than the unrestricted greed in place now. Devon Brooks is the managing editor of the Okanagan Business Examiner.
December 2009 Okanagan Business Examiner
|
33
Castanet turns 10
Castanet, the ubiquitous news service of the Okanagan turned 10 last month. The company reports it now receives 5.6 million hits every month, which, according to ComScore, makes Castanet the number one site for general news in British Columbia. Beginning numbers in 1999 gave no hint that the Internetbased news service would swell into the local titan it is today. It took two years for the the company to get 10,000 hits a day. Hits and visits are not the same thing. A hit is registered if someone
Movers&S looks at a page, even if for only a few seconds, whereas a visit requires a longer stay indicating the viewer is reading or viewing something in depth. In 2009 Castanet receives 160,000 visitors each week, some for news, 32,000 others to make use of the free classified service, also the largest in the Okanagan. Castanet also reprints two stories each month from the Okanagan Business Examiner.
By late 2008 the development was forced to seek court protection from creditors, which was granted by the Supreme Court of B.C. Now, according to a report in the Vernon Morning Star, two buyers are interested in taking over the property. One is a Hong Kong investment firm and the second is an unnamed company. The purchase offers must be looked over by the court before any sale can go ahead.
Stephen Peters originally had the idea for opening Bullseye Packaging because designing and packaging in the Okanagan took too much time and money. The reason: because materials had to be shipped considerable distances before they could be custom packaged. No word from Bullseye on how it can make that trip less expensive.
Attack of the Mad Squid
The Rise is Taken Up (probably)
The Rise, the enormous housing and golf course development being built in the west end of Vernon ran into financial difficulties in 2008 brought on by the recession and real estate slow down.
Recession hits Okanagan manufacturing again
Bullseye Packaging is closing up its Kelowna shop save for a small sales office, consolidating operations in its Chilliwack facility.
Long time resident and journalist Shelley Nicholl has decided to expand her line of work by creating her own media and public relations firm, Mad Squid. Nicholl, who is still active as a columnist in the Capital News, will take on writing and editing,
Nicholl
production of publications, newsletters and getting the word out. Her new site is www.madsquidmediapr.com. Nicholl says the odd name came from combining one of her daughter's name (Madison) with her second daughter Sydney's nickname of Squid.
Okanagan Biztex Inc. is a fresh new alternative to providing your Information Technology requirements & to relieve you of the stresses of managing the problems associated with computers. Let us manage the problems and frustrations of IT, leaving you to manage what you do best, YOUR business. We are a small company today serving small to medium size businesses, ranging from two users to a collocated network of 70+ users. We have set the standards of our technicians very high; to give you the support that you demand to keep your business running to the standards you expect.
The Okanagan has been going to work with us since 1995
Okanagan Staffing Services Inc.
Your Temporary and Permanent Placement Specialists Visit our website@ www.okanaganstaffing.com Phone: 250.717.0506 Fax: 250.862.5181 34
| www.businessexaminer.ca December 2009
T 250.300.7551 | F 250.491.0266 | E jdawson@biztex.ca
Shakers Vernon scores with CFIB
The Canadian Federation of Independent Business released its annual ranking of ‘Canada’s Top Entrepreneurial Cities’ in late October. The list is put together using 12 indicators based on information coming from the CFIB’s 105,000 member businesses from across the country and various statistical sources. The indicators factor in business start-ups, businesses per capita, industry diversity, the numbers of self-employed, business expectations, hiring expectations, overall assessment of business in the community, local government costs and sensitivity to business concerns, local regulations, tax ratios and whether or not there is “onestop shopping” to set up a business. The top ten scores include no communities from B.C. The top ten positions are dominated by Saskatchewan and Quebec, with Alberta getting a mention. Saskatoon is number one, scoring 64.2 out of a possible 100. The top ranking Okanagan municipality is Vernon, which scores 55.9, giving it the highest honours for British Columbia and number 15 across the country. At the same time Vernon took a hit in a CFIB report that criticized the city for having a tax haul growing much faster than the population. Vernon’s Mayor Wayne Lippert says that part of the report doesn’t take into account money siphoned off to schools, the regional library board, the regional district and expenses off loaded by the province, all of which are outside of Vernon’s control. The next B.C. municipality to score is Kelowna at #19, which gets a tie ranking with
St. John’s Newfoundland with a score of 54.6. Penticton comes in at #57 with a score of 46.1.
gilmore
Accountants add to staff
Both Grant Thornton and BDO Dunwoody announced new faces and, in the case of BDO, a slew of promotions. Chartered Accountant Martin Rutherford moved from the Grant Thornton’s New Glasgow office in Nova Scotia to its Kelowna branch as a partner. Rutherford worked for clients in industry, the banking sector, real estate, manufacturing, not-for-profits and agriculture. BDO Dunwoody also brought in a new C.A. as a partner when Mike Gilmore joined BDO's Kelowna office. Gilmore’s experience includes local government, finance, education, not-for-profits and small business work. In addition, BDO announced that Sinead Scanlon was promoted to manager while Markus Schrott, Patti Tattersall and Britt Vig have been named senior managers.
Kelowna Chamber honours city’s best
The Kelowna Chamber of Commerce’s ‘2009 Business Excellence Awards’ were presented to six recipients. Robert Fine of the Central
Okanagan Economic Development Commission was named 2009 Business Leader of the Year. Jason Broome’s Kelowna Regional Fertility Centre is the ‘Rising Star’ of 2009. The ‘Small Business Award’ went to Modern Pur Air owned by Don and Lane Martin, while the ‘Mid-size Business’ is JDS Energy & Mining, owned by Jeff Stibbard. CTQ Consultants, owned by Matt Cameron, took home the ‘Large Business Award’ and the ‘Young Entrepreneur of the Year’ went to Mark and Todd Regier, who own Prestige Collision. The ‘Community Impact Award’ was presented to Dona Moore, executive director of the Kelowna Art Gallery. Moore recently announced that she will step down as the executive director of the Gallery as of next April.
Arbitrator sends fruit handlers packing
A binding arbitration by mediator Mark Atkinson has come down largely on the size of Okanagan Tree Fruit Cooperative (OTFC) and left members of Local 247 of the United Food and Commercial Workers’ Union waiting for at least three years before wage freezes will be looked at again. The contract runs for five years, and contains a clause allowing the wage issue to be looked at again in the fourth year if financial conditions for the orchardists have improved. The wage freeze will affect some 500 members. Following the closure of the Naramata and Summerland packing houses, operations will be consolidated in the Oliver and Kelowna facilities. Part of the arbitration agreement is that the remaining packinghouses
will run with second shifts that do not require “over time” pay above the normal pay rates. Porrelli lands Fish
Nancy Fish has moved over to the Porrelli Law group in West Kelowna from Spagnuolo & Company, a legal firm specializing in matters of real estate law. Fish’ expertise includes the real estate sector and wills and estates. Fish attended law school in Alberta and B.C. where she graduated with her law degree from UBC in 1991. She was called to the bar the next year.
Summerland’s Wharton St. asks for extension
The builder of Summerland’s Wharton Street development has asked for another extension on the development because of a tougher real estate market. The development consists of several buildings, some as high as seven storeys, which will include residential condominium and commercial units. Summerland wants to use some of the space to update and expand its library, which is too small for the uses demanded of it. Mike Rink of New Future Development Group asked for a one year extension from its current deadline of January 15, which Mayor Janice seems inclined to support. She blames the delay on the soft market. As of the time of writing the town council had not yet decided on whether it would allow the extension or not.
Community Futures in Penticton parties on
When Community Futures’ Penticton office realized it was turning 25 years old it decided to have a party to celebrate. Over a hundred people showed up for the event, which included a birthday cake. GM Mary Ellen Heidt says the organization has helped 900 plus people start up more than a thousand new businesses that have created 2,500 jobs in 11 different communities from Penticton to Princeton. Some of the $22 million leant to entrepreneurs over that time has been used to start up wineries, small manufacturing, clothing stores, medical research and hair salons. Left to right: Jaymie Atkinson, Princeton (Board of Directors Chair), Chris Scheuren, Osoyoos (Director), Jane Coady, Penticton (Director), Jack Lank, Penticton (Director), Mary Ellen Heidt (General Manager), George Stayberg, Penticton (Director), Carla Wright, Summerland (Director), Linda Larson, Oliver (Director), Rory McIvor, Penticton (Director) and Roy Phillips, Penticton (Director) celebrate 25 years for Community Future Okanagan Similkameen.
Wharton St.
Labour Relations, Employment and Human Rights Law
The Importance of Proactively Managing Employees with Disabilities By veronica ukrainetz
Veronica M. Ukrainetz Providing strategic legal representation to unionized and non-unionized employers throughout the Thompson Okanagan
Vernon, BC Telephone: 250.558.3393 www.ulclaw.ca
KELOWNA
BUSINESS NETWORK
For further information, please contact: Darlene@signaturenetwork.ca or or visit our website at www.signaturenetwork.ca
INTEGRITY IS THE STRENGTH OF OUR MEMBERSHIP
36
| www.businessexaminer.ca December 2009
In a recent decision of the B.C. Human Rights Tribunal Boehringer Ingleheim (Canada) Ltd. (BICL), an international pharmaceutical company, was ordered to pay to Lynda Kerr, a pharmaceutical sales representative with a vision impairment, damages of over $387,000. Thirty thousand of this award was for “injury to dignity” damages. The rest was to compensate Lynda for her wages lost as a result of BICL's four year failure to return her to work with accommodation of her vision impairment. Lynda did not always have a vision impairment. The first years she worked for BICL were notable for her successes. She was consistently ranked as one of the top salespeople in B.C. and in the top 10 nationally. In 1999 Lynda noticed unusual difficulties with her vision and was diagnosed with an aggressive form of cataracts. Initially, her employer accommodated the reading and driving challenges presented by her deteriorating vision. In May 2000 when Lynda considered resigning, her employer instead suggested she go on disability leave. Lynda was initially grateful to her managers for their support, but when her condition stabilized and she sought to return to work, she was put off, time and time again. Lynda could not understand why this was, as she throughout she was able to daytime drive and, with the help of adaptive equipment, read. By October 2003 the benefits provider terminated Lynda’s benefits, having decided that she was able to work as a sales representative. BICL however, had taken no real steps towards returning Lynda to work, so she found herself without any income. In late 2004, having had her latest enquiries met with silence, Lynda retained me. Over the next two years, Lynda underwent intensive assessments while also pursuing a Human Rights complaint. Just before her Human Rights hearing was to begin and before the last assessment was in,
BICL surprised her with a return to work program. However, BICL had her working through her hearing, she had still not had a direct discussion about her needs with her employer, and the adaptive equipment suggested by CNIB had not even been trialed. In September 2006 during her hearing, Lynda resigned, feeling “disappointed, humiliated and discouraged.” On June 9, 2009, the Tribunal concluded BICL had discriminated against Lynda: "Despite the fact that Ms. Kerr was a high performing employee, she was ultimately treated like a person with little or nothing to contribute to the workplace because she was disabled.” This decision serves as a reminder to employers that making assumptions about an employee’s disability can have profound consequences. Once a disabled employee makes her employer aware that she wishes to work, the employer has an obligation to actively explore various ways of enabling the employee to work. This exploration includes looking at possible options, gaining an understanding of the employee’s limitations and determining what, if any adaptations, might be required to enable the employee to perform the jobs available. Do not limit the exploration to the employee’s current job; consideration should take into account any available jobs. Employers who proactively manage employees with disabilities will reap the benefits of doing so. Employees who want to work will reward their employer with a strong sense of commitment and loyalty. Employees who do not want to return to work will not be able to malinger. And employers will minimize the possibility of being called to account by Human Rights Tribunals. Veronica Ukrainetz is the principal of the Ukrainetz Law Corporation in Vernon, B.C. Her website is www.ulclaw.ca.
Employee Retention: A crucial business priority By Dawn McCooey
Did you know that up to 40% of net profits can be eaten up by employee turnover? What if your competition has all of the best talent? Most employers say employees are their most important asset, yet less than 6% of employees feel the employer treats them as the most important asset. In her recent presentation in Kelowna, renowned economist Dr. Roslyn Kunin suggested that over the next five years, bosses will have to learn how to be good bosses if they want to compete for the best talent in a shrinking market. If you don’t know where to start here’s an excerpt from my justreleased book, Keeping Good Employees on Board: How you see yourself and the level of care and respect that you have for yourself is often reflected in those with whom you work most closely. This is the Kouzes and Posner practice (authors of the best-selling The Leadership Challenge) referred to as “modeling the way.” Managers who have healthy levels of positive self-regard may see this reflected in high levels of staff retention. Steven J. Stein in his book, Make Your Workplace Great says: “High self-regard leaders (who know their strengths and weaknesses) project the kind of confidence (and humility) that is more likely to make people want to stay with the organization.” But what if you’re not there yet? What does a captain do to learn these things? Firstly, the best news is that high self-regard and self-awareness are learnable. Just as you may offer coaching services to your employees for their selfdevelopment, so too can a captain develop these attributes through management coaching. Management coaching may be provided on-site, or off-site, via telephone, or inperson. Coaching in the corporate world and in the small business world is available through certified coaching consultants and consulting companies. Right Management and Towers-Perrin are just two examples
of leading companies providing coaching services designed to enhance organizational performance. Before embarking on a coaching program be sure to take the time to identify what you are hoping to achieve. What tangible results are you seeking? The more specific your goals for coaching, the easier it will be to help you to decide on an appropriate match. Not surprising, professional coaching companies can help you to quickly realize your return on investment. Coaching improves your performance; it will also improve your bottom line. Sometimes, just the self-awareness that changes happen, first from within -can move you ahead in becoming a better boss. Ask questions of your staff. Yes, it takes an enormous amount of courage to get a rating on how you’re doing, but it’s courage well spent in the short term and especially in the long term. There’s great talent out there and when the economy turns around, these talented people will not only keep your ship afloat – they’ll be the power that propels you ahead of your competition. Take the helm, keep your good employees on board, and have some fun on this journey. Bon Voyage. Keeping Good Employees On Board is published by Morgan James Publishing, New York For more information on Employee Retention visit www.EmployeeRetentionTools.ca Dawn McCooey lives in Victoria, B.C. and works as a Business Advisor for Women's Enterprise Centre. She obtained a Master of Arts degree in Leadership and Training at Royal Roads University where she is an Associate Faculty. Dawn also managed her company of up to 32 employees and was voted “Best Boss in Victoria” by the Vancouver Island Business Examiner.
Keeping
good employees onboard
Paranoia, Pa By Robert Smithson
Of all the topics human resources professionals have to wrestle with, none is more compelling at the moment than the H1N1 flu pandemic. The challenge faced by employers is in deciding how to address a situation that has the potential to temporarily decimate their work force. What position should they take on whether people should be coming to work if they are not feeling well? How do they balance the need for a healthy workforce with the risk that some people will exploit the opportunity to take time off? Do they
automatically send home anyone diagnosed with the flu? How do they distinguish between the seasonal flu and the H1N1 virus (and does that distinction matter)? Can they somehow compel employees to accept the vaccination? What steps can they take to try and fill the temporary holes that the flu will create in their workforce? If you came here looking for answers to all these questions, I regret to inform you that you’re going to leave disappointed. The questions surely outnumber the answers for most employers. Some forward-thinkers
Robert O. Levin - " 8 0 ' ' * $ &
have in place an emergency plan to deal with a pandemic situation, but I’d be shocked to hear that more than 1% of employers fall within that category. Most are likely just hunkering down and hoping they get through the worst of the flu season without too much collateral damage to their business. If there’s security in numbers, they can take some comfort in the fact that almost everyone is facing the same situation. It is extremely doubtful that
employers have the legal authority to compel their employees to receive a vaccination. I can imagine the opposite might be true in some highly health-sensitive settings, such as hospitals, but there certainly is no general management right to compel employees to undergo invasive medical procedures. There is a certain degree of paranoia surrounding flu shots and I’ll wager that the national H1N1 campaign will have difficulty exceeding a 50% or 60% vaccination rate. It’s fair game, however, for employers to make efforts to try and entice their
Trade-Marks Industrial Designs
Experienced Legal Counsel
Trade Secrets
& Technology Transfer
Copyright -EMBER "# 4RIAL ,AWYERS !SSOCIATION
Patents
DPNNFSDJBM MJ U JHBU JPO
Wesley C. Shields
Heidi Taylor
250-869-6017
250-869-6014
B.A. (Hons), M.P.A., L.L.B.
B.A., L.L.B.
„ "USINESS )SSUES „ #ONTRACTS „ %STATE ,ITIGATION „ #ONSTRUCTION „ "UILDERS´ ,IENS „ 0ROPERTY
SPCFSU!SMFWJO DPN 'BY %PMQIJO "WFOVF ,FMPXOB 7 : 4 -BOENBSL #VJMEJOH
XXX SMFWJO DPN 38
| www.businessexaminer.ca December 2009
PRACTICE RESTRICTED TO INTELLECTUAL PROPERTY LAW L A W C O R P O R AT I O N R E G I S T E R E D P AT E N T & T R A D E -M A R K A G E N T P H O N E : (250) 418-3250 F A X : (250) 418-3251 T O L L F R E E : 1-877-943-9990 E-M AIL : gordonthomson@shaw.ca
- Commercial Litigation - Family Law - Land Development - Estate Litigation 2nd Floor, 215 Lawrence Avenue, Kelowna, BC Phone 250-762-4222 . Fax 250-762-8616 www.fhplawyers.com wshields@fhplawyers.com . htaylor@fhplawyers.com
Pandemonium and Pandemics employees to succumb to the needle. There are all kinds of ways to do that. Be creative – consider arranging for in-house flu shots to make it easy for them. Invite their immediate family members to come along and get a shot, conditional on mom or dad getting one, too. Go crazy and offer your employees a bonus if they’ll get the shot – maybe a paid day off to be taken later in the year - it might end up saving your business plenty in foregone sick leave. Employers can dictate that ill
employees should stay out of the workplace. It’s a sign that employers aren’t yet taking the H1N1 situation entirely seriously that people who have been diagnosed are still at work – I’ve witnessed it myself. It seems like common sense that once someone has been diagnosed with H1N1 (or the seasonal flu), he or she should be told to stay home until a physician indicates the risk of infection has passed. If people start calling in sick just because they are feeling a little under the weather or even because
they know that this is a perfect opportunity to steal a day off that’s the point at which the flu has the potential to create pandemonium in the workplace. Each employer needs to determine the preferred balance somewhere between pressuring employees to come to work and telling them to stay home. It’s no good to create a stampede by telling people to stay home at the slightest sign of a sniffle but, on the other hand, there’s no point having infectious people hanging around the office.
The H1N1 (and seasonal) flu season won’t last forever, so a short-term plan to keep operations running may be all that’s necessary. Robert Smithson is a partner at Pushor Mitchell LLP in Kelowna practicing exclusively in the area of labour and employment law. For more information log onto www. pushormitchell.com. This subject matter is provided for general informational purposes only and is not intended to be relied upon as legal advice.
A s k t he Pr o f e s s i o n a l s
Michael Dias
Owner
Windows 7 is here and here to stay. Most of you have Vista and want to do the jump to Windows 7. Here are some tips before the upgrade: 1. Backup all data and if possible backup to an external source (backup hdd) it will make the upgrade faster. 2. CHECK, CHECK, CHECK for compatibility problems. Just because it worked on Vista doesn’t mean that it will with Windows 7 3. Take this opportunity to ditch old software. May be expensive but you will know it will be 7 compatible and you will have the latest software offerings. 4. Upgrade you hard drive. This will give you more space and faster access to your files. XP User: Be warned. People that skipped the vista upgrade with have a tougher time doing the upgrade. My recommendation would be a full version OEM that we have available in our store.
107 - 3640 Gosset Road, Westbank, BC 250.707.1153 www.discoverycomputers.com
C ER E 0 FF I P $OG V I T U C & XE UR 4O $ ANINE INING FOR YO A TIVE 4R 0AWSI
"DUJWF $BOJOF 5SBJOJOH $SFBUJOH )FBMUIZ &OUFSUBJOJOH 6OJUZ #FUXFFO #FTU 'SJFOET %BOB &LMVOE $ 0 5 $ . 5 $ 7 " December 2009 Okanagan Business Examiner
|
39
WouldWould you you Would you rather make rather make rather make excuses or or excusesexcuses or sales? sales? sales? Would you
$PSQPSBUF &WFOUT $ BUFSJOH
:PVS 8FTUTJEF $POOFDUJPO UP UIF 4FB
0VS GVMM 4FSWJDF DBUFSJOH QSPWJEFT UIF žOFTU PG EJOJOH GPS DPSQPSBUF XFEEJOHT BOE TPDJBM FWFOUT XJUIPVU SFNBSLBCMF DPTUT &YQFSJFODF BXBSE XJOOJOH &YFDVUJWF $IFG .JLF :PSLF )BSEZ¾T EB[[MJOH NFBMT
$PNF JO UP 'JOUBTUJDMZ 'SFTI 5PEBZ
Sandler Sandler Training utilizes reinforcement through Training utilizes continualcontinual reinforcement through ongoing training and individual coaching SM
Johnnot Glennon sessions only to help you learn but also to ensure your success. With over 200 training centers
ongoing training and97support, individual coaching sessions not only to 109B-worldwide 3677 Highway Northyou won’t fail‌because to provide we won’t let you.
rather make excuses or sales?
Kelowna, BC, V1X 5C3
Glennon 250-765-2047 / F: John 866-314-3410 helpP:you learn but also to ensure your success. With over 200 109B- 3677 Highway 97 North
Sandler TrainingSM utilizes continual reinforcementwww.glennon.sandler.com ongoing training Kelowna, BC, V1X 5C3 and individual coaching trainingthrough centers worldwide to provide support, you won’t fail... 'JOUBTUJDMZ 'SFTI QSPVE UP CF TFSWJOH UIF 0LBOBHBO 250-765-2047 F:Sandler 866-314-3410 S Sandler Training Finding Power InP: Reinforcement (with design)/and Training are service marks of Sandler Systems, Inc. Š 2008 Sandler Systems, Inc. All rights reserved. sessions not only to help you learn but also to ensure yourwww.glennon.sandler.com success. With over 200 training centers because we won’t let you. S Sandlerwe Training Finding Power In Reinforcement (with design) and Sandler Training are service marks of Sandler Systems, Inc. Š 2008 Sandler Systems, Inc. All rights reserved. worldwide to provide support, you won’t fail‌because won’t let you. John Glennon 109B- 3677 Highway 97 North Kelowna, BC, V1X 5C3 P: 250-765-2047 / F: 866-314-3410 www.glennon.sandler.com
John Glennon Sandler Training utilizes continual reinforcement through ongoing training and individual coaching BN UP QN .POEBZ UP 4BUVSEBZ S Sandler Training Finding Power In Reinforcement (with design) and Sandler Training aresessions service marks of Sandler Systems, Inc. also Š 2008 Sandler All rights reserved. not only to help you learn but to ensure yourSystems, success.Inc. With over 200 training centers 109B-3677 Highway 97 North worldwide to provide support, you won’t fail‌because we won’t let you. 3PTT 3PBE 8FTU ,FMPXOB # $ 1IPOF Kelowna, BC V1X 5C3 John Glennon &NBJM žOUBTUJDMZGSFTI!MJWF DB 109B- 3677 97 North P: Highway 250-765-2047 F: 866-314-3410 Kelowna, BC, V1X 5C3 P: 250-765-2047 / F: 866-314-3410 XXX žOUBTUJDMZGSFTI DPN www.glennon.sandler.com www.glennon.sandler.com SM
S Sandler Training Finding Power In Reinforcement (with design) and Sandler Training are service marks of Sandler Systems, Inc. Š 2008 Sandler Systems, Inc. All rights reserved.
40
| www.businessexaminer.ca December 2009
Lookintothesoleof yourpotentialemployee by Lorraine McGrath
When interviewing a potential employee, check her resume thoroughly, stare her in the eye, shake her hand for firmness and then forget all that and look straight at her shoes. Trust me; the last move is all you need. Don’t worry about fancy interviewing techniques. Drop the personality testing. Don’t write a big cheque for a recruiting company. Everything you have to know about the person you are interviewing will be right there on her feet under the table. Yes, like Cinderella’s glass slippers, the shoes are the key to the personality. Try it. It works. It’s a test I’ve done many times. Clean, new, spit-polished shoes? They’re a definite sign of someone who likes boundaries, follows instructions well, is detailedoriented and is always proud of his work. Slot this person in a technical, financial or duty-oriented role. Untied laces? They’re likely a sign of a creative, innovative person who is great in the laid-back artistic department, but won’t be bound to a stiffer bureaucratic environment. No socks? That means the candidate prefers outdoor jobs and physical labour. If you have a job that’s outside and requires lots of movement, this is your person. The shoe theory is also effective for understanding women’s leadership capabilities. Here’s some “pointers.”
• Wedgies indicate a very, well-balanced individual, who has a practical side, but still likes to be somewhat stylish. She’s management material. • High-heel wearers make great sales people because they want to rise above the crowd. • Flats on a woman means “not a leader,” but highly detailed-oriented. The woman in flats would be great as second-in-charge perhaps a controller or office administrator. • Pointed toes reveal a focused and determined woman. Let’s give her the tough job such as process control or customer service manager. • Square toes are for more traditional personalities who will follow the rules and not create waves. These individuals will thrive in your accounting roles. It’s not too likely that you’ll find these variations in an interview; if you do, then take note of these telling signs: • Red shoes are worn by women who aren’t afraid and daring, willing to take some risks. • A woman wearing boots shows practicality if it’s snowing, pizzazz if it’s not. • If a woman is wearing sandals, think hard about commitment here, unless you are in a business where showing toes is important.
Of course, you need to apply this theory to your male candidates: • Cowboy boots – A maverick? Maybe…likely not a team player. • Casual shoes – Content in whom he is, but not willing to move out of his comfort zone. On the other hand, he is likely very creative and outstanding in your technology or innovation department. • Designer shoes – He’s a mover and shaker and wants to move up to the top in record time. • Brown shoes show a man isn’t afraid to step out of the norm and could be more creative. • Black shoes are worn by the straight-forward, know how to get ahead type. • If a shorter man is wearing heals you can be sure he will be constantly trying to outperform. This could be good. While it is interesting to think of people's personalities through their shoes, the main thing to remember is to not judge a candidate by the traditional methods alone. The tools available are great and I have used them often in my hiring. I know it’s important to avoid hiring people exactly like myself and to find those who, instead, complement my skills. Tools can help achieve objectivity.
Remember that people often “perform” differently in interviews than they do in real life and it is wise to look for other clues about the true characteristics of the individual. Spend time with people and watch how they react to different situations; there is a saying: “How you do anything, is how you do everything.” In the end, use all the information available to you, including your intuition, which is often your very best guide. You know how important it is to get the right fit in your shoes. The same is true in your company. And, if the shoe fits…hire it! Lorraine McGrath, MBA, of McGrath Executive, is a strategist, corporate director and advisor to businesses that are driven to succeed. Her achievements in business, community-giving and role-modelling have been recognized with several significant awards including Distinguished Alumni, Athabasca University, Woman of Distinction, Woman of the Year and Honourary Fellow. lorraine@mcgrathexec.ca
C a l e n da r Occupational First Aid Level
Building your Brand
Business After Hours
Business 2 Consumer Expo
1 - Dec. 1, 3, 9, 12, 15, 17, 21, 29
Dec. 9 - Community Futures,
Dec. 16 - Ernie’s Carpentry &
Trade Show
First Response Training,
Penticton
Simple Pleasures Redesign,
Apr. 4-5 - Peachland
An interactive workshop led by Kim Lawton to help define your customers and maximize the effect of your advertising dollar. From 6 to 9 pm. To register call 250-493-2566.
Peachland
Recreation Centre
The Peachland Chamber of Commerce’ monthly networking event from 6 to 8 pm. Call 250-470-9185 for information.
Business After Hours
Internet Business
Dec. 10 - HSBC Bank, West
Strategies, Part 1
Kelowna
Jan. 7 - Community Futures,
The Westbank Chamber of Commerce’ monthly networking event from 5:30 to 7 pm. Co-hosted by Kelly O’Bryans Restaurant. Free for members, $5 for non-members, but non-members need to RSVP at 250-768-3378.
Penticton
This is the Peachland Chamber’s second annual trade show of this nature with both indoor and outdoor venues. There will be 10 workshops of product demos to reach buyers. For more information contact Scott Wilshaw at 250-767-2455 or swilshaw@shaw.ca.
Kelowna
“Occupational First Aid Level 1 is a one day course designed to provide life saving first aid skills to workers in industry by providing training in basic first aid and CPR.” $105 per student. Call 250-762-9023 for information. FoodSafe Level 1 Course Dec. 2 - Wine Country Visitor Centre, Penticton
Valentine Young will teach this all day course starting at 8:40 am. $50. To register or for more information contact Young at 250-490-9300. VWIB Business Luncheon
CCRA Tax Seminar
Dec. 2 - Schubert Centre,
Dec. 10 - Community Futures
Vernon
of the Central Okanagan,
The monthly daytime meeting of Vernon Women in Business runs from 11:30 am to 1 pm. $14 for members, $16 for non-members. More information by e-mail from meetings@vwib.com or go online to http://vwib.com.
Kelowna
Business After Business -
The Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm, this month hosted by Candox Records Management. $5 for members, $15 for non-members. For information e-mail the Chamber at info@vernonchamber.ca or call 250-545-0771.
Dec. 3 - Penticton Lakeside Resort
The Penticton & Wine Country Chamber of Commerce’ monthly networking event from 5 to 7 pm. No cost for members, $20 for nonmembers. For information e-contact the Chamber at 250-492-4103.
An all day workshop to help with tax issues for business. To register call 250-868-2132.
Jan. 14 - Community Futures, Penticton
Vernon
A three hour session beginning at 6 pm covering six basic topics: ‘8 Viral Marketing Techniques’, ‘Directory Submission Pointers’, ‘Driving Traffic to your Website with Signature Files & Autoresponders’, ‘E-mail Marketing Tips’, ‘Affiliate Programs’, and ‘Online Advertising’. Part 1 of this course runs one week earlier on Jan. 7. Run by Charleen Edis from Edis Computers. To register call 250-493-2566.
VWIB Evening Networking Meet - Dec. 16 - Best Western Vernon Lodge
Kelowna
The dinner meeting of Vernon Women in Business starts at 5:30 pm. $14 for members, $16 for non-members. Also doubles as the group’s Christmas Party this month. More information by e-mail from meetings@vwib.com or go online to http://vwib.com.
| www.businessexaminer.ca December 2009
Strategies, Part 2
Paddlewheel Park Hall,
Dec. 3 - Delta Grand Resort,
42
Internet Business
Business After 5 - Dec. 15
Kelowna Chamber Luncheon
Kelowna’s three elected MLAs, Ben Stewart, Steve Thomson and Norm Letnick, will discuss the economy. Runs from 11:45 am to 1:30 pm. $35 for members, $45 for non-members. Call Allison at 250-469-7350 for tickets by Dec. 1.
A three hour session beginning at 6 pm covering five basic topics: ‘What works, what doesn’t’, ‘Internet Marketing Today and Tomorrow’, ‘Driving Traffic to your Website’, ‘Are you targeting the right keywords for your business’, and ‘Why Words & Phrases Matter’. Part 2 of this course runs one week later on Jan. 14. Run by Charleen Edis from Edis Computers. To register call 250-493-2566.
Workplace Training for Innovation - until Jan. 2011 All locations
B.C.’s Ministry of Advanced Education and Labour Market Development has created the new Workplace Training for Innovation Program. Eligible employers can apply for funding to improve productivity, introduce new technology or equipment, improve international competitiveness or bring in new strategies to increases company productivity or competitiveness. Employers must have fewer than 50 employes, have been in business for at least one year and be in good standing with the BC Corporate Registry. More information and applications are available online at www.aved. gov.bc.ca/workplace_training_ program/welcome.htm.
The finer (and mostly illegal) points of
business travel By david crawford
Already dist urbed Thank s!
Top10 things that make agreat hotel
Business travel may be down what with the recession and all, but there are still some tried and true rules and information that will make you a better business traveler. First – bring your own pillow. This is handy for when you are flying and you can pull out your own pillow instead of those idiotic ones the airlines give you, which are the size and usefulness of a small package of Kleenex. The problem with having your own pillow is it can make you feel like you are at home when you sleep, which can cause problems if you tend to scratch yourself, or sleep naked, or in my case, both. Getting up in the middle of your sleep and paddling off to the bathroom can also be awkward on an aircraft, again referring to the naked sleeping part. I don’t recall ever actually doing this, but it will be a few years before they let me fly Air Canada again, which isn’t necessarily a bad thing. I have a lot more to say about hotels than I do airlines, so I have assembled them in a humorous David Letterman Top Ten List format.
10. Shower head is higher on the
wall than my nipples. (Business travelers less than 6 feet tall may ignore this item).
9. Long hallways with lots of
intersections to better facilitate running up and down them in my jammies (or naked as noted above). This one is mainly for my kids. Mainly.
8. Windows that open such that you
can lean out and spit on passersby below. Not that, as a mature business man, I would ever do such a thing. This item is mainly for my kids again. Let me just take a moment, though, to offer a sincere apology to any patrons of the Hotel MacDonald in Edmonton, Alberta, from about 1962 to around 1990, upon whom I may have spat from a great height. While deeply sorry for having done so, I must tell you my siblings and I laughed until we peed every time we did this. But – sorry anyway.
7. Hair dryers with cords long
enough to stretch to the windows to better facilitate drying of the privates. Actually, never mind about the window thing, I was just kidding. Honestly, officer, it wasn’t me.
6. Receipts that don’t list the movies
you actually watched. For the record, let me just say this right now: I don’t watch dirty movies in hotel rooms… all the time.
5. Really great, rough towels and
the ability to use every single one of them to dry off your various parts after a shower. Not having to hang them up again is one of life’s delicious joys. FREEDOM!! Using all the towels in ones own
home and throwing them all on the floor like you do in hotel rooms can sometimes lead to a frank exchange of viewpoints with one's spouse.
4. Distracted room attendants who
happen to leave their trolleys in the hall, filled with the refreshments and snacks that normally you have to pay for. Um de dum de dum…
3. Free local calling and 80 pages
worth of escort listings in the yellow pages! Ahem! That particular item I was going to use in the Playboy version of this article. Never mind! Editor please remove…
2. A pool equipped with squirt guns
and other play toys, such that I don’t have to pack my own.
1. The number one thing I like about business hotels: sheets so stiff with starch that your entire body gets exfoliated in one sleep!!
Once this recession is over, perhaps I’ll write about what I like and don’t like about my own business jet. Just don’t ever peek in the window if you ever see it at the airport. I may be sleeping. David Crawford has won several accolades for his humour writing, most recently winning the ‘Humor and Life, in Particular’ contest in the U.S. During the day he is the head of Capri Intercity Leasing. On weekends, he donates his kidneys to worthy causes, most recently Nelson Mandela. He can be contacted at 250-718-2244. His humour columns are available on his blog at www.occasionalhumourist. blogspot.com.
December 2009 Okanagan Business Examiner
|
43
Putting the Money Back in Your Pocket... ...where it belongs
Tourism summit emphasizes destination creation By Bobbi-Sue Menard
We’re a licensed and bonded collection agency serving the Interior of British Columbia for the past 33 years. We specialize in the recovery of delinquent accounts. Contact us to find out how we can help - now.
3316A 30th Avenue Vernon, BC V1T 2C3 Telephone: 250-545-5351 Toll Free: 1-888-628-3328 Email: collect@bccreditbureau.com www.BCCreditBureau.com
TD CANADA TRUST SMALL BUSINESS ADVISOR
The Thompson Okanagan Tourism Association held their First Annual Tourism Industry Summit November 12 and 13. The two day conference held at The Grand Hotel in Kelowna drew more than 180 delegates from across the TOTA region to hear from a roster of local and international speakers on a wide range of current industry issues. Organizers were particularly pleased with the turnout especially in light of the Summit being the first of its kind in the region and the admitted effects of the recession. “We held it during a lull in the seasons and are very happy with the turnout numbers,” says TOTA’s Regional Media Relations Specialist, Miles Prodan. Since TOTA moved from a membership model to a stakeholder model, the organization has seen a shift in which companies it engages with. In the past membership numbers hovered around 400 explains Prodan, but the stakeholder model moves the organization up to 3,500 companies and organizations it works to engage with. Key themes explored at the summit included social marketing, 2010 Olympic opportunities and employee recruitment and retention. “Given the current employment situation for many companies this year, it was a pleasant surprise to see how many were interested in finding, training and keeping the best employees,” says Prodan. One of the emerging themes in tourism is social marketing and marketing on a shoestring. Friday morning key note speaker George H. Sharp gave a highly interactive presentation on making ‘Something from Nothing.’ Sharp is the former Tourism Development Manager for Washington State.
Sabrina Sutherland Dilworth Shopping Centre 2339 Hwy. 97 N., Unit 700 Kelowna (250) 712-3350, ext. 256 sabrina.sutherland@td.com
44
| www.businessexaminer.ca December 2009
His presentation was designed to have the audience think about community features, culture, personalities, and history in a new light and how to capitalize and create valuable and authentic tourism opportunities. After the well received presentation Sharp sat down and answered questions about some of the key principles in creating a destination. “When you look at where there have been successes you see the first thing is to get people on the same page, on issues they can agree on and then
work on those issues. Then use ‘a parking lot’ to place areas of disagreement to be worked on at a later date or have a plan attached to solve the problem. So often a region or group will not go anywhere because they focus on the areas of disagreement.” Once a group or region is working together Sharp says many issues are small and can be done in a context of overall branding. “You talk about little things, but they must be quality, and you can’t do quality for cheap.” Sharp focused his talk on finding what makes a region unique, and marketing that key differentiator and drawing tourists to the region. To measure the results it takes a sustained commitment, “When you ask, ‘Did we get it done?’ You have to recognize the gradual build up, from before it opens to early adopters, to the skeptics who will need to read a review in their local paper before they come. Once you’ve done that you will need to start asking, ‘How are we renewing to bring back the first people who came?’” Sharp’s presentation inspired Jo Knight, Director of Tourism and Visitor Experience for Destination Osoyoos. Knight says very often tourists who plan to tour the entire Okanagan Valley begin in Osoyoos and then head north. “The presentation challenged me to be mindful of key touch points and take it to the next level.” Knight is one of the driving forces behind the ‘Canada’s Warmest Welcome’ marketing campaign. The campaign builds on some of Osoyoos’ best known qualities of a warm lake, and hot summers, yet the faces of the campaign are the people of Osoyoos who welcome tourists throughout the year. In the past year, Destination Osoyoos has worked to make sure the small things are done right; there are new signs at all four gateway points to the town. The decision was made to feature the Osoyoos’ tourist radio station on those signs. That small decision delivered big dividends says Knight, “It was very valuable to us during the fires this summer. The radio station is on twenty-four/ seven and it was really appreciated.”
construction Survey 138 respondents 1. Are you in the construction business or a company that makes most of its money supplying construction companies with some product or service? Yes
21.74%
No
78.26%
Government has imposed rules and regulations that interfere with making the best possible buildings 4.17%
7. Would you pay extra for environmentally friendly construction if you were commissioning a new building?
Buildings, like everything else today, are not built to last 14.17%
Yes
47.66%
No
7.03%
Depends on the cost 45.31%
2. If your answer to the last question was ‘yes’ have you been forced to lay off staff because of the recession? Yes
21.28%
No
78.72%
3. What do you expect for the construction industry in the Okanagan in 2010? Better than 2009 49.62% Worse than 2009
9.92%
About the same 29.77% I have no idea 10.69% 4. With contractor and construction prices down, have you taken advantage to build something that you thought was too expensive in past years? Yes
24.03%
No
75.97%
5. Have standards for construction slipped in the past few years? Yes, quality is not what it used to be 37.50% No, they are building as well as they ever have 44.17%
No, they are building as well as they ever have Yes, quality is not what it used to be Buildings, like everything else today, are not built to last Government has imposed rules and regulations that interfere with making the best possible buildings
6. If you believe construction standards have slipped is that primarily because: Training and general skills have gone down hill 18.42% Contractors are using inferior materials 14.47% Government regulations 2.63% Intense competition is forcing companies to cut corners 42.11% Most buyers are too cheap to pay for good quality, especially for things they don’t see day-to-day 22.37%
Yes Depends on the cost No
Le re
:L
t te
at
r to
e
t he
E
st di t I ju Su or dif st co r v m fi ey are cult plet Re t e cod too m o ans d yo su lts all. e in any wer. ur sur t b tra Perc he pa uilde One i vey a e d n n thi es… ntag st so rs w par d fo n h t u bui k the but m e wis I don o ha icula nd s v r o e l ' y The ders. have any a I do t thin e con is tha me o don re n thin k qu stru t I d f the edu othe e e eari k th ality cted on' qu wh cate r unf nou ng ere ha m t th est o gh the is a s g ore ink ions hea ich le them rtuna o t t to s a l t e d me end o high tten han m here t e I th hy). s to lves ite nto f th er n wo m i a f n r r th eir um se inimu n in ully is we k m e n car ber ove m fer an that eno re bu any p ext eer of r d i o h r p che om e u il gen s an goo rod ap e Sin gh s t duri ople era d I d o u o k w n c a c i u g t tio don t o ner my e m lled th re g o v n o 't n s e e o o l o r a v u t i b f bou oo ng tim he sua hom wn ing to w m e b f r l r l e u r y o o ( iss s w ildi m les ong do r re time find u s a n h i g e n t . g s e i h f u is t s th ch ffic ing ot co ull la Th su ien s, ma he la at ar look g nsult time tions ings w es wi ta . c i e n m ent th th nd I th y juri k of c diffi ood o ng an unic les e t i o c d o f r ho s lea ink th sdicti onsis ult to n the des ipal in a m s t i o t w es ma ky co e sav ns o ency corre outsi gn bu spec tha i t h d ke ndo ing ver in t s c o e not t Als mis cr gr the enf t. Pa , bu ines r to con o, co takes isis o ace w yea orcin rt is a t hav s I ha now e g r o m v n h and tinue pare with the ich s, inc the lack sign e see pera h exp cod d edu d wit out s coast as k ludin basic of tra ifican n ma ting s g t i n los e en cat h th uffe is t ept ion for ion e c rin ha aw myse of th ning a hidde y of cem in n oas g th t ou ay d lf. e co nd n the en ew t, r e de par i by t Ke gre t. T id we cons clima saste en his eas hav equ te rs l nK a i e / Pr b i e k s p l uild pa ro litt l e un n o c es w t ing rtic duc le o es. s u he ide ka s to ind ula ts, b ppo A nt ust rly uild rtu , F ScT a n r ppa ing ity y. lyw , B ren tec to CQ he t w hni el ith que Bu the s i ldi
ng
So
lut
ion
s
8. Would you pay extra to incorporate environmentally friendly components into a renovation? Yes
49.23%
No
7.69%
Depends on the cost 43.08% 9. If your answer was ‘yes’ how much extra would you pay for those costs?
20% extra 10% extra 33% extra 50% extra
10% extra 39.33% 20% extra 43.82% 33% extra 14.61% 50% extra 2.25%
10. Would you approve of legislation forcing better environmental standards in building? Yes, it’s just the right thing to do 29.55%
Yes, it would level the playing field for costs so everyone would face the same extra costs 22.73% Only if it weren’t too expensive 23.48% No, we’re already over regulated 21.21% No, it’s all a waste of time 3.03%
If you would like to be included in future surveys conducted monthly by the Business Examiner please send your e-mail address to: editor@businessexaminer.ca and indicate in the body of the text that you want your name added to the survey list. December 2009 Okanagan Business Examiner
|
45
Feeling guilty about global warming yet? By mischa popoff
World leaders will soon meet in Copenhagen to take another crack at getting between you and a hot shower. If global warming science makes you feel guilty for keeping your home at room temperature and driving a car to work, fret not; it’s not science. The bugbear of global warming began as a shameless political gambit. Maurice Strong, a Canadian living in China, wanted us to feel very guilty for our standard of living in the West so he worked with the United Nations to organize the 1992 Earth Summit in Rio de Janeiro that laid the groundwork for the Kyoto Protocol of 1997. Here are Strong’s words from before the summit: “What if a small group of world leaders were to conclude that the principal risk to the Earth comes from the actions of rich countries? … So, in order to save the planet, the group decides: Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?” Instead of raising living standards in poor nations, the efficiency of Western economies would be undermined through cap-and-trade schemes and carbon taxation. Still feel guilty? During President Bill Clinton’s second term, the United States Senate voted unanimously to reject Kyoto on a motion made by a senior Democratic Senator to reject all such treaties in perpetuity. Canadians meanwhile have a hard time remembering the Canadian vote on Kyoto. I’ll come back to that. We’re told the evil oil lobby killed Kyoto down south. Think about that for a second. A second-term
Democrat in the White House with an ideological environmentalist as his vice president, none other than Al Gore, and we’re supposed to believe oil companies killed Kyoto? It’s more likely the Democrats just didn’t feel guilty. Guess where all the CO2 trapped in fossil fuels comes from? That’s right, the earth’s atmosphere, which once held ten times more CO2 . Any farmer can tell you that increasing CO2 levels boosts agricultural yields; scientists estimate 15% of the earth’s population exists thanks to rising CO2 in the last century. (You’re supposed to feel guilty about that.) The atmosphere stopped warming in 1998 in spite of rising CO2 . In fact in 2005 the much-ballyhooed “hockey-stick graph”, which Al Gore claims shows we’re living in the warmest period ever, was shown to produce its hockey-stick shape even if random data were used. Now who’s guilty? What if all computer models used to support Strong and Gore’s doomsday scenario were rigged? Surely the UN would never go along with something like that. Well yeah, they did. Then it emerged that temperature records themselves are skewed because cities are naturally warmer than surrounding landscapes. Temperatures rise as cities grow, but (oops!) the UN’s scientific panel failed to take that into account. Strong and Gore will never debate global warming. It’s more expedient to pitch this social-engineering agenda as a good versus evil battle that any elementary school kid can understand, or be brainwashed by, which brings us back to how Canada came to be a signatory to Kyoto.
Clinton and Gore stood by while their Democratic allies united with Republicans to kill Kyoto. But what about the vote in Canada’s Parliament? Was it close? Do you remember? There was no vote in Canada. Jean Chrétien ratified the Kyoto Protocol at a brief ceremony in his office in 2002. That’s right… in his office. Preston Manning and his Reform caucus criticized Chrétien, but the media let him get away with it and has badgered the right ever since for not drinking Strong and Gore’s suicidal cool aid. Forget elected members of Parliament. Never mind Chrétien’s own cabinet or David Anderson,
Canada’s longest serving Environment Minister, who was not even consulted. One man, a man who happens to be chums with Strong, signed us all up to do our part to bring about the collapse of industrialized civilization. Go ahead and have a hot shower, keep your house at room temperature all year long and drive to your heart’s content. Guilt and Copenhagen are for losers. Mischa Popoff is a freelance political writer with a bachelor’s degree in history.
BENSON SALLOUM WATTS LLP L
A
W Y E R S
Rea l Estat e Law | Busi ness Law | Wills & Estates | Personal I nj u ry Law | Abo r i g i nal Law | General Li t igation
Meet our new legal team in West Kelowna. They are here to assist you with all of your legal needs.
E X P E R I E N C E
I S
T H E
D I F F E R E N C E
200-1455 Ellis Street Kelowna, BC V1Y 2A3 Ph: 250.861.5678 Fax: 250.861.5642 270 Highway 33 West Kelowna, BC V1X 1X7 Ph: 250.491.0206 Fax: 250.491.0266 Estates Square - 102A 1979 Old Okanagan Hwy. Westbank, BC V4T 3A4 Ph: 250.769.4949 Fax: 250.769.7070
www.bensonsalloumwatts.com
Act Fast - Now Leasing Call Ed Lugossy Licenced Commercial Real Estate Agent 250.870.2801
NC Derriksan & Son Enterprises www.ncderriksanandsonenterprises.com