Business News August 2011

VOLUME 26, NUMBER 8, 0834-2011

AUGUST, 2011

Iron ore expansion project injecting jobs, economic value, and excitement IN THIS ISSUE:

•Long-term natural resources •Golf tournament wrap up •Future fuels

Contents IN THIS ISSUE Business News is a monthly publication of the St. John’s Board of Trade.

Reproduction of any material contained in Business News is permitted provided written approval from the St. John’s Board of Trade.

Articles and criticisms are invited, but opinions expressed by contributors do not necessarily represent those of the St. John’s Board of Trade.

We encourage you to support the business leaders whose names and products you see advertised in this issue as well as throughout our entire membership. The Board reserves the right to edit submissions.

Editor: Printed by: Layout:

Alisha Morrissey British Group of Companies Roxanne Abbott

Jo Mark Zurel Steve Power Denis Mahoney Sharon Horan Derek Sullivan Sherry Walsh

Chair Senior Vice-Chair First Vice-Chair Second Vice-Chair Immediate Past Chair Secretary-Treasurer

ST. JOHN’S BOARD OF TRADE EXECUTIVE

COVER STORY

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CHAIR’S MESSAGE FEATURES

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KEEPING CURRENT MEMBERSHIP

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Upcoming Events

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BOARD OF DIRECTORS Kim Keating Dallas Mercer Jeff LeDrew Bill Mahoney Brenda O’Reilly Karen McCarthy Dorothy Keating Des Whelan

STAFF Paul Thomey Jennifer Chaytor Shari Palmer Margie Davis Alisha Morrissey Craig Ennis

Wanda Palmer

Jackie Bryant-Cumby

Chief Executive Officer Manager of Finance and Compliance Business Affairs Manager Sales Manager Policy Research Analyst Vice President of Policy and Communications Events Marketer & Administrative Coordinator Member Relations Administrator

St. John’s Board of Trade 34 Harvey Road P.O. Box 5127 St. John’s, NL A1C 5V5 Canada Tel: (709) 726-2961 Fax: (709) 726-2003 E-mail: mail@bot.nf.ca Website: www.bot.nf.ca

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Cover Story expanding resources their commitment to the people and communities of Newfoundland and Labrador.

The company contributes more than $200 million annually to the province’s tax base ard hat, check. Work boots, check. and is the largest private employer in the Safety glasses, check. Reflective province, with more than 1,500 employees safety vest, check. These items are in Labrador West alone. If you include a must when preparing to take the journey partners like contractors and local business to the look-out. owners, that number grows to 3,200. IOC Next, a short bus ride on a bumpy road also contributes more than $1 million that sparkles in the sunlight as if tiny a year in community partnerships with jewels have been deposited into the earth.

Labrador City, Wabush and St. John’s.

Finally - the jaw dropping moment Those numbers are impressive, but stepping off the bus and looking down at they’re about to the cascading increase. earth where IOC has an abundance one of our of resources and great province’s potential for expansion. richest natural Their expansion resources programs – current and is being potential – are rocking responsibly Newfoundland and mined and Labrador’s mining processed for industry to its core. the global IOC’s Concentrate market.

Expansion Program, Often referred currently in phase II of to as the a three-phase plan, will “Big Land,” increase the company’s Labrador holds annual concentrate promise for capacity from 18 the future as million tonnes to 26 the Iron Ore million tonnes by 2013.

Company of That’s a lot of iron ore.

Canada (IOC) It’s also a lot of jobs. continues This expansion will to grow a allow IOC to become business and a more competitive a community IOC operates several pits, a business, grow as a that is truly concentrator and a pellet plant company and reach one of a kind. in Labrador City, port facilities in its full operations IOC serves Sept-Îles (Quebec), and a rail line that potential. It will also global links the two locations. The company further contribute to clients with is the largest private employer in the economy locally, a top-notch the province, with more than 1,500 provincially and product. In employees in Labrador West alone. nationally. fact, IOC is a Most importantly, leading global supplier of iron ore pellets IOC is committed to doing these jobs right: and concentrates and the largest iron ore with safety, community and sustainability pellet producer in Canada. always at the forefront of business However the company doesn’t let planning. their worldly business interfere with

Iron ore expansion project injecting jobs, economic value, and excitement

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Health and safety Health and safety is paramount to the success of IOC’s business. Safety will be at the forefront every step of the way, from the conceptual phase and construction, straight through to first production and beyond. Zero harm is the goal.

Community Partnerships Expansion would not be possible without the support of local communities.

IOC is committed to giving back to the communities where they work and live. As the expansion projects unfold, employees and community members can expect further benefits from the meaningful partnerships IOC continues to build.

Partnerships like these helped achieve great results in 2010: a new CT scanner for the people in Labrador West and the construction of Ronald McDonald House for the people of Newfoundland and Labrador.

Sustainable Development IOC believes its responsibility is to meet the needs of the present without harming the environment. It’s for that reason they launched a tailings project, Canada’s largest environmental remediation project, in 2003 and why it’s committed to improving air quality in Labrador City. The company invests significant time, energy and finances into studying and mitigating the effects of their operations on air quality.

The company’s expansion goals are ambitious and can only be achieved by continuing to develop the synergies of all stakeholders – employees, government partners, and community members, to name a few.

IOC’s success will be the success of Newfoundlanders and Labradorians; those lucky enough to live here and those who are making their way back home.

Before returning to the bus from the look-out, one last glance out over the cascading earth brings a renewed sense of excitement at the potential lying below.

Beyond what the naked eye can see is a wealth of opportunity that has yet to be uncovered; not only in the earth itself, but in the people and the community that is IOC. Business News

Chair’s Message city planning

Chair, Jo Mark Zurel

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ake a few moments and think about a short walk through the perfect neighbourhood.

Think really hard for just a second about your personal ideal place to live. Where are you? Think about the surroundings.

What’s happening there? Who are your neighbours?

Take a deep breath of this imaginary perfect place. What does it smell like?

Is the sun tingling your skin or the wind biting your cheeks?

Some of you will think of vast lush green lawns. Are the houses brightly-coloured like our famous jellybean row? Are you isolated in the Barrens or across the hall and upstairs in a building full of other families?

Are there sidewalks? Corner markets?

White picket fences or wrap-around driveways? Kids playing ball hockey on quiet cul de sacs?

Now, look around your own neighbourhood and ask yourself; “Is this what I pictured as my ideal place to live?”

Much like the game where you must pick out the differences between two similar photos, pay attention to the differences between your ideal neighbourhood and your real one.

Notice whether there are more or fewer trees, cars, ponds, taller or smaller houses and buildings.

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In the coming months the thought of Though the Board of Trade does have your perfect neighbourhood could be more ideas about density, development and what than a minute’s indulgence while reading the city will look like in the next decade, this column. The City of St. John’s will I’m not going to tell you what you want be starting its municipal planning process in your ideal neighbourhoods or the city. this year and your idea of that perfect You’re the best one to decide what will neighbourhood could be closer to reality, work best for you.

However, we will be voicing our opinions or it could be wiped entirely off the list of options. As the city examines the good, bad as soon as the city provides an opportunity for public input on the plan. In the coming and ugly of our city, each person must ask months we’ll be talking a lot about themselves hard questions too.

Would you give up the little greenspace in planning, sustainability neighbourhoods, and the growth and future the downtown of this city. for more “Adding one more snow If you agree with parking? us, that’s great. If you If – in the clearing route, or cutting disagree, that’s great too. unlikely back garbage pick up to What’s not great is event – the once every two weeks hits that many of you will city decides to think about what we and disassemble us a lot harder than that others have said, what the the heritage pothole you curse every city has to say, and will area in favour morning when you pull out remain silent. of skyscrapers I would encourage and condo of your driveway because you to at least think development, land-use planning, about what you want you have to ask to see where you live. yourself am I smart growth and other Think even harder about OK with that? principles of a municipal whether you want to say Or if all retail plan determine the quality something when the city growth will be relegated to the of life for a community, the gives you the chance to offer your opinion. east end of the level of taxation, and the Many of you won’t city, you have services in a city.” take advantage of your to consider right to participate and how that will unfortunately, being impact you and left out of this conversation is kind of your family.

Whether the city scraps our underused like saying you don’t care what your neighbourhood looks like. public transit system or chooses to allow If you have thought about your sidewalks, unlimited subdivision development, those building height, how close you would like choices will determine whether you can to live to your aging family members, or rent out your basement apartment or the how the city could work better for your value of your water supply. lifestyle, then you should complain to Adding one more snow clearing route, someone other than your spouse or the gas or cutting back garbage pick up to once station clerk or the person you have lunch every two weeks hits us a lot harder than that pothole you curse every morning when with at work. You should tell your city.

It’s not always easy to get involved. It’s you pull out of your driveway because harder still to stay involved when you’re land-use planning, smart growth and other one small voice standing up for what you principles of a municipal plan determine believe in. the quality of life for a community, the level of taxation, and the services in a city.

But nothing this important is ever easy.

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Feature

effective talent management Essential for business growth

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rganizations are facing continued uncertainty and challenges brought about by the current economic environment. It is critical to optimize your organization’s human capital to cut costs and look for efficiencies.

Photo by Evan Butler www.evanbutler.com

Adaptability and agility can be achieved by changing your existing organization structure, talent management practices, and human resources policies and procedures.

During times of change and uncertainty, there are opportunities for organizations who strongly position themselves to respond to a new environment. A rethink of your talent management strategy is imperative to position your business for growth. “Talent” refers to all of your employees with particular focus on leaders, high potentials, and key roles pivotal to the success of your organization.

implemented properly, talent management programs operate together as one smooth system and include the following elements:

compared to employees. A number on the top 10 list for employees did not even rank on the employers radar of top 10.

• Workforce planning • Competency mapping • Branding and recruiting • Orientation of new hires • Learning and development • Performance management • Coaching and mentoring • Career paths • Succession planning • Leadership development

Market Your Employee Value Proposition with HR Policies

Before going down the path of reengineering your talent management programs and processes, it is important to identify the end goal behind these programs. The core element of a talent management strategy is the overall employee value proposition, which clearly articulates what the employee receives from the employer in exchange for the productivity and performance expended by the employee.

An often forgotten talent management tool is your company’s human resources policy portfolio. Human resource policies must be up-to-date and compliant with constantly changing employment standards legislation to mitigate risk. But HR policies are also a useful way to position your organization as an employer of choice. By listing your HR policies on the company website, programs like flexible work arrangements, telecommuting, or employer-paid volunteering days highlight the benefits of working with your company. This is key to attracting hard to find top talent. According to Profit Magazine’s Top 50 CEO’s of leading, emerging growth companies, retention and recruitment are the most important factors to realize success.

What Do Canadian Employees Want From Their Employer?

Attraction Drivers Canada Competitive Base Pay Vacation / Paid Time Off Competitive Health Care Benefits Career Advancement Opportunities Competitive Retirement Benefits Convenient Work Location Flexible Schedule Challenging Work Learning and Development Opportunities Organization’s Reputation as a Good Employer

Employee 1 2 3 4 5 6 7 8 9 10

Employer 2 10 4 6 3 8 1

Source: Tower Watson 2010 Global Workforce Study and 2010 TMR Survey - Canada

What is Talent Management?

The right human resources can drive business growth and an effective talent management strategy can increase the value of those resources. A comprehensive talent management strategy covers the entire talent lifecycle from identifying gaps in your organization’s skill-sets, filling competency gaps, managing performance, and rolling out regular organizational development and training. Each part needs to be aligned to your company’s mission, vision, values, and strategic goals. When 4

A well designed employee value proposition attracts, retains, engages, and motivates employees to drive business growth. When defining an employee value proposition, it is critical to customize it for your existing employee base, and to consider who you want to attract as future employees. The above table indicates the relative importance that employers place on employer attraction drivers.

Particularly interesting are the different ratings employers gave to certain drivers August 2011

Susan Power is the Principal Consultant at Higher Talent. Services include talent management solutions, HR policy development, HR research, and employee surveys. Call her directly at 730-4135, susanpower@highertalent.ca. or visit her website for more details www.highertalent.ca

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Feature the future of fuel Taking advantage of Newfoundland and Labrador’s natural peat and algae resources

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urrently making up almost 30 per cent of Newfoundland and Labrador’s GDP, the offshore fossil fuel industry is only expected to last approximately 28 more years.

When combined with an increasing environmental awareness, the need for alternative natural fuel sources becomes urgent. Peat and algae, though they may be viewed as simply bog and slime, are both promising natural resources that Newfoundland has in abundance. Each generates not only energy, but also solutions to various global and local issues.

How it is possible to run a vehicle on the same substance that clouds an aquarium and builds up on fishing nets? According to the Worldwatch Institute, micro-algae have the potential to produce large quantities of lipids (plant oils) that are well suited for use in biodiesel production. Algae grow naturally in both salt and freshwater, and can be commercially produced in controlled environments for a more consistent output.

The oil, making up 30 to 70 per cent of the biomass, can be extracted and processed into environmentally friendly fuels. Presently in the research and development stage, algae biofuel has been tested in a commercial aircraft with favourable results. There is no wastage of the biomass since the residual ‘algae cake’ can be used in a variety of valuable co-products including animal feed, cosmetics, and protein supplements.

Peat has multiple uses including horticulture, home heating, and industrial fuel. Production of this resource as an industrial fuel is well on its way in the province of Newfoundland and Labrador as Toronto-based Peat Resources Ltd. is currently operating a pilot plant in Stephenville, and plans to expand operations for both local and

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export markets. To ensure that peat fuel is environmentally attractive, a wet harvesting technique is used that avoids the need to pre-drain the peatlands, leaving the upper growing layer of the bog preserved, minimizing damage to the ecosystem.

In recognition of the severity of global warming, many countries have efforts to reduce their carbon footprint. Utilizing algae biofuel and peat as replacements for non-renewable and expensive fossil fuels could help meet these needs.

Algae oil is presented as an environmentally friendly, renewable transportation fuel of the future, with its valuable co-products sold to help produce the oil at costs competitive with fossil fuel. Currently in the testing stage, it holds promise for use in planes and other vehicles. Peat is already used in place of coal in many parts of Europe for electricity generation. It is viewed as a cleaner substitute for coal and is needed to facilitate government efforts to reduce green house gas emissions. With multiple uses and environmental benefits, peat is also in demand as oil and electricity prices rise.

On a more local scale, parts of rural Newfoundland are suffering from the dwindling fishing industry and would benefit from the job opportunities that would arise with the development of these industries. For instance, algae is a renewable resource that could be cultivated and processed in the deserted fish plants and warehouses for reliable employment and revenues. This coincides with the NL Rural Secretariat plans to take advantage of growth opportunities and partner with the academic communities on research projects.

The future of fuel in Newfoundland and Labrador could quite possibly be dependent on resources formerly viewed as slime and bog. Development of these native materials will not only revitalize the local economies of rural Newfoundland and Labrador, but will also help reduce the effects of global warming.

Utilities that rely on coal or oil-burning power plants are interested in peat as it is a direct substitute that generates electricity reducing emissions of mercury and harmful greenhouse gasses.

Chris O’Brien is a Principal Consultant with O’Brien Consulting in St. John’s. See the full paper at www.obrienconsulting. ca or contact Chris at chris.obrien@ obrienconsulting.ca

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Feature ambassador’s column Justine Perry

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s we are all aware, networking provides the most productive, proficient and enduring tactics to building relationships. My belief is that in order to succeed in sales, you must continually connect with new people, cultivate emerging relationships and leverage your network; the St. John’s Board of Trade functions have allowed me to do just that. After attending several luncheons and mixers, I recognized the influence these events were going to have on my career, and knew instantly I wanted to become more involved with the Board of Trade.

After meeting an Ambassador and hearing about their role within the Board of Trade, I knew it was something I would love to be a part of. Initially, the want to become more involved was to

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expand my own network in the business community, but it turned into much more than just networking for me. It turned into one of the most positive experiences of my career thus far. Not only did I gain clients, confidence and knowledge; I built a wonderful network of friends that I was able to work side-by-side with for nearly two years.

I have enjoyed every minute of my term as an Ambassador and genuinely appreciate the benefits of the program. I will continually value the many attributes I take away from this experience and encourage members to become involved.

Justine Perry is an Account Executive with NTV/OZFM (NL Broadcasting Company) Television/Radio/Internet Advertising. For more information please call Justine at 570-5296 or 693-1119 or email jperry@ ozfm.com

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Feature ambassador’s column Angela Hedderson

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usinessman Bill Gates once said “Our success has really been based on partnerships from the very beginning.” My experience as an Ambassador with the St. John’s Board of Trade has been just that; the building of partnerships. It has been rewarding both professionally and personally.

I have learned the art of networking through meetings, socials, luncheons and interactions sponsored by the Board as well as the importance of networking and meeting new people to enhance and create relationships.

I always think back to the Premier’s luncheon and how proud I felt to have been part of that. It’s one of the most

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publicized and anticipated events for the Board and always informative and fun. It’s a great time to network with all levels of business and government and to hear what the premier is going to talk about. Being an ambassador for this event was the most rewarding so far.

I have met great people and learned of their success stories which have inspired me to set goals. I have had the opportunity to be involved in the front lines for the Board and this in itself has been an empowerment.

Angela Hedderson is Staffing Specialist with the Government of Newfoundland and Labrador Public Service Commission.

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We see the possibilities.

For Suncor Energy, growth brings opportunity and a set of new challenges. The biggest one of all: balancing increased development with the need to live up to our social and environmental responsibilities, both as an individual company and collectively as part of Canada’s oil sands industry. We believe the key is collaboration. A great example is the Oil Sands Leadership Initiative where Suncor works closely with four companies to improve environmental, social and economic performance in the oil sands industry. With a shared commitment to excellence and innovation, we can work together to build a more sustainable energy future.

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in amount of fresh water % decline Suncor has withdrawn from the Athabasca River since 2004*

Vincent Saubestre, executive director, Oil Sands Leadership Initiative

50

1.2

decrease in GHG emission $ %intensity at Suncor’s oil sands operation from 1990 levels*

billion

actual and planned investments in Suncor’s new tailings technology

performance partnerships possibilities

Find out more about Suncor’s track record and how we are planning to responsibly develop North America’s energy supply. www.suncor.com/sustainability

*As at December 31, 2010. ™ Trademark of Suncor Energy Inc.

Feature costs of regulation More recently, the BP blowout in the Gulf of Mexico led to a moratorium on deep water drilling in the Gulf and continued opposition to drilling in the Arctic waters of both America and Canada. At what cost to the industry and the country?

The current offshore board system for the Atlantic waters cannot last long – the conflict between the roles of promotion and regulation are just too obvious. Other jurisdictions including Norway, Britain, the Canadian Arctic and the American offshore have all moved to separate the functions and we can expect the same offshore Newfoundland and Labrador and Nova Scotia.

For the industry here, that’s a good thing.

The costs associated with moving a single application through the system can be daunting. But the costs of having a system that is fundamentally out of step are simply too great to chance.

Some night, when it’s quiet in the bar and you want to get some excitement going, ask the oil guys in the room what they think about the regulatory regime that oversees their offshore activities. Then, stand back and get ready for a blast.

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t has long been a given among oil folks, whether they’re working offshore Newfoundland, in the Beaufort, Fort McMurray, or pretty much any other place in Canada that the regulatory regime we have in this country is overly complicated, time consuming, uncertain as to outcome, captive to special interests and expensive.

And that’s the nice stuff they say about it.

These oil folks, and the suppliers that depend on them for business, are continually frustrated by the pace of the process and, when you stop to think about it, you can’t blame them.

Yes, there are costs associated with the regulatory regime, costs that continue to mount as the process makes its slow way to a conclusion. The work of the Joint Review Panel for the Mackenzie Gas Project took years to complete and cost millions of dollars, only to result in a report that was promptly rejected almost wholly by both the federal government and the National Energy Board.

And, yes again, this messy process can drive away investment as companies look to spend their exploration and development dollars in more “user-friendly’ countries.

The Fraser Institute’s annual Global Petroleum Survey of oil companies sets out pretty clearly what companies think of the attractiveness of the many countries in which they can invest their dollars.

And many times it is difficulties with the regulatory regime that determines the level of attractiveness, often despite the recognized geological potential of a region.

But, and here’s where it can get tricky, we must be careful not to let frustration with the specific failings of a regulatory process

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Doug Matthews make us blind to the greater costs that a flawed regime can impose on an industry, a province, or a country.

Think back to Union Oil’s Santa Barbara oil spill of 1968, in part the result of poor regulatory oversight by the State authorities. The result was the imposition of a drilling moratorium that remains in place today. At what cost to the industry and the country?

Think back to the Exxon Valdez incident of 1989, a grounding that, while the responsibility of the inept captain, owed much of its root cause to slack oversight by the coast guard. The release of oil, and the clear unpreparedness on the part of the regulators to respond, led to another moratorium, this one off the west coast of British Columbia, a moratorium that continues today to frustrate Alberta’s plans to ship bitumen to China. Again, at what cost to the industry and the country?

August 2011

Doug Matthews is a Calgary-based oil industry analyst/writer, and is the former Director of Minerals, Oil and Gas for the Government of North West Territories.

Doug will be speaking at the Canadian Institute’s upcoming Offshore Oil and Gas Conference to be held in St. John’s this November.

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Keeping Current policy matters Debt What’s the issue?

The provincial government will pay roughly $800 million in debt servicing charges this year. Paying off the debt, during a time of high oil production and prices, would free up that money into perpetuity rather than have it go to debt charges when oil runs out.

Why does it matter?

It costs $15.5 million per week to service the debt which could instead be used to double the money the province is spending over three years to provide apprenticeship incentives. This would be done at a time where we have Muskrat Falls and other mega projects being built.

What needs to be done?

The multi-billions in non-renewable oil revenues have to be used to pay down our $16,000-per-person provincial public debt before the revenues dry up. Specific actions, responsibilities, timelines and targets have to be planned for before the money runs out.

What can businesses do?

Make the issue known: • Talk to anyone running in the fall provincial election and tell them to reduce debt, • Ask your friends and colleagues about projects or ideas that are not getting support because money is being spent on having big debt and tell politicians about the opportunities we miss, • Tell others about the limitations being placed on our opportunities because of our debt problem, • Learn more about the severe measures other countries are taking because they lived beyond their means and ask yourself if you want that as a future in this province.

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Diversification What’s the issue?

Newfoundland and Labrador’s economy is largely resource-based.

Commodities like oil and minerals, can be cyclical and depend on global demand which is outside of our control.

Knowledge-based industries can help maintain employment during down cycles and create a sustainable source of exports from our province to the world.

Why does it matter?

Resource-based economies are diversifying and putting resources into ensuring they win in the global marketplace well into the future. It took 20 years to build an oil industry here; we need to spend 20 years aggressively building more aspects of our economy to secure the future.

What needs to be done?

Investment in entrepreneurship has to be a common value – children should learn entrepreneurship with reading and math with that education continuing through post-secondary institutions.

‘Failure’ in business has to be seen as a learning experience.

What can businesses do?

• •

•

Take calculated risks, share success stories and tell others how to avoid your failures, Compliment governments when they make investments in local businesses and encourage them to invest more in potential local partners, suppliers and even competitors, Challenge those who question governments that support business and ask them what else generates new money for the economy.

August 2011

Demographics What’s the issue?

Forecasts indicate 70,000 job openings between now and the year 2020 in the province, with job growth strong between now and 2015 but significant job losses afterwards, some of which will be offset by retirements.

Why does it matter?

Businesses will need to develop incentives for employees to work beyond retirement age, to make jobs attractive to younger or immigrant workers, and to use our underrepresented workers like women, aboriginals and people with disabilities to further fill labour needs.

What needs to be done?

Obvious steps include making public policies that extend the life of the existing workforce, increasing trades certification coupled with programs that recruit expatriates.

What can businesses do?

Policies that create a positive working atmosphere should be a part of any HR foundation. Consider the following: • Varying work assignments, flexibility in benefits – benefits that appeal to 25-year-olds might not appeal to 50-year-olds, • Mentorship programs, training and professional development opportunities, • Offering healthy workplace initiatives, including gym-membership, or public-transit subsidies, • Creating a recognition plan for employee achievements.

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Feature

revisiting regulations and breaking barriers for ways to encourage further exploration drilling in frontier basins throughout Canada’s offshore,” adds Cadigan.

One way is to fund the Geological Survey of Canada to improve resource assessments and create basin atlases to provide geological data to potential investors in the region’s offshore. Although assessment technology has improved dramatically, some assessments used today are based on data obtained over 10 years ago.

In other jurisdictions like Greenland, seismic data can be publicly accessed and having this data available to companies improves prospectivity.

Perhaps the most resounding message

Canadian government to revisit some of this legislation to determine if it is still applicable in today’s global offshore developments. hile 2.84-billion barrels of “An element of the issue that is oil have been discovered in continuously raised is the length of time Newfoundland and Labrador, and cost of bringing foreign flagged a potential six-billion barrels remain drilling and other vessels into Canada,” undiscovered. Provincial bodies and Cadigan says. industry voices have been advocating to Although the vessel is only a component the federal government about the need for of the technology used and modern seismic two-dimensional seismic survey data that vessels are integrated with this technology, is crucial to stimulate further exploration. once a seismic contractor is chosen by an Despite evidence that points toward the oil company, the foreign flagged vessel has current Coasting Trade Act hindering to be approved by the CTA and Canadian further exploration in east coast Canada’s vessel owners can protest within 30 days offshore, the federal government has been under the Act. slow to move on the These applications issue. are usually contested High prices and by one Canadian firm long-term demand in particular, despite is driving intense its Canadian flagged exploration in vessel currently being most other basins classified as laid up, worldwide, yet meaning remedial exploration work is required activity offshore to make the vessel Newfoundland and seaworthy.

Labrador hasn’t seen “Clearly, current a major increase. speculative seismic Since 1991, Most of Canada’s significant discoveries offshore – including Hibernia activity is all but Newfoundland and pictured above – were found in the 1970s to late-1980s in Newfoundland non-existent in Labrador’s offshore and Labrador offshore basins when there was assistance from federal Canada’s offshore has seen 16 significant incentive programs. while it is an discoveries, but only from both provincial bodies and industry important source of data elsewhere in the seven since the year 2000. is to exempt seismic vessels from the world,” says Cadigan.

“It is widely known that seismic data is Coasting Trading Act (CTA) regulations.

Without exploration, there can be no the foundation of creating offshore land In 1983, the federal government new discoveries; no new developments to sales that lead to exploration,” says Bob introduced legislation to take greater contribute to major capital project spending Cadigan, president and CEO of NOIA control of Canada’s continental shelf for in the region; and no new production can (Newfoundland and Labrador Oil and Gas the exploration of its petroleum resources occur to replace depleting reserves, sustain Industries Association). to ensure that the Canadian industry could opportunity to the supply and service To illustrate the issue – the region’s fully participate. sector, and restore diminishing treasury offshore area is four times the size of Aside from the construction of 10 to 12 returns. the North Sea; yet, Newfoundland and offshore supply vessels, these changes It only makes sense – exploration is Labrador has had only 140 exploration have done little to benefit industry.

In absolutely critical to East Coast Canada’s wells to date while the North Sea has had fact, the legislation limited exploration petroleum industry, its people and Canada approximately 4,000 wells. activity by causing uncertainly amongst the as a whole.

“While the impact of the offshore oil major global players regarding access to and gas industry on the Newfoundland Canadian market opportunities. and Labrador economy is staggering – 40 Because of this, industry players Article by Deborah Inkpen and Erin per cent of GDP, 30 per cent of provincial have been raising the issue with the Molloy. revenue – it is vital that government look

More exploration means more opportunity

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Feature making connections Nalcor/Newfoundland and Labrador Hydro get social

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ocial media is not only changing the way people communicate with their friends and family, but also how businesses communicate with their customers and stakeholders. To better reach and be more accessible to stakeholders and customers, Nalcor Energy and its subsidiary Newfoundland and Labrador Hydro launched accounts on Twitter, Facebook, and YouTube.

Both Hydro and Nalcor also have their own blog sites that house a lot of the links and information visitors will find on the social media sites. Nalcor also has an additional blog for posts by members of its leadership team.

“Social media is an important tool we can use to reach people,” says Alex Collins, a communications advisor with Nalcor, who led the company’s social media program.

“According to socialnomics.net, traffic to social networking sites grew 51 per cent in the past year.

“It’s exciting how we can share information about upcoming projects like the Lower Churchill, and communicate with our Hydro customers about things like safety and outages.”

Nalcor and Hydro started using YouTube to share videos earlier this year, launched Twitter accounts in May, and went live on Facebook in June.

“We realized how important social media is becoming for business and that it’s a space we needed to be in,” says Collins.

“We also knew we had to be active in the space. Social media is about listening and having conversations, being available to answer questions and talk about news and events.”

The Hydro Facebook page launched with a bang. For the first two weeks the page was live, Hydro donated $1 to Ronald McDonald House Newfoundland Labrador for each person who liked their page. Two weeks later, $7,390 was donated to support the house.

Collins says the key to successfully venturing into social media is a strong strategy and a lot of research.

“While we knew we wanted – and needed – to have a social media presence, we took the time to research best practices and make sure we knew how to effectively participate in social media.”

Follow Nalcor and Hydro: Facebook: facebook.com/NalcorEnergy and facebook.com/NLHydro Twitter: twitter.com/NalcorEnergy and twitter.com/NLHydro YouTube: youtube.com/NalcorEnergy and youtube.com/NLHydro Blogs: nalcorblog.com, nlhydroblog.com, nalcorleadershipblog.com

Social Media 101: What are popular social media sites and how can you use them?

Facebook offers a network to communicate with friends, family and coworkers, and share videos, pictures and other media with Facebook friends.

Visit Facebook.com to set-up an account, to learn more about how to use Facebook, check out mashable.com/ category/facebook.

If Facebook were a country, it would be the world’s third largest*

Twitter features short, 140-character posts, called ‘tweets.’ By following other users who share common interests, Twitter is a great way to stay informed about subjects you are interested in. You can sign up at twitter.com, or to learn more or find tips on how to get started check out: mashable.com/guidebook/ twitter/ Twitter grew 752 per cent in 2008.**

Videos posted to YouTube are easily shared on websites, social media sites, mobile devices, blogs, and through e-mail. To learn more about YouTube, visit mashable.com/category/youtube/ The #2 largest search engine in the world is YouTube* Simply put, a blog is an online journal.

Blogs can range in subject matter from business to entertainment to food to travel, it’s up to the blogger to determine the topic they blog about. For advice on starting a blog, visit: problogger. net/archives/2006/02/14/blogging-forbeginners-2/ There are over 200,000,000 blogs* Sources: *socialnomics.net **mashable.com

12

August 2011

Business News

Feature users beware Not all financial statement reports are created equal

S

o you’re considering purchasing a new business and as part of the due diligence on the deal you have asked to examine the company’s financial statements. An integral part of the financial statements is the report that accompanies the statements which indicates the level of service performed by the accountant.

This report can be one of three types; audit report, review engagement report or compilation report.

The type of report is determined by mutual agreement between the client and the professional accountant. The choice of report depends on many factors, such as the needs of the client, needs of creditors or investors, the size and complexity of the business and how much the client is willing or able to pay.

Compilation reports represent the most basic level of service a professional accountant can provide with respect to financial statements. The goal of a compilation is to take information that is in the general ledger and accumulate it into financial statements. The format may look the same, but the accountant performs an extremely limited analysis on any of the numbers presented. The accountant would only follow up on information that is obviously incorrect, such as clear departures from generally accepted accounting principles. As a result, an external reader of the financial statements can only place minimal reliance on a compilation report.

Review engagement reports provide assurances that financial statements do not have any known errors or departures from generally accepted accounting standards. The procedures performed by the external accountant during a review will be limited to inquiries and analytical review. This means the accountant will ask many questions of management and the finance staff. Analytical review means the accountant will look at the relationships between numbers to make sure they make sense. A review does not provide the same

Business News

level of assurance as would an audit as the accountant has not undertaken sufficient work to determine if the financial statements present accurately the financial Tashia Batstone, CA, MBA position of the company. However, a review is less costly than an audit which is why many businesses will select this form of reporting.

Audited financial statements are the highest level of assurance services than an accountant can provide. The goal of an audit is to provide reasonable, but not absolute, assurance that financial statements are fairly presented in accordance with generally accepted accounting principles. In an audit, the accountant performs verification and substantiation procedures on the financial information being presented.

These procedures may include direct

August 2011

correspondence with creditors or debtors to verify details of amounts owed, physical inspection of inventories or inspection of minutes and contracts. Because the level of assurance is higher, an audit will cost substantially more than a review or compilation.

In summary this article presents a general overview and comparison of the compilation, review and audit engagements. Business owners will have to decide for themselves the appropriate level of assurance that is required or needed based on the company’s particular circumstances. A greater understanding of the alternatives that are available should help business owners and managers to make appropriate and cost-effective choices among these reports.

Tashia Batstone is a Chartered Accountant and the CEO of the Institute of Chartered Accountants of Newfoundland and Labrador. The Institute of Chartered Accountants of Newfoundland and Labrador is the regulatory body of Newfoundland and Labrador’s over 800 Chartered Accountants and students.

The Institute protects the public interest through the CA profession’s high standards of qualification and the enforcement of its rules of professional conduct.

13

Feature the long view Natural resources have always been a driver of this province’s economy, but with 35 per cent of the GDP resting on oil and minerals – both finite resources – government will have to think long-term for a sustainable future.

N

atural Resources Minister Shawn Skinner says the province is using today’s resource revenues to fund the future projects that will stabilize the province’s economy for the future.

“We understand that the oil and gas and the minerals do have a shelf-life and because of that we are trying to use the revenues from that – as per our energy plan – to develop our renewable resources.

So you’re seeing a lot of time and attention being paid to the Lower Churchill,” he says, describing the falls as a legacy resource. “We have great potential and we just need to continue to manage long term … understanding that we have a finite time here to do this right and make the right decisions now that don’t hurt us later.”

30 Last year the province announced that the billionth 25 barrel of oil was extracted from the offshore fields. With 20 three billion more barrels of discovered resources and an 15 estimated six billion barrels of undiscovered reserves, Skinner says this is the time to 10 push for more exploration.

“It gives you a sense of, you 5 need to be planning, and you need to be managing, and you 0 need to understand the cycles of these things. And so we did a lot of exploration early on … we have plateaued, but during the production and plateauing phase we didn’t do

Natural Resources Minister Shawn Skinner. a lot of exploration. We need to get back to that now to be able to tap into some of the reserves that are out there,” Skinner says.

“We are trying to do more exploration, trying to make more exploration happen and trying to get companies to do more

exploration, because we know that there’s more out there.”

Economist Wade Locke recently released a report suggesting the province, should it continue on the path it’s currently on, would be deep in debt inside 10 years, with little to no oil reserves left to depend on for revenues.

Skinner says the report was certainly a warning for government, but that it doesn’t intend to continue spending in the future like it has in the last five years. He says government spending was inflated by a need to replace infrastructure and invest in future projects like the Lower Churchill.

“The legacy fund, I would suggest, is not a bank account you just put money into … it’s actually the development of a revenue stream and that revenue stream is the waters flowing through the Churchill River on the Lower and Upper Churchill as the time moves on.”

Meanwhile, the resources sector is facing a huge shortage of labour that’s likely to be the biggest problem facing all businesses the province in the coming years.

14

E xploratory

D elineation

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

1968

1966

N u m b er o f W ells

Total Wells Drilled Offshore Newfoundland (as of September 15, 2007)

D evelopm ent

For further information on each of these wells please see the C-NLOPB’s website at http://cnlopb.nl.ca

August 2011

Business News

Feature the long view But when it comes to natural resources, there’s a second, just as serious, challenge to consider.

As more areas are developed to remove natural resources, Skinner sees the competing interests over the use of land as a major hurdle.

Whether its mines affecting hunting outfits and berry picking or pipelines competing with watersheds, there will have to be compromises made to keep a balance, Skinner says.

“You can’t satisfy everybody fully,” Skinner says. “People have different views of how we should use our lands, and our water and our resources. Be it trees, mines, whatever, we need to discuss how best that needs to be done to the benefit of the people of the province.

Economically and socially.”

says admitting that the biggest challenge the mining industry faces in the coming years will be a shortage of employment.

There are other issues facing the mining industry and mining towns in particular, Skinner says, including the quality of life, health care, education and other infrastructure available to the workers who could be participating in a fly-in, fly-out

mined, mean the industry will last for quite some time.

“It’s going to be decades yet before we run out of minerals.”

FORESTRY: Getting back on its feet After two devastating mill shut downs, the forestry industry in this province seems to be seeing some success again for the first time in several years.

“There’s no doubt we’ve had a bit of downturn in the forestry, but what we’ve done as a government is make investments and worked with some local saw millers to increase their capacity No.1 and modernize their production facilities,” Skinner says. “… They can become more competitive, to be able to do more and provide more diversity to the market.”

Existing mills are currently selling MINING: Plugging along lumber here and in other provinces, but they’ve also started producing Mining in this province is relatively pellets as a fuel source to other stable right now, with 12 operators An artist’s rendering of the future Hebron project. export markets including Europe. currently producing ore. Mineral As well as existing saw millers, the shipments here are worth about $5 billion situation.

The province is in talks with province is currently considering two new a year and Skinner is confident that the towns, many in Labrador, to discuss the start-up mills, one in Labrador and one on industry will continue along those lines for needs of some of the mining companies the west coast of the island. the next number of years. and what kinds of Two more investments will need AGRIFOODS: Need to tap potential deposits are to be made in roads, The province hasn’t reaped the potential likely to be sanitary services etc. available from the agrifoods sector here, “I think it’s a great position mined within Other considerations Skinner says. we’re in. It’s a great time the year, will be where the “We see it as something that we haven’t including the that we’re in. We have great workforce is coming even touched the potential. We only Lab Mag Iron from, where they’ll produce something like seven or eight per potential and we just need to Ore deposits in be housed, whether cent of our food here. I was shocked when continue to manage long term Labrador and there will be a settled I heard how low it was and I’m told by the gold-copper … and understanding that we community with people we can do a lot more,” he says. deposits at families, schools and The province announced a $250,000 have a finite time here to do Rambler Metals heath care, shopping investment in the Our Farms, Our Food, this right and make the right Ming mine site and recreational Our Future – Agriculture and Agrifoods in Baie Verte. decisions now that don’t hurt opportunities.

Strategy in a recent budget.

“I think if we Either way, Skinner One of the biggest challenges for us later.” continue on the says in the last six agrifoods in the province is a lack of land path that we’re months he’s become availability, but Skinner says the province on there will be quite assured that is working on that too in its attempts to very positive news and good employment the mining potential in this province, free up land and offer contracts to clear and from it. These are intensive industries in combined with current deposits being level it for farming uses. terms of human employment,” Skinner – Alisha Morrissey *All photos, graphics courtesy of the Department of Natural Resources, Government of Newfoundland and Labrador Business News

August 2011

15

Keeping Current around the board DH_atlantic_DownhomeCPM1 2/14/11 5:07 PM Page 1

Our more active members – Lori Coleman, Bruce Fancey, Mike Gough, and Amy Tulk – were one of two teams nominated for and winning the team spirit award.

Jon Drover cuddles with the all-natural lawn mowers at the CIBC-sponsored hole.

This means an advertisiment in Downhome will reach over 108,000* of your potential customers in Newfoundland and Labrador. And with one of the lowest CPM (cost per thousand) in the industry it’s simply the best advertising value for your dollar.

www.downhomemedia.com *Based on 40,174 paid circulation, 4.9 readers per copy. CCAB Audit September 2009

16

The Sheraton team shared the team spirit prize for their matching uniforms. At least the shower caps were a good idea.

August 2011

Business News

Keeping Current around the board

Our CEO and our title sponsor Cabletec, get twisted up with some other golfers.

After a while it was too damp to play Twister, but we did get these guys to pose under their umbrellas before we brought the game inside. Special thanks to our past chair Bruce Templeton for taking the Twister shots!

Some golfers couldn’t stand the wet weather and went in for the afternoon, but others stayed out on the course through the worst of it.

Business News

August 2011

17

Keeping Current around the board

Thanks to all our sponsors, who provided us with the wonderful prizes, gift bag goodies and great attractions on the links.

The British Group golf team won the overall tournament taking home the big trophy along with bragging rights. L-R: Dave Connolly, Dan Barber, presenting the trophy Paul Thomey, Terry Reardon, and Blair Connolly.

BRENKIR HAS PROVIDED QUALITY SAFETY AND INDUSTRIAL PRODUCTS TO THE OFFSHORE, CONSTRUCTION, AND HEAVY INDUSTRIES FOR OVER 25 YEARS.

SERVICE IS OUR #1 PRIORITY. MOUNT PEARL 15 GLENCOE DRIVE DONOVANS INDUSTRIAL MOUNT PEARL, NL T: 709.368.4656 F: 709.368.4658 E: SALESMP@BRENKIR.COM PLACENTIA 71-77 BLOCKHOUSE ROAD PLACENTIA, NL T: 709.227.1766 F: 709.227.1617 E: SALESPL@BRENKIR.COM MARYSTOWN P.O. BOX 1298 203 McGETTIGAN BLVD. MARYSTOWN, NL T: 709.279.2238 F: 709.279.3000 E: SALES@BRENKIR.COM

For more photos from our many events, check out our Facebook page.

And don’t forget to “Like” us while you’re there to be first to get the latest business news, policy updates and information on our upcoming events.

TOLL FREE: 1.888.295.9191

WWW.BRENKIR.COM

18

August 2011

Business News

Keeping Current around the board

Our Chair Jo Mark Zurel recently sat down with the Ambassador of the Republic of Indonesia, Her Excellency Dienne Moehario to talk about partnerships on labour and hydroelectricity.

Mike Volker, Canadian angel investor of the year, talked about the importance of investing, specifically in green projects.

Comfort, convenience and a quality you can trust.

Pool

•

Fitness Centre

•

Hotel Suites

•

Business Floor

Downtown Corner Brook • 1-800-399-5381 • www.greenwoodinn.ca

SIZE UP THE COMPETITION.

As always our luncheons are a great place to connect with other Board of Trade members for a little networking before the meal. Have you booked your tickets to our next luncheon in September?

Business News

CHARLOTTETOWN FREDERICTON HALIFAX MONCTON SAINT JOHN ST. JOHN’S STEWARTMCKELVEY.COM

August 2011

19

Keeping Current around the board

We saw a few whales playing …

Photo opportunities all around.

and a few birds nesting …

Over the side

while Loyola O’Brien our tour guide sang us a few tunes and told a few yarns. Thanks O’Brien’s Boat Tours for taking our members out on the water for a great mixer.

Even when there was no wildlife around, it was nice to just be on the water.

For more photos from our many events, check out our Facebook page. And don’t forget to “Like” us while you’re there to be first to get the latest business news, policy updates and information on our upcoming events.

20

August 2011

Business News

Membership members in the news London (and beyond) calling It takes the same amount of time to travel to Grand Falls-Windsor as it does to London, England!

How so?

Although by two very different modes of travel, a direct flight from St. John’s to London Heathrow U.K. takes only five-hours. For the second year in a row, Air Canada is offering daily non-stop seasonal service between St. John’s and London Heathrow. This direct flight began May 26th and will run until September 26th, just in time for the peak summer travel season. This is the only non-stop service between Newfoundland and Labrador and Europe and provides a fast and efficient way of travelling to London and beyond. Air Canada flight AC822 departs St. John’s at 22:00, arriving in London at 06:35, and flight AC823 departs London at 13:00, arriving back in St. John’s at 15:00. These flights are timed to offer convenient connections to and from several European cities including the frequently traveled cities of Aberdeen and Stavanger by oil industry executives, particularly important with impending major resource developments like the Hebron project. Support from local business and leisure travelers for this route will enable this service to resume next year with the ultimate goal of eventually extending beyond the summer season.

Award-winning design Several Board of Trade members have been honoured with the awarding of the 27th annual Southcott Awards.

The awards are handed out each year in recognition of buildings that are carefully restored or preserved.

The Board’s members who were awarded are; The Javelin Building on Water Street, aka The Brother TI Murphy Centre, which was restored by Ron Fougere Architects, with the interiors by PHB Group, and developed by Marco Services and Killick Capital.

Business News

Shipyard and Cow Head facilities, North Atlantic’s Come By Chance oil refinery, Exxon Mobil’s Hebron GBS Project at Bull Arm, the Vale Inco nickel plant at Long Harbour, and manufacturing and transportation ventures at Argentia.

For more information or to register please contact the Chamber at (709) 227-0003.

Javelin Building

Major milestone The St. John’s Board of Trade

The Tower Corporate Campus aka Littledale was restored by J.G. Cahill with landscape design by Tract Consulting. congratulates its member company Triware Technologies on their 20th anniversary in business. Triware held a reception for their clients and partners to honour the anniversary recently. For 20 years Triware has been a leading tech consulting firm in this province with special focuses on technological support.

Congratulations Triware.

Littledale Other winning restorations or designs were The Bonavista Loyal Orange Lodge #7, 2 Willicott’s Lane and the Shamrock Farm/Elaine Dobbin Centre for Autism.

The new Heritage Craftsperson/ Tradesperson Award was given to Jim Youden.

Headed down the shore?

The Placentia Area Chamber of Commerce is gearing up for its annual tradeshow and conference, it’s biggest to date.

The Placentia Bay Industrial Showcase will go ahead from Sept. 27 to 29 in Arnold’s Cove, Long Harbour and Placentia.

The event will focus on growing list of industrial activities in the vicinity of Placentia Bay and how to facilitate industrial development in the region.

Chamber President Darrell Clarke says topics at the conference will include Kiewit and Sons plans for the Marystown August 2011

First oil Naclor Energy recently announced that its Hibernia South Extension Unit well has produced first oil.

Nalcor Energy Oil and Gas holds a 10 per cent working interest in the development, operated by ExxonMobil Canada Properties.

“Seeing oil flow from the first Unit well at the Hibernia South Extension, along with production from the White Rose Growth Project, are key to supporting our growth as we begin to see increased revenue from our oil and gas investments – a benefit to the entire province,” said Jim Keating, Vice President, Nalcor Energy Oil and Gas in a statement.

In addition to the Hibernia South Extension, Nalcor is a working co-venturer in two other offshore developments: the White Rose Growth Project and Hebron project.

21

Membership members in the news Full steam ahead Marine Atlantic has launched and is continuing its first full summer schedule with its renewed fleet and added amenities.

The summer schedule started on June 17 and will continue until the fall. This year the ferry service has an increase of 25 per cent capacity and promises more reliable service for passengers.

CASE gave MUN a gold award for Best Institutional Relations Publication for its research report, “The Shining: Research Stars 2010,” a silver award in the Best in Design category; a gold in Best/Brochure/ Newsletter/Flyer, silver in Best Print Ad or Poster, and a bronze award for Best Photograph. MUN’s other silver award from CASE came in the Individual Student Recruitment Publications category for the

2010 student recruitment view book, “A Zagger’s Guide to Memorial University.”

“Wish You Were Here: President’s Report Highlights 2010” took home a gold award for Best Institutional Annual Report, and a video campaign to promote distance education called “The Course of Choice” won a silver award for Best PR/Marketing/ Communications Initiative.

Correction Marine Atlantic says the schedule was developed with the interests of business and tourism sectors in mind. More changes will become evident in the coming seasons as Marine Atlantic continues with its five-year renewal plan.

In last month’s edition of the Business News, a photo of Derek Sullivan, by Shane Kelly, appeared in the Member News section without attribution. The St. John’s Board of Trade regrets the error.

Landells wins award Congratulations to the Landells Clinic which was recently awarded the 2011 Consumer Choice Award for Cosmetic Surgery for St. John’s and the surrounding regions. The clinic is thanking its clients and staff for helping it to win the award.

“We have come a long way since Dr. Landells first added cosmetic dermatology to his medical practice a half day a week back in 1998,” says an e-mail newsletter thanking the clients.

MUN marketing wins more awards Memorial University’s marketing team has been taking home some serious hardware from national and international awards shows.

The Council for the Advancement and Support of Education (CASE) , a Washington, D.C. based organization representing communications, alumni and marketing professionals at universities worldwide, awarded MUN a gold and two silver awards in its Circle of Excellence Awards program.

CASE recently recognized MUN with five awards — two gold, two silver and a bronze — in its 2011 Prix d’excellence awards.

22

           

  

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        

     



August 2011

Business News

Membership industry news Labour market update Given the number of job opportunities becoming available in the next few years – an estimated 70,000 – local businesses must create a business environment that is competitive globally. The Board of Trade suggests potential starting points for solutions, including: Mobile workforce – making the movement of labour more efficient and effective via a provincial transportation strategy; Extending the workforce lifespan – policies that make it easier for retirees to remain in the workforce if they choose or serve as mentors and transfer skills to younger workers; Repatriation – concentrating on recruiting expatriate residents who are familiar with our culture, climate and economy to help address near-term challenges; and, Increasing participation of underrepresented groups – looking at effective and efficient ways to engage people who have skills to offer but haven’t had much attachment to the labour market in the past.

Advocacy win in energy The St. John’s Board of Trade advocated for and got national support for a resolution that called on the federal government to work with the provinces and territories to develop a clear, forward-looking national policy on Canada’s electricity energy infrastructure needs in as timely a manner as possible. The federal government recently talked about developing such a plan. Some benefits of a national strategy would include: • • •

Unlocking new clean and renewable power sources, Increasing reliability and security of power supply, and Facilitating interprovincial trade and transmission of power.

A New Dawn A major milestone towards the Muskrat Falls project has been passed with the Labrador Innu Nation signing on to the Tshash Petapen (New Dawn) Agreements with the province.

The agreement outlines the benefits of the project to the Innu Nation, and includes clauses that ensure priority employment and business opportunities for the Labrador Innu, a structured royalty regime, and compensation/redress for the impacts of the Upper Churchill on the Innu lands.

The land claims agreement-in-principle is a non-binding agreement that will form the basis for negotiating a final land claims agreement or treaty. Upon signing it will be released to the public. It will define Innu treaty rights and where those rights will apply in Labrador.

Encouraging immigration The St. John’s Board of Trade welcomes more than $500,000 in funding for 22 immigration initiatives throughout the province.

The province paired with the Association of New Canadians on the Settlement and Integration Program, designed to help newcomers fully engage in the social, economic, and cultural aspects of Newfoundland and Labrador.

The Association for New Canadians uses the funding to offer programs like Career Connections, Diversity Training and English as a Second Language.

Successful immigration boosts the province’s labour market and leads to more diversity and innovation. Research shows that places that integrate and accept new immigrants have a higher level of economic growth and development, have

November 1–2, 2011

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higher levels of competitiveness, and are simply more innovative. Newfoundland and Labrador is full of welcoming, vibrant communities that offer a good home for newcomers from many places.

The Board also welcomes the partnership process: providing on-the-ground organizations with targeted funding and letting the community deliver programs.

This is the kind of method that can create a strong and sustainable economy throughout the province.

Why a transportation strategy?

The Board is advocating for a provincial transportation strategy, we believe the benefits of such a strategy would include: • better development of natural resources in remote areas; • giving our skilled workforce more mobility, matching skills with opportunities; • leveraging geographic location, which naturally links with the U.S., Europe and the arctic; • enhancing emergency response, public transit and the environment; and, • planning for long-term use of both public and private assets all over the province.

“Possibly the main argument for a transportation strategy is this: if you don’t have integrated, efficient and effective transportation links, you’re putting a ceiling on your own economy,” says Board Chair Jo Mark Zurel.

St. John’s, Newfoundland

Offshore Oil and Gas CONFERENCE

Join Offshore E&P experts from Canada, Brazil, Mexico, the United States and the United Kingdom

Get the tools you need to drive the future of this growing market!

Register Now • 1-877-927-7936 • CanadianInstitute.com/offshore Priority Service Code: 300AX12

Business News

August 2011

23

Membership MEMBER PROFILES Atlantic DataSystems (ADS) is a leading technology consultancy and provider of enterprise resource planning (ERP) and customer relationship management (CRM) software. The largest Sage Software Business Partner (Sage Accpac and Sage BusinessVision) in Newfoundland and Labrador, ADS has over 30 years of experience providing ERP solutions and IT services to growing businesses throughout Canada. These services include iSupport, a solution that gives small businesses access to monitored IT infrastructure and network services, traditionally reserved for companies with large, in-house IT departments.

Headquartered in Newfoundland with recent expansion into Nova Scotia, New Brunswick and Ontario, our team of experts is committed to helping small to midsized businesses leverage technology to achieve their goals.

For more information and access to free product demos, visit

Weight Watchers has been supporting members in weight loss and maintenance for 40 years in Newfoundland and Labrador. We have recently relocated our major centre in St. John’s to the upper level of the Village Mall. We have doubled our space, increased our staff and extended our hours. This gives us three locations in St. John’s. Weight Watchers continues to be the leading weight loss and maintenance organization as we are built on the four corner stones of: healthy eating, moderate activity, behavior modification and group support.

Contact: Marlene Bayers, 747-0136 weightwatchers.ca 1-800-651-6000

www.atlanticdatasystems.com.

EEM inc. is a Canadian sustainable management consultancy offering leadership in sustainable business practices to a variety of industrial and institutional clients across Canada and worldwide.

For almost 20 years, president and founder Paul Maclean has been providing environmental and social sustainability consulting services to more than 100 clients in the private, public, and not-forprofit sectors.

EEM’s 15-person firm helps its clients turn sustainable development into business as usual by bridging the gap between strategic planning and implementation of operational solutions.

For more information contact: Marsha Power Slade, Senior Consultant Social performance and communities EEM Inc. - NL 24

CWT Harvey’s Travel is proud to be one of the few NL based companies with extensive operations outside the province -operating 22 branches throughout all 4 Atlantic Provinces.

We are also proud of our staff stability - average seniority is over 16 years with 49 employees with over 20 years and an employee turnover rate of less than 3%.

We participate in the rigorous Towers and Watson Employee engagement and satisfaction survey and in 2010 scored over or at the Global High Performance Norm (top 3%) in all categories (> 5,000 companies surveyed).

CWT Harvey’s Travel combines strong local knowledge and expertise with the industry leading technology and buying power of our partners, Carlson Wagonlit Travel. Truly, we combine local presence and global power.

NOIA is a leading advocate of the development of East Coast Canada’s oil & gas industry. With 500 members – and counting – in Canada and around the world, we are Canada’s largest offshore petroleum association.

NOIA’s core members provide products and services for the petroleum industry and associate members represent operators, trade associations, educational institutions and government bodies. Our constant growth in membership parallels the staggering growth of the oil & gas sector in the region.

We keep our members in the know by offering market intelligence, business opportunity information, updates on industry and business trends, as well as innovative networking events and marketing opportunities.

Learn more at noianet.com

That Pro Look has been serving sports fans in the Greater St. John’s area, and indeed all of Newfoundland and Labrador, since first opening its doors nearly 16 years ago. We have built our success as an award winning business in Newfoundland with fair pricing and spectacular customer service. Both the quality and quantity of our merchandise is second to none so we created this little home on the web to better facilitate your shopping experience.

Visit us in the lower level of the Avalon Mall, online at www.thatprolook.com or call us at 709 - 739 - 5665

cwtharveystravel.com

August 2011

Business News

Membership new members C.I. Communications Corp. Canada Andrew Cashin, Division Manager - Industry 1329 Bay Street Toronto, ON M5R 2C4 P: 416-927-7936 F: 416-927-1563 a.cashin@canadianinstitute.com

Higher Talent Susan Power, Owner 15 Topsail Road St. John’s, NL A1E 2A6 P: 709-730-4135 susanpower@highertalent.ca

DRAMIS Network Cabling Ltd. Cliff Roberts, Branch Manager 7 Austin Street St. John’s, NL A1B 4C1 P: 709-237-6400 F: 709-739-7800 croberts@dramis.com

O’Reilly’s Irish Newfoundland Pub Brenda O’Reilly, Owner Address: 13 George Street St. John’s, NL A1C 1M3 P: 709-757-3806 F: 709-722-3531 brendaoreilly@nl.rogers.com

We missed your referrals!

Refer someone who joins the St. John’s Board of Trade and receive a gift certificate or valuable discount from a program sponsor.

Thank you to last month’s sponsor...

Business News

August 2011

27

Upcoming Events august events BUSINESS MIXER Co-hosted by

LUNCHEON Presented by Innovation: Decide. Discover. Do.

You are invited to a BBQ mixer.

The Suncor Energy Fluvarium and COSTCO Wholesale is co-hosting this event, providing Board of Trade members with the chance to meet other members, exchange ideas, do business and meet new friends and colleagues!

Where: The Suncor Energy Fluvarium When: Thurs., Aug. 11 Time: 4:30 – 6:30 p.m.

Cost: Included as a benefit of

membership To confirm your attendance please contact Wanda at 726-2961 ext.9 or email events@bot.nf.ca

28

19th Annual

Business Excellence Awards

Come hear Jean-René Halde, president and CEO of the Business Development Bank of Canada (BDC), tell the stories of three entrepreneurs – including a Newfoundlander – who have made their businesses more competitive – and profitable!

Where: Sheraton Hotel Newfoundland When: Thurs., Sept. 8 Time: 12:30 p.m. Networking

1 p.m. Luncheon Cost: $79 non-members

$39.50 member discount

August 2011

It’s time to start thinking about your nominations for the St. John’s Board of Trade’s Business Excellence Awards.

The Board’s most prestigious event of the year, the Awards honor the outstanding business achievements of our members. On Dec. 7, 2011 we will recognize their successes at a luncheon where awards will be handed out in several categories.

For more information or to request a nomination form please contact Shari at 726-2961, ext. 6 or email spalmer@bot.nf.ca.

Business News

CONSISTENT PROFITS CONSISTENT BUSINESS

Invest in one of Canada’s most profitable retail franchises, in St. John’s.

There are 21 million vehicles in Canada and drivers expect them to last longer than ever before – so they come to Mr. Lube. As Canada’s dominant leader in preventive automotive maintenance, our franchises consistently deliver profitability – and it shows.

With over 100 locations nationwide and a focus on Atlantic Canada, there’s never been a better time to own and operate a Mr. Lube. Ready for a change?

For more information, call Lori at 1-877-258-0858 to book a meeting with our representative in early August. mrlube.com