VOLUME 26, NUMBER 2, 0834-2011
FEBRUARY, 2011
Marine Atlantic
Into the future
IN THIS ISSUE: •Banking trends •RRSP season •Response to Igor
Mortgage and Financial Planning Advice.
Commercial and Personal Insurance Needs.
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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:
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CHAIR’S MESSAGE FEATURES
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KEEPING CURRENT
Alisha Morrissey British Group of Companies Roxanne Abbott
ST. JOHN’S BOARD OF TRADE EXECUTIVE Jo Mark Zurel Steve Power Denis Mahoney Sharon Horan Derek Sullivan Sherry Walsh
COVER STORY
MEMBERSHIP
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Chair Senior Vice-Chair First Vice-Chair Second Vice-Chair Immediate Past Chair Secretary-Treasurer
BOARD OF DIRECTORS Kim Keating Dallas Mercer Jeff LeDrew Bill Mahoney Brenda O’Reilly Karen McCarthy Dorothy Keating Des Whelan
STAFF Paul Thomey Jennifer Ryan Shari Palmer Margie Davis Alisha Morrissey Craig Ennis Wanda Palmer Sherry Ryan
Chief Executive Officer Controller 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
Business News
Febraury 2011
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Cover Story new vision for marine atlantic What do the words Marine Atlantic mean to you?
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erhaps they conjure up images of a ship, a captain, or rolling seas. For many, you might think of exhausting hours of business travel. For others, you may recollect fond childhood memories of a summer vacation with your family. For some, the words Marine Atlantic evoke negative images and feelings. And, according to CEO Wayne Follett, “That’s reality; Marine Atlantic has legacy issues concerning the capacity and reliability of our service.” This can, in large part, be attributed to deficits in vessels and terminal buildings, information technology and docks, customer service and customer contact. “What’s more, these issues have made us an easy target for those with agendas who publicly criticize our Corporation and
our service. As a result, we are currently suffering under a cloud of negativity and an accountability microscope.” As such, it’s not likely the words Marine Atlantic prompt descriptors like modern, efficient, and reliable. “But we’re trying to change all that,” said Follett. “Five years from now, we’re confident the words Marine Atlantic will evoke a positive reaction for our customers and the people of Newfoundland and Labrador. You’ll think of good customer service. A safe and reliable journey. A modern and efficient company.” That’s because Marine Atlantic is breathing new life into its Corporation. “We built a case for reinvestment in Marine Atlantic from our shareholder, the Government of Canada. In Budget 2010, we received the resources needed to revitalize our Corporation.”
MV Blue Puttees Captain Harvey Durnford and CEO Wayne Follett in front of the ship in Bremerhaven, Germany. December 2010 Not only did the Crown Corporation receive a significant amount of funding to the tune of $900 million ($520 million of which was new funding), it also received a five-year commitment (compared to the usual annual block of funding). And according to Follett, that’s a big deal. “The multi-year commitment allowed us to strategically plan ahead and look to the future like we’ve never done before.” In 2011, Marine Atlantic and its customers will welcome two new vessel additions to the fleet, which will amplify the quality of its service. The modern and efficient fleet–two new sister vessels, the MV Blue Puttees and the MV Highlanders; its cruise ferry, the MV Atlantic Vision; and the MV Leif Ericson, which is also undergoing a mid-life refit – offer customers increased capacity, improved reliability, greater comfort, and better service. “We see the new fleet as a tangible symbol of change and renewal ongoing in our Corporation,” said Follett. “It’s the face for the new Marine Atlantic: a modern and efficient company with a high level of customer service.”
MV Blue Puttees at the dockyard in Bremerhaven, Germany, December 2010 2
February 2011
Continued on page 4...
Business News
Chair’s Message balancing budgets
Chair, Jo Mark Zurel
It’s been tough to balance budgets recently. In your own household budgets, the cost of every essential from gasoline to milk is on the rise.
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n the city we live and work in, the costs of construction have taken a toll on development projects and infrastructure improvements, and our city taxes continue to rise. Provincially, in our fall financial update, it appeared that a massive deficit had rolled over into the black - but not by much.
Newfoundland and Labrador is projected to once again lead the country in growth and the province’s finances seem to be in good order thanks to healthy oil revenues. However, the projected four per cent growth in GDP isn’t sustainable in the long term. Business News
Federally, the Conservatives have admitted there will most certainly be deficits in coming years. At least until 2015. It’s been a hard year or two financially for many, the federal government being no different, but the message coming out of Ottawa headed into this budget is do as we say, not as we do. As well as admitting that it may take longer than five years for the federal government to return to handing down balanced budgets, federal Finance Minister Jim Flaherty was recently quoted calling on all provinces to hand down balanced budgets within the next five years. It would be funny if it wasn’t so serious. As a Board we have advocated the federal government to get back to balanced budgets, sooner rather than later. Whether in your own household or in your business, we all know that in tough times careful spending, balanced budgets and innovative thinking are a good way to weather the storm. We’ve suggested just that strategy to the federal Finance Department. We expect to see the end of stimulus spending this year and if there is continued improvement in the overall economy, we’d like to see the federal government file balanced budgets as soon as possible. We all saw what happened in the mid1990s when the federal government had to act to stem the tide of a string of deficits. We’ve suggested that by taking relatively small corrective actions now, the federal government can avoid a repeat of such drastic measures. From a Board perspective, we’ll monitor the situation and participate in the federal budget consultations. Meanwhile, this province shouldn’t have much trouble meeting the federal request that we balance our budget within five years. Newfoundland and Labrador is projected to once again lead the country in growth and the province’s finances seem to be in good order thanks to healthy oil revenues. However, the projected four per cent growth in GDP isn’t sustainable in the long term. February 2011
And to restate my personal mantra, without further diversification the province’s natural resource-based economy, this growth simply isn’t sustainable. I’d again like to push the province – and for that matter the federal government – to invest in innovation, technology and research and development. The truth is, investments in the future need to be made. Provincially, federally and even in your own investments, everyone needs to take action today if we want a prosperous tomorrow. Jo Mark Zurel is a Chartered Accountant and President of Stonebridge Capital Inc., an investment company. Until recently, Mr. Zurel was Senior Vice-President and Chief Financial Officer of CHC Helicopter Corporation, helping to build it into the world’s largest helicopter operating company. He’s also a director of Major Drilling International Inc. and Newfoundland Power Inc., director on the board of Fronteer Gold., as well as a board member of several private companies. Mr. Zurel holds a Bachelor of Commerce degree from Dalhousie University. Mr. Zurel’s not-for-profit activities include chair of Junior Achievement of Newfoundland and Labrador and governor for the Newfoundland and Labrador Business Hall of Fame. He is also governor of the Atlantic Provinces Economic Council, chair of a Canadian Red Cross fundraising campaign and board member with the Newfoundland and Labrador Angel Network (NLAN).
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Cover Story NEw vISIoN for marINE aTlaNTIc Continued from page 2...
Of course, this change won’t happen instantly. The problems at Marine Atlantic did not arise overnight. The Corporation’s accumulated defi cits – in vessels and terminal buildings, information technology and docks, customer service and customer contact – were built up over many years. And it will take time to modernize. But the Corporation has begun the process, and is well on its way to becoming
a modern and effi cient company. “We have worked with our customers, our employees, and other key stakeholders through the recent changes we have made, and will continue to do so over the coming months and years,” said Follett. “Their input is a key component to the revitalization of our Corporation.” Changing the Corporation, though, is only half the battle. “We must also change the attitudes of our customers and the people of Newfoundland
and Labrador,” explained Follett. “We can manage capital projects, and modernize technology and business practices; but changing perceptions will take more time.” Marine Atlantic hopes to jumpstart the shift in attitudes by demonstrating its commitment to renewal and implementing change. Many customers have noticed some of the changes over the last few months. New faces in the executive and management teams. New communications tools. A new division of the Corporation dedicated solely to improving the customer experience. And perhaps, as the Corporation introduces its revitalized fl eet during 2011, customers will continue to notice further positive change. More amenities and cabin space onboard the vessels. Fewer mechanical delays and cancellations. Better overall service. Later this year, if you are asked what the words Marine Atlantic mean to you, you might have a different notion altogether. And it will include descriptors like modern, effi cient and reliable.
Did you know?
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February 2011
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In 2009, an estimated 27 per cent of all passengers, 50 per cent of all freight and 90 per cent of all perishable goods between the Island of Newfoundland and the Canadian mainland were carried by Marine Atlantic vessels.
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Each and every year the Government of Canada provides a subsidy of over $100 million to operate the service.
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In 2009, it cost approximately $220 million to provide the service and customers’ revenues accounted for only $90 million.
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This year, we transported more commercial units than ever before in our corporation’s history.
Business News
Feature tailored for you Banking products are basically all the same, it’s how you use them that matters
your ideal number, she says, explaining that everyone has a different plan for what to do in their retirement. Deanne Chaulk, personal banking manager for western Newfoundland with BMO, says her bank is focused on small business owners’ retirements, offering options that allow them to save more. “We know banks in general can do a better job of effectively advising small business owners on their banking needs. Everyone succeeds when complex banking options - payroll, cash management, payments, credit and investment services are explained and make sense,” she says. “Our motto is to be the bank that defines a great customer experience and our bank has been there for small business customers consistently - in good times and in challenging times.”
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n a technological world, where you can get a mortgage, find a mutual fund or start contributing to your RRSPs online without the help of a banker, banks have had to go back to their basic functions and offer specialized services to keep current. Sean Munro, RBC’s regional vicepresident in Newfoundland and Labrador, says RBC has focused on specialized advice recently. “We all pretty much have the same products and services, especially for retirement, and education savings and those types of things. So it really comes down to how those products are best used by the clients through that tailored advice and that’s what everyone does differently.” When it comes to business clients, tailored advice is ideal, Munro says, because these are the clients with the least amount of time to do research about what’s best for them. “(They) are so focused on running their own business they just don’t have the time, some of them don’t have the interest, and a lot of them don’t have the knowledge in this area because they focus so much of their time in their own business.” But the key piece of advice any banker will give you is to start saving, Munro and others say. Helen Quinlan-Hainse, vice-president, NL for Scotiabank, says her bank has gone back to basics with its recent campaigns trying to encourage automatic savings. “Based on surveys that we have done the majority of Canadians particularly Atlantic Canadians didn’t have an automatic savings plan and now we’re into the ‘Invest for Your Future Because No One Else Will,’ (campaign),” she says. “Atlantic Canadians are more likely, even more than the rest of Canadians, to think that they’re going to need less money to retire and 40 per cent of Atlantic Canadians think they will only need about $300,000.” Scotiabank will help you figure out if that’s
Business News
- Alisha Morrissey
February 2011
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Feature rrSP, SPrINg, SUmmEr aNd fall Investing doesn’t have to be a seasonal event
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lustery weather, turkey hangover and unrealistic resolutions are some traditional things Canadians experience at the start of a new year. RRSP contributions, however, shouldn’t be one of those winter experiences. Tamara Kelly, education coordinator at Credit Counselling Services of Atlantic Canada, says it’s simply easier to make regular payments throughout the year, avoiding investing all of a year-end bonus, or worse, borrowing to meet a contribution deadline. “Start small. None of us can put $200 or $300 aside a month right away,” she says, advising that people start with a small savings goal, meet it and slowly increase contributions over time. “You defi nitely have to plan it. It can’t be a whim.” Once you get into the habit of saving, Kelly says, you can see real growth.
it’s estimated that approximately 1,000 Canadians will turn 65 every day this year, many without any financial plan for their retirement.
“It’s a great habit to have and it provides a safety blanket,” she says. “It grows on you … just make sure that whatever goal you set for yourself is within your budget.” Bruce Templeton, an investment advisor with the JBT Financial Team, agrees that Atlantic Canadians need to invest throughout the year, but goes further, suggesting his clients start earlier in life. “We strongly encourage people to start as early as possible. I’ve shown 19 year olds who still look at me with starry eyes and say, ‘Sir you’re (kidding) me. I’m so full of university debt that I can’t think of this,’” he says, adding that if a 19 year old invested just $2,000 a year for eight years – totaling $16,000 – they could stop preparing for retirement. “At age 65 they’ll have $1 million. But if they wait until they’re 27 years old and they contribute for 39 years … they won’t catch up to the person who (started at) 19.” And though retirement may look a long way off at 19 or even 27, a recent poll by TD Waterhouse of boomers and preboomers, between the ages of 45 and 74, shows how quickly retirement creeps up on those who are unprepared. The TD Waterhouse Boomer Happiness Index released in January shows 65 per cent of those polled are worried their nest eggs will run out too soon. The index found that only 35 per cent have a fi nancial plan in place for their retirement – the
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February 2011
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Feature rrsp, spring, summer and fall lowest number of boomers in the country. Those polled said they plan to fund their retirements through Old Age Security and Canada Pension Plan (75 per cent), RRSPs (54 per cent) and company pensions (46 per cent). Just more than a quarter said they would fund their retirements by continuing to work, while another quarter said they hope to win the lottery.
Templeton suggests that anyone who can, should take advantage of retirement matching programs through their jobs, with the caveat that “employers are not there to look after your pension. “ … The other thing that we’re trying to say to people is that the rules have changed entirely. Parents and grandparents can remember 19 and 20 per cent Canada Savings Bonds, the interest rates at the
moment, that you can get on a fixedincome investment, are somewhere near three per cent,” Templeton says, explaining the value of money doubles when the interest rate is divided into 72. “At a three per cent interest rate it’s going to take 23 years for your dollar to become two.” -
Alisha Morrissey
Concerns and advice from boomers: When thinking about retirement, the top fears voiced by Atlantic Canadian boomers in the TD Waterhouse Boomer Happiness Index were: - - -
Keeping healthy and active (81 per cent) Having enough money to last through retirement (65 per cent) Maintaining their current standard of living (61 per cent)
The same boomers passed on advice for the next generation. Their tips are: - - - -
Start saving earlier (91 per cent) Pay off your mortgage faster (73 per cent) Save more money or invest in an RSP (66 per cent) Find employment with government or a company that offers a pension (66 per cent)
Source: TD Waterhouse Boomer Happiness Index
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February 2011
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Keeping Current PolIcy maTTErS
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he Board continually advocates for your needs at all levels of government. One of the primary roles the Board plays is in advocating on the use of public funds strategically. This includes investments which enable the business community to create employment and wealth. Some public investment helps meet the long term needs of the community by allowing businesses to sustain a competitive edge. Government funds, after all, are the funds of businesses and residents.
Municipal The Board’s position on municipal fi nances is clear – growth of seven to nine per cent each year is unsustainable. Businesses and residents have to support a city budget that has grown from $105 million in 2000 to $224 million in 2011. If the city budget grows at the recent rate of nine per cent, the 2012 budget will be $244 million, or $20 million more than 2011. As you see from the fi rst chart, taxation accounts for nearly $4 out of every $5 the city brings in. When the total city budget goes up, taxes go up. If historic rates continue and the city budget reaches
2011 City Revenues by Source
$244 million in 2012, this will mean approximately $15 million more coming from business and residential taxpayers. The second chart shows where the money goes in terms of functions that the city plays in delivering services. Development, which would play a signifi cant role in ensuring a sustainable and competitive capital city, receives three per cent of the city’s expenditures. The third chart shows where the city spends its money. At nine per cent of expenditures, capital, which can often contribute to a sustainable city by ensuring that infrastructure is in place for employment and wealth-producing businesses, is a relatively small expenditure.
Provincial In the lead-up to the provincial budget, expected in March, the Board brings you up to speed on what we are saying to government on your behalf:
What’s the best direction for your business? Do you want to grow through acquisition? Divest a portion or all of your business? Understand the value of your company?
2011 Expenditure by Object
Deficit/Debt There have been fl uctuations in surpluses and defi cits in recent years and while some debt has been paid off, the public debt is still high. Fiscal prudence pays off.
With a well-crafted strategy in hand, you’ll be better prepared to direct your company toward its ultimate goals. Great advice is out there. We bring it to your front door. For more information on how Deloitte can help make your business succeed, please contact Steve Bragg, CA ∙ CBV Vice President Financial Advisory Deloitte 709–758–5396 stbragg@deloitte.ca
Existing taxation regime The overall taxation system is very competitive across Canada; some improvements can and should be made, but the system is generally solid. The Board supports competitive taxation and wants government to stay on that track.
2011 Expenditure by Function
Or visit www.deloitte.ca
Payroll tax The payroll tax is not only a tax on job creation, but it gives other provinces a convenient point to raise when competing for business. Elimination of the payroll tax is good public policy that can be offset to some degree by increased employment, enhanced earned wages and other economic benefi ts. This long-term payoff is consistent with our fi scal prudence message and contributes to economic diversifi cation.
© Deloitte & Touche LLP and affiliated entities.
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February 2011
Business News
Keeping Current policy matters Post-oil challenges – demographics and diversification We have a collective responsibility today to pave the way for the future. Prosperity must be sustainable and renewable, driven and supported by a variety of industrial sectors. The demographic challenges of our aging population and the after-effects of out-migration must be recognized as a potential threat to the province achieving prosperity. We need to aggressively support diversification through direct investment, favourable taxation, and changing a mindset that failure today on the road to long term success is acceptable.
• Government would make this money back in taxes and other revenues in short order. Federal decision-making presence in NL • This is about more than jobs. Federal decision-makers here can more easily: understand our unique challenges, identify local opportunities, and be accountable for federal commitments.
• This province has a lower share of executive positions than our share of the national population and a low absolute number of federal executives, with no Atlantic regional headquarters. There has to be decision-making capacity in Newfoundland and Labrador.
Federal The Board is also advocating to the federal government in the lead-up to their budget, expected in February. Here are some highlights of what your Board is saying on your behalf. Debt payment and deficit reduction • This year’s deficit and the forwardlooking deficit projections are very troubling. We hope to see some specific and aggressive measures to get us back to black as soon as possible. • Making some structural changes to the costs of government would be well advised. Electricity transmission • Develop a clear, forward-looking national policy on Canada’s energy infrastructure needs in as timely a manner as possible. • Canadian businesses support a longterm and innovative plan for getting the most out of the country’s existing energy assets and infrastructure for the benefit of the whole country, whether at a provincial or territorial level they are a net purchaser or seller of energy. Air Access • The St. John’s International Airport needs $7 million to $8 million from the federal government to leverage $25 million, with the province and its users, to greatly increase service reliability and drive economic gain. Business News
February 2011
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PHOTOS BY- Keith Gosse/The Telegram
IGOR By the numbers • • • • • • •
200 communities affected 1,667 personal and small business applications for assistance were received by Fire and Emergency Services – Newfoundland and Labrador by mid-November Jan. 14 was the deadline for applications for assistance through the province’s disaster assistance program 70,000 estimated customers without power at some point during the storm 200 millimetres of rain fell on the Burin Peninsula in 20 hours 140 kilometre per hour winds raged in some parts of the province $700,000 was raised by the Red Cross in individual and corporate donations as well as in-kind contributions
Feature call and answer Local insurance companies respond to clients’ needs after Hurricane Igor
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n the dark quiet night of Sept. 20 the rain started to fall. Throughout the night the wind picked up and wailed against windows, rain pounded the pavement and people woke in their beds, startled and concerned about damage to their homes. Dawn broke. The weather did not. Hurricane Igor dumped hundreds of millimetres of rain on unsuspecting communities. Winds raged, tearing down trees, ripping off roofs and between the water and wind, entire homes literally slipped downstream. The muddy water filled basements and cars, oil tanks let go from their bearings in backyards, roads were swept away – as was a man. At least 30 communities declared states of emergency and hundreds of people were evacuated from their homes. For nearly a week, thousands were without power, were stranded in communities far from their families or jobs. But as the water receded and winds died down, people began to emerge from their homes and temporary shelters to see the true devastation left in Igor’s wake. The storm became the story of the year, tearing open people’s homes and lives. Hurricane Igor has been described as the island’s most disastrous storm ever, causing hundreds of millions of dollars in damage to private and public property, both insured and uninsured. The Insurance Bureau of Canada suggested late in 2010 that insured damages totalled more than $65 million, though it’s believed that total damages were closer to $120 million. Cal LeGrow Insurance was one company that dealt with several hundred claims. Jeff LeGrow, chair and CEO, says the days and weeks following the storm were busy for most insurance companies on the island. Emergency response teams flew into action and many firms brought in additional people to process claims and assess damages. Business News
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Feature call and answer One of the biggest challenges, LeGrow says, was trying to find people to actually do the repairs on homes and businesses. Most days in the insurance industry LeGrow says he tries to get the right coverage for clients at a good rate, but Igor was about showing the clients the value of those payments. Claims came in from everywhere to cover the damage caused by felled trees, high winds, sewer backups and water entering
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homes through broken windows, roofs and walls. Claims were not paid out, however, on flooding. The insurance industry in Canada excludes such damage, LeGrow explains. “That’s the frustrating part. When you have clients that you’ve been dealing with for so long and you’d like to help them, but you can’t respond to parts of their claim,” LeGrow says. “… In their time of need and in a crisis.” While business owners can pay a premium to be covered in case of a flood, homeowners can’t. It’s a reality LeGrow and many others in the industry would like to see changed, he says. “There is a great debate across Canada,” he says, adding that the question of how to fairly build it into insurance policies does need to be answered. The federal government does have a disaster financial assistance arrangement though there’s a lengthy process to be approved for funding, LeGrow says. Five months after the two-day storm ripped through the eastern portion of the island, most towns affected still aren’t fully recovered. Meanwhile, the Insurance Bureau of Canada is warning that there’s likely to be more severe weather events in coming years, meaning Igor probably wasn’t a onetime event in the province. “We never thought we would have such a great example in Hurricane Igor,” LeGrow says. “This was the most destructive storm we’ve ever had to date.” The next question, he asks, is how prepared are we for the next one? -
Alisha Morrissey
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PRODUCT: DESJARDINS & CO. SIZE: 5’’ X 6.625’’ February 2011 PUBLICATION DATE: FEBRUARY 2011 PUBLICATION: BUSINESS NEWS
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Business News
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2244
ext
2221
Jamie Clements B.Sc.
709-753-2025
Michael Abbott* Heather Adams ext
CA
2270
Amy Critch* BBA, RHU ext
2370
ext
2366
Paula Delaney ext
2216
Pamela Dawe* Amy Guy* CFP CLU CH.F.C. RHU Sales Assoc. Advisor Sales Assoc. Advisor
Raymond Monnier* Gerald O’Brien* CLU CH.F.C. RHU ext 2231
Darren Roche* B.Sc. RHU ext
2226
ext
2230
ext
2237
Monnier & O’Brien Financial Services Inc.
Ralph Rose* CFP CLU CH.F.C. ext
2227
Keith Wells* B.Sc.
ext
2268
ext
Scott Adams*
Wayne Bennett
B.Comm. CFP Upper Island Cove 709-589-3361 / 888-589-3361
2240
Lou Wells* Wells Financial Services Inc.
709-364-3400
B. Comm.
2256
ext
Brian Dinn*
Rick Johnson*
Bob Murphy*
Kirk Newhook
ext
2271
Robert Murphy Financial Services Inc. ext
2242
Sid Wells* CFP RHU ext
2223
2235
ext
B.A.Mus.
ext
2273
Andrew Young B.Comm.
ext
2229
10 Factory Lane Suite 2000 St. John’s NL A1C 6H5 Tel: 709-576-6243 Toll free: 1-866-539-4087 Cynthia Dias
Advisor Assistant ext
2246
Barb Forristall
Advisor Assistant ext
2232
Karen King
Advisor Assistant ext
2225
*Mutual funds offered by Sun Life Financial Investment Services (Canada) Inc. © Sun Life Assurance Company of Canada, 2011.
Tony McCarthy Carolyn Morgan
BA (Ed) M.Ed Advisor Assistant Licensed Admin. Asst. ext 2243
709-596-1358
Charlene Smith Advisor Assistant
709-589-3361 888-589-3361
Linda Tucker
Advisor Assistant ext
2233
Keeping Current around the board
Finance Minister Tom Marshall sat down for a frank and informative conversation with (R-L) Steve Power, Denis Mahoney and Paul Thomey in the lead-up to the 2011-12 Budget. The Board talked about fiscal prudence, even in relatively good times, as well as how to diversify the economy and address demographic challenges head-on.
We’ve moved … but not far. As you were unwrapping those Christmas packages, we were wrapping up, packing up and moving downstairs. The St. John’s Board of Trade is still located in the Paramount Building on Harvey Road, though we’ve moved our offices from the fifth to the third floor. We’ll be holding an open house to show off our new home later in the year. Please keep an eye to our events calendar for the details. We’d love to give you a tour!
Steve Power represented the Board at a roundtable with federal Minister of State Gordon O’Connor. He raised the priorities of getting federal budgets back to black, supporting business as the employment and wealth-creator of the country, and allowing energy to flow across provinces. 16
February 2011
Business News
Keeping Current around the board
Sharon Horan, Second vice-chair
Des Whelan, Director
President and founder of Fit for Work and Atlantic Orthotics Ltd.
President and CEO Keyin College Senior vice-president, M5 Marketing and Communications Inc.
FIT For Work and sister company MedServ, offer a multidisciplinary center operating from four locations with approximately 37 staff. While growing these businesses Horan continued her education and is a Canadian Board Certified Pedorthist. She’s also trained in Ergonomic and Injury Management and is a certified Key Assessment Specialist. Horan is also a committed volunteer participating in several local and specialized organizations related to her business.
Whelan has more than 15 years of experience in sales with a strong background in technology, management and human resources. Before taking on his role at Keyin College, Whelan spent seven years as a sales manager with CGS. Whelan is also quite involved in his community, sitting on several volunteer boards and committees.
Business News
February 2011
Karen McCarthy, Director
After spending 15 years in the public service, often working directly with former premiers Brian Tobin and Danny Williams, McCarthy now has a client base in the oil and gas, health, transportation, gaming, and retail sectors. An avid volunteer, McCarthy is involved with a number of industry specific and community organizations.
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We see the possibilities. As a process operator at Suncor Energy, Dean Cleaver knows that responsible development is key to Suncor becoming a sustainable energy company. He is one of more than 12,000 Suncor employees committed to making it happen. Seeing the possibilities is how Suncor pioneered the development of Canada’s oil sands. It's also how we approach other energy resources from coast to coast and beyond. Now, we’re applying the same energy, innovation and commitment to ensure our operations deliver social and economic benefits while minimizing environmental impact. See the possibilities for yourself – take a look at our record.
8
decrease in % Terra Nova’s GHG emissions from 2008
27
reduction in surface % water withdrawal at oil sands operations since 2004
1.2
$
billion actual and planned investments in new tailings technology
energy innovation commitment
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
TM
Trademark of Suncor Energy Inc.
Keeping Current aroUNd THE board UPCOMinG EvEnTS Luncheon Ambassador William Crosbie Where: Holiday Inn St. John’s When: Tues. Feb. 1 Time: 12:30 p.m. Networking 1:00 p.m. Luncheon Cost: $79 – non-members $39.50 – with member discount Dorothy Keating, Director
Dallas Mercer, Director
Partner/Principal at Noseworthy Chapman Chartered Accountants
President of Dallas Mercer Consulting
A chartered accountant since 1992, Keating has managed several large engagements including a university, a publicly traded utility, and was also a corporate controller. Her primary work areas are audit and assurance, taxation and business advisory services. Keating was a councillor in the Town of Torbay and a board member for the Institute of Chartered Accountants of Newfoundland.
After 15 years in the worker’s compensation sector, Mercer saw a lack of employer education and professional solutions that was costing businesses money. In 2002 she launched Dallas Mercer Consulting specializing in disability management – a service this province had never seen before. Eight years later the business has grown to 13 employees and offers occupational health and safety services through in house workers.
Business Mixer Hosted by LSPU Hall / Hungry Heart Café Where: When: Time: Cost:
LSPU Hall Thurs. Feb. 24 4:30 – 6:30 Included as a benefi t of membership
** TImE cHaNgE** All Business Mixers for 2011 will be scheduled for 4:30 – 6:30
Get clicks from our clique would you like your advertising to reach a targeted group of businesspeople? are you considering making an impact with online advertising? The St. John’s board of Trade wants you to reach our targeted audience of more than 800 local businesses and their more than 30,000 owners and employees through our website. right now the board is offering a promotional buy one, get one offer to help you see longer-term returns from your time on our site. any one month of online advertising – either in our E-News or on our website – will get you a free month.
for more on this offer contact us at 726-2961 ext. 9 and ask for wanda. Business News
February 2011
19
Membership member news
DH_cpm_DownhomeCPM1 1/19/11 12:12 PM Page 1
with the University and community, and a volunteer at local organizations and hospitals. In 2009 she travelled to Nepal with a humanitarian group to teach basic math and reading skills to children there.
Big salmon gets big nod from Time Magazine
Earl Ludlow
President and CEO of NL Power, MUN student named Humanitarians of the Year Earl Ludlow, president and CEO of Newfoundland Power, is one of eight individuals to receive the Red Cross 2010 Humanitarian Award. About 600 people attended the awards ceremony at the Delta Hotel, where Lt.Gov. John Crosbie handed out the awards. Ludlow is one of the community’s more active volunteers, serving as chair of the Dr. H. Bliss Murphy Cancer Care Foundation, honourary Lt.-Col. of the Royal Newfoundland Regiment, and a member of the board of directors for St. Luke’s Homes. He is on the advisory board of Memorial University’s Faculty of Business Administration, and serves on the audit committee and boards of the Canadian Electricity Association and Maritime Electric Company Inc. Earl is a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador, and a member of the Board of Newfoundland Power Inc. The Young Humanitarian Award was presented to Memorial University student Kristina Roche. Roche is heavily involved 20
A genetically-engineered salmon produced at Memorial University has been named one of the 50 Best Inventions in 2010 by Time Magazine. Two Memorial University researchers initially started looking at the anti-freeze gene and how to implement it in farmed Atlantic salmon. It was that research that later led to the growth hormone gene. The research led to Atlantic salmon that grow twice as fast as wild fish and they continue to be quite controversial. The work of Drs. Garth Fletcher and Choy Hew saw some impressive success, in the ’90’s, but it wasn’t until September 2010 that the fish were approved as safe to eat by the FDA in the United States. In 1996, Fletcher and Choy Hew became founding members of Aqua Bounty Technologies, along with Elliot Entis, an American business man involved in the fishing industry there.
CNA launches new website The College of the North Atlantic has launched a new website, which will better serve its students, administrators say. Stephen Lee, manager of marketing and communications for the college, was recently quoted in The Telegram saying the new site offers a lot of new features that will help students. The site is better looking and is accessible on mobile devices, he says. Prospective students can now apply online and the college is using analytics to regularly upgrade the site. To visit CNA’s new website click on www.cna.nl.ca February 2011
At Downhome magazine, it represents Cost Per Thousand (yeah,we know – it’s a Latin thing.) It’s defined as the cost, per 1,000 people reached, of buying advertising space in a given media vehicle. And with over 205,000 readers*, Downhome has one of the lowest CPM of any magazine or newspaper in Atlantic Canada. It’s simply the best advertising value for your dollar.
*Based on CCAB audit 42,000 paid circulation
Business News
Membership mEmbEr NEwS Local marketing firm wins prestigious IcE awards Dory Advertising has won a prestigious ICE award for its work on the Newfoundland International Film Festival ad campaign. The award, for radio advertising, was called “Is that your mother?” Another local winner was Target, which swept the awards, for its work on the Newfoundland and Labrador tourism campaign. The company won best in show as well as awards for print, TV and integrated campaign.
board members recognized for community contribution
marport named regional finalist for 2010 Innovation award The Canadian Manufacturers & Exporters, in partnership with Canada’s National Research Council, has named Marport Canada Inc. a regional fi nalist in the Atlantic/Nunavut Region for the 2010 Innovation Award for New Technology. The award honours the achievements of Canadian companies whose ideas have demonstrated excellence in new technologies – including product design, commercialization success and export market diversifi cation.
This is the third year in a row that Marport has been recognized, having been a winner in 2009 and a fi nalist in 2008. Karl Kenny, Marport president and CEO described the award as an honour. “I thank our staff and suppliers who work very hard to design and deliver advanced sonar solutions for customers around the world.” Marport has also recently announced that it will spin off its robotics subsidiary. The company’s success in creating an autonomous underwater vehicle helped make the decision to split it from the main operation which primarily focuses on sonar equipment.
Two Board of Trade members will be honoured for their contributions to public life, policy and governance in Canada next month. Gordon Nixon president and CEO of RBC, and Monique Leroux, board chair, president and CEO of Desjardins Group; along with non-Board of Trade members, William Davis former Ontario premier and Jim Stanford, Canadian Auto Workers economist, will all be presented with this year’s Testimonial Awards by the Public Policy Forum. The annual awards event gathers more than 1,000 leaders from all sectors of society to honour those who have made an extraordinary impact on the lives of Canadians. “These four Canadians exemplify the essential qualities of leadership required for our country’s success,” says Public Policy Forum president and CEO, David Mitchell. “During the course of their respective careers, each of them has helped build more collaborative approaches, demonstrated outstanding leadership and contributed to improving public policy processes in Canada.” The awards will be presented at the 24th annual Testimonial Dinner at the Metro Toronto Convention Centre on April 28 and will be co-chaired by New Brunswick Premier David Alward, and GE Canada’s president and CEO, Elyse Allan. Business News
February 2011
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Membership MEMBER PROFILES
Credit Counselling Services of Atlantic Canada (CCSAC) is a registered nonprofit, charitable organization with offices located throughout Atlantic Canada. CCSAC provides confidential and professional credit and debt repayment counselling programs to families and individuals in person and over the phone. Our St. John’s office is located at 136 Crosbie Rd, Suite 100B in the Viking Building. To inquire about our services or to book an appointment today call toll free 1-888-753-2227 or visit our web site at www.solveyourdebts.com Support. Educate. Empower
Sap World, North American’s first and only company to produce beverages from Birch Nectar, sap, which is harvested from Birch Trees. Founded in 2005, our first product “Lady of the Woods – Spring Wine”. We have developed birch vodka called “BirchWynd” and will be developing a birch juice called “Sapalicious” Birch sap is used in many products and we are driven to become North America’s, largest producer/supplier of Birch Nectar. To learn more visit our website. Then visit your local NLC store and buy our wine, for I can say that you will be pleasantly surprised in taste. “Tap into Nature’s Goodness” Info@sapworld.ca www.sapworld.ca (709)-764-1211
Speedpro Signs specializes in providing visual solutions that create an impact, optimizing your return on investment. Locally owned and operated, we are part of a Canadian network (47 locations) that has created visual solutions for 20 years. We align your identified needs with our vast product listings. From vehicle graphics and event signage to banners and window graphics, our on-site graphic designer and in-house production make Speedpro Signs your best resource for visual solutions. Call Mark or Ann at 709-747-1988 for a free 15 minute consultation; mention this profile for one hour free design time. Visit us at www.speedprosignsnleast.com
The world is changing at a rapid pace and nowhere is that more evident than in how we, as consumers, interact with our media. At Time + Space, our approach to the development of strategic media planning always begins with a solid understanding of the consumer. We are expert consumer profilers, uncovering the insights that will drive your strategy; Setting you apart from your competitors. Time + Space is a next generation media agency committed to helping you profile, reach and engage with your customers. Connecting your story to your audience is our business. Donna Alteen dalteen@timespacemedia.com Meg Vis mvis@timespacemedia.com 902-429-8463 www.timespacemedia.com www.facebook.com/TimeSpaceMediaLtd
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February 2011
Business News
We get to know your business. To achieve long-term business success, you need resources to retain top talent, improve products and services, and foster increased customer loyalty. At Scotiabank, we are committed to providing you with access to those resources. By starting with your goals and anticipating your organization’s challenges and opportunities, we can provide you with the capital, expert advice and solutions you need to finance growth, manage your cash flow and reduce risk. We can help you reach your business objectives. Call or visit us today. Your Vision. We’ll help you see it through. Peter Fitzner Director, Commercial Banking (709) 576-7953 peter.fitzner@scotiabank.com
Bill Bavis Client Relationship Manager (709) 576-7954 bill.bavis@scotiabank.com
Ken Birmingham Client Relationship Manager (709) 576-7906 ken.birmingham@scotiabank.com
Michelle Yetman Senior Manager, Global Transaction Banking (709) 576-8009 michelle.yetman@scotiabank.com
®
Registered trademark of The Bank of Nova Scotia.
Membership new members Greenbelt Tennis Club Ltd. Bruce Crichton, General Manager 114 Newtown Road P.O. Box 728 Stn ‘C’ St. John’s, NL A1C 5L4 P: 709-722-3840 admin@greenbelttennis.com
Consumers Health Awareness Network NL Karon-Ann Parsons, Executive Director 284 LeMarchant Road St. John’s, NL A1E 1R2 P: 709-636-4709 F: 709-635-4688 ed@channal.ca
The Executive CMA Program For senior leaders in Atlantic Canada and Bermuda The Executive CMA Program enables you to earn a professional designation focused on the integration of strategy, management, and accounting.
For further information on the ECMA Program and the Accelerated Program for the junior workforce: Please contact Allison Tilley, at atilley@cma-nl.com or call 1.709.726-3652
Highlights: An unparalleled opportunity designed specifically for executives and senior leaders (and limited to 20 participants), An expedited 18-month, part-time format that builds on previous knowledge and experience, A distinguished group of colleagues and moderators from a wide range of business and academic environments. ... and in just 18 months of part-time study.
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February 2011
TM
Create Possibilities. becomeacma.com
Business News
We see the pressures of a global economy.
Certified General Accountants see more than numbers. We see implications and opportunities behind the numbers. Whether as an employee or trusted consultant, your CGA looks beyond the balance sheet to help every player on your team find efficiencies, create opportunity and maximize value. That’s because they’ve learned that in a global economy, success isn’t a moving target, it’s a moving market. For a look beyond the numbers, choose a CGA.
We see more than numbers.
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