Canadian Business Journal Nov 2011

The

Canadian Business Journal

november 2011 volume 4 Issue 11 www.cbj.ca

in this issue ►

food & drinkNB Liquor

infrastructureP3 Canada

financePimco Canada

Dickinson Wrightllpglobal leaders in law.

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ediTOR’s note

The Canadian Business Journal is pub-

lished every month with a singular goal: to

showcase the best of Canadian business

nationally and around the world.

For the November issue, we advocate on

behalf of one of our most globally influential

companies, Research in Motion Inc. The re-

cent problems the company has faced do not

merit the wolf pack that has set upon it, and

we predict that 2012 will be a banner year for

the company if it can learn from its missteps,

react quickly to speculation and concentrate

on fewer, more popular products.

Despite a less-than-optimistic report from

the Bank of Canada which reported the Ca-

nadian economy has weakened since June,

Canadian business continues to lead the

charge toward a robust domestic economy,

with “business fixed investment still expected

to grow solidly in response to very stimulative

financial conditions and heightened competi-

tive pressures, although it will be dampened

by the weaker and more uncertain global

economic environment.”

Now more than ever, it’s important to

celebrate our best and brightest, such as

Fundy Tidal, a company in Nova Scotia that

is using the most current science to harness

the power of the Bay of Fundy, and Aboriginal

Pipeline Group, a partner with the ground-

breaking Mackenzie Valley gas project in the

Northwest Territories, as well as many others

proudly featured in our pages.

Continued support of Canadian business

and entrepreneurs will help shield us from

the turbulent economies of other countries.

As Rick Costanzo said to us regarding the

future at RIM, “There are tremendous oppor-

tunities in front of us. The question is how do

we best approach them?”

Anna Guy

Dickinson Wrightllpglobal leaders in law.

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Corperate_PPHC_216x279.indd 1 08-09-10 09:13

Anna Guy | Editor | [email protected]

Cory Wilkins | Editorial Assistant | [email protected]

Vladimir Lukic | Creative Director | [email protected]

Margaret Oldham | Sr. Graphic Designer |[email protected]

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Blair Dolson | Head Research Director | [email protected]

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Howard Rosenberg | Research Director | [email protected]

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Ian Ross | Vice President, Business Development | [email protected]

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Heather MacPherson | General Accountant | [email protected]

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Contributors | Dwayne Matthews, Mark Borkowski, Talar Beylerian, Lindsay Forcellini, John Medeiros

CBJ Team

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GEoRGE MEDIA InC.

Table of COnTenTs november 2011 | volume 4 | ISSue 11

RiM back in motion 016

news in Review 028

Short leash for ontario’s mcGuinty: Grit leader returns in ‘MaJOR MinORiTy’ 034

ROy GReen takes on bullying 040

alex CaRRiCk In hard times, the fault line in our finances may reside in our homes 046

major CRisis Of COnfidenCe grips the global economy 050

The independenT BOaRd: Take a stand on who sits in your chair 058

Canada nO.1 064

dOMiniOn lendinG CenTRes Canada’s pre-eminent mortgage company 066

landRy MORin Conscientious and conservative investment management 078

paCifiC invesTMenT ManaGeMenT COMpany, llC Preparing for the new normal 084

huB finanCial managing General agency 092

TiMBeRCReek asseT ManaGeMenT Investing in real estate 102

COveR feaTuRe

On The fROnT paGe

CBJ says

news

ChaMBeR

leGal

CBJ finanCe

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102

124

MuniCipal

fOOd & dRink

ManaGeMenT

Clean 15 Insights from the CaRBOn disClOsuRe pROJeCT 112

Thinking of sellinG yOuR COMpany? 118

new BRunswiCk liquOR a toast to new brunswick 124

la pRep Canada’s fresh fare experience, everyday 142

TOwn Of inuvik a hotbed of oil and gas activity in the frozen north 154

Cape BReTOn ReGiOnal MuniCipaliTy 100 years of bringing business together 164

CiTy Of MOnCTOn new brunswick’s hub city 170

OsOyOOs indian Band develOpMenT CORpORaTiOn 184

Funny Business by michael de adder


MihR innOvaTe: a catalyst for sharing mining hr practices and knowledge 190

nORThquesT lTd. exploration company positioned for golden future 198

fundy Tidal Current thinking 204

a step closer to a Canadian susTainaBle eneRGy sTRaTeGy? 212

aBORiGinal pipeline GROup aboriginal representation restarts long awaited pipeline 216

nORTheRn pROMises 224

p3 Canada building more for less 228

sOpReMa has you covered 236

whiTeCap develOpMenT CORpORaTiOn build it and they will come 244

164

244

eneRGy

infRasTRuCTuRe

COnsTRuCTiOn

ResOuRCes

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CenTRiC healTh Strategic acquisitions for a better healthcare solution 254

BRazil Canada ChaMBeR Of COMMeRCe 264

MaRkhaM aCuRa True definition of luxury 274

papasOn TRuCkinG Goes the extra mile 282

wesTOwne Mazda Showcasing excellence 288

penCO dRywall expect perfection 294

aThaBasCa Basin seCuRiTy seRviCe Industrial safety experts 302

pROduCTs & seRviCes

294

274

eneRGy

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Size: 8.5” x 11”

Date: October, 2011

Photos/Logos: Hi res

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C M Y K

ProCess seParations

CBJCBJCOMpOf The COMpOf The

The Canadian Business Journal is published

monthly with one goal in mind: to showcase

the best of Canadian business both

nationally, and internationally. Every issue

has examples of the best in entrepreneurism

and industry more impressive than that last.

In the course of each year we have

the opportunity to meet and interview

hundreds of leaders in Canada’s business

community. The success of Canadian

businesses, in particular during the recent

global market recessions, demonstrates

Canadians’ reputation for working to achieve

unparalleled industry leadership, growth and

innovation.

In its inaugural year, the 2010 CBJ

Company of the Year Award recognized all

that is great about Canadian businesses. As

the country’s leading online B2B magazine,

the CBJ publishes stories every month about

the “best in class” in Canadian business.

This competition capitalizes on what the CBJ

team already knows—that Canada’s leading

corporations in the fields of technology,

resources, healthcare, and a host of other

industries, are among the best in the world.

CSR and SuStainability

innovation

operational growth

AWARDAWARDCOMpany

The yeaRCOMpany

The yeaR

Building on the success of our first year, it’s

now time to honour the visionaries of 2011,

leaders whose companies and achievements

stand out amongst the best. Our goal: to

find Canada’s No. 1 business, and share that

company’s successes with the rest of Canada

and the world.

Companies entering the Company of the

Year contest will be required to highlight

their performance and strengths within four

key areas;

•CsR and susTainaBiliTy•CORpORaTe CulTuRe• innOvaTiOn and ReseaRCh

and develOpMenT•OpeRaTiOnal GROwTh

Deadline for submission will be December

2, 2011, with winners being announced in the

2012 first quarter. The overall winner of the

competition will receive a tailored advertising

program valued at $50,000 through

the CBJ, as well as website advertising

throughout 2012. The program will include

monthly advertisement placement within

the publication and a prominent web

advertisement on CBJ’s homepage. In

addition, the winning company will receive

an extensive company profile in CBJ in the

first quarter of 2011. George Media will also

reproduce the company profile, with its own

customized covers, into a digital brochure

for the winner’s future marketing and

promotional initiatives.

Companies with annual revenues in

excess of $5 million are invited to compete for

the top spot-with the final winner receiving

a generous George Media advertisement

package and an editorial spotlight in an

upcoming issue of the CBJ. Three runners-up

will also be chosen in addition to the award

recipient, and will be featured in the CBJ as

well. Companies can be public or privately

owned-but must be able to demonstrate

excellence in all four categories.

The CBJ research and editorial teams have

spoken to the “best of the best” in Canada-

and we know those companies are ready to

showcase their strengths-by winning the CBJ

Company of the Year Award.

corporate culture

It seemed like Research in Motion Inc. (RIM) was going to catch a break that day. Apple, in a rare mis-step, drew criticism and disappointment from fans expecting the release of the iPhone 5, but who in-stead got the iPhone 4S. Looking to be blown away by a great surprise, fans and investors sent the stock down four per cent, and left newly appointed CEO Tim Cook looking a little shaky. A lackluster product debut, Internet forums filled with criticism, falling stocks; RIM’s shoe was on the other foot, and for a few hours, the heat was not solely on RIM.

By Anna Guy

18 COVER FEATURE � RIM: Back in motion

iT was a fleeting moment, as we now all know.

The next morning, any remnants of Apple

disappointment was quelled with the untimely

passing of Apple co-founder, Steve Jobs, whose

contributions to the 21st century were lauded

for weeks.

Compared to an off-day of its biggest competi-

tor in the smartphone industry, Waterloo-based

RIM has had a difficult two years. In July, the com-

pany terminated 2,000 jobs, about 11 per cent

of its workforce worldwide. First quarter profits

from this year were down 10 per cent, and market

share fell an additional five per cent.

Missteps followed slips ups. There with a

cringe-worthy, boggled PlayBook launch, which

failed to make any impact, leaving RIM employees

to watch Apple’s runaway iPad and iPad 2 blow

them out of the water.

Then there were troubles with the overseas

markets when Saudi Arabia, the UAE and other

countries threatened to shut down BlackBerry

Messenger (BBM) for failing to comply with

security laws. There were production delays that

botched any momentum for product launches, all

the while competitors like Android and especially

Apple rolled out products seamlessly, eating away

at the market.

The idea of dropping one of the CEOs (invari-

ably Jim Balsillie, who was preoccupied with buy-

ing an NHL team for most of the last two years)

had been thrown around in the public sphere.

Northern Securities analyst Sameet Kanade

asked RIM to consider dropping Balsillie as a

co-CEO, among other recommendations. An open

letter to RIM, authored by a high-ranking employ-

ee, said, “To avoid this death, perhaps it is time

to seriously consider a new, fresh thinking, experi-

enced CEO. There is no shame in no longer being

a CEO.”

Perhaps most telling was a boost in stock

prices amidst rumours of a strategic consultant

being brought in. It shows investors are confident

in BlackBerry products, less so in the current

management.

Paul Hodgson, senior research associate

for GMI, a governance ratings firm, summed up

investor frustration. “They are supposed to be the

representatives of shareholders and they’re not

doing a very good job of representing sharehold-

ers’ interests.”

19NOVEMBER 2011 � The Canadian Business Journal

BlackBerry Playbook


Throughout, little was heard from co-founders

Mike Lazaridis and Balsillie, but much was heard

about them. RIM has a unique corporate struc-

ture to say the least. Considered “top-heavy”,

Lazaridis and Balsillie are co-CEOs, a strategy

that has taken a lot of heat in light of strategic

missteps of past months. Does a shared CEO

position lack a singular vision? Can two generals

lead an army?

Marketing strategy to quell the storm was

lacking, if it existed. As of late, the media percep-

tion of RIM is of a once-mighty company disin-

tegrating amidst competitors such as Apple and

Android, despite the fact that RIM has, in fact,

quadrupled its size in five years, still taken in

close to $700 million in the last quarter, and is

experiencing substantial international growth.

In June, the CEOs did address some of the

concerns that have been expressed surround-

ing the executive management structure at RIM,

specifically, the joint nature of its leadership.

“Mike [Lazaridis] and I have been partners in

this business for almost 20 years, and during

that time RIM has grown to $20 billion in an-

nual revenue. We are currently approaching the

tail end of a significant transition in our busi-

ness, that, frankly, few companies would have

survived. But we have. And I believe, and I think

Mike would agree, that neither of us could have

taken RIM this far alone.”

“I agree with Jim’s comments,” Lazaridis

added. “Our co-CEO arrangement is what led to

RIM’s success over the past two decades.”

JIM BALSILLIE, RIM CO-CEO


Don’t sell your stocks just yetIs the media being too quick to give RIM the RIP?

We think so. There is no denying RIM deserved

the criticism it received, but a wakeup call has

been sounded, one that we predict will show divi-

dends as early as first quarter 2012. We spoke to

RIM Managing Director Rick Costanzo for some

perspective on RIM’s position.

“I’ve been here for 12 years, having joined the

company about a week before the BlackBerry was

officially launched in 1999. For us, this year is very

much about going and managing a transition pe-

riod. You have to keep in mind BlackBerry has gone

through a dramatic period of growth.”

“I wouldn’t characterize this as some sort of

huge negative period by any stretch of the imagina-

tion,” he continues. “I recall a correction we had to

take in 2003 and 2004 and frankly the company

came out of it that much stronger. There are some

similarities [between now and 2003] to the degree

of people’s determination to put whatever issues

have been with us over the past squarely behind us

and stay focused on the future. We have a focused

determination in terms of getting back to what we

know which is unparalleled growth and success.”

Cognizant of RIM competition, the iPhone,

Android phones, Google phones, Costanzo says,

“There was always something around the corner

that was going to kill us. At the end of the day, if

you focus on the market, focus on your custom-

ers, deliver upon your promises, usually the rest

looks after itself. RIM has a tremendous history

of doing that.”

MIKE LAzARIDIS, RIM PRESIDENT AND CO-CEO


BlackBerry Bold 9900


Costanzo contends, “It’s taken us a little lon-

ger than we would have liked to bring out some of

the BlackBerry products, but we’re happy now that

they are actually in market they have gone on to a

phenomenal start.”

The BlackBerry 7 is a major part of RIM’s

“transition”, as it its QNX software, acquired in late

October, which RIM says will make a very impres-

sive contribution to smartphone technology.

“QNX is strong because it has the ability to

squeeze as much processing power out of the

environment as humanly possible. We have publi-

cally stated our intention in utilizing QNX software

and rolling that out across handsets as well, that

bodes extremely well for us also,” says Costanzo.

“You have to take a look at what we’ve done

with BlackBerry 7, that very much reflects our

plan. We don’t want to try to copy other platforms.

We want to be true to ourselves. The reality is

frankly that is the strategy that serves us extra

well. If you take a look at the 9900 BlackBerry, it

mirrors what our strategy actually is. It is a highly

aspirational offering. Everything from the brushed

metal finish, the high definition capabilities of

the screen, the multimedia capabilities, high web

fidelity, best browsing in the industry, we have a

ton of leading-edge technology that is super easy

to use. Discovering these capabilities is as easy as

hitting the touch screen on the product.”

Will RIM see a rebound in sales based on the

BlackBerry 7? “Without a shadow of a doubt,”

says Costanzo.

Is BBM the White Knight? Days after speaking to Costanzo, RIM suffered

another blow, a major outage of its BBM services

rolled over Europe, the Middle East, Africa,

India, and North America. And yet, it might still

be worth holding on to those RIM shares. This

BBM outage lasted four days and illustrated how

important the service is to people who rely on it

for personal and business applications.

“I have to go online to check my messages

like a caveman,” opined my colleague Cory

Wilkins during the outage.

What RIM has on its hands is products that

people love but a lack of marketing strategy

and a refusal for the most part for Balsillie or

Lazaridis to acknowledge any sort of difficulty, at

least publically.


The BBM outage may be good for RIM in the

long run for two reasons. One, it reinforced how

integral the service is for BlackBerry users. BBM

is the stronghold of the BlackBerry platform, more

so than its operating systems, its battery life,

privacy—all the things Lazaridis promotes.

“BBM has been a huge catalyst for us in terms

of driving growth for us,” says Costanzo. BBM fans

have taken to the service in such force that the

outage will not do much to dent enthusiasm for

the product. Here is where RIM has an opportunity

to really capitalize on a feature that is so loved.

Unlike Apple’s very memorable ad cam-

paigns, RIM’s ads are aimed at the corporate

world, neglecting BlackBerry’s impact on pop cul-

ture. A few quick examples: “Ok this new Black-

Berry Bold is crazy! I’m in love!” tweeted

@KimKardashian. “BlackBerry is the best! People

please agree w[ith] me! Iphone’s [sic] are so hard

to type.”

Mirka Federer is almost as well known in

sports circles for watching her BlackBerry than

her famous husband Roger during his matches.

Politically, President Barack Obama’s love for

his BlackBerry is well documented, and he was

quoted as saying before his inaugural address,

“I’m still clinging to my BlackBerry. They’re going

to pry it out of my hands.” (In the end, Obama got

his way, and still uses his BlackBerry, winning his

own personal Battle of Waterloo.)

The BBM outage made nightly news around

the world for days, and while it was bad publicity,

“I wouldn’t characterize this as some sort of huge negative period by any stretch of the imagination,”

Rick Costanzo, RIM Managing Director


it should serve as a clear indication of what its

customers value in its products and a motivating

factor to better articulate how it will continue to

deliver on those expectations.

Secondly, the BBM outage garnered a per-

sonal reply from Lazaridis, who posted a YouTube

video addressing the issues, acknowledging the

inconvenience. Perhaps this is part of a newer,

friendly RIM CEO, one who engages more with its

investors, speaks openly with its customers and

acknowledges its deficiencies, rather than stand

by silently, allowing media and investor specula-

tion to run amok.

More leadership and an articulated media

campaign will go far in helping RIM continue to

turn the corner.

“The general mood at RIM right now is a

determination to turn the page and absolute


RIM Corporate Office


positive momentum and we are very comfortable

relative to our competitive positioning. We are

a profitable company, growing 40 per cent year

over year and with 70 million subscribers and

climbing. We have just launched the biggest

portfolio of devices in the company’s history

in one fell swoop, delivering unparalleled

performance on the BlackBerry platform and

rebounding nicely.”

It’s too early to count out Canada’s most in-

novative company. With 4 billion cell phones out

there in the world today, only 25 to 30 per cent of

which are smartphones, there is still 70 per cent

of the market up for grabs.

“There are tremendous opportunities in front

of us,” says Costanzo. “The question is how do

we best approach them?” CB

All photos courtesy of RIM.com News Gallery

“There was always something around the corner that was going to kill us. At the end of the day, if you focus on the market, focus on your customers, deliver upon your promises, usually the rest looks after itself. RIM has a tremendous history of doing that.”

Rick Costanzo, RIM Managing Director

28 SECTION � Title28 SECTION � Title

news in ReviewRiM OffeRs fRee apps fOllOwinG neTwORk

dOwnTiMe

Research In Motion (RIM) announced that a selec-

tion of premium apps worth a total value more

than US$100 will be offered free of charge as an

expression of appreciation for customer patience

during recent service disruptions. The apps will

be made available to customers over the coming

weeks on BlackBerry App World and will continue

to be available until December 31.

“Our global network supports the communica-

tions needs of more than 70 million customers,”

said RIM co-CEO Mike Lazaridis. “We truly appreci-

ate and value our relationship with our customers.

We’ve worked hard to earn their trust over the

past 12 years, and we’re committed to providing

the high standard of reliability they expect, today

and in the future.”

The complete selection of premium apps will

become available to download at BlackBerry App

World over a period of four weeks beginning Octo-

ber 19.

RIM’s enterprise customers will also be of-

fered one month of free technical support. Current

customers will be offered a complimentary one

month extension of their existing technical sup-

port contract, and customers who do not currently

have a technical support contract will be offered a

one month trial of RIM’s BlackBerry Technical Sup-

port Services—Enhanced Support, free of charge.

“We are grateful to our loyal BlackBerry cus-

tomers for their patience,” added Lazaridis. “We

have apologized to our customers and we will

work tirelessly to restore their confidence. We

29AUGUST 2011 � The Canadian Business Journal 29AUGUST 2011 � The African Business Journal

news in Review

are taking immediate and aggressive steps to

help prevent something like this from happening

again.”

Many global customers experienced service

interruptions and delays over a three day period.

Global teams worked around the clock to contain

the issue and minimize the impact to customers

as much as possible. As of October 13, service

levels returned to normal.

A global leader in wireless innovation, RIM

revolutionized the mobile industry with the

introduction of the BlackBerry in 1999. Today,

BlackBerry products and services are used by

millions of customers around the world to stay

connected throughout the day. Founded in 1984

and based in Waterloo, Ont., RIM operates offices

in North America, Europe, Asia Pacific and Latin

America.


news in ReviewdespiTe eCOnOMy, Canadian Businesses

COnfidenT aBOuT 2012: RepORT

Faced with global economic uncertainty, 51 per

cent of Canadian businesses believe 2012 will

be a better year than 2011, and only 13 per cent

expect it to be worse. More than one in three (79

per cent) of Canadian business owners also plan

to invest the same amount or more into their

business in 2012, according to a report by BMO

Bank of Montreal.

Those who believe that 2012 will be a better

year cite a number of factors, top among them

being business optimism (14 per cent), confi-

dence in improved market environment (12 per

cent), restructured or improved business practic-

es (11 per cent), economic improvement (10 per

cent) and that these businesses have expansion/

business growth plans (eight per cent).

Businesses that are less optimistic about

the year ahead see the economy worsening (20

per cent), less customers/demand (19 per cent),

increased costs of doing business (14 per cent)

and poor business conditions, particularly in the

U.S. and European economies (12 per cent). The

study also finds that one in three Canadian busi-

nesses believe the U.S. economy will underper-

form in the next five years and as a result have

changed their plans to invest, expand and hire.

One in four Canadian businesses indicate that a

poorly performing U.S. economy will be their big-

gest challenge for 2012.

“Understandably, business owners are in-

creasingly concerned about not only the U.S.,

where recession risks are rising, but Europe’s

prospects as well, given the sovereign debt cri-

sis that has engulfed the region,” said Jennifer

Lee, Senior Economist, BMO Capital Markets.

“Compared to when Canada’s recession officially

began in the last three months of 2008, exports

over the May to July period this year have slipped

6.7 per cent. But while Canadian exports to China

have surged 80 per cent over that period, they’ve

declined nearly 10 per cent to the U.S. and nearly

22 per cent to Europe.”

For those Canadian businesses planning

to expand, 54 per cent intend to open new op-

erations or hire staff in external markets, while

Canadian businesses planning to introduce new

products and services or grow their business op-

erations will do so domestically.


news in ReviewsTRike aCTiOn aveRTed aT aiR Canada

Air Canada and CUPE have received notice that the

Minister of Labour, the Hon. Lisa Raitt, has asked

the Canada Industrial Relations Board (CIRB),

under Section 87.4 of the Canada Labour Code, to

determine the rights and obligations of the employ-

er, the union and the employees to continue the

supply of air services in the event of a strike.

The strike deadline originally scheduled for

12:01 a.m. ET on October 13 was effectively

cancelled.

In addition, as a result of the rejection by the

CUPE membership of two collective agreements,

the Minister of Labour is asking the CIRB to

determine if conditions unfavourable to a settle-

ment exist and if so, to either impose a new col-

lective agreement or a binding method of resolv-

ing the dispute.

Air Canada will appear before the CIRB as

required. Further details are not available at this

point. However, it will remain business as usual at

Air Canada and all flights will continue to operate as

scheduled.

CUPE represents approximately 6,800 flight

attendants employed by Air Canada. Air Canada

is Canada’s largest domestic and international

full-service airline providing scheduled and

charter air transportation for passengers and

cargo to more than 175 destinations on five

continents. Canada’s flag carrier is the 15th

largest commercial airline in the world and

serves 33 million customers annually.


news in Review


news in ReviewsCOTiaBank COMMOdiTy pRiCe index

ReTReaTs in auGusT

Scotiabank’s Commodity Price Index, which mea-

sures price trends in 32 of Canada’s major exports,

fell by 3.3 per cent month over month in August.

The All Items Index stayed elevated—only moderate-

ly below (minus-5.2 per cent) last April’s near-term

peak in commodity prices.

“Financial market concern over Euro-zone debt

challenges and the political gridlock in the United

States, threatening to undermine steps to bolster

the economy, intensified in mid-September,” said

Patricia Mohr, Vice-President, Economics and Com-

modity Market Specialist at Scotiabank. “China’s

economy, of vital importance to global commodity

markets, also appears to be slowing, leading to

some unwinding of commodity positions by finan-

cial institutions.”

Expectations that U.S. growth may remain ex-

ceptionally slow, with minimal inflation, has likely

increased the attractiveness of Treasury bonds,

despite very low yields. These developments

lifted the U.S. dollar last week, dampening gold

and silver prices.

Gold investors were also disappointed that the

Federal Reserve Board, at its meeting on Septem-

ber 21, did not announce a third round of Quantita-

tive Easing (QE3), which would have expanded its

balance sheet and overall liquidity, and might ulti-

mately have proven inflationary. Spot gold dropped

as low as US$1,532.72 per ounce on September

26 in intraday trading—a drop of US$388 from

the record US$1,921.15 on September 9, though

prices have since rebounded over US$1,600.

The Metal and Mineral Index edged down in

August by minus-0.4 per cent month over month,

as moderate declines in base metals and uranium

more than offset strength in gold, silver and cobalt.

“Current copper prices at US$3.16 remain

quite profitable for mining companies, yielding a 54

per cent profit margin over average world breakev-

en costs including royalties, depreciation and inter-

est expense, despite the correction,” noted Mohr.

“Recent surveys on the ground point to soft orders

for China’s copper fabricators in the fourth quarter,

though global supply and demand conditions are

expected to remain largely balanced, in fact, in a

slight deficit of 30,000 tonnes. Copper prices could

well rally back as 2012 unfolds.” CB

© ALL RIGHTS RESERVED BY ONTARIO LIBERAL PARTY

034By Cory Wilkins

shORT leash fOR OnTaRiO’s MCGuinTyGrit leader returns in ‘major minority’

On Th

e fR

OnT p

aGe

034shORT leash fOR OnTaRiO’s MCGuinTyGrit leader returns in ‘major minority’

36 ON THE FRONT PAGE � Short leash for Ontario’s McGuinty

The knOCkOuT seeMed inevitable. Taxed-to-death

Ontarians were poised for full-force change,

ready to sweep the Ontario Liberals to the side-

lines and hand the provincial reins to the fiscally-

restraint Progressive Conservatives.

Ontario looked to go blue, a Tory and blue

collar victory, with many a voter uprising to the

Liberals’ single solution of tax—eco-tax, smart

meter tax, the future possibility of a carbon tax—

to vote in real change for hardworking Ontarians.

Seemingly, there was an overwhelming

amount of negative vibes to not only topple but

decimate the Ontario Liberals from the leader-

ship, handing a majority mandate to the PCs.



Then, Ontarians—and a few union strangleholds—

decided that more McGuinty was in order. In the

end, the Ontario election results were a mix of

shocking and sickening.

On October 6, the Ontario electorate went

to the polls—in record-low numbers, at 49.2 per

cent—and returned incumbent Premier Dalton

McGuinty to the leader’s seat at Queen’s Park,

for his now-third term representing the Province

of Ontario, but first time with a minority in the

legislative assembly.

The only poll that countsHow did that happen? In polls leading up to ballot

box day, Ontario PC leader Tim Hudak appeared

run-away victorious, caution for campaign havoc,

which now appears as if that was the final result.

“As we fought for, Ontario families need and

deserve relief for the family budget that has

been squeezed these last eight years beyond

what they can afford,” Hudak said during his

concession speech.

In June of this year, two major polling firms,

Ipsos-Reid and Forum Research, declared major

leads for the Ontario Tories, as much as 11 and

15 per cent, respectively, over McGuinty’s Liber-

als. A slam dunk, probable majority victory for the

Progressive Conservatives was in the making.

But as the weeks dragged toward October

6 in this less-than-inspiring election campaign,

the tables began to turn, pointing toward yet an-

other Ontario victory for the Liberals. And when

the final votes were tallied, the Liberals won

53 seats, enough for re-election, but a drastic

fall from its former 70 seats, as well as a single

seat short of majority rule.

38 ON THE FRONT PAGE � Short leash for Ontario’s McGuinty

Meanwhile, the PCs picked up the Official

Opposition with 37 seats, a big jump from the

25 seats it held entering the election. The third-

wheel New Democrats also gained seats, up

seven seats to now have 17 representatives at

Queen’s Park. In terms of the popular vote, how-

ever, the results were much closer, with the Liber-

als at 37.6 per cent, the PCs at 35.4 per cent,

and 22.7 per cent for the NDP.

‘Seatless’ in TorontoIt’s a disappointing result for the PCs, who

looked to have the win in the bag, but seemingly

went off the tracks as the campaign neared

its finished line. The key to victory for the PCs

was breaking the seal to the lucrative Greater

Toronto Area ridings, where the party has failed

to gain any seats in the previous two provincial

elections, in 2003 and 2007. Home to more

than 30 ridings, a handful of victories in Toronto

may have made the difference for the PCs.

However, once again, the PCs struck out in the

Ontario capital.

Perhaps the best summary of the election

results is this: Toronto elected a Liberal govern-

ment. The rest of Ontario elected a Progressive

Conservative government—save for speckles of

Orange in Windsor-Essex, the Niagara Region,

and Northern Ontario.

For the PCs, the focus now turns to an of-

ficial leadership review to be held at the party’s

next caucus meeting, protocol after an election

loss, to determine whether Hudak will remain as

party leader.

Returning with Tim?The sense is that although Hudak and his party

lost an election that should have been nothing

but a clean-sweep victory, the PCs will focus on

the positives—notably gaining double-digit seats

at Queen’s Park and a reduction of McGuinty’s



Liberals to minority status that will allow for more

PC power. There is also hope that a non-confi-

dence vote to defeat the government prior to the

next Ontario provincial election could come into

play prior to the four-year term expiration in 2015.

Hudak said, “I hope we’ll see the Premier

approach us with a little bit more humility. We

recognize we had great gains in the province. We

had some areas we didn’t gain, but we’re going

to fix that and we’ll win next time.”

The assumption here is that Hudak will retain

the leadership, though I suspect there is greater

pressure for Hudak to better resonate with voters

next time around, in terms of more policy sub-

stance of his own ideas, rather than a supposed

‘anti-McGuinty, the tax-man’ platform.

“It is very clear that the people of Ontario

have sent a strong message that they want a

change in direction, [and] have put Dalton Mc-

Guinty on a much shorter leash,” Hudak said.

“[Voters] expect us to focus like a laser on

creating good, sustainable private sector jobs.

They expect us to rein in runaway government

spending, to make smarter choices with their

tax dollars, and to ensure that government lives

within its means. Time will tell if Dalton McGuinty

actually got the message.

“although we did not get the result we wanted, I am damn proud of the campaign that we ran across the province of ontario. We can point to progress tonight.”

‘Progress’ is the key word here. Hudak will

have the opportunity to progress further upon his

return to the legislature, looking to build better

consensus, inspire the electorate, and add to the

gains made by the Progressive Conservatives. CB

40 COLUMNIST � Roy GreenCBJ says

ROy GReen Takes OnBullyinG

The Workplace bullying Institute reports “35 percent of u.S. workers report being bullied at work; 15 percent have witnessed it; 68 percent of bullying is same-gender harassment; 58 percent of targets are women; 80 percent of the time, female bullies target other women.”

wORkplaCe BullyinG, aCCORdinG to the Wash-

ington State Department of Labour and Indus-

tries, can consist of, but is not limited to, unwar-

ranted or invalid criticism, blame without factual

justification, being treated differently than the

ROY GREEN, COLUMNIST

CBJ says


rest of your work group, being sworn at, exclu-

sion or social isolation, being shouted at or being

humiliated, excessive monitoring or micro-man-

aging, being given unrealistic work deadlines.

A prevalence study of U.S. workers found

41.4 per cent, or 47 million respondents expe-

rienced psychological aggression at work in the

last year. Almost 15 million workers experienced

psychological aggression weekly.

Recent programs I have aired on the issue

of bullying both in the workplace and among

preteens and teens resulted in scores of on air

calls and listener emails. A former detective

sergeant in a major Canadian municipal police

service quit his multi-decade career over bul-

lying he describes in these terms, “until you

have actually lived through a bullying situa-

tion you have no idea of the devastation it will

cause in your life. While I was being harassed,

bullied and threatened I was on the verge of a

nervous breakdown or a stress induced heart

attack and was forced to leave my job to keep

my health.”

As challenging as workplace bullying clear-

ly is, it is childhood victimization which most

resonates viscerally.

ROy GReen Takes OnBullyinG 040


Canadians recoiled over the recent suicide of

11 year old Mitchell Wilson of Pickering, Ontario,

a child afflicted with muscular dystrophy. Was

Mitchell’s suicide linked to a vicious attack by an

older boy who attended the same school? No one

can be certain, but Mitchell’s father told media

that following the assault his son entered a down-

ward spiral emotionally. The bully was expelled,

but Mitchell continued to be the target of ridicule.

Talk of suicide as an escape from bullying is

not uncommon. Jenny, a Toronto mother told me

her 10 year old son Jacob has spoken of suicide.

Recently.

Another Ontario mother, Lynne, who when

speaking of her 14 year old son’s friendless life

and the bullying he faces regularly (her son pre-

fers to not have even his first name made pub-

lic), touched so many, including NHL player and

enforcer Richard Greenop.

While Lynne’s son’s primary school graduat-

ing class was looking forward to a Quebec City

school trip and prom, he fearfully refused to

attend either. Lynne asked her son to put his

feelings to paper. These are his words.

•••

43NOVEMBER 2011 � The Canadian Business Journal COluMnisTi aM JusT a BOy (By a GRade 8 sTudenT in Guelph):

I am just a boy who didn’t have any choices about the hell I have endured.

I am just a boy who couldn’t wait to go to school and learn and be liked.

I am just a boy who wanted to make friends and be part of the team.

I am just a boy who didn’t get to realize this dream.

I am just a boy who would walk around the playground, alone and sad, as I watched other kids play

soccer and wished they would call me over to join in - just once.

I am just a boy who never got picked for a team and was always last picked in gym class.

I am just a boy who was teased for lacking in athletic ability and mocked for the way I run.

I am just a boy who desperatedly wanted to share my story but had to suffer in silence for fear of more

torment.

I am just a boy who had to suck it up and pretend I was fine and didn’t matter.

I am just a boy who wanted a friend and confidant.

I am just a boy who wanted to be accepted for my differences but liked more because of them.

I am just a boy who looked forward to ending my primary school years better than they started.

I am just a boy who wanted to go on the year end trip with my classmates feeling a sense of belonging.

I am just a boy who just learned that I am not accepted and I don’t belong.

I am just a boy who won’t be victimized anymore and will make choices that will not subject me to the

constant messages of you don’t matter, or you are a freak.

I am just a boy who will leave elementary school the same way I started, wanting a friend, wanting to

feel accepted, wanting to be “one of the gang”.

I am just a boy who had to be brave and pretend that none of this hurt.

I am just a boy who is funny and kind and plays by the rules.

I am just a boy who doesn’t understand why subtle yet constant badgering isn’t considered bullying - yet

it hurts just as much.


I am just a boy who is tired of waiting for it to stop, waiting for adults to make kids accountable,

waiting for a better tomorrow.

I am just a boy who is wishing his childhood away because I hear that adults don’t behave that way.

I am just a boy who loves life and laughter and all the things that other kids like and for that I am not

different.

I am just a boy who hopes that one kid understands the impact of being so mean, so unkind.

I am just a boy who wonders if they think about the cruel things they say, the cruel things they do.

I am just a boy who wonders if they are being mistreated and that is why they are so careless with

their words that cut through my soul.

I am just a boy who promises to never ever treat anyone like this.

I am just a boy who promises to raise children, to be kind and thoughtful and tough enough to stand

up to those who don’t.

I am - just a boy.

•••

These words, read by a distressed mother,

created a national outpouring of support. Rich-

ard Greenop of the Toronto Maple Leafs and AHL

Marlies is befriending Lynne’s son and hockey

enforcer though he may be, Greenop explained

he would even in high school, as a popular stu-

dent and athlete, stand up for the bullied. “I

didn’t like seeing it and it always cut straight to

my core. I would always step in and for that even

some of my peers would make comments about

sticking up for people. I would love to be a friend

of this boy.”

What to do to address bullying cross-societally?You can get lost in research and statistical data,

both among the young and in the workplace. Hu-

man Resources and Skills Development Canada


suggests “one in seven boys between the ages

of 4 and 11 bully others and approximately one

in 20 are victimized by others sometimes or very

often. Approximately one in 11 girls between

the ages of 4 and 11 bully others, while one in

fourteen are victimized. For both boys and girls,

however, victimization increased with age”.

Statistics and research may be useful struc-

tural tools in formulating anti-bullying policies. I

suspect however that workplace and youth bul-

lying numbers fail to accurately represent real

numbers. Many children and indeed adults will

undoubtedly prefer not to admit to being bullied,

or being a bully for that matter.

Whatever the actual figures, bullying is a

scourge and any positive effects of anti-bullying

efforts depend entirely on the level of commit-

ment by parents, schools and/or employers.

With the advent of cyber technology bully-

ing is no longer limited to personal and direct

encounters. Email, texting and social network at-

tacks expose the bullied to a never ending series

of encounters with dread.

When bullying causes a multi decade senior

police officer to resign before qualifying for full pen-

sion, or a child to contemplate suicide, surely we

each have a responsibility to support the bullied.

We clearly have the opportunity. CB

Roy Green is a contributor to the National Post

and the host of the Roy Green Show, a national pro-

gram weekends on the Corus radio network.

46 COLUMNIST � Alex CarrickCBJ saysALEX CARRICK, COLUMNIST

CBJ says

In hard times, the fault line in our finances may reside in our homes

In the upcoming stretch of uncertainty for the Canadian economy, look for the residential real estate sector to be the fault line.

MORe Than any other asset, the home provides a sense

of well-being, both of a personal nature and financially

speaking.

It is the bedrock most individuals and families use

when assessing their own wealth.

In the fall-2008 to summer-2009 recession, housing

starts fell as low as 112,000 units seasonally adjusted

and annualized.

Then the Bank of Canada lowered interest rates, the

resale market picked-up and new home starts recovered

about six months later.

They currently sit above the 200,000-units

annualized benchmark.


046In hard times, the fault line in our finances may reside in our homes

Let’s put that in a historical context.

In the decade of the 1990s, new home starts

averaged 150,000 units per year. Between 2002

and 2008, they rose consistently above 220,000

units.

In other words, new home starts climbed

almost 50 per cent between adjacent decades.

That’s a huge jump.

They were probably too low in the 90s and

too high in the 00s. More on the appropriate level

for housing starts in a moment. So far this year,

new home starts have averaged over 190,000

units through nine months.

In July, they were 214,000 units and in Sep-

tember, after dropping back to 190,000 units in

August, they were 206,000 units. Home prices

have held up well. In the resale market, they are

+8 per cent year over year, according to the Ca-

nadian Real Estate Association (CREA).

For new homes in 25 urban centres across

the country, year-over-year prices are +2.3 per

cent according to Statistics Canada. It may seem

paradoxical, but increases in home prices are

usually good for demand.

Consider the alternative. When home prices

are falling, buyers delay purchases in hopes

they’ll get even bigger bargains at the bottom of

the downward spiral. The United States is famil-

iar with this pattern. The spate of foreclosures

accompanied by falling home prices has been

slow to spur much buying interest. Most analysts

feel the proper level of Canadian housing starts

—justified by current demographic trends in

family formations and immigration, plus second

48 COLUMNIST � Alex CarrickCBJ says

home allure and replacement needs—lies between

170,000 units and 180,000 units per year.

So where is the current excess demand com-

ing from? The single-family market year to date is

-14 per cent compared with January to September

last year. Row, townhouse and multiple-unit starts,

however, are +17 per cent. Condos make up 50 per

cent of the multiple-unit market and clearly that is

where the surge is originating.

Three cities presently account for 65 per cent

of multiple-unit starts in the country. In two of those

three centres, year-to-date starts are out-sized.

Montreal multi-unit starts are a reasonable +6 per

cent year to date; Vancouver is a more spectacular

+39 per cent; and Toronto is an astonishing +56

per cent. Toronto, with one-sixth of the nation’s

population, is currently accounting for nearly one-

third of multi-unit housing starts.

Furthermore, the inventory of completed but

unabsorbed (i.e., vacant) multi-unit structures

keeps rising. The Department of Finance earlier

made it harder to obtain mortgage approvals and to

take out personal loans with property as collateral.

But there are other sources of credit tied to the

home and the Office of the Superintendent of

Financial Institutions (OSFI) has identified where

another major risk may lie for Canadians in a

downturn.

The recession taught many of us to scale back

on our credit cards and personal borrowing. But

there is still tremendous potential from home equity

lines of credit (acronym HELOC).

These are even more attractive based on

current very low interest rates. If people find them-

selves under undue stress on account of job losses

and/or income roll-backs, there will be tremendous

temptation to increase HELOCs.

Homeowners won’t be the only ones facing a

“crisis in the wilderness”. Banks, wishing to main-

tain revenues, will be able to promote HELOCs at

seemingly bargain rates.

But those rates are often tied to the prime.


As such, they will be instantly adjustable upwards

when the Bank of Canada begins to tighten mon-

etary policy again. Most of us can’t lower the princi-

pal amounts we owe with any great speed and we

could find ourselves in over our heads.

That’s the purchaser side of the housing mar-

ket. What about the supplier side, especially as it

pertains to condos?

We often hear the argument that the new

condo market must be in reasonably good shape

because 80 per cent of units need to be sold be-

fore financing can be finalized. This is an argument

with strong validity when only a limited number of

projects are proceeding. But what if precisely 80

per cent is the norm when there are a great num-

ber of towers rising up in a region? In effect, within

each cluster of five buildings, one will stand empty.

In 100 such buildings, twenty will be “see through.”

That puts a different spin on things. On sev-

eral counts, there are reasons to be concerned

about Canada’s housing market over the next

year or two. CB

Alex Carrick is Chief Economist with

CanaData, a division of Reed Construction

Data (RCD). CanaData is the leading supplier

of statistics and forecasting information for the

Canadian construction industry. RCD is a division

of the global publishing firm, Reed Elsevier.

For more economic insight from RCD, please

visit www.dailycommercialnews.com/features/

economy. Mr. Carrick’s lifestyle blog is at www.

alexcarrick.com and he would welcome a follow

on Twitter (Alex_Carrick) or Facebook.

www.alexCaRRiCk.COM

“

MaJOR CRisis Of COnfidenCe GRips The GlOBal eCOnOMy

Canadian ChaMBeR Of COMMeRCe

MaJOR CRisis Of COnfidenCe GRips The GlOBal eCOnOMy

By Tina Kremmidas

52 FINANCE � Canadian Chamber of Commerce

One adveRse evenT after another has roiled

financial markets, zapped confidence and cre-

ated an air of uncertainty. As Shakespeare wrote,

“When sorrows come, they come not single spies,

but in battalions.” The world has witnessed politi-

cal unrest in countries across the Middle East

and North Africa, a spike in oil prices, supply

chain disruptions from the Japanese earthquake,

the escalation of the eurozone’s sovereign debt

crisis, bitter political wrangling in Washington

over the federal debt ceiling and Standard &

Poor’s decision to downgrade U.S. government

debt. Then came the rising drumbeat of weaker

than expected economic data—in the second

quarter, the U.S. economy grew just 1.3 per cent

while Canada’s economy contracted by 0.4 per

cent. The recovery in the eurozone has stalled.

Emerging-market economies have maintained

relatively strong growth but the battle against

persistently high inflation, insufficient aggregate

demand and weakness in major export markets

are beginning to affect their growth as well.

Warning signs are flashing red. Christine

Lagarde, Managing Director of the International

Monetary Fund (IMF), said the “world is collec-

tively suffering from a crisis of confidence” but

“I believe there is a path to sustained recovery,

much narrower than before, and getting nar-

rower. To navigate it, we need strong political will

across the world—leadership over brinksman-

ship, cooperation over competition, action over

reaction.”

The Eurozone Debt Crisis DeepensIn Greece, the recession is deepening and the

country’s economy is not expected to recover

before 2013. Many of the fiscal and structural

reforms agreed upon under the terms of the

bailout program are proving difficult to imple-


ment. Growing civil unrest and labour strikes

have paralyzed the nation’s economy. Many

market participants believe that Greece will

default; it’s just a matter of time.

Concerns that a debt crisis cannot be fully

contained caused Italy’s and Spain’s market

borrowing costs to soar. To diffuse tensions, the

European Central Bank (ECB) intervened, buy-

ing Italian and Spanish sovereign bonds in the

secondary market to keep yields at reasonable

levels and prevent a financial meltdown.

Worries mount over the stability of European

banks that hold large stocks of sovereign debt

issued by the most fiscally fragile of eurozone

countries. The 17-member eurozone approved

an expanded mandate for the €440-billion Euro-

pean Financial Stability Facility (EFSF) to enable

it to buy sovereign bonds of heavily indebted

eurozone nations in the secondary market and

recapitalize weak banks. While this is consid-



ered an important step in solving the region’s

financial crisis, there is concern that the EFSF

does not have enough firepower. Markets have

speculated that at least €2.0 trillion will be

needed to give the fund credibility.

The IMF’s managing director summed it up.

In Europe “we need urgent and decisive action

to remove the cloud of uncertainty hanging over

banks and sovereigns. . . . Banks need urgent

recapitalization. They must be strong enough

to withstand the risks of sovereigns and weak

growth. This is key to cutting the chains of con-

tagion. . . . Europe needs a common vision for

its future. The current economic turmoil has

exposed some serious flaws in the architecture

of the eurozone, flaws that threaten the sustain-

ability of the entire project.”

America’s Confidence Badly ShakenThe recovery in the U.S. has been slow and

erratic. The U.S. unemployment rate remains

persistently high. There are 14 million Americans

looking for work. The average duration of

unemployment has climbed from 17 weeks in mid-

2008 to 40 weeks. Beyond the headline numbers,

more than 8 million workers are classified as “part

time for economic reasons” because their hours

had been cut back or they were unable to find a full-

time job.


The U.S. housing market remains in the

doldrums. Nationally, house prices have fallen

for six years and analysts expect further

declines before prices bottom out. More than

one in four homeowners has mortgages that

are underwater—that is, their mortgage balance

exceeds the current value of their home. With

negative equity, many households cannot

refinance their mortgages nor can they sell their

home to pursue job opportunities elsewhere.

Borrowers that are underwater, especially those

out of work, are more likely to default on their

mortgages and possibly face foreclosure. 2.5

million foreclosures were initiated in 2010 and

a similar number is projected for 2011.

It is hardly surprising that in an environment

of high unemployment, a beaten-down housing

market, wild swings in the stock market and

meager economic growth consumers are

suffering from a crisis of confidence.

Business confidence has also been

undermined amid uncertainty about the

direction of government policy as it relates

to employee health care cost, regulation and

taxes. And if things were not bad enough, the

fiasco that played out in Washington over the

debt ceiling and the decision by Standard &

Poor’s to downgrade America’s credit rating

dealt a devastating blow to public confidence

adding to the country’s economic malaise.

When people are uncertain about the fu-

ture, they are less likely to spend. In turn, busi-

nesses will not hire or invest in plants, machin-

ery and equipment if they are uncertain about

future demand. The economy grinds to halt

while everyone waits.

Canada Is Not Immune To Global DevelopmentsThe recent bout of negative global economic

headlines and growing skepticism that policy-


makers will be able to stem the debt crisis and

lay the foundation for a sustainable recovery are

also weighing on consumer and business confi-

dence in Canada.

To be sure, Canada is vulnerable to develop-

ment abroad. Slower economic momentum in

the U.S. will dampen export growth. Roughly 70

per cent of Canada’s merchandise exports are

U.S. bound. The direct impact of weaker Euro-

pean growth on Canada is relatively modest—

roughly nine per cent of Canadian exports are

headed for Western Europe. However, indirect

effects could be significant—loss of confidence,

stock market volatility as investors become less

tolerant to risk, tightening of financial condi-

tions, and falling commodity prices as global

economic growth slows.

The Path ForwardIn light of today’s challenges, the G20 nations

must honour their pledge to do all that is neces-

sary to ensure that banks are adequately capi-

talized and have sufficient access to funding to

deal with current risks, and that they fully imple-

ment financial reforms—including Basel III capi-

tal measures—along the agreed timelines.

It is imperative that the G20 develop and com-

municate clear and credible medium-term strat-

egies to stabilize and reduce deficits while being

attentive to the implications of fiscal choices for

the recovery in the near term.

The financial market will continue to swoon

as panicked investors take flight, and consumer

and business confidence will further deteriorate

until there is some resolution to the public sec-

tor debt strains that are engulfing the eurozone

and the U.S. The fiscal challenges are not insur-

mountable. The key is for policymakers to act

with conviction and urgency.

In Canada, policymakers should always be

looking for ways to enhance the flexibility of

Canada’s economy and improve its dynamism

and performance. We should break down all

internal barriers to trade and labour mobility, re-

move work disincentives in the income-support

system, eliminate burdensome regulatory proce-

dures and minimize tax administration and com-

pliance costs. We should continue to embrace a

prudent fiscal framework, trade openness and

a culture of innovation. This will ensure that

Canada’s economy is able to adapt to changing

circumstances and can withstand economic and

financial shocks. CB

Tina kReMMidas is The Chief eCOnOMisT Of The Canadian ChaMBeR Of COMMeRCe

The independenT BOaRd: Take a stand on who sits in your chair

By Talar Beylerian

leGal CB

The independenT BOaRd: Take a stand on who sits in your chair

By Talar Beylerian

058

60 LEGAL � Take a Stand on Who Sits in Your Chair

amid market share losses to competitors and technical failures that have angry blackberry users taking to the Twittersphere to vent their frustration, research in motion limited (rIm) faces mounting pressure from investors to shake up its corporate structure. Jaguar Financial Corporation (Jaguar), a shareholder of rIm backed by institutional shareholders who together with Jaguar own eight per cent of all issued and outstanding shares of rIm, recently called for changes in rIm’s corporate governance practices, including a call for the elimination of “a culture of management dominance” and the development of “a collaborative partnership relationship between management and the board.”

One Of The most immediate changes being

sought is the appointment of an independent

chair to the board of directors. Currently, RIM’s

co-chief executive officers (CEOs) Mike Lazaridis

and Jim Balsillie are both co-chairs at RIM.

In advance of the annual meeting of the

shareholders on July 12, Northwest & Ethical

Investments LP (NEI), a shareholder of RIM,

proposed a separation of the roles of chair and

CEO, a proposal endorsed by proxy advisory firms

Glass Lewis & Co., LLC and Institutional Share-

holder Services Inc. On June 30, RIM announced

that NEI agreed to withdraw the proposal. In

return, RIM agreed to establish a committee of

independent directors whose mandate would

include studying the role of a lead independent

director versus a chair and determining “the


business necessity” for RIM’s Co-CEOs to hold

the co-chair position.

The recent critique of the co-CEO, co-chair

structure at RIM highlights the inherent problems

with this type of leadership structure.

There are few statutory requirements with

respect to the position of the chair of the board

of directors. The “chair of the board” must be

a director of the corporation. The Canada Busi-

ness Corporations Act (CBCA) does not contain

a specific provision for the office of the chair of

the board although “chairperson of the board of

directors” is included in the definition of “officer”

under sections 1 and 126 of the CBCA. Similarly,

the Business Corporations Act (Ontario) includes

the term “chair of the board of directors” in the

definition of “officer” under section 1 of that Act

but does not contain a specific provision for the

office of the chair of the board.

The Corporate Governance Guidelines of

National Policy 58-201, adopted by Canada’s Se-

curities Regulators, set out guidelines for report-

ing issuers to consider in developing their own

corporate governance practices. The Guidelines,

which are not meant to be prescriptive, suggest

that the chair of the board should be an indepen-

dent director and where this is not appropriate,

an independent director should be appointed to

act as “lead director.”

Whether it is appropriate to combine the po-

sitions of CEO and chair has been the subject of

considerable debate. On the one hand, proponents

of the split model argue that a board chaired by

the CEO cannot effectively monitor and assess

62 LEGAL � Take a Stand on Who Sits in Your Chair

management’s performance and will be faced with

an inherent conflict of interest. On the other hand,

others argue that vesting one individual with both

the positions of CEO and chair ensures that the

individual has nowhere to hide. Furthermore, some

critics of the split model argue that a non-executive

chair might inadvertently undermine the CEO (or

vice versa) as the fractured leadership can create

confusion as to who leads the company and who

leads the board.

For effective corporate governance, the

board of directors should have a voice indepen-

dent from management. The board of directors

is entrusted to oversee the conduct of business

and supervise management. To fulfil this role, the

board must be able to monitor, actively scrutinize

and question management.

In order to ensure that the board is able to

act independently, appropriate structures, pro-

cedures and policies should be put in place. One

obvious solution is to clearly separate the office

of the chief executive from the office of the chair

of the board. In the alternative, if this separa-

tion is not appropriate and the chief executive

officer and the chair of the board are the same

person, the board can assign responsibility to an

independent “lead director.” One of the problems

with the latter approach is that overlap between

the responsibilities of the chair of the board

and the lead director can impact the compara-

tive effectiveness of the roles. The “chair of the

board” title bears a certain weight and remains a

hierarchical symbol of leadership to other board

members, shareholders and management. The

lead director may struggle to get out from under

the shadow of the CEO-chair.

There is increasing recognition in the

U.S. and Canada that the appointment of an

independent chair is an important step toward

the development of an independent board. Of

course, merely splitting the role of the chair

and the CEO does not guarantee effective

independent oversight by the board. The key is to

strengthen the capacity of the board to facilitate

PHOTO CREDIT: SGM / SHUTTERSTOCk.COM


a constructive relationship with management

that is grounded in a mutual understanding

and appreciation of the respective roles of

management and the board. Aside from splitting

the roles of the chair and the CEO, other ways

to achieve this goal include conducting informal

meetings of the board on a regular basis without

the presence of management (such as an in-

camera session without management present

at the end of quarterly board meetings) and the

development and communication of position

descriptions for the board and management

which delineate the limits of management’s

responsibilities and authorities.

The appropriate division between the

management and the board will vary from one

company to the next and may even vary within

the same company from time to time in response

to changing circumstances.

The content of this article is intended to

provide general information for the reader and is

not intended as advice or an opinion to be relied

upon in relation to any particular circumstance.

For specific applications of the law to a particu-

lar set of circumstances, the reader should seek

professional advice. CB

Talar Beylerian practices law as an associate in

the litigation group with McLean & Kerr LLP, a

law firm based in Toronto.

No. 1

No. 1 when fORBes Released its annual ranking of global economies, it showed the rest of the

world what we already know: Canada is the best country in the world to do business.

Canada ranked No. 1 on the list of the world’s best places to do business, ousting

Denmark from the top seat, citing improvements to our tax system, easy administrative

policies, investor protection and the best banking systems in the world.

Canada’s substantial trade, particularly in energy including oil, gas, uranium and elec-

tric power, and great natural resources led to solid economic growth for most of the past

18 years.

The business magazine cited our “affluent, high-tech industrial society in the trillion-

dollar class” as one of the reasons to push Canada up from last year’s No. 4 spot, and

lauded our banking system.

“Buffeted by the global economic crisis, the economy dropped into a sharp reces-

sion in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12

years of surplus,” said the ranking. “Canada’s major banks, however, emerged from the

financial crisis of 2008-09 among the strongest in the world, owing to the financial sec-

tor’s tradition of conservative lending practices and strong capitalization.” CB

66 FINANCE � Dominion Lending Centres

dOMiniOn lendinG CenTRes

Canada’s pre-eminent mortgage company066


dOMiniOn lendinG CenTRes

Canada’s pre-eminent mortgage company

finanCe CB

GARY MAURIS, DOMINION LENDING CENTRES PRESIDENT AND CO-FOUNDER


Dominion lending Centres President and Co-founder, Gary mauris, is as energetic and passionate as the company’s national spokesperson, Don Cherry.


GaRy MauRis, DOMiNiON LENDiNG CENtREs PREsiDENt aND CO-fOuNDER


iT was exaCTly these traits that grew Mauris’

national mortgage and leasing company, Domin-

ion Lending Centres, into the country’s largest

independent mortgage company in less than

five years.

Entrepreneurial at heart, Mauris was vaca-

tioning at his Palm Springs home when an idea

came to him about a new business venture.

It was there that the idea to start a mortgage

company was (literally) at his feet.

“I noticed that the mail I received was filled

with advertisements for several different mort-

gage companies. Curious, I started doing my

homework and learned that 80 per cent of mort-

gages done in the U.S. were being completed by

a U.S. mortgage broker.”

Realizing what works in the U.S. often trans-

lates well into Canada, Mauris partnered with Chris

Kayat, the largest Royal LePage owner in Western

Canada at the time, who also owned a small mort-

gage company primarily to service mortgage trans-

actions through his Royal LePage offices.

Amazed at the amount of high-profile mort-

gage brokers in the U.S., when he asked Kayat to

name his competitors in Canada, Mauris did not

recognize even one company name. “There was

no national company with a focus on brand build-

ing for something so important to the consumer

as finance, which was the motivation behind

starting Dominion Lending Centres in 2006.”

Making mortgages easyWith over 2,000 mortgage professionals of-

fering free expert advice to clients through-

out Canada, Dominion Lending Centres is

the leading national mortgage and leasing

company in the country, helping Canadians

simplify their mortgages and streamline their

overall finances.

“Today, we are the No.1 company in the

country,” says Mauris. “We are dominating

market share, we now have 390 offices across

Canada, and we have access to dozens of

banks, credit unions, trust companies and

“Since we are the no. 1 mortgage provider in Canada, we work on behalf of the lender to provide Canadians with the very best options to meet their mortgage financing needs.”


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other lending institutions. It’s been a real fun

ride and certainly hasn’t been without tons of

effort, passion and hard work.”

Whether Canadians are looking to buy a

home, renew a mortgage, purchase a rental

property or vacation home, or lease business-

related equipment, Dominion Lending Centres

has a product available that will fit the unique

needs and financial situation of each client.

Success has come quickly to Dominion

Lending Centres, named the Best Newcomer

(Mortgage Brokerage Firm) at the 2008 CMP

Canadian Mortgage Awards (dubbed the

Oscars of the mortgage brokering industry),

and has achieved incredible growth. At the

2009 CMAs, Dominion Lending Centres

received the Best Branding Award, and again

in 2010, with the addition of the prestigious

title of Mortgage Brokerage of the Year and

Best Advertising. Dominion Lending Centres

was also ranked on the PROFIT Hot 50 list of

Canada’s emerging growth companies by Profit


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�rstnat ional .ca

First National would like to congratulate Dominion Lending Centres.

Best of luck and continued success fromCanada’s #1 Mortgage Broker Lender.

Delivering Ser vice. Creating Solutions. Building Success.

First National is licensed under the Mortgage Brokers, Lenders and Administrators Act 2006 (Ontario) Licence No. 10514

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First National_p2.pdf 1 10/28/2011 3:12:29 PM

magazine for two consecutive years, and Mauris

himself was a finalist for the 2011 Ernst & Young

Entrepreneur of the Year award.

“This year, our company will fund $11.5

billion in mortgages,” says Mauris. “Out of all

mortgage companies, we hold 16 per cent mar-

ket share Canada-wide and, in some markets,

over 30 per cent market share. We are growing

today faster than we ever have.”

This volume, of course, is part of Dominion

Lending Centres success. By sending $11.5 bil-

lion in mortgage business a year to the banks

and other financial institutions, Dominion Lend-

ing Centres is offered better mortgage products

and rates and faster turnaround times. “Because

we send these banks so much business, they

automatically give us better rates and often more

favourable terms.”

“That equals 65,000 mortgages this year

across Canada through our company. Since we

are the No. 1 mortgage provider in Canada, we

work on behalf of the lender to provide Canadians

with the very best options to meet their mortgage

financing needs.”

Mauris credits some of this growth to a

customer who is now highly-educated in the value

of using a mortgage broker. “I see it all the time

where people have been lifelong customers of a


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certain bank, and have up to three mortgages

there, plus a business account, their RRSP,

and typically in an hour I can beat their best

negotiated rate by at least half a point. It’s like

being able to offer the client wholesale versus

retail mortgage rates.”

Through this high level of mortgage volume,

Dominion Lending Centres has developed a

good working relationship with the banks. “I’m

going to send Scotiabank $2 billion in business

this year and CIBC $2 billion in business this

year, so when it comes from Dominion Lending

Centres, the banks provide a product that lets

us bring customers in their doors. We under-

write and package the deal, and all they have to

do is fund it. Because of that they give us better

rates, faster turnaround and better service.”

For mortgage consumers, Dominion

Lending Centres offers choice, certainty and

savings. Mauris credits his company’s success

to the fact that mortgages are about much

more than rates—they’re also about providing

expert mortgage advice catered to each

borrower’s needs. “We have to compete, no

question, and we always will,” he says. “But

it’s about choosing the right mortgage product

for your situation. In some cases we look at

your entire package, not just the mortgage,

but also personal debt, lines of credit, student


PHOTO CREDIT: DAVE O/ 61-MCLEAN-CHERRY-POSTGAME2

loans, etc., and create a consolidated payment

package, which can save you up to $800 a month

in throwaway interest.”

And, especially in a more challenging

economy, throwaway is the last way you want to

describe your savings. That said, Mauris believes

Canada will avoid the economic pitfalls that have

troubled the United States. His expertise in the

mortgage market is so valuable that he was

handpicked to be on a select team of 15 people

to work with Canadian Minister of Finance Jim

Flaherty.

During the budgetary consultation, Mauris

“acknowledged the Finance Department’s vital

dOn CheRRy CeleBRiTy endORseMenT deal


role in providing emergency mortgage liquidity dur-

ing the credit crisis, and also encouraged the gov-

ernment to consider an alternative to eliminating

35-year high-ratio amortizations, whereby a borrow-

er may have to qualify at a 30-year amortized pay-

ment but retain the right to a 35-year amortization.”

Mauris exemplifies the best in Canadian busi-

ness. By focusing in on an underserved market, not

only has he created a thriving business, but also

offers an important service for customers unsure of

the best way to navigate through complex financial

arrangements. CB

www.dOMiniOnlendinG.Ca

Dominion Lending Centres signed Don Cherry

to a multi-year celebrity endorsement deal last

year and has seen tremendous growth as a result.

No other Canadian mortgage brokerage has

ever done anything like this before.

Don Cherry is by far the most influential

commentator and is one of the most recognizable

people in Canada. He’s best known for being the

‘flamboyant yin’ to Ron MacLean’s ‘yang’ on the

popular Coach’s Corner segment on Hockey Night

in Canada, the most watched sports telecast in the

country. Cherry was recently named one of the Top

10 Canadians of all-time in the nationwide CBC

program The Greatest Canadian, which polled the

Canadian public at large. He was also ranked in

the May 2010 issue of Reader’s Digest as one of the

most trusted Canadians.

“Hey, Hey! I don’t know mortgages, but my

friends at Dominion Lending Centres know,

and they’ll get you the best rate!” exclaims

Cherry as the perfect hand-off happens in the

first TV commercial.

Cherry knows a lot about many things, but

when it comes to mortgages, he’s stumped. The

opportunity here is to address that Cherry is just

like many Canadians who don’t know about the

benefits of using a mortgage professional.

dOn CheRRy CeleBRiTy endORseMenT deal

landRy MORinConscientious and conservative investment management

078

For financial security in turbulent times, a thought out and balanced investment portfolio can result in peace of mind. montreal-based investment manager landry morin has built a reputation for prudent financial management with years of proven discretionary portfolio management for private clients, pension funds, foundations and endowment funds.

landRy MORinConscientious and conservative investment management

finanCe CB

80 FINANCE � Landry Morin

JEAN-LUC LANDRY, PRESIDENT RICHARD MORIN, PORTFOLIO MANAGER AND COO

Landry Morin was founded in 2002 by Jean-

Luc Landry and Richard Morin, Principals,

on the premise of delivering optimal returns

on personalized investment policy tailored

specifically to the circumstances, wants, needs

and comfort of the client. In that time, Landry

Morin grew to be a mid-size firm in Canada.

In a time when many people are question-

ing the best approach to finance management,

Landry Morin has a sober and proven approach

to navigating—and explaining—international

markets. For added security, the assets of Landry

Morin’s clients are held by TD Waterhouse In-

stitutional Services, a subsidiary of TD Bank.

“Landry Morin does pure investment manage-

ment and none of the back office work, so we

don’t touch the assets of the client,” says Landry.

“We selected TD because it is the largest, possi-

bly most efficient firm in Canada.”

Landry Morin essentially runs two busi-

nesses under one umbrella: Landry Morin

Funds, a family of equity funds available

through investment advisors in Quebec and

Ontario as well as a hedge fund which exploits

a proven quantitative systemic strategy man-

aged internally, and diversified and tailored

portfolios comprised of domestic and interna-

tional exchange traded funds.


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For one, how does Landry Moring protect its

clients and their investments? “Our hedge fund

has done well, especially in the summer during

that difficult period,” says Morin. “That is what it

is designed for and that is what it did.”

Typically, Landry Morin’s 150 direct clients

are high net worth individuals, endowment funds

and pension funds.

Asked about the Canadian markets, Landry

says the domestic economy is not as fragile as it

is represented in media, and feels concern for cli-

ents who are understandably anxious about the

state of affairs. “I find it difficult for our clients,”

he says. “Maybe I am more patient than average,

I find that clients find it more difficult as time

goes by with these deep cycles we have. But it is

more fear than reality. In this downturn we are

down five per cent, but people pick up the paper

and think their portfolio has just collapsed.”

“Two factors lead us to believe there is a

good chance this bear market will be over by

year-end,” reads Landry Morin’s Third Quarter

Review. “First, an analysis of the 10 bear mar-

kets since the 1950s shows that once the stock

market has fallen 20 per cent, two things can

happen: the market will continue to drop for a

total loss of 50 per cent or it will decline on aver-

age another five per cent to 10 per cent and then

82 FINANCE � Landry Morin

landRy MORin’s invesTMenT philOsOphy is Based On ThRee Main pRinCiples Of MOdeRn finanCe:

1. Index management outperforms

traditional security selection

The majority of individual and institutional

investors are now investing a portion or all

of their portfolios on an index basis for the

simple reason that this approach offers better

returns at lower costs.

For almost a decade, Landry Morin has been

a pioneer in using exchange-traded funds

for private clients. We choose from among

hundreds of exchange-traded funds to create

the optimal portfolio.

2. More than 90 per cent of a portfolio’s

return is explained by asset allocation

Over the long term, a portfolio’s returns are

explained essentially by its allocation among

the various asset classes.

With each partner having more than 25

years of experience, Landry Morin has all

the expertise required to manage the three

aspects of sound asset allocation:

• Establish a strategic allocation based on the

client’s investment policy and objectives

• Rebalance the portfolio periodically when

market fluctuations cause it to stray from

the target allocation

• Make tactical changes to preserve capital

and to take advantage of asset classes that

are considered undervalued or that offer

better potential

3. Psychology plays an important role in

financial markets

Financial markets and the prices of publicly

traded stocks are occasionally affected by

irrational investor behaviour. Research clearly

shows that a purely quantitative, disciplined

and systematic approach allows investors

to take advantage of market distortions and

generates superior returns.

Landry Morin Funds exploit these market

anomalies to offer superior returns and

contribute significantly to the performance of

a diversified portfolio.


“our hedge fund has done well, especially in the summer during that difficult period,” says morin. “That is what it is designed for and that is what it did.”

recover quite quickly. The conditions that would

lead to a total decline of 50 per cent are not

present because equities were not expensive at

the peak and there is little chance that the po-

tential recession will be very severe.”

Landry Morin uses a mix of exchange traded

funds and its own proprietary funds to construct

diversified and balanced portfolios that can with-

stand the ups and downs of financial markets.

“A typical balanced portfolio will hold close

to 50 per cent in fixed income securities and

assets that are not correlated with the stock

market,” says Morin. “This constructs a con-

servative portfolio for the client. 20 per cent of

our private client assets are invested in Landry

Morin funds, the other 80 per cent are invested

in broadly diversified corporate and government

bonds and stocks in Canada, U.S., international

and emerging markets.” CB

www.landRyMORin.COM

pRepaRinG fOR The new nORMal

084

ED DEVLIN (CENTRE), EXECUTIVE VICE-PRESIDENT AND HEAD OF CANADIAN PORTFOLIO MANAGEMENT, WITH THE CANADIAN TEAM

pRepaRinG fOR The new nORMal

Pacific Investment management Company, llC

finanCe CB

photo by bill Gallery

86 FINANCE � PIMCO

Global investment management and so-

lutions firm Pacific Investment Management

Company, LLC, or PIMCO, opened its doors

in Canada in 2004. This addition, the world’s

largest mutual fund, with assets of more than

$1.3 trillion worldwide, brought a formidable

competitor to the mutual fund market.

PIMCO’s mantra is straight forward, to be

the global investment authority for retail and in-

stitutional investors. Stuart Graham, President

of PIMCO Canada, tells CBJ exclusively that this

means “to take a needs based approach to

whatever [the investor’s] needs might be, and

increasingly in today’s market those are more

complicated needs, and we align that with ap-

propriate investment solutions.”

Fixed income investments have broad ap-

peal

The historical roots of PIMCO are funda-

mentally a fixed income investment house, and

while the company has broadened its capabili-

ties, PIMCO is globally recognized for its results

in this forum. Started on the sunny shores of

Orange County, Calif., by three men with a view

to hire the best and brightest and revolution-

ize the markets, fast forward 40 years, PIMCO

has $1.3 trillion (yes, with a T) in global assets,

$9.7 billion of which are in Canada, making it

one of the world’s most successful companies.

Typically, investors have an appetite

ED DEVLIN, EXECUTIVE VICE-PRESIDENT AND HEAD OF CANADIAN PORTFOLIO MANAGEMENT


Global investment management and solutions firm Pacific Investment management Company, llC, or PImCo, opened its doors in Canada in 2004. This addition, the world’s largest mutual fund, with assets of more than $1.3 trillion worldwide, brought a formidable competitor to the mutual fund market.

piMCO’s ManTRa is straight forward, to be the global investment authority

for retail and institutional investors. Stuart Graham, President of PIMCO

Canada, tells CBJ exclusively that this means “to take a needs based ap-

proach to whatever [the investor’s] needs might be, and increasingly in

today’s market those are more complicated needs, and we align that with

appropriate investment solutions.”

photo by bill Gallery


Fixed income investments have broad appealThe historical roots of PIMCO are fundamentally

a fixed income investment house, and while the

company has broadened its capabilities, PIMCO

is globally recognized for its results in this forum.

Started on the sunny shores of Orange County,

Calif., by three men with a view to hire the best

and brightest and revolutionize the markets, fast

forward 40 years, PIMCO has $1.3 trillion (yes,

with a T) in global assets, $9.7 billion of which

are in Canada, making it one of the world’s most

successful companies.

Typically, investors have an appetite for

bonds, or fixed income investments, in tumultu-

ous economic times, when low risk and low re-

ward is an appealingly safe bet. With a top down,

macro-economic framework, PIMCO’s long-term

perspective on the market makes its funds at-

tractive to the conservative investor.

“If we can get that top down thesis correct, then we are going to make appropriate investment decisions for investors,” says Graham. “We dub this framework ‘The new normal’.”


(416) [email protected]@robitailleinteriors.com

www.all-win.ca

It has been a pleasure for the All-Win/Robitaille team to work with the Pimco Toronto team on their office relocation and build out. We appreciate the opportunity to offer our Design/Build turnkey services to Pimco and with our single source one point of contact project delivery method we were able to complete the project on time and on budget with attention to quality and detail.

With our design and construction as one company we are able to

successfully complete Design/Build and Turnkey projects for such

clients as. Facebook, Linked IN, Dundee Precious Metals, Ontario power

authority, and a larges number of Design/Build turnkey projects for

Rio-Can a Toronto builder and developer and the National Hockey

League to name a few.

At All-Win/Robitaille we have the confidence,experience and ability to

complete any project large or small and to provide added value for our

customers and clients.

The framework of The New Normal is that

the current economic situation is not your garden

variety recession and recovery; rather, what

we are seeing is a fundamental and durable

changes to the investing landscape.

“Key reasons behind these changes are

related to deleveraging in the market and now

both businesses and household consumers

trying to dig themselves out of high debt rates,”

says Graham. “Reregulation in the market place

is one factor. Another is an increasingly multi-

speed economy, meaning developing markets

are in this cycle of very low growth, while emerging

markets are experiencing a breakout phase of

their development.”

The market and investors trust PIMCO’s abil-

ity to understand the macroeconomic framework,

and to translate that into an investment strategy

which, over business cycles, has produced mean-

ingful alpha for clients. “We earned that $1.3 tril-

lion the old fashioned way, namely we have never

merged with anyone, but have earned business

one investor at a time.”

When asked to comment on the turbulence

in the markets of late, Graham replies, “These

last eight weeks has been a more challenging



investment environment than we have seen in

the previous 10 months. We have seen extraor-

dinary events, not the least of which is the crisis

in Europe and the U.S. credit ranking down-

grade which make it difficult to invest in that

period. Fundamentals are not really what are

driving the market and that has created noise in

the portfolio lately.”

Despite these truths, Canada has been

sheltered somewhat by these extraordinary

events. In an essay entitled A Practical Guide

to Liability-Driven Investing, PIMCO’s Ed Devlin,

Executive Vice-President and head of Canadian

portfolio management, states, “Since the finan-

cial crisis, we have found that many investors

are more concerned about financial repres-

sion: a process by which government policies

are designed to keep real rates of return low in

order to help countries to reduce their debt-to-

GDP over time by providing savers with a poor

inflation-adjusted rate of return...In Canada, we

expect less financial repression than in the U.S.

or United Kingdom. At the same time, Canada

appears to be a destination of choice for much

of that offshore capital trying to escape finan-

cial repression. In this New Normal environ-

ment, we expect to see low real yields while

breakeven inflation expectations (BIE) remain

well anchored.”

Eight new Canadian fundsAt the beginning of this year, PIMCO launched Ca-

nadian registered mutual funds, offering diverse

investment solutions for client’s particular needs.

Ranging from Short Term Bonds, to Total Return

Bond Funds, and Global Balanced Funds, these

funds are an innovative suite of investment solu-

tions, created within the framework of The New

Normal.

Investors are welcomed to review PIMCO’s

literature or visit its website, or Canadian office in

downtown Toronto. CB

www.Canada.piMCO.COM

huB finanCialmanaging General agency

huB finanCialmanaging General agency

finanCe CB

092

94 FINANCE � HUB Financial


originating from the acquisition of four separate operations by its parent company hub International, hub Financial has grown over the last 12 years to become one of Canada’s largest and leading managing General agencies (mGa). The initial challenge hub Financial faced during its infancy was the integration of four separate mGa operations, each with its own leadership, distinct culture, and unique market, to become one cohesive and well-oiled machine, with its own identity, brand and value proposition.


Standard Life celebrates HUB

The Standard Life Assurance Company of Canada October 2011 ©2011 Standard Life

To find out more about Standard Life financial products, contact HUB Financial or visit

Close partnerships, like the one Standard Life enjoys with HUB Financial, help make our number 1 goal possible: To help our customers look forward with confidence and optimism.

Standard Life is a long-term savings and investment company that has been doing business in Canada for 178 years. Headquartered in Edinburgh, Scotland, with around 6 million customers worldwide, Canadian operations boast 1.4 million, including group insurance and retirement plan members.

www.standardlife.ca


Standard Life celebrates HUB

The Standard Life Assurance Company of Canada October 2011 ©2011 Standard Life

To find out more about Standard Life financial products, contact HUB Financial or visit

Close partnerships, like the one Standard Life enjoys with HUB Financial, help make our number 1 goal possible: To help our customers look forward with confidence and optimism.

Standard Life is a long-term savings and investment company that has been doing business in Canada for 178 years. Headquartered in Edinburgh, Scotland, with around 6 million customers worldwide, Canadian operations boast 1.4 million, including group insurance and retirement plan members.

www.standardlife.ca


as an inTeGRaTed unit, HUB Financial estab-

lished its own objectives, goals, mission and,

perhaps most important, its own identity. Today,

the company has emerged as one of Canada’s

most recognized, industry-leading MGAs.

John Lutrin, Chief Marketing Officer with

HUB Financial, was passionate about the com-

pany when describing the enormous growth

achieved by HUB Financial since the company

came together in 1999. He explains the parallel

approach of two key growth strategies—organic

growth, and growth by acquisition—both key ele-

ments of HUB Financial’s growth strategy.

Organic growthOrganic growth drives new business from the

existing broker base of HUB Financial. Existing

brokers, who are the direct clients of HUB Fi-

nancial, are served in ways that enhances their

productivity, thus boosting organic growth. This

is achieved by providing brokers a robust offering

of resources, tools and expertise that enables

brokers to conduct their business at maximum

efficiency. It also provides brokers a full-service

back-office platform allowing brokers to maintain

their focus on serving clients rather than being

caught up in administration and processing.

Growth through acquisition, coincidentally

how the company originally began, has contin-

ued, and HUB Financial has aggressively pursued

opportunities for further growth through finding

entities that are well suited for acquisition.

JOHN LUTRIN, CHIEF MARKETING OFFICER, HUB FINANCIAL


™ Trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.

Proud to work with HUB Financial in helping Canadians build their wealth and protect their financial security.

Investments • Insurance • Group solutions www.empire.ca [email protected]

PARTNERS IN BUSINESSPARTNERS IN SUCCESS

CanadianBusinessJournal-2011-10-EN-v3.indd 1 11-10-17 8:35 AM

“We look for entities that we believe would

be the right fit for our corporate culture and for

our production and business objectives,” Lu-

trin said. “This has been our strategy and will

continue to be so.”

The goal is to continue providing a valuable

offering, so as to satisfy existing brokers as HUB

Financial continues to enhance their productiv-

ity, as well as attracting new customers to HUB

Financial by making its value proposition known

in the industry. Lutrin summarized, “That is the

vision and that’s how we seek out our growth.”

Steady in volatile marketsHUB Financial is well positioned through its busi-

ness streams, but perhaps one area that has


been volatile to economic conditions in recent

years has been the investment side of the busi-

ness. While HUB Financial is primarily an MGA, it

also serves as a Mutual Fund dealership through

HUB Capital. The investment focus of HUB Finan-

cial however is tied to segregated funds, “the life

insurance industry equivalent of mutual funds”.

HUB Financial is noted for its focus on the protec-

tion aspects of segregated fund offerings, where

it educates brokers on the product selection

process for clients based on suitability and client

profile. Built-in protections and guarantees make

the appetite for segregated funds more appeal-

ing in uncertain economic times.

“In some ways, a more volatile market is re-

ally an opportunity for us to highlight the value

of segregated funds, which is such a key com-

ponent of the investment products that we of-

fer,” Lutrin explained. “The more uncertain and

volatile the economic climate is, the more aware

of capital protection advisors become, making

segregated funds an attractive alternative to

investors seeking greater protection.”

Ensuring that brokers and customers recog-

nize the value proposition offered by HUB Fi-

nancial is key to organic growth for the company

moving forward. Customer satisfaction is of high

importance to HUB Financial, and the company

works to ensure that it adds value and efficiency

wherever possible. As an MGA, HUB Financial

works between the advisor and the life insurance

company, often adding value with leading-edge


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SR

M18

4A-1

4

technology. Lutrin joked that HUB Financial is in

fact on the “bleeding edge” because, as pioneers

to the managing general agency industry, HUB

Financial has cut its teeth and has taken the

knocks of trial and error. He summarized, “We

believe it is really important for us to be at that

leading edge, rather than being a follower.” HUB

Financial is always seeking out new and inno-

vative ways to improve efficiency and increase

value to brokers. “Sometimes it hurts us in the

short run, but we stay focused on our strategic

vision,” Lutrin said.

Customer satisfactionAlong with broad product access in the Life, Liv-

ing Benefits and investment arenas, HUB Finan-

cial offers guidance and expertise to brokers so

that the correct and most suitable options are

selected by the broker. This is done on a case by

case basis, where HUB Financial’s team of spe-

cialists is on hand for their brokers to guide and

advise. Lutrin summarized, “We maintain consis-

tency. The HUB Financial brand now contains an

identity that stands for consistency in support, so

the brokers have an expectation of what they can

expect from HUB Financial.”

Becoming a single brand as HUB Financial,

the leverage is noticeable. Now, rather than

being five fragmented companies as it was 12

years ago at the outset, HUB Financial contin-

ues to build and increase its efficiencies and its

offerings, ultimately attracting more advisors

and more business, building momentum for the

company to keep moving forward.

Lutrin concluded, “The industry is kind of at a

threshold in terms of where it is headed. We want

to maintain a competitive edge by being the MGA

that has the strength and the resources available to

not only survive in a new era, but thrive.” CB

www.huBfinanCial.COM

TiMBeRCReek asseT ManaGeMenTInvesting in real estate

102

TiMBeRCReek asseT ManaGeMenTInvesting in real estate

finanCe CB

104 FINANCE � Timbercreek Asset Management


beginning in 1999, the focus of Timbercreek was to build a portfolio of Canadian apartment buildings, based on the company’s philosophy of direct ownership. a philosophy of active management is followed by the company’s investors, a style Timbercreek has also carbon copied over the years.



Meeting Client Needs.Exceeding Resident Expectations.

www.coinamatic.com

Congratulations to

On Their Success

Timbercreek Asset Management

“wiTh OuR iniTial focus of acquiring apartment

buildings in Canada, it was our belief that there

was an ability to buy buildings that were not

being managed to their fullest potential,” Blair

Tamblyn, President and CEO of Timbercreek As-

set Management, told The Canadian Business

Journal. “Then we could build a team to improve

those assets, create value and generate predict-

able cash flow at the same time.”

High value in high riseFor the first five years of the company’s

operation, the focus was almost exclusively

on adding Canadian apartments to its

portfolio with the hopes of adding increased

value to these properties through improved

management and operations. Through this,

Timbercreek built an asset and property

management business to run the buildings

and assets under its ownership, a daunting but

worthwhile responsibility.

“Most people typically outsource the man-

agement component because it is quite labour

intensive and not the most glamorous busi-

ness, but we felt strongly that it was the only

way we could be consistent with our philosophy

of active management,” Tamblyn explained.

In hindsight, Timbercreek now attributes its


efforts in its beginning years of operation to what

now serves as the company’s successful founda-

tion. Like the assets it serves, a solid foundation

is crucial to success.

Vertical integration has also played a no-

table role in the long-term success of Timber-

creek. Unlike many other asset management

firms, Timbercreek sees through its asset

investments in terms of the beginning acqui-

sition through to the operation of individual

buildings, something that has provided plenty

of comfort for external instituational investors,

which have now developed a strong following

with Timbercreek.

Focus on real estateThe beginning years of the company—acquir-

ing, maintaining, and operating Canadian apart-

ment buildings—created the revenue required

for Timbercreek to then make the next step.

Revenue from this allowed the company to seek

other opportunities of potentially larger revenue

flows, ultimately leading to the development of

the lending arm of Timbercreek. The company

has worked to develop this secondary—but just

as important—core competency of its operations.

Revenues from asset management of apart-

ments have allowed Timbercreek to further explore

the real estate industry. As such, Timbercreek


began acquiring and managing real estate as well,

expanding its team to have the capacity to originate

debt across Canada. Specifically, Timbercreek does

not pursue existing marketplace mortgages, but

rather seeks out lending opportunities that allows

the company to create a mortgage it is underwriting

to the borrower, and the borrower’s assets, to be

used as loan securities.

As an active manager, Timbercreek promotes

direct ownership of real estate. Tamblyn added,

“Active management is the interaction and direct

relationship with the borrower. That was incre-

mentally the focus for the next two to three years.

We built out a successful business from there.”

Still, this doesn’t mean that Timbercreek

subscribes to the philosophy that bigger is bet-

ter. In fact, the opposite is true of the company’s

philosophy. Timbercreek’s assets under manage-

ment are built upon its primary focus of engaging

in the businesses in which it is already involved,

continuing to execute the responsibilities in

which the company has already endeavored. Fur-

ther growth in the future is expected and is not

ruled out. Tamblyn said, “As the team grows and

as we continue to have comfort in our ability to

look at new opportunities, I think we will [grow],

to the extent that [these opportunities] are com-

plementary to what we are doing now.”


Timbercreek provides investment opportunities

to individuals and institutions looking for predomi-

nantly yield with low volatility, something that real

estate investment provides as it focuses on long-

term predictable cash flow. Strategies developed

by Timbercreek allow the company to make invest-

ments through equity and through debt to enable

predictable cash flow that is ultimately developed

within the real estate sector. Timbercreek identifies

valuable investment opportunities in the global real

estate industry and then strategizes how best to

invest in these areas.

It’s a four quadrant strategy for Timbercreek:

Based on a national platform, Timbercreek

operates 10 offices across Canada, which allows

the company to deploy its active management

philosophy as it is in close proximity to its

properties under management.

Dealing with the economic downturnInvestors are impressed with the stability that

Timbercreek has provided in recent years of

market volatility. In fact, Timbercreek has grown

by 50 per cent in the last few years. The com-

pany remained successful during the economic

downturn, most impressively by showcasing its

operational philosophy of low volatility real estate

ownership providing predictable cash flow, and


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less fluctuation than that of broader equity and

debt markets.

It’s a philosophy that Timbercreek plans to

continue to carry into the future. As Tamblyn put

it, “We’re focused on predictable low volatility in-

vestment opportunities and I’d expect we would

evaluate those and, if they make sense, offer

them to our clientele.” CB

www.TiMBeRCReekfunds.COM

112

insiGhTs fROM The CaRBOn disClOsuRe

This month, I had the privilege of being invited to the house of the british Consul General for a reception to celebrate the announcement of the Carbon Disclosure Project (CDP) report 2011. We agreed to meet for lunch the following week and during the course of the lunch it became very clear that exploring and implementing sustainable growth was a key focus for him as it related to our two countries.

seRies

112

insiGhTs fROM The CaRBOn disClOsuRe

This month, I had the privilege of being invited to the house of the british Consul General for a reception to celebrate the announcement of the Carbon Disclosure Project (CDP) report 2011. We agreed to meet for lunch the following week and during the course of the lunch it became very clear that exploring and implementing sustainable growth was a key focus for him as it related to our two countries.

by Dwayne Matthews

114 CLEAN 15 � Insights from the Carbon Disclosure Project


i deCided TO speak about the CDP and was a

little shocked that many of the folks that I ran

into outside of the cleantech world did not know

about it and its commanding influence on global

corporate strategy. The Carbon Disclosure Project

represents 551 global investors with assets of

over a whopping $US71 trillion. They work with

investors globally to advance the investment op-

portunities and reduce the risks posed by climate

change by asking almost 6,000 of the world’s

largest companies to report on their climate

strategies, GHG emissions and energy use.

I thought it would be of great value to share

the key findings of the report in this month’s

Clean 15 Series. This year the highest number of

Canada’s largest companies responded at 108.

This represents response rate of 54 per cent and

is an increase from 46 per cent the year before.

Companies are starting to get the message that

to attract investment, reporting to the CDP is

becoming more important and the risk of not re-

porting will have serious ramifications in the not

so distant future.

An opportunity for businessesAnother key finding was that companies were

starting to see climate change not solely from a

risk mitigation perspective, which is important,

but from an opportunity perspective, which may

be even more important for action on the chal-

lenge. Companies were taking a strategic ap-

proach to climate change and were taking action

to seize commercial value from its effects. Many

companies were using awareness to generate

new revenue streams. 54 per cent indicated they

were providing products and services to aid third

parties in reducing their GHG emissions. Others

were using it to build brand value and worked

to gain competitive advantage by communicat-

ing their climate friendly practices and emission

reduction actions. According to the report, 91

of the respondents reported 425 emission re-

duction activities. This would imply that many

companies were working at reducing operational

expense. The report went on to say that energy

efficiency initiatives in operations and building

services were among the most popular.

RegulationsA third key finding was around regulations. This

was seen as a risk as well as a potential oppor-

tunity. In big business the one thing that makes

everyone nervous is uncertainty, however it is the

one constant and it seems that the upcoming

decade will belong to those that can best navigate

and take advantage of uncertainty. This will pose

a major challenge for many large companies that

solely focus on superior disciplined processes. In

116 CLEAN 15 � Insights from the Carbon Disclosure Project

yesterday’s world this was the ultimate strength,

however in the 21st century, new perspectives are

needed, as volatility around inputs and emerging

competitive threats are the order of the day. Most

companies perceived regulatory risks as a low to

medium increase in operational costs, however

more companies reported climate related oppor-

tunities for the second year in a row. 67 per cent

reported regulatory opportunities suggesting that

a climate restraint economy can bring benefits

across a variety of business sectors.

Business strategyThe fourth key finding was that the majority of

respondents are already integrating climate

change into overall business strategy. 75 per

cent of the Canadian companies that respond-

ed have integrated climate change into their

strategies. This signals a commitment to long

term, sustainable growth. Canada is ahead of

its global counterparts as this compares with

68 per cent of the Global 500 respondents of

the S&P 500.


With momentum building and the field of

concerned companies starting to level out, many

companies will have to move up the value chain

as it relates to their carbon reduction efforts.

Open innovation will play a key role here. Compa-

nies will have to source new ideas, new technolo-

gies as well as new models globally to continue

to take advantage of the opportunities presented

by carbon emission reduction. Companies that

fall behind in this area risk being eliminated by

the evolution of a redefined playing field.

After the first pass of changing light bulbs,

using less air conditioning and recycling paper, it

will come down to finding new innovations globally

that will significantly reduce emissions, resource

consumption, and explore new disruptive models

that will generate significant growth opportunities.

Momentum is starting to shift paradigms and pre-

paredness will be a competitive necessity. CB

Dwayne Matthews is the Managing Director of

Clean 15, The Canadian leader in open innovation.

Thinking of selling your company? 118

By Mark Borkowski

Thinking of selling your company?

ManaGeMenT and OpeRaTiOns CB

120 MANAGEMENT AND OPERATIONS � Thinking of selling your company?

maybe a retirement Compensation arrangement could be your way to a flexible pension plan.

deMOGRaphiCs diCTaTe ThaT as many as 80 per

cent of small business owners will either sell or

pass on their businesses to heirs over the next

10 to 15 years. There are many ways to free

up a significant amount of the wealth tied up

in your business, but how do you complete this

transfer and incur the least amount of tax?

“Owners of small manufacturing business-

es are generally experts in their fields but likely

unaware of the intricacies of orchestrating a

tax efficient sale,” says Michael Soble of the

Reynolds Soble Group at CIBC Wood Gundy.

“And they may not have a professional advi-

sor, like a lawyer or accountant, who is familiar

with all of the options”.

One often-overlooked strategy is the use

of a Retirement Compensation Arrangement

(RCA). Properly structured and implemented, it

will drastically reduce the overall tax impact of

a sale and provide a creditor-proof, flexible and

tax-efficient pension plan.

Business sales typically involve assets or


shares. Most owners prefer to sell the shares

and gain access to the $750,000 lifetime

capital gains exemption, while purchasers

prefer buying the assets. The tax treatment

on each type of sale is different, but an RCA is

particularly useful when the sale involves the

assets.

The rules surrounding the establishment,

funding, ongoing management and withdraw-

als from an RCA are complex, but to summa-

rize: an RCA is established under the rules of

the Income Tax Act, and allows a company to

make tax deductible contributions on behalf

of key employees to build a retirement pen-

sion. The contribution guidelines are generous

(compared with RRSP limits) and actuarially

determined based on income and years of

service. Funds are not locked-in as they would

be in a normal pension plan, they are creditor

protected; withdrawal rules allow for flexibility

in terms of timing and amounts; and there are

few investment restrictions. “The bottom line is

that once the RCA is reasonably funded (which

can be from the proceeds of a sale of assets),

there is a great deal of flexibility as to how the

money can be invested, the amount and the

timing withdrawals, and even passing along

RCA assets to spouses and other beneficia-

ries,” says Soble.

Here’s a simple example. Assume the following:

• Business assets sold for $3 million net

proceeds.

• A $3 million RCA contribution is deter-

mined to be reasonable under Canada

Revenue Agency guidelines.

• If there is no RCA, the owner will bonus

this out, pay tax personally and

• invest the remainder.

• Investments earn five per cent annually.

• The owner requires $190,000 per year,

net of taxes, for the next 10 years from

• his investments, or from the RCA.

With no RCA, sale proceeds are $3 mil-

lion, personal taxes (Ontario) are almost $1.4

million (46 per cent), Ontario payroll tax is

$58,500 (1.95 per cent), the balance after tax

is almost $1.6 million and annual withdrawals

are $190,000.

With an RCA for one, there are no personal

taxes and no payroll tax with a balance of $3

million and annual withdrawals are $190,000.

Same for an RCA that adds a spouse, both in

after-tax dollars. But the gross that must be with-

drawn from the RCA each year is higher since it’s

subject to full taxation. For a one-employee RCA,

withdrawal of $321,486 less tax of $131,486

= $190,000 net. With no RCA, withdrawals are

122 MANAGEMENT AND OPERATIONS � Thinking of selling your company?


mainly from after-tax income. After 10 years, the

balance for no RCA is $67,322, $334,504 for a

one-employee RCA and $704,096 for an employ-

ee plus spouse. (The employee plus spouse RCA

assumes equal T4 income from the company

over the years.)

“We are seeing more opportunities for RCAs

pop up in connection with business owners as

they start to actively plan for selling their busi-

nesses,” says Mike Reynolds.

Establishing an RCA is complex and requires

specialist input in the areas of tax, actuarial review,

accounting and investment management, so there

has to be enough dollars involved to make it worth-

while. However, the potential benefits are huge:

immediate and future tax savings; significantly

increased retirement income; and estate planning

flexibility in the future. CB

Mark Borkowski is president of Toronto-based

Mercantile Mergers & Acquisitions Corp., which

specializes in the sale of mid market companiessold

to international strategic and private equity firms. He

can be contacted at [email protected]

The Reynolds Soble Group – CIBC Wood Gundy.

Michael Reynolds (416) 369-8742

Michael Soble (416) 369-7769

new BRunswiCk liquORa toast to new brunswick

new BRunswiCk liquORa toast to new brunswick

fOOd & dRink CB

124

126 FOOD & DRINK � New Brunswick Liquor Corporation


When Daniel allain was named as the new President and Ceo of alcool nb liquor (anbl), new brunswick’s provincial government’s preparations to streamline the province’s Crown liquor corporation was underway.



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The ResTRuCTuRinG is part of a new govern-

ment, helmed by Premier David Alward, elected

on September 27, 2010. Alward gave Allain “a

specific mandate to examine how the corporation

is run and find innovative and practical ways to

make it a more efficient organization and profit-

able asset for the people of this province.”

NB Liquor major provincial contributorANBL manages New Brunswick’s liquor retail

distribution through its 48 corporate liquor

outlets and 72 private agency stores. Patriotic

New Brunswickers have helped contribute over

$159.4 million in net earnings in 2011—to the



province through sales of beverage alcohol,

money that goes towards schools, roads and hos-

pitals and another $45.9 million to the Federal

government in HST, excise tax and duty levies.

Since it was created from the former New

Brunswick Liquor Control Commission in 1976,

ANBL has supported the introduction of brew

pubs, microbreweries and an “agriculture-based”

cottage wine sector, all of which work with ANBL

for distribution. In total, its product portfolio

includes almost 2,000 products, just over half of

which are wines, followed by spirits (29 per cent),

beers (15 per cent) and ready-to-drink products

such as coolers (four per cent).

“In total, its product portfolio includes almost 2,000 products, just over half of which are wines, followed by spirits (29 per cent), beers (15 per cent) and ready-to-drink products such as coolers (four per cent).”

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Insertion dates: 2011

Material due date:Oct. 19, 2011

296 Richmond St. W., 5th fl oor, Toronto, Canada M5V 1X2 T: 416-598-4944 ext. 353 F: 416-598-9714 e: [email protected]

booked as: release as indd PDF X1-a Press Q Pub spec High Quality print•

built at: 100%ad size: 3.75" x 9.75" laser at: 100% on tab size

studio: wlretoucher: jtad/designer: abwriter: xproject mgt: xppm: jd

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Oct. 20, 2011


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Ad Apothic CBJ_10-11-2011.pdf 1 10/11/2011 12:18:45 PM

As such, ANBL is a vital contributor to the

provincial (and, to a lesser degree, federal)

government, and must adapt to the tastes and

trends of the public to ensure it remains so. In

operation effectively since the end of prohibi-

tion, ANBL, in one manifestation or another, has

evolved with the times, and will do so again, this

time to overcome a rocky economy and an in-

creasingly aging population.

“ANBL reinvests in the province and employs

over 600—and we provide great retail service,”

says Allain. “But can we improve? Yes, we can.”

“Over the past 10 years we have been

transforming ourselves from a government run

organization to a retail operation. So when the

new government was formed, the Premier elect

gave us a challenge, to strengthen retail and

market strategies, increase profitability and to

change the governance and culture. The status

quo is really not an option—we need to evolve

and better ourselves.”

Like any retailer, the key to success for ANBL

is to create a competitive edge, something to

welcome customers back to the stores and away

from bargain basement prices across the borders

in the U.S. and Quebec.

One such strategy was to locate ANBL outlets

adjacent to grocery stores, opening new stores


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131 Mill RoadMoncton, NB

E1A 6R1 Canada(506) 854-2537 | pumphousebrewery.ca


Buying for a BBQ

Summer dining is all about simplicity. Throw on your favourite food to grill,

and bring along a BBQ-friendly wine. The wine you are looking for in a BBQ

should probably be bold so it can stand up to the bold rich flavours of the meal.

Recommended varietals include: Zinfandel, Cabernet Sauvignon, Malbec and

Shiraz/Syrah.

Buying for a gardener

This time of year, gardeners are in their glory! Here is a green-thumb themed gift

idea: Fill a Clay pot with seed packets, gardening gloves, and a bottle of easy to

drink summer wine - try one of NB Liquors many New Zealand wines


side by side for convenient shopping and sponta-

neous food pairings.

An internal strategy, ANBL introduced bal-

anced scorecard reporting, employee engage-

ment initiatives and a focus on retail service

excellence. “Our team is dedicated and profes-

sional, has one of the lowest turnover rates in

the province.” In turn, ANBL was named one

of the Top 25 employers in Atlantic Canada in

2010 and 2011 and one of Canada’s Top 100

Employers in 2011.

Unlike most retailers, however, the ANBL

has a monopoly on beverage alcohol sales,

and one might think that these products can


sell themselves. When ANBL’s annual report,

released in September, revealed that while

overall sales were up 1.3 per cent, growth was

led by wine (6.1 per cent), followed by beer

(3.0 per cent) and spirits (1.0 per cent), while

sales of other beverages (coolers and ready to

drink) decreased by 3.0 per cent.

“ANBL achieved growth and encountered

challenges across various markets in 2011,” said

Allain in the report. “The global financial crisis,

which caused a rise in food and gas prices, left

consumers with less disposable income in the

year and contributed to the reduction of 100,000

retail transactions compared to 2010.”

Changing demographics“The national average per cent increase in

wine sales is 3.2, and ANBL was up 6 per

“The objectives—to invigorate the category, increase traffic and volume—were met,” said allain. “We are not optimistic, however, that the trend will reverse in time to affect our second quarter results.”


“The objectives—to invigorate the category, increase traffic and volume—were met,” said allain. “We are not optimistic, however, that the trend will reverse in time to affect our second quarter results.”

cent. As a whole, I am happy about great wine

sales,” says Allain.

“But when beer sales decline, the impact is

greater than when wine as beer sales represent

55 per cent of our sales. The decline was not

specific to New Brunswick; liquor jurisdiction

across Canada saw the same decline.” Allain

also cites higher gas and food prices as reasons

why beer sales are lulling.


daniel allain, pResidenT and Chief exeCuTive OffiCeR

Daniel Allain is responsible for the

strategic corporate direction, leadership

and regional collaboration for the New

Brunswick Liquor Corporation. Daniel holds

a bachelors degree in social sciences with

a specialization in political science and

a master’s degree in administration from

l’Université de Moncton.

Daniel worked in provincial public

service from 1999 to 2004, as the

executive assistant to Premier Bernard

Lord and a project executive with

Business New Brunswick working on

Investment and Immigration files. In

September 2004, Daniel became the

Executive Director of Downtown Moncton/

Centre Ville Inc., where he assumed

an economic development role to

create investment opportunities and

while building a vibrant and inviting

atmosphere for tourists and citizens.

Daniel was born in Woodstock, NB

and raised in South Eastern NB. He is

married to Sylvie Michaud and resides in

Dieppe, NB. The couple has two children,

Catherine and Myriam.

DANIEL ALLAIN, PRESIDENT AND CHIEF EXECUTIVE OFFICER


© Diageo Canada Inc. 2011 All rights reserved. Tous droits réservés.

PleAse eNJOY ResPONsIblY sVP CONsOMMeZ De FAÇON ResPONsAble

Le parfait cocktaiL des fêtesthe perfect hoLiday cocktaiL

Le MaNhattaN royaL1.25 oz. crown royal deluxe

or crown royal Black

0.5 oz. sweet vermouth

3 dashes of bitters

can be served on the rocks or shaken with ice.

Garnish with a maraschino cherry.

1,25 oz de crown royal deluxe ou de crown royal Black

0,5 oz de vermouth doux

3 traits de bitters

Verser dans un verre avec quelques glaçons ou préparer dans un shaker. Garnir d’une cerise au marasquin.

the crowN MaNhattaN

DCCR 110689_CR_CndBsnsJrnl_QtrPgAd_Final.indd 1 11-10-18 5:21 PM

a BRief hisTORy

1916 Prohibition makes the

distribution and sale of alcoholic

beverages illegal in Canada.

1927 Prohibition is rescinded and the

provinces are given jurisdiction over

the importation, distribution, and sale

of beverage alcohol. This sees the

creation of the New Brunswick Liquor

Control Board.

1962 The New Brunswick Liquor

Control Commission replaces the

Liquor Control Board. On premises

sale and consumption is introduced for

restaurants, bars, taverns, etc.

1976 The N.B. Liquor Corporation is

created by legislation resulting in the

separation of the sales and licensing/

control functions. Administration and

enforcement of the Liquor Control Act

remained with the Department of Finance

through the Liquor Licensing Board. That

Board has since been disbanded and

these functions have been moved to the

Department of Public Safety.


PMA Canada

“That is the main message. People want variety and that is why we have increased the number of imported beer and specialty wine products because people want a different experience.”


These numbers show that New Brunswick’s

palate is evolving. “That is the main message.

People want variety and that is why we have

increased the number of imported beer and

specialty wine products because people want a

different experience.”

Allain cites an event during which Andrew

Oland, president of Moosehead Breweries Lim-

ited, described the beer industry as being in the

midst of a “demographic tsunami.” New Bruns-

wick’s population is aging and the signs indicate

their palates are changing with age, as wine is

becoming more popular.

“I won’t say we are at a cross roads just

Philippe Dandurand Wines

yet, however, there is an opportunity to get to

know our customer better,” says Allain. “Once

we fine tune the Corporation’s infrastructure,

we will be better able to accommodate market

changes and ready for continued growth when

the economy turns around.” CB

www.nBliquor.Com

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la Prep142

Canada’s fResh faRe expeRienCe, eveRyday

fOOd & dRink CB

la Prep142

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144 FOOD & DRINK � La Prep


as we spend longer hours at work, and more time outside the house at play, the need for healthy, fresh and delicious meals on the go options rises; no longer are Canadians willing to sacrifice nutrition for convenience.


JOhn essaRis, pResidenT of La Prep restaurant

chain, has positioned his company perfectly to

respond to this growing customer trend. La Prep is

a Montreal-based premium quick food restaurant

chain that draws in the rushed lunch and business

crowds looking for freshly-prepared sandwiches,

salads, soups, baked good, breakfast foods, and

delectable coffees. With over 50 locations in ma-

jor urban centres across Canada (and an addition-

al location in Miami), La Prep is one of Canada’s

most exciting new quick service franchises.

Essaris’ vision was to create a company that

would help customer desire to live well and eat

well every day. At La Prep, the food is an experi-

ence, with the sights and smells of freshly made

meals entice the customer and create a welcoming

experience. “Ensuring you can eat well every day

is our contribution to your wellbeing,” says Essaris.

“Our commitment to preparing fresh fare

quality products daily from scratch in our kitch-

ens while maintaining our premium coffee stan-

dards makes us unique within our segment.”

New name to reflect menuIf the name La Prep isn’t entirely familiar, try

Café Supreme. Facing increasing obstacles in


trademarking, Essaris renamed the company to La

Prep to better articulate the basis of the restaurant,

which is freshly prepared foods. Like Café

Supreme, La Prep is pronounced easily in both

French and English and very easily remembered.

“With minimal awareness, when we first

introduced the Café Supreme brand in Western

Canada it became apparent that the market

didn’t relate to our standard product offerings

as the name was very generic in content with a

primary focus on coffee. Therefore the objective

was to improve our market positioning by clearly

identifying a brand that would provide us with a

stronger point of differentiation,” says Essaris.

“As our primary performance results to date

have been predominately related on providing

freshly prepared food products daily, the new La

Prep brand better represented what we stood for

throughout the Canadian market.”

La Prep has managed to grow into one of

the country’s fastest expanding franchises in an

economic environment that has not been kind to

the food industry, with global food prices rising,

causing companies to make difficult decisions.

“As with all food service chains, the recent

global food prices have had an impact on our costs,

PEUT Ê

TR

E C

OMPOSTÉ

100%


which we continue to monitor very closely through

supplier negotiations and competitive analysis,”

says La Prep Vice-President John Beauparlant.

“As a national chain, we remain dedicated to

ensuring that we offer the highest quality products

to our customers and will never sacrifice qual-

ity as this has been the primary backbone of our

overall success. As we prepare the majority of our

products from scratch in order to maintain our

commitment to the consumer of ‘Daily Fresh’, we

have been challenged by increased manufacturing

costs and have recently been forced to introduce

a minor price increase throughout the chain in an

effort to maintain our store margins. We trust that

the commodity pricing market will eventually settle

down over the next few months in order to mini-

mize any future impact on our industry.”

Bringing Canada to the worldWhile quickly becoming a Canadian lunch and

breakfast institution, La Prep is working with

its franchisee owners overseas to convert the

existing Café Supreme locations in Dubai, Abu

Dhabi, and Cairo. In countries with large ex-

pat populations, such as Dubai, where a high

percentage of the population are foreigners,

La Prep brings a unique Canadian experience.

Essaris is currently in discussion with potential

franchisee owners who also wish to continue La

Prep’s expansion in the Middle East countries.


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“We offer a business opportunity in countries that are looking for a unique north american concept that will achieve positive potential revenues,” says essaris.

“Being a small company means we have the

flexibility as owners to adapt to certain market

conditions in local countries, being menu offer-

ing, beverage offering and adjust the menu and

systems accordingly to kind of go-with-the-flow

of what the country is accustomed to,” he adds.

Delicious flat breads and wraps, and superior personalized service

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Proud to be associated with


“I think we bring a lot of that to the table in allow-

ing that flexibility. Not to say we don’t standardize

our system but we can also be flexible in certain

parts that allow us to grow that much quicker.”

Beauparlant and Essaris are confident in the

La Prep concept, and customers are responding

in droves. “In the initial stages of our develop-

ment, several consumers commented on our

ability to provide a consistent quality product with

a focus on offering a larger variety then most of

our competitors,” says Beauparlant.

“Our ability to evaluate consumer trends and

maintain product appeal through our upscale



store décor and image has since played an in-

tegral part of our success. The further develop-

ment of the brand through our dedicated, highly

skilled, professional team of franchisees has

continued to enhance our ability to grow the

concept throughout the Canadian market. The

wellbeing of any successful business is based on

the strength of its people and we are extremely

pleased to have had a dedicated group in our

home office and in the field that has maintained

our core values throughout the years.

“As a sophisticated consumer, I’ve always

had a significant interest in those food service

establishments that maintained a high degree

of standards in quality, service, and overall am-

biance. As our family got more involved in the

industry I began to acquire a stronger dedication

and drive to the overall development of the busi-

ness henceforth our future growth of La Prep,”

says Essaris. CB

www.Laprep.Com

IN PROUD PARTNERSHIP WITH

Tasty Selections is passionate about producing the

best muffin batters and cookie doughs under the

safest and quality assured guidelines, providing

world service and solutions to all of our customers.

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TOwn Of inuvik154

MuniCipal CB

TOwn Of inuvik a hotbed of oil and gas activity in the frozen north

156 MUNICIPAL � Town of Inuvik


“land of the midnight Sun and Gateway to the beaufort-Delta”, the northern town of Inuvik, n.W.T., is home to a growing and diverse population. located on the rim of the arctic Circle, Inuvik’s vast flat wooded plateau with northernmost reaches of the tree line at the east channel of the mackenzie river Delta, 100 kilometres south of the beaufort Sea, a hotbed of oil and gas activity lies beneath this frozen tundra.


in sepTeMBeR, a huge gathering of representa-

tives from the National Energy Board of Canada,

oil and gas companies and environmental de-

partments gathered in the town to debate and

discuss offshore oil drilling. The purpose of the

roundtable was to discuss government regula-

tions and industry best practises. As spills in

the Gulf of Mexico and New Zealand provided

dark illustrations of the devastation a spill could

entail, the community of Inuvik had been vigilant

on ensuring the optimum safety conditions for oil

exploration before it can begin.

“There is a lot to protect,” says Mayor Denny

Rodgers. “This is a town of 3,500 with ameni-

ties for a much larger community; a six-year-old

hospital, a new community college, hockey and

curling rinks, etc., not to mention the beauty of

the land and the ecosystem.”

The diversity of the community is also re-

markably diverse for its remoteness, with a thriv-

ing Muslim community, and First Nations and

Metis communities. “The amenities and amazing

people we have it make Inuvik, in my opinion, the

best kept tourism secret in Canada.”



Aurora Campus, Inuvik Western Arctic Research Centre, Inuvik

Thebacha Campus, Fort Smith Yellowknife/North Slave Campus, Yellowknife

The College of the Northwest Territories


Inuvik Petroleum ShowIn tourism, maybe, but anything but in the oil

and gas industry, which sends over 500 del-

egates every year to attend the Inuvik Petroleum

Show(IPO),held this year in June. It’s a major

event, with 100 trade show booths, developed

originally to promote the Mackenzie Valley Gas

Project, a proposed 1,196-kilometre natural gas

pipeline system along the Mackenzie Valley of

Canada’s Northwest Territories to connect north-

ern gas fields with North American markets.

The project has been in the blueprint stage

since the 1970s, and was looked at seriously until

an inquiry conducted by Justice Thomas Berger

declared that, due to inadequate consultation with

Aboriginal and conservation groups, the project

was premature. Effectively shelved since that

time, the project was revisited in 2004, and, major

improvements in corporate social responsibility

and Aboriginal land rights, this project is posi-

tioned to inject billions of dollars into the northern

economy at its proposed start up in 2014.

December deadline“The National Energy Board, for whom we all have

a tremendous amount of respect, took it upon it-

self to do a review [of offshore drilling and pipeline

projects],” says Rodgers. “We, meaning Canadians,

have some of the most stringent standards in the

world and are fortunate that we do.”


The review is slated to be completed in De-

cember, before which it will analyse input and

data from the industry and surrounding com-

munities including Aboriginal leaders, hunting

and trapping associations, who were invited to

weigh in on the negative and positive effects of

offshore drilling.

“The roundtable”, says Rodgers, “was great.

A lot of people have voiced their concerns, some

spoke passionately about the land, what it

means, what an oil spill of any magnitude would

do to the sea and communities on the coastline

that rely on the sea for their livelihood.”

At the same time, you can feel an optimism. We know the importance of hydrocarbon and oil and gas when 80 per cent of the energy we use comes from that source. I think the concern is people want a comfort level, and that comes in knowing there are proper blowout preventers, systems for proper stoppage and clean-up if something, God forbid, were to happen,” he says.

CIBC

ABM Available

134 Mackenzie RoadP.O. Box 1250Inuvik, NT X0E 0T0

Tel: 867-777-4539Fax: 867-777-3491

www.cibc.com


“As long as you have the best possible regulations

in place, then we are not opposed to drilling. We

look to Norway as an example of a well regulated

offshore oil industry that has not harmed other

industries. They have many rigs off the coast in

the North Sea and there is also a thriving fishing

industry up the coast. It can be done—but we must

ensure it is done appropriately.”

Economic engineThe economic benefits would be “significant”,

says Rodgers, despite Inuvik being an inland

community, and would also mark a new way of

partnering with major companies, who, in the

1970s did not regard corporate social responsi-

bility the way it is now.

“It’s an opportunity to build trust back,” says

Rodgers. “The way things were done 30 years ago

when an oil company came in to drill is different

now. Certainly I think it is safe to say decisions in

the past for the North have been controlled a little

by outside interests, is not the case now. Aborigi-

nal and local governments are front and centre on

what happens here on their land.” CB

www.inuvik.Ca

Cape BReTOn ReGiOnal MuniCipaliTy100 years of bringing business together

164

For over 100 year, the Sydney and area Chamber of Commerce’s vision of a strong and unified business community, prescient leadership and effective management has shaped the regional economy. Today, the Chamber continues to advocate on behalf of the business interests of the community, guiding the area through periods of resiliency and sustainability.

Cape BReTOn ReGiOnal MuniCipaliTy100 years of bringing business together

MuniCipal CB

For over 100 year, the Sydney and area Chamber of Commerce’s vision of a strong and unified business community, prescient leadership and effective management has shaped the regional economy. Today, the Chamber continues to advocate on behalf of the business interests of the community, guiding the area through periods of resiliency and sustainability.

166 MUNICIPAL � Cape Breton Regional Municipality

nO GReaTeR TesTaMenT to the work of the Cham-

ber is the region’s growing global reputation for

sustainability. Landmarks institutions of Sydney,

including the Canso Causeway, the Fortress of

Louisbourg, and the tourist association (now

known as Destination Cape Breton) would not ex-

ist were it not for the Sydney and Area Chamber

of Commerce. And certainly business has ben-

efitted from both small and large scale projects,

such as the elimination of long-distance tele-

phone calls between Cape Breton communities

and the development of the Sydney Harbour.

The Chamber’s effectiveness is thanks to de-

cades of citizen dedication whose passion and pride

of the area has turned into tangible progress. Never

was this more of a challenge than in the 1990s, and

in the period between when a dramatic shift in the

Cape Breton economy saw the closing of many of

the area’s fabled coal mines, and the emergence

of sunrise industries surrounding innovation, knowl-

edge, tourism and renewable forms of energy.

The Chamber works diligently to promote the

Nova Scotia Department of Energy’s vision to

capitulate Nova Scotia Power into a leader in the

renewable energy industry by 2013 and a nation-

al leader amongst the provinces.

Now 600-members strong, the Chamber con-

tinues to advocate for the region, participating with


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the local, provincial and federal governments to

further the interest of local business development.

Chamber membership has key value adds like

advertising, discounts, and a high profile within

the business community and business interest

groups. The Chamber acts as a high-profile advo-

cate to the wants and needs for a healthy sustain-

able business, while recognizing the problems and

difficulties businesses face day to day. “We kept

business interest in the forefront of public sector

organizations and city councils legislatures so they

get that representation in addition to the participa-

tion of getting involved with a number of key activi-

ties, social activities and self-promotional events,”

says Jim Paris, President of the Sydney and Area

Chamber of Commerce.

Speaking with Paris on the emerging diversity

of the region’s economy, he says “This is an in-

teresting community that has been through great

transition between steal plants and coal mines

which are pretty much closed, were replaced

slowly but surely by service and sunrise services.

Things have been growing here ever since.”

Ambitious Sydney Harbour projectHigh on the Chamber’s priority list is improving

trade through scheduled updates to air transit, rail

links and highway infrastructure, not to mention a

168 MUNICIPAL � Cape Breton Regional Municipality


mega project on the Sydney Harbour. Scheduled to

be complete in early 2012, the ambitious project

will see more than 4 million cubic metres of seabed

removed from the access channel to allow access

to some of the world’s largest vessels, further open-

ing trade opportunities for local business.

The $38 million price tag will be paid for by

the federal government ($19 million), with the

Nova Scotia government paying $15.2 and the

Cape Breton Regional Municipality committing

$2 million to deepen the harbour channel. Prime

Minister Stephen Harper estimated the addition-

al ship traffic will create thousands of short and

long-term jobs. “By dredging Sydney Harbour, we

can unlock Cape Breton’s true economic poten-

tial,” Harper said in a news release. “This will al-

low bigger ships into the harbour and create jobs

in Cape Breton for the long term.”

Premier Darrell Dexter agreed, saying the

project is an “opportunity to create real and posi-

tive change for the economy of Cape Breton.”

The Sydney Harbour project has buoyed spir-

its, says Paris, who is giving a virtual tour of Cape

Breton with his vivid descriptions of the harbour,

the shops and restaurants. Paris tells me he is

“from away”, having moved to Cape Breton from

North Carolina and hasn’t looked back.

That evening, Paris attended a function

hosted by the Cape Breton University’s Centre

for Sustainability in Energy and the Environment,

who is welcoming three Chinese government

officials who are interested in the clean energy

efforts of the centre.

“The university is slowly but surely becom-

ing a centre of sustainable energy in which de-

velopment and research is being done relative

to clean energy,” he says. “The centre will play

a large role in our future. You have to have an

integrated economic plan to truly develop an

area so it’s not one silver bullet, but a number

of key activities that will sustain the area over

time. Sustainable energy is clearly one of the

key things which the world is demanding, and we

have a world-class centre right here.”

Nova Scotia itself turns heavily toward clean

energy research and development. We have a

real opportunity here to become singularly expert

at this critical science from a global perspec-

tive—it truly in an investment in tomorrow. If Cape

Breton can lead the band with that then certainly

the world will come to our doorstep.” CB

www.CBRM.ns.Ca

CiTy Of MOnCTOnnew brunswick’s hub city170

CiTy Of MOnCTOnnew brunswick’s hub city

MuniCipal CB

172 MUNICIPAL � City of Moncton

GEORGE LEBLANC, MAYOR, CITY OF MONCTON


like any major city, the City of moncton’s local economy and future prosperity are closely tied.

but what’s different about moncton is its feel: the local townspeople are renowned for their friendly,

can-do attitude, noted by the city’s recognition as Canada’s most honest, most polite, and most

‘Canadian’ city.


MOnCTOn’s RepuTaTiOn is a community that gets

things done, successfully drawing the business

world to the area.

Industry diversificationWhile no one sector dominates the Moncton

landscape, its transportation industry has always

served as the backbone and remains an impor-

tant part of the economic community. Beginning

in the 1800s, ship building was the mainstay of

Moncton. The transportation sector of Moncton

has since evolved from ship building, to the rail

transport years, to the modern era of truck trans-

portation and air travel, and designation as the

transportation hub of the Maritimes.

Moncton is home to three well-known truck-

ing companies, a sign that its transportation sec-

tor is still strong. Meanwhile, the Greater Monc-

ton International Airport is thriving, and the rail

industry has begun to make a comeback. Accord-

ingly, a $100 million contract has been secured

with the federal government to refurbish VIA Rail

passenger cars.

The can-do, hardworking attitude is repre-

sentative of Moncton. Statistically, Moncton has

traditionally held a lower average unemployment

rate than Canada as a whole. That’s evident

today, as Moncton boasts a meager six per cent


176 MUNICIPAL � City of Moncton Moncton Industrial Development

jobless rate, which is lower than the Canadian

national average (about 7.3 per cent, according

to September 2011 figures).

The bilingual cityThe local bilingual population attracts big business

to Moncton. About 40 per cent of the community is

fluent in both English and French, a figure reached

by only three other Canadian cities (Ottawa and

Sudbury, Ont., as well as Montreal). In 2002,

Moncton officially became Canada’s first bilingual

city. Thirty-seven business call centres for organiza-

tions like Exxon Mobil, Royal Bank of Canada, and

the United Parcel Service call Moncton home as

these companies are able to utilize the local work-

force capable of communicating effectively in both

of Canada’s official languages.

“The hardworking bilingual workforce in

Moncton is a real asset that helps contribute

to Moncton’s success and brings new business

to Moncton as well,” beamed George LeBlanc,

Mayor of the City of Moncton.

Aside from the fluent bilingual workforce, the

diversified economy and quality of life of Monc-

ton is a draw to the city. LeBlanc added, “We

focus very much on quality of life issues and we

177NOVEMBER 2011 � The Canadian Business JournalMoncton Industrial Development

We dream of new businesses starting up, setting up and growing up. We also dream of locations for those businesses. Moncton’s industrial parks are strategically located for access to all parts of the city and for access to those major transportation arteries serving the Atlantic region.

With the new Moncton Industrial Park West and the ever growing Caledonia Industrial Estates, your dreams can become a reality with lots of room in both parks to grow.

Moncton Industrial Park West and Caledonia Industrial Estates, your dreams are our dreams.

MonCton IndustrIal dEvEloPMEnt 655 Main Street, Moncton NB E1C 1E8 506 857-0700 [email protected] www.moncton4 business dreams.ca

In Moncton, we dream big.


recognize that in today’s growing economy more

and more people are moving to an area where

the quality of life is great. We have a very vibrant

economy, arts, entertainment and recreational

facilities here, and the cost of living is low.”

The cost of housing is affordable in Moncton,

considered the lowest in Canada in terms of in-

come. Moncton has been recognized as the best

place in Canada to buy real estate and, when

putting all these elements together, it makes

Moncton a great place to live.

Recession reformThe job climate of Moncton is also very diverse,

with figures showing that no more than about 10

per cent of the work force is dedicated to any one

sector, meaning plenty of diversity and stability

when economic fears strike, as occurred to the

global economy beginning in late 2008.

“Here in Moncton, we were very fortunate

as our economy stayed strong during the reces-

sion,” stated LeBlanc. “In fact, one of the local

sayings was, ‘Let’s hope the recession is over

before it gets here.’”

The Greater Moncton Area represents the

sixth-fastest growing economy in all of Canada, and

the fastest growth east of Toronto. The area has

scathed the effects of the recession, as it did twice


GENIVAR prides itself on the fact that its Land Development Services are managed by people living in the communities that benefit from their work. The end users are always top of mind, be-cause they include our own families.

Our locally managed approach gives our clients peace of mind that they will be taken care of from project start to finish, while enjoying the conve-nience of access to additional expertise within the network of GENIVAR offices across Canada.

GENIVAR offers a full range of Land Development Services:

• Engineering • Surveying • Planning

NS Dartmouth NB Moncton | Saint John | Fredericton PE Summerside | Charlottetownwww.genivar.com

Shown here is Brandon MacDonald, one of our valued employees, with his sons Kieran and Isaac, enjoying a ride in Dieppe, NB. GENIVAR was a prime consultant on the development of this subdivision

• Environmental Services

• Project Management

ShApINGLIVES


previously in the last few decades. In the 1980s,

three major local employers left the Moncton area,

a significant blow to the local economy and work-

force. Moncton could have folded, but given the

perseverance of the community, that was not an

option. Where Moncton could have withered on the

vine, the exact opposite occurred.

“Having lost its biggest employers, the local

business community and local government de-

cided we were the only ones to help ourselves to

turn this around,” LeBlanc explained. “From that,

Moncton has become the economic powerhouse

of New Brunswick.”

According to LeBlanc, since the 1990s,

Moncton has created 40 per cent of new employ-

ment in New Brunswick. In righting its economic

stance and becoming a very prosperous communi-

ty, Moncton has reinvented itself, an achievement

that is best known as the ‘Moncton Miracle’.

Vibrant communityMoncton is a big draw and has a reputation for

“punching above its weight class”, marketing the

community as an entertainment and recreational

hub. Moncton is vibrant and often draws big

events for a community of its size. Musical hits like

U2, ACDC, and The Rolling Stones have recently

performed in Moncton.


Un re�et de nos forcesA re�ection of our strengths www.umoncton.ca

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Additionally, for the second year running,

Moncton will host a Canadian Football League

neutral-site game, between the Hamilton Tiger-

Cats and Calgary Stampeders. Last year’s match,

the Toronto Argonauts vs. the Edmonton Eski-

mos, was hosted at the Université de Moncton’s

Moncton Stadium, and was played before a

capacity crowd of 20,000-plus spectators.

LeBlanc attributes the successful turnout

of these events to Moncton’s ideal, centralized

location, with many travelling into Moncton from

surrounding areas. Moncton is an attractive draw

Healthy economic growth isn’t good luck. It’s good leadership.

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for both social and business needs. You can live,

work, and play in Moncton.

Focusing on a vision for its community, the city

aims for the best in prosperity and quality of life.

As such, Moncton builds on its strengths and at-

tempts to broaden its economy, a move that could

ultimately attract more citizens. The community has

cemented its reputation as a host of world class

events, sports and recreation, and arts and culture.

“The prosperity of the community, the qual-

ity of life, these are all things that attract people

and business.

“Moncton is a place where people want to be

and want to live. We are consistently recognized

by others as the place to be,” LeBlanc summa-

rized. “Those are just recognitions by organiza-

tions, but I like to think in terms of people. And

one of the things you will hear most often is that

the people here are friendly…people move here

and just love it here. Moncton is a great place to

be, come and visit, and then stay here.” CB

www.MOnCTOn.Ca

184 MUNICIPAL � Osoyoos Indian Band Development Corporation

OsOyOOsIndian band Development Corporation


OsOyOOsIndian band Development Corporation

MuniCipal CB

184


The osoyoos Indian band Development Corporation, based in osoyoos, b.C., is an organization that promotes economic

sustainability and self-sufficiency within its native area, covering more than a massive 32,000 acres

of british Columbia land.



wiTh sO MuCh area available, the Osoyoos Indian

Band Development Corporation also offers vast

developments in a variety of sectors, including

residential ,commercial, industrial, agricultural,

as well as tourism destination developments,

“and some of the most desirable urban industrial

commercial land in the South Okanagan.”

The Osoyoos Indian Band Development

Corporation works progressively with business to

“preserve its past by strengthening its future”,

and works to achieve its goal of increasing local

educational levels academically, athletically, vo-

cationally, and culturally, a responsibility it feels

is shared by the corporation as well as the locals.

The Osoyoos Indian Band Development Corpora-

tion encourages and promotes lifelong learning

and development strategies, as well as the over-

all increase of local opportunities and the stan-

dard of living.

Self-sustainable economic landscapeThe Osoyoos Indian Band Development Corpora-

tion strives to reduce the area’s reliance on gov-

ernment funding, doing this through job creation,

self-generated income, joint ventures, leasing,

as well as land and resource development to

encourage sector and industry growth. The over-

riding goal of the Osoyoos Indian Band Develop-

ment Corporation is to achieve the area’s highest

level of economic self-sufficiency.

Nearby to the Osoyoos Indian Band Develop-

ment Corporation is the NK’MIP Resort, home to

more than 200 acres of destination resort lands

within the rich Okanagan Valley. The resort

includes the shores of the Osoyoos Lake, as

well as a 325-site motor park, a 4-star hotel, an

award-winning winery, a golf course, as well as a

desert culture centre. These various attractions

play a role in the economic development and

prosperity of the local area. Two hours south of

another major city, Kelowna, B.C., and within

driving distance of the border to Washington

State, Osoyoos is a popular summer and vaca-

tion destination for all ages.

Developments have seen the popularity

of wine vineyards spread across the Osoyoos

lands, as well as the development of estab-

lished leases, such as the Sonora Dunes Golf

Course, the Spirit Ridge Vineyard Resort & Spa,

the Tuc-El-Nuit Estates townhouse develop-

ment, the Cherry Grove Modular Home Park, as

well as more than 1,000 acres in agricultural

leases, representing more than 20 per cent of

grape production in British Columbia. The area

is home to several wineries, including Vincor

International, Mission Hill, and Burrowing Owl

Vineyards. The NK’MIP resort is in the heart of

Okanagan wine county.


Scenic tourist destination“Osoyoos is ‘growing up’ as a tourism destina-

tion, thanks to wine tourism, a variety of golf

courses, great hiking, family-friendly ski hills,

and now, NK’MIP Resort,” reads the Indian Band

Development Corporation website.

The Osoyoos Indian Band Development Cor-

poration works to create and develop products to

reduce dependency and encourage community

involvement within the Okanagan First Nation

traditional values of honour, caring, sharing, and

respect. This group promotes a lifestyle of hard

work and self-support, as did its previous genera-

tions, in developing the local economy through its

own business initiatives.

As one of Canada’s leading aboriginal, agri-

cultural, and tourism regions, the Osoyoos Indian

Band began in 1877. The development corpora-

tion manages its business interests. Local lease

and joint ventures have created various busi-

ness relationships that have ultimately created a

variety of social and employment opportunities

for the region. The Osoyoos Indian Band Devel-

opment Corporation strives to strengthen South

Okanagan’s economy and lifestyle.

Reads the Osoyoos Indian Band Develop-

ment Corporation website, “We invite any busi-

ness with a well thought out business plan to

come and explore the opportunities we offer.”

Chief Clarence Louie states on the Osoyoos

Indian Band Development Corporation website,

“We are very focused on the future and we real-

ize that we create this future by our actions. The

single most important key to First Nation self-

reliance is economic development.” CB

www.OiB.Ca

Boughton Law CorporationBoughton is proud to be the exclusive legal advisor to the Osoyoos Indian Band Development Corporation. We wish them continued success and look forward to continuing our long established relationship.

Boughton has an extensive aboriginal law practice. Our firm of over 50 lawyers has the depth and experience to provide advice to First Nations and related organizations on a wide range of issues. We stay closely connected with our First Nation clients and this connection, coupled with our experience and depth, enables us to deliver superior legal services.

For more information about the services we offer, please contact Jean Yuen (e: [email protected], t: 604.647.4119) or visit us at www.boughton.ca.

190 RESOURCES � MiHR

190

PHOTO BY JASON DUGGAN / SHUTTERSTOCk.COM

191NOVEMBER 2011 � The International Resource Journal

MihR innOvaTe: a CaTalysT fOR shaRinG MininG hR pRaCTiCes and knOwledGeBy Lindsay Forcellini, Mining Industry Human Resources Council

In April, the CBJ featured the first in a three-part article series which in-

troduced readers to the Mining Industry Human Resources Council (MiHR),

the council for the Canadian minerals and metals industry, and MiHR Inno-

vate, a collaborative platform developed by the Council to share knowledge

and effective mining HR practices and initiatives. Following this article,

July’s issue featured an in-depth look at the practice submitted by Teck Re-

sources Ltd., one of several participating companies, and this month MiHR

has connected with Cameco Corporation, Baja Mining Corp. and Vale, a trio

of forward-thinking mining companies that have opened up their HR depart-

ments, eager to share their take on HR innovation.

ResOuRCes CB


Why innovate? The pending retirement of the baby boom genera-

tion, difficulties in attracting and engaging youth

and an under-representation of diverse groups

paints a challenging ten-year talent forecast for

Canada’s mining industry. While the industry has

made tremendous strides in addressing these

issues, finding experienced and skilled workers is

becoming more difficult and competition across

sectors of the economy is increasing, according

to the Council’s latest report, Canadian Mining

Industry Employment and Hiring Forecasts 2011.

Half of the mining workforce will be eligible to

retire by 2021, creating a deficit of 75,000 re-

placement workers in the most pessimistic fore-

cast. A period of relative stability in the sector will

see that number balloon to 112,000 as demand

for natural resources increases. By taking a proac-

tive and innovative approach to address the HR

challenge, companies like Cameco, Baja and Vale

are sharing their innovative HR practices with all

mining employers and adopting new strategies,


initiatives and tailored HR solutions to meet the

needs of their own talent and hiring requirements.

Cameco CorporationDeveloping relationships with academia

Cameco is one of the world’s largest uranium

producers, focusing on clean electricity, and a

leading provider of the processing services re-

quired to produce fuel for nuclear power plants.

With operations in Saskatchewan and Ontario,

the US and Kazakhstan and development projects

in Australia, Cameco is recognized as one of the

top employers in Canada with over 3,300 global

employees and is the largest industrial employer

of Aboriginal Canadians.

The growing demand for clean energy poses

scientific challenges for Cameco and the nuclear

industry. Strengthening ties between academia

and industry has the potential to address some

of these challenges. In support of this objective,

Cameco’s Innovation & Technology Development

(I&TD) department has established the Sabbatical

Program for Academics, which gives researchers

and scientists from universities the opportunity

to conduct research at Cameco operations each

year. The arrangement allows professionals and

academics from post-secondary education institu-

tions a chance to work and collaborate with tech-

nical personnel at Cameco’s facilities.

Sean Junor, Manager, Workforce Planning and

Talent Acquisition at Cameco, says the program is

directly linked to the company’s long-term strategy

to significantly increase production by 2018.

“It allows us exposure and access to a dif-

ferent segment of workers and invites us into a

different conversation. We learn more about what

is going on in the world of academia and research-

ers have the opportunity to apply their work in

an industry setting. The benefits are twofold; the

program broadens our attraction and potential

recruitment net and strengthens and/or develops

the relationships we have with academic institu-

tions,” Junor explains.

Researchers spend up to one year in the

program working on a problem of interest to both

Cameco and the researcher, with an end goal of a

portfolio of potential projects that the researcher

will take back to university.

Michael Murchie, Director, Research Centre at

Cameco Technology and Innovation, says the key

to the program’s success is the dedicated time it

allows a researcher to spend with Cameco.


“We are always meeting with researchers from different universities, but in a short time span, it’s hard to connect; you need time to establish a relationship. It’s about researchers getting to know our challenges and Cameco getting to know their capabilities,” he explains.

This portfolio of focused project ideas creates

a link for continued collaboration, the develop-

ment of highly qualified personnel (HQP), the

promotion of science and engineering and the

promotion of the mining industry.

Cameco has had four sabbatical researchers to

date, from a wide range of backgrounds:

university of saskatchewan – materials science

research in zirconium alloys

Trent university – environmental science

investigation in water and effluent treatment

university of Ontario institute of Technology– robotics

and mechatronics

university of Toronto – human factors engineering

(human-automation interface)

Following the program, two researchers are con-

tinuing to work with Cameco.

Since the program is in its early stages, Ju-

nor explains the main focus now is collaborat-

ing from an HR perspective to grow in uptake,

as the program can accommodate up to 12

researchers at one time.

“The ability to measure the program’s out-

come will come later on, when we have a cohort

in and have some time to reflect on how it is

assisting our month-to-month or week-to week-

activities. Are the researchers doing things our

employees couldn’t do? Do we have access to a

unique, diversified set of skills we didn’t have ac-

cess to before? These are the types of questions

we’ll be asking,” says Junor.

Baja Mining Corp.Adapting to a multi-cultural environment

Baja Mining Corp. (Baja) is a Vancouver based min-

ing company that is currently transforming itself

into a producer. Baja and a consortium of Korean

companies own the Boleo Project, a large polyme-

tallic property, with near-term production and a long

mine life, located in Baja California Sur, Mexico.

In 2010, when Baja started recruitment


activities to focus on attracting talent for its

operations, talent requirements were identified

and profiles emphasizing technical and soft skills

were created. Due to the international location

of the project, profiles included candidates with

previous international experience, exposure to

Latin-American cultures and fluency in Spanish.

When recruiting for these positions, Maria-

Luisa Sinclair, Baja’s Director of Human Re-

sources, explains HR faced the predicament

of either recruiting for technical or soft skills;

due to the importance of attracting seasoned

experts in each area, technical skills prevailed.

To fill in the soft skills gap, Baja’s HR team

designed and implemented an Intercultural

Sensitivity Program to assist in providing em-

ployees with the tools they need to effectively

adapt to the new cultures they would be ex-

posed to.

“A lack of cultural awareness can lead to

costly delays, misunderstandings and, often,

personal frustration on the part of the commu-

nicators,” Sinclair explains.

Training in intercultural communication as-

sists businesses and individuals in achieving

their goals in negotiation, decision-making, stra-

tegic planning and collaboration as successful

teams. It addresses perceptions, cultural pro-

files, contrasts and differences and how these

can be better managed to ensure successful

outcomes.

Baja’s intercultural training is facilitated in

sessions of two days. The first day introduces

participants to cross-cultural research and

theory and the next day, participants receive a

personalized report and are guided through its

contents to learn how they interact with individ-

uals from different cultures and how to modify

such interactions in order to become more suc-

cessful in the workplace.

Baja has delivered two workshops so far,

one at its site in Santa Rosalia, Baja California

Sur, Mexico, and one at the Vancouver office.

Sinclair says the response from employees has

been positive.

“The program was well received. It generat-

ed quite a bit of exchange among participants,

as well as a willingness to learn more about

how each person is perceived by others from

different cultural settings. The majority of par-

ticipants agreed that the session was of interest

and relevant to their work.”


Sinclair says Baja is confident that this

initiative will provide attendants with a better

understanding of their own behaviours within

different cultural settings and how such behav-

iours can be adapted to become better com-

municators and more efficient in their roles in

foreign locations.

ValeA global approach to charting employee career

paths

Vale is the second largest mining company in

the world, one of the 30 largest publicly traded

companies in the world and the largest private

sector company in Latin America. Vale has a

market capitalization of around US$ 170 bil-

lion, with approximately 500,000 shareholders

from all continents and is the world’s largest

producer of iron ore and iron ore pellets, key

raw materials for steelmaking, and the world’s

second largest producer of nickel.

As an international company with a global

workforce, Vale has recognized the importance

of effective human resources strategies linked

to the company’s corporate goals with the

tools and processes in place to retain talented

people, mitigate the risk of knowledge loss and

fully leverage the collective skill set.

In 2008, in support of these objectives, Vale

launched an innovative program for carry-on

succession. The Career and Succession Planning

(CSP) process is a global technology-driven system

that enables collaboration and identification

of potential candidates for succession at most

levels of management. This initiative is helping

Vale address the skills shortage by focusing on

professional development to retain its employees.

“We recognize that many areas of our busi-

ness are booming. The traditional methods to

attract employees are no longer sufficient,”

explains Tito Martins, CEO of Vale in Canada and

Executive Director of Vale’s Base Metals busi-

ness. “Vale’s main talent management focus is

to retain and develop our own employees. The

CSP process enables us to ‘grow our own,’ sourc-

ing talent from within the organization.”

Through the CSP process, the company is

able to gain a holistic, global view of its workforce

and identify successors for individuals in many

management levels by searching for strong

contenders among potential internal candidates.

This is achieved through an annual in-depth


performance-evaluation process consisting

of a team, manager, clients and peers review

whereby a 360-degree assessment of an

individual’s performance is conducted against

core competencies.

“The Career and Succession system has sig-

nificantly enhanced our ability to fill roles globally

and to provide our employees and managers with

a system that supports discussions about devel-

opment opportunities, competencies and talent

needs,” Martins affirms.

The results of these assessments are ana-

lyzed and fed into a globally accessible software

database (CSP) that enables Vale to effectively

identify potential successors. These are people

who might be peers at the same level, or subordi-

nates at lower levels. They might be immediately

promotable, or identified as potentially suitable

for a more senior position within the next two to

five years.

“We can envision the CSP system encom-

passing our full workforce in a few years. Ironing

out the kinks at each phase (before rushing into

full expansion) is the key to a successful imple-

mentation. We always look at the business needs

as the main driver for any HR program,” he adds.

The CSP process has been successful at

Vale and positively received.

“Developing our people to ensure they

are successful in their roles is critical to our

organizational success,” Martins explains.

From work environment and culture, to learn-

ing and professional development, by collabo-

rating with MiHR, these companies are industry

leaders that are helping to support Canada’s

mining industry through the sharing of knowl-

edge, experience and ideas. If you are interested

in joining the discussion, please join the Canadi-

an Mining HR Innovators and Professionals group

on LinkedIn. CB

For more information on the MiHR Council, visit

www.mihr.ca. For details on MiHR Innovate, or to

view the complete collection of practices, visit

www.mihrinnovate.ca

198nORThquesT lTd.exploration company positioned for golden future

198

ResOuRCes CB

nORThquesT lTd.exploration company positioned for golden future

200 RESOURCES � Northquest Ltd.

When geologist Jon north made his second, then third visit to an area just 60 kilometres from rankin Inlet, nunavut, and, significantly, 80 kilometres from the renowned gold producing site at meliadine Project (5 million ounces at a grade of 7.4 gold per tonne), optimism for the Pistol bay Gold Project really picked up.

nORTh is The President of exploration company

Northquest Ltd., which explores for gold and

other metals in Canada, Mali, and other jurisdic-

tions. North has built a reputation for using his

extensive background in geological surveillance

to decrease as much geological risk as much as

possible, using a strategy exploration in per-

missive rocks and in jurisdictions and geologic

terranes which have not achieved exploration

maturity.

With 25 years’ experience, North is a profes-

sional exploration geologist whose primary field of

expertise is in area selection and the application

of the most appropriate methods of exploration in

the early stages of project evaluation. In addition

to his position as Director and CEO of Northquest

Ltd., North is a Director of the Board of New Dawn


Mining Corp. (ND - TSX) and a Director of the

Board of Bridgeport Ventures Inc. (BPV – TSXV).

“Jon has been a geologist his entire profes-

sional life and his passion for it is evident,” says

Investor Relations Manager Tanya Mahadeo.

“He is also very good at what he does; he has

been successful because he puts all the re-

search in. He does nothing blindly.”

The Pistol Bay Project consists of 1,100

square kilometres of mineral rights. The property

is located approximately 60 kilometres south of

Rankin Inlet and 80 kilometres south of the Me-

liadine Project of Agnico Eagle Mines (5 million

ounces at a grade of 7.4 grams gold per tonne).

The Meliadine Project of Agnico Eagle Mines con-

sists of several gold deposits within a segment of

banded iron formation which has gold occurrenc-

es, prospects, and deposits over a strike length

of at least seven kilometres.

“In 2010, the Company completed due

diligence sampling leading to the acquisition of

the Pistol Bay project in Nunavut, Canada,” says

Jon North in a statement. “The Pistol Bay proj-

ect is an exact fit for the Company’s exploration

strategy in that the geology is extremely permis-

sive for gold deposits, there are numerous gold

M&TENTERPRISES

M&TENTERPRISES P.O. Box 156, Rankin Inlet X0C 0G0

Ph: 867-645-2778 | Fax: 867-645-2590Email: [email protected]

M & T Enterprises Ltd. is a 100% Inuit-owned Rankin Inlet-based company that offers various services such as, freight and delivery, fuel delivery, household moving, construction, expediting and ground transportation. Our target markets are the mine development and mineral exploration companies, airlines, government and local residents.

Our business is now focused on freight forwarding, warehouse and secure storage, fuel delivery, expediting, overland hauling, heavy equipment and office rental.

202 RESOURCES � Northquest Ltd.

occurrences in the area, Nunavut is a jurisdic-

tion that has not achieved exploration matu-

rity, and a large land package could be readily

acquired. Since December 2010, the company

has completed three claim staking campaigns

and completed the first airborne geophysical

survey ever flown in the area.”

The Pistol Bay Gold Project is on property in

Nunavut and it is a greenstone belt which has

produced 350,000 ounces of gold since 2010,

which is about the same size as Abitibi gold belt

in Ontario and Quebec which has produced 150

million ounces since 1909.

We Help Protect the Environment

• SERVING THE MINING INDUSTRY• CHARTER HELICOPTER SERVICE• CONTRACT SERVICE• AIR TAXI SERVICE• SERVING THE MOTION PICTURE INDUSTRY

1-800-782-0780401 Helicopter Dr., ST. Andrews Airport, St. Andrews, MB R1A 3P7

Winnipeg (204) 338-7953 Rankin Inlet (867) 645-3885 Thompson (204) 677-3720

Gillam (204) 652-2212 Garden Hill (204) 456-2655 The Pas (204) 623-4595

1-800-782-0780401 Helicopter Dr., ST. Andrews Airport, St. Andrews, MB R1A 3P7

• SERVING THE MINING INDUSTRY• CHARTER HELICOPTER SERVICE• CONTRACT SERVICE

• AIR TAXI SERVICE• SERVING THE MOTION PICTURE INDUSTRY• HELICOPTER FLIGHT TRAINING

Winnipeg (204) 338-7953 Rankin Inlet (867) 645-3885 Thompson (204) 677-3720Gillam (204) 652-2212 Garden Hill (204) 456-2655 The Pas (204) 623-4595

We Help Protect the Environment

• Management has global knowledge

and experience in mineral exploration

• Management has been exploring for

gold for more than 25 years

• Management employs a strategy

of careful research, area selection,

project acquisition, and exploration

towards its goal of discovering

valuable mineral resources

expeRienCe and COMpeTiTive advanTaGes


We are your Northern General Store

Our Services include: • Freight forwarding and Expediting• Mechanical services• Gravel hauling• Heavy equipment rentals and truck rentals• Project Support: labour, equipment & supplies• Fuel Distribution: Bulk and drummed fuel Accommodations - Katimavik Suites Hotel

Eskimo Point Lumber Supply and Airport Services Ltd. has been northern owned and operated since 1978 serving the Kivalliq Region, Nunavut.

Phone: 867-857-2752 Office: Fax: 867-857-2807 Email: [email protected]

“The area is very undermined, which is a good thing,” says Mahadeo.

The day we spoke with Mahadeo, the Pistol

Bay camp was being closed until next summer,

after a very successful exploration period and the

completion of the first phase of drilling. The assays

are currently in the laboratory for analysis. CB

www.northquest.Biz

Northquest Ltd. was incorporated March

18, 2008 under the laws of the Province

of Ontario. The Company has one

wholly–owned subsidiary, Northquest

SARL, incorporated May 26, 2008, under

the laws of the Republic of Mali. The

Company is authorized to issue an

unlimited number of common shares. The

Company has 25,780,823 shares issued

(38,710,034 on a fully diluted basis). The

shares of the Company are listed on the

TSX Venture Exchange under the symbol

“NQ”.

historY

fundy TidalCurrent thinking

204

eneRGy CB

206 ENERGY � Fundy Tidal

FTI PRESIDENT DANA MORIN


When the government of nova Scotia set new regulations under its electricity act for almost 20 per cent of the province’s electricity to be generated from renewable energy by 2013, in an effort to reduce dependence on coal, Fundy Tidal was drawn in.



fundy Tidal inC. (FTI) was established in 2006,

a year before the government’s avowal, and

is committed to capitalizing on the renewable

energy opportunities at its doorstep. FTI, a

community-based independent power producer,

uses the world famous tidal currents of the

Grand and Petit Passages of the Bay of Fundy,

N.S. to generate clean electricity. Based in

Westport, N.S., many of FTI’s board of directors

and shareholders were involved in founding the

Scotian WindFields network of N.S. Community

Economic Development Investment Funds and

operating companies.

National treasureThe Bay of Fundy is one of the greatest natural

wonders in the world, with enormous tides that

carry 100 billion tonnes of water during each

tide cycle. To put this into perspective, that is

more than the flow of all the world’s freshwater

rivers combined, and generates forces equal

to 800 locomotives or 25 million horses. The

energy potential in the Bay is enormous, and,

today, largely untapped.

According to data released by the Nova

Scotia government, “When fully developed, new

in-stream tidal technology has the potential


to generate 300 megawatts of green, emis-

sion free energy from only two locations in the

Bay of Fundy—enough energy to power close to

100,000 homes.”

“Indeed, the Electric Power Research Insti-

tute has verified that the Bay of Fundy has the

strongest tides in North America, and the Bay of

Fundy is perhaps the most potent site for tidal

power generation in North America,” says , who

works closely with the provincial government and

stakeholders to develop sites in the Bay of Fundy.

FTI and the Province of Nova Scotia are in the

final stages of establishing the first small-scale tid-

al Community Feed-In Tariff (COMFIT) for projects

majority owned by eligible community proponents.

With energy giants such as Nova Scotia Power Inc.

and OpenHydro and Alstom working in the Minas

Passage, FTI has its sights set on Grand and Petit

Passages and the Digby Gut, “We are focused on

smaller projects connected to distribution systems

in a different area of province, the entrance to the

Bay of Fundy,” says Morin.

“Recent studies conducted in partnership

with Acadia and Dalhousie Universities indicate

the site has an excellent tidal energy resource

and other highly favourable characteristics. The

province, through the OEER, has just commis-

sioned the South-West Nova Tidal Resource

Assessment which will further quantify this

resource and potential sites for development

over the long-term. The project will be built in

phases based on environmental sustainability

and available capacity on the local distribution

system. With support from the community, the

project will expand to supply predictable elec-

tricity to Brier and Long Islands and mainland

distribution systems.”

Currently, FTI has submitted applications for

five locations totalling three megawatts of power;

three in the Digby County areas where three

of the main tidal passages are located (Grand

Passage, Petit Passage, and the Digby Gut), the

remainder on Cape Breton Island on the other

end of the province.


“There is a distinction between larger utility-

scale projects and smaller distributed genera-

tion projects, but both are viable and worthwhile

endeavours. In the grand scope of things, three

megawatts of tidal power is not a giant thing,

but at a community level, this is certainly a huge

project, with great social economic benefits to

the community. The government’s defines small-

scale tidal as the use of tidal generators less

than 500 kilowatts in size that are connected

to the distribution system, i.e., the community

level,” says Morin, “and that suits our portfolio.”

“We have a vision for the province to reduce the use of coal with biomass, solar, wind, and tidal energy. What we do have is the largest tidal resource in the world that has the potential to supply the majority of this power.”

Morin is working to see improvement in the

province’s small scale distribution system by

increasing its capacity and greater connectivity

for distribution, not built to gather and distrib-

ute energy. The total power that is requested is

100 megawatts under all of these feed-in tariffs

from communities, “less than five per cent of our

power usage in the province, so it is, again, a sig-

nificant contribution, but not at the scale hoped

for in the larger Bay of Fundy area with excess of

hundreds of megawatts of power there.”

With a term goal to produce about 20 mega-

watts of tidal power over the next five to 10 years

and a company vision to “proactively create oppor-

tunities in the emerging marine energy sector with

a focus on locally-owned and operated ventures

to ensure economic development opportunities,

wherever possible, benefit local communities and

businesses,” FTI is a Canadian energy producer

that is putting tidal power on the grid. CB

www.fundyTidal.COM

a sTep ClOseR TO a Canadian susTainaBle eneRGy sTRaTeGy?

By The Honourable Perrin Beatty, President and Chief Executive Officer, The Canadian Chamber of Commerce

a sTep ClOseR TO a Canadian susTainaBle eneRGy sTRaTeGy?

By The Honourable Perrin Beatty, President and Chief Executive Officer, The Canadian Chamber of Commerce

eneRGy CB

214 ENERGY � A step closer to a Canadian Sustainable Energy Strategy?

energy security is directly linked to economic competitiveness and job growth.

The eneRGy seCTOR is a cornerstone of our pros-

perity. It plays a critical role for Canada in serving

the energy needs of all Canadians and in gener-

ating major income. There is virtually no country

in the world that does not look at our energy

inheritance with envy.

In 2009, the Canadian Chamber of Commerce

released a report, Powering Up Canadian Prosper-

ity, that called for all levels of government to come

together with stakeholders, including the busi-

ness community, to develop a Canadian Sustain-

able Energy Strategy-a strategy that would ensure

that Canada would continue to have a strong and

vibrant energy industry that would help grow our

economy and meet our future energy needs. We

are still waiting, but see signs of progress! More

recently, a number of business and poltical lead-

ers have become more vocal about the need for an

overall energy strategy. What we have in mind is not

simply a federal government policy to be imposed

on the regions, but a truly national strategy in which

all regions are full partners. Nor must its purpose

be to simply transfer the resource wealth from one

region to another, but to respect our constitution

and to recognize that rising prosperity in one region

will also lead to opportunities in the rest.

Energy ministers from across the country

are meeting in Kananaskis starting this week-

end to discuss the development of a Canadian


Energy Strategy. Leading up to that meeting,

we at the Chamber have continued to send our

message to governments on the business com-

munity’s position on what must be included in

any strategy at the national level. It is vital that

they understand how fundamental energy is to

the competitiveness of every Canadian business

and to the success of our entire economy.

But beyond the strategy, the question we

have to ask ourselves is: does the federal gov-

ernment have a role to play in promoting and as-

sisting the energy sector? And also, how can the

Canadian Chamber of Commerce best continue

to play a role in all of this?

With the stability of new majority government

in Ottawa, Prime Minister Harper and his team

have the opportunity and the responsibility to de-

liver on their commitment to Canadians to create

jobs and foster prosperity. Energy is an essential

part of the formula.

The Canadian Chamber will continue to

stress to the government how important this is-

sue is to business. We have been encouraging

all businesses to look at their own energy needs

and ask themselves how they can contribute to

the strategy, including by working together on

innovations that benefit both Canada’s energy

producers and its users.

Canada’s energy future is in our hands and

the time for action is now. CB

216 ENERGY � Aboriginal Pipeline Group


aBORiGinal pipeline GROup

aBORiGinal RepResenTaTiOn ResTaRTs lOnG awaiTed pipeline

216

eneRGy CB


Stalled for decades by aboriginal opposition and economic uncertainty, the mackenzie Pipeline Project has finally been approved by the national energy board (neb), and represents the time for prosperity and industry for northern Canada, and our national energy portfolio.



When the 1,200-kilometre pipeline system,

designated to link Mackenzie Valley’s northern

natural gas fields to North American markets was

first proposed in 1970s, Judge Thomas Berger put

a halt to it. Berger, who has built a legacy for ad-

vocating rights for Aboriginal groups and people,

recommended “on environmental grounds, no

pipeline be built and no energy corridor be estab-

lished” until native land claims are settled.

What was meant to be a 10-year postpone-

ment turned into a much longer hiatus. Momen-

tum for the project reignited in 2000 and, after

years of regulatory review, was given the go-ahead

by the NEB in March.

Fred Carmichael is Chairman of the Aboriginal

Pipeline Group (APG), which works on behalf of

the Aboriginal groups along the Mackenzie Valley

corridor. He remembers when the pipeline was

originally stalled. “There was a lot of mixed feel-

ing on it at the time,” says Carmichael. “Some

people, especially in business community, includ-

ing myself who was in the airline business, were

disappointed, but I think all of us will say now in

hindsight it was the right thing to do.”

Carmichael contends that Aboriginal groups

were neither ready nor prepared for the pipeline

back then, and a lot of the work probably would

have gone to southern companies rather than

the northern businesses because of that. “Judge

Berger said the Aboriginal people need to get the

land claims settled before this huge development

goes forward, and there is no truer statement, be-

cause we are in a much better negotiating position

now than we were back then,” says Carmichael.

“Our land claims allowed us to become partners in

this project.”

These land claims, along with an articulated

vision for involvement in major development

projects, modern business ethics, and advances

in environmental science has culminated in the

NEB approving the project and the 264 environ-

mental, financial and cultural conditions at-

tached to the Certificate.

“The six-year regulatory process is now



behind us. This decision is a huge step

forward, both for the project, for our Northern

stakeholders and for Canada as a nation,” says

Carmichael.

According to APG, “After completing one of the

most extensive regulatory proceedings in Canadi-

an history, the NEB decision confirms the need for

the project and the broad environmental and so-

cioeconomic benefits the pipeline will bring to our

nation. The APG…negotiated by Aboriginal people

for Aboriginal people now has the right to secure

a one-third ownership interest in the Mackenzie

Valley Pipeline. We remain committed to our man-

date—to maximize the long-term financial return to

the Aboriginal Groups of the N.W.T. through owner-

ship in the pipeline. The people of the north are

behind this project and APG will continue working

toward the day when Mackenzie gas flows south,

and economic benefits flow north.

“And these benefits are significant,” said Car-

michael. “For the Mackenzie Valley and Beaufort

Delta regions, this project is the only realistic way

to create an economic future and an independent

and self-sufficient future for northern people.”

Carmichael says the agreement has the full

support of the Inuvialuit, the Gwich’in and the

Sahtu, who collectively form the APG, and whose

land the pipeline goes through. “We’ve had such

support because people now are full partners


in the project and our mandate is clear and very

simple; that we ensure our Aboriginal people ob-

tain a sustainable, long-term revenue stream from

our ownership interest in this pipeline.”

Carmichael said negotiations with the produc-

ers, a consortium made up Imperial Oil, Exxon

Mobil, Conoco Phillips, Royal Dutch Shell, was

“tough”, but respectful. “This is a business deal

and we are talking to very experienced business

people who have a good track record but I would

say that they have been very good and very fair.

It’s business and we have to be on our toes and

make sure we get what we want—we didn’t get

this deal by them saying “here you go”. Overall,

I would say that once they realized that we are

in this for the long-term, and in order for them to

build a pipeline across our land, they need us.

“The consortium knows they are not going

to be building anything across our land, for that

large a project, without involvement of Aborigi-

nal people.”

Among the conditions of the agreement is

employment security for Aboriginal communities,

with $1 billion of work in the corridor guaranteed

for Aboriginal businesses, as well as associated

training programs.

Carmichael sees this as an opportunity for

northern communities to regain some indepen-

dence from government after the decline in the

hunting and trapping industries necessitated

government assistance. “The only way to get out

from under [government dependence] is to build

an economic base. The APG shows all Aboriginal

people across the country the benefits in becoming

partners with non-Aboriginal businesses in large

projects such as the Mackenzie Valley Pipeline. This

is a step toward our own self-sufficiency, regaining

our pride, and building our own industry, and that is

the only way to create a better society.”CB

www.MvapG.COM

nORTheRn pROMises

By John M. Medeiros, Research Director, CBJ

There is something about the air in the Western arctic; rarefied, atavistic - as if breathing it for any length of time unburdens one of self importance and distils in you a visceral, elemental sense of the place. The smell; raw, pure and like nowhere else I’ve been. like the stark beauty of the land itself, rubbed raw of the human condition, the scent of the place is forever trapped in the meniscus of my memory.

siMilaRly, The peOple that call this place home have

left an indelible mark on my psyche too.

The Mackenzie Delta Region of NWT, part of Cana-

da’s largest river system and second largest arctic delta

in the world, is a vast and primal labyrinth of channels,

nORTheRn pROMises

226 ENERGY � Northern Promises

lakes, and low lying alluvial islands, covered by

stunted black spruce, becoming sparse and thin-

ning as the river mingles with the Arctic Ocean

near Tuktoyaktuk. It holds an enormous energy

reserve—a resource estimated at more 15.4 Tcf

(trillion cubic feet) of natural gas in the onshore

and shallow water areas of the Delta—a tract of

2.2 million hectares (5.5 million acres) about the

size of the state of New Hampshire. The already

developed and proven finds include more than

250 million barrels of oil and 11 trillion Tcf of natu-

ral gas and condensate. To give these numbers

some perspective, the average Canadian home

consumes less than 100,000 cubic feet of natural

gas annually. It’s a staggering number. And an

equally incredible number is the expected infra-

structure costs to fully capitalize and bring to mar-

ket one of the largest and undeveloped resources

of its kind on the planet - $16.2 billion CAN.

When Justice Thomas Berger first tabled his

infamous report back on June 9th 1977 examin-

ing the impact of the proposed Mackenzie Valley

Pipeline Project (MVPP), it was billed then as “the

biggest project in the history of free enterprise.”1

During the 30 plus years of negotiations, Canada

has made historic strides forward in the settle-

ment of native land claims; first with the Inuvialuit

Land Settlement Act of (ILS) 1984, followed by the

Gwich’in Comprehensive Land Claim Agreement

(GCLCA) in 1992. And again in 1994 with the

Sahtu Dene and Metis Comprehensive Land

Claim Agreement. To date, only the Dehcho First

Nations has yet to sign, and their 34 per cent

interest “will be held for them if and when they

choose to participate.”2

In March 2011, the Harper government gave

the federal green light to begin the construction

of the project. But in July, Shell Canada pulled

up stakes and is looking to sell its 100 per cent

ownership of the Niglintgak field, which alone

holds and estimated 800 bcf (billion cubic feet).

Hot on the heels of Shell’s decision, KOSGAS—Ko-

rea Gas Corp., the state owned and the globe’s

largest importer of LNG (liquefied natural gas) has

expressed interest and is rumored to have made

an offer on Niglintgak, and an outright purchase of

Shell’s 11 per cent interest in the overall project.

For now, the train is still on the track. Harper

is at the throttle and in early 2012 we should

hopefully see the start-up dates announced for

the 1220 km (758 mile) mega-pipeline.

But this piece is not about numbers. Rather;

it’s about the people, kinship, and community.

It’s really about a promise of the future—a future

that will forever reshape the North. And it’s a

personal reflection on character—stalwart, bold,

of resolute and unyielding tenacity—of those who

I still call my friends today.


People like O.D. Hansen, a principle with the

Aboriginal Pipeline Group (APG) and with whom I

shared some office space back in the day. To-

gether we helped developed the management

protocols for Ikhil discovery and the ensuing

Inuvik Gas Project.

And O.D.’s brother Frank; a Professional

Engineer and President of Kavik-AXYS Inc. A

successful entrepreneur in his own right and

equally know around the Delta for his business

acumen as for the retrofit 512 (16’x32’ cabin -

typical of the first houses built during the ‘50’s

when the notion for the town of Inuvik was know

as “East-3”) strapped to his river barge, in which

he plies the waters around town. If you’re lucky,

his wife Sandy can serve up an onboard and

mean Caribou stew.

Like Kurt Wainman owner of Northwind

Industries and general contractor—a flinty, unvar-

nished aficionado of anything with fuel injection.

He travels in the same circles with the likes of

Jesse James, host of TLC’s ‘Monster Garage’—for-

mer husband of actress Sandra Bullock. Father,

family man and of late, Kurt was part of the His-

tory Channel’s out-of the-park success story—‘Ice

Road Truckers.’

And for Fred Carmichael, who I meet briefly

during my tenure in the North, but have since gar-

nered an even greater respect, as the planning of

this issue gathered a head of steam and our piece

on APG, the Company he chairs gained purchase.

He is a true icon of the North.

The real story of the MVPP is one of fealty; of

community and respect for the land and of those

who came before. Of a People who understand,

without question, that the needs of the individual

are ephemeral at best. The truth of the story will

be told by the children, who will remember best,

not just achievements that can be counted, but

of the shaping of their path forward.

So, this is for the Hansen brothers and their

extended clan; two from a family of thirteen, born

on the land in a blink of a generation not far

past. This is a word too, for Kurt and his young

family, for the Wainman girls. And finally for Fred,

who offered his thanks to me for what The Cana-

dian Business Journal is doing for “our people”.

In turn, we here at George Media thank the

people of the North for their resolve, their com-

mitment, and for putting the needs of the People

before the needs of the few. CB

JOhn MedeiROs spenT a yeaR in The MaCkenzie delTa and diReCTs The eneRGy - Oil & Gas MaRkeT fOR The iRJ / CBJ.

1. CBC News—Business “Mackenzie Valley Pipeline- 37 years of negotiations”

2. ibid.

BuildinG MORe, fOR less

PPP CANADA CEO JOHN MCBRIDE

Building more, for less

ppp canada

Canadians are fortunate to enjoy a high quality of life. It’s likely that we are so accustomed to having fresh tap water to drink, safe roads on which to drive and buildings in which our legal and government functions carry out every day, that the great cost and resources that go into these services is not considered. That does not negate the fact that the upkeep and addition of public infrastructure costs billions of dollars to all three levels of government annually. Given the challenge of getting the most value for its money, governments on all three levels are recognizing the benefit and value of partnering with the private sector in Public Private Partnerships (P3) to “build more for less.”

230 INFRASTRUCTURE � PPP Canada

Public infrastructure makes Canada the

powerful country it is, and impacts the lives of

Canadians daily. As one recent example out of

many, with the P3 approach, the City of Barrie

will receive a new transit facility on time and on

budget, which will provide higher quality bus op-

erations and services to Barrie residents.

“Since the launch of the P3 Canada Fund in

2009, PPP Canada has seen growing interest

from municipalities that are considering P3s as

alternative means to delivering community-based

infrastructure,” said Greg Melchin, Chair of PPP

Canada Inc. “The City of Barrie is demonstrat-

ing another innovative P3 approach to delivering

FRoM lEFT To RIGhT: JohN MCBRIdE, CEo PPP CANAdA, ThE hoNoURABlE MIChAEl dE JoNG, BC MINISTER oF hEAlTh ANd MlA FoR ABBoTSFoRd WEST, FIRE ChIEF doN BEER, CITy oF ABBoTSFoRd, ThE hoNoURABlE Ed FAST, MINISTER oF INTERNATIoNAl TRAdE ANd MINISTER FoR ThE ASIA-PACIFIC GATEWAy ANd MEMBER oF PARlIAMENT FoR ABBoTSFoRd, hIS WoRShIP, GEoRGE W. PEARy, MAyoR oF ABBoTSFoRd.


high quality services that will meet the needs of

Barrie residents now and in the years to come.”

What are P3 partnerships?P3 partnerships are an integral component for

upholding Canada’s high standard of living through

building and maintaining large scale infrastructure

projects, the goal of which is “to ensure the

effective use of P3 where they produce value for

taxpayers,” says PPP Canada CEO John McBride.

An alternative method to using public coffers for

procuring large and complex public infrastructure

projects, PPP Canada was created to spearhead

the federal government’s P3 efforts and leads the

government’s commitments, outlined in a series of

budgets, to be a leader in P3.

PPP Canada is divided into two main business

areas, the P3 Canada Fund, a merit-based program

which encourages the use of effective P3s by prov-

inces, territories, municipalities and First Nations,

and the advancement of P3s by the Federal govern-

ment itself. In both instances, the P3 provides value

for tax payers by a number of advantages.

“Most importantly, P3s transfer risk of build-

ing medium and large scale projects to the private

sector,” says McBride. The design, build, finance,

maintenance and operation of a project’s entire life

is handled by a private sector partner, the result of

which means risk isn’t dispersed over multiple par-

ties with less or no responsibility of cost of building

and operating. “Rather, we are asking the private

sector to take those types of risks. And not only are

they saying they will take them but they back stock

that by backing it with their own money.”

In addition to risk-sharing, P3 contracts

offer better cost benefits, are more often

232 INFRASTRUCTURE � P3 Canada


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completed on time or early and optimise

resources and innovation.

“The advent of P3s has driven changes with-

in industry and government. For industry, it has

required the development of integrated solutions

drawing together leading expertise in the design,

construction, finance and operation of public in-

frastructure. For governments, it has required de-

fining what services Canadians expect from their

public infrastructure and using the disciplines of

competition and capital markets to ensure the

private sector delivers,” says Melchin in the PPP

Canada annual report for 2010-11.

Now in its third year of operation, PPP

Canada has focused on increasing Federal gov-

ernment participation in P3 projects, achieving

significant milestones with the closure of the

Communication Security Establishment Canada’s

(CSEC) Long Term Accommodation project, a

$876 million dollar state-of-the-art security facil-

ity, $176 million less than had it been a tradition-

al crown construct project.

According to CSEC, it was determined that

the P3 approach would be the most viable solu-

tion for the CSEC project. This approach creates

a partnership which allows the public sector to

leverage private-sector innovation and efficiency

to deliver major public infrastructure projects.

234 INFRASTRUCTURE � PPP Canada

“The private sector is responsible for the

design and construction, financing and mainte-

nance of the facility over 30 years,” stated the

CSEC website. “In the case of the CSEC project,

this approach provides compelling advantages

over the traditional Crown-construct approach,

such as greater certainty of on-time delivery of

this critical building, access to private-sector

capital, and the transfer of certain risks, such as

financial and schedule overrun.

McBride elaborates, “I’ll give you an example:

in a P3 project, there is no cost to the taxpayer

until the asset is completely built, so it’s [private

sector] equity at risk, and any cost overrun is

their problem; there is no paying until the asset

is delivered.”

Which products are right for PPP Canada?

“It’s not the silver bullet for all projects,” says Mc-

Bride. “We have to compare the advantages of

putting capital at risk. For example, if the city of

Ottawa wanted sidewalk repairs, there is no need

to put capital at risk because it is a straightfor-

ward project.

“But building a brand new hospital is more

complex, tends to be larger, tends to be in areas

outside of the core competencies of government,

and would benefit from private sector participa-

tion. The underlying question is always ‘Does


it produce value for money as a P3?’ We only

support and produce P3s that produce value for

taxpayers.”

As a young Crown Corporation, PPP Canada

is building up momentum, having, under Mc-

Bride’s guidance, received 121 applications in

2011, up from 73 in 2010, and 20 in 2009. The

federal government has also demonstrated its

support by way committing that all future fed-

eral projects over $100 million be mandatorily

assessed for P3 suitability. Canadians will get

more value for their tax dollars, the private sector

benefits from greater activity and our reputation

for world-class infrastructure grows.

“Our target is to leverage $1 billion infra-

structure a year. PPP Canada funds 25 per cent

of a particular project, and I’d like to see us

invest more than $250 million this year to over a

billion of infrastructure projects,” says McBride.

“Governments know that infrastructure is

necessary for the health and success of their

countries, and the old ways of doing it are not go-

ing to be sufficient to meet the challenges.”CB

www.p3Canada.Ca

sOpReMahas you covered236

COnsTRuCTiOn CB

238 CONSTRUCTION � Soprema

RICHARD VOYER AS GENERAL MANAGER OF SOPREMA CANADA


an international manufacturer that specializes in producing a range of waterproof products used in the construction and engineering sectors, Drummondville, Que.-based Soprema conducts business in more than 80 countries worldwide.

inTeRnaTiOnally headquaRTeRed in France

since its founding in 1908, Soprema opened its

doors to Canada 70 years later, in 1978, and

today employs more than 360 people at its two

major Canadian sites.

Focusing on the future of the construction

sector, Soprema’s product supply highlights envi-

ronmental protection and sustainability in manu-

facturing quality products to meet environmental

regulations and ‘green’ initiatives.

Leading the waterproofing sectorOne of the first organizations involved in roofing

manufacturing to establish an Environmental

Management Program, Soprema is ISO-14001

certified, recognized for its environmental man-

agement practices. The company was also the first

of its kind as a modified bitumen manufacturer.


Soprema manufactures and installs waterproof-

ing membranes for many Canadian companies.

Reads the company website, “Choosing Soprema

means choosing reliability—a decision to be pro-

tected from any problem.”

In addition to manufacturing waterproofing

products, Soprema aids in the development

of forward-thinking green roof technology in a

variety of roof building sectors. Soprema has

emerged as the industry-leading experts, the

frontrunners in the waterproof roofing field.

“This applies to Soprema production facilities

worldwide,” reads the company website. “Euro-

pean research facilities are developing products

made from renewable resources and recycled

materials to reduce Soprema’s carbon footprint.”

Today, sustainability has emerged as a primary

focus in the construction industry, however, it is

a focus that has long been part of the Soprema

mandate, even before it became mainstream.

Soprema has worked to promote the benefits of

sustainable roofing through a two-pronged ap-

proach of renewability and reusability.

“make a roofing system last as long as possible to delay its removal to landfill for as long as possible and reduce the use of new resources and materials,” summarizes the Soprema website.

Soprema offers the highest of industry exper-

tise from dozens of professionals. These techni-

cians offer vital product information relating to

product design, installation, maintenance, and

roofing systems renovation. Clearly, Soprema has

set the bar in the waterproofing industry.

The products offered by Soprema have

proven to be valuable in more ways than one in

that, through waterproofing technology, these

products also protect the investment of building


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owners by prolonging the product quality for as

long as possible.

Sustainable roofing systemLeading in environmental improvement and

green roof technological development, Soprema

has established long-term objectives of design-

ing an overall “sustainable roofing system”, with

a goal to keep these systems in place as long as

sustainably possible. Product component ma-

terials are prolonged, or recycled, diverted from

landfills, while products are also reused rather

than using new product materials.

Highlighting some of the many products

offered by Soprema, the website states, “The

weight of sopranature green roof systems has

been sufficiently reduced to allow garden roofs

on most existing buildings. In protecting the envi-

ronment, Soprema’s Coletanche geomembrane

systems are used in geotechnical, environmental

and hydraulic applications to retain liquid and

solid contaminants, including nuclear waste, to

protect groundwater resources, to control water

runoff and pollutants, and to provide biogas pro-

tection, as well as store potable water.

“Over the last 30 years, SBS modified bitu-

men technology has proven by far to be the most

reliable technology in the waterproofing industry.

Most Soprema roof waterproofing membranes

are made with SBS modified bitumen and include

a reinforcement of non-woven polyester or glass

mat,” the website continues. “Developed by a

seasoned research and development team, the

unique formulation and superior quality provide

exceptional durability and resistance to severe

weather conditions.”

LEED certificationThe industries supplied by Soprema are moving

more and more toward valuable environmental and

energy sustainability initiatives. As an example, an

increasing number of private sector companies, as

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well as governmental organizations, strive to imple-

ment Leadership in Energy and Environmental

Design (LEED) policies into their designs, where the

key goal is to achieve the best level of sustainability.

LEED certification is industry recognized for

green building efforts, in addition to being a rec-

ognizable achievement through third party reviews

and many new government-related environmental

incentives aimed toward improved sustainability.

These organizations contribute to a growing green-

building knowledge base that is worldwide.

The Soprema website concludes, “In the

future, manufacturers, designers and installers

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should be partners working together to help

protect the environment by making sustainable

development a priority.

“Energy economy, sustainability, efficient

utilization of raw materials and the reduction of

waste must guide roofing design and specifica-

tions. More precisely, designing for sustainability

must include materials and details which ex-

tend the useful lifetime of a roof and which are

matched with a sustainable recovery plan.” CB

www.soprema.Ca

244Build iT and They will COMeWhitecap Development Corporation

COnsTRuCTiOn CB

244Build iT and They will COMeWhitecap Development Corporation

246 CONSTRUCTION � Whitecap Development Corporation


as the economic arm of Whitecap Dakota First nation, Whitecap Development Corporation funds investment and business development in Whitecap, Sask. beginning in the mid-1990s, Whitecap Development Corporation has seen plenty of development, progress, and projects over the years.

Dakota Dunes ResortIn recent years, major developments have occurred in the form of the Dakota Dunes Re-

sort, which includes Dakota Dunes Golf Links, developed about seven years ago.

When developed, Dakota Dunes was ranked as the best new golf course in Canada.

Today, it remains with the Top 20 rankings nationwide for public golf courses. A large,

lake style course, the terrain of Dakota Dunes is rich with sand, uncommon for the area,

ideally located just south of the provincial business hub of Saskatoon. The course offers

plenty of natural beauty and space, developed over more than 240 acres.



A project that includes many phases, next to

follow was the development of the Dakota Dunes

Casino, a $61 million investment that has now

been in operation for four years. Certainly proving

to be a very profitable venture, the Dakota Dunes

Casino is also themed to represent its surround-

ings of the First Nations and its community. Col-

lectively, Dakota Dunes Golf Links and the Dakota

Dunes Casino bring in more than 1 million tourists

annually, creating plenty of economic prosperity

and job creation for the region and Whitecap De-

velopment Corporation.

Dakota Dunes Golf Links and the Dakota

Dunes Casino represent just two of the many

developments occurring under the vast Whitecap

Development Corporation, however.

The third stage of development is the Dakota

Dunes Hotel, a 161-room, full service accommoda-

tion. Complete with spa, a restaurant, a pool, and

meeting facilities, it is an investment that Whitecap

Development Corporation hopes to break ground

on within the next six months. Tied-in with this is

a resort-residential phase, with the current plan-

ning hoping to develop 355 residential units—a

combination of condominiums, townhouses, and

single family homes—which will only further add to

the economic feasibility and increased tourism of

the Whitecap area. The resort-residential develop-

ment is something that will also bring more retail

to the area, according to Darrell Balkwill, CEO of

Whitecap Development Corporation.

“With the tourism traffic and the additional people living in the residential, that will drive more retail amenities too. That’s part of the master plan within the community,” balkwill explained. “The bigger picture for tourism is that we have developed a regional tourism strategy with the different rural municipalities and towns, the City of Saskatoon, and we’ve developed a corporation called Diefenbaker Destination Developments.”

Diefenbaker Destination DevelopmentsDiefenbaker Destination Developments is named

after Lake Diefenbaker, a body of water south of

Whitecap which offers one of North America’s rare

fishing lakes. Tying in with Whitecap Development

Corporation, Diefenbaker Destination Develop-

ments offers a regional focus to the area. As such,

the highway which runs from Saskatoon, through

Whitecap, to Lake Diefenbaker has been appropri-

ately renamed as Chief Whitecap Trail, paying hom-

age to the First Nations community. The renaming

also plays a part in the region’s tourism strategy.


Job creation in WhitecapAs with any major economic developments, the

developments of Dakota Dunes Golf Links and

Dakota Dunes Casino, and the future develop-

ment of Dakota Dunes Hotel, as well as resi-

dential, have allowed for plenty of job creation;

combined, the golf course, casino, accommo-

dations, and retail has created more than 650

jobs for the community, and The Dakota Dunes

Hotel will add another 100 jobs as well. Project

development also creates short-term work, such

as construction jobs. Similarly, Dakota Dunes

Golf Links, the host of a major Canadian tour

event in each of its four years of operation,

creates about 60 jobs every year in golf course

layout and maintenance.

With any business development and investment, the no. 1 goal is profitability. economic prosperity is critical, and tourism and employment generation for the whole region is an added bonus.

Today, Whitecap Development Corporation

works on the latest addition of its master plan to

drive both recreational tourism and cultural tour-

ism to the community. More than 1,000 acres of


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Congratulates The Whitecap Dakota First Nation

and Chief Darcy Bear for their

leadership and vision in

the development of the

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land in the community have been earmarked for

commercial developments.

“We’re really starting to build a sense of community here. There is a lot of input from the community in all the developments that we pursue here,” balkwill said. “We have a lot of community meetings, we take all of our projects to the community to make sure that they are aware, and that the community is supportive of the projects that we are proposing.”

Whitecap Trail Business ParkWhile the focus remains on developing and exe-

cuting its resort tourism strategy, Whitecap Devel-

opment Corporation plans to diverse its strategy

to include manufacturing, setting aside about 40

acres of land to be developed into a business park

area, known as Whitecap Trail Business Park.

Currently under market analysis and feasibility,

the park project hopes to attract manufacturing

and light industrial work. Getting the ball rolling,

Whitecap Development Corporation has estab-

lished two of its own businesses: Dakota Vehicle

Systems, which markets vehicles for military,

homeland security, and security monitoring, and

Dakota Technologies Corporation, a research and

development corporation specializing in vehicle de-

sign. Both companies are part of a focus to attract

aerospace and defense companies to Whitecap.

To date, Whitecap Development Corpora-

tion has invested $12 million in infrastructure,

communications, water, sewer, natural gas, and

power to accommodate business development.

The goal remains to attract investment and dol-

lars to Whitecap.

Balkwill summarized, “We’ve spent a lot of

time and money trying to establish a solid busi-

ness development and investment environment

at Whitecap Dakota First Nations. So far, all of

our investments have been in partnership. We

have brought in other partners and that’s what

we’d like to continue to see, more partnerships

and more investments by outside groups and

business development by outside groups. We are

open for business.” CB

www.whiTeCapdakOTa.COM

254Centric healthsTRaTeGiC aCquisiTiOns fOR a BeTTeR healThCaRe sOluTiOn

254

healTh CaRe CB

Centric healthsTRaTeGiC aCquisiTiOns fOR a BeTTeR healThCaRe sOluTiOn

256 HEALTH CARE � Centric Health

The dynamic growth of Centric health over the last few years is particularly impressive. This highly diversified healthcare company has had a significant string of acquisitions that are aligned to help achieve a strategic vision. a unique presence in the Canadian market, Centric health is paving the way for a future era of healthcare reform. This month, we spoke to President and Ceo Daniel Carriere about how Centric health is achieving its success as Canada’s premiere healthcare company.

DANIEL CARRIERE, PRESIDENT AND CEO



CenTRiC healTh is a publicly traded company

and has a business model focused on the stra-

tegic acquisitions of healthcare companies. Its

current market cap is $225 million to $270 mil-

lion, on a pro forma basis, and Carriere predicts

hitting revenues in excess of $300 million—

a significant growth since inception. How does

Carriere account for its success? “I think it’s our

focus and our vision as a Canadian corporation,

which is to become Canada’s premiere health-

care services company that provides innovative

solutions that focus on patients first.”


The vision was initially developed by Dr. Jack

Shevel, founder of NetCare, a South African

company he built into one of the leading private

health care companies in the world. Dr. Shevel

and his team at Global Health Investment Solu-

tions are principle investors in Centric Health and

serve as strategic advisors to Carriere and the

Centric Management Team.

Beneficial business model The business model has a benefit for both

healthcare providers, as well as patients. By ac-

quiring companies that are truly ‘best in breed’,

Centric Health is able to provide its customers

with exceptional health care options. “Our ap-

proach is to really look at companies who are the

absolute best at what they do,” Carriere explains.

“We want to work with those people who have ex-

tremely high patient care expectations, and also

very high ethical standards.”

“We focus on top line and bottom line, ensur-

ing that we have a value-added component that

we can offer companies, which is our expertise in

other areas such as Finance and Human Resources.

We have that critical mass to offer so that those

companies can focus less on administrative and

financial tasks and more on patient care. We are

focused on creating ongoing efficiencies. It’s good

for the patients and good for business.”

Rapid growth, major acquisitions The Centric Health plan is to grow rapidly through

acquisitions, which it has been doing at a consid-

erable pace during the last few years. In January,

Centric Health added Surgical Spaces, which is a


surgical company based in Vancouver and Win-

nipeg. In May, it added Lifemark Health, which

focuses on medical assistance and elder care,

marking a key moment in the company’s history.

“That was a transformational acquisition and a

turning point for the company,” says Carriere.

Since that time, Centric Health also acquired

a surgical company called Bluewater Surgical

with locations in Sarnia, London, and Windsor,

Ont. It acquired a speciality pharmacy operation

with 33 locations across Ontario, focused spe-

cifically on methadone clinics. An orthotics com-

pany, Performance Medical Group, fits in with the

focus of elder care, physiotherapy, and rehabili-

tation. And just a week prior to this interview, it

was announced that Centric Health had acquired

MIC, a large diagnostic company with 16 loca-

tions across the Greater Toronto Area.

Centric Health is well-diversified across Cana-

da. For example, with its acquisition of Lifemark,

it has 104 clinics across the country. “These are

just some of the examples that indicate how our

growth focus will help us move forward,” Carriere

explains. It has been an aggressive growth strat-

egy, but a successful one. “We want to complete

one major acquisition every quarter and we have

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been on track with that.” Centric Health plans to

match that goal will many other minor acquisi-

tions that complement the overall strategy of

providing better healthcare.

“But we are not just a roll up company!” says

Carriere, who has created a business develop-

ment unit to deal with Mergers and Acquisition

activity, and also to look at the integration expec-

tations surrounding strategic acquisitions. “If we

can’t integrate all of the components, we can’t

create a seamless model of care. We want to

maximize top line growth and efficiencies derived

from the new partnerships.”

Future goals For the future, Centric Health will continue to

move forward with its acquisition strategy, fo-

cusing on its current pillars of care including

rehabilitation and physiotherapy, eldercare, medi-

cal assessment, surgery, diagnostics, pharma,

homecare and home health. Centric Health al-

ready has a large market share in the elder care

business, covering about 449 homes and 45,000

beds across Canada, but is looking to move be-

yond that and increase its size and scope within

the homecare business. “We think that there is

going to be a tremendous focus on homecare for

the elderly, and keeping them out of the most

expensive part of care which is hospitals.”

Centric health also has a firm idea of where it stands in the market. “We don’t want to compete against a Shoppers Drug mart,” says Carriere. “We’re focused on a niche market in regards to pharmaceuticals such as delivering medications to elderly people and nursing homes, and we’re looking at repeat medications that are prescribed on a regular basis, and making sure our drug distribution service is the safest and most efficient in the country.”

Innovative strategies such as this are sure to

take Centric Health and its investors into a suc-

cessful and profitable era. “We expect in two to

three years we’ll be a $2 billion market cap com-

pany,” Carriere notes. An ambitious goal consid-

ering the current market cap of $225 million, but

he is completely confident of success.

“Our investors have placed their trust in us and

we have given them a return highlighting a com-

pounded annual growth of more than 20 per cent.”

hTTp://alleGROhealTh.COM

264BRazil Canada ChaMBeR Of COMMeRCe

pROduCTs & seRviCes CB

264

266 PRODUCTS & SERVICES � Brazil Canada Chamber of Commerce

The brazil Canada Chamber of Commerce works to strengthen international relations and commerce between Canada and brazil. maintaining strong relationships with both countries, the brazil Canada Chamber of Commerce works closely to identify membership, investment and trade opportunities between these two economically powerful nations.



Raul papaleO, pResidenT of the Brazil Canada

Chamber of Commerce, stated that annual trade

between Canada and Brazil has now reached

about $7 billion, a notably increase, but still rela-

tively small when you consider that the combined

GDP of the two nations tops $4 trillion. Over the

last four to five years, investment has increased,

so expecting a future trade increase between

Canada and Brazil is only natural as well.

“The trade is very small, but now we have the

space and the patience of both governments to

increase the level of trade,” Papaleo said. “Our

role in this is to foster the increase in trade and in-

crease in investment between Canada and Brazil.”

Beginning in 1973, the Brazil Canada Cham-

ber of Commerce works to secure business

memberships as part of its association. Last

year, the chamber had 67 corporate members,

a figure that has now doubled in one year. Such

explosive growth means that the Brazil Canada

Chamber of Commerce is achieving its mandate

of networking and building contact companies

and people interested in conducting business in

Brazil and business in Canada.

Investing internationallyOpportunities exist for Canadian companies to

operate in Brazil, and opportunities exist for Bra-

zilian companies to operate in Canada. The Brazil

Canada Chamber of Commerce provides the in-

formation necessary that allows these business

operations to prosper in foreign nations.

Scotiabank is proud to be the most active Canadian bank operating in São Paulo, offering clients local expertise and global reach.

Our professionals in Brazil and in some 50 countries around the world help clients seize opportunities, unlock value, and achieve their financial goals. We have been operating in Brazil with a representative office since the early 1970’s providing trade finance and correspondent banking services through Scotiabank offices and affiliates abroad. After a recent acquisition, we are proud to announce that Scotiabank now operates a wholesale bank in Brazil with a multiple banking license, enabling us to offer access to a range of corporate and investment banking and capital markets products and services.

At Scotiabank, our local expertise is complemented by our international reach helping clients achieve results.

For more information, please contact (55-11) 2202-8100 or visit www.br.scotiabank.com/english

™ Trademark of The Bank of Nova Scotia. Used under license, where applicable. In Brazil, Scotiabank is a marketing name of Scotiabank Brasil S.A. Banco Múltiplo.

The products and services described herein may not be available in all jurisdictions and are offered by different legal entities authorized to use the Scotiabank trademark. For more specific information, please contact your Scotiabank Brasil representative.

Canada's MostInternational Bank has Expanded into Brazil!

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M360-11 Brazil Ad_October 2011_FINAL.pdf 1 13/10/2011 4:47:51 PM


Scotiabank is proud to be the most active Canadian bank operating in São Paulo, offering clients local expertise and global reach.

Our professionals in Brazil and in some 50 countries around the world help clients seize opportunities, unlock value, and achieve their financial goals. We have been operating in Brazil with a representative office since the early 1970’s providing trade finance and correspondent banking services through Scotiabank offices and affiliates abroad. After a recent acquisition, we are proud to announce that Scotiabank now operates a wholesale bank in Brazil with a multiple banking license, enabling us to offer access to a range of corporate and investment banking and capital markets products and services.

At Scotiabank, our local expertise is complemented by our international reach helping clients achieve results.

For more information, please contact (55-11) 2202-8100 or visit www.br.scotiabank.com/english

™ Trademark of The Bank of Nova Scotia. Used under license, where applicable. In Brazil, Scotiabank is a marketing name of Scotiabank Brasil S.A. Banco Múltiplo.

The products and services described herein may not be available in all jurisdictions and are offered by different legal entities authorized to use the Scotiabank trademark. For more specific information, please contact your Scotiabank Brasil representative.

Canada's MostInternational Bank has Expanded into Brazil!

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M360-11 Brazil Ad_October 2011_FINAL.pdf 1 13/10/2011 4:47:51 PM


The Brazil Canada Chamber of Commerce

advocates its objectives through close ties with

federal governments in both nations, as well as

the ministries of foreign affairs and provides

critical information that is of utmost value to

those who conduct businesses in a foreign na-

tion like Brazil, or Brazilian companies conducting

business in Canada.

“The first and most evident sector that

presents opportunities for companies in both

countries to join or to establish their own opera-

tions in the other country is information technol-

ogy and communication,” Papaleo said. “This is

the most evident opportunity, but we have large

opportunities in terms of size of projects in the

infrastructure area.”

Notably, opportunities exist in research and

development, engineering, and manufacturing,

particularly in Brazil. This allows for Canadian

organizations to offer their expertise in these

areas, such as assisting in building infrastructure

in Brazil. With a need for new roads, highways,

airports, and buildings, Brazilian cities must re-

model to accommodate for traffic requirements.

What other opportunities exist for Canadian

companies operating and investing in Brazil?


“our goal is to offer access to resources and network opportunities for anyone interested or active in investment or trade amongst Canada or brazil,”


One example, in Brazil’s largest city, Sao Paulo,

overwhelming population and traffic has driven

demands for a monorail, rail-based transporta-

tion, to increase efficiency and reduce conges-

tion. The value of such a system is more than

$1 billion, according to Papaleo. Monorails rep-

resent a ‘new era’ way of thinking in terms of

transportation, and also tie in with reductions in

greenhouse gas emissions, energy conservation

and efficiency, and clean energy.

There are also opportunities in Brazil to be-

come involved in oil and gas extraction, with more

than $60 million outlined for future investments

in new oil wells, allowing the country to become

the first- or second-largest oil producing nation in

the world, according to Papaleo.

Energy sector developmentEase of operations between the two nations

is also fruitful because Canada and Brazil are

similar in many ways, however, Papaleo feels

Canadian businesses would be able to help Bra-

zil-based companies become more advanced

in renewable energy production, such as wind

energy and solar energy. It is an area he expects

will see much growth in Brazil over the coming

Canadian Wealth Management Expertise provided to Brazilian clients since 1919At RBC Wealth Management, we provide a comprehensive and secure wealth management solution to help you preserve and build your wealth, manage and diversify our assets and achieve your personal financial goals.

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To learn more, visit www.rbcwealthmanagement.com or call us at (416) 974-8626 or from Brazil call toll free 0-800-891-6893.

There’s Wealth in Our Approach.

RBC Wealth Management is the global wealth business of Royal Bank of Canada and affiliates. The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. ®/ TM Trademark(s) of Royal Bank of Canada. Used under licence. Above mentioned services are offered through Royal Bank of Canada or its affiliates.


two to three years, partly because Canada is

considered an advanced nation in terms of re-

newable energy and production.

Brazil has committed to sustainable means,

through clean-tech energy and energy sources.

These represent a Canadian growth sector and

an area of opportunity and expertise where

Canadian organizations would be able to assist

those in Brazil.

“Our goal is to offer access to resources

and network opportunities for anyone inter-

ested or active in investment or trade amongst

Canada or Brazil,” reads the Brazil Canada

Chamber of Commerce website. “No matter the

size of your business, joining the Brazil Canada

Chamber of Commerce is one of the best invest-

ments you can make.”

The Brazil Canada Chamber of Commerce

seems more growth ahead, and has an aggres-

sive target for growing its corporate membership,

something it feels only adds further value to its

core operations.

The chamber strives for a 50 per cent in-

crease in trade and investment over the next two

years, while it is also hoping for a repeat perfor-

mance in doubling its member size.

To Be Canada, an organization that identifies

and supports business opportunities in Canada

and Brazil, and was featured in the October issue

of The Canadian Business Journal, is a member of

the Brazil Canada Chamber of Commerce. CB

www.BRazCanChaMBeR.ORG

MaRkhaM aCuRaTrue definition of luxury274

MaRkhaM aCuRaTrue definition of luxury


276 PRODUCTS & SERVICES � Markham Acura

after successfully managing Downtown acura of Toronto, General manager michael brugel was tasked with bringing that same performance to the brand’s northern GTa dealership, markham acura.

siMply puT, MaRkhaM Acura and Downtown

Acura essentially exchanged businesses in

April of this year, with Markham Acura bring-

ing most of its experienced team along for the

move. The importance of a knowledgeable and

competent team was one of the key areas Bru-

gel highlighted when speaking with The Cana-

dian Business Journal.

“Our policy is to keep our people for the long-

term as much as possible. A large number of our

personnel have been with us for 10-plus years,

and a few in excess of 20 years,” Brugel said.

“One of the things that is most unique about this

dealership is the long-term staff, in all depart-

ments, particularly on the sales floor. Our long-

term staff and our achievement of a high level of

client service is what makes us unique.”

Quality staff means quality serviceCustomers develop a comfort and a relationship

with staff that they see time and again at the

dealership, which is why Markham Acura aims to

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retain its staff long-term. Brugel summarized, “It

is an environment that we try to foster.”

Markham Acura also believes in fairness, to

its customers and to the business itself. Brugel

added, “If both our clients and ourselves are

comfortable and satisfied with the agreements

we make, our clients are happy, we are happy

and everyone can enjoy “A Truly Outstanding

Markham Acura Experience”. That, by the way, is

our mission statement, to provide “A Truly Out-

standing Markham Acura Experience”.

The staff is knowledgeable of its surround-

ings in that, with the dealership being in a

diverse market such as Toronto, the team at

Markham Acura is familiar with a variety of lan-

guages, customs, and practices, all in place to

make the customer feel comfortable when brows-

ing or buying.

With a long-term outlook, Markham Acura

focuses on growing deep roots in its region, with

the intent of developing long-term client relation-

ships. It is not uncommon for the dealership to

serve the customer and then subsequent genera-

tions of that same customer.

The location switch was made with the

two dealers feeling the move would provide a

good opportunity. In terms of Markham Acura,

it means a new, permanent home for the

PHOTO CREDIT: LENDY16 / SHUTTERSTOCk.COM


dealership, complete with new real estate and a

modern, elaborate facility. More generous space

allows the dealership to display more than 20

cars in its showroom, while phenomenal dealer

displays provide visibility from Highway 7 also

adding to the positive points of the new location.

“Based on the physical structure, along with

the staff and experience we bring, we will be able

to service the community and do Acura proud,”

Brugel said.

Attributing its success to its experienced staff,

Markham Acura stresses good service and respect

for its clientele. Markham Acura understands the

importance of being a good community citizen.

“There are some things that are just lucky,

so we have the privilege of being in such a good

spot,” Brugel said of the dealership’s high-traffic

location in the north of Toronto town. “You then

take that and then develop a good reputation in

the community.”

Ahead of the curveOver the years, Acura refined its product and its

operations to stay ahead of the curve, evident at

Markham Acura. As a Japanese car model, the

Acura brand experienced a setback when the

tsunami and earthquake rocked Japan in March

of this year. As Acura production was delayed, so


too was product supply. But, by keeping a firm

grip on the wheel, Markham Acura was able to

stay productive during this period by focusing

on its service business, as well as its pre-owned

vehicle sales. Markham Acura persevered dur-

ing this downtime, as it did previously when the

economic downtown took its toll on the North

American automotive industry.

“We maintained our staffing level because

you can’t replace a staff member overnight who

has 10 years of experience,” Brugel said. “We

hunkered down and tried to do the best we can

with what we had to work with it, promoted our

used cars strongly, and we came through it.”

As was the case with many automotive

brands, Acura was not exempt to the effects of

the recession, but Brugel is fully confident that

the company can regain and improve the foot-

ing it had previously in the automotive world.

Markham Acura believes it can rediscover and

surpass its previous volume levels through

new products, further developing its relation-

ships within the community, and in striving

to become an iconic business in the Town of

Markham, something it believes is probable

when offering a good product and very atten-

tive service. Brugel added, “We are not in this

business for a week or a month. We are in this



business for 40 or 50 years, so we conduct

ourselves with that in mind.”

Regardless, Japanese-made cars are renowned

for revolutionary advancement, and have led the

way in terms of environmentally friendly offerings as

well as excellent fuel efficiency ratings. Today, both

remain ongoing initiatives for Acura. As one exam-

ple, the first Acura hybrid model will be released in

2012, something the company is looking forward to

with much anticipation.

“Our car products, for the most part, are at

the upper level of fuel efficiency rankings and

Acura has been at the forefront of environmental

responsibility,” Brugel summarized.

Why buy Acura?Today, Acura remains an attractive buying op-

tion for the consumer looking for a luxury brand

without the luxury price or, as Brugel put it,

“a product that provides extreme value in the

luxury marketplace.”

“We probably provide more for less than any

other car company in the luxury segment, and

even more so than some companies that are

operating slightly below the luxury segment,”

Brugel summarized.

“Our styling tends to be a balance between

cutting edge and conservatism, so it is styling

with which people can be comfortable,” Brugel

concluded. “Our cars perform and handle, and

are designed for the individual who takes plea-

sure from the act of driving; an active driver.”

“As far as Markham Acura is concerned, we

believe we will succeed and we believe that our

strength is treating our customers with respect

and dealing fairly with our customers. We have

staff that are knowledgeable, experienced, and

understand the product and the marketplace

around them. We will continue to strive for im-

provement, by standing behind the service and

products that we provide.” CB

www.MaRkhaMaCuRa.COM

papasOn TRuCkinGGoes the extra mile282

papasOn TRuCkinGGoes the extra mile


284 PRODUCTS & SERVICES � Papason Trucking

Prince George, b.C. is home to Papason Trucking, the transportation company that specializes in refrigerated delivery service. Serving the province of british Columbia, Papason Trucking began as a small company and to this day understands the benefits of being a smaller organization and uses this to its advantage to be the best in business.

sMalleR COMpanies aRe able to focus on cus-

tomer service, a hallmark of Papason Trucking.

Beginning in 1978, Papason Trucking has been

in business for 30-plus years and a big reason

for that is because the company has excelled in

keeping its customers pleased and satisfied.

Initiated by the father and son team of Bill

and Howard Arp, the two are still much involved

with the company today. Papason Trucking

began hauling freight in 1984 for two organi-

zations, Circle T Lines and then Clark Reefer.

As time went on, Papason Trucking began to

expand its distribution areas, making three

trips a week to the northern district of Macken-

zie, British Columbia. Following, the company

expanded its ties within the British Columbia

market, associating with Kelly Douglas & Co.

and Sunspun Foods, hauling these products to


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In Northern BC, Commercial Logistics and Papason Trucking have a long and successful partnership serving the communities up top.After all, going the extra mile on the open roadsof the North is always easier with a friend.Call us and find out how we can get your products moving throughout BC, the West and the World.

nearby Chetwynd, Dawson Creek, and Fort St.

John, among other areas. Over the years, the

company continued to grow, then working with

Edmonton-based companies moving product

into Prince George. Vancouver-based Neptune

Foods and Gordon Food Service are also served

by the Papason Trucking team.

Papason delivers a variety of refrigerated

products within Prince George and the surround-

ing areas.

“Papason has been doing business in British

Columbia for over 30 years and all I can say is

that we couldn’t have done it without our peo-

ple,” Howard Arp, Owner, Papason Trucking, tells

The Canadian Business Journal. “We take pride

in the service our employees provide for our cus-

tomers, always going that extra mile.”

The importance of customer serviceA focus on customer service has allowed Papa-

son Trucking to buckle down during the reces-

sion, focusing on the key areas that have made

the company the success it has been for the past

33 years. This positive approach that is evident

throughout the company allows Papason Truck-

ing to scathe most of the effects of the economic

downturn. This approach to business also plays a

role in serving as the competitive edge of Papa-

son Trucking, in being a small company that is

able to give its customers the right attention with

the best of service. Papason Trucking has worked

to continue offering its customers the best avail-

able quality, ensuring that every aspect of a

Papason Trucking delivery is handled with per-

sonal care and attention to detail, for the smooth

shipment of an order.

The company is consistently adapting

methods to further improve its services, adding

modern fleets of trucks to best serve each

customer’s unique need. New equipment also

allows Papason Trucking to conserve fuel,

while also reducing its greenhouse gas and

carbon footprint through producing cleaner

286 PRODUCTS & SERVICES � Papason Trucking


air emissions. Papason Trucking works with

environmental sustainability in mind. As an

example, truck trailers offer climate control to

move the right product at the right temperature.

Specializing in refrigerated delivery service,

delivers leave daily from Prince George to the

northern part of the province. Papason Trucking

knows that, throughout its history, it has

satisfied its customers who can be sure their

job has been done right.

“We work closely with our clients to custom-

ize deliveries to make sure your product arrives

at its destination exactly how and when it needs

to,” reads the Papason Trucking website. “Wheth-

er its food or tree seedlings, Papason delivers.”

The family businessA family-owned business that is proud to repre-

sent Northern British Columbia, Papason Truck-

ing serves as a product distributor for the region.

Its own warehouse equipped with freezer and

cooler units, Papason Trucking safely protects

products until delivery.

With strong ties throughout Northern British

Columbia over the past 30-plus years, Papason

Trucking has built a strong customer base that

expects and receives excellent customer service.

Reads the Papason Trucking website, “With

a core of dedicated and skilled employees,

Papason Trucking offers its clients the finest in

trucking services with a reputation to back it up.

Our modern fleet of trucks used are more than

capable of fulfilling your needs.”

“We thank all of our partners in the industry

because without them we wouldn’t have been able

to grow as successfully as we have,” Arp summa-

rized. “We consider ourselves truly blessed.” CB

www.papasOnTRuCkinG.COM

Westowne mazda provides the latest and greatest of the mazda brand.

288wesTOwne MazdashOwCasinG exCellenCe

Westowne mazda provides the latest and greatest of the mazda brand.


288wesTOwne MazdashOwCasinG exCellenCe

290 PRODUCTS & SERVICES � Westowne Mazda


lOCaTed On dundas West of Toronto, Westowne

Mazda began in 1983 and today continues as a

family-run operation, managed by the father and

son team of Domenic Figliano, President, who

has been part of the automotive industry since

the 1960s, and Niki Figliano, General Manager

of Westowne Mazda. Domenic’s other son, Niki’s

brother, also participates in the management of

Westowne Mazda. When the Westowne Mazda

dealership became available in 1983, the Figlia-

nos jumped at the opportunity.

This month, Niki Figliano spoke with The

Canadian Business Journal about the develop-

ments at Westowne Mazda, specifically about

the many positives that have reverberated from

the renovation of the dealership’s vehicle show-

room, which will surely contribute to the continued

success of Westowne Mazda.

The new, state-of-the-art showroom is show-

cased over two floors—the only one of its kind

in all of Canada—with more than 100 Mazda

vehicles on display for customers to enjoy. Build-

ing with the success of Mazda Canada’s global

image in mind, the new showroom is truly origi-

nal and represents the modern style offered by

Mazda. The dealership has renovated its entire

showroom as well as its front of building.

At its current location for almost 30 years

now, Westowne Mazda highlights its unique

aspect of being a family-run business, rare in the

automotive industry, as reasoning to the compa-

ny’s successful history. Westowne Mazda focuses

on its strengths, as well as its talented staff.

Figliano said, “A lot of dealerships have an owner

who has five or six dealerships and that owner

cannot be on location all the time. Our advantage

is that we are here, and if there are customer

concerns or issues, we are able to tackle them

right then and there. That’s a big plus.

“I think the customer sees that we are here,

that we have a passion for the business, and that

we want to make the customer happy.”

Showroom renovationThe new showroom has been well received by

both the company and its customers, who are sat-

isfied and impressed with the new development.

The new showroom not only offers more showcas-

ing and more accommodating space, but also an

improved lounge to keep customers satisfied and

comfortable. The customer lounge is located in

the showroom, allowing customers to peruse the

selection of Mazda vehicles on display.

Customers accommodated the showroom’s

construction period, which at times could be

noisy and distracting, but was plenty worth it

when keeping the finished product in mind. Fi-

gliano summarized, “It wasn’t easy. We did the

292 PRODUCTS & SERVICES � Westowne Mazda

renovation while operating, so we cut the show

room in half, and we would work on one side,

while the construction crews would work on the

other, so at times it was a little tough, but our cus-

tomers were great, it was no problem for them.

“Our customers were excited to see the fin-

ished product, because they have become more

friends than customers as we have known them

for so long.”

Perhaps most unique, however, to the

showroom redevelopment is that in a time when

many in the automotive industry were facing

layoffs, cutbacks and struggling sales figures,

Westowne Mazda was able to focus on the future,

with the exciting development that today is its

new automotive showcasing.

Figliano expects that the new showroom will

only further contribute to the high level of cus-

tomer satisfaction achieved by Westowne Mazda.

There is plenty of repeat business for the dealer-

ship, as well, with many customers returning to

purchase their third, fourth, or fifth Mazda vehi-

cles. Customers have options in where to buy their

next Mazda, but are so impressed with not only

the product, but the service received at Westowne

Mazda, that regular repeat business has proven to

be a great achievement for the dealership.

Customer serviceLike any in the automotive dealership industry,

or any in business as a whole, Westowne Mazda

prides itself on customer service satisfaction, a

philosophy that has allowed the company to retain

not only its customers, but future generations.

Children and grandchildren of these customers

often become customers at Westowne Mazda.

Figliano also thanks the dealership’s custom-

er loyalty for allowing the company to be nearly


recession proof during the tough economic times

in recent years. Figliano said, “In terms of the re-

cession itself, Mazda has some great, well-priced

products, so it was positioned well going into

downtimes like this.”

The dealership also went as far as adding

the most economic and energy efficient products

during its remodeling. Westowne Mazda is work-

ing toward reducing its carbon footprint and most

important to the company is achieving its highest

levels of efficiency.

And while much of the dealership’s showroom

has changed, the same cannot be said for the

staff on board at Westowne Mazda. Figliano said,

“We have our core employees who have been here

for a long time. We don’t have a revolving door.

Our staff is here for the long-term, our core staff is

still here, and our core values remain the same.”

From here, Westowne Mazda continues to

provide excellence in customer service and to

serve its community in the best ways possible. In

offering its highest level of product and service,

Westowne Mazda is confident that customers will

keep coming back. CB

www.wesTOwne.COM

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penCO dRywallexpect perfection294

penCO dRywallexpect perfection


296 PRODUCTS & SERVICES � Penco Drywall


last year, when Penco Drywall spoke with The Canadian Business Journal, the company discussed its goal of entering the lucrative high rise market. one year later, Penco Drywall has accomplished that goal.

Entering the high rise marketNow part of the high rise industry, Penco Drywall entered the mar-

ket knowing that the industry and construction in general is mov-

ing toward high rises. As Brad Pierce, part of the Penco Drywall

team, put it, moving forward, more and more high rise buildings,

offices, and condominiums are being built compared to low rise

construction. It serves as an excellent stepping stone for Penco

Drywall in its penetration of the high rise market. The industry

moving toward the high rise market is something that has proven

to be both beneficial and an exciting challenge for Penco Drywall.

“The high rise market is very competitive and sometimes it can be

difficult to pick up high rise [projects] as there are a lot of compa-

nies going after these jobs,” Pierce said. “It can be good, and it

just depends on making the right decisions.”


The company entered the high rise market

after perfecting its craft in the residential and

commercial sectors. Entering the high rise mar-

ket was a new and exciting venture for Penco

Drywall, a move that has resulted in a more

involved, more enthusiastic staff.

“High rise is totally different than doing a

house, so the biggest challenge was finding

enough quality workers to be able to do the jobs,”

Pierce explained. “It has been a little different

because you’re pushed to finish the job quickly,

and it is a different atmosphere from what our

job site managers are used to. Managing the job

is the biggest challenge.”

The Penco Promise is simple: Expect perfec-

tion. With its own trade professionals, Penco

Drywall promotes a positive work environment

built on fairness for its workers. Penco Drywall

staff is treated fairly and with respect, and in

turn, this staff provides excellence in its work,

offering a product quality that is strives to exceed

expectations. The message of high quality is

evident across all levels of the business, from its

management, to its staff, to its project efforts, to

its finished product.

“We take pride in maintaining our quality as

well and a lot of that stems from having a work

force that we can trust and that is very loyal to us


because we treat them with respect, the way they

should be treated,” Pierce summarized.

Buckling down during the recessionWith the industry slowing and still feeling the

effects of the recession, Penco Drywall focused

on maintaining its quality and by working that

much harder to ensure that the company stays

consistent.

Like any industry, and any business, Penco

Drywall felt the business slowdown during the

economic downturn. Rolling up its sleeves, Penco

Drywall worked to retain its volume levels during

the recession, while the company endeavored to

retain its work volume levels. Penco Drywall has

worked with new customers as well to maintain

its volume level and keep its staff busy with a

variety of projects.

And as is the case with any industry, when

demand falls and supply does not, margins

become tighter, and the focus turns to further

upping the company’s customer service perfor-

mance. In treating its own staff well, that mes-

sage is then translated from Penco Drywall staff

through to the customer.

“We probably are one of the fairest companies

with our workers. What it does is a lot of companies

will maybe not treat their workforce as well as they



should, and that hinders a company’s quality in

the end,” Pierce said. “Our staff gives us a bit of an

edge, we take great pride in that, and a lot of other

companies can’t really say that.”

Accordingly, the Penco Drywall staff is loyal,

and many workers have been with the company

since its founding in 1996. This year, the family-

run Penco Drywall is excited to celebrate its 15

years in business.

Now, the company has turned its focus to

fine tuning its service delivery in the high rise

market, as well as growing its base in the high

rise industry, both achievable goals. Penco Dry-

wall also focuses on growing through its high

rise business as well as from its repeat business

base. With such objectives, the future remains

bright for Penco Drywall.

www.penCOdRywall.COM

AthAbAscA bAsin security serviceIndustrial safety experts 302

PRODUCTS & SERVICES CB

302

304 PRODUCTS & SERVICES � Athabasca Basin Security Service


being a 100 per cent aboriginal/First nations owned and operated company is a source of pride for ron hyggen, Ceo of athabasca basin Security Service. headquartered in Saskatoon and Wollaston lake, Sask., the company provides industrial security solutions to the mining industry. Since 2002, it has successfully completed work with a number of top-tier mining names in alberta and Saskatchewan, and has made a name for itself as leaders in the field.

The Business MOdel is simple, yet effective,

focusing on the uniqueness of each individual

client and project. Aimed specifically at mine sites

and large industrial facilities, the idea came to life

when a need was identified that drove the entire

project. “We became aware of the need to under-

stand safety violations,” Hyggen explains, which is

a major concern for mining and oil companies.

On an industrial site, security regulations such

as knowing who is onsite at all times can be tricky

to maintain. Understanding these complexities re-

quires some expertise. For this reason, Athabasca

Basin Security Service is strong proponents that

each site and client is unique. Customization of ser-

vices, therefore, is fundamental in order to achieve

the objectives of protecting people, property and

information for any one location and company.

Impressive skills draw impressive clients The niche market that Athabasca Basin Security

Service has chosen obviously has served it well.

“There are a lot of areas of security that you can

work in, but we focus on industrial security,” says

Hyggen. “There is bigger money for operators in

things such as oil and gas, mining—we focus on

that so we can be the best at what we do.”

Indeed they must be, because their client list

includes such names as Areva, Cameco, and BHP

Billiton. “Our biggest strength is our clients, that’s

for sure,” says Hyggen, who has been with the

company since inception. “We are First Nations

owned and operated, and use this to basically

build a partnership with Northern Operators.”

Athabasca Basin Security has successfully

grown over a number of years and now employs

more than 100 people, and has a roster of

about 70 clients. How does Hyggen account for

this growth? “It really came out to understand-

ing what the industry needs and demands in

regards to protection, security, and safety, and

just documenting it and making sure it is a part

of our company.”

Beyond the industrial security services,

Athabasca also offers canine drug dogs and

janitorial services. Seemingly unordinary, the

additions were quite strategic. “This came about

by request from our clients who said they need

306 PRODUCTS & SERVICES � Athabasca Basin Security Service

to have these services available. So we went out,

acquired these assets, and did it.”

This high level of concern for customer needs

is aligned with the philosophy of every job and

client being unique, and a testament to the

strength of the company.

Professional development programsParamount to Athabasca Basin Security Service

is its ideals. It has an impeccable safety record,

and places significant focus on the growth of

employees. “We have a professional develop-

ment program that allows First Nations people

to become Industrial Security Officers,” notes

Hyggen. The progressive program is self-paced,

and as employees progress their pay matches

each new level earned.

“You move up through our company and be-

yond. We are a transitional employer for many.

Our employees move through us to our clients,


and from there they can also move into security

as well.” It is a win-win situation for both Ab-

original people and the companies who can now

hire their expertise.

Providing work opportunities to First Nations

people is obviously something close to Hyggen’s

heart and a great source of pride. “We are plan-

ning to partner up and use our relationships

across Alberta to bring more [First Nations] into

our work force.”

A bright futureFor the future, Athabasca Basin Security Service

will continue its focus on the very thing it does

best. “We’ll keep focusing on the same areas,

and the same types of clients,” explains Hyg-

gen. This strategy sounds promising, and a suc-

cessful future is no doubt in store.

“If you look at our resume now and see who

we are working with, we have the strongest resume

out there for anyone doing this kind of work.” CB

www.BasinseCuRiTy.COM

At M� sehead we believe our inde� ndence is our

greate� st� ngth, a� owing us to � ew quality beer without

com� omise, the way we always have, since 1867.

www.moosehead.ca

Documents

Canadian Business Journal Nov 2011